SB 567 - This act simplifies the operations for formation and operation of sewer districts. The act provides the procedural requirements for the new formation of a reorganized common sewer district and the conversion of a current sewer district to a reorganized sewer district.

CREATION OF A NEW REORGANIZED COMMON SEWER DISTRICT - In order to create a new reorganized common sewer district, a petition is filed with the circuit court. Upon the filing of the petition the clerk of the court shall give notice of the filing in a newspaper of general circulation in all counties which contain property within the boundaries of the proposed reorganized sewer district. Specific notice and procedural requirements are specified.

Exceptions to the formation of the district may be filed not less than five days prior to the hearing on the petition by any voter or property owner in the proposed district. If the court finds that the formation of the district is not in the public interest, the matter will be dismissed at the costs of the petitioners. If the court finds in favor of the formation of the district the court shall enter a decree of incorporation and shall appoint five voters from the district as the first board of trustees with staggered terms of one to five years.

The decree in incorporation shall not be final until approved by 2/3 of the voters in the district. Costs incurred in forming the district shall be taxed to the district. If the petitioners seeking formation specify that the organization is without the authority to issue general obligation bonds, the order shall set forth those conditions and the decree of incorporation must only be approved by a simple majority of voters in the district.

The method for expansion of the boundaries of the reorganized district are specified. Property owners with land contiguous or reasonably close to a reorganized district may petition the Board of Trustees to become part of the reorganized district.

The Board of Trustees may petition the Circuit Court for an amended decree of incorporation to allow the district to engage in the construction, maintenance and operation of water supply and distribution facilities which serve ten or more separate properties in the district, if the properties meet certain criteria.

ESTABLISHMENT OF A REORGANIZED COMMON SEWER DISTRICT FROM AN EXISTING COMMON SEWER DISTRICT - In order to establish an existing sewer district into a reorganized common sewer district a petition may be filed with the circuit court after the governing body of the district has made a determination that the reorganization is in the best interest of the district. The petition shall specify whether the board of trustees will be appointed by the governing body of the county or elected by the voters of the district. Procedural and notice requirements are provided.

Exceptions to the formation of the district may be filed not less than five days prior to the hearing on the petition by any voter or property owner in the proposed district. If the court finds in favor of the formation of the district the court shall enter a decree of incorporation.

The Bonded indebtedness and security interests of creditors of any common sewer district which converts to a reorganized common sewer district shall not be affected by the conversion. Reorganized common sewer districts shall have exclusive jurisdiction and authority to provide wastewater collection an treatment services within the boundaries of the district. A reorganized common sewer district shall be considered a political subdivision of the state. All courts of the state are required to take judicial notice of the existence of the reorganized common sewer district.

The Board of Trustees for the reorganized common sewer district shall consist of five members who must be a voter and have resided within the boundaries of the district for at least one year. Trustees must be at least 25 and not be delinquent in payment of taxes at the time of election or appointment. The presiding officer shall be an additional member in the event that the district extends into more than one county. Trustees shall not be compensated. The Board of Trustees may hire necessary staff. All Trustees after the initial Trustees appointed by the court will be elected.

PROVISIONS RELATING TO REORGANIZED COMMON SEWER DISTRICTS - The Board of Trustees shall have no power to levy or collect taxes or issue general obligation bonds unless authorized by the voters. The total amount of general obligation bonds shall not exceed 10% of the assessed valuation of all taxable tangible property located in the district. Specifications for issuance of the bonds are provided. Powers and duties of the Board of Trustees are specified.

Any person who knowingly makes false statements in any filing with the district or falsifies or tampers with a monitoring device shall be fined $1,000 per violation per day. In the event of a second violation the fine shall be $3,000 per violation per day. Third and subsequent violations shall be punishable by a Class D felony.

The Board of Trustees may acquire property by purchase, gift or condemnation or may lease or rent any real or personal property. In order to condemn property the procedures provided in Chapter 523, RSMo, must be followed.

All projects which exceed $25,000 in expense must be awarded to the lowest bidder. The act provides how costs of acquiring, constructing, improving, or extending a sewerage system shall be met.

A reorganized common sewer district may issue general or special revenue bonds if the decree of incorporation allows the sewer district to issue bonds. Specific requirements of the bonds are specified. Certain duties for a reorganized common sewer district which issues bonds are specified.

The Board of Trustees may apply for and accept grants, funds materials or labor from the state and federal government in the construction of a sewerage system.

SANITARY SEWER IMPROVEMENT AREA ACT - The act also allows for the creation of sanitary sewer improvement areas and allows the Board of Trustees to incur indebtedness and issue temporary notes and general or special revenue bonds to pay for such. The district will impose assessment and may impose user fees on the property benefitted by the improvement project and the act provides the method for the assessment or imposition of user fees. The procedure for the establishment of a sanitary sewer improvement area is specified.

These provisions are contained in CCS/HS/SS/SCS/SBs 361, 103, 156 & 329 (2003).
CINDY KADLEC