SB 1112 Summary

• Requires water or sewer system corporations with fewer than 2,000 service connections to obtain Public Utilities Commission approval before entering into transactions valued at $5,000,000 or less involving asset sales, leases, mergers, or acquisitions.

• Makes unapproved transactions voidable by the commission, which may then retroactively approve or conditionally approve the transaction if it determines the deal serves the best interests of both the corporation and ratepayers.

• Authorizes the Public Utilities Commission to delegate approval authority for these determinations to the director of the division responsible for investigating water and sewer system service quality issues.

• Took effect immediately upon Governor's approval on September 25, 2016, as an urgency statute to protect public health and safety of water and sewer systems.