HB1 ALLOWS NONPROFIT MEMBERSHIP CORPORATIONS TO ORGANIZE TO PROVIDE WASTE AND TREATMENT SERVICES.
Sponsor: Leake, Sam (9) Effective Date:00/00/00
CoSponsor: LR Number:1879-01
Last Action: 09/26/97 - Approved by Governor (G)
09/26/97 - Delivered to Secretary of State
SS HB 1
Next Hearing:Hearing not scheduled
Calendar:HOUSE BILLS FOR THIRD READING (S)
Position on Calendar:004
ACTIONS HEARINGS CALENDAR
BILL SUMMARIES BILL TEXT FISCAL NOTES
HOUSE HOME PAGE BILL SEARCH

Available Bill Summaries for HB1
| Truly Agreed | Perfected | Committee | Introduced |


Available Bill Text for HB1
| Truly Agreed | Perfected | Committee | Introduced |

Available Fiscal Notes for HB1
Introduced

BILL SUMMARIES

TRULY AGREED

SS HB 1 -- NON-PROFIT SEWER COMPANIES

This bill allows 5 or more persons to establish a non-profit
membership corporation to provide waste water treatment and
disposal services.  Membership is restricted to those using the
services of the company, and excess revenue is distributed
annually to members as patronage refunds.  A company may provide
services to its members, government agencies, and political
subdivisions, and must comply with applicable rules of the
Department of Natural Resources.  The Public Service Commission
has no jurisdiction over non-profit sewer companies.  An
existing company may be converted to a non-profit sewer company
if the conversion is approved by its governing board and members
or stockholders.

The bill gives companies all necessary powers for normal
operation.  There are also provisions for amending articles of
incorporation, changing location of the principal office, and
dissolving a company voluntarily.  Articles of incorporation
must be filed with the Secretary of State.  Provisions of
Missouri securities law do not apply to any indebtedness,
mortgage, deed of trust, or issuance of membership certificates
by a company.

A board of at least 5 directors manages a company.  Directors
must be members of the company and are elected for 3-year,
staggered terms.  A company may divide its territory into voting
districts to distribute directors geographically.  Officers are
elected annually and include a president, vice president,
secretary, and treasurer.  The president and vice president must
be directors.

The bill also allows any entity providing sewage treatment and
disposal services to apply to the Department of Natural
Resources for designation as the sole regional or watershed
provider.  Joint applications from existing providers and
applicants that are most likely to provide stable long-term
service will be given preference.  After a sole provider has
been designated for a region or watershed, no other entity may
construct or operate treatment facilities within the area
without an approved plan unless the entity was already in
operation when the sole provider was designated.


PERFECTED

HB 1 -- NON-PROFIT SEWER COMPANIES (Leake)

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.
The bill also allows for the dissolution of a company.

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.

No person will become a member of a company unless company
services are used.  The company will hold annual meetings and
special meetings, if called by the board of directors, at a
place provided by the company bylaws.  The company will be
managed by a board of not less than 5 directors who are members
of the company.  The company may be divided into two or more
voting districts for the purpose of properly distributing its
directors.  The officers of a company will consist of a
president, vice president, secretary, and treasurer.  The office
of president and vice president must be held by a director.

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.  Excess company revenues may be distributed to
members as patronage refunds.

FISCAL NOTE:  Cost to General Revenue Fund of $0 for FY 1998,
$27,015 for FY 1999, and $27,720 for FY 2000.


COMMITTEE

HB 1 -- NON-PROFIT SEWER COMPANIES

CO-SPONSORS:  Leake, Overschmidt, Summers, Griesheimer,
Franklin, Hohulin, Koller, Farnen, Scott, Thomason, DeMarce, and
Backer

COMMITTEE ACTION:  Voted "do pass" by the Committee on Utilities
Regulation by a vote of 10 to 0.

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.
The bill also allows for the dissolution of a company.

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.

No person will become a member of a company unless company
services are used.  The company will hold annual meetings and
special meetings, if called by the board of directors, at a
place provided by the company bylaws.  The company will be
managed by a board of not less than 5 directors who are members
of the company.  The company may be divided into two or more
voting districts for the purpose of properly distributing its
directors.  The officers of a company will consist of a
president, vice president, secretary, and treasurer.  The office
of president and vice president must be held by a director.

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.  Excess company revenues may be distributed to
members as patronage refunds.

FISCAL NOTE:  Total Cost to General Revenue Fund of $0 for FY
1998, $27,015 for FY 1999, and $27,720 for FY 2000.

PROPONENTS:  Supporters say that in many rural areas people do
not have access to good sewage systems.  This bill will allow
groups of 5 or more persons to develop their own non-profit
systems in an environmentally friendly manner.

Testifying for the bill was Representative Leake.

OPPONENTS:  There was no opposition voiced to the committee.

Terry Finger, Senior Legislative Analyst


INTRODUCED

HB 1 -- Nonprofit Sewer Companies

Sponsor:  Leake

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.
The bill also allows for the dissolution of a company.

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.

No person will become a member of a company unless company
services are used.  The company will hold annual meetings and
special meetings, if called by the board of directors, at a
place provided by the company bylaws.  The company will be
managed by a board of not less than 5 directors who are members
of the company.  The company may be divided into two or more
voting districts for the purpose of properly distributing its
directors.  The officers of a company will consist of a
president, vice president, secretary, and treasurer.  The office
of president and vice president must be held by a director.

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.  Excess company revenues may be distributed to
members as patronage refunds.


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Last Updated September 27, 1997 at 9:15 am