HCS SCS SB 468 -- REORGANIZED COMMON SEWER DISTRICTS

SPONSOR:  Griesheimer (Icet)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Local
Government by a vote of 16 to 0.

This substitute establishes notice and procedural requirements
for the formation of a new reorganized common sewer district and
the conversion of an existing common sewer district into a
reorganized common sewer district.  Once established, a
reorganized common sewer district will have all the powers and
authority of a common sewer district established pursuant to
Chapter 204 or Chapter 249, RSMo.  For new districts,
incorporation must be approved by two-thirds of the voters in the
district unless the petitioners seeking formation specify that
the organization is without the authority to issue general
obligation bonds.  In that case, incorporation must only be
approved by a simple majority of the voters in the district.
Property owners with land contiguous or reasonably close to a
reorganized district may petition the board to become part of the
reorganized district.  To convert an existing common sewer
district into a reorganized common sewer district, a petition
must first be filed with the governing body of the district for a
determination that the reorganization is in the best interest of
the district.  The bonded indebtedness and security interests of
creditors of any common sewer district which converts to a
reorganized common sewer district cannot be affected by the
conversion.  Reorganized sewer districts cannot levy taxes or
issue general obligation bonds unless authorized by voters.
Reorganized sewer districts also may create sanitary sewer
improvement areas and impose assessments and user fees on the
property benefitted by the improvement project.

FISCAL NOTE:  No impact on state funds in FY 2006, FY 2007, and
FY 2008.

PROPONENTS:  Supporters say that the bill will make it easier to
establish sewer districts in out-state Missouri.

Testifying for the bill were Senator Griesheimer; Missouri
Association of Sewer Districts; and Boone County Regional Sewer
District.

OPPONENTS:  Those who oppose the bill say that it reduces the
county commission's authority to regulate sewer districts when
they reorganize because the petition is made directly to the
circuit court.

Testifying against the bill was Boone County Commission.

Julie Jinkens McNitt, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:21 pm