SF 2312 (LSB 5204SV (2) 88)

SENATE FILE 2312

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO SSB 3008)

(COMPANION TO HF 2452 BY COMMITTEE ON COMMERCE)

A BILL FOR

An Act relating to the disposal and acquisition of city water utilities, including at-risk systems.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  455B.199D  At-risk utility systems.
   1.  For purposes of this section, “at-risk system” means a city drinking water, sanitary sewage, or storm water drainage system that the city determines meets any of the following criteria:
   a.  The system serves a disadvantaged community as described in section 455B.199B.
   b.  The system includes a water treatment plant, water distribution system, or wastewater treatment plant that has not been operated by a competent operator pursuant to section 455B.223 within the previous twelve months.
   c.  The system violated one or more state or federal statutory or regulatory requirements in a manner that affects the safety, adequacy, or efficiency of its services or facilities.
   2.  A new owner of an at-risk system following disposal of the system by sale pursuant to section 388.2A may provide to the department proof of the availability of financial resources to meet system upgrade requirements and a revised timetable for compliance with department rules. The department shall agree to the revised timetable if the department determines the revised timetable is reasonable based on the information provided by the new owner.
    Sec. 2.  Section 476.84, subsection 2, Code 2020, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0e.  If the acquisition involves a utility that is an at-risk system as defined in section 455B.199D, the board shall issue a final order on an application for approval of the acquisition within one hundred eighty days of the filing date of the application.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the disposal and acquisition of city water utilities.
   The bill defines the term “at-risk system” as it relates to city water utilities. Under the bill, when a city utility system that is disposed of by sale is an at-risk system, the new owner may provide to the department of natural resources proof of the availability of financial resources to meet system upgrade requirements and provide a revised timetable for compliance with department rules. If the department determines that the revised timetable is reasonable based on the information provided by the new owner, the department shall agree to the timetable. 
   The bill requires the utilities board within the utilities division of the department of commerce to issue a final order within 180 days when a public utility applies for approval of the acquisition of an at-risk system.