HB5157 Summary

• Limits the rate base for acquired water or sewer utilities to 20% of the lesser of the purchase price or fair market value, with shareholders of the acquiring utility bearing the difference.

• Requires three independent appraisals by disinterested, state-certified real estate appraisers to determine fair market value of the acquired utility.

• Mandates a referendum in the service area following public meeting and notice requirements, with the acquisition prohibited if less than a majority of electors vote in favor.

• Removes authorization for water or sewer utilities to file surcharges for costs associated with investments in qualifying infrastructure plant independent of other revenue requirement matters.

• Requires contractors and subcontractors performing work on acquired utilities to be responsible bidders, with project labor agreements required for new facilities and job offers extended to qualified existing employees.