SS SCS SB 21 -- REORGANIZED COMMON SEWER DISTRICTS

SPONSOR:  Griesheimer (Schlottach)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Local
Government by a vote of 12 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 reorganization
district 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.

A nonprofit sewer company is authorized to provide the same
services as provided by a nonprofit water company in areas not
within the boundaries of a public water supply district or within
the certificated area of a water corporation.

The provision is repealed that requires the City of St. Charles
to provide written notice two years in advance of the city's
intent to discontinue sanitary sewer service to homes connected
to the service after January 1, 2003.

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 2008, FY 2009, and
FY 2010.

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.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:21 am