SB 514 Modifies the duties and powers of municipal governments in relation to utility services
Sponsor: Onder
LR Number: 2242S.01I Fiscal Notes
Committee: Commerce, Consumer Protection, Energy and the Environment
Last Action: 3/9/2017 - Second Read and Referred S Commerce, Consumer Protection, Energy and the Environment Committee Journal Page: S454
Title: Calendar Position:
Effective Date: August 28, 2017

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Current Bill Summary

SB 514 - Currently, municipal governments are permitted to regulate certain utilities and contract with corporations to provide services for those utilities. This act adds wastewater and sewerage systems to those utilities.

Currently, the maximum term of contracts for such services is twenty years. This act modifies that limit from twenty years to thirty years. A provision is removed requiring such contracts or renewals of such contracts to be approved by a majority of municipal voters.

Provisions are added stating that a lease or concession agreement between a municipality and a corporation for the supply of water shall not require a vote of the people if under such lease or concession agreement, the municipality retains oversight of operations and rate setting methodology and the right to terminate the lease or agreement if the corporation does not comply with the agreement.

Certain municipal contracts for utilities and water supply are exempted from requirements relating to public inspection and review by municipal officers.