Senate Bill 536 Summary

• Creates Viable Utility Reserve funded by $1 monthly surcharge on residential and nonresidential water and wastewater accounts; surcharge expires June 30, 2029.

• Establishes grant program from Viable Utility Reserve for water/wastewater infrastructure projects, including asset assessments, rate studies, merger/regionalization feasibility studies, and physical interconnections; grants capped at $15 million per unit or $30 million for merged utilities.

• Requires Local Government Commission approval of all Viable Utility Reserve grants and authorizes performance measures and conditions on awards.

• Defines "distressed units" as water/wastewater systems unable to generate sufficient revenue; requires distressed units to conduct asset assessments, participate in mandatory training, and develop action plans addressing infrastructure, financial management, and governance.

• Creates statutory process for merger and dissolution of water and wastewater authorities under Environmental Management Commission authority; requires public hearings and submission of financial/operational documentation before merger or dissolution becomes effective June 30 following resolution adoption.