HB 1346 Modifies provisions relating to water resources

     Handler: Gregory (21)

Current Bill Summary

- Prepared by Senate Research -


SCS/HCS/HB 1346 - This act modifies provisions relating to water resources.

PORT AUTHORITIES (Sections 68.010, 68.015, 68.025, 68.035, 68.040, 68.045, 68.055, 68.057, 68.060, 68.075, 68.085, 68.205, 68.253, and the repeal of section 68.259)

This act specifies that creation of a port authority by a county only precludes creation of a port authority by a city within that county if the county port authority was created first. (Section 68.010.3).

Also, currently the boundaries of a port district must be approved by the Highways and Transportation Commission. Under this act, if a port authority purchases or leases certain real property located within adjoining municipalities or states, the real property shall be deemed included within the port district as detailed in the act. (Section 68.015.1).

Powers of port authorities are also modified as specified in the act, including the grant of powers for the establishment of port rangers licensed as peace officers, contracting with other port authorities, and for creation of housing authorities, clearing land for redevelopment, planned industrial expansion, and urban redevelopment as provided by law for other political subdivisions. (Section 68.025).

This act prohibits the use of certain state funds for housing authority purposes. (Section 68.035.1 and .2). The act also specifies that appropriations to a department or office may be provided by the department or office to a port authority as an advance rather than on a reimbursement basis, subject to certain assurances the funds will be used for their designated purpose; or that the department or office may deposit the funds with a financial institution or escrow agent and disbursed as specified in the act. (Section 68.035.4).

The act provides that failure of a port authority to include a statement that the state is not liable on bonds of a port authority as required by law shall not invalidate the bonds or render the state liable on the bonds. (Section 68.040).

Furthermore, the act modifies provisions regarding the terms of port authority commissioners and their removal from office, as well as determination of commissioners' qualifications, salaries, powers, and duties if they are not determined by the political subdivision establishing the port authority. The political subdivision establishing the port authority shall also provide for the filing of annual reports by the board of port authority commissioners, and for periodic independent audits of the port authority's accounts. (Section 68.045).

The act modifies port authorities' contracting processes for work, equipment, and supplies and materials, and provides that port authorities may utilize additional procurement measures authorized for other political subdivisions, as described in the act. (Section 68.055).

Under the act, port authority expenditures over $50,000, rather than over $25,000, including professional services contracts, shall be competitively procured. The act requires at least 20 days notice of the letting of the contract, with publication as described in the act. Port authorities shall have the authority to reject any and all bids, and readvertise the work or proposed purchase. (Section 68.057).

The act provides that political subdivisions with existing port authorities can not form regional port authorities themselves, but that the boards of existing port authorities may apply to the Highways and Transportation Commission for approval of a regional port authority, as detailed in the act. (Section 68.060).

The definition of "new job" in the Advanced Industrial Manufacturing Zones Act is modified to include any job determined by the Department of Economic Development to be eligible for, and approved for, retention of withholding tax under the Missouri Works Program, provided that the establishment of the AIM zone immediately follows the end of the period of benefits under the Missouri Works Program. (Section 68.075).

Under the act, certain records submitted to a port authority may be deemed closed records, and disclosure to a port authority shall not affect records' status as closed. (Section 68.085).

The act modifies the threshold for consent to the creation of a port improvement district, from 60% per capita to 50% per capita, of the owners of all real property within the boundaries of the proposed port improvement district. (Section 68.205).

Lastly, the act provides that a petition to the circuit court shall not be required for creation of a port improvement district within port district boundaries or for substantial changes, as defined by law, to a port improvement district in certain circumstances. (Section 68.253).

These provisions are similar to provisions in SCS/SB 715 (2025).

WATERWAYS AND PORTS TRUST FUND (Section 68.080)

This act requires that a Missouri port authority have requested funds for statutorily permitted port purposes before funds may be withdrawn from the Waterways and Ports Trust Fund.

The act also specifies that port projects located on land owned by the City of St. Louis and managed by a Missouri port authority, or within an adjacent waterway, may be eligible for an appropriation from the fund, provided the other conditions of the fund are met.

These provisions are identical to provisions in the truly agreed to and finally passed SS#2/SCS/HB 199 (2025), SB 125 (2025), HB 685 (2025), HB 928 (2025), and SCS/SB 1263 (2024), SS/SB 120 (2025), SCS/SB 715 (2025), and SCS/HCS/HB 572 (2025), and similar to HB 2216 (2024) and HCS/HB 2352 (2024).

WATER PRESERVATION IN THE STATE (Sections 640.040 and B)

The act creates provisions relating to water preservation in the state.

Under this act, it shall be unlawful for any person to export water resources outside the state unless the person holds a water exportation permit issued by the Department of Natural Resources, subject to certain exemptions as described in the act.

It shall be unlawful for any person to withdraw water for exportation by use of a pipeline facility, unless the withdrawal and ultimate end use of the water by a pipeline facility is within 30 miles of the state border. Any person who withdraws water for exportation shall annually report the water use volumes, withdrawal rates, and end use to the Department in a manner and on timelines determined by the Department. This provision has a severability clause.

The Director of the Department shall review each water exportation permit application and all supporting documents to ensure the required conditions have been met prior to accepting a water exportation application for public comment and review by the State Soil and Water Districts Commission. The required conditions are described in the act.

Within 120 days after receipt of a complete application, the Director shall determine whether the applicant complied with the conditions under the act. After making such a determination, the Director shall hold a 30-day public comment period regarding the determination. Within 60 days after the comment period, the Director shall recommend approval or denial of the permit. Such recommendation and public comments shall be submitted to the Commission. The Commission shall make the final decision as to the approval or denial of the permit as described in the act.

To renew a water exportation permit, an applicant shall file a renewal application with the Department as described in the act. The process for reviewing the renewal application is described in the act.

In the absence of an appeal, the decision of the Commission shall be final.

A water exportation permit shall be in effect for three years after the date of issuance. The permit holder shall annually report the water use volumes, withdrawal rates, and end use to the Department. Such report shall be made available to the public on the Department's website.

The water exportation permit application shall include all water exportation requested by the applicant. The water exportation permit may be approved by the Director or the Commission. An applicant may include multiple water withdrawals for exportation from various locations within one water exportation permit application.

A water exportation permit application shall include a designee or agent in the state for service of process and to receive other notices.

A major water user may request the Department to reevaluate any existing water exportation permit using the criteria under the act. The Department shall create a mechanism for a major water user to submit a request for reevaluation of the permit as described in the act.

The act shall not preclude a person from bringing any claim to defend the person's water rights. A permit shall not serve as a defense to any claim brought against a water permit holder for the infringement of water rights. Any person harmed by the issuance of a permit may bring appropriate action as described in the act.

If the Attorney General receives a complaint for violations of the act, or at the request of the Department, the Attorney General shall bring a civil action. Suit may be brought in any county where the defendant's principal place of business is located or where the withdrawal of water occurred in violation of the act. Any member of the Commission deemed to have violated provisions of this act shall forfeit their office upon such finding of a violation.

Whenever a state of emergency is declared by the Governor in any part of the state based on drought conditions, the Department shall reevaluate any existing water exportation permit as described in the act.

These provisions are substantially similar to provisions in the truly agreed to and finally passed SS/SCS/SB 82 (2025) and SCS/HCS/HB 1116 (2025), and similar to SCS/SB 29 (2025), HB 1546 (2025), a provision in HCS/HB 642 (2025), HCS/HB 1295 (2025), SCS/SB 782 (2024), SB 599 (2023), and HCS/HB 1129 (2023).

ERIC VANDER WEERD


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