HCS HJR 14 -- WATER POLLUTION BONDS (Days)

This proposed constitutional amendment permits the Board of Fund
Commissioners to issue bonds in the amount of $225 million to
provide funds for the control of stormwater in counties of the
first classification and the city of St. Louis, through grants
and loans administered by the Clean Water Commission and the
Department of Natural Resources. Such grants and loans are to be
used for financing and construction of improvements by any
municipality, sewer district, water district, or any combination
of the same located in a county of the first classification. The
proceeds from the sale of bonds and the interest thereon are to
be deposited in the Stormwater Control Bond and Interest Fund
created by the amendment. The General Assembly may appropriate
in any year such amount from the fund as may be needed to carry
out the above stated purposes, except that no appropriation can
exceed $25 million, in the aggregate, per year.

The Stormwater Revolving Fund is created.  The Clean Water
Commission and the Department of Natural Resources are to use
the fund to provide loans at or below market rates and grants
not to exceed $20 million in the aggregate. Such grants are not
to exceed 50% of the project cost and are to conform to
affordability criteria developed by the Clean Water Commission.

The Board of Fund Commissioners is permitted to issue bonds in
the amount of $100 million for the establishment and funding of
a Missouri Environmental Infrastructure Bank to be operated by
the Environmental Improvement and Energy Resources Authority
within the Department of Natural Resources. Bond proceeds are to
be used to carry on the programs of the Environmental
Infrastructure Bank as determined by the General Assembly for
the financing and construction of environmental infrastructure
improvements by any county, municipality, other political
subdivision or entity making such improvements, or any
combination of the same and for the administration of the bank.

The Board of Fund Commissioners is permitted to issue bonds in
the amount of $25 million for the purpose of providing rural
water and sewer grants and loans, including grants for the
establishment of water supply hookups in unincorporated areas of
any county. Bond proceeds are to be used to carry on the program
of the Clean Water Commission and the Department of Natural
Resources as determined by the General Assembly for the
financing and constructing of water and sewer improvements by
any county, municipality, sewer district, water district, or
combination of the same.

The amendment increases, from $25 million to $50 million, the
maximum amount of funds which may be appropriated in any one
year from the Water Pollution Control Bond and Interest Fund.

Standard bonding authority language is included in the amendment.

FISCAL NOTE:  Net Cost to General Revenue Fund of $0 for FY
1998, $450,000 for FY 1999, and $0 for FY 2000.

HCS HJR 14 -- WATER POLLUTION BONDS

CO-SPONSORS:  Lumpe (Days)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Budget by
a vote of 30 to 0.

This proposed constitutional amendment permits the Board of Fund
Commissioners to issue bonds in the amount of $200 million to
provide funds for the control of stormwater in counties of the
first classification and the city of St. Louis, through grants
and loans administered by the Clean Water Commission and the
Department of Natural Resources. Such grants and loans are to be
used for planning, financing, and construction of improvements
by any municipality, sewer district, water district, or any
combination of the same located in a county of the first
classification. The proceeds from the sale of bonds and the
interest thereon are to be deposited in the Stormwater Control
Bond and Interest Fund created by the amendment. The General
Assembly may appropriate in any year such amount from the fund
as may be needed to carry out the above stated purposes, except
that no appropriation can exceed $25 million, in the aggregate,
per year.

The Stormwater Revolving Fund is created.  The Clean Water
Commission and the Department of Natural Resources are to use
the fund to provide loans at or below market rates and grants
not to exceed $20 million in the aggregate. Such grants are not
to exceed 10% of the project cost and are to conform to
affordability criteria developed by the Clean Water Commission.

The Board of Fund Commissioners is permitted to issue bonds in
the amount of $100 million for the establishment and funding of
a Missouri Environmental Infrastructure Bank to be operated by
the Environmental Improvement and Energy Resources Authority
within the Department of Natural Resources. Bond proceeds are to
be used to carry on the programs of the Environmental
Infrastructure Bank as determined by the General Assembly for
the planning, financing and construction of environmental
infrastructure improvements by any county, municipality, other
political subdivision or entity making such improvements, or any
combination of the same and for the administration of the bank.

The Board of Fund Commissioners is permitted to issue bonds in
the amount of $25 million for the purpose of providing rural
water and sewer grants and loans, including grants for the
establishment of water supply hookups in unincorporated areas of
any county. Bond proceeds are to be used to carry on the program
of the Clean Water Commission and the Department of Natural
Resources as determined by the General Assembly for the
planning, financing, and constructing of water and sewer
improvements by any county, municipality, sewer district, water
district, or combination of the same and for program
administration.

The amendment increases, from $25 million to $50 million, the
maximum amount of funds which may be appropriated in any one
year from the Water Pollution Control Bond and Interest Fund.

Standard bonding authority language is included in the amendment.

FISCAL NOTE:  Net Cost to General Revenue Fund of $0 for FY
1998, $450,000 for FY 1999, and $0 for FY 2000.

PROPONENTS:  Supporters say that $200 million in stormwater
grants and loans would be made available to Missouri's 14 first
class counties and the City of St. Louis.  These funds would be
matched with local funds to help residents combat flooding and
erosion problems within their neighborhoods.  The Missouri
Environmental Infrastructure Bank would make lower cost loans to
any city, county, or political subdivision for planning,
financing, and construction of environmental infrastructure
projects such as the cleanup of dump sites or removing asbestos
from public buildings.  Many smaller communities in Missouri are
faced with large expenditures to update their wastewater
treatment plants, sanitary sewers, or water supply systems.
They would receive assistance from the state in meeting their
needs.

Testifying for the bill were Representative Days; Metropolitan
St. Louis Sewer District; and Regional Commerce and Growth
Association.

OPPONENTS:  There was no opposition voiced to the committee.

Roland Tackett, Research Analyst

HJR 14 -- Water Pollution Bonds

Sponsor:  Days (71)

This proposed constitutional amendment permits the Board of Fund
Commissioners to issue bonds in the amount of $2 million to
provide funds for the control of stormwater in counties of the
first classification, through grants and loans administered by
the Clean Water Commission and the Department of Natural
Resources. Such grants and loans are to be used for planning,
financing, and construction of improvements by any county,
municipality, sewer district, water district, or any combination
of the same located in a county of the first classification.

The proposed constitutional amendment also permits the Board of
Fund Commissioners to issue bonds in the amount of $2 million
for the establishment and funding of a Missouri Environmental
Infrastructure Bank to be operated by the Environmental
Improvement and Energy Resources Authority within the Department
of Natural Resources. Bond proceeds are to be used to carry on
the programs of the Environmental Infrastructure Bank as
determined by the General Assembly for the planning, financing,
and construction of environmental infrastructure improvements by
any county, municipality, other political subdivision, or entity
making such improvements or any combination of the same and for
the administration of the bank.

Standard bonding authority language is included in the amendment.