Connecticut House Bill HB05346

Connecticut 2018 Regular Session

• Introduced: 3/1/18
• Refer: 3/1/18
• Report Pass: 3/29/18
• Refer: 4/6/18
• Report Pass: 4/12/18
• Refer: 4/18/18

Caption

An Act Concerning The Sale Of Municipal Water Supply And Wastewater Utility Assets.

Impact

The bill's passage significantly impacts state laws related to the oversight and sale of municipal utility assets. By formalizing the process for selling these assets, the bill seeks to streamline transactions between municipalities and private utilities and provides a clear methodology that must be followed for valuations and sales. This could potentially lead to increased efficiency in the provision of utility services, as private entities may bring in investment and modernization efforts that enhance infrastructure quality.

Summary

House Bill 5346 is an act concerning the sale of municipal water supply and wastewater utility assets. The bill outlines a regulatory framework for municipalities to negotiate the sale of their water supply and wastewater systems to private water companies. It requires municipalities to jointly engage utility valuation experts to conduct appraisals of the assets involved, determining their fair market value through established procedures. This legislation aims to facilitate the sale process while ensuring that valuations are based on rigorous assessments.

Sentiment

Discussions surrounding HB 5346 have shown a generally positive sentiment from proponents who argue that the bill is necessary for enhancing the operational efficiency of municipal utilities. They believe that allowing sales to private companies can lead to better management and service quality. Conversely, there are concerns from critics who fear that privatization might lead to increased costs for consumers and reduced public accountability. The sentiment reflects a common tension in utility regulation between privatization benefits and the risks of corporate control over essential services.

Contention

Notable points of contention include the potential for conflicts of interest in valuing municipal assets, as both municipalities and water companies have a vested interest in the negotiated sale price. Critics of the bill argue that this could lead to undervaluation of public assets, which would compromise the public interest. Additionally, concerns have been raised about the regulatory oversight from the Public Utilities Regulatory Authority and whether it can adequately ensure fair practices in the valuation and sale process.