SB 55

Under current law, the state is required to pay 90% of the eligible costs of the

relocation or replacement of municipal utility facilities required by the construction

of a freeway. The current definition of "municipal utility facilities" includes utility

facilities owned by a town, village, city, town sanitary district, or metropolitan

sewerage district. Also under current law, under the safe drinking water loan

program, the state provides loans at subsidized interest rates to local governmental

units for projects for the construction or modification of public water systems. The

current definition of "local governmental units" includes cities, villages, towns,

counties, town sanitary districts, public inland lake protection and rehabilitation

districts, and municipal water districts.

Also under current law, certain local governmental units may contract with one

or more local governmental units to establish a joint local water authority, to jointly

produce, treat, store, transmit, distribute, purchase, sell, or exchange water.

This bill adds utility facilities owned by a joint local water authority to the

group of municipal utility facilities that is subject to state cost sharing when

relocation or replacement of the facilities is required by the construction of a freeway.

This bill also adds joint local water authorities to the group of local governmental

units that are eligible to participate in the safe drinking water loan program.