IN SB0358

Municipal utilities must continue service to properties outside municipality boundaries after contracts expire and cannot terminate service except for nonpayment.

Property owners must continue paying utility rates specified in expired contracts for one year or until new contracts are negotiated or the area is annexed into the municipality.

If parties fail to reach new contract agreements within one year of expiration, the matter must proceed to binding arbitration conducted by a mutually chosen arbitrator, with costs split equally between municipality and property owners.

The arbitrator's award must establish reasonable and just contract terms considering factors including alternative service providers and the municipality's infrastructure investment and cost recovery.

Either party may pursue legal action to enforce the arbitrator's award if the other party refuses to enter into a new contract according to the award's terms.