HCS SB 154 -- NONPROFIT SEWER COMPANIES

SPONSOR:  Goodman (Wallace)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Rural Community Development by a vote of 10 to 0.

This substitute authorizes a nonprofit sewer company 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.

FISCAL NOTE:  No impact on state funds in FY 2010, FY 2011, and
FY 2012.

PROPONENTS: Supporters say that the bill will allow nonprofit
sewer companies to manage the water supply, too.  Clean water
must be maintained and the way to do that is by maintaining the
sewer systems.  Nonprofit sewer companies do not necessarily own
the sewer system, they simply manage it.  It makes sense that
they would also manage the water system.  Wastewater treatment
plants and drinking water systems are sometimes owned and
operated by either the developer or the property owners'
association.  These systems typically begin to fail due to
improper maintenance, and it is difficult for them to comply with
the requirements of regulatory agencies.  Developers build the
system and typically donate it to a nonprofit sewer company to
manage as well as the water supply.  Unfortunately, current law
does not allow nonprofit sewer companies to own and operate water
systems.  One company managing both systems would be better for
consumers for service and billing purposes.  These economies of
scale will benefit the property owners in these developments.

Testifying for the bill was Senator Goodman.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:26 am