_____________ bill NO. _____________

INTRODUCED BY _________________________________________________

By Request of the ****

A BILL FOR AN ACT ENTITLED: "AN ACT authorizing a county water and/or sewer district to pursue consolidation with a municipality when more than 60% of the district's customers reside within the municipality's city limits and the district purchases its water from the municipality; providing a requirement for the consolidation plan; and providing for the distinction consideration of and outcomes for a district territory within city limits and outside of city limits."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

NEW SECTION. Section 1. Consolidation plan. (1) If more than 60% of a district's customers reside within the city limits of a municipality and the district purchases its water from the municipality, the district may initiate a consolidation plan with the municipality.

(2)        The consolidation plan must:

(a)        provide for adjustment of existing bonded indebtedness and other obligations in a manner that will provide for a fair and equitable distribution of the burden of debt service;

(b)        provide for the establishment of the service areas;

(c)        outline the transfer or other disposition of property and other rights, claims, or assets of consolidation under this section;

(d)        provide for the transfer, reorganization, dissolution, absorption, or other adjustment of boundaries as necessary;

(e)        consider separately the disposition of the district territory within the city limits and the district territory outside of the city limits; and

(f)         include any other provisions that are consistent with state law.

(3)        The consolidation plan may grant the municipality the authority to transfer all rights-of-way or other entities without requiring the municipality to hold a referendum.

(4)        If the district territory outside of the city limits is not consolidated into the municipal facilities under this section, the district shall:

(a)        continue to operate services for the territory outside of the city limits; or

(b)        request the board of county commissioners to assume the district's provision of services and financial obligations for the territory outside of the city limits.

NEW SECTION. Section 2. Codification instruction. [Section 1] is intended to be codified as an integral part of Title 7, chapter 13, part 23, and the provisions of Title 7, chapter 13, part 23, apply to [section 1].