Committee clears bill to let Jackson Water access tax‑exempt capital markets; sponsors say governance unaffected

Senate Bill 2575 was reported from the Senate Accountability, Efficiency, Transparency Committee after sponsors said the narrow change will allow the entity managing Jackson Water to access tax‑exempt capital markets without altering governance.

Sponsor (Senator, sponsor) and Senator Blunt described the bill as a targeted, non‑governance change aimed at improving Jackson Water’s financing options. The sponsor said federal receivers and a third‑party receiver have been supporting Jackson Water and that certain funds the receiver controls cannot currently be used to retire debt; the bill's language would allow a profit or nonprofit entity “solely for the purpose of complying with federal and state order” to be treated similarly to nonprofits for access to tax‑exempt capital.

Senator Blunt told the committee the measure “makes no change to the governance of the Jackson Water System today or in the future” and that treating the receiver as a nonprofit for financing is intended to allow access to tax-exempt markets and lower borrowing costs. The sponsor and supporters told senators the change responds to requests from the federal receiver and is aimed at stabilizing the water system’s finances so the receiver can continue operations.

Committee members raised no sustained opposition; Senator Blunt and others indicated support. The committee adopted a motion that the title is sufficient and that the bill do pass; the bill was reported from committee by voice vote.

Action: Title sufficient, do pass; reported from committee.