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Local News » News

Change in laws may affect water district

By JIM GAINES, The Daily News, jgaines@bgdailynews.com
Friday, January 5, 2007 11:47 AM CST

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The laws under which Kentucky's rural water districts operate could change with this legislative session, if the district association finds a sponsor for its proposals.

“I think I've got somebody in mind, but they haven't totally confirmed,” said Gary Larimore, executive director of the Kentucky Rural Water Association.

A committee of the Kentucky Rural Water Association has worked for some time on proposed changes to Chapter 74 of the Kentucky Revised Statutes, which govern water districts' operation. Drafts of those ideas are floating around Frankfort and between governmental organizations.

It's not yet a bill, and could change substantially as various groups comment, Larimore said. If it does reach bill form, it could be submitted Feb. 6, he said.

Authors of the changes are still seeking comments from counties and other groups, so a final version could be very different from current drafts, Larimore said.

Officials of local utilities said they had not yet heard the committee's proposals.

“I have heard that Kentucky Rural Water is working on some revisions, but I haven't seen their final document on that,” said Alan Vilines, general manager of Warren County Water District.

Bowling Green Municipal Utilities officials are likewise unfamiliar with the potential legislation, said Miles McDaniel, BGMU manager of Business Development & Marketing.

Among identified changes in one current draft, the maximum length for which water districts could bond projects would increase from 30 to 40 years.

The same draft alters the way board members would be chosen in district mergers, taking it out of the hands of the local county judge-executive. Instead, members of the merging boards would agree on their new membership.

The “duties and powers” section of water district regulations describes the districts' legal reasons for existence and appropriate tasks. The draft would change that by deleting “acquire and install pipe and water laterals, and operate a water system for any district.” It simply says instead that the district's corporate powers will be exercised and managed by its board.

In recent years some water districts have expanded into other businesses, such as selling water heaters. But Larimore said the proposed change is not meant to open the way for more diverse business forays; water districts would still exercise the same powers, he said.

Since all proposed changes are tentative, and several drafts exist, Larimore limited his discussion of the draft to its general intent.

Another substantial section of change deals with sewer systems. Under current law, if a city with its own sewer service annexes an area previously run by a water district, the district could only run sewer services there until the city bought it out.

The draft change would allow a water district to operate sewer systems in a city annex indefinitely, and even add new customers in the area if they live closer to district lines than to city sewers before annexation.

The majority of proposed changes are minor “housekeeping” items, and the rural water association thinks other portions will be non-controversial, Larimore said.

Most water district rules haven't been changed since 1942, he said, even though the nature of management has changed substantially since water districts went under the jurisdiction of the state Public Service Commission in 1964.

“If you look at the majority of the statutes, they're old,” Larimore said.

There are about 120 rural water districts in Kentucky now, consolidated down from more than 200 in the 1970s, he said.

“Water districts are starting to become bigger business units, basically,” Larimore said. “They need a little more flexibility than current laws will allow.”


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