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Home > Statutes > Usa Missouri
USA Statutes : missouri
Title : INCORPORATION AND REGULATION OF CERTAIN UTILITIES AND CARRIERS
Chapter : Chapter 393 Gas, Electric, Water, Heating and Sewer Companies
Any corporation formed under or subject to chapter 351, RSMo, or
heretofore organized under the laws of Missouri for the purpose of
supplying any town, city or village with gas, electricity or water shall
have full power to manufacture and sell and to furnish such quantities of
gas, electricity or water as may be required by the city, town or
village, district or neighborhood where located for public or private
buildings or for other purposes, and such corporations shall have the
power to lay conductors for conveying gas, electricity or water through
the streets, alleys and squares of any city, town or village with the
consent of the municipal authorities thereof under such reasonable
regulations as such authorities may prescribe, and such companies are
authorized to set their poles, piers, abutments, wires and other fixtures
along, across or under any of the public roads, streets and waters of
this state in such manner as not to incommode the public in the use of
such roads, streets and waters. (RSMo 1939 § 5369, A.L. 1943 p. 410 § 153)

Prior revisions: 1929 § 4962; 1919 § 10172; 1909 § 3367

CROSS REFERENCES: Corporation to register and file antitrust affidavit,
RSMo 351.690 Electric company may operate street railway in cities under
10,000, RSMo 391.100 Franchise to supply gas, electricity or water within
city, granted by city, when, RSMo 71.530

(1973) This section does not authorize city to prohibit all overhead
transmission or distribution lines whether on public or private property.
Union Electric Co. v. City of Crestwood (Mo.), 499 S.W.2d 480.



1. Notwithstanding any other provision of law to the contrary,
any sewer corporation, municipality or sewer district established under
the provisions of chapter 249 or 250, RSMo, or sections 204.250 to
204.470, RSMo, or any sewer district created and organized pursuant to
constitutional authority, may contract with any water corporation to
terminate water services to any customer premises for nonpayment of a
sewer bill. No such termination of water service may occur until thirty
days after the sewer corporation, municipality or statutory sewer
district or sewer district created and organized pursuant to
constitutional authority sends a written notice to the customer by
certified mail, except that if the water corporation is performing a
combined water and sewer billing service for the sewer corporation,
municipality or sewer district, no additional notice or any additional
waiting period shall be required other than the notice and waiting period
already used by the water corporation to disconnect water service for
nonpayment of the water bill. Acting pursuant to a contract, the water
corporation shall discontinue water service until such time as the sewer
charges and all related costs of termination and reestablishment of sewer
and water services are paid by the customer.

2. A water corporation acting pursuant to a contract with a sewer
corporation, municipality or sewer district as provided in subsection 1
of this section shall not be liable for damages related to termination of
water services unless such damage is caused by the negligence of such
water corporation, in which case the water corporation shall be
indemnified by the sewer corporation, municipality or sewer district.
Unless otherwise specified in the contract, all costs related to the
termination and reestablishment of services by the water corporation
shall be reimbursed by the sewer corporation, municipality, sewer
district or sewer district created and organized pursuant to
constitutional authority. (L. 1993 H.B. 453, A.L. 2005 H.B. 58)



1. Notwithstanding any other provision of law, any municipality
providing water, or any water district established under chapter 247,
RSMo, which in this section shall sometimes be designated as a water
provider, shall upon request of any municipality providing sewer service
or public sewer district established under chapter 249 or 250, RSMo, or
sections 204.250 to 204.470, RSMo, or any sewer district created and
organized under constitutional authority, which in this section shall
sometimes be designated as a sewer provider, contract with such sewer
provider to terminate water services to any water user of such water
provider for nonpayment of a delinquent sewer bill owed to such sewer
provider.

2. Any water provider, or independent contractor acting for a water
provider, acting under a contract with a sewer provider under this
section shall be exempt from all civil liability whatsoever arising from
or related to termination of water services pursuant to any such contract.

3. In the event that any water provider and any sewer provider are unable
to reach an agreement as provided in this section within six months of
the receipt of such request by the water provider, then the sewer
provider making the written request may file with the circuit court in
which such water provider was incorporated, or if such water provider was
not incorporated by a circuit court, then with a circuit court having
jurisdiction of the water provider, a petition requesting that three
commissioners be selected to draft such an agreement.

4. Any agreement drafted by the commissioners or entered into under this
section shall contain the following provisions:

(1) The rules and regulations or ordinances of the sewer provider shall
provide that the number of days of delinquency required before water
service is discontinued for failure to pay for sewage service shall be
equal to the number of days of delinquency required before water service
is discontinued for failure to pay for water service under the rules and
regulations of the water provider;

(2) The water provider shall not be required to discontinue water service
to the sewer user for failure to pay the charges or rental due therefor
unless the sewer provider shall first give a written notice to the water
provider to do so. Such notice shall include the due date, amount of the
delinquent bill, and all penalties and interest thereon. When payment of
such amount is received by the sewer provider, upon written notice
thereof to the water provider, the water provider shall restore water
service to the water and sewer user, provided the water bill of such user
owed to the water provider is not delinquent;

(3) The sewer provider shall at all times keep in force a general
comprehensive public liability and property damage policy issued by a
company authorized to do business in Missouri with policy limits equal to
or in excess of those set forth in section 537.610, RSMo, shall include
the water provider and any independent contractor who performs such
agreement under contract with the water provider thereon as an additional
insured, and shall furnish the water provider and such independent
contractor a certificate of insurance evidencing such insurance is in
effect. If at any time it fails to do so and furnish such certificate of
insurance to the water provider and such independent contractor, the
water provider and such independent contractor may cease to make water
service terminations until such requirement is satisfied;

(4) The agreement shall provide that any loss of revenue incurred by the
water provider as a result of discontinuing water service because of the
failure of any sewage user to pay the charges or rental therefor shall be
paid to the water provider by the sewer provider. Such amounts include,
but are not limited to, loss of revenue by the water provider caused by
disconnection of water service for a sewer bill delinquency when the
water bill is not delinquent;

(5) When a water provider is collecting delinquent amounts for both the
water and sewer service, all delinquent payments due to both the water
and sewer provider shall be received by the water provider before water
service is restored. If for any reason water service is never restored,
any amount collected for delinquent accounts due both water and sewer
provider shall be divided between the water provider and the sewer
provider so that each receives the same percentage of the amount owed to
it;

(6) The agreement shall provide that in the event the water provider or
any independent contractor who performs such agreement under contract
with the water provider incurs attorney fees or other costs not covered
by insurance as a result of any claim, litigation, or threatened
litigation against the water provider or independent contractor which
exceeds the limits of insurance coverage provided to the water provider
or independent contractor by the sewer provider as stated in this
section, the sewer provider shall reimburse such amounts to the water
provider or independent contractor;

(7) The agreement shall contain a provision providing that the expense
and cost of the water provider shall be recalculated annually and that
the amount due it during the subsequent year shall be increased or
decreased according to any change occurring in the costs and expenses;
alternatively, upon agreement of the parties to the agreement, the
agreement may provide for annual increases or decreases based upon the
percentage of increase or decrease in the National Consumer Price Index
for All Urban Consumers, unadjusted for seasonal variation, as published
by the United States Department of Labor for the most recent date prior
to the annual anniversary date of the execution of the agreement;

(8) All expense and cost incurred by the water provider in performing or
carrying out the agreement shall be reimbursed to the water provider by
the sewer provider. The reimbursement shall be made monthly, bi-monthly,
or quarterly. In determining such expense incurred by the water provider,
the commissioners shall consider the following items of expense, whether
such items will be incurred by the water provider, at the time the
agreement is executed or in the future, and if so, the amount of such
expense attributable to such agreement at the time such agreement is
executed and in the future:

(a) All personnel expense including, but not limited to, wages and
salaries, employment taxes, retirement benefits, employment benefits,
health insurance, and workers' compensation insurance;

(b) All expense incurred by payments to independent contractors who
perform or carry out the agreement under contract with the water provider;

(c) Equipment expenses;

(d) Computer and computer program expense;

(e) Office space expense;

(f) Insurance expense attributable to the agreement between the water
provider and the sewer provider, including the additional insurance
expense of any independent contractor who performs or carries out the
agreement under contract with such water provider;

(g) All other expense attributable to the agreement between the water and
sewer provider;

(9) The agreement shall terminate in twenty years unless a different term
is agreed upon by the parties. Upon termination, the parties may agree to
an extension thereof, not to exceed an additional twenty years;

(10) If ownership of either the sewer system of the sewer provider or the
water system of the water provider is transferred to another entity or
person, the agreement shall terminate at the time of the transfer, unless
the new owner and remaining owner agree otherwise.

5. Upon the filing of such petition, the sewer provider shall appoint one
commissioner. The water provider shall appoint a commissioner within
thirty days of the service of the petition upon it. If the water provider
fails to appoint a commissioner within such time period, the court shall
appoint a commissioner on behalf of the water provider within forty-five
days of service of the petition on the water provider. The two named
commissioners shall agree to appoint a third commissioner within thirty
days after the appointment of the second commissioner, but in the event
that they fail to do so, the court shall appoint a third commissioner
within sixty days after the appointment of the second commissioner.

6. The commissioners shall draft an agreement between the water provider
and sewer provider meeting the requirements established in this section.
Before drafting such agreement, the water provider and sewer provider
shall be given an opportunity to present evidence and information
pertaining to such agreement at a hearing to be held by the
commissioners, of which each party shall receive fifteen days' written
notice. The hearing may be continued from time to time by the
commissioners. The commissioners shall consider all evidence and
information submitted to them and prepare such agreement as provided
under this section. The agreement shall be submitted to the court within
ninety days of the selection or appointment of the last commissioner as
provided under this section.

7. If the court finds that the agreement is fair, reasonable, and meets
the requirements of this section, then the court shall enter its judgment
approving the agreement and order it to become effective sixty days after
the date of such judgment. If the court finds such agreement is not fair
and reasonable or does not meet the requirements of this section, the
court shall return it to the commissioners with its reasons for rejecting
the agreement. The commissioners shall make the required changes and
resubmit the agreement to the court. Upon approval of the agreement by
the court, judgment shall be entered approving the agreement and ordering
it to become effective sixty days after the date of such judgment.
Thereafter, the parties shall abide by such agreement. If either party
fails to do so, the other party may file an action to compel compliance.
Venue shall be in the court issuing such judgment.

8. The judgment and order of the court shall be subject to appeal as
provided by law. All costs, including commissioners' compensation, shall
be taxed to and paid by the sewer provider requesting an agreement. The
court shall determine and order payment of fees of expert witnesses of
the water provider by the sewer provider to the water provider.

9. The provisions of this section shall not apply to any city not within
a county or any county with a charter form of government and with more
than one million inhabitants. (L. 2005 H.B. 58)



It shall be lawful for any corporation organized for that
purpose under chapter 351, RSMo, or heretofore organized for that purpose
under any laws of this state, or any foreign corporation for profit
organized under or subject to chapter 351, RSMo, to lay and construct an
underground water main, or underground water mains, along the
right-of-way of any public highways in this state, or across any stream
in this state, for the purpose of furnishing, at wholesale only, a supply
of water to any incorporated city, town or village, or cities, towns and
villages, in this state; provided, that when it shall become necessary in
laying and constructing such mains to make any excavations in any public
highway, the company constructing such mains shall restore such highway
to as good condition as same was in prior to the making of such
excavations, and when necessary in laying and constructing such
underground water main or mains every such corporation shall have the
power of eminent domain and may condemn right-of-way for such underground
water main or mains in the manner prescribed by law for the condemnation
of rights-of-way of railroads; provided, that where such underground
water mains are laid along any right-of-way of any railroad company or
through or under the roadbed of any railroad, the laying of the same
shall be according to standard and approved rules of construction, and in
such manner as not to weaken or impair the same or the use thereof, but
such construction shall be according to such standards as will insure the
safety of such railroads and the operation of trains over the same. (RSMo
1939 § 5371, A.L. 1943 p. 410 § 155)

Prior revisions: 1929 § 4964; 1919 § 10174



1. A sewer corporation shall have the power to acquire through
eminent domain proceedings the lands, property and rights of any
character whatsoever necessary to construct, extend, improve, alter,
maintain or operate its sewer system, in the manner prescribed by law for
gas corporations and electrical corporations.

2. A sewer corporation may construct and maintain its pipes along, across
or under any of the public roads, streets and waters of this state, in
such manner as not to incommode the public in the use of such roads,
streets and waters; provided, any sewer corporation desiring to place its
system in any city, town or village shall also obtain the consent from
such city, town or village through the municipal authorities thereof. (L.
1967 p. 578, A.L. 1984 H.B. 1477)



1. Any corporation, company or individual proposing to supply
with water any city, town or village, shall have the right to take water
from any stream that is not navigable and to erect a dam thereon. Any
such water corporation shall also have the right to acquire by
condemnation sufficient lands to lay pipes for the conveyance of water
in, over or through any lands situated beyond the source of water supply,
regardless of the nature or kind of such source of supply. Any such water
corporation shall also have the right to acquire by condemnation
sufficient lands upon which to drill wells to provide an adequate water
supply from underground sources. Any such water corporation shall also
have the right to acquire by condemnation sufficient lands upon which to
build, construct, install and operate facilities for the processing,
pumping, storage, distribution and management of water. Any such water
corporation may exercise any, some or all of the above granted powers
upon complying with the proceedings herein provided for.

2. In case any such corporation, company or individual cannot agree with
the owners of such water or lands sought to be obtained, or right-of-way,
upon compensation to be paid, or in case the owner is incapable of
contracting, be unknown, or be a nonresident of this state, such
corporation, company or individual may apply to the circuit court of the
county where said land or any part thereof lies, by petition, stating
what is desired. (RSMo 1939 § 5372, A.L. 1943 p. 410 § 156, A.L. 1955 p.
579, A.L. 1978 H.B. 1634)

Prior revisions: 1929 § 4965; 1919 § 10175; 1909 § 3369

Effective 1-2-79

(1954) Water company has no power to condemn land for purpose of taking
water from underneath surface under this section. State ex rel. Missouri
Water Co. v. Bostian (A.), 272 S.W.2d 857.

(1955) Water company has power to condemn lands upon which to build works
for pumping, storage, distribution and management of water and could
obtain water from beneath surface thereof. Reversing decision of court of
appeals at 272 S.W.2d 857. State ex rel. Missouri Water Co. v. Bostian,
365 Mo. 228, 290 S.W.2d 663.



1. Upon the presenting of the petition mentioned in section
393.030 to the circuit judge, he shall order the petition filed and a
summons to issue, giving such owners at least ten days' notice of the
time when said petition will be heard, which summons shall be served by
the sheriff of the county, in the same manner as writs of summons are or
may be by law required to be served.

2. If the name or residence of the owners be unknown, or if the owners,
or any of them, do not reside in the state, notice of the time of hearing
of the petition, reciting the substance of the petition and the day fixed
for the hearing thereof, shall be given by publication for three weeks
consecutively, prior to the time of hearing the petition, in a newspaper
published in the county in which the proceedings are pending, if one is
published in the county, or if no newspaper is published in such county,
or if the publisher shall refuse to publish the same on tender of his
usual charges for advertising, then posting up said notice for three
consecutive weeks at the door of the courthouse of the county wherein the
lands, or any portion of them, lie. (RSMo 1939 § 5373, A.L. 1943 p. 410 §
157)

Prior revisions: 1929 § 4966; 1919 § 10176; 1909 § 3370



1. The court, or the judge thereof in vacation, on being
satisfied that due notice of the pendency of the petition has been given,
shall appoint three disinterested commissioners, who shall be residents
of the county in which the real estate or stream of water or a part
thereof is situated, to assess the damages which the owners may severally
sustain by reason of such appropriation, who, after having viewed the
property, shall return, under oath, such assessment of damages to the
clerk of the court where such petition was filed, setting forth the
amount of damages; and should more than one owner be included in the
petition, then the damages allowed each shall be stated separately,
together with a specific description of the property for which such
damages are assessed, and the clerk shall file such report and record the
same in the order book of the court; and thereupon such corporation,
company or individual shall pay to the clerk the amount thus assessed,
for the party in whose favor such damages have been assessed, and on
making such payment, it shall be lawful for such corporation, company or
individual to hold the interest in the property so appropriated for the
uses prescribed in this section; and upon failure to pay the assessment,
the court may, upon motion and notice by the party entitled to such
damages, enforce the payment of the same by execution, unless the
corporation, company or individual shall, within ten days from the time
of receiving the notice of such assessment, elect to abandon the proposed
appropriation of any parcel of land, by an instrument, in writing, to
that effect, to be filed with the clerk, which shall be entered on the
minutes of the court; and as to so much as is thus abandoned, the
assessment of damages shall be void.

2. Under the provisions of this section, the commissioners or jury shall
be authorized to inquire and make report as to the value of the use of
any such stream, or the diversion of the waters thereof, in whole or in
part, or what damage will be done by the erection and maintenance of a
dam, or buildings, or the use of such stream in any manner for the
purposes prescribed in this section, specifically stating to whom and
upon what account damages are awarded and any person interested may
appear to be made a party, and have a right to file his exceptions to
such report within the time prescribed by law. (RSMo 1939 § 5374, A.L.
1943 p. 410 § 158, A.L. 1990 H.B. 1070)

Prior revisions: 1929 § 4967; 1919 § 10177; 1909 § 3371



Any number of owners owning lands in the same county or judicial
circuit may be joined in one petition, and the damages to each shall be
separately assessed by the same commissioners or jury. (RSMo 1939 § 5375,
A.L. 1943 p. 410 § 159)

Prior revisions: 1929 § 4968; 1919 § 10178; 1909 § 3372



Upon the filing of such report of the commissioners, the clerk
of the court where the same is filed shall duly notify the party whose
property is affected of the filing thereof, and as well the corporation,
company or individual; and the report of said commissioners may be
reviewed by the court in which the proceedings are had, on written
exceptions, filed by either party in the clerk's office within ten days
after service of the notice aforesaid, and the court shall make such
order therein as right and justice may require, and may order a new
appraisement upon good cause shown. Such new appraisement shall, at the
request of either party, be made by a jury under the supervision of the
court, as in ordinary cases of inquiry of damages; but notwithstanding
such exceptions, such corporation, company or individual may proceed to
appropriate the property so condemned and use it for any or all of the
purposes aforesaid, and any subsequent proceedings shall only affect the
amount of compensation to be allowed. In all cases arising under the
provisions of sections 393.030 to 393.060, the report of the
commissioners, when signed by a majority of them, shall be taken and
considered as the report of all. (RSMo 1939 § 5376, A.L. 1943 p. 410 §
160)

Prior revisions: 1929 § 4969; 1919 § 10179; 1909 § 3373



The cost of the proceeding to appropriate the property as
aforesaid shall be paid by the corporation, company or individual seeking
the appropriation, up to and including the filing and copying of the
report of the commissioners, and the court, as to any cost made by any
subsequent litigation, may make such order as in its discretion may be
deemed just. The court shall allow the commissioners a reasonable
compensation for their services, which shall be taxed as costs in the
proceedings. (RSMo 1939 § 5377, A.L. 1943 p. 410 § 161)

Prior revisions: 1929 § 4970; 1919 § 10180; 1909 § 3374



No corporation, company or individual shall be authorized to
enter or appropriate any dwelling, barn, store, warehouse or similar
building erected for any agricultural, commercial or manufacturing
purposes. (RSMo 1939 § 5378, A.L. 1943 p. 410 § 162)

Prior revisions: 1929 § 4971; 1919 § 10181; 1909 § 3375



In case the property sought to be appropriated is held by any
corporation, the right to appropriate the same for the purposes aforesaid
by any corporation, company or individual shall be limited to such use as
shall not materially interfere with the uses to which by law the
corporation holding the same is authorized to put said property. Where no
agreement can be made between the parties, the mode of assessing the
damages provided heretofore as to private persons shall be adopted, and
if the property to be appropriated lies in more than one county, an
application may be made in any one county in which any of the lands lie,
and the damages shall be assessed as to all the lands of the defendant
corporation along the whole line in one proceeding. (RSMo 1939 § 5379,
A.L. 1943 p. 410 § 163)

Prior revisions: 1929 § 4972; 1919 § 10182; 1909 § 3376



1. Any two or more electrical corporations or gas corporations
which own or intend to own, jointly or as tenants in common, any real or
personal property, or any interest therein, that is used or is to be
used, in whole or in part, for the generation, transmission or
distribution of electricity or for the production, gathering, storage,
processing, transmission or distribution of manufactured or natural gas
may enter into an agreement waiving their respective rights with respect
to the partition of the property or otherwise restricting the alienation
thereof for a period of time ending not later than the abandonment of the
use.

2. Without limiting the general application of subsection 1 of this
section, the rule of law commonly known as the rule against perpetuities
and the rule of law commonly known as the rule prohibiting unreasonable
restraints on alienation of property shall not be applied to invalidate,
render unenforceable or otherwise affect any agreement entered into
pursuant to this section. (L. 1975 S.B. 117)



1. As used in this section, the following terms mean:

(1) "Permanent service", electrical service provided through facilities
which have been permanently installed on a structure and which are
designed to provide electric service for the structure's anticipated
needs for the indefinite future, as contrasted with facilities installed
temporarily to provide electrical service during construction. Service
provided temporarily shall be at the risk of the electrical supplier and
shall not be determinative of the rights of the provider or recipient of
permanent service;

(2) "Structure" or "structures", an agricultural, residential,
commercial, industrial or other building or a mechanical installation,
machinery or apparatus at which retail electric energy is being delivered
through a metering device which is located on or adjacent to the
structure and connected to the lines of an electrical supplier. Such
terms shall include any contiguous or adjacent additions to or expansions
of a particular structure. Nothing in this section shall be construed to
confer any right on an electric supplier to serve new structures on a
particular tract of land because it was serving an existing structure on
that tract.

2. Once an electrical corporation or joint municipal utility commission,
or its predecessor in interest, lawfully commences supplying retail
electric energy to a structure through permanent service facilities, it
shall have the right to continue serving such structure, and other
suppliers of electrical energy shall not have the right to provide
service to the structure except as might be otherwise permitted in the
context of municipal annexation, pursuant to section 386.800, RSMo, and
section 394.080, RSMo, or pursuant to a territorial agreement approved
under section 394.312, RSMo. The public service commission, upon
application made by an affected party, may order a change of suppliers on
the basis that it is in the public interest for a reason other than a
rate differential. The commission's jurisdiction under this section is
limited to public interest determinations and excludes questions as to
the lawfulness of the provision of service, such questions being reserved
to courts of competent jurisdiction. Except as provided in this section,
nothing contained herein shall affect the rights, privileges or duties of
existing corporations pursuant to this chapter. Nothing in this section
shall be construed to make lawful any provision of service which was
unlawful prior to July 11, 1991. Nothing in this section shall be
construed to make unlawful the continued lawful provision of service to
any structure which may have had a different supplier in the past, if
such a change in supplier was lawful at the time it occurred. However,
those customers who had canceled service with their previous supplier or
had requested cancellation by May 1, 1991, shall be eligible to change
suppliers as per previous procedures. No customer shall be allowed to
change electric suppliers by disconnecting service between May 1, 1991,
and July 11, 1991. (L. 1982 H.B. 1646 § 1, A.L. 1986 H.B. 1486, A.L. 1991
S.B. 221)

Effective 7-11-91



1. Sections 393.110 to 393.285 shall apply to the manufacture
and furnishing of gas for light, heat or power and the furnishing of
natural gas for light, heat or power, and the generation, furnishing and
transmission of electricity for light, heat or power, the supplying and
distributing of water for any purpose whatsoever, and the furnishing of a
sewer system for the collection, carriage, treatment or disposal of
sewage for municipal, domestic or other beneficial or necessary purpose.

2. Notwithstanding any provision in chapter 386, RSMo, or this chapter to
the contrary, the public service commission shall not have jurisdiction
over the rates, financing, accounting, or management of any electrical
corporation which is required by its bylaws to operate on the
not-for-profit cooperative business plan, with its consumers who receive
service as the stockholders of such corporation, and which holds a
certificate of public convenience and necessity to serve a majority of
its consumer-owners in counties of the third classification as of August
28, 2003. Nothing in this section shall be construed as amending or
superseding the commission's authority granted in and pursuant to
subsection 1 of section 386.310, RSMo, in section 386.800, RSMo, section
393.106, and section 394.312, RSMo. (RSMo 1939 § 5644, A.L. 1967 p. 578,
A.L. 2003 H.B. 208 merged with S.B. 255)

Prior revisions: 1929 § 5188; 1919 § 10476



The provisions of section 386.020, RSMo, defining words, phrases
and terms, shall apply to and determine the meaning of all such words,
phrases or terms as used in sections 393.110 to 393.290. (1949 H.B. 2105
§ 393.12)



1. Every gas corporation, every electrical corporation, every
water corporation, and every sewer corporation shall furnish and provide
such service instrumentalities and facilities as shall be safe and
adequate and in all respects just and reasonable. All charges made or
demanded by any such gas corporation, electrical corporation, water
corporation or sewer corporation for gas, electricity, water, sewer or
any service rendered or to be rendered shall be just and reasonable and
not more than allowed by law or by order or decision of the commission.
Every unjust or unreasonable charge made or demanded for gas,
electricity, water, sewer or any such service, or in connection
therewith, or in excess of that allowed by law or by order or decision of
the commission is prohibited.

2. No gas corporation, electrical corporation, water corporation or sewer
corporation shall directly or indirectly by any special rate, rebate,
drawback or other device or method, charge, demand, collect or receive
from any person or corporation a greater or less compensation for gas,
electricity, water, sewer or for any service rendered or to be rendered
or in connection therewith, except as authorized in this chapter, than it
charges, demands, collects or receives from any other person or
corporation for doing a like and contemporaneous service with respect
thereto under the same or substantially similar circumstances or
conditions.

3. No gas corporation, electrical corporation, water corporation or sewer
corporation shall make or grant any undue or unreasonable preference or
advantage to any person, corporation or locality, or to any particular
description of service in any respect whatsoever, or subject any
particular person, corporation or locality or any particular description
of service to any undue or unreasonable prejudice or disadvantage in any
respect whatsoever.

4. Nothing in this section shall be taken to prohibit a gas corporation,
electrical corporation, water corporation or sewer corporation from
establishing a sliding scale for a fixed period for the automatic
adjustment of charges for gas, electricity, water, sewer or any service
rendered or to be rendered and the dividends to be paid stockholders of
such gas corporation, electrical corporation, water corporation or sewer
corporation; provided, that the sliding scale shall first have been filed
with and approved by the commission; but nothing in this subsection shall
operate to prevent the commission after the expiration of such fixed
period from fixing proper, just and reasonable rates and charges to be
made for service as authorized in sections 393.110 to 393.285.

5. No water corporation shall be permitted to charge any municipality or
fire protection district a rate for the placing and providing of fire
hydrants for distribution of water for use in protecting life and
property from the hazards of fire within such municipality or fire
protection district. Nothing herein shall prevent such water corporation
from including the cost of placement and maintenance of such fire
hydrants in its cost basis in determining a fair and reasonable rate to
be charged for water. Any such fee or rental charge being made for such
fire hydrants whether by contract or otherwise at the time this act shall
take effect may remain in effect for a period of one hundred twenty days
after this section shall take effect.

6. In any home rule city with more than four hundred thousand inhabitants
and located in more than one county, any deposits held by the city for
any water or sewerage services provided to a customer at any premises
shall accrue interest if the customer is current in payments for water
and sewerage services and if the city has held the deposit for two or
more years. Interest for each year, or part thereof, shall accrue at the
rate set for six month United States treasury bills effective December
thirty-first of the preceding year. For any deposit held by the city on
or before the December thirty-first prior to August 28, 2002, if that
deposit is still held by the city on the December thirty-first one year
next following August 28, 2002, interest accruing pursuant to this
section from the effective date shall be credited to the customer's
individual account, or paid to the customer, at the city's discretion.
(RSMo 1939 § 5645, A. 1949 H.B. 2165, A.L. 1967 p. 578, A.L. 1969 H.B.
24, A.L. 2002 H.B. 1635)

Prior revisions: 1929 § 5189; 1919 § 10477



Any charge made or demanded by an electrical corporation for
service, or in connection therewith, which is based on the costs of
construction in progress upon any existing or new facility of the
electrical corporation, or any other cost associated with owning,
operating, maintaining, or financing any property before it is fully
operational and used for service, is unjust and unreasonable, and is
prohibited. (Adopted by Initiative, Proposition No. 1, November 2, 1976)



Notwithstanding the foregoing, any such charge which is being
made or demanded on November 2, 1976, shall not be deemed unjust or
unreasonable by reason of section 393.135, and shall not be prohibited
thereby, for a period of ninety days after the effective date of this
law. (Adopted by Initiative, Proposition No. 1, November 2, 1976)



The commission shall:

(1) Have general supervision of all gas corporations, electrical
corporations, water corporations and sewer corporations having authority
under any special or general law or under any charter or franchise to lay
down, erect or maintain wires, pipes, conduits, ducts or other fixtures
in, over or under the streets, highways and public places of any
municipality, for the purpose of furnishing or distributing water or gas
or of furnishing or transmitting electricity for light, heat or power, or
maintaining underground conduits or ducts for electrical conductors, or
for the purpose of collecting, carrying, treating, or disposing of
sewage, and all gas plants, electric plants, water systems and sewer
systems owned, leased or operated by any gas corporation, electrical
corporation, water corporation, or sewer corporation.

(2) Investigate and ascertain, from time to time, the quality of gas or
water supplied and sewer service furnished by persons and corporations,
examine or investigate the methods employed by such persons and
corporations in manufacturing, distributing and supplying gas or
electricity for light, heat or power and in transmitting the same, and in
supplying and distributing water for any purpose whatsoever, and in
furnishing a sewer system, and have power to order such reasonable
improvements as will best promote the public interest, preserve the
public health and protect those using such gas, electricity, water, or
sewer system, and those employed in the manufacture and distribution
thereof, and have power to order reasonable improvements and extensions
of the works, wires, poles, pipes, lines, conduits, ducts and other
reasonable devices, apparatus and property of gas corporations,
electrical corporations, water corporations, and sewer corporations.

(3) Have power, by order, to fix from time to time standards for the
measurement of the purity or illuminating power of gas to be
manufactured, distributed or sold by persons or corporations for
lighting, heating or power purposes, to prescribe from time to time the
efficiency of the electric supply system, of the current supplied and of
the lamps furnished by the persons or corporations generating and selling
electric current, and to fix from time to time standards for the
measurement of the purity or pressure of water to be distributed or sold
by persons or corporations for any purpose whatsoever, and to fix from
time to time the standards for designing, constructing, operating and
maintaining sewer systems of sewer corporations, including sewers, sewage
pumping stations, sewage treatment works, primary treatment facilities,
sludge digestion and disposal facilities, secondary treatment facilities,
disinfection facilities, and any and all facilities related thereto;
provided, however, that such standards shall be supplemental to and in no
way set standards lesser than the minimum standards adopted by the state
water pollution board, and by order to require gas so manufactured,
distributed or sold to equal the standards so fixed by it, and to
prescribe from time to time the reasonable minimum and maximum pressure
at which gas shall be delivered by said persons or corporations. For the
purpose of determining whether the gas manufactured, distributed or sold
by such persons or corporations for lighting, heating or power purposes
conforms to the standards of illuminating power, purity and pressure, and
for the purpose of determining whether the efficiency of the electric
supply system, of the current supplied and of the lamps furnished, and
for the purpose of determining whether the water furnished or sold
conforms to the standard of purity and pressure, and for the purpose of
determining whether the sewer system conforms to the standards for
designing, constructing, operating and maintaining sewer systems, and
conforms to the orders issued by the commission, the commission shall
have power, of its own motion, to examine and investigate the plants and
methods employed in manufacturing, delivering and supplying gas,
electricity or water, and the collecting, carrying, treating and
disposing of sewage, and shall have access, through its members or
persons employed and authorized by it, to make such examinations and
investigations to all parts of the manufacturing plants owned, used or
operated for the manufacture, transmission or distribution of gas or
electricity by any such person or corporation, and to all parts of the
systems owned, used or operated for the supplying and distribution of
water and the collecting, carrying, treating and disposing of sewage by
any such person or corporation. Any employee or agent of the commission
who divulges any fact or information which may come to his knowledge
during the course of any such inspection or examination, except insofar
as he may be directed by the commission, or by a court or judge thereof,
or authorized by law, shall be guilty of a misdemeanor.

(4) Have power, in its discretion, to prescribe uniform methods of
keeping accounts, records and books, to be observed by gas corporations,
electrical corporations, water corporations and sewer corporations
engaged in the manufacture, sale or distribution of gas and electricity
for light, heat or power, or in the distribution and sale of water for
any purpose whatsoever, or in the collection, carriage, treatment and
disposal of sewage for municipal, domestic or other necessary beneficial
purpose. It may also, in its discretion, prescribe, by order, forms of
accounts, records and memoranda to be kept by such persons and
corporations. Notice of alterations by the commission in the required
method or form of keeping a system of accounts shall be given to such
persons or corporations by the commission at least six months before the
same shall take effect. Any other and additional forms of accounts,
records and memoranda kept by such corporation shall be subject to
examination by the commission.

(5) Examine all persons and corporations under its supervision and keep
informed as to the methods, practices, regulations and property employed
by them in the transaction of their business. Whenever the commission
shall be of the opinion, after a hearing had upon its own motion or upon
complaint, that the rates or charges or the acts or regulations of any
such persons or corporations are unjust, unreasonable, unjustly
discriminatory or unduly preferential or in any wise in violation of any
provision of law, the commission shall determine and prescribe the just
and reasonable rates and charges thereafter to be in force for the
service to be furnished, notwithstanding that a higher rate or charge has
heretofore been authorized by statute, and the just and reasonable acts
and regulations to be done and observed; and whenever the commission
shall be of the opinion, after a hearing had upon its own motion or upon
complaints, that the property, equipment or appliances of any such person
or corporation are unsafe, insufficient or inadequate, the commission
shall determine and prescribe the safe, efficient and adequate property,
equipment and appliances thereafter to be used, maintained and operated
for the security and accommodation of the public and in compliance with
the provisions of law and of their franchises and charters.

(6) Require every person and corporation under its supervision and it
shall be the duty of every person and corporation to file with the
commission an annual report, verified by the oath of the president,
treasurer, general manager or receiver, if any, thereof. The verification
shall be made by said official holding office at the time of the filing
of said report, and if not made upon the knowledge of the person
verifying the same, shall set forth the sources of his information and
the grounds of his belief as to any matters not stated to be verified
upon his knowledge. The report shall show in detail the amount of its
authorized capital stock and the amount thereof issued and outstanding;
the amount of its authorized bonded indebtedness and the amount of its
bonds and other forms of evidence of indebtedness issued and outstanding;
its receipts and expenditures during the preceding year; the amount paid
as dividends upon its stock and as interest upon its bonds; the names of
its officers and the aggregate amount paid as salaries to them and the
amount paid as wages to its employees; the location of its plant or
plants and system, with a full description of its property and
franchises, stating in detail how each franchise stated to be owned was
acquired; and such other facts pertaining to the operation and
maintenance of the plant and system, and the affairs of such person or
corporation as may be required by the commission. Such reports shall be
in the form, cover the period and be filed at the time prescribed by the
commission. The commission may, from time to time, make changes and
additions in such forms. When any such report is defective or believed to
be erroneous, the commission shall notify the person or corporation
making such report to amend the same within a time prescribed by the
commission. Any such person or corporation which shall neglect to make
any such report or which shall fail to correct any such report within the
time prescribed by the commission shall be liable to a penalty of one
hundred dollars and an additional penalty of one hundred dollars for each
day after the prescribed time for which it shall neglect to file or
correct the same, to be sued for in the name of the state of Missouri.
The amount recovered in any such action shall be paid to the public
school fund of the state. The commission may extend the time prescribed
for cause shown.

(7) Have power, either through its members or inspectors or employees
duly authorized by it, to enter in or upon and to inspect the property,
buildings, plants, factories, powerhouses, ducts, conduits and offices of
any such corporations or persons.

(8) Have power to examine the accounts, books, contracts, records,
documents and papers of any such corporation or person, and have power,
after hearing, to prescribe by order the accounts in which particular
outlays and receipts shall be entered, charged or credited.

(9) Have power to compel, by subpoena duces tecum, the production of any
accounts, books, contracts, records, documents, memoranda and papers. In
lieu of requiring production of originals by subpoena duces tecum the
commission or any commissioner may require sworn copies of any such
books, records, contracts, documents and papers, or parts thereof, to be
filed with it. The commission may require of all such corporations or
persons specific answers to questions upon which the commission may need
information, and may also require such corporations or persons to file
periodic reports in the form, covering the period and filed at the time
prescribed by the commission. If such corporation or person shall fail to
make specific answer to any question or shall fail to make a periodic
report when required by the commission as herein provided within the time
and in the form prescribed by the commission for the making and filing of
any such report or answer, such corporation or person shall forfeit to
the state the sum of one hundred dollars for each and every day it shall
continue to be in default with respect to such report or answer. Such
forfeiture shall be recovered in an action brought by the commission in
the name of the state of Missouri. The amount recovered in any such
action shall be paid to the public school fund of the state.

(10) Have power in all parts of the state, either as a commission or
through its members, to subpoena witnesses, take testimony and administer
oaths to witnesses in any proceeding or examination instituted before it,
or conducted by it, in reference to any matter under sections 393.110 to
393.285.

(11) Have power to require every gas corporation, electrical corporation,
water corporation, and sewer corporation to file with the commission and
to print and keep open to public inspection schedules showing all rates
and charges made, established or enforced or to be charged or enforced,
all forms of contract or agreement and all rules and regulations relating
to rates, charges or service used or to be used, and all general
privileges and facilities granted or allowed by such gas corporation,
electrical corporation, water corporation, or sewer corporation; but this
subdivision shall not apply to state, municipal or federal contracts.
Unless the commission otherwise orders, no change shall be made in any
rate or charge, or in any form of contract or agreement, or any rule or
regulation relating to any rate, charge or service, or in any general
privilege or facility, which shall have been filed and published by a gas
corporation, electrical corporation, water corporation, or sewer
corporation in compliance with an order or decision of the commission,
except after thirty days' notice to the commission and publication for
thirty days as required by order of the commission, which shall plainly
state the changes proposed to be made in the schedule then in force and
the time when the change will go into effect. The commission for good
cause shown may allow changes without requiring the thirty days' notice
under such conditions as it may prescribe. No corporation shall charge,
demand, collect or receive a greater or less or different compensation
for any service rendered or to be rendered than the rates and charges
applicable to such services as specified in its schedule filed and in
effect at the time; nor shall any corporation refund or remit in any
manner or by any device any portion of the rates or charges so specified,
nor to extend to any person or corporation any form of contract or
agreement, or any rule or regulation, or any privilege or facility,
except such as are regularly and uniformly extended to all persons and
corporations under like circumstances. The commission shall have power to
prescribe the form of every such schedule, and from time to time
prescribe by order such changes in the form thereof as may be deemed
wise. The commission shall also have power to establish such rules and
regulations, to carry into effect the provisions of this subdivision, as
it may deem necessary, and to modify and amend such rules or regulations
from time to time.

(12) In case any electrical corporation, gas corporation, water
corporation or sewer corporation engaged in carrying on any other
business than owning, operating or managing a gas plant, electric plant,
water system or sewer system which other business is not otherwise
subject to the jurisdiction of the commission, and is so conducted that
its operations are to be substantially kept separate and apart from the
owning, operating, managing or controlling of such gas plant, electric
plant, water system or sewer system, said corporation in respect to such
other business shall not be subject to any of the provisions of this
chapter and shall not be required to procure the consent or authorization
of the commission to any act in such other business or to make any report
in respect thereof. But this subdivision shall not restrict or limit the
powers of the commission in respect to the owning, operating, managing or
controlling by such corporation of such gas plant, electric plant, water
system or sewer system, and said powers shall include also the right to
inquire as to, and prescribe the apportionment of, capitalization,
earnings, debts and expenses fairly and justly to be awarded to or borne
by the ownership, operation, management or control of such gas plant,
electric plant, water system or sewer system as distinguished from such
other business. In any such case if the owning, operating, managing or
controlling of such gas plant, electric plant, water system or sewer
system by any such corporation is wholly subsidiary and incidental to the
other business carried on by it and is inconsiderable in amount and not
general in its character, the commission may by general rules exempt such
corporation from making full reports and from the keeping of accounts as
to such subsidiary and incidental business. (RSMo 1939 § 5646, A. 1949
H.B. 2165, A.L. 1967 p. 578)

Prior revisions: 1929 § 5190; 1919 § 10478

(1957) Action against electric power company for refund of moneys paid
under written contract involving question of whether plaintiff had fully
performed its part of contract held within jurisdiction of circuit court.
Katz Drug Co. v. K.C. Power & Light Co. (A.), 303 S.W.2d 672.

(1976) Rate increases are properly sought by utilities under the "file
and suspend" method and this is true whether or not current rates had
been set by the "file" method or fixed by order of the commission after a
hearing. State ex rel. Jackson County v. Public Service Commission (Mo.),
532 S.W.2d 20.

(2000) Tariff limiting nonresidential customer refunds to sixty prior
billing periods did not violate statute governing refunds of excess
charges, as statute authorized Public Service Commission to establish
rules and regulations to carry out this provision. A.C. Jacobs & Co.,
Inc., v. Union Electric Co., 17 S.W.3d 579 (Mo.App.W.D.).



1. If, after hearing, the commission determines that any sewer
or water corporation that regularly provides service to eight thousand or
fewer customer connections is unable or unwilling to provide safe and
adequate service, has been actually or effectively abandoned by its
owners, or has defaulted on a bond, note or loan issued or guaranteed by
any department, office, commission, board, authority or other unit of
state government, the commission may petition the circuit court for an
order attaching the assets of the utility and placing the utility under
the control and responsibility of a receiver. The venue of such cases
shall, at the option of the commission, be in the circuit court of Cole
County or in the circuit court of the county in which the utility company
has its principal place of business.

2. If the commission orders its general counsel to petition the circuit
court for the appointment of a receiver under subsection 1 of this
section, it may in the same order appoint an interim receiver for the
sewer or water corporation. The interim receiver shall have the authority
generally granted to a receiver under subsection 6 of this section,
except that the commission cannot authorize the interim receiver to
transfer by sale or liquidate the assets of the utility. The interim
receiver shall be compensated in an amount to be determined by the
commission. The interim receiver shall serve until a judgment on a
petition for writ of review of the commission's order, if any, is final
and unappealable, and until the circuit court thereafter determines under
subsection 5 of this section whether to grant the commission's petition
for appointment of receiver.

3. When the commission files its petition for appointment of receiver in
the circuit court, it shall attach to its petition an official copy of
its determination under subsection 1 of this section. The commission
shall not file such action until its determination under subsection 1 of
this section is final and unappealable.

4. The summons and petition for an order attaching the assets of the
utility and appointing a receiver shall be served as in other civil cases
at least five days before the return date of the summons. In addition to
attempted personal service, upon request of the commission, the judge
before whom the proceeding is commenced shall make an order directing
that the officer or other person empowered to execute the summons shall
also serve the same by securely affixing a copy of the summons and
petition in a conspicuous place on the utility system in question at
least ten days before the return date of the summons, and by also mailing
a copy of the summons and petition to the defendant at its last known
address by ordinary mail and by certified mail, return receipt requested,
deliver to addressee only, at least ten days before the return date. If
the officer or other person empowered to execute the summons makes return
that personal service cannot be obtained on the defendant, and if proof
be made by affidavit of the posting and of the mailing of a copy of the
summons and petition, the judge shall, at the request of the commission,
proceed to hear the case as if there had been personal service, and
judgment shall be rendered and proceedings had as in other cases. If the
commission does not request service of the original summons by posting
and mailing, and if the officer or other person empowered to execute the
summons makes return that personal service cannot be obtained on the
defendant, the commission may request the issuance of an alias summons
and service of the same by posting and mailing in the time and manner
provided in this subsection. Upon proof by affidavit of the posting and
of the mailing of a copy of the alias summons and the petition, the judge
shall proceed to hear the case as if there had been personal service, and
judgment shall be rendered and proceedings had as in other cases.

5. The court, after hearing, may grant the commission's petition for
appointment of a receiver. Where the defendant is in default, the court
shall mail to the defendant at its last known address by certified mail
with a request for return receipt and with directions to deliver to the
addressee only, a notice informing the defendant of the judgment and the
date it was entered. A receiver appointed pursuant to this section shall
be a responsible person, partnership, or corporation knowledgeable in the
operation of utilities.

6. The receiver shall give bond, and have the same powers and be subject
to all the provisions, as far as they may be applicable, enjoined upon a
receiver appointed by virtue of the law providing for suits by
attachment. The receiver shall operate the utility so as to preserve the
assets of the utility and to serve the best interests of its customers.
The receiver shall be compensated from the assets of the utility in an
amount to be determined by the court with the assistance of the
commission staff. Any receiver or interim receiver appointed under this
section shall be immune from personal liability for any civil damages
arising from acts performed in his or her official capacity for actions
for which the receiver or interim receiver would not otherwise be liable
except for his or her affiliation with the utility. This immunity shall
not, however, apply to intentional conduct, wanton or willful conduct, or
gross negligence. Nothing in this subsection shall be construed to create
or abolish an immunity in favor of the utility itself.

7. Control of and responsibility for the utility shall remain in the
receiver until the utility can, in the best interests of its customers,
be returned to the owners. However, if the commission or another
interested party petitions and the court determines, after hearing, that
control of and responsibility for the utility should not, in the best
interests of its customers, be returned to the owners, the court shall
direct the receiver to transfer by sale or liquidate the assets of the
utility in the manner provided by law.

8. The appointment of a receiver or an interim receiver shall be in
addition to any other remedies provided by law.

9. Notwithstanding the requirement of section 386.600, RSMo, to the
contrary, penalties for violations of the public service commission law
or related commission regulations that are collected from a sewer or
water corporation that has been placed in receivership under the
provisions of this section or for which the commission has appointed an
interim receiver under the provisions of this section may, upon the order
of the court that imposed the penalties, be used to support the operation
of the subject small sewer or water corporation while it is under the
control of the receiver. (L. 1991 H.B. 299 merged with S.B. 221, A.L.
2005 S.B. 462)

Effective 6-29-05



1. As used in this section the following terms shall mean:

(1) "Capable public utility", a public utility that regularly provides
the same type of service as a small water corporation or a small sewer
corporation to more than eight thousand customer connections, that is not
an affiliate of a small water corporation or a small sewer corporation,
and that provides safe and adequate service; and shall not include a
sewer district established pursuant to article VI*, section 30(a) of the
Missouri Constitution, sewer districts established under the provisions
of chapter 204, 249 or 250, RSMo, public water supply districts
established under the provisions of chapter 247, RSMo, or municipalities
that own and operate water or sewer systems;

(2) "Department", the department of natural resources;

(3) "Small sewer corporation", a public utility that regularly provides
sewer service to eight thousand or fewer customer connections;

(4) "Small water corporation", a public utility that regularly provides
water service to eight thousand or fewer customer connections.

2. The commission may order a capable public utility to acquire a small
water or sewer corporation if, after providing notice and an opportunity
to be heard, the commission determines:

(1) That the small water or sewer corporation is in violation of
statutory or regulatory standards that affect the safety and adequacy of
the service provided by the small water or sewer corporation, including
but not limited to the public service commission law, the federal clean
water law, the federal Safe Drinking Water Act, as amended, and the
regulations adopted under these laws; or

(2) That the small water or sewer corporation has failed to comply,
within a reasonable period of time, with any order of the department or
the commission concerning the safety and adequacy of service, including
but not limited to the availability of water, the potability of water,
the palatability of water, the provision of water at adequate volume and
pressure, the prevention of discharge of untreated or inadequately
treated sewage to the waters of the state, and the prevention of
environmental damage; or

(3) That it is not reasonable to expect that the small water or sewer
corporation will furnish and maintain safe and adequate service and
facilities in the future; and

(4) That the commission has considered alternatives to acquisition in
accordance with subsection 3 of this section and has determined that they
are impractical or not economically feasible; and

(5) That the acquiring capable public utility is financially,
managerially, and technically capable of acquiring and operating the
small water or sewer corporation in compliance with applicable statutory
and regulatory standards.

3. Except when there is an imminent threat of serious harm to life or
property, before the commission may order the acquisition of a small
water or sewer corporation in accordance with subsection 2 of this
section, the commission shall discuss alternatives to acquisition with
the small water or sewer corporation and shall give such small water or
sewer corporation thirty days to investigate alternatives to acquisition,
including:

(1) The reorganization of the small water or sewer corporation under new
management;

(2) The entering of a contract with another public utility or a
management or service company to operate the small water or sewer
corporation;

(3) The merger of the small water or sewer corporation with one or more
other public utilities; and

(4) The acquisition of the small water or sewer corporation by a
municipality, a municipal authority, a public water supply district, a
public sewer district, or a cooperative.

4. When the commission determines that there is an imminent threat of
serious harm to life or property, the commission may appoint an interim
receiver prior to the opportunity for hearing, provided that the
commission shall provide opportunity for hearing as soon as practicable
after the issuance of such order.

5. In making a determination under subsection 2 of this section, the
commission shall consider:

(1) The financial, managerial, and technical ability of the small water
or sewer corporation;

(2) The financial, managerial, and technical ability of all proximate
public utilities that provide the same type of service and constitute an
alternative to acquisition;

(3) The expenditures that are needed to improve the facilities of the
small water or sewer corporation to assure compliance with applicable
statutory and regulatory standards concerning the adequacy, efficiency,
safety, and reasonableness of utility service, and to sufficiently
provide safe and adequate service to the customers of the small water or
sewer corporation;

(4) The potential for expansion of the certificated service area of the
small water or sewer corporation; and

(5) The opinion and advice, if any, of the department as to what steps
may be necessary to assure compliance with applicable statutory or
regulatory standards concerning the safety and adequacy of utility
service.

6. Subsequent to the determination required under subsection 2 of this
section, the commission shall issue an order for the acquisition of a
small water or sewer corporation by a capable public utility. Such order
shall include granting a certificate of public convenience and necessity
to the acquiring capable public utility for the small water or sewer
corporation's established service area.

7. The price for the acquisition of a small water or sewer corporation
shall be determined by agreement between the small water or sewer
corporation and the acquiring capable public utility, subject to a
determination by the commission that the price is reasonable. If the
small water or sewer corporation and the acquiring capable public utility
are unable to agree on the acquisition price, or the commission
disapproves the acquisition price to which the utilities agreed, the
commission shall issue an order directing the acquiring capable public
utility to acquire the small water or sewer corporation at an acquisition
price that is equal to the ratemaking rate base as determined by the
commission after notice and hearing, or providing that the acquiring
capable public utility will not be allowed to earn a rate of return on
the portion of the purchase price that is in excess of the ratemaking
rate base determined by the commission after notice and hearing. The
burden of establishing the ratemaking rate base shall be upon the small
water or sewer corporation.

8. Any capable public utility that is ordered by the commission to
acquire a small water or sewer corporation shall, within thirty days
after acquisition, submit a plan, including a timetable, for bringing the
small water or sewer corporation into compliance with applicable
statutory and regulatory standards to the commission for approval. The
capable public utility shall also provide a copy of the plan to the
department and such other state or local agency as the commission may
direct. The commission shall give the department adequate opportunity to
comment on the plan and shall consider any comments submitted by the
department and shall expeditiously decide whether to approve the plan.

9. Upon the acquisition of a small water or sewer corporation by a
capable public utility, and approval by the commission of a plan for
improvements submitted under subsection 8 of this section, the acquiring
capable public utility shall not be liable for any damages if the cause
of those damages is proximately related to violations of applicable
statutes or regulations by the small water or sewer corporation and the
acquiring capable public utility remains in compliance with the plan for
improvements submitted under subsection 8 of this section. This
subsection shall not apply:

(1) Beyond the end of the timetable in the plan for improvements;

(2) Whenever the acquiring capable public utility is not in compliance
with the plan for improvements; or

(3) If, within sixty days after receipt of notice of the proposed plan
for improvements, the department submitted written objections to the
commission and those objections have not subsequently been withdrawn.

10. Upon approval by the commission of a plan for improvements submitted
under subsection 8 of this section, and the acquisition of a small water
or sewer corporation by a capable public utility, the acquiring capable
utility shall not be subject to any enforcement actions by state or local
agencies that had notice of the plan, if the basis of such enforcement
action is proximately related to violations of applicable statutes or
regulations by the small water or sewer corporation. This subsection
shall not apply:

(1) Beyond the end of the timetable in the plan for improvements;

(2) Whenever the acquiring capable public utility is not in compliance
with the plan for improvements;

(3) If, within sixty days of having received notice of the proposed plan
for improvements, the department submitted written objections to the
commission and those objections have not subsequently been withdrawn; or

(4) To emergency interim actions of the commission or the department,
including but not limited to the ordering of boil-water advisories or
other water supply warnings, of emergency treatment, or of temporary
alternate supplies of water or sewer services.

11. If the commission orders the acquisition of a small water or sewer
corporation, the commission shall authorize the acquiring capable public
utility to utilize the commission's small company rate case procedure for
establishing the rates to be applicable to the system being acquired.
Such rates may be designed to recover the costs of operating the acquired
system and to recover one hundred percent of the revenues necessary to
provide a net after-tax return on the ratemaking rate base value of the
small water or sewer corporation's facilities acquired by the capable
public utility, and the ratemaking rate base value of any improvements
made to the facilities by the acquiring capable public utility subsequent
to the acquisition, at a rate of return equivalent to one hundred basis
points above the rate of return authorized for the acquiring capable
public utility in its last general rate proceeding. The acquiring capable
public utility may utilize the commission's small company rate case
procedure for the purposes stated in this section until such time that a
determination is made on the acquiring utility's next company-wide
general rate increase, but not in excess of three years from the date of
the acquisition of the subject small water or sewer corporation.

12. Proceedings under this section may be initiated by complaint filed by
the staff of the commission, the office of the public counsel, the mayor,
or the president or chair of the board of aldermen, or a majority of the
council, commission, or other legislative body of any city, town,
village, or county within which the alleged unsafe or inadequate service
is provided, or by not less than twenty-five consumers or purchasers, or
prospective consumers or purchasers, of the utility service provided by a
small water or sewer corporation. The complainant shall have the burden
of proving that the acquisition of the small water or sewer corporation
would be in the public interest and in compliance with the provisions of
this section.

13. The notice required by subsection 2 of this section, or any other
provision of this section, shall be served upon the small water or sewer
corporation affected, the office of the public counsel, the department,
all proximate public utilities providing the same type of service as the
small water or sewer corporation, all proximate municipalities and
municipal authorities providing the same type of service as the small
water or sewer corporation, and the municipalities served by the small
water or sewer corporation. The commission shall order the affected small
water or sewer corporation to provide notice to its customers of the
initiation of proceedings under this section in the same manner in which
the utility is required to notify its customers of proposed general rate
increases.

14. A public utility that would otherwise be a capable public utility
except for the fact that it has fewer than eight thousand customer
connections may petition the commission to be designated a capable public
utility for the purposes of this section regardless of the number of its
customer connections and regardless of whether it is proximate to the
small water corporation or small water corporation to be acquired. The
commission may grant such a petition upon finding that designating the
petitioning public utility as a capable public utility is not detrimental
to the public interest.

15. Notwithstanding the requirement of section 386.600, RSMo, to the
contrary, penalties for violations of the public service commission law
or related commission regulations that have been imposed on a small sewer
or water corporation that has been placed in receivership under the
provisions of section 393.145 may, upon the order of the court that
imposed the penalties, be used to reduce the purchase price paid by a
capable public utility for the acquisition of the assets of the subject
small sewer or water corporation. In such a case, the commission shall
make a corresponding reduction to the ratemaking rate base value of the
subject assets for purposes of future ratemaking activities.

16. The commission shall, no later than June 29, 2005, initiate a
rulemaking, pursuant to the provisions of its internal rulemaking
procedures, to promulgate rules to carry out the purposes of this
section. Any rule or portion of a rule, as that term is defined in
section 536.010, RSMo, that is created under the authority delegated in
this section shall become effective only if it complies with and is
subject to all of the provisions of chapter 536, RSMo, and, if
applicable, section 536.028, RSMo. This section and chapter 536, RSMo,
are nonseverable and if any of the powers vested with the general
assembly pursuant to chapter 536, RSMo, to review, to delay the effective
date, or to disapprove and annul a rule are subsequently held
unconstitutional, then the grant of rulemaking authority and any rule
proposed or adopted after August 28, 2005, shall be invalid and void. (L.
2005 S.B. 462)

Effective 6-29-05

*Original rolls contain "IV", a typographical error.



The commission may enter into cooperative agreements and
contracts with the state environmental improvement and energy resources
authority for the purpose of establishing and administering loan programs
for water corporations and sewer corporations which have one thousand or
fewer customers. (L. 1992 H.B. 1803 merged with S.B. 853)

Effective 7-9-92



1. Whenever there shall be filed with the commission by any gas
corporation, electrical corporation, water corporation or sewer
corporation any schedule stating a new rate or charge, or any new form of
contract or agreement, or any new rule, regulation or practice relating
to any rate, charge or service or to any general privilege or facility,
the commission shall have, and it is hereby given, authority, either upon
complaint or upon its own initiative without complaint, at once, and if
it so orders without answer or other formal pleading by the interested
gas corporation, electrical corporation, water corporation or sewer
corporation, but upon reasonable notice, to enter upon a hearing
concerning the propriety of such rate, charge, form of contract or
agreement, rule, regulation or practice, and pending such hearing and the
decision thereon, the commission upon filing with such schedule, and
delivering to the gas corporation, electrical corporation, water
corporation or sewer corporation affected thereby, a statement in writing
of its reasons for such suspension, may suspend the operation of such
schedule and defer the use of such rate, charge, form of contract or
agreement, rule, regulation or practice, but not for a longer period than
one hundred and twenty days beyond the time when such rate, charge, form
of contract or agreement, rule, regulation or practice would otherwise go
into effect; and after full hearing, whether completed before or after
the rate, charge, form of contract or agreement, rule, regulation or
practice goes into effect, the commission may make such order in
reference to such rate, charge, form of contract or agreement, rule,
regulation or practice as would be proper in a proceeding initiated after
the rate, charge, form of contract or agreement, rule, regulation or
practice had become effective.

2. If any such hearing cannot be concluded within the period of
suspension, as above stated, the commission may, in its discretion,
extend the time of suspension for a further period not exceeding six
months. At any hearing involving a rate sought to be increased, the
burden of proof to show that the increased rate or proposed increased
rate is just and reasonable shall be upon the gas corporation, electrical
corporation, water corporation or sewer corporation, and the commission
shall give to the hearing and decision of such questions preference over
all other questions pending before it and decide the same as speedily as
possible. (RSMo 1939 § 5647, A. 1949 H.B. 2165, A.L. 1967 p. 578)

Prior revisions: 1929 § 5191; 1919 § 10479

(1960) A tax adjustment provision providing for apportionment of city
gross receipts tax to purchasers of steam service held to constitute a
"rule * * * or practice" relating to rates subject to approval of the
commission. State ex rel. Hotel Continental v. Burton (Mo.), 334 S.W.2d
75.

(1976) Rate increases are properly sought by utilities under the "file
and suspend" method and this is true whether or not current rates had
been set by the "file" method or fixed by order of the commission after a
hearing. State ex rel. Jackson County v. Public Service Commission (Mo.),
532 S.W.2d 20.

(1976) File and suspend method of seeking rate increase by utility did
not result in denial of due process of law or equal protection to utility
consumers. State ex rel. Jackson County v. Public Service Commission
(Mo.), 532 S.W.2d 20.

(1976) Public service commission has power in proper case to grant
interim rate increases, which power is implied in the "file and suspend"
provision of statute. State ex rel. Laclede Gas Co. v. Public Service
Commission (A.), 535 S.W.2d 561.



1. If, after hearing, the commission determines that any
electrical corporation should be allowed a total increase in revenue that
is primarily due to an unusually large increase in the corporation's rate
base, the commission, in its discretion, need not allow the full amount
of such increase to take effect at one time, but may instead phase in
such increase over a reasonable number of years. Any such phase-in shall
allow the electrical corporation to recover the revenue which would have
been allowed in the absence of a phase-in and shall make a just and
reasonable adjustment thereto to reflect the fact that recovery of a part
of such revenue is deferred to future years. In order to implement the
phase-in, the commission may, in its discretion, approve tariff schedules
which will take effect from time to time after the phase-in is initially
approved.

2. If, after hearing, the commission determines that an electrical
corporation, which is a wholly owned subsidiary of a public utility
holding company registered under the Public Utility Holding Company Act
of 1935, should be allowed an unusually large increase in total revenue
which is primarily due to an unusually large increase in expense
resulting from the Federal Energy Regulatory Commission regulation of
expenses related to a generating facility owned by another wholly owned
subsidiary of the same public utility holding company; then the
commission, in its discretion, need not allow the full amount of such
increase in total revenue to take effect at one time, but may instead
phase in such increase over a reasonable number of years. Any phase-in
authorized pursuant to this subsection shall allow the electrical
corporation to recover the revenue which would have been allowed in the
absence of a phase-in and shall make a just and reasonable adjustment
thereto to reflect the fact that recovery of a part of such revenue is
deferred to future years, including reasonable financing costs incurred
in connection therewith. In order to implement a phase-in authorized
pursuant to this subsection, the commission may, in its discretion,
approve tariff schedules which will take effect from time to time after
the phase-in is initially approved. (L. 1984 H.B. 1477, A.L. 1986 H.B.
1429)

Effective 5-1-86



1. The commission may appoint inspectors of gas and water
meters, whose duty it shall be, when required by the commission upon the
commission's own initiative or upon request of a corporation or person
furnishing, setting, or putting in use any gas or water meter, to
inspect, examine, prove and ascertain the accuracy of any gas and water
meters used or intended to be used for measuring or ascertaining the
quantity of gas for light, heat or power, or the quantity of water,
furnished by any person or corporation to or for the use of any person or
persons.

2. No corporation or person shall furnish, set or put in use any gas or
water meter which shall not have been inspected in accordance with rules
promulgated by the commission.

3. The commission may appoint inspectors of electric meters, whose duty
it shall be, when required by the commission upon the commission's own
initiative or upon request of a corporation or person furnishing,
setting, or putting in use any electric meter, to inspect, examine and
ascertain the accuracy of any and all electric meters used or intended to
be used for measuring and ascertaining the quantity of electric current
used for light, heat or power by any person or corporation to or for the
use of any person or corporation, and to inspect, examine and ascertain
the accuracy of all apparatus for testing and proving the accuracy of
electric meters. No corporation or person shall furnish, set or put in
use any electric meter the type of which shall not have been approved by
the commission.

4. Every gas corporation, electrical corporation or water corporation
shall provide, repair and maintain such suitable premises and apparatus
and facilities as may be required and approved by the commission for
testing and proving the accuracy of gas, water and electric meters
furnished for use by it, and by which apparatus every meter may be tested.

5. If any consumer to whom a meter has been furnished shall request the
commission in writing to inspect such meter, the commission shall have
the same inspected and tested; if the same upon being so tested shall be
found to be more than four percent if an electric meter, more than two
percent if a gas meter, or more than five percent if a water meter,
defective or incorrect to the prejudice of the consumer, the expense of
such inspection and test shall be borne by the corporation; if the same
on being so tested shall be found to be correct within the limits of
error prescribed by the provisions of this subsection, the expense of
such inspection and test shall be borne by the consumer.

6. The commission may prescribe such rules and regulations to carry into
effect the provisions of this section as it may deem necessary, and shall
fix uniform reasonable charges for the inspection and testing of meters
upon complaint. (RSMo 1939 § 5648, A.L. 1949 H.B. 2165, A.L. 1984 H.B.
1477)

Prior revisions: 1929 § 5192; 1919 § 10480



1. No gas corporation, electrical corporation, water corporation
or sewer corporation shall begin construction of a gas plant, electric
plant, water system or sewer system without first having obtained the
permission and approval of the commission.

2. No such corporation shall exercise any right or privilege under any
franchise hereafter granted, or under any franchise heretofore granted
but not heretofore actually exercised, or the exercise of which shall
have been suspended for more than one year, without first having obtained
the permission and approval of the commission. Before such certificate
shall be issued a certified copy of the charter of such corporation shall
be filed in the office of the commission, together with a verified
statement of the president and secretary of the corporation, showing that
it has received the required consent of the proper municipal authorities.

3. The commission shall have the power to grant the permission and
approval herein specified whenever it shall after due hearing determine
that such construction or such exercise of the right, privilege or
franchise is necessary or convenient for the public service. The
commission may by its order impose such condition or conditions as it may
deem reasonable and necessary. Unless exercised within a period of two
years from the grant thereof, authority conferred by such certificate of
convenience and necessity issued by the commission shall be null and
void. (RSMo 1939 § 5649, A.L. 1967 p. 578)

Prior revisions; 1929 § 5193; 1919 § 10481

(1960) Public utility corporation did not need to obtain an additional
certificate of convenience and necessity to construct an addition or
extension to its existing transmission lines and facilities within a
territory already allocated to it. State ex rel. Harline v. Public
Service Commission of Missouri (A.), 343 S.W.2d 177.

(1964) Commission's authority to grant water company's application for
authority to lay water mains generally throughout the county was
necessarily limited by the franchise obtained from the county which was
limited to the use of certain specified roads and highways. Public Water
Supply District No. 2 of Jackson County (Mo.), 379 S.W.2d 593.



1. Any entity authorized by law to engage in the business of
offering wastewater disposal or treatment services may apply to the
department of natural resources to be designated as the sole regional or
watershed supplier of such services.

2. The application to be designated as a regional or watershed supplier
shall be on a form as developed by the department and shall at a minimum
provide the following information:

(1) The region or watershed for which the applicant intends to provide
service defined on a meets and bounds basis;

(2) The documents such as contracts, articles of incorporation, limited
liability company forms or municipal ordinances which define the
applicant's existence, ownership and management;

(3) Information as to the applicant's financial assets including balance
sheet income statements for the previous five years or, if less than five
years, income statements for the applicant's entire history;

(4) A description of the facilities owned or operated by the applicant;

(5) A business plan describing how and why the proposed region or
watershed was selected and the applicant's plans for providing collection
and treatment services in the requested area;

(6) A commitment by the applicant to provide area coverage for the entire
area covered by the application and the applicant's plan for how to
provide such services;

(7) A description of the services to be provided by the applicant to the
region or watershed and the prices to be charged by the applicant;

(8) A description of the standards that the applicant will require of
other entities that will wish to connect with the applicant's collection
and treatment systems.

3. Once a regional or watershed provider of wastewater collection and
treatment is approved by the department, no other person or entity may
construct or operate collection or treatment facilities within the
designated region or watershed without an approved regional or watershed
plan, except those already existing persons or entities operating a
wastewater collection or treatment facility within the designated region
or watershed when the plan was approved.

4. The department of natural resources shall give preference to regional
or watershed providers in all of its licensing, permitting, and
administration of loan and grant funds functions.

5. In evaluating among competing applicants to be a regional or watershed
provider, the department shall give preference to those providers most
likely to provide a stable, long-term solution without regard to the type
of entity the applicant may be. Joint applications from existing
providers of wastewater collection and treatment services within the
region or watershed shall be given preference.

6. Pricing of services by regional or watershed providers shall be set by
such provider in the same manner the provider sets all other rates and
charges and shall be on a nondiscriminatory basis with each user bearing
its fair share of the costs of providing service to that user. Private
sewer companies shall charge such rates as are approved pursuant to
applicable law. (L. 1997 2d Ex. Sess. H.B. 1 § 1 merged with S.B. 3 § 1)

Effective 12-23-97



The power of gas corporations, electrical corporations, water
corporations, or sewer corporations to issue stocks, bonds, notes and
other evidences of indebtedness and to create liens upon their property
situated in this state is a special privilege, the right of supervision,
regulation, restriction and control of which is and shall continue to be
vested in the state, and such power shall be exercised as provided by law
and under such rules and regulations as the commission may prescribe.
(RSMo 1939 § 5650, A.L. 1967 p. 578)

Prior revisions: 1929 § 5194; 1919 § 10482



1. No gas corporation, electrical corporation, water corporation
or sewer corporation shall hereafter sell, assign, lease, transfer,
mortgage or otherwise dispose of or encumber the whole or any part of its
franchise, works or system, necessary or useful in the performance of its
duties to the public, nor by any means, direct or indirect, merge or
consolidate such works or system, or franchises, or any part thereof,
with any other corporation, person or public utility, without having
first secured from the commission an order authorizing it so to do. Every
such sale, assignment, lease, transfer, mortgage, disposition,
encumbrance, merger or consolidation made other than in accordance with
the order of the commission authorizing same shall be void. The
permission and approval of the commission to the exercise of a franchise
or permit under this chapter, or the sale, assignment, lease, transfer,
mortgage or other disposition or encumbrance of a franchise or permit
under this section shall not be construed to revive or validate any
lapsed or invalid franchise or permit, or to enlarge or add to the powers
or privileges contained in the grant of any franchise or permit, or to
waive any forfeiture. Any person seeking any order under this subsection
authorizing the sale, assignment, lease, transfer, merger, consolidation
or other disposition, direct or indirect, of any gas corporation,
electrical corporation, water corporation, or sewer corporation, shall,
at the time of application for any such order, file with the commission a
statement, in such form, manner and detail as the commission shall
require, as to what, if any, impact such sale, assignment, lease,
transfer, merger, consolidation, or other disposition will have on the
tax revenues of the political subdivisions in which any structures,
facilities or equipment of the corporations involved in such disposition
are located. The commission shall send a copy of all information obtained
by it as to what, if any, impact such sale, assignment, lease, transfer,
merger, consolidation or other disposition will have on the tax revenues
of various political subdivisions to the county clerk of each county in
which any portion of a political subdivision which will be affected by
such disposition is located. Nothing in this subsection contained shall
be construed to prevent the sale, assignment, lease or other disposition
by any corporation, person or public utility of a class designated in
this subsection of property which is not necessary or useful in the
performance of its duties to the public, and any sale of its property by
such corporation, person or public utility shall be conclusively presumed
to have been of property which is not useful or necessary in the
performance of its duties to the public, as to any purchaser of such
property in good faith for value.

2. No such corporation shall directly or indirectly acquire the stock or
bonds of any other corporation incorporated for, or engaged in, the same
or a similar business, or proposing to operate or operating under a
franchise from the same or any other municipality; neither shall any
street railroad corporation acquire the stock or bonds of any electrical
corporation, unless, in either case, authorized so to do by the
commission. Save where stock shall be transferred or held for the purpose
of collateral security, no stock corporation of any description, domestic
or foreign, other than a gas corporation, electrical corporation, water
corporation, sewer corporation or street railroad corporation, shall,
without the consent of the commission, purchase or acquire, take or hold,
more than ten percent of the total capital stock issued by any gas
corporation, electrical corporation, water corporation or sewer
corporation organized or existing under or by virtue of the laws of this
state, except that a corporation now lawfully holding a majority of the
capital stock of any gas corporation, electrical corporation, water
corporation or sewer corporation may, with the consent of the commission,
acquire and hold the remainder of the capital stock of such gas
corporation, electrical corporation, water corporation or sewer
corporation, or any portion thereof.

3. Nothing herein contained shall be construed to prevent the holding of
stock heretofore lawfully acquired, or to prevent upon the surrender or
exchange of said stock pursuant to a reorganization plan, the purchase,
acquisition, taking or holding of a proportionate amount of stock of any
new corporation organized to take over, at foreclosure or other sale, the
property of any corporation whose stock has been thus surrendered or
exchanged. Every contract, assignment, transfer or agreement for transfer
of any stock by or through any person or corporation to any corporation
in violation of any provision of this chapter shall be void and of no
effect, and no such transfer or assignment shall be made upon the books
of any such gas corporation, electrical corporation, water corporation or
sewer corporation or shall be recognized as effective for any purpose.
(RSMo 1939 § 5651, A.L. 1967 p. 578, A.L. 1984 H.B. 1477 § 393.190
subsecs. 1, 3, 4)

Prior revisions: 1929 § 5195; 1919 § 10483

(2001) Section is not preempted by the Securities and Exchange Act or the
Public Utility Holding Company Act and does not violate the dormant
Commerce Clause. Southern Union Co. v. Missouri Public Service
Commission, 138 F.Supp.2d 1201 (W.D.Mo.).

(2002) Requirement that regulated gas corporation obtain Commission
approval before purchasing stock of out-of-state utility companies, where
non-specific application for blanket approval of such purchases had been
denied, is not a per se violation of the Commerce Clause. Southern Union
v. Missouri Public Service Commission, 289 F.3d 503 (8th Cir.).



1. A gas corporation, electrical corporation, water corporation
or sewer corporation organized or existing or hereafter incorporated
under or by virtue of the laws of this state may issue stocks, bonds,
notes or other evidences of indebtedness payable at periods of more than
twelve months after the date thereof, when necessary for the acquisition
of property, the construction, completion, extension or improvement of
its plant or system, or for the improvement or maintenance of its service
or for the discharge or lawful refunding of its obligations or for the
reimbursement of moneys actually expended from income, or from any other
moneys in the treasury of the corporation not secured or obtained from
the issue of stocks, bonds, notes or other evidence of indebtedness of
such corporation, within five years next prior to the filing of an
application with the commission for the required authorization, for any
of the aforesaid purposes except maintenance of service and except
replacements in cases where the applicant shall have kept its accounts
and vouchers of such expenditure in such manner as to enable the
commission to ascertain the amount of money so expended and the purposes
for which such expenditure was made; provided, and not otherwise, that
there shall have been secured from the commission an order authorizing
such issue, and the amount thereof, and stating the purposes to which the
issue or proceeds thereof are to be applied, and that, in the opinion of
the commission, the money, property or labor to be procured or paid for
by the issue of such stock, bonds, notes or other evidence of
indebtedness is or has been reasonably required for the purposes
specified in the order, and that except as otherwise permitted in the
order in the case of bonds, notes and other evidence of indebtedness,
such purposes are not in whole or in part reasonably chargeable to
operating expenses or to income.

2. Nothing herein contained shall prohibit the commission from giving its
consent to the issue of bonds, notes or other evidence of indebtedness
for the reimbursement of moneys heretofore actually expended from income
for any of the aforesaid purposes, except maintenance of service or
replacements, prior to five years next preceding the filing of an
application therefor, by any sewer corporation, if in the judgment of the
commission such consent should be granted, provided application for such
consent shall be made prior to January 1, 1968. For the purpose of
enabling it to determine whether it should issue such an order, the
commission shall make such inquiry or investigation, hold such hearings
and examine such witnesses, books, papers, documents and contracts as it
may deem of importance in enabling it to reach a determination. Such
sewer corporation shall not without the consent of the commission apply
said issue or any proceeds thereof to any purpose not specified in such
order.

3. Such gas corporation, electrical corporation, water corporation or
sewer corporation may issue notes, for proper corporate purposes and not
in violation of any provision of this or any other law, payable at
periods of not more than twelve months without such consent; but no such
notes shall, in whole or in part, directly or indirectly, be refunded by
any issue of stock or bonds or by any evidence of indebtedness running
for more than twelve months without the consent of the commission;
provided, however, that the commission shall have no power to authorize
the capitalization of any franchise to be a corporation or to authorize
the capitalization of any franchise or the right to own, operate or enjoy
any franchise whatsoever in excess of the amount, exclusive of any tax or
annual charge, actually paid to the state or to any political subdivision
thereof as the consideration for the grant of such franchise or right.
Nor shall the capital stock of a corporation, formed by the merger or
consolidation of two or more other corporations, exceed the sum of the
capital stock of the corporations, so consolidated, at the par value
thereof, or such sum and any additional sum actually paid in cash; nor
shall any contract for consolidation or lease be capitalized in the stock
of any corporation whatsoever; nor shall any corporation hereafter issue
any bonds against or as a lien upon any contract for consolidation or
merger. (RSMo 1939 § 5652, A.L. 1967 p. 578)

Prior revisions: 1929 § 5196; 1919 § 10484



No gas corporation, electrical corporation, water corporation or
sewer corporation governed by this chapter shall issue any stock, bonds,
notes or other evidence of indebtedness, for money, property or services,
either directly or indirectly, nor shall it receive any money, property
or services in payment of the same, either directly or indirectly, until
there has been recorded upon the books of the corporation or person the
certificate of the commission herein provided for. No gas corporation,
electrical corporation, water corporation or sewer corporation governed
by this chapter shall declare any stock, bond or scrip dividend or divide
the proceeds of the sale of any stock, bond or scrip among its
stockholders unless authorized by the commission so to do. (RSMo 1939 §
5653, A.L. 1955 p. 577, A.L. 1967 p. 578)

Prior revisions: 1929 § 5197; 1919 § 10485



1. The commission shall have power to require gas corporations,
electrical corporations, water corporations and sewer corporations to
account for the disposition of the proceeds of all sales of stocks,
bonds, notes and other evidences of indebtedness in such form and detail
as it may deem advisable, and to establish such rules and regulations as
it may deem reasonable and necessary to insure the disposition of such
proceeds for the purpose or purposes specified in its order.

2. All stock, and every bond, note or other evidence of indebtedness of a
gas corporation, electrical corporation, water corporation or sewer
corporation issued without an order of the commission authorizing the
same then in effect shall be void, and likewise all stock, and every
bond, note or other evidence of indebtedness of a gas corporation,
electrical corporation, water corporation or sewer corporation, issued
with the authorization of the commission, but not conforming in its
provisions to the provisions, if any, which it is required by the order
of authorization of the commission to contain, shall be void; but no
failure in any other respect to comply with the terms or conditions of
the order of authorization of the commission shall render void any stock,
or any bond, note or other evidence of indebtedness, except as to a
corporation or person taking the same otherwise than in good faith and
for value and without actual notice.

3. Every gas corporation, electrical corporation, water corporation or
sewer corporation which, directly or indirectly, issues or causes to be
issued any stock or bond, note or other evidence of indebtedness, in
nonconformity with the order of the commission authorizing the same, or
contrary to the provisions of this chapter, or the constitution of this
state, or which applies the proceeds from the sale thereof, or any part
thereof, to any purpose other than the purpose or purposes specified in
the commission's order in excess of the amount in said order authorized
for the purpose, is subject to a penalty of not less than five hundred
dollars nor more than twenty thousand dollars for each offense.

4. Every officer, agent or employee of a gas corporation, electrical
corporation, water corporation, or sewer corporation, and every other
person who knowingly authorizes, directs, aids in, issues or executes, or
causes to be issued or executed, any stock or bond, note or other
evidence of indebtedness, in nonconformity with the order of the
commission authorizing the same, or contrary to the provisions of this
chapter, or to the constitution of this state, or who, in any proceeding
before the commission, knowingly makes any false statement or
representation or with knowledge of its falsity files or causes to be
filed with the commission any false statement or representation, which
said statement or representation so made, filed or caused to be filed may
tend in any way to influence the commission to make an order authorizing
an issue of stock, or any bond, note or other evidence of indebtedness,
or which results in the procuring from the commission the making of any
such order, or who, with knowledge that any false statement or
representation was made to the commission, in any proceeding, tending in
any way to influence the commission to make such an order, issues or
executes or negotiates, or causes to be issued, executed or negotiated
any such stock or bond, note or other evidence of indebtedness, or who,
directly or indirectly, knowingly applies, or causes or assists to be
applied the proceeds, or any part thereof, from the sale of any stock or
bond, note or other evidence of indebtedness, to any purpose not
specified in the commission's order, or to any purpose specified in the
commission's order, in excess of the amount authorized for such purpose,
or who, with knowledge that any stock or bond, note or other evidence of
indebtedness, has been issued or executed in violation of any of the
provisions of this chapter, negotiates, or causes the same to be
negotiated, shall be deemed guilty of a felony, and upon conviction shall
be punished by a fine of not less than one thousand dollars nor more than
five thousand dollars, or by imprisonment for not less than two years nor
more than five years, or by both such fine and imprisonment.

5. No provision of this chapter, and no deed or act done or performed
under or in connection therewith, shall be held or construed to obligate
the state of Missouri to pay or guarantee in any manner whatsoever, any
stock or bond, note or other evidence of indebtedness, authorized, issued
or executed under the provisions of this chapter.

6. All stocks and bonds, notes and other evidences of indebtedness issued
by any public utility after this law takes effect, upon the authority of
any articles of incorporation or amendments thereto or vote of the
stockholders or directors filed, taken or had, or other proceedings taken
or had, previous to the taking effect of this chapter, shall be void,
unless an order of the commission authorizing the issue of such stocks,
bonds, notes or other evidences of indebtedness shall have been obtained
from the commission prior to such issue. The commission may by its order
impose such condition or conditions as it may deem reasonable and
necessary.

7. Notwithstanding the other provisions of this section, the commission
can approve all issues of stock, bonds, notes or other evidence of
indebtedness of a gas corporation, electrical corporation, water
corporation, or sewer corporation, which were issued without prior
approval when it can be shown that the stocks, bonds, notes or other
evidence of indebtedness were issued for purposes authorized by section
393.200, and were issued in good faith without knowledge of the
requirement of obtaining prior approval. (RSMo 1939 § 5654, A.L. 1967 p.
578, A.L. 1980 H.B. 1618)



1. The commission shall have the power to ascertain the value of
the property of every gas corporation, electrical corporation, water
corporation and sewer corporation in this state and every fact which in
its judgment may or does have any bearing on such value. The commission
shall have power to make revaluations from time to time and to ascertain
all new construction, extensions and additions to the property of every
gas corporation, electrical corporation, water corporation, and sewer
corporation.

2. For the purpose of ascertaining the matters and things specified in
this section, concerning the value of the property of gas corporations,
electrical corporations, water corporations and sewer corporations, the
commission may cause a hearing or hearings to be held at such time or
times and place or places as the commission may designate. Before any
hearing is had the commission shall give the gas corporation, electrical
corporation, water corporation or sewer corporation affected thereby at
least thirty days' notice, specifying the time and place of such hearing,
and such notice shall be sufficient to authorize the commission to
inquire into the matters designated in this section, but this provision
shall not prevent the commission from making any preliminary examination
or investigation into the matters herein referred to, or from inquiring
into such matters in any other investigation or hearing. All gas
corporations, electrical corporations, water corporations and sewer
corporations affected shall be entitled to be heard and to introduce
evidence at such hearing or hearings. The commission is empowered to
resort to any other source of information available. The evidence
introduced at such hearings shall be reduced to writing and certified
under the seal of the commission. The commission shall make and file its
findings of fact in writing upon all matters concerning which evidence
shall have been introduced before it which in its judgment have bearing
on the value of the property of the gas corporation, electrical
corporation, water corporation or sewer corporation affected.

3. Such findings shall be subject to review by any circuit court of this
state in the same manner and within the same time as other orders and
decisions of the commission. The findings of the commission so made and
filed, when properly certified under the seal of the commission, shall be
admissible in evidence in any action, proceeding or hearing before the
commission or any court, in which the commission, the state or an
officer, department or institution thereof, or any county, city or
municipality or other body politic and the gas corporation, electrical
corporation, water corporation or sewer corporation affected may be
interested whether arising under the provisions of this chapter or
otherwise, and such findings, when so introduced, shall be conclusive
evidence of the facts therein stated as of the date therein stated under
conditions then existing, and such facts can only be controverted by
showing a subsequent change in conditions bearing upon the facts therein
determined.

4. The commission may from time to time cause further hearings and
investigations to be had for the purpose of making revaluations or
ascertaining the value of any betterments, improvements, additions or
extensions made by any gas corporation, electrical corporation, water
corporation or sewer corporation subsequent to any prior hearing or
investigation, and may examine into all matters which may change, modify
or affect any finding of fact previously made, and may at such time make
findings of fact supplementary to those theretofore made. Such hearings
shall be had upon the same notice and be conducted in the same manner,
and the findings so made shall have the same force and effect as is
provided herein for such original notice, hearing and findings; provided,
that such findings made at such supplemental hearings or investigations
shall be considered in connection with and as a part of the original
findings except insofar as such supplemental findings shall change or
modify the findings made at the original hearing or investigation. (RSMo
1939 § 5655, A.L. 1967 p. 578)

Prior revisions: 1929 § 5199; 1919 § 10487



1. The commission shall have power, after hearing, to require
any or all gas corporations, electrical corporations, water corporations
and sewer corporations to carry a proper and adequate depreciation
account in accordance with such rules, regulations and forms of account
as the commission may prescribe.

2. The commission may, from time to time, ascertain and determine and by
order fix the proper and adequate rates of depreciation of the several
classes of property of such corporation, person or public utility. Each
gas corporation, electrical corporation, water corporation and sewer
corporation shall conform its depreciation accounts to the rates so
ascertained, determined and fixed, and shall set aside the moneys so
provided for out of earnings and carry the same in a depreciation fund
and expend such fund only for such purposes and under such rules and
regulations, both as to original expenditure and subsequent replacement,
as the commission may prescribe. The income from investments of moneys in
such fund shall likewise be carried in such fund. (RSMo 1939 § 5656, A.L.
1967 p. 578)

Prior revisions: 1929 § 5200; 1919 § 10488



1. Reorganizations of gas corporations, electrical corporations,
water corporations and sewer corporations shall be subject to the
supervision and control of the commission, and no such reorganization
shall be had without the authorization of the commission.

2. Upon all such reorganizations the amount of capitalization, including
therein all stocks and bonds and other evidence of indebtedness, shall be
such as is authorized by the commission, which in making its
determinations, shall not exceed the fair value of the property involved,
taking into consideration its original cost of construction, duplication
cost, present condition, earning power at reasonable rates and all other
relevant matters and any additional sum or sums as shall be actually paid
in cash; provided, however, that the commission may make due allowance
for the discount of bonds.

3. Any reorganization agreement before it becomes effective shall be
amended so that the amount of capitalization shall conform to the amount
authorized by the commission. The commission may by its order impose such
condition or conditions as it may deem reasonable and necessary. (RSMo
1939 § 5657, A.L. 1967 p. 578)

Prior revisions; 1929 § 5201; 1919 § 10489



1. Upon the complaint in writing of the mayor or the president
or chairman of the board of aldermen, or a majority of the council,
commission or other legislative body of any city, town, village or county
within which the alleged violation occurred, or by not less than
twenty-five consumers or purchasers, or prospective consumers or
purchasers of such gas, electricity, water or sewer *, as to the
illuminating power, purity, pressure or price of gas, the efficiency of
the electric incandescent lamp supply, the voltage of the current
supplied for light, heat or power, or price of electricity sold and
delivered in such municipality, or the purity, pressure or price of water
or the adequacy, sanitation or price of sewer service, the commission
shall investigate as to the cause of such complaint.

2. When such complaint is made, the commission may, by its agents,
examiners and inspectors, inspect the works, system, plant, devices,
appliances and methods used by such person or corporation in
manufacturing, transmitting and supplying such gas, electricity or water
or furnishing said sewer service, and may examine or cause to be examined
the books and papers of such person or corporation pertaining to the
manufacture, sale, transmitting and supplying of such gas, electricity or
water or furnishing of such sewer service.

3. The form and contents of complaints made as provided in this section
shall be prescribed by the commission. Such complaints shall be signed by
the officers, or by the customers, purchasers or subscribers making them,
who must add to their signatures their places of residence, by street and
number, if any. (RSMo 1939 § 5658, A.L. 1967 p. 578)

Prior revisions: 1929 § 5202; 1919 § 10490

*Apparently the word "service" was inadvertently omitted from original
rolls.

(1964) A telephone utility could not annex additional territory to its
certificated service area by the simple act of filing a map of the area
and order of public service commission requiring another telephone
company whose existing lines were closer to the unserved area to extend
service into the area was based on competent and substantial evidence and
was not in excess of its statutory power. State ex rel. Doniphan
Telephone Co. v. Public Service Commission (A.), 377 S.W.2d 469.

(1976) File and suspend method of seeking rate increase by utility did
not result in denial of due process of law or equal protection to utility
consumers. State ex rel. Jackson County v. Public Service Commission
(Mo.), 532 S.W.2d 20.

(1976) Sections 386.390 and 393.260 specifically enumerate the parties
qualified to file a complaint as to the reasonableness of a utility's
rates and charges, and utilities are not among them, and section 386.400
gives utilities the right to file complaints only on matters other than
as to reasonableness of their rates. State ex rel. Jackson County v.
Public Service Commission (Mo.), 532 S.W.2d 20.



1. Before proceeding under a complaint presented as provided in
sections 393.110 to 393.285, the commission shall cause notice of such
complaint, and the purpose thereof, to be served upon the person or
corporation affected thereby. Such person or corporation shall have an
opportunity to be heard in respect to the matters complained of at a time
and place to be specified in such notice. An investigation may be
instituted by the commission as to any matter of which complaint may be
made as provided in sections 393.110 to 393.285, or to enable it to
ascertain the facts requisite to the exercise of any power conferred upon
it.

2. After a hearing and after such investigation as shall have been made
by the commission or its officers, agents, examiners or inspectors, the
commission within lawful limits may, by order, fix the maximum price of
gas, electricity, water or sewer service not exceeding that fixed by
statute to be charged by such corporation or person, for the service to
be furnished; and may order such improvement in the manufacture,
distribution or supply of gas, in the manufacture, transmission or supply
of electricity, in the distribution or supply of water, in the
collection, carriage, treatment and disposal of sewage, or in the methods
employed by such persons or corporation as will in its judgment be
adequate, just and reasonable.

3. The price fixed by the commission under sections 393.110 to 393.285
shall be the maximum price to be charged by such corporation or person
for gas, electricity or water * for the service to be furnished within
the territory and for a period to be fixed by the commission in the
order, not exceeding three years, except in the case of a sliding scale,
and thereafter until the commission shall, upon its own motion or upon
the complaint of any corporation or person interested, fix a higher or
lower maximum price of gas, electricity, water or sewer service to be
thereafter charged.

4. In determining the price to be charged for gas, electricity, or water
the commission may consider all facts which in its judgment have any
bearing upon a proper determination of the question although not set
forth in the complaint and not within the allegations contained therein,
with due regard, among other things, to a reasonable average return upon
capital actually expended and to the necessity of making reservations out
of income for surplus and contingencies.

5. In determining the price to be charged for sewer service the
commission may consider all facts which in its judgment have any bearing
upon a proper determination of the question although not set forth in the
complaint and not within the allegations contained therein, with due
regard, among other things, to a reasonable average return upon the value
of the property actually used in the public service and to the necessity
of making reservations out of income for surplus and contingencies. (RSMo
1939 § 5659, A. 1949 H.B. 2165, A.L. 1967 p. 578)

Prior revisions: 1929 § 5203; 1919 § 10491

*Apparently reference to "sewer service" was omitted from original rolls.

(1975) Held that the value of property given to a sewer company by
customers and users should be deducted from the value of the property
used in the public service in making a rate determination. State ex rel.
Valley Sewage Co. v. Public Service Commission (A.), 515 S.W.2d 845.

(1976) Fact that commission had declared a two-year moratorium on further
rate increases by utility did not prevent commission from changing or
abrogating that order and rate increase was properly sought by utility
under the "file and suspend" method. State ex rel. Jackson County v.
Public Service Commission (Mo.), 532 S.W.2d 20.

(1976) Sections 386.390 and 393.260 specifically enumerate the parties
qualified to file a complaint as to the reasonableness of a utility's
rates and charges, and utilities are not among them, and section 386.400
gives utilities the right to file complaints only on matters other than
as to reasonableness of their rates. State ex rel. Jackson County v.
Public Service Commission (Mo.), 532 S.W.2d 20.



1. The commission shall notify the governing body of each city
or county imposing a business license tax pursuant to section 66.300,
92.045, 94.110, 94.270 or 94.360, RSMo, or a similar tax adopted pursuant
to charter provisions in any constitutional charter city with a
population of at least three hundred fifty thousand inhabitants which is
located in more than one county, on gross receipts of any gas
corporation, electric corporation, water corporation or sewer corporation
of any tariff increases authorized for such firm doing business in that
city or county if the approved increase exceeds seven percent. The
commission shall include with such notice to any city or county the
percentage increase approved for the utility, together with an estimate
of the annual increase in gross receipts resulting from the tariff
increase on customers residing in that city or county. The provisions of
this subsection shall not apply to rate adjustments in the purchase price
of natural gas which are approved by the commission.

2. The governing body of each city or county notified of a tariff
increase as provided in subsection 1 of this section shall reduce the tax
rate of its business license tax on the gross receipts of utility
corporations. Within sixty days of the effective date of the tariff
increase, the tax rate shall be reduced to the extent necessary so that
revenue for the ensuing twelve months will be approximately equal to the
revenue received during the preceding twelve months plus a growth factor.
The growth factor shall be equal to the average of the additional revenue
received in each of the preceding three years. However, a city or county
may maintain the tax rate of its business license tax on the gross
receipts of utility corporations without reduction if an ordinance to
maintain the tax rate is enacted by the governing body of the city or an
order to maintain the tax rate is issued by the governing body of the
county after September 28, 1985. The provisions of this subsection shall
not apply to rate adjustments in the purchase price of natural gas which
are approved by the commission. (L. 1984 H.B. 1477 § 393.190 subsec. 2, §
2, A.L. 1985 H.B. 200, A.L. 1993 H.B. 453)



If it be alleged and established in an action brought in any
court for the collection of any charge for gas, electricity, water or
sewer service that a price has been demanded in excess of that fixed by
the commission or by statute, in the municipality wherein the action
arose, no recovery shall be had therein, but the fact that such excessive
charges have been made shall be a complete defense to such action. (RSMo
1939 § 5662, A.L. 1967 p. 578)

Prior revisions: 1929 § 5206; 1919 § 10494



All provisions of chapters 386, 387, 390, 392 and 393, RSMo, in
reference to railroad corporations, street railroad corporations, common
carriers, gas corporations, electrical corporations, water corporations,
telephone and telegraph corporations, and sewer corporations, in
reference to hearings, summoning witnesses, taking of testimony, reports,
approval of incorporation and certificates of franchises, the approval of
issues of stocks, bonds, notes and other evidence of indebtedness,
consolidation, lease, transfer of franchises, valuation of property,
grants and franchises, keeping of accounts, complaints as to quality,
price, facilities furnished, the fixing of just and reasonable rates and
adequacy of service, forfeitures of all descriptions, forfeitures for
noncompliance with the orders, summary proceedings under chapters 386,
387, 390, 392 and 393, RSMo, excessive charges for product, service or
facilities, proceedings before the commission, and proceedings in any
court mentioned in chapters 386, 387, 390, 392 and 393, RSMo, and in all
other sections, paragraphs, provisions and parts of chapters 386, 387,
390, 392 and 393, RSMo, in reference to any other corporations subject to
any of the provisions of chapters 386, 387, 390, 392 and 393, RSMo, so
far as the same shall be practically, legally or necessarily applicable
to heating companies in this state, are hereby made applicable to such
heating companies as designated in said chapters, and shall have full
application thereto. (RSMo 1939 § 5684, A.L. 1967 p. 578)

Prior revisions; 1929 § 5228; 1919 § 10516



A steam heating company having fewer than one hundred customers
in this state may file under a small company rate procedure promulgated
by the commission which shall be consistent with 4 CSR 240- 3.240 by
giving notice to the secretary of the commission, the public counsel,
each customer, and each gas corporation or electric corporation providing
utility service in the area. Any customer, gas corporation, or electric
corporation responding within thirty days of the date of the notice shall
be entitled to copies of all filings subsequently made in the case and
may participate in any conferences or hearings therein. (L. 2003 H.B. 208
&1)



Notwithstanding any other provision of law to the contrary, the
public service commission shall have the power, pursuant to regulations,
to review and authorize changes to the rates and charges contained in the
schedules of an electric corporation as a result of a change in the level
or annual accrual of funding necessary for its nuclear power plant
decommissioning trust fund only after a full hearing and after
considering all facts relevant to such funding level or accrual rate. The
commission shall also have the authority to adopt regulations to govern
the procedure for submission, examination, hearing and approval of such
tariff changes and to ensure that the amounts collected from ratepayers
and paid into such trust funds will be neither greater nor lesser than
the amounts necessary to carry out the purposes of the trusts. (L. 1989
H.B. 609 § 1)



1. It is the intent of the general assembly through the passage
of this act*:

(1) To maintain a fair and equitable tax structure and to preserve the
local tax base by requiring all persons who provide electricity or gas
service to pay an equitable share; and

(2) To equalize the amount of business taxes, franchise fees and payments
in lieu of taxes on competing suppliers of electricity and gas service.

(3) To restore to political subdivisions revenue sources that existed
prior to any previously implemented gas industry restructuring.

(4) To remove disparities in the liability of natural gas suppliers for
business taxes, franchise fees, and payments in lieu of taxes, which
disparities have arisen as a result of any previously implemented gas
industry restructuring.

2. Political subdivisions provide police, fire and public health
services, including the inspection of gas and electric equipment and
other facilities used in the consumption of gas and electricity.
Political subdivisions impose license taxes, franchise fees and sales
taxes on providers of electricity and gas services, and require payments
in lieu of taxes from publicly owned utilities in order to pay for these
and other services related to the transportation, use and consumption of
electricity and gas services and for the general operation of government.

3. Missouri has historically restricted competition with respect to
electricity and gas services by authorizing the Missouri public service
commission to limit the number of providers and has allowed political
subdivisions to require franchises for these services. Persons entering
the gas and electric markets within Missouri receive substantial revenues
from consumers in Missouri, thereby creating a purposeful economic
presence in this state. In addition, these persons may also cause
electricity and gas to be transported over rights-of-way and utility
easements and may use electric lines or gas lines which are owned,
controlled and maintained by other public and private entities in this
state. Unless all participants in the electricity and gas markets pay
comparable taxes and fees, there will be significant tax and franchise
fee revenue losses by political subdivisions and unfair competitive
disparities among such participants.

4. The legislature finds that electricity and gas are essential, but
potentially dangerous, commodities in modern society. The electricity
transmission and distribution system is an interconnected and
interdependent grid. Therefore, the legislature finds that it is in the
interest of public health and safety to require registration of all
sellers of electricity and gas for use or consumption within Missouri.

5. It is not the intent of this act* to regulate the transportation of
natural gas, methane, or propane in interstate commerce to the extent
that such regulation is preempted by the Constitution of the United
States. (L. 1998 S.B. 627)

Effective 7-10-98

*"This act" (S.B. 627, 1998) contains numerous sections. Consult
Disposition of Sections table for definitive listing.



As used in this section and sections 393.299, 393.301 and
393.302, the following terms mean:

(1) "Commission", the Missouri public service commission;

(2) "Distribution system", the physical plant used to provide energy
services including facilities, structures, wires and appurtenances
thereto;

(3) "Distributor", an electrical or gas corporation as defined by section
386.020, RSMo, which is authorized by the commission under this chapter,
to provide or distribute energy services;

(4) "Energy services", the retail sale of electricity or natural gas,
propane or methane to customers or consumers and all associated services
that are necessary for their delivery through a distribution system
including but not limited to the generation, production, transmission,
distribution, billing and metering of such services;

(5) "Gross receipts", all revenues from energy services which are subject
to a business license tax of a political subdivision or a franchise
agreement between a distributor and a political subdivision or a PILOT;

(6) "Person", includes any individual, firm, cooperative, copartnership,
joint venture, association, corporation, municipal or private, and
whether organized for profit or not, state, county, political
subdivision, state department, commission, board, bureau or agency, or
any other group or combination acting as a unit, and the plural as well
as the singular number;

(7) "PILOT", the payment or transfer of funds or services by a gas or
electric utility owned by a political subdivision and used to provide
government services by the political subdivision including the value of
free or subsidized services, provided the value of these services are
stated annually in an ordinance as a percentage of the total gross
receipts of the gas or electric system;

(8) "Political subdivision", any county, municipality or village in the
state of Missouri;

(9) "Proportionate share", the seller's gross receipts multiplied by the
franchise fee rate, specified in a franchise agreement between a
distributor and a political subdivision or the PILOT rate as provided in
any ordinance or order of the political subdivision for the corresponding
use of rights-of-way, utility easements or the distribution system of a
political subdivision;

(10) "Seller", any person who uses, leases or controls the distribution
system of a distributor or a political subdivision or any part thereof to
sell energy services at retail within the political subdivision other
than a distributor or a political subdivision which uses its own
distribution system. (L. 1998 S.B. 627)

Effective 7-10-98



1. No person, other than a distributor or a political
subdivision operating within its territorial limits, shall provide energy
services in a political subdivision which has business license taxes in
effect pursuant to section 66.300, RSMo, section 71.610, RSMo, section
92.045, RSMo, section 94.110 or 94.360, RSMo, on persons who sell energy
services unless the person is certified by the commission as a seller and
files its agreement with the commission to pay to the political
subdivision all applicable business license taxes. All retail sales of
energy shall be made by a distributor, seller or a political subdivision
operating within its territorial limits. No distributor or political
subdivision shall provide energy services to any person on behalf of any
seller unless the seller has been certified as a seller and filed its
agreement with the commission to pay all applicable business license
taxes and the commission has furnished such distributor or political
subdivision with evidence of such certification.

2. No person shall provide energy services in a political subdivision if
a franchise agreement is in effect between a distributor and a political
subdivision with respect to energy services, or if the political
subdivision owns the distribution system, unless (1) that person enters
into an agreement with the political subdivision to pay its proportionate
share of the franchise fee or the PILOT, which agreement shall be
supplied to the distributor, or (2) the person obtains certification from
the commission as a seller and files its agreement to pay the seller's
proportionate share of any franchise fee or PILOT. No distributor or
political subdivision shall provide energy services to any person on
behalf of any seller if a franchise agreement is in effect between a
distributor and a political subdivision for energy services, or if the
political subdivision owns the distribution system, unless (1) that
seller has entered into an agreement with the political subdivision to
pay the seller's proportionate share of the franchise fee or the PILOT,
or (2) the seller has obtained certification from the commission as a
seller and files its agreement to pay the seller's proportionate share of
any franchise fee or PILOT.

3. An agreement described in subsections 1 and 2 of this section shall
expressly state that the seller waives (1) its right to challenge the
validity of the agreement and (2) its right to the refund of amounts paid
pursuant to the agreement. Any person who otherwise has standing may
challenge the validity of this section without signing such agreement by
filing an action for a declaratory judgment in circuit court in the
county in which the political subdivision is located. The agreement filed
with the commission under subsections 1 and 2 of this section shall be
limited solely to the requirements of this subsection and the seller's
agreement to pay its taxes, its proportionate share of franchise fees or
PILOT's and provisions which require the seller to make available to the
political subdivision or the commission its records, including the right
to audit.

4. The commission shall establish procedures for certification pursuant
to chapter 536, RSMo.

5. Nothing in this section shall be construed to give any seller the
right to use the rights-of-way, utility easements or the distribution
system of any distributor or political subdivision for any purpose other
than to provide energy services to the seller's retail customers.

6. Any agreement described in subsection 1 or 2 of this section shall
cease to be effective upon the failure of the seller to fulfill any
material obligation under the agreement. The appropriate political
subdivision shall notify the commission of any failure to pay any amount
required by any agreement described in subsection 1 or 2 of this section.
Upon such notification, the commission shall immediately notify the
seller which shall cease to provide energy services unless it requests a
hearing with the commission within fifteen days of the date the notice is
filed with the commission. Upon receiving notice from the seller
requesting a hearing, the commission shall conduct a hearing to determine
whether all material obligations under an agreement have been satisfied.
If the commission determines that material obligations have not been
satisfied, it shall notify the distributor, and the seller shall
thereafter be prohibited from providing energy services from the date set
forth in the notice, which shall not be less than thirty days after the
commission makes its determination. The distributor shall not provide
energy services to the seller if the distributor does not request a
hearing after being notified of its material fault or if the commission
determines that the seller has failed to satisfy a material obligation of
the agreement and thirty days have expired from the date of the
commission notification of a breach of a material obligation of any
agreement authorized by subsection 1 or 2 of this section.

7. A seller shall be required to pay a political subdivision at a rate
equal to but not greater than the rate paid by a distributor for business
license taxes, franchise fees or PILOT's as provided for in an ordinance
or order of the political subdivision or in a franchise agreement.

8. This section shall not be construed as conferring any rights on any
seller to provide energy services within a political subdivision in the
state of Missouri. No seller may provide energy services unless it does
so in accordance with all applicable laws and in accordance with the
applicable rules of the commission. Any seller of natural gas shall file
its agreement with the commission within thirty days from the passage of
this section.

9. Any person liable for the tax under this section, upon proof that such
person has paid a tax in another state or political subdivision with
respect to a charge for the sale or transfer of such gas, electricity or
energy services, shall be allowed a credit against the tax authorized by
this section, to the extent of the amount of the tax legally due and paid
in the other state or political subdivision with respect to such charge.

10. Notwithstanding the provisions of section 1.140, RSMo, to the
contrary, the provisions of this section shall be nonseverable, and if
any provision is for any reason held to be invalid, such decision shall
invalidate all of the remaining provisions of this section. (L. 1998 S.B.
627 §§ 393.299, 393.300)

Effective 7-10-98



1. Any provider of telephone, sewer, water, electric or gas
utility service, whether public or private, shall, upon the request of a
customer of such provider, provide the customer's bills in Braille or no
less than twenty-four point bold-faced type print or both.

2. This section shall become effective on August 28, 1999. (L. 1998 H.B.
1088 § 393.300, § A)

Effective 8-28-99



1. In the event that any legal action to challenge the validity
of any agreement made pursuant to subsection 1 or 2 of section 393.299 is
filed in any court of competent jurisdiction, the party initiating that
action shall immediately furnish a certified copy of the initial pleading
to the commission, which act shall be deemed to suspend the provisions of
such agreement pending a final and nonappealable judgment or disposition
of such action. Upon receipt of the notification, the commission shall
immediately notify each affected political subdivision and person
providing energy services of the suspension of those agreements. No
seller or distributor shall provide energy services after it receives
notice from the commission that the seller's agreements have been
suspended pursuant to subsection 1 or 2 of section 393.299.

2. In the event that the provisions of section 393.299 are declared to be
void or invalid by final judgment of a court of competent jurisdiction,
no energy services shall be permitted except upon a finding of public
convenience and necessity and compliance with all provisions of this
chapter, regulations adopted pursuant to this chapter, and commission
orders. No refund of any tax or fee shall be made to any seller that
signs an agreement waiving its right to challenge the validity of section
393.299. (L. 1998 S.B. 627)

Effective 7-10-98



Notwithstanding the provisions of section 393.299, a political
subdivision may by ordinance impose a tax upon persons who use or consume
gas, electricity or energy services within such political subdivision but
who take title to such gas, electricity or energy services outside of
that political subdivision. Any person liable for the tax under this
section, upon proof that such person has paid a tax in another state or
political subdivision with respect to a charge for the sale or transfer
of such gas, electricity or energy services, shall be allowed a credit
against the tax authorized by this section, to the extent of the amount
of the tax legally due and paid in the other state or political
subdivision with respect to such charge. The tax shall be measured by all
charges for gas, electricity or energy services by the person using or
consuming the gas, electricity or energy services at a rate equal to the
rate of the applicable business license tax, as authorized in section
66.300, RSMo, section 71.610, RSMo, section 92.045, RSMo, section 94.110
or 94.360, RSMo, or the applicable franchise fee. Such tax shall not
become effective unless the governing body of the political subdivision
submits to the voters of that political subdivision at any public
election allowed pursuant to subsection 1 of section 115.123, RSMo, a
proposal to impose a tax under the provisions of this section. The
question shall be submitted to the voters in substantially the following
form:

Shall the ................ (political subdivision) levy a tax for the
purpose of equalizing the obligations of all users of gas, electricity or
energy services of a percent which is equal to the obligations of current
taxpayers on the purchase price of gas, electricity or energy services
sold by any person, corporation or other business entity for ultimate use
in the political subdivision but not subject to the current tax?

[ ] YES [ ] NO

If a majority of the votes cast on the question by the qualified voters
voting thereon are in favor of the question, then the tax shall become
effective on the first day of the first calendar quarter following the
calendar quarter in which the election was held. If a majority of the
votes cast on the question by the qualified voters voting thereon are
opposed to the question, then the governing body of the political
subdivision shall have no power to impose the tax authorized by this
section unless and until the governing body of the political subdivision
again submits the question to the qualified voters of the political
subdivision and such question is approved by a majority of the qualified
voters voting on the question. (L. 1998 S.B. 627)

Effective 7-10-98



1. This section shall only apply to gas corporations as defined
in section 386.020, RSMo. This section shall not affect any existing laws
and shall only apply to the program established pursuant to this section.

2. As used in this section, the following terms mean:

(1) "Aggregate", the combination of natural gas supply and transportation
services, including storage, requirements of eligible school entities
served through a Missouri gas corporation's delivery system;

(2) "Commission", the Missouri public service commission; and

(3) "Eligible school entity" shall include any seven-director, urban or
metropolitan school district as defined pursuant to section 160.011,
RSMo, and shall also include, one year after July 11, 2002, and
thereafter, any school for elementary or secondary education situated in
this state, whether a charter, private, or parochial school or school
district.

3. Each Missouri gas corporation shall file with the commission, by
August 1, 2002, a set of experimental tariffs applicable the first year
to public school districts and applicable to all school districts,
whether charter, private, public, or parochial, thereafter.

4. The tariffs required pursuant to subsection 3 of this section shall,
at a minimum:

(1) Provide for the aggregate purchasing of natural gas supplies and
pipeline transportation services on behalf of eligible school entities in
accordance with aggregate purchasing contracts negotiated by and through
a not-for-profit school association;

(2) Provide for the resale of such natural gas supplies, including
related transportation service costs, to the eligible school entities at
the gas corporation's cost of purchasing of such gas supplies and
transportation, plus all applicable distribution costs, plus an
aggregation and balancing fee to be determined by the commission, not to
exceed four-tenths of one cent per therm delivered during the first year;
and

(3) Not require telemetry or special metering, except for individual
school meters over one hundred thousand therms annually.

5. The commission may suspend the tariff as required pursuant to
subsection 3 of this section for a period ending no later than November
1, 2002, and shall approve such tariffs upon finding that implementation
of the aggregation program set forth in such tariffs will not have any
negative financial impact on the gas corporation, its other customers or
local taxing authorities, and that the aggregation charge is sufficient
to generate revenue at least equal to all incremental costs caused by the
experimental aggregation program. Except as may be mutually agreed by the
gas corporation and eligible school entities and approved by the
commission, such tariffs shall not require eligible school entities to be
responsible for pipeline capacity charges for longer than is required by
the gas corporation's tariff for large industrial or commercial basic
transportation customers.

6. The commission shall treat the gas corporation's pipeline capacity
costs for associated eligible school entities in the same manner as for
large industrial or commercial basic transportation customers, which
shall not be considered a negative financial impact on the gas
corporation, its other customers, or local taxing authorities, and the
commission may adopt by order such other procedures not inconsistent with
this section which the commission determines are reasonable or necessary
to administer the experimental program.

7. This section shall terminate June 30, 2007.

8. Tariffs in effect as of August 28, 2004, shall be extended until the
termination date set in subsection 7 of this section. (L. 2002 H.B. 1402,
A.L. 2003 H.B. 208 merged with S.B. 686, A.L. 2004 S.B. 878 merged with
S.B. 968 and S.B. 969)

Expires 6-30-07



As used in sections 393.410 to 393.510:

(1) "Gas" means manufactured or natural gas or any combination or mixture
thereof, whether or not the natural gas has been processed by removal of
component parts not essential to its use for light, heat, or power;

(2) "Gas storage company" means any corporation, partnership or person,
or its trustees or receivers appointed by any court whatsoever, including
any municipal corporation, any gas corporation as defined by section
386.020, RSMo, and any corporation engaged in the transportation of
natural gas in interstate commerce or the sale in interstate commerce of
such gas for resale, engaged in or which desires to engage in the
business of the underground storage of gas intended in whole or in part
for either direct or ultimate distribution to the public by means of
pipes or pipelines;

(3) "Underground storage" or "underground storage of gas" means the
storing of gas in a geological stratum or strata, formation or formations
lying beneath the surface of the earth;

(4) "Underground storage reservoir" means the stratum or strata,
formation or formations which are, or are to be, used for underground
storage of gas. (L. 1953 p. 513 § 1)



In any case where a part of an underground storage reservoir
lies in or beneath lands (including the beds of navigable waters) of any
public body, a gas storage company desiring to utilize the same for the
underground storage of gas may acquire the right to do so, which right
every such public body is hereby authorized to grant for such
consideration as may be agreed upon with such gas storage company. In the
event such gas storage company and such public body cannot agree upon
such consideration, or in case there is no public authority other than
the general assembly which has power to enter into such an agreement,
then such gas storage company may acquire the right to utilize such part
of such underground storage reservoir, but not, in such case, the surface
of the lands under which such part of such reservoir lies, for the
underground storage of gas, by proceeding in the same manner and with the
same effect as in cases of condemnation under section 393.430, subject to
the limitations and provisions in such cases provided, and in any such
case to which the state of Missouri shall be made a party service of
process may be had upon the attorney general. The term "public body" as
used in this section means the state of Missouri, or any department,
board, commission, bureau, institution, public agency or political
subdivision thereof including municipal corporations and quasi-municipal
corporations of all kinds. (L. 1953 p. 513 § 3)



Subject to the limitations and provisions provided in sections
393.410 to 393.510, any gas storage company may acquire by condemnation
land or interests in land, necessary or convenient to its operations as a
gas storage company, including, but without limiting the generality of
the foregoing, the following operations, to wit: Such operations,
including the drilling of test holes or wells, as may be necessary or
convenient to determine the suitability of a geological stratum or
strata, formation or formations for the underground storage of gas (and
for this purpose temporary licenses may be acquired by condemnation
hereunder); the laying, operation and maintenance of pipes and pipelines
necessary or convenient for the transportation of gas to the place of
underground storage from the source of such gas; the preparation,
establishment, maintenance, utilization and operation of the underground
storage reservoir for the underground storage of gas and the injection of
gas into such underground storage reservoir and the withdrawal thereof
therefrom; the laying, operation and maintenance of pipes and pipelines
necessary or convenient for the transportation of gas from the place of
underground storage to any other place; the installation, operation and
maintenance of any and all facilities and equipment necessary or
convenient in connection with any of the foregoing operations. Any gas
storage company desiring to acquire by condemnation land or any interest
therein, or a temporary license pursuant to this section, may to that end
proceed as provided by, and subject to, the provisions of chapter 523,
RSMo, the provisions of which chapter are hereby made applicable in such
case, but subject, further, to the limitations and provisions provided in
sections 393.410 to 393.510. (L. 1953 p. 513 § 4)

(1956) In action to condemn lands for gas storage under §§ 393.410 to
393.510, owners of lands adjoining those sought to be condemned did not
have right to intervene because only damage they could suffer would
result from use of condemned lands and not from condemnation. Laclede Gas
Co. v. Abrahamson (Mo.), 296 S.W.2d 100.



None of the following rights, to wit:

(1) The right to condemn any stratum or formation for the purpose of
utilization thereof for the underground storage of gas, or

(2) The right to proceed as in cases of condemnation provided for by
section 393.420, or

(3) The right to acquire by condemnation temporary licenses pursuant to
section 393.430 may be exercised by any gas storage company unless such
company shall have first obtained an order from the public service
commission finding that the exercise of such rights by such company will
be in the public interest. Such order shall be made after hearing, and
shall be effective, and subject to application for rehearing and to
judicial review, as in the case of other orders of the public service
commission. (L. 1953 p. 513 § 10)

(1956) Evidence held to justify authorization of condemnation proceeding
by public service commission. Collins v. Pub. Serv. Comm., 365 Mo. 1086,
293 S.W.2d 345.



No gas storage company shall, by virtue of sections 393.410 to
393.510, be authorized to enter, appropriate or condemn any dwelling,
barn, store, warehouse or other building. (L. 1953 p. 513 § 7)



No stratum or formation lying less than five hundred feet below
the surface, and no stratum or formation containing potable water
conforming to the mineral content standards of the United States Public
Health Service, and no stratum or formation containing natural gas or oil
producible through primary production methods in commercially paying
quantities or producing domestic supplies of natural gas or oil, and no
stratum or formation containing coal or the ores of lead, zinc, iron,
copper, barium, or any precious mineral, producible on a commercially
paying basis, shall be subject to be condemned for utilization for the
underground storage of gas therein. (L. 1953 p. 513 § 5)

(1956) Law held not discriminatory because not allowing condemnation of
formations containing potable waters. Collins v. Public Serv. Comm., 365
Mo. 1086, 293 S.W.2d 345.



In case the lands sought to be condemned pursuant to sections
393.410 to 393.510 are held by any corporation, the right to condemn the
same pursuant to sections 393.410 to 393.510 shall be limited to such use
as shall not materially interfere with the public uses to which, by law,
such corporation is authorized to put said lands. (L. 1953 p. 513 § 8)



Nothing herein contained shall limit or impair any right to
exercise the power of eminent domain which may be vested in any gas
storage company by any other law. (L. 1953 p. 513 § 9)



Any and all rights to utilize any strata or formations,
underlying any land, for the underground storage of gas, which are
acquired by any gas storage company by condemnation pursuant to section
393.430 or by proceeding as in cases of condemnation pursuant to section
393.420, shall be subject to the right of the owner of such land or of
other rights or interests therein, to drill, bore or sink shafts through
such strata or formations, for the purpose of exploring for or recovering
oil, gas or other minerals from other strata or formations, in such
manner as will not hamper or impair the operation of the gas storage
reservoir, or result in the pollution of gas stored therein, or permit
the escape of any gas therefrom. (L. 1953 p. 513 § 6)



Whenever gas belonging to any person or corporation is injected
into underground storage, it shall, unless and until it be abandoned by
the owner thereof, be and remain personal property and the property of
the owner thereof, and shall not be subject to production, taking,
reduction to possession, waste or interference by the owner of the
surface of the land under which the gas storage company has obtained the
right to store gas, or by any person whomsoever except the owner thereof
and persons acting by his authority; provided nothing herein contained
shall apply to a person under whose land gas may be stored without the
gas storage company having obtained the right to store gas. (L. 1953 p.
513 § 2)



In civil actions arising under or by virtue of sections 393.410
to 393.510, and by virtue of the powers herein authorized, the statute of
limitations shall not begin to run against any right or cause of action
until the right or cause of action shall have accrued; provided that for
the purposes of sections 393.410 to 393.510 the right or cause of action
shall not be deemed to accrue when the wrong is done or the technical
breach of contract or duty occurs, but when the damage resulting
therefrom is sustained and is capable of ascertainment, and, if more than
one item of damage, then the last item, so that all resulting damage may
be recovered, and full and complete relief obtained. (L. 1953 p. 513 §
10A)



As used in sections 393.550 to 393.565, the following terms mean:

(1) "Access demand notice", the notice required by section 393.553;

(2) "Denial of access", a failure or refusal by a utility customer in
default to enable a utility company having a need for access to its
utility meter to gain such access;

(3) "Need for access", the desire to obtain access for the purpose of
terminating the supply of electricity, gas or water to a utility customer
when:

(a) Such customer has failed to pay lawful charges for one or more of
such utility services at the residence for such a period of time that the
utility company seeking access has lawfully provided to such customer a
written notice that the utility service provided by such utility company
is subject to termination in accordance with then applicable laws and
regulations, and while the cause for such notice still exists; and

(b) Utility service cannot be terminated to such customer without access
to such customer's utility meter, except by terminating utility service
to one or more other customers at the residence who are not subject to
termination of utility service for failure to pay lawful charges for
utility service;

(4) "Residence", a multifamily residential dwelling;

(5) "Utility company", an electrical corporation, a gas corporation or a
water corporation subject to the jurisdiction, control and regulation of
the Missouri public service commission and to the provisions of chapter
386, RSMo;

(6) "Utility customer in default", a utility customer who has failed to
pay lawful charges for utility services at the residence for the period
of time referred to in paragraph (a) of subdivision (3) of this section;

(7) "Utility meter", the meter and any other property connected with the
meter which are owned by the utility company. (L. 1986 H.B. 1422 § 1)



Whenever there exists a need for access, as defined in
subdivision (3) of section 393.550, to a utility meter, the utility
company may make demand, by written notice, upon the utility customer in
default for access to the utility meter. Such notice shall state that:

(1) The utility company is the owner of the utility meter at the
residence;

(2) The utility company seeks access to the utility meter based upon a
need for access as described in subdivision (3) of section 393.550; and

(3) If access to the utility meter is not provided within ten days of the
date of the access demand notice, an action may be instituted by the
utility company. If access to the utility meter is not provided to the
utility company within ten days of the date of the access demand notice,
such refusal shall constitute a denial of access. (L. 1986 H.B. 1422 § 2)



1. Upon any denial of access, the utility company may institute
an action to acquire access to the utility meter by filing with the
associate circuit court of the county in which the residence is located,
an affidavit stating:

(1) The name of the utility customer in default;

(2) The address of the residence in which the utility meter is located;

(3) That the utility company is the owner of the utility meter involved;

(4) That an access demand notice has been mailed or delivered to the
utility customer in default, and attaching thereto a verified copy of
such access demand notice; and

(5) That there has been a denial of access to the utility meter.

2. Upon the filing of the affidavit required by subsection 1 of this
section by the utility company, the court shall issue an initial access
order requiring the utility customer in default to deliver access to the
utility meter to the sheriff, and requiring the sheriff to provide the
utility company with access to the utility meter. Such initial access
order must be entered within seven days of the filing of the affidavit. A
copy of the initial access order shall be delivered to the sheriff or
court officer, who shall, within five days after its issuance by the
court, serve a copy of the initial access order on the utility customer
in default and file a return with the court showing that service has been
made. In addition to such attempted personal service, the utility company
may request, and thereupon the judge, before whom the proceeding is
commenced, shall forthwith make an order directing that the sheriff or
court officer shall also immediately serve the same by securely affixing
a copy of such initial access order in a conspicuous place at the
residence for at least ten days, and by also immediately mailing a copy
of the initial access order to the utility customer in default at his
last known address by ordinary mail and by certified mail, return receipt
requested, deliver to addressee only. If the sheriff or other court
officer shall return that the utility customer in default is not found,
or that he has absconded or absented himself from his usual place of
abode in this state, and if proof be made of the notice and of the
mailing of notice by ordinary mail and certified mail by affidavit of
some competent witness, the judge shall immediately proceed with the
matter as if there had been personal service of the initial access order.
Each initial access order shall notify the utility customer in default of
the right of such utility customer in default to post a bond and request
a hearing pursuant to section 393.557. The court may allow for a period
of time from the time of service, which period shall not exceed ten days,
in which the utility customer in default may post the bond required by
section 393.557. If no such bond is posted within the period thus
established by the court, then the initial access order shall
automatically become a final order of access at the close of business on
the last day of such period. (L. 1986 H.B. 1422 § 3)



1. The initial access order shall become a final order of access
under section 393.555 unless the utility customer in default posts a bond
which must be:

(1) Approved by and filed with the court within the time specified by the
initial access order; and

(2) In sufficient amount, form and with appropriate security, to protect
the utility company against all losses and expenses which the utility
company may suffer by reason of the delay in obtaining access, including,
but not limited to, the posting of adequate security to cover all charges
by the utility company which may accrue during the pendency of the
hearing referred to in subsection 2 of this section. If such bond is
provided to the court and approved by the court, the utility customer in
default filing such bond shall be entitled to a hearing pursuant to
subsection 2 of this section, which hearing shall be a hearing on the
record under procedures applicable before circuit judges, and shall be
held and decided within twenty days of the posting of the bond.

2. At a hearing on the delivery of access to the utility meter, each
party may present proofs. In order to prevail, the utility company must
establish that it reasonably requires access to the utility meter based
upon a need for access as described in subdivision (3) of section
393.550. If the utility company so establishes, the initial access order
shall be automatically reinstated and immediately become a final order of
access. The utility customer in default and the utility company shall
respectively have the opportunity to present evidence to the court, and
to cross-examine any or all witnesses of the other party. (L. 1986 H.B.
1422 § 4)



When the sheriff receives a final order of access as described
in section 393.555 or 393.557, he shall immediately deliver and grant the
utility company access to the utility meter by entering the residence
with an authorized representative of the utility company. The sheriff is
entitled to receive all his necessary expenses in the delivery of access
to the utility meter. (L. 1986 H.B. 1422 § 5)



1. If, at the hearing on the delivery of access to the utility
meter under section 393.557, the court specifically finds, on the basis
of the record at such hearing, that the utility company willfully and
wrongfully instituted an action under sections 393.550 to 393.565, the
utility customer in default may be entitled to any damages which might be
incurred by such utility customer in default as a direct result of such
actions by the utility company, together with reasonable attorney fees.

2. Costs may be taxed in the discretion of the court, and the court shall
direct which party is obligated to pay the sheriff's expenses referred to
in section 393.559. (L. 1986 H.B. 1422 § 6)



Nothing contained in sections 393.550 to 393.565 shall affect
the other rights of access which may be available to the utility company
against the utility customer in default under applicable law, or under
applicable rules, regulations and tariffs of the utility company, or of
the Missouri public service commission; except that no gas or electric
utility company, as defined in subdivision (5) of section 393.550, shall
terminate utility service to an entire residence, as defined in
subdivision (4) of section 393.550, solely by reason of the delinquency
in payment of one or more customers, when there are one or more other
customers at the residence who are not for any lawful reason, including
but not limited to delinquency in payment, subject to termination of
utility service. Nothing contained in sections 393.550 to 393.565 shall
be construed to prevent a utility company from discontinuing utility
service to any residence for any other lawful purpose. (L. 1986 H.B. 1422
§ 7)



Applications for appeals shall be allowed and conducted in the
manner provided in chapter 512, RSMo; but no application for an appeal by
the utility customer in default shall stay execution unless the utility
customer in default gives bond, with security sufficient to secure the
payment of all damages, costs and utility charges then due, and with
condition to pay all subsequently accruing utility charges, if any, into
court within ten days after such charges become due, pending
determination of the appeal. (L. 1986 H.B. 1422 § 8)



Sections 393.700 to 393.770 shall be known as the "Joint
Municipal Utility Commission Act". (L. 1978 H.B. 1126 § 1, A.L. 1983 H.B.
204, A.L. 2002 H.B. 1402)



As used in sections 393.700 to 393.770, the following terms
shall, unless the context clearly indicates otherwise, have the following
meanings:

(1) "Bond" or "bonds", any bonds, interim certificates, notes, debentures
or other obligations of a commission issued pursuant to sections 393.700
to 393.770;

(2) "Commission", any joint municipal utility commission established by a
joint contract pursuant to sections 393.700 to 393.770;

(3) "Contracting municipality", each municipality which is a party to a
joint contract establishing a commission pursuant to sections 393.700 to
393.770, a water supply district formed pursuant to the provisions of
chapter 247, RSMo, or a sewer district formed pursuant to the provisions
of chapter 204, RSMo, or chapter 249, RSMo;

(4) "Joint contract", the contract entered into among or by and between
two or more of the following contracting entities for the purpose of
establishing a commission:

(a) Municipalities;

(b) Public water supply districts;

(c) Sewer districts;

(d) Nonprofit water companies; or

(e) Nonprofit sewer companies;

(5) "Participating municipality", a municipality, public water supply
district, or sewer district acting in concert with a commission in the
development of a project but providing separate financing to acquire an
individual interest in the project;

(6) "Person", a natural person, cooperative or private corporation,
association, firm, partnership, or business trust of any nature
whatsoever, organized and existing pursuant to the laws of any state or
of the United States and any municipality or other municipal corporation,
governmental unit, or public corporation created under the laws of this
state or the United States, and any person, board, or other body declared
by the laws of any state or the United States to be a department, agency
or instrumentality thereof;

(7) "Project", the purchasing, construction, extending or improving of
any utility facility or property including without limitation
revenue-producing water, sewage, gas or electric light works, heating or
power plants, transmission and distribution systems, and all other types
of utilities and revenue-producing facilities as deemed appropriate by
the governing bodies of the contracting or participating municipalities,
including all real and personal property of any nature whatsoever to be
used in connection therewith, together with all parts thereof and
appurtenances thereto, or any interest therein or right to capacity
thereof and the acquisition of fuel of any kind for any such purposes.
(L. 1978 H.B. 1126 § 2, A.L. 1983 H.B. 204, A.L. 1986 S.B. 488, A.L. 1999
H.B. 450 merged with S.B. 160 & 82, A.L. 2000 S.B. 894, A.L. 2002 H.B.
1402, A.L. 2004 H.B. 1171)



1. Municipalities, public water supply districts, and sewer
districts may, by joint contract, establish a governmental entity to be
known as a joint municipal utility commission, to effect the joint
development of a project or projects in whole or in part for the benefit
of the inhabitants of such municipalities, public water supply districts
and sewer districts.

2. Any joint contract establishing a commission under this section shall
specify:

(1) The name and purpose of the commission and the functions or services
to be provided by the commission;

(2) The establishment and organization of a governing body of a
commission which shall be a board of directors in which all powers of the
commission are vested. The joint contract may provide for the creation by
the board of an executive committee of the board to which the powers and
duties of the board may be delegated as the board or state statute shall
specify;

(3) The number of directors, the manner of their appointment, terms of
office and compensation, if any, and the procedure for filling vacancies
on the board. Each contracting municipality, public water supply
district, and sewer district shall have the power to appoint one member
and an alternate to the board of directors and shall be entitled to
remove that member and alternate at will;

(4) The manner of selection of the officers of the commission and their
duties;

(5) The voting requirements for action by the board, but, unless
specifically provided otherwise, a majority of directors shall constitute
a quorum and a majority of the quorum shall be necessary for any action
taken by the board;

(6) The duties of the board which shall include the obligation to comply
or to cause compliance with this section and the laws of the state and,
in addition, with each and every term, provision and covenant in the
joint contract creating the commission on its part to be kept or
performed;

(7) The manner in which additional municipalities, public water supply
districts, and sewer districts may become parties to the joint contract;

(8) The manner of financing the commission and of establishing and
maintaining a budget and annual audit for the commission;

(9) The ownership interests of the contracting municipality electric
cooperative associations, municipally owned or public utilities in a
project or the manner of determining such ownership interest, which
ownership interest shall be subject to any mortgage of a project pursuant
to section 393.735;

(10) Provisions for the disposition, division or distribution of any
property or assets of the commission on dissolution; and

(11) The term of the joint contract, which may be a definite period or
until rescinded or terminated, and the method, if any, by which the joint
contract may be rescinded or terminated so long as the commission has no
bonds outstanding, unless provision for full payment of such bonds, by
escrow or otherwise, has been made pursuant to the terms of the bonds or
the resolution, trust indenture or security instrument securing the bonds.

3. A commission shall, if the joint contract so provides, be the
successor to any nonprofit corporation, agency, or another entity
theretofore organized by the contracting municipalities to provide the
same function, service or facility, and the commission shall be entitled
to all rights and privileges and shall assume all obligations and
liabilities of such other entity under existing contracts to which such
other entity is a party. (L. 1978 H.B. 1126 § 3, A.L. 1983 H.B. 204, A.L.
1986 S.B. 488, A.L. 1987 H.B. 148, A.L. 1999 H.B. 450 merged with S.B.
160 & 82, A.L. 2004 H.B. 1171)



1. The general powers of a commission to the extent provided in
section 393.710 to be exercised for the benefit of its contracting
members shall include the power to:

(1) Plan, develop, acquire, construct, reconstruct, operate, manage,
dispose of, participate in, maintain, repair, extend or improve one or
more projects, either exclusively or jointly or by participation with
electric cooperative associations, municipally owned or public utilities
or acquire any interest in or any rights to capacity of a project, within
or outside the state, and act as an agent, or designate one or more other
persons participating in a project to act as its agent, in connection
with the planning, acquisition, construction, operation, maintenance,
repair, extension or improvement of such project;

(2) Acquire, sell, distribute and process fuels necessary to the
production of electric power and energy; provided, however, the
commission shall not have the power or authority to erect, own, use or
maintain a transmission line which is parallel or generally parallel to
another transmission line in place within a distance of two miles, which
serves the same general area sought to be served by the commission unless
the public service commission finds that it is not feasible to utilize
the transmission line which is in place;

(3) Acquire by purchase or lease, construct, install, and operate
reservoirs, pipelines, wells, check dams, pumping stations, water
purification plants, and other facilities for the production, wholesale
distribution, and utilization of water and to own and hold such real and
personal property as may be necessary to carry out the purposes of its
organization; provided, however, that a commission shall not sell or
distribute water, at retail or wholesale, within the certificated area of
a water corporation which is subject to the jurisdiction of the public
service commission unless the sale or distribution of water is within the
boundaries of a public water supply district or municipality which is a
contracting municipality in the commission and the commission has
obtained the approval of the public service commission prior to
commencing such said sale or distribution of water;

(4) Acquire by purchase or lease, construct, install, and operate
lagoons, pipelines, wells, pumping stations, sewage treatment plants and
other facilities for the treatment and transportation of sewage and to
own and hold such real and personal property as may be necessary to carry
out the purposes of its organization;

(5) Enter into operating, franchises, exchange, interchange, pooling,
wheeling, transmission and other similar agreements with any person;

(6) Make and execute contracts and other instruments necessary or
convenient to the exercise of the powers of the commission;

(7) Employ agents and employees;

(8) Contract with any person, within or outside the state, for the
construction of any project or for any interest therein or any right to
capacity thereof, without advertising for bids, preparing final plans and
specifications in advance of construction, or securing performance and
payment of bonds, except to the extent and on such terms as its board of
directors or executive committee shall determine. Any contract entered
into pursuant to this subdivision shall contain a provision that the
requirements of sections 290.210 to 290.340, RSMo, shall apply;

(9) Purchase, sell, exchange, transmit, treat, dispose or distribute
water, sewage, gas, heat or electric power and energy, or any by-product
resulting therefrom, within and outside the state, in such amounts as it
shall determine to be necessary and appropriate to make the most
effective use of its powers and to meet its responsibilities, and to
enter into agreements with any person with respect to such purchase,
sale, exchange, treatment, disposal or transmission, on such terms and
for such period of time as its board of directors or executive committee
shall determine. A commission may not sell or distribute water, gas, heat
or power and energy, or sell sewage service at retail to ultimate
customers outside the boundary limits of its contracting municipalities
except pursuant to subsection 2 or 3 of this section;

(10) Acquire, own, hold, use, lease, as lessor or lessee, sell or
otherwise dispose of, mortgage, pledge, or grant a security interest in
any real or personal property, commodity or service or interest therein;

(11) Exercise the powers of eminent domain for public use as provided in
chapter 523, RSMo, except that the power of eminent domain shall not be
exercised against any electric cooperative association, municipally owned
or public utility;

(12) Incur debts, liabilities or obligations including the issuance of
bonds pursuant to the authority granted in section 27 of article VI of
the Missouri Constitution;

(13) Sue and be sued in its own name;

(14) Have and use a corporate seal;

(15) Fix, maintain and revise fees, rates, rents and charges for
functions, services, facilities or commodities provided by the commission;

(16) Make, and from time to time, amend and repeal, bylaws, rules and
regulations not inconsistent with this section to carry into effect the
powers and purposes of the commission;

(17) Notwithstanding the provisions of any other law, invest any funds
held in reserve or sinking funds, or any funds not required for immediate
disbursement, including the proceeds from the sale of any bonds, in such
obligations, securities and other investments as the commission deems
proper;

(18) Join organizations, membership in which is deemed by the board of
directors or its executive committee to be beneficial to accomplishment
of the commission's purposes;

(19) Exercise any other powers which are deemed necessary and convenient
by the commission to effectuate the purposes of the commission; and

(20) Do and perform any acts and things authorized by this section under,
through or by means of an agent or by contracts with any person.

2. When a municipality purchases a privately owned water utility and a
commission is created pursuant to sections 393.700 to 393.770, the
commission may continue to serve those locations previously receiving
water from the private utility even though the location receives such
service outside the geographical area of the municipalities forming the
commission. New water service may be provided in such areas if the site
to receive such service is located within one-fourth of a mile from a
site serviced by the privately owned water utility.

3. When a commission created by any of the contracting entities listed in
subdivision (4) of section 393.705 becomes a successor to any nonprofit
water corporation, nonprofit sewer corporation or other nonprofit agency
or entity organized to provide water or sewer service, the commission may
continue to serve, as well as provide new service to, those locations and
areas previously receiving water or sewer service from such nonprofit
entity, regardless of whether or not such location receives such service
outside the geographical service area of the contracting entities forming
such commission; provided that such locations and areas previously
receiving water and sewer service from such nonprofit entity are not
located within:

(1) Any county of the first classification with a population of more than
six hundred thousand and less than nine hundred thousand;

(2) The boundaries of any sewer district established pursuant to article
VI, section 30(a) of the Missouri Constitution; or

(3) The certificated area of a water or sewer corporation that is subject
to the jurisdiction of the public service commission. (L. 1978 H.B. 1126
§ 4, A.L. 1983 H.B. 204, A.L. 1999 H.B. 450 merged with S.B. 160 & 82,
A.L. 2000 S.B. 894, A.L. 2002 H.B. 1402, A.L. 2004 H.B. 1171)



Any commission established by joint contract under sections
393.700 to 393.770 shall constitute a body public and corporate of the
state, exercising public powers for the benefit of its contracting
members and in order to carry out the public purposes and the public
functions of its contracting members. It shall have the duties,
privileges, immunities, rights, liabilities and disabilities of its
contracting members and as a public body politic and corporate but shall
not have taxing power separate from that of its members nor shall it have
the benefit of the doctrine of sovereign immunity. (L. 1978 H.B. 1126 §
5, A.L. 2004 H.B. 1171)



1. Bonds issued pursuant to sections 393.700 to 393.770 by a
commission shall be payable, as to the principal and interest, solely
from the net revenues derived from the operation of any one or more of
the projects financed by the commission, after providing for the costs of
operation and maintenance of the project or projects, or from any other
funds made available to the commission from sources other than from
proceeds of taxation.

2. Each bond issued pursuant to the provisions of sections 393.700 to
393.770 shall contain a statement that such bond is not an indebtedness
of the state, or of any political subdivision thereof, other than the
joint municipal utility commission, or of the contracting municipalities,
the contracting public water supply districts or the contracting sewer
districts, but shall be special obligations of the commission only and
that neither the faith and credit nor the taxing power of the state or of
any political subdivision thereof, or of the contracting municipalities,
contracting public water supply districts or contracting sewer districts
is pledged to the payment of or the interest on such bonds. The bonds
shall not be deemed to be an indebtedness within the meaning of any
constitutional or statutory limitation upon the incurring of
indebtedness. Neither the members of the board of directors of a
commission nor any person executing the bonds shall be liable personally
on the bonds by reason of the lawful issuance thereof.

3. A commission, subject to the provisions of sections 393.700 to
393.770, may from time to time issue its bonds in such principal amounts
as it deems necessary to provide sufficient funds to purchase, construct,
extend or improve a project, including the establishment or increase of
reserves, interest accrued during construction of such project and for a
period not exceeding one year after the completion of construction of
such project, and the payment of all other costs or expenses of the
commission incident to and necessary or convenient to carry out its
corporate purposes and powers.

4. Bonds of a commission shall be authorized by resolution of the board
of directors or by resolution of its executive committee if the board has
delegated such authority and may be issued under such resolution or under
a trust indenture or other security instrument, as authorized by the
resolution, in one or more series and shall bear such date or dates,
mature at such time or times, bear interest at such rate or rates, be in
such denomination or denominations, be in such form, either coupon,
registered or both, carry such conversion or registration privileges,
have such rank or priority, be payable from any one or more projects, be
executed in such manner, be payable in such medium of payment, at such
place or places within or without the state, and be subject to such terms
of redemption, with or without premium, as such resolution, trust
indenture or other security instrument may provide, and without
limitation by the provisions of any other law limiting amounts,
maturities or interest rates.

5. The bonds shall be sold at public sale or at private sale as the
commission may provide and at such price or prices as the commission
shall determine. The decision of the commission shall be conclusive.

6. The bonds may be signed by manual or facsimile signatures as
determined by resolution of the board or by resolution of the executive
committee if the board has delegated such authority. In case any of the
officers whose signatures appear on any bonds or coupons shall cease to
be such officers before the delivery of such obligations, such signatures
shall, nevertheless, be valid and sufficient for all purposes, the same
as if the officers had remained in office until such delivery.

7. Pending preparation of definitive bonds, a commission may issue
temporary bonds which shall be exchanged for the definitive bonds when
such bonds shall have been executed and are available for delivery.

8. All bonds issued under the provisions of sections 393.700 to 393.770
shall be negotiable instruments pursuant to the provisions of the uniform
commercial code of the state. (L. 1978 H.B. 1126 § 6, A.L. 1983 H.B. 204,
A.L. 1990 S.B. 855, A.L. 1999 H.B. 450 merged with S.B. 160 & 82, A.L.
2002 H.B. 1402, A.L. 2004 H.B. 1171)



1. The resolution authorizing any issuance of bonds hereunder
shall make provision for the payment of the bonds by fixing such rates,
fees and charges for water, sewer, gas, heat, electric power and energy
and all other services provided by the project sufficient to pay the
interest and principal of the bonds when due, to provide for a sinking
fund sufficient to retire the bonds, and to provide and maintain
reasonable reserves. Such rates, fees and charges shall also be
sufficient to pay the costs of operation, improvement and maintenance of
the project.

2. The resolution and trust indenture under which any bonds shall be
issued shall constitute a contract with the holders of the bonds, and may
contain provisions, among others, as to:

(1) The terms and provisions of the bonds;

(2) As provided in section 393.735, the mortgage or pledge of and the
grant of a security interest in any real or personal property and all or
any part of the revenues from any project or projects or any revenue-
producing contract or contracts made by the commission with any person to
secure the payment of bonds, subject to such agreements with the holders
of bonds as may then exist;

(3) The custody, collection, securing, investment and payment of any
revenues, assets, money, funds or property with respect to which the
commission may have any rights or interest;

(4) The purposes to which the proceeds from the sale of any bonds then or
thereafter to be issued may be applied, the pledge of such proceeds to
secure the payment of the bonds and the net revenue of the project or
projects which may be pledged to the payment of bonds;

(5) Limitations on the issuance of any additional bonds, the terms upon
which additional bonds may be issued and secured, and the refunding of
outstanding bonds;

(6) The rank or priority of any bonds with respect to any lien or
security;

(7) The creation of special funds or moneys to be held in trust or
otherwise for operating expenses, payment, or redemption of bonds,
reserves or other purposes, and the use and disposition of moneys held in
such funds;

(8) The procedure by which the terms of any contract with or for the
benefit of the holders of bonds may be amended or abrogated, the amount
of bonds the holders of which must consent thereto, and the manner in
which such consent may be given;

(9) The definition of the acts or omissions to act which shall constitute
a default in the duties of the commission to holders of its bonds, and
the rights and remedies of such holders in the event of such default
including, if the commission shall so determine, the right to accelerate
the due date of the bonds or the right to appoint a receiver or receivers
of the property or revenues subject to the lien of the resolution and
trust indenture;

(10) Any other or additional agreements with or for the benefit of the
holders of bonds or any covenants or restrictions necessary or desirable
to safeguard the interests of such holders;

(11) The custody of any of its properties or investments, the safekeeping
thereof, the insurance to be carried thereon, and the use and disposition
of insurance proceeds;

(12) The vesting in a trustee or trustees, within or outside the state,
of such properties, rights, powers, and duties in trust as the commission
may determine, or limiting or abrogating the rights of the holders of any
bonds to appoint a trustee, or limiting the rights, powers, and duties of
such trustee; and

(13) Appointing and providing for the duties and obligations of a paying
agent or paying agents or other fiduciaries within or outside the state.
(L. 1978 H.B. 1126 § 7, A.L. 1999 H.B. 450 merged with S.B. 160 & 82,
A.L. 2004 H.B. 1171)



As additional security for bonds issued or to be issued by a
commission, the commission may mortgage or execute deeds of trust of the
whole or any part of a project. Any such mortgage or deed of trust
covering the whole or any part of easements or other interests in real
estate less than fee simple used in a project, or for the generation or
transmission of electric power and energy, and covering fixtures annexed
thereto, may be filed in the office of the secretary of state with or as
a part of the financing statement covering such fixtures. All filings
required under the uniform commercial code to perfect a security interest
against the personal property or fixtures of a commission shall be made
and maintained in the office of the secretary of state. (L. 1978 H.B.
1126 § 8)

Effective 12-7-78



1. All bonds issued pursuant to sections 393.700 to 393.770 and
all income or interest thereon shall be exempt from all state taxes,
except estate and transfer taxes.

2. All property, real and tangible personal, except for properties
acquired exclusively for water supply districts, acquired by the bonds
issued pursuant to sections 393.700 and 393.770 or otherwise acquired by
a commission shall be subject to taxation for state, county, and
municipal and other local purposes only to the same extent as if such
property was owned directly by each contracting or participating
municipality in such proportion or manner as specified by contract among
all contracting or participating municipalities party to a project or if
not specified in proportion to the percentage of each municipality's
interest or participation in the facility or property. (L. 1978 H.B. 1126
§ 9, A.L. 1986 S.B. 488, A.L. 2002 H.B. 1402, A.L. 2004 H.B. 1171)



Any commission governed by the provisions of sections 393.700 to
393.770 having issued bonds under sections 393.700 to 393.770 may from
time to time as authorized by resolution of the commission or by
resolution of its executive committee if the board has delegated such
authority issue refunding bonds for the purpose of refunding, extending
and unifying the whole or any part of its valid outstanding indebtedness.
(L. 1978 H.B. 1126 § 10, A.L. 2004 H.B. 1171)



Bonds issued by any commission under the provisions of sections
393.700 to 393.770* are hereby made securities in which all public
officers and public bodies of the state and its political subdivisions,
all insurance companies, trust companies, banking associations,
investment companies, executors, administrators, trustees and other
fiduciaries may properly and legally invest funds, including capital in
their control or belonging to them. The bonds are hereby made securities
which may properly and legally be deposited with and received by any
state or municipal officer or any agency or political subdivision of the
state for any purpose for which the deposit of bonds or obligations of
the state is now or may hereafter be authorized by law. (L. 1978 H.B.
1126 § 11)

Effective 12-7-78

*Original rolls show words "this act"; apparently should be sections
393.700 to 393.770.



A commission shall have power to purchase bonds out of any funds
available therefor and to hold, pledge, cancel or resell such bonds,
subject to and in accordance with any agreements with the holders. (L.
1978 H.B. 1126 § 12)

Effective 12-7-78



1. Each participating municipality shall, in accordance with the
provisions of chapter 115, RSMo, order an election to be held whereby the
qualified electors in such participating municipality shall approve or
disapprove the issuance of its bonds to finance its individual interest
in the project. The participating municipality may not order such an
election until it has received a report from an independent consulting
engineer as defined in section 327.181, RSMo, for the purpose of
determining the economic and engineering feasibility of any proposed
project the costs of which are to be financed through the issuance of
bonds. The report of the consulting engineer shall be provided to and
approved by the legislative body and executive of each such participating
municipality and such report shall be open to public inspection and shall
be the subject of a public hearing in each participating municipality.
Notice of the time and place of each such hearing shall be published in a
daily newspaper of general circulation within each such participating
municipality. Interested parties may appear and fully participate in such
hearings.

2. Each participating municipality shall notify the election authority or
authorities responsible for conducting elections within such
participating municipality in accordance with chapter 115, RSMo.

3. The question shall be submitted in substantially the following form:

OFFICIAL BALLOT

Shall (name of participating municipality) issue its (type) revenue bonds
in an amount not to exceed $....................... for the purpose of
paying its share of the cost of participating in (describe project)?

[ ] YES [ ] NO

If you are in favor of the resolution, place an "X" in the box opposite
"Yes". If you are opposed to the question, place an "X" in the box
opposite "No".

4. If the issuance of the bonds is approved by at least a majority of the
qualified electors voting thereon in the participating municipality, the
participating municipality shall declare the result of the election and
cause the bonds to be issued.

5. Each participating municipality shall bear all expenses associated
with the elections in such participating municipality.

6. In lieu of the public voting procedure set forth in subsections 1 to 5
of this section, in the case of purchasing or leasing, constructing,
installing, and operating reservoirs, pipelines, wells, check dams,
pumping stations, water purification plants, and other facilities for the
production, wholesale distribution, and utilization of water, the
commission may provide for a vote by the governing body of each
contracting municipality. Such vote shall require the approval of
three-quarters of all governing bodies of the contracting municipalities.
The commission may not order such a vote until it has engaged and
received a report from an independent consulting engineer as defined in
section 327.181, RSMo, for the purpose of determining the economic and
engineering feasibility of any proposed project the costs of which are to
be financed through the issuance of bonds. The report of the consulting
engineer shall be provided to and approved by the legislative body and
executive of each contracting municipality participating in the project
and such report shall be open to public inspection and shall be the
subject of a public hearing in each municipality participating in the
project. Notice of the time and place of each such hearing shall be
published in a daily newspaper of general circulation within each
municipality. Interested parties may appear and fully participate in such
hearings. Each contracting municipality shall vote by ordinance or
resolution and such ordinance or resolution shall approve the issuance of
revenue bonds by the joint municipal water commission in an amount not to
exceed a specified amount. (L. 1978 H.B. 1126 § 13, A.L. 1987 S.B. 350,
A.L. 1999 H.B. 450 merged with S.B. 160 & 82, A.L. 2004 H.B. 795, et al.
merged with H.B. 1171)



1. The contracting municipalities may provide in the joint
contract for payment to the commission of funds for commodities to be
procured and services to be rendered by the commission. The contracting
municipalities, participating municipalities, and other persons may enter
into purchase agreements with the commission for the purchase, sale,
exchange or transmission of water, sewage service, gas, heat or any right
to capacity or interest in such electric power and energy and any other
services provided by the project whereby the purchaser is obligated to
make payments in amounts which shall be sufficient to enable the
commission to meet its expenses, interest and principal payments, whether
at maturity or upon sinking fund redemption, for its bonds, reasonable
reserves for debt service, operation and maintenance and renewals and
replacements and the requirements of any rate covenant with respect to
debt service coverage contained in any resolution, trust indenture or
other security instrument. Purchase agreements may contain such other
terms and conditions as the commission and the purchasers may determine,
including provisions whereby the purchaser is obligated to pay for water,
sewage service, gas, heat, power, or any other services provided by the
project irrespective of whether water, sewage service, gas, heat, energy,
or any other service is produced or delivered to the purchaser or whether
any project contemplated by any such agreement is completed, operable or
operating, and notwithstanding suspension, interruption, interference,
reduction or curtailment of the output of such project. Such agreements
may be for a term covering the life of a project or for any other term,
or for an indefinite period. The joint contract or a purchase agreement
may provide that if one or more of the purchasers default in the payment
of its obligations under any such purchase agreement, the remaining
purchasers which also have such agreements shall be required to accept
and pay for and shall be entitled proportionately to use or otherwise
dispose of the water, sewage service, gas, heat, energy, or other service
to be purchased by the defaulting purchaser.

2. The obligations of a contracting or participating municipality under a
purchase agreement with a commission or arising out of the default by any
other purchaser with respect to such an agreement shall not be construed
to constitute debt of the contracting or participating municipality. To
the extent provided in the purchase agreement, such obligations shall
constitute special obligations of the contracting or participating
municipality, payable solely from the revenues and other moneys derived
by the contracting or participating municipality from its municipal
utility and shall be treated as expenses of operating a municipal
utility. (L. 1978 H.B. 1126 § 15, A.L. 1983 H.B. 204, A.L. 1999 H.B. 450
merged with S.B. 160 & 82, A.L. 2004 H.B. 1171)



1. Nonprofit, membership corporations may be organized under
sections 393.825 to 393.861 and section 393.175 only for the purpose of
supplying wastewater disposal and treatment services within the state of
Missouri. Corporations which become subject to sections 393.825 to
393.861 and section 393.175 in the manner herein provided are herein
referred to as "nonprofit sewer companies". Five or more persons may
organize a nonprofit sewer company pursuant to sections 393.825 to
393.861 and section 393.175.

2. The articles of incorporation of a nonprofit sewer company shall
recite in the caption that they are executed pursuant to sections 393.825
to 393.861 and section 393.175, shall be signed and acknowledged in
duplicate by at least five of the incorporators and shall state:

(1) The name of the company;

(2) The address of its principal office;

(3) The names and addresses of the incorporators;

(4) The number of years the company is to continue, which may be any
number including perpetuity;

(5) The names and addresses of the persons who shall constitute its first
board of directors;

(6) Whether the company chooses to operate under the provisions of
chapter 347, RSMo, or chapter 355, RSMo; and

(7) Any provisions not inconsistent with sections 393.825 to 393.861 and
section 393.175 deemed necessary or advisable for the conduct of its
business and affairs. Such articles of incorporation shall be submitted
to the secretary of state for filing. (L. 1997 2d Ex. Sess. H.B. 1 merged
with S.B. 3)

Effective 12-23-97



Any corporation organized under the laws of this state for the
purpose of, among others, wastewater disposal, or wastewater treatment,
may be converted into a nonprofit sewer company and become subject to
sections 393.825 to 393.861 and section 393.175 with the same effect as
if originally organized under sections 393.825 to 393.861 and section
393.175 by complying with the following requirements:

(1) The proposition for the conversion of such corporation into a
nonprofit sewer company and proposed articles of conversion to give
effect thereto shall be first approved by the board of trustees or the
board of directors, as the case may be, of such corporation. The proposed
articles of conversion shall recite in the caption that they are executed
pursuant to sections 393.825 to 393.861 and section 393.175 and shall
state:

(a) The name of the corporation prior to its conversion into a nonprofit
sewer company;

(b) The address of the principal office of such corporation;

(c) The date of the filing of the articles of incorporation of such
corporation in the office of the secretary of state;

(d) The statute or statutes under which such corporation was organized;

(e) The name assumed by such corporation;

(f) A statement that such corporation elects to become a nonprofit,
membership corporation subject to sections 393.825 to 393.861 and section
393.175;

(g) The manner and basis of converting either memberships in or shares of
stock of such corporation into memberships therein after completion of
the conversion; and

(h) Any provisions not inconsistent with sections 393.825 to 393.861 and
section 393.175 deemed necessary or advisable for the conduct of the
business and affairs of such corporation.

(2) The proposition for the conversion of such corporation into a
nonprofit sewer company and the proposed articles of conversion approved
by the board of trustees or board of directors, as the case may be, of
such corporation shall then be submitted to a vote of the members or
stockholders, as the case may be, of such corporation at any duly held
annual or special meeting thereof, the notice of which shall set forth
full particulars concerning the proposed conversion. The proposition for
the conversion of such corporation into a nonprofit sewer company and the
proposed articles of conversion, with such amendments thereto as the
members or stockholders of such corporation shall choose to make, shall
be deemed to be approved upon the affirmative vote of not less than a
majority of the members of such corporation, or, if such corporation is a
stock corporation, upon the affirmative vote of the holders of not less
than a majority of the capital stock of such corporation.

(3) Upon such approval by the members or stockholders of such
corporation, articles of conversion in the form approved by such members
or stockholders shall be executed and acknowledged in duplicate on behalf
of such corporation by its president or vice president and its corporate
seal shall be affixed thereto and attested by its secretary. The
president or vice president executing such articles of conversion on
behalf of such corporation shall also make and annex to each copy thereof
an affidavit stating that the provisions of sections 393.825 to 393.861
and section 393.175 with respect to the approval of its trustees or
directors and its members or stockholders, of the proposition for the
conversion of such corporation into a nonprofit sewer company and such
articles of conversion were duly complied with. Such articles of
conversion and affidavit shall be submitted to the secretary of state for
filing as provided in sections 393.825 to 393.861 and section 393.175.
The term "articles of incorporation" as used in sections 393.825 to
393.861 and section 393.175 shall be deemed to include the articles of
conversion of a converted corporation. (L. 1997 2d Ex. Sess. H.B. 1
merged with S.B. 3)

Effective 12-23-97



A nonprofit sewer company shall have power:

(1) To sue and be sued, in its corporate name;

(2) To have succession by its corporate name for the period stated in its
articles of incorporation or, if no period is stated in its articles of
incorporation, to have such succession perpetually;

(3) To adopt a corporate seal and alter the same at pleasure;

(4) To provide wastewater disposal and wastewater treatment services to
its members, to governmental agencies and political subdivisions;

(5) To make loans to persons to whom wastewater disposal or wastewater
treatment is or will be supplied by the company for the purpose of, and
otherwise to assist such persons in, installing therein plumbing
fixtures, appliances, apparatus and equipment of any and all kinds and
character, and in connection therewith, to purchase, acquire, lease,
sell, distribute, install and repair such plumbing fixtures, appliances,
apparatus and equipment, and to accept or otherwise acquire, and to sell,
assign, transfer, endorse, pledge, hypothecate and otherwise dispose of
notes, bonds and other evidences of indebtedness and any and all types of
security therefor;

(6) To make loans to persons to whom wastewater disposal or wastewater
treatment is or will be supplied by the company for the purpose of, and
otherwise to assist such persons in, constructing, maintaining and
operating commercial or industrial plants or facilities;

(7) To construct, purchase, take, receive, lease as lessee, or otherwise
acquire, and to own, hold, use, equip, maintain, and operate, and to
sell, assign, transfer, convey, exchange, lease as lessor, mortgage,
pledge, or otherwise dispose of or encumber, wastewater provision or
collection or treatment systems, plants, lands, buildings, structures,
dams, and equipment, and any and all kinds and classes of real or
personal property whatsoever, which shall be deemed necessary, convenient
or appropriate to accomplish the purpose for which the company is
organized;

(8) To purchase or otherwise acquire, and to own, hold, use and exercise
and to sell, assign, transfer, convey, mortgage, pledge, hypothecate, or
otherwise dispose of or encumber, franchises, rights, privileges,
licenses, rights-of-way and easements;

(9) To borrow money and otherwise contract indebtedness, and to issue
notes, bonds, and other evidences of indebtedness therefor, and to secure
the payment thereof by mortgage, pledge, deed of trust, or any other
encumbrance upon any or all of its then-owned or after-acquired real or
personal property, assets, franchises, revenues or income;

(10) To construct, maintain and operate wastewater distribution and
collection and treatment plants and lines along, upon, under and across
all public thoroughfares, including without limitation, all roads,
highways, streets, alleys, bridges and causeways, and upon, under and
across all publicly owned lands;

(11) To exercise the power of eminent domain in the manner provided by
the laws of this state for the exercise of that power by corporations
constructing or operating electric transmission and distribution lines or
systems;

(12) To conduct its business and exercise any or all of its powers within
or without this state;

(13) To adopt, amend and repeal bylaws; and

(14) To do and perform any and all other acts and things, and to have and
exercise any and all other powers which may be necessary, convenient or
appropriate to accomplish the purpose for which the company is organized.
(L. 1997 2d Ex. Sess. H.B. 1 merged with S.B. 3)

Effective 12-23-97



A company may amend its articles of incorporation by complying
with the following requirements:

(1) The proposed amendment shall be first approved by the board of
directors and shall then be submitted to a vote of the members at any
annual or special meeting thereof, the notice of which shall set forth
the proposed amendment. The proposed amendment, with such changes as the
members shall choose to make therein, shall be deemed to be approved on
the affirmative vote of not less than two-thirds of those members voting
thereon at such meeting; and

(2) (a) Upon such approval by the members, articles of amendment shall be
executed and acknowledged in duplicate on behalf of the company by its
president or vice president and its corporate seal shall be affixed
thereto and attested by its secretary. The articles of amendment shall
recite in the caption that they are executed pursuant to sections 393.825
to 393.861 and section 393.175 and shall state:

a. The name of the company;

b. The address of its principal office;

c. The date of the filing of its articles of incorporation in the office
of the secretary of state; and

d. The amendment to its articles of incorporation;

(b) The president or vice president executing such articles of amendment
shall also make and annex to each copy thereof an affidavit stating that
the provisions of sections 393.825 to 393.861 and section 393.175 were
duly complied with;

(c) Such articles of amendment and affidavit shall be submitted to the
secretary of state for filing. (L. 1997 2d Ex. Sess. H.B. 1 merged with
S.B. 3)

Effective 12-23-97



A company may, upon authorization of a majority of the members
at any regular or special meeting, change the location of its principal
office by filing a certificate of change of principal office, executed
and acknowledged in duplicate by its president or vice president under
its seal attested by its secretary, in the office of the secretary of
state. Such company shall also, within thirty days after the filing of
such certificate of change of principal office, file certified copies of
its articles of incorporation and all amendments thereto, if the same are
not already on file. (L. 1997 2d Ex. Sess. H.B. 1 merged with S.B. 3)

Effective 12-23-97



1. Articles of incorporation, amendment, consolidation, merger,
conversion, or dissolution, as the case may be, when executed and
acknowledged in duplicate and accompanied by such affidavits as may be
required by applicable provisions of sections 393.825 to 393.861 and
section 393.175, shall be presented to the secretary of state for filing
in the records of his office.

2. If the secretary of state shall find that the articles presented
conform to the requirements of sections 393.825 to 393.861 and section
393.175, he shall file one copy of the articles so presented in the
records of his office and upon such filing the incorporation, amendment,
consolidation, merger, conversion, or dissolution provided for therein
shall be in effect. (L. 1997 2d Ex. Sess. H.B. 1 merged with S.B. 3)

Effective 12-23-97



The provisions of the securities law of Missouri shall not apply
to any note, bond or other evidence of indebtedness issued by any
nonprofit sewer company transacting business in this state pursuant to
sections 393.825 to 393.861 and section 393.175 to the United States of
America or to any agency or instrumentality thereof, or to any mortgage
or deed of trust executed to secure the same. The provisions of such
securities law of Missouri shall not apply to the issuance of membership
certificates by any nonprofit sewer company. (L. 1997 2d Ex. Sess. H.B. 1
merged with S.B. 3)

Effective 12-23-97



1. No person shall become a member of a nonprofit sewer company
unless such person shall agree to use services furnished by the company
when such shall be available through its facilities. The bylaws of a
company may provide that any person, including an incorporator, shall
cease to be a member thereof if such person shall fail or refuse to use
services made available by the company or if services shall not be made
available to such person by the company within a specified time after
such person shall have become a member thereof. Membership in the company
shall not be transferable, except as provided in the bylaws. The bylaws
may prescribe additional qualifications and limitations in respect of
membership.

2. An annual meeting of the members shall be held at such time as shall
be provided in the bylaws.

3. Special meetings of the members may be called by the board of
directors, by any three directors, by not less than ten percent of the
members or by the president.

4. Meetings of members shall be held at such place as may be provided in
the bylaws. In the absence of any such provisions, all meetings shall be
held in the city or town in which the principal office of the company is
located.

5. Except as otherwise provided in sections 393.825 to 393.861 and
section 393.175, written or printed notice stating the time and place of
each meeting of members and, in the case of a special meeting, the
purpose or purposes for which the meeting is called, shall be given to
each member, either personally or by mail, not less than ten nor more
than twenty-five days before the date of the meeting.

6. Two percent of the members, present in person or by mail or proxy
shall constitute a quorum for the transaction of business at all meetings
of the members, unless the bylaws prescribe the presence of a greater
percentage of the members for a quorum. If less than a quorum is present
at any meeting, a majority of those present in person may adjourn the
meeting from time to time without further notice.

7. Each member shall be entitled to one vote on each matter submitted to
a vote at a meeting. Voting shall be in person, but, if the bylaws so
provide, may also be by proxy or by mail, or both. If the bylaws provide
for voting by proxy or by mail, they shall also prescribe the conditions
under which proxy or mail voting shall be exercised. (L. 1997 2d Ex.
Sess. H.B. 1 merged with S.B. 3)

Effective 12-23-97



Notwithstanding any other provision of law, the bylaws may
provide that the territory in which a company supplies wastewater
services may be divided into two or more voting districts for the purpose
of properly distributing its directors over the area in which its members
reside. In such case the bylaws shall prescribe the manner in which such
voting districts shall function in the election of directors at annual
meetings. (L. 1997 2d Ex. Sess. H.B. 1 merged with S.B. 3)

Effective 12-23-97



1. The business and affairs of a company shall be managed by a
board of not less than five directors, each of whom shall be a member of
the company. The bylaws shall prescribe the number of directors, their
qualifications, other than those provided for in sections 393.825 to
393.861 and section 393.175, the manner of holding meetings of the board
of directors and of the election of successors to directors who shall
resign, die, or otherwise be incapable of acting. The bylaws may also
provide for the removal of directors from office and for the election of
their successors. Without approval of the members, directors shall not
receive any salaries for their services as directors. The bylaws may,
however, provide that a fixed fee and expenses of attendance, if any, may
be allowed to each director for attendance at each meeting of the board
of directors.

2. The directors of a company named in any articles of incorporation,
consolidation, merger or conversion, as the case may be, shall hold
office until the next following annual meeting of the members or until
their successors shall have been elected and qualified.

3. The bylaws shall provide that the directors shall be divided into
three classes, each class to be as nearly equal in number as possible,
with the term of office of the directors of the first class to expire at
the next succeeding annual meeting and the term of the second class to
expire at the second succeeding annual meeting, and the term of the third
class to expire at the third succeeding annual meeting. At each annual
meeting after such classification a number of directors equal to the
number of the class whose term expires at the time of such meeting shall
be elected to hold office until the third succeeding annual meeting.

4. A majority of the board of directors shall constitute a quorum.

5. The board of directors may exercise all of the powers of a company
except such as are conferred upon the members by sections 393.825 to
393.861 and section 393.175, or its articles of incorporation or bylaws.
Nothing in sections 393.825 to 393.861 and section 393.175 shall be
deemed to prohibit a nonprofit sewer company from contracting with any
other person or entity for any services needed by the nonprofit sewer
company including, but not limited to, management or operations services.
(L. 1997 2d Ex. Sess. H.B. 1 merged with S.B. 3)

Effective 12-23-97



The officers of a nonprofit sewer company shall consist of a
president, vice president, secretary and treasurer, who shall be elected
annually. No person shall continue to hold the offices of president or
vice president after he shall have ceased to be a director. The offices
of secretary and of treasurer may be held by the same person and need not
be a member of the board of directors. The board of directors may also
elect or appoint such other officers, agents, or employees as it shall
deem necessary or advisable and shall prescribe the powers and duties
thereof. Any officer may be removed from office and his successor elected
in the manner prescribed in the bylaws. (L. 1997 2d Ex. Sess. H.B. 1
merged with S.B. 3)

Effective 12-23-97



1. Every nonprofit sewer company constructing, maintaining and
operating its wastewater lines and treatment facilities shall construct,
maintain and operate such lines and facilities in conformity with the
rules and regulations relating to the manner and methods of construction,
maintenance and operation and as to safety of the public with other lines
and facilities now or hereafter from time to time prescribed by the
department of natural resources for the construction, maintenance and
operation of such lines or systems. The jurisdiction, supervision, powers
and duties of the department of natural resources shall extend to every
such nonprofit sewer company and every nonprofit sewer company shall be
supervised and regulated by the department of natural resources to the
same extent and in the same manner as any other nonprofit corporation
engaged in whole or in part in the collection or treatment of wastewater.

2. The public service commission shall not have jurisdiction over the
construction, maintenance or operation of the wastewater facilities,
service, rates, financing, accounting or management of any nonprofit
sewer company. (L. 1997 2d Ex. Sess. H.B. 1 merged with S.B. 3, A.L. 2002
S.B. 984 & 985)



Revenues of a nonprofit sewer company for any fiscal year in
excess of the amount thereof necessary:

(1) To defray expenses of the company and of the operation and
maintenance of its facilities during such fiscal year;

(2) To pay interest and principal obligations of the company coming due
in such fiscal year;

(3) To finance, or to provide a reserve for the financing of, the
construction or acquisition by the company of additional facilities to
the extent determined by the board of directors;

(4) To provide a reasonable reserve for working capital;

(5) To provide a reserve for the payment of indebtedness of the company
maturing more than one year after the date of the incurrence of such
indebtedness in an amount not less than the total of the interest and
principal payments in respect thereof required to be made during the next
following fiscal year; and

(6) To provide a fund for education in the effective use of services made
available by the company;

shall, unless otherwise determined by a vote of the members, be
distributed by the company to its members as patronage refunds prorated
in accordance with the patronage of the company by the respective members
paid for during such fiscal year. (L. 1997 2d Ex. Sess. H.B. 1 merged
with S.B. 3)

Effective 12-23-97



Nothing herein contained shall be construed to prohibit the
payment by a company of all or any part of its indebtedness prior to the
date when the same shall become due. (L. 1997 2d Ex. Sess. H.B. 1 merged
with S.B. 3)

Effective 12-23-97



1. A nonprofit sewer company which has not commenced business
may dissolve voluntarily by delivering to the secretary of state articles
of dissolution, executed and acknowledged in duplicate on behalf of the
company by a majority of the incorporators, which shall state:

(1) The name of the nonprofit sewer company;

(2) The address of its principal office;

(3) The date of its incorporation;

(4) That the company has not commenced business;

(5) That the amount, if any, actually paid in on account of membership
fees, less any part thereof disbursed for necessary expenses, has been
returned to those entitled thereto and that all easements shall have been
released to the grantors;

(6) That no debt of the company remains unpaid; and

(7) That a majority of the incorporators elect that the company be
dissolved.

2. Such articles of dissolution shall be submitted to the secretary of
state for filing. (L. 1997 2d Ex. Sess. H.B. 1 merged with S.B. 3)

Effective 12-23-97



A nonprofit sewer company which has commenced business may
dissolve voluntarily and wind up its affairs in the following manner:

(1) The board of directors shall first recommend that the company be
dissolved voluntarily and thereafter the proposition that the company be
dissolved shall be submitted to the members of the company at any annual
or special meeting, the notice of which shall set forth such proposition.
The proposed voluntary dissolution shall be deemed to be approved upon
the affirmative vote of not less than a majority of the members;

(2) Upon such approval, a certificate of election to dissolve, herein
designated the "certificate", shall be executed and acknowledged in
duplicate on behalf of the company by its president or vice president,
and its corporate seal shall be affixed thereto and attested by its
secretary. The certificate shall state:

(a) The name of the nonprofit sewer company;

(b) The address of its principal office;

(c) The names and addresses of its directors; and

(d) The total number of members of the company and the number of members
who voted for and against the voluntary dissolution of the company.

The president or vice president executing the certificate shall also make
and annex thereto an affidavit stating that the provisions of this
subdivision and subdivision (1) of this section were duly complied with.
Such certificate and affidavit shall be submitted to the secretary of
state for filing;

(3) Upon the filing of the certificate and affidavit by the secretary of
state, the company shall cease to carry on its business except insofar as
may be necessary for the winding up thereof, but its corporate existence
shall continue until articles of dissolution have been filed by the
secretary of state;

(4) After the filing of the certificate and affidavit by the secretary of
state the board of directors shall immediately cause notice of the
winding up proceedings to be mailed to each known creditor and claimant
and to be published once a week for two successive weeks in a newspaper
of general circulation in the county in which the principal office of the
company is located;

(5) The board of directors shall become trustees and have full power to
wind up and settle the affairs of the company and shall proceed to
collect the debts owing to the company, convey and dispose of its
property and assets, pay, satisfy, and discharge its debts, obligations,
and liabilities, and do all other things required to liquidate its
business and affairs, and after paying or adequately providing for the
payment of all its debts, obligations and liabilities, shall distribute
the remainder of its property and assets among its members in proportion
to the aggregate patronage of each such member during the seven years
next preceding the date of such filing of the certificate, or, if the
company shall not have been in existence for such period, during the
period of its existence; and

(6) (a) When all debts, liabilities and obligations of the company have
been paid and discharged or adequate provision shall have been made
therefor, and all of the remaining property and assets of the company
shall have been distributed to the members pursuant to the provisions of
sections 393.825 to 393.861 and section 393.175, the board of directors
shall authorize the execution of articles of dissolution which shall
thereupon be executed and acknowledged on behalf of the company by its
president or vice president, and its corporate seal shall be affixed
thereto and attested by its secretary. Such articles of dissolution shall
recite in the caption that they are executed pursuant to sections 393.825
to 393.861 and section 393.175 and shall state:

a. The name of the nonprofit sewer company;

b. The address of the principal office of the company;

c. That the company has heretofore delivered to the secretary of state a
certificate of election to dissolve and the date on which the certificate
was filed by the secretary of state in the records of his office;

d. That all debts, obligations and liabilities of the company have been
paid and discharged or that adequate provision has been made therefor;

e. That all the remaining property and assets of the company have been
distributed among the members in accordance with the provisions of
sections 393.825 to 393.861 and section 393.175; and

f. That there are no actions or suits pending against the company;

(b) The president or vice president executing the articles of dissolution
shall also make and annex thereto an affidavit stating that the
provisions of this section were duly complied with;

(c) Such articles of dissolution and affidavit, accompanied by proof of
the publication required in this section, shall be submitted to the
secretary of state for filing. (L. 1997 2d Ex. Sess. H.B. 1 merged with
S.B. 3)

Effective 12-23-97



Sections 393.825 to 393.861 and section 393.175 shall be
construed liberally. The enumeration of any object, purpose, power,
manner, method or thing shall not be deemed to exclude like or similar
objects, purposes, powers, manners, methods or things. To the extent that
sections 393.825 to 393.861 and section 393.175 do* not speak to an
issue, the provisions applicable to mutual benefit not-for-profit
corporations or limited liability companies, as the nonprofit sewer
company may elect in its articles of incorporation, which are not
inconsistent with the provisions of sections 393.825 to 393.861 and
section 393.175 shall apply to nonprofit sewer companies. (L. 1997 2d Ex.
Sess. H.B. 1 merged with S.B. 3)

Effective 12-23-97

*Word "does" appears in original rolls.



The private property of the members of a nonprofit sewer company
shall be exempt from execution for the debts of the company and no member
shall be liable or responsible for any debts of the company. (L. 1997 2d
Ex. Sess. H.B. 1 merged with S.B. 3)

Effective 12-23-97



1. Nonprofit, membership corporations may be organized pursuant
to sections 393.900 to 393.951 only for the purpose of supplying water
for distribution, wholesale and treatment services within the state of
Missouri. Corporations which become subject to sections 393.900 to
393.951 are referred to in sections 393.900 to 393.951 as nonprofit water
companies. Five or more persons may organize a nonprofit water company
pursuant to sections 393.900 to 393.951.

2. The articles of incorporation of a nonprofit water company shall
recite in the caption that they are executed pursuant to sections 393.900
to 393.951, shall be signed and acknowledged in duplicate by at least
five of the incorporators and shall state:

(1) The name of the company;

(2) The address of its principal office;

(3) The names and addresses of the incorporators;

(4) The number of years the company is to continue, which may be any
number including perpetuity;

(5) The legal description of the territory in which the company intends
to operate;

(6) The names and addresses of the persons who shall constitute its first
board of directors;

(7) Whether the company chooses to operate pursuant to chapter 347, RSMo,
or chapter 355, RSMo;

(8) The method chosen for distributing the assets of the company upon
dissolution; and

(9) Any provisions not inconsistent with sections 393.900 to 393.951
deemed necessary or advisable for the conduct of its business and
affairs. Such articles of incorporation shall be submitted to the
secretary of state for filing. (L. 1999 H.B. 450 § 1 merged with S.B. 160
& 82 § 1)



Any corporation organized pursuant to the laws of this state for
the purpose, among others, of water treatment may be converted into a
nonprofit water company and become subject to sections 393.900 to 393.951
with the same effect as if originally organized pursuant to sections
393.900 to 393.951 by complying with the following requirements:

(1) The proposition for the conversion of such corporation into a
nonprofit water company and proposed articles of conversion to give
effect to such conversion shall be first approved by the board of
trustees or the board of directors, as the case may be, of such
corporation. The proposed articles of conversion shall recite in the
caption that they are executed pursuant to sections 393.900 to 393.951
and shall state:

(a) The name of the corporation prior to its conversion into a nonprofit
water company;

(b) The address of the principal office of such corporation;

(c) The date of the filing of the articles of incorporation of such
corporation in the office of the secretary of state;

(d) The statute or statutes pursuant to which such corporation was
organized;

(e) The name assumed by such corporation;

(f) A statement that such corporation elects to become a nonprofit,
membership corporation subject to sections 393.900 to 393.951;

(g) The manner and basis of converting either memberships in or shares of
stock of such corporation into memberships in the converted corporation
after completion of the conversion;

(h) The legal description of the territory in which the company intends
to operate;

(i) The method chosen for distributing the assets of the company upon
dissolution; and

(j) Any provisions not inconsistent with sections 393.900 to 393.951
deemed necessary or advisable for the conduct of the business and affairs
of such corporation;

(2) The proposition for the conversion of such corporation into a
nonprofit water company and the proposed articles of conversion approved
by the board of trustees or board of directors, as the case may be, of
such corporation shall then be submitted to a vote of the members or
stockholders, as the case may be, of such corporation at any duly held
annual or special meeting of such corporation, the notice of which shall
set forth full particulars concerning the proposed conversion. The
proposition for the conversion of such corporation into a nonprofit water
company and the proposed articles of conversion, with such amendments to
such articles as the members or stockholders of such corporation shall
choose to make, shall be deemed to be approved upon the affirmative vote
of not less than a majority of the members of such corporation, or, if
such corporation is a stock corporation, upon the affirmative vote of the
holders of not less than a majority of the capital stock of such
corporation;

(3) Upon such approval by the members or stockholders of such
corporation, articles of conversion in the form approved by such members
or stockholders shall be executed and acknowledged in duplicate on behalf
of such corporation by its president or vice president and its corporate
seal shall be affixed thereto and attested by its secretary. The
president or vice president executing such articles of conversion on
behalf of such corporation shall also make and annex to each copy of such
articles an affidavit stating that the provisions of sections 393.900 to
393.951 with respect to the approval of its trustees or directors and its
members or stockholders, of the proposition for the conversion of such
corporation into a nonprofit water company and such articles of
conversion were duly complied with. Such articles of conversion and
affidavit shall be submitted to the secretary of state for filing
pursuant to sections 393.900 to 393.951. The term "articles of
incorporation" as used in sections 393.900 to 393.951 shall be deemed to
include the articles of conversion of a converted corporation. (L. 1999
H.B. 450 § 2 merged with S.B. 160 & 82 § 2)



A nonprofit water company shall have power:

(1) To sue and be sued, in its corporate name;

(2) To have succession by its corporate name for the period stated in its
articles of incorporation or, if no period is stated in its articles of
incorporation, to have such succession perpetually;

(3) To adopt a corporate seal and alter the same at pleasure;

(4) To provide water treatment services to its members, to governmental
agencies and political subdivisions;

(5) To make loans to persons to whom water treatment is or will be
supplied by the company for the purpose of, and otherwise to assist such
persons in, installing therein plumbing fixtures, appliances, apparatus
and equipment of any and all kinds and character, and in connection with
such installation to purchase, acquire, lease, sell, distribute, install
and repair such plumbing fixtures, appliances, apparatus and equipment,
and to accept or otherwise acquire, and to sell, assign, transfer,
endorse, pledge, hypothecate and otherwise dispose of notes, bonds and
other evidences of indebtedness and any and all types of security for
such indebtedness;

(6) To make loans to persons to whom water treatment is or will be
supplied by the company for the purpose of, and otherwise to assist such
persons in, constructing, maintaining and operating commercial or
industrial plants or facilities;

(7) To construct, purchase, take, receive, lease as lessee or otherwise
acquire, and to own, hold, use, equip, maintain and operate, and to sell,
assign, transfer, convey, exchange, lease as lessor, mortgage, pledge or
otherwise dispose of or encumber, water provision or collection or
treatment systems, plants, lands, buildings, structures, dams and
equipment, and any and all kinds and classes of real or personal property
whatsoever, which shall be deemed necessary, convenient or appropriate to
accomplish the purpose for which the company is organized;

(8) To purchase or otherwise acquire, and to own, hold, use and exercise
and to sell, assign, transfer, convey, mortgage, pledge, hypothecate or
otherwise dispose of or encumber, franchises, rights, privileges,
licenses, rights-of-way and easements;

(9) To borrow money and otherwise contract indebtedness, and to issue
notes, bonds and other evidences of indebtedness, and to secure the
payment of such indebtedness by mortgage, pledge, deed of trust, or any
other encumbrance upon any or all of its then-owned or after-acquired
real or personal property, assets, franchises, revenues or income;

(10) To construct, maintain and operate water distribution and collection
and treatment plants and lines along, upon, under and across all public
thoroughfares, including without limitation, all roads, highways,
streets, alleys, bridges and causeways, and upon, under and across all
publicly owned lands;

(11) To exercise the power of eminent domain in the manner provided by
the laws of this state for the exercise of that power by corporations
constructing or operating electric transmission and distribution lines or
systems;

(12) To conduct its business and exercise any or all of its powers within
or without this state;

(13) To adopt, amend and repeal bylaws; and

(14) To do and perform any and all other acts and things, and to have and
exercise any and all other powers which may be necessary, convenient or
appropriate to accomplish the purpose for which the company is organized.
(L. 1999 H.B. 450 § 3)

*This section was enacted by both H.B. 450 § 3 and S.B. 160 & 82 § 3
during the 1st Regular Session of the 90th General Assembly, 1999. Due to
possible conflict, both versions are printed here.



A nonprofit water company shall have power:

(1) To sue and be sued, in its corporate name;

(2) To have succession by its corporate name for the period stated in its
articles of incorporation or, if no period is stated in its articles of
incorporation, to have such succession perpetually;

(3) To adopt a corporate seal and alter the same at pleasure;

(4) To provide water treatment services to its members, to governmental
agencies and political subdivisions;

(5) To make loans to persons to whom water treatment is or will be
supplied by the company for the purpose of, and otherwise to assist such
persons in, installing therein plumbing fixtures, appliances, apparatus
and equipment of any and all kinds and character, and in connection with
such installation to purchase, acquire, lease, sell, distribute, install
and repair such plumbing fixtures, appliances, apparatus and equipment,
and to accept or otherwise acquire, and to sell, assign, transfer,
endorse, pledge, hypothecate and otherwise dispose of notes, bonds and
other evidences of indebtedness and any and all types of security for
such indebtedness;

(6) To make loans to persons to whom water treatment is or will be
supplied by the company for the purpose of, and otherwise to assist such
persons in, constructing, maintaining and operating commercial or
industrial plants or facilities;

(7) To construct, purchase, take, receive, lease as lessee or otherwise
acquire, and to own, hold, use, equip, maintain and operate, and to sell,
assign, transfer, convey, exchange, lease as lessor, mortgage, pledge or
otherwise dispose of or encumber, water provision or collection or
treatment systems, plants, lands, buildings, structures, dams and
equipment, and any and all kinds and classes of real or personal property
whatsoever, which shall be deemed necessary, convenient or appropriate to
accomplish the purpose for which the company is organized;

(8) To purchase or otherwise acquire, and to own, hold, use and exercise
and to sell, assign, transfer, convey, mortgage, pledge, hypothecate or
otherwise dispose of or encumber, franchises, rights, privileges,
licenses, rights-of-way and easements;

(9) To borrow money and otherwise contract indebtedness, and to issue
notes, bonds and other evidences of indebtedness, and to secure the
payment of such indebtedness by mortgage, pledge, deed of trust, or any
other encumbrance upon any or all of its then-owned or after-acquired
real or personal property, assets, franchises, revenues or income;

(10) To construct, maintain and operate water distribution and collection
and treatment plants and lines along, upon, under and across all public
thoroughfares, including without limitation, all roads, highways,
streets, alleys, bridges and causeways, and upon, under and across all
publicly owned lands, provided that such nonprofit water company complies
with any public entity's authority to control the use of its
thoroughfares for the purposes described in this subsection;

(11) To exercise the power of eminent domain in the manner provided by
the laws of this state for the exercise of that power by corporations
constructing or operating electric transmission and distribution lines or
systems;

(12) To conduct its business and exercise any or all of its powers within
or without this state;

(13) To adopt, amend and repeal bylaws; and

(14) To do and perform any and all other acts and things, and to have and
exercise any and all other powers which may be necessary, convenient or
appropriate to accomplish the purpose for which the company is organized.
(L. 1999 S.B. 160 & 82 § 3)

*This section was enacted by both H.B. 450 § 3 and S.B. 160 & 82 § 3
during the 1st Regular Session of the 90th General Assembly, 1999. Due to
possible conflict, both versions are printed here.



A company may amend its articles of incorporation by complying
with the following requirements:

(1) The proposed amendment shall be first approved by the board of
directors and shall then be submitted to a vote of the members at any
annual or special meeting of such members, the notice of which shall set
forth the proposed amendment. The proposed amendment, with such changes
as the members shall choose to make to such amendment, shall be approved
on the affirmative vote of not less than two-thirds of those members
voting on such amendment at such meeting; and

(2) (a) Upon such approval by the members, articles of amendment shall be
executed and acknowledged in duplicate on behalf of the company by its
president or vice president and its corporate seal shall be affixed
thereto and attested by its secretary. The articles of amendment shall
recite in the caption that they are executed pursuant to sections 393.900
to 393.951 and shall state:

a. The name of the company;

b. The address of its principal office;

c. The date of the filing of its articles of incorporation in the office
of the secretary of state; and

d. The amendment to its articles of incorporation.

(b) The president or vice president executing such articles of amendment
shall also make and annex to each copy of such articles an affidavit
stating that the provisions of sections 393.900 to 393.951 were duly
complied with.

(c) Such articles of amendment and affidavit shall be submitted to the
secretary of state for filing. (L. 1999 H.B. 450 § 4 merged with S.B. 160
& 82 § 4)



A company may, upon authorization of a majority of the members
at any regular or special meeting, change the location of its principal
office by filing a certificate of change of principal office, executed
and acknowledged in duplicate by its president or vice president under
its seal attested by its secretary, in the office of the secretary of
state. Such company shall also, within thirty days after the filing of
such certificate of change of principal office, file certified copies of
its articles of incorporation and all amendments to such articles, if the
same are not already on file. (L. 1999 H.B. 450 § 5 merged with S.B. 160
& 82 § 5)



1. Articles of incorporation, amendment, consolidation, merger,
conversion, or dissolution, as the case may be, when executed and
acknowledged in duplicate and accompanied by such affidavits as may be
required by applicable provisions of sections 393.900 to 393.951, shall
be presented to the secretary of state for filing in the records of the
office of the secretary of state.

2. If the secretary of state shall find that the articles presented
conform to the requirements of sections 393.900 to 393.951, he or she
shall file one copy of the articles so presented in the records of the
office of the secretary of state and upon such filing the incorporation,
amendment, consolidation, merger, conversion or dissolution provided for
in such articles shall be in effect. (L. 1999 H.B. 450 § 6 merged with
S.B. 160 & 82 § 6)



The provisions of the securities law of this state shall not
apply to any note, bond or other evidence of indebtedness issued by any
nonprofit water company transacting business in this state pursuant to
sections 393.900 to 393.951 to the United States of America or to any
agency or instrumentality of the United States of America, or to any
mortgage or deed of trust executed to secure such indebtedness. The
provisions of the securities law of this state shall not apply to the
issuance of membership certificates by any nonprofit water company. (L.
1999 H.B. 450 § 7 merged with S.B. 160 & 82 § 7)



1. No person shall become a member of a nonprofit water company
unless such person shall agree to use services furnished by the company
when such shall be available through its facilities. The bylaws of a
company may provide that any person, including an incorporator, shall
cease to be a member of such company if such person shall fail or refuse
to use services made available by the company or if services shall not be
made available to such person by the company within a specified time
after such person shall have become a member of such company. Membership
in the company shall not be transferable, except as provided in the
bylaws. The bylaws may prescribe additional qualifications and
limitations with respect to membership.

2. An annual meeting of the members shall be held at such time as shall
be provided in the bylaws.

3. Special meetings of the members may be called by the board of
directors, by any three directors, by not less than ten percent of the
members or by the president.

4. Meetings of members shall be held at such place as may be provided in
the bylaws. In the absence of any such provisions, all meetings shall be
held in the city or town in which the principal office of the company is
located.

5. Except as otherwise provided in sections 393.900 to 393.951, written
or printed notice stating the time and place of each meeting of members
and, in the case of a special meeting, the purpose or purposes for which
the meeting is called, shall be given to each member, either personally
or by mail, not less than ten nor more than twenty-five days before the
date of the meeting.

6. Two percent of the members, present in person or by mail or proxy
shall constitute a quorum for the transaction of business at all meetings
of the members, unless the bylaws prescribe the presence of a greater
percentage of the members for a quorum. If less than a quorum is present
at any meeting, a majority of those present in person may adjourn the
meeting from time to time without further notice.

7. Each member shall be entitled to one vote on each matter submitted to
a vote at a meeting. Voting shall be in person, but, if the bylaws so
provide, may also be by proxy or by mail, or both. If the bylaws provide
for voting by proxy or by mail, they shall also prescribe the conditions
under which proxy or mail voting shall be exercised. (L. 1999 H.B. 450 §
8)

*This section was enacted by both H.B. 450 § 8 and S.B. 160 & 82 § 8
during the 1st Regular Session of the 90th General Assembly, 1999. Due to
possible conflict, both versions are printed here.



1. No person shall become a member of a nonprofit water company
unless such person shall agree to use services furnished by the company
when such shall be available through its facilities. The bylaws of a
company shall provide that any person, including an incorporator, shall
cease to be a member of such company if such person shall fail or refuse
to use services made available by the company or if services shall not be
made available to such person by the company within a specified time
after such person shall have become a member of such company. Membership
in the company shall not be transferable, except as provided in the
bylaws. The bylaws may prescribe additional qualifications and
limitations with respect to membership.

2. An annual meeting of the members shall be held at such time as shall
be provided in the bylaws.

3. Special meetings of the members may be called by the board of
directors, by any three directors, by not less than ten percent of the
members or by the president.

4. Meetings of members shall be held at such place as may be provided in
the bylaws. In the absence of any such provisions, all meetings shall be
held in the city or town in which the principal office of the company is
located.

5. Except as otherwise provided in sections 393.900 to 393.951, written
or printed notice stating the time and place of each meeting of members
and, in the case of a special meeting, the purpose or purposes for which
the meeting is called, shall be given to each member, either personally
or by mail, not less than ten nor more than twenty-five days before the
date of the meeting.

6. Two percent of the members, present in person or by mail or proxy
shall constitute a quorum for the transaction of business at all meetings
of the members, unless the bylaws prescribe the presence of a greater
percentage of the members for a quorum. If less than a quorum is present
at any meeting, a majority of those present in person may adjourn the
meeting from time to time without further notice.

7. Each member shall be entitled to one vote on each matter submitted to
a vote at a meeting. Voting shall be in person, but, if the bylaws so
provide, may also be by proxy or by mail, or both. If the bylaws provide
for voting by proxy or by mail, they shall also prescribe the conditions
under which proxy or mail voting shall be exercised. (L. 1999 S.B. 160 &
82 § 8)

*This section was enacted by both H.B. 450 § 8 and S.B. 160 & 82 § 8
during the 1st Regular Session of the 90th General Assembly, 1999. Due to
possible conflict, both versions are printed here.



Notwithstanding any other provision of law, the bylaws may
provide that the territory in which a company supplies water services may
be divided into two or more voting districts for the purpose of properly
distributing its directors over the area in which its members reside. In
such case the bylaws shall prescribe the manner in which such voting
districts shall function in the election of directors at annual meetings.
(L. 1999 H.B. 450 § 9 merged with S.B. 160 & 82 § 9)



1. The business and affairs of a company shall be managed by a
board of not less than five directors, each of whom shall be a member of
the company. The bylaws shall prescribe the number of directors, their
qualifications, other than those provided for in sections 393.900 to
393.951, the manner of holding meetings of the board of directors and of
the election of successors to directors who shall resign, die or
otherwise be incapable of acting. The bylaws may also provide for the
removal of directors from office and for the election of their
successors. Without approval of the members, directors shall not receive
any salaries for their services as directors. The bylaws may, however,
provide that a fixed fee and expenses of attendance, if any, may be
allowed to each director for attendance at each meeting of the board of
directors.

2. The directors of a company named in any articles of incorporation,
consolidation, merger or conversion, as the case may be, shall hold
office until the next following annual meeting of the members or until
their successors shall have been elected and qualified.

3. The bylaws shall provide that the directors shall be divided into
three classes, each class to be as nearly equal in number as possible,
with the term of office of the directors of the first class to expire at
the next succeeding annual meeting, the term of the second class to
expire at the second succeeding annual meeting and the term of the third
class to expire at the third succeeding annual meeting. At each annual
meeting after such classification, a number of directors equal to the
number of the class whose term expires at the time of such meeting shall
be elected to hold office until the third succeeding annual meeting.

4. A majority of the board of directors shall constitute a quorum.

5. The board of directors may exercise all of the powers of a company
except those conferred upon the members by sections 393.900 to 393.951,
its articles of incorporation or its bylaws. Nothing in sections 393.900
to 393.951 shall be deemed to prohibit a nonprofit water company from
contracting with any other person or entity for any services needed by
the nonprofit water company including, but not limited to, management or
operations services. (L. 1999 H.B. 450 § 10 merged with S.B. 160 & 82 §
10)



The officers of a nonprofit water company shall consist of a
president, vice president, secretary and treasurer, who shall be elected
annually. No person shall continue to hold the offices of president or
vice president after he or she shall have ceased to be a director. The
offices of secretary and of treasurer may be held by the same person and
need not be a member of the board of directors. The board of directors
may also elect or appoint such other officers, agents or employees as it
shall deem necessary or advisable and shall prescribe the powers and
duties of such officers, agents and employees. Any officer may be removed
from office and such officer's successor elected in the manner prescribed
in the bylaws. (L. 1999 H.B. 450 § 11 merged with S.B. 160 & 82 § 11)



1. Every nonprofit water company constructing, maintaining and
operating its water lines and treatment facilities shall construct,
maintain and operate such lines and facilities in conformity with the
rules and regulations relating to the manner and methods of construction,
maintenance and operation and as to safety of the public with other lines
and facilities now or hereafter from time to time prescribed by the
department of natural resources or by law for the construction,
maintenance and operation of such lines or systems. The jurisdiction,
supervision, powers and duties of the department of natural resources
shall extend to every such nonprofit water company so far as it concerns
the construction, maintenance and operation of the physical equipment of
such company to the extent of providing for the safety of employees and
the general public.

2. The public service commission shall not have jurisdiction over the
construction, maintenance or operation of the water facilities, service,
rates, financing, accounting or management of any nonprofit water
company; except that, the public service commission shall have authority
to approve the reorganization of any existing company regulated by the
public service commission. (L. 1999 H.B. 450 § 12 merged with S.B. 160 &
82 § 12)



Revenues of a nonprofit water company for any fiscal year in
excess of the amount necessary:

(1) To defray expenses of the company and of the operation and
maintenance of its facilities during such fiscal year;

(2) To pay interest and principal obligations of the company coming due
in such fiscal year;

(3) To finance, or to provide a reserve for the financing of, the
construction or acquisition by the company of additional facilities to
the extent determined by the board of directors;

(4) To provide a reasonable reserve for working capital;

(5) To provide a reserve for the payment of indebtedness of the company
maturing more than one year after the date of the incurrence of such
indebtedness in an amount not less than the total of the interest and
principal payments on such indebtedness that are required to be made
during the next following fiscal year; and

(6) To provide a fund for education in the effective use of services made
available by the company;

shall, unless otherwise determined by a vote of the members, be
distributed by the company to its members as patronage refunds prorated
in accordance with the patronage of the company by the respective members
paid for during such fiscal year. (L. 1999 H.B. 450 § 13 merged with S.B.
160 & 82 § 13)



Nothing in sections 393.900 to 393.951 shall be construed to
prohibit the payment by a company of all or any part of its indebtedness
prior to the date when such indebtedness shall become due. (L. 1999 H.B.
450 § 14 merged with S.B. 160 & 82 § 14)



1. A nonprofit water company which has not commenced business
may dissolve voluntarily by delivering to the secretary of state articles
of dissolution, executed and acknowledged in duplicate on behalf of the
company by a majority of the incorporators, which shall state:

(1) The name of the nonprofit water company;

(2) The address of its principal office;

(3) The date of its incorporation;

(4) That the company has not commenced business;

(5) That the amount, if any, actually paid in on account of membership
fees, less any part of such fees disbursed for necessary expenses, has
been returned to those entitled to such fees and that all easements shall
have been released to the grantors;

(6) That no debt of the company remains unpaid; and

(7) That a majority of the incorporators elect that the company be
dissolved.

2. Such articles of dissolution shall be submitted to the secretary of
state for filing. (L. 1999 H.B. 450 § 15 merged with S.B. 160 & 82 § 15)



A nonprofit water company which has commenced business may
dissolve voluntarily and wind up its affairs in the following manner:

(1) The board of directors shall first recommend that the company be
dissolved voluntarily and after such recommendation the proposition that
the company be dissolved shall be submitted to the members of the company
at any annual or special meeting, the notice of which shall set forth
such proposition. The proposed voluntary dissolution shall be deemed to
be approved upon the affirmative vote of not less than a majority of the
members;

(2) Upon such approval, a certificate of election to dissolve, designated
as the certificate, shall be executed and acknowledged in duplicate on
behalf of the company by its president or vice president, and its
corporate seal shall be affixed thereto and attested by its secretary.
The certificate shall state:

(a) The name of the nonprofit water company;

(b) The address of its principal office;

(c) The names and addresses of its directors; and

(d) The total number of members of the company and the number of members
who voted for and against the voluntary dissolution of the company.

The president or vice president executing the certificate shall also make
and annex to such certificate an affidavit stating that the provisions of
this subdivision and subdivision (1) of this section were duly complied
with. Such certificate and affidavit shall be submitted to the secretary
of state for filing;

(3) Upon the filing of the certificate and affidavit by the secretary of
state, the company shall cease to carry on its business except as
necessary for the winding up of such business, but its corporate
existence shall continue until articles of dissolution have been filed by
the secretary of state;

(4) After the filing of the certificate and affidavit by the secretary of
state the board of directors shall immediately cause notice of the
winding up proceedings to be mailed to each known creditor and claimant.
Such notice shall be published once a week for two successive weeks in a
newspaper of general circulation in the county in which the principal
office of the company is located;

(5) The board of directors shall become trustees and have full power to
wind up and settle the affairs of the company and shall proceed to
collect the debts owing to the company, convey and dispose of its
property and assets, pay, satisfy and discharge its debts, obligations
and liabilities and do all other things required to liquidate its
business and affairs, and after paying or adequately providing for the
payment of all its debts, obligations and liabilities, shall distribute
the remainder of its property and assets either:

(a) Among its members in proportion to the aggregate patronage of each
such member during the seven years next preceding the date of such filing
of the certificate, or, if the company shall not have been in existence
for such period, during the period of its existence; or

(b) For one or more exempt purposes as provided in Section 501(c)(3) of
the Internal Revenue Code of 1986, as amended, or to the federal
government or to the state or a local government or a political
subdivision of the state for a public purpose; and

(6) (a) When all debts, liabilities and obligations of the company have
been paid and discharged or adequate provision shall have been made for
the payment of such debts, liabilities and obligations and all of the
remaining property and assets of the company shall, pursuant to sections
393.900 to 393.951 and pursuant to the articles of incorporation of the
company, have been distributed to the members pursuant to sections
393.900 to 393.951, the board of directors shall authorize the execution
of articles of dissolution which shall then be executed and acknowledged
on behalf of the company by its president or vice president, and its
corporate seal shall be affixed thereto and attested by its secretary.
Such articles of dissolution shall recite in the caption that they are
executed pursuant to sections 393.900 to 393.951 and shall state:

a. The name of the nonprofit water company;

b. The address of the principal office of the company;

c. That the company has heretofore delivered to the secretary of state a
certificate of election to dissolve and the date on which the certificate
was filed by the secretary of state in the records of his office;

d. That all debts, obligations and liabilities of the company have been
paid and discharged or that adequate provision has been made for the
payment of such debts, obligations and liabilities;

e. That all the remaining property and assets of the company have been
distributed pursuant to sections 393.900 to 393.951 and the articles of
incorporation of the company; and

f. That there are no actions or suits pending against the company.

(b) The president or vice president executing the articles of dissolution
shall also make and annex to such articles an affidavit stating that the
provisions of this section were duly complied with.

(c) Such articles of dissolution and affidavit, accompanied by proof of
the publication required in this section, shall be submitted to the
secretary of state for filing. (L. 1999 H.B. 450 § 16 merged with S.B.
160 & 82 § 16)



Sections 393.900 to 393.951 shall be construed liberally. The
enumeration of any object, purpose, power, manner, method or thing shall
not be deemed to exclude like or objects, purposes, powers, manners,
methods or things. To the extent that sections 393.900 to 393.951 do not
speak to an issue, the provisions applicable to mutual benefit
not-for-profit corporations or limited liability companies, as the
nonprofit water company may elect in its articles of incorporation, which
are not inconsistent with the provisions of sections 393.900 to 393.951
shall apply to nonprofit water companies. (L. 1999 H.B. 450 § 17 merged
with S.B. 160 & 82 § 17)



The private property of the members of a nonprofit water company
shall be exempt from execution for the debts of the company and no member
shall be liable or responsible for any debts of the company. (L. 1999
H.B. 450 § 18 merged with S.B. 160 & 82 § 18)



1. Notwithstanding any other provision of law to the contrary,
except as provided in subsection 2 of this section, a claim against a
nonprofit water company dissolved pursuant to sections 393.900 to 393.951
for which the nonprofit water company has a contract of insurance which
will indemnify such corporation for any adverse result from such claim:

(1) Is not barred by the dissolution of such nonprofit water company;

(2) May be asserted at any time within the statutory period otherwise
authorized provided by law for such claims;

(3) May be asserted against the dissolved or dissolving nonprofit water
company, with service to be made upon the officer who signed the articles
of dissolution, and, at the request of the party bringing the suit, the
court shall appoint a defendant ad litem.

2. Judgments obtained in suits filed and prosecuted pursuant to this
section shall only be enforceable against one or more contracts of
insurance issued to the corporation, its officers, directors, agents,
servants or employees, indemnifying them, or any of them, against such
claims.

3. Suits against nonprofit water companies shall be brought either in the
county in which the cause of action accrued or in any county in which the
nonprofit water company has or prior to dissolution had an office for the
transaction of business. (L. 1999 S.B. 160 & 82 § 19)



As used in sections 393.1000 to 393.1006, the following terms
mean:

(1) "Appropriate pretax revenues", the revenues necessary to produce net
operating income equal to:

(a) The water corporation's weighted cost of capital multiplied by the
net original cost of eligible infrastructure system replacements,
including recognition of accumulated deferred income taxes and
accumulated depreciation associated with eligible infrastructure system
replacements which are included in a currently effective ISRS; and

(b) Recover state, federal, and local income or excise taxes applicable
to such income; and

(c) Recover all other ISRS costs;

(2) "Commission", the Missouri public service commission;

(3) "Eligible infrastructure system replacements", water utility plant
projects that:

(a) Replace or extend the useful life of existing infrastructure;

(b) Are in service and used and useful;

(c) Do not increase revenues by directly connecting the infrastructure
replacement to new customers; and

(d) Were not included in the water corporation's rate base in its most
recent general rate case;

(4) "ISRS", infrastructure system replacement surcharge;

(5) "ISRS costs", depreciation expenses and property taxes that will be
due within twelve months of the ISRS filing;

(6) "ISRS revenues", revenues produced through an ISRS, exclusive of
revenues from all other rates and charges;

(7) "Water corporation", every corporation, company, association, joint
stock company or association, partnership, and person, their lessees,
trustees, or receivers appointed by any court whatsoever, owning,
operating, controlling, or managing any plant or property, dam or water
supply, canal, or power station, distributing or selling for
distribution, or selling or supplying for gain any water to more than ten
thousand customers;

(8) "Water utility plant projects" may consist only of the following:

(a) Mains, and associated valves and hydrants, installed as replacements
for existing facilities that have worn out or are in deteriorated
condition;

(b) Main cleaning and relining projects; and

(c) Facilities relocations required due to construction or improvement of
a highway, road, street, public way, or other public work by or on behalf
of the United States, this state, a political subdivision of this state,
or another entity having the power of eminent domain provided that the
costs related to such projects have not been reimbursed to the water
corporation. (L. 2003 H.B. 208)



1. Notwithstanding any provisions of chapter 386, RSMo, and
this chapter to the contrary, as of August 28, 2003, a water corporation
providing water service in a county with a charter form of government and
with more than one million inhabitants may file a petition and proposed
rate schedules with the commission to establish or change ISRS rate
schedules that will allow for the adjustment of the water corporation's
rates and charges to provide for the recovery of costs for eligible
infrastructure system replacements made in such county with a charter
form of government and with more than one million inhabitants; provided
that an ISRS, on an annualized basis, must produce ISRS revenues of at
least one million dollars but not in excess of ten percent of the water
corporation's base revenue level approved by the commission in the water
corporation's most recent general rate proceeding. An ISRS and any future
changes thereto shall be calculated and implemented in accordance with
the provisions of sections 393.1000 to 393.1006. ISRS revenues shall be
subject to refund based upon a finding and order of the commission, to
the extent provided in subsections 5 and 8 of section 393.1006.

2. The commission shall not approve an ISRS for a water corporation in a
county with a charter form of government and with more than one million
inhabitants that has not had a general rate proceeding decided or
dismissed by issuance of a commission order within the past three years,
unless the water corporation has filed for or is the subject of a new
general rate proceeding.

3. In no event shall a water corporation collect an ISRS for a period
exceeding three years unless the water corporation has filed for or is
the subject of a new general rate proceeding; provided that the ISRS may
be collected until the effective date of new rate schedules established
as a result of the new general rate proceeding, or until the subject
general rate proceeding is otherwise decided or dismissed by issuance of
a commission order without new rates being established. (L. 2003 H.B. 208)



1. (1) At the time that a water corporation files a petition
with the commission seeking to establish or change an ISRS, it shall
submit proposed ISRS rate schedules and its supporting documentation
regarding the calculation of the proposed ISRS with the petition, and
shall serve the office of the public counsel with a copy of its petition,
its proposed rate schedules and its supporting documentation.

(2) Upon the filing of a petition, and any associated rate schedules,
seeking to establish or change an ISRS, the commission shall publish
notice of the filing.

2. (1) When a petition, along with any associated proposed rate
schedules, is filed pursuant to the provisions of sections 393.1000 to
393.1006, the commission shall conduct an examination of the proposed
ISRS.

(2) The staff of the commission may examine information of the water
corporation to confirm that the underlying costs are in accordance with
the provisions of sections 393.1000 to 393.1006, and to confirm proper
calculation of the proposed charge, and may submit a report regarding its
examination to the commission not later than sixty days after the
petition is filed. No other revenue requirement or ratemaking issues
shall be examined in consideration of the petition or associated proposed
rate schedules filed pursuant to the provisions of sections 393.1000 to
393.1006.

(3) The commission may hold a hearing on the petition and any associated
rate schedules and shall issue an order to become effective not later
than one hundred twenty days after the petition is filed.

(4) If the commission finds that a petition complies with the
requirements of sections 393.1000 to 393.1006, the commission shall enter
an order authorizing the water corporation to impose an ISRS that is
sufficient to recover appropriate pretax revenues, as determined by the
commission pursuant to the provisions of sections 393.1000 to 393.1006.

3. A water corporation may effectuate a change in its rate pursuant to
this section no more often than two times every twelve months.

4. In determining the appropriate pretax revenues, the commission shall
consider only the following factors:

(1) The current state, federal, and local income or excise tax rates;

(2) The water corporation's actual regulatory capital structure as
determined during the most recent general rate proceeding of the water
corporation;

(3) The actual cost rates for the water corporation's debt and preferred
stock as determined during the most recent general rate proceeding of the
water corporation;

(4) The water corporation's cost of common equity as determined during
the most recent general rate proceeding of the water corporation;

(5) The current property tax rate or rates applicable to the eligible
infrastructure system replacements;

(6) The current depreciation rates applicable to the eligible
infrastructure system replacements;

(7) In the event information called for in subdivisions (2), (3), and (4)
is unavailable and the commission is not provided with such information
on an agreed-upon basis, the commission shall refer to the testimony
submitted during the most recent general rate proceeding of the water
corporation and use, in lieu of any such unavailable information, the
recommended capital structure, recommended cost rates for debt and
preferred stock, and recommended cost of common equity that would produce
the average weighted cost of capital based upon the various
recommendations contained in such testimony.

5. (1) An ISRS shall be calculated based upon the amount of ISRS costs
that are eligible for recovery during the period in which the surcharge
will be in effect and upon the applicable customer class billing
determinants utilized in designing the water corporation's customer rates
in its most recent general rate proceeding. The commission shall,
however, only allow such surcharges to apply to classes of customers
receiving a benefit from the subject water utility plant projects or
shall prorate the surcharge according to the benefit received by each
class of customers; provided that the ISRS shall be applied in a manner
consistent with the customer class cost-of-service study recognized by
the commission in the water corporation's most recent general rate
proceeding, if applicable, and with the rate design methodology utilized
to develop the water corporation's rates resulting from its most recent
general rate proceeding.

(2) At the end of each twelve-month calendar period that an ISRS is in
effect, the water corporation shall reconcile the differences between the
revenues resulting from an ISRS and the appropriate pretax revenues as
found by the commission for that period and shall submit the
reconciliation and a proposed ISRS adjustment to the commission for
approval to recover or refund the difference, as appropriate, through
adjustment of an ISRS.

6. (1) A water corporation that has implemented an ISRS pursuant to the
provisions of sections 393.1000 to 393.1006 shall file revised rate
schedules to reset the ISRS to zero when new base rates and charges
become effective for the water corporation following a commission order
establishing customer rates in a general rate proceeding that
incorporates in the utility's base rates subject to subsections 8 and 9
of this section eligible costs previously reflected in an ISRS.

(2) Upon the inclusion in a water corporation's base rates subject to
subsections 8 and 9 of this section of eligible costs previously
reflected in an ISRS, the water corporation shall immediately thereafter
reconcile any previously unreconciled ISRS revenues as necessary to
ensure that revenues resulting from the ISRS match as closely as possible
the appropriate pretax revenues as found by the commission for that
period.

7. A water corporation's filing of a petition to establish or change an
ISRS pursuant to the provisions of sections 393.1000 to 393.1006 shall
not be considered a request for a general increase in the water
corporation's base rates and charges.

8. Commission approval of a petition, and any associated rate schedules,
to establish or change an ISRS pursuant to the provisions of sections
393.1000 to 393.1006 shall in no way be binding upon the commission in
determining the ratemaking treatment to be applied to eligible
infrastructure system replacements during a subsequent general rate
proceeding when the commission may undertake to review the prudence of
such costs. In the event the commission disallows, during a subsequent
general rate proceeding, recovery of costs associated with eligible
infrastructure system replacements previously included in an ISRS, the
water corporation shall offset its ISRS in the future as necessary to
recognize and account for any such overcollections.

9. Nothing contained in sections 393.1000 to 393.1006 shall be construed
to impair in any way the authority of the commission to review the
reasonableness of the rates or charges of a water corporation, including
review of the prudence of eligible infrastructure system replacements
made by a water corporation, pursuant to the provisions of section
386.390, RSMo.

10. The commission shall have authority to promulgate rules for the
implementation of sections 393.1000 to 393.1006, but only to the extent
such rules are consistent with, and do not delay the implementation of,
the provisions of sections 393.1000 to 393.1006. Any rule or portion of a
rule, as that term is defined in section 536.010, RSMo, that is created
under the authority delegated in this section shall become effective only
if it complies with and is subject to all of the provisions of chapter
536, RSMo, and, if applicable, section 536.028, RSMo. This section and
chapter 536, RSMo, are nonseverable and if any of the powers vested with
the general assembly pursuant to chapter 536, RSMo, to review, to delay
the effective date, or to disapprove and annul a rule are subsequently
held unconstitutional, then the grant of rulemaking authority and any
rule proposed or adopted after August 28, 2003, shall be invalid and
void. (L. 2003 H.B. 208)



As used in sections 393.1009 to 393.1015, the following terms
mean:

(1) "Appropriate pretax revenues", the revenues necessary to produce net
operating income equal to:

(a) The gas corporation's weighted cost of capital multiplied by the net
original cost of eligible infrastructure system replacements, including
recognition of accumulated deferred income taxes and accumulated
depreciation associated with eligible infrastructure system replacements
which are included in a currently effective ISRS; and

(b) Recover state, federal, and local income or excise taxes applicable
to such income; and

(c) Recover all other ISRS costs;

(2) "Commission", the Missouri public service commission;

(3) "Eligible infrastructure system replacements", gas utility plant
projects that:

(a) Do not increase revenues by directly connecting the infrastructure
replacement to new customers;

(b) Are in service and used and useful;

(c) Were not included in the gas corporation's rate base in its most
recent general rate case; and

(d) Replace or extend the useful life of an existing infrastructure;

(4) "Gas corporation", every corporation, company, association, joint
stock company or association, partnership and person, their lessees,
trustees or receivers appointed by any court whatsoever, owning,
operating, controlling, or managing any gas plant operating for public
use under privilege, license, or franchise now or hereafter granted by
the state or any political subdivision, county, or municipality thereof
as defined in section 386.020, RSMo;

(5) "Gas utility plant projects" may consist only of the following:

(a) Mains, valves, service lines, regulator stations, vaults, and other
pipeline system components installed to comply with state or federal
safety requirements as replacements for existing facilities that have
worn out or are in deteriorated condition;

(b) Main relining projects, service line insertion projects, joint
encapsulation projects, and other similar projects extending the useful
life or enhancing the integrity of pipeline system components undertaken
to comply with state or federal safety requirements; and

(c) Facilities relocations required due to construction or improvement of
a highway, road, street, public way, or other public work by or on behalf
of the United States, this state, a political subdivision of this state,
or another entity having the power of eminent domain provided that the
costs related to such projects have not been reimbursed to the gas
corporation;

(6) "ISRS", infrastructure system replacement surcharge;

(7) "ISRS costs", depreciation expense and property taxes that will be
due within twelve months of the ISRS filing;

(8) "ISRS revenues", revenues produced through an ISRS exclusive of
revenues from all other rates and charges. (L. 2003 H.B. 208)



1. Notwithstanding any provisions of chapter 386, RSMo, and
this chapter to the contrary, beginning August 28, 2003, a gas
corporation providing gas service may file a petition and proposed rate
schedules with the commission to establish or change ISRS rate schedules
that will allow for the adjustment of the gas corporation's rates and
charges to provide for the recovery of costs for eligible infrastructure
system replacements. The commission may not approve an ISRS to the extent
it would produce total annualized ISRS revenues below the lesser of one
million dollars or one-half of one percent of the gas corporation's base
revenue level approved by the commission in the gas corporation's most
recent general rate proceeding. The commission may not approve an ISRS to
the extent it would produce total annualized ISRS revenues exceeding ten
percent of the gas corporation's base revenue level approved by the
commission in the gas corporation's most recent general rate proceeding.
An ISRS and any future changes thereto shall be calculated and
implemented in accordance with the provisions of sections 393.1009 to
393.1015. ISRS revenues shall be subject to a refund based upon a finding
and order of the commission to the extent provided in subsections 5 and 8
of section 393.1009.

2. The commission shall not approve an ISRS for any gas corporation that
has not had a general rate proceeding decided or dismissed by issuance of
a commission order within the past three years, unless the gas
corporation has filed for or is the subject of a new general rate
proceeding.

3. In no event shall a gas corporation collect an ISRS for a period
exceeding three years unless the gas corporation has filed for or is the
subject of a new general rate proceeding; provided that the ISRS may be
collected until the effective date of new rate schedules established as a
result of the new general rate proceeding, or until the subject general
rate proceeding is otherwise decided or dismissed by issuance of a
commission order without new rates being established. (L. 2003 H.B. 208)



1. (1) At the time that a gas corporation files a petition with
the commission seeking to* establish or change an ISRS, it shall submit
proposed ISRS rate schedules and its supporting documentation regarding
the calculation of the proposed ISRS with the petition, and shall serve
the office of the public counsel with a copy of its petition, its
proposed rate schedules, and its supporting documentation.

(2) Upon the filing of a petition, and any associated rate schedules,
seeking to establish or change an ISRS, the commission shall publish
notice of the filing.

2. (1) When a petition, along with any associated proposed rate
schedules, is filed pursuant to the provisions of sections 393.1009 to
393.1015, the commission shall conduct an examination of the proposed
ISRS.

(2) The staff of the commission may examine information of the gas
corporation to confirm that the underlying costs are in accordance with
the provisions of sections 393.1009 to 393.1015, and to confirm proper
calculation of the proposed charge, and may submit a report regarding its
examination to the commission not later than sixty days after the
petition is filed. No other revenue requirement or ratemaking issues may
be examined in consideration of the petition or associated proposed rate
schedules filed pursuant to the provisions of sections 393.1009 to
393.1015.

(3) The commission may hold a hearing on the petition and any associated
rate schedules and shall issue an order to become effective not later
than one hundred twenty days after the petition is filed.

(4) If the commission finds that a petition complies with the
requirements of sections 393.1009 to 393.1015, the commission shall enter
an order authorizing the corporation to impose an ISRS that is sufficient
to recover appropriate pretax revenue, as determined by the commission
pursuant to the provisions of sections 393.1009 to 393.1015.

3. A gas corporation may effectuate a change in its rate pursuant to the
provisions of this section no more often than two times every twelve
months.

4. In determining the appropriate pretax revenue, the commission shall
consider only the following factors:

(1) The current state, federal, and local income tax or excise rates;

(2) The gas corporation's actual regulatory capital structure as
determined during the most recent general rate proceeding of the gas
corporation;

(3) The actual cost rates for the gas corporation's debt and preferred
stock as determined during the most recent general rate proceeding of the
gas corporation;

(4) The gas corporation's cost of common equity as determined during the
most recent general rate proceeding of the gas corporation;

(5) The current property tax rate or rates applicable to the eligible
infrastructure system replacements;

(6) The current depreciation rates applicable to the eligible
infrastructure system replacements; and

(7) In the event information pursuant to subdivisions (2), (3), and (4)
of this subsection is unavailable and the commission is not provided with
such information on an agreed-upon basis, the commission shall refer to
the testimony submitted during the most recent general rate proceeding of
the gas corporation and use, in lieu of any such unavailable information,
the recommended capital structure, recommended cost rates for debt and
preferred stock, and recommended cost of common equity that would produce
the average weighted cost of capital based upon the various
recommendations contained in such testimony.

5. (1) The monthly ISRS charge may be calculated based on a reasonable
estimate of billing units in the period in which the charge will be in
effect, which shall be conclusively established by dividing the
appropriate pretax revenues by the customer numbers reported by the gas
corporation in the annual report it most recently filed with the
commission pursuant to subdivision (6) of section 393.140, and then
further dividing this quotient by twelve. Provided, however, that the
monthly ISRS may vary according to customer class and may be calculated
based on customer numbers as determined during the most recent general
rate proceeding of the gas corporation so long as the monthly ISRS for
each customer class maintains a proportional relationship equivalent to
the proportional relationship of the monthly customer charge for each
customer class.

(2) At the end of each twelve-month calendar period the ISRS is in
effect, the gas corporation shall reconcile the differences between the
revenues resulting from an ISRS and the appropriate pretax revenues as
found by the commission for that period and shall submit the
reconciliation and a proposed ISRS adjustment to the commission for
approval to recover or refund the difference, as appropriate, through
adjustments of an ISRS charge.

6. (1) A gas corporation that has implemented an ISRS pursuant to the
provisions of sections 393.1009 to 393.1015 shall file revised rate
schedules to reset the ISRS to zero when new base rates and charges
become effective for the gas corporation following a commission order
establishing customer rates in a general rate proceeding that
incorporates in the utility's base rates subject to subsections 8 and 9
of this section eligible costs previously reflected in an ISRS.

(2) Upon the inclusion in a gas corporation's base rates subject to
subsections 8 and 9 of this section of eligible costs previously
reflected in an ISRS, the gas corporation shall immediately thereafter
reconcile any previously unreconciled ISRS revenues as necessary to
ensure that revenues resulting from the ISRS match as closely as possible
the appropriate pretax revenues as found by the commission for that
period.

7. A gas corporation's filing of a petition or change to** an ISRS
pursuant to the provisions of sections 393.1009 to 393.1015 shall not be
considered a request for a general increase in the gas corporation's base
rates and charges.

8. Commission approval of a petition, and any associated rate schedules,
to establish or change an ISRS pursuant to the provisions of sections
393.1009 to 393.1015 shall in no way be binding upon the commission in
determining the ratemaking treatment to be applied to eligible
infrastructure system replacements during a subsequent general rate
proceeding when the commission may undertake to review the prudence of
such costs. In the event the commission disallows, during a subsequent
general rate proceeding, recovery of costs associated with eligible
infrastructure system replacements previously included in an ISRS, the
gas corporation shall offset its ISRS in the future as necessary to
recognize and account for any such overcollections.

9. Nothing in this section shall be construed as limiting the authority
of the commission to review and consider infrastructure system
replacement costs along with other costs during any general rate
proceeding of any gas corporation.

10. Nothing contained in sections 393.1009 to 393.1015 shall be construed
to impair in any way the authority of the commission to review the
reasonableness of the rates or charges of a gas corporation, including
review of the prudence of eligible infrastructure system replacements
made by a gas corporation, pursuant to the provisions of section 386.390,
RSMo.

11. The commission shall have authority to promulgate rules for the
implementation of sections 393.1009 to 393.1015, but only to the extent
such rules are consistent with, and do not delay the implementation of,
the provisions of sections 393.1009 to 393.1015. Any rule or portion of a
rule, as that term is defined in section 536.010, RSMo, that is created
under the authority delegated in this section shall become effective only
if it complies with and is subject to all of the provisions of chapter
536, RSMo, and, if applicable, section 536.028, RSMo. This section and
chapter 536, RSMo, are nonseverable and if any of the powers vested with
the general assembly pursuant to chapter 536, RSMo, to review, to delay
the effective date, or to disapprove and annul a rule are subsequently
held unconstitutional, then the grant of rulemaking authority and any
rule proposed or adopted after August 28, 2003, shall be invalid and
void. (L. 2003 H.B. 208)

*Word "the" appears in original rolls.

**Word "to" does not appear in original rolls.



 
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