HCS SCS SB 646 -- SEWER DISTRICTS

SPONSOR:  Griesheimer (Schlottach)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Local
Government by a vote of 15 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
may also establish sanitary sewer improvement areas and impose
assessments and user fees on the property benefitted by the
improvement project.

In addition to the amounts authorized prior to August 28, 2007,
the Board of Fund Commissioners is authorized to issue bonds for
grants and loans under Article III of the Missouri Constitution.
The additional amounts authorized are $10 million for water
pollution control, improvement of drinking water systems, and
storm water control; $10 million for rural water and sewer; and
$20 million for storm water control in first classification
counties and St. Louis City.

The substitute contains an emergency clause.

FISCAL NOTE:  No impact on state funds in FY 2007, FY 2008, and
FY 2009.

PROPONENTS:  Supporters say that the bill brings the formation
and reformation of sewer districts into the twenty-first century;
puts more of the preliminary formation or reformation work on the
people who are requesting it, rather than the county commission;
and makes it easier to establish sewer districts in out-state
Missouri.

Testifying for the bill were Senator Griesheimer; and Missouri
Association of Sewer Districts.

OPPONENTS:  There was no opposition voiced to the committee.

Julie Jinkens McNitt, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:46 am