L.R. NO.  1878-02
BILL NO.  Perfected SB 3
SUBJECT:  Rural Water and Sewer Districts
TYPE:     Original
DATE:     September 9, 1997

                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1998             FY 1999           FY 2000
General Revenue                 $0           ($27,015)         ($27,720)

Total Estimated
Net Effect on All
State Funds                     $0           ($27,015)         ($27,720)

                   ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED              FY 1998             FY 1999           FY 2000
None

Total Estimated
Net Effect on All
Federal Funds                   $0                  $0                $0

                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED              FY 1998             FY 1999           FY 2000
Local Government                $0                  $0                $0


Numbers within parentheses:   (  ) indicate costs or losses
This fiscal note contains 3 pages.

                              FISCAL ANALYSIS

ASSUMPTION

The Department of Economic Development Public Service Commission assumes this
proposal would have no fiscal impact.

The Department of Natural Resources (DNR)  assumes this section of the
proposal states that the entities would apply to the DNR to become a regional
or watershed provider.  In addition to the requirements for a construction
and operating permit for wastewater providers, regional or watershed
providers would be required to submit information on point and non point
source pollution, land use consideration, institutional considerations and
financial considerations.  The DNR assumes they would review applications and
approve or deny the applications based on criteria that would need to be
established.

Currently, the DNR and EPA have approved several systems to be regional
providers.  The regional systems in place are metropolitan providers (i.e.
Metropolitan St. Louis Sewer District,  Cities of Kansas City and
Independence).  However, these systems have the metropolitan government
structure to provide maintenance, regulate through ordinance and obtain
financial assistance.

The DNR assumes the majority of the applications would be systems in rural
areas.   The application would either be for an entire county, several
smaller cities or systems merging together or for a watershed.  The
department receives between two to five inquires per year regarding
reorganization.   The work effort to review a regional application is greater
than a review of a construction or operating application for a wastewater
system.  The department would need .50 Planner to provide assistance to the
applicants in preparing the application and to review the regional or
watershed applications for approval or denial.  The department would need to
request additional staff if the actual workload exceeds expectations used to
quantify the fiscal impact of this legislation.

FISCAL IMPACT - State Government FY 1998   FY 1999   FY 2000
                                 (6 Mo.)

GENERAL REVENUE FUND

  Personal Service - (.5 FTE)         $0 ($16,350) ($16,760)
  Fringe Benefits                      0   (4,665)   (4,780)
  Expense and Equipment                0   (6,000)   (6,180)
Total Costs - DNR                     $0 ($27,015) ($27,720)

FISCAL IMPACT - Local Government FY 1998   FY 1999   FY 2000
                                 (6 Mo.)

                                       0         0         0

FISCAL IMPACT - Small Businesses

No impact to small businesses is expected as result of this proposal.

DESCRIPTION

This bill authorizes the incorporation of nonprofit sewer companies for the
disposal and treatment of waste water.  Any waste water corporation may be
converted into a nonprofit sewer company if the conversion is approved by the
governing board and the members or stockholders of the corporation.
Companies will have all necessary powers needed for normal operation.

Companies will also have the authority to amend articles of incorporation and
change location of their principal office.

Sewage company articles of incorporation must be filed with the Secretary of
State.  Provisions of securities law of Missouri do not apply to any
indebtedness, any mortgage or deed of trust, or issuance of membership
certificates by the company.

The Department of Natural Resources will have jurisdiction over the
construction, maintenance, and operation of a company's physical equipment.
Any entity authorized by law to engage in    the business of offering waste
water disposal or treatment services may apply to the department to be
designated as the sole regional or watershed supplier of such services.  The
Public Service Commission will not have jurisdiction over a company's
facilities, service, rates, financing, accounting or management.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.

SOURCES OF INFORMATION

Department of Natural Resource
Department of Economic Development