CCS SS HB 1748 -- WATER RESOURCES

                     (Vetoed by the Governor)

This bill makes numerous changes to laws regarding water resources.

DRINKING WATER

Drinking water primacy fees will expire on September 1, 2002. The bill extends the fees to September 1, 2007.

The bill also gives landowners the same rights as resident voters in procedures for water district formation, consolidation, dissolution, and territory annexation and detachment. The bill reduces the minimum time period between the final public notice and the public hearing for a proposed district formation or dissolution from 15 to seven days, increases the majority by which voters must approve dissolutions from four-sevenths to two-thirds, and clarifies other notice and procedural requirements. Petitions for the dissolution of a district must include a detailed plan for the payment of all debt and obligations and will be dismissed at the cost of the petitioners if they cannot prove that all debts and financial obligations of the district can be paid.

BONDS FOR WATER AND SEWER PROJECTS

In addition to amounts authorized prior to August 28, 2002, the bill authorizes the Board of Fund Commissioners to issue bonds for grants and loans pursuant to several sections of Article III of the Missouri Constitution. The authorizations are for:

(1) $10 million of bonds for water pollution control, drinking water system improvements, and storm water control pursuant to Section 37(e);

(2) $10 million of bonds for rural water and sewer projects pursuant to Section 37(g); and

(3) $20 million of bonds for storm water control plans, studies, and projects in first classification counties and the City of St. Louis pursuant to Section 37(h).

CLEAN WATER COMMISSION

The bill requires the Clean Water Commission to develop a general permit for the operation of aquaculture facilities, with annual fees capped at $250. In developing the permit, the Department of Natural Resources will meet with applicants to evaluate permit requirements and potential impacts on water quality, solicit public comments, and conduct public hearings if requested. Facility operators that materially violate general permit requirements may be required to obtain a site-specific permit.

The bill also requires any listing of impaired waters by the commission to be adopted by rule and prohibits the department from requiring total maximum daily loads for waters that meet water quality standards.

OTHER PROVISIONS

In other provisions, the bill:

(1) Places the burden of proof on the applicant in appeals of decisions by the Department of Natural Resources or its commissions involving permit denials, places the burden of proof on third parties appealing permit decisions, and places the burden of proof on the department or the commission that made the original decision in all other appeals;

(2) Requires the department to regulate non-profit sewer companies in the same manner as other non-profit corporations providing sewer services;

(3) Requires the Metropolitan St. Louis Sewer District to retain an independent third party to complete a study of the effects of privatization of the district by June 1, 2004;

(4) Allows public water supply districts and systems to receive grants for both a construction project and a source water protection project during a two-year period;

(5) Exempts levee districts in St. Charles County from state bidding requirements for water project grants if the funds have not been distributed and the district has complied with federal bidding requirements. These provisions expire on December 31, 2002;

(6) Removes non-profit water and sewer companies from the list of entities allowed to establish joint municipal utility commissions;

(7) Establishes procedures for the detachment of territory within a watershed subdistrict upon voter approval; and

(8) Allows the Department of Health to approve alternative technologies for gravel subsurface soil absorption systems for on-site sewage disposal systems.