ENTITLED, An Act to allow regional intergovernmental cooperation for sewer utilities and to
provide for the establishment of rates and charges.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That chapter 9-48 be amended by adding thereto a NEW SECTION to read as follows:
Notwithstanding any other provision in this chapter, any municipality, sanitary district, other
political subdivision of this state, or any combination thereof which maintains, has installed, or plans
to install sewer utilities for public use may establish, by ordinance or resolution, fair and equitable
rates and charges for sewer utilities to be paid by the users of the sewer utilities and others connected
thereto. The rates and charges may be established to recover past capital costs and pay for the capital
costs of developing new capacity. For the purposes of this section, the term, capital costs, includes:
(1) Costs of construction or expansion of infrastructure that is necessary to serve a new
development, including the design, surveying, engineering, environmental, and other
professional fees that are directly related to the construction or expansion of the sewer
utility;
(2) Land acquisition costs including the purchase of interest in land, any court award or
settlement, appraisal, relocation service, negotiation service, title insurance, expert
witness, attorney, and other professional fees that are directly related to the land
acquisition;
(3) Debt service;
(4) Rate of return including a risk premium for any potential default; and
(5) Directly related expenses incurred in preparing or updating the comprehensive plan or
zone improvement plan, including all administrative, consulting, attorney, and other
professional fees.
The rates and charges may be assessed separately or added to other rates established pursuant to
this chapter. Two or more municipalities, sanitary districts, political subdivisions of this state, or any
combination thereof, may enter into an agreement or contract with each other, or otherwise enter into
an agreement as permitted by law, for the provision of sewer utilities. For the purposes of this
section, the term, sewer utility, means any main, trunk, service sewer, sanitary and storm sewer, and
septic or treatment facility, drain, pumping station, lift station, interceptor, force main, manhole, flow
equalization structure, and any other equipment, material, and facility related thereto.
An Act to allow regional intergovernmental cooperation for sewer utilities and to provide for the
establishment of rates and charges.
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I certify that the attached Act
originated in the
HOUSE as Bill No. 1120
____________________________
Chief Clerk
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____________________________
Speaker of the House
____________________________
Chief Clerk
____________________________
President of the Senate
____________________________
Secretary of the Senate
House Bill No. 1120
File No. ____
Chapter No. ______
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Received at this Executive Office
this _____ day of _____________ ,
20____ at ____________ M.
By _________________________
for the Governor
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The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
____________________________
Governor
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STATE OF SOUTH DAKOTA,
ss.
Office of the Secretary of State
Filed ____________ , 20___
at _________ o'clock __ M.
____________________________
Secretary of State
By _________________________
Asst. Secretary of State
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