House File 516 H-1236 Amend House File 516 as follows: 1 1. Page 1, line 28, by striking < four > and 2 inserting < two > 3 2. Page 2, line 27, by striking < four > and 4 inserting < four two > 5 3. Page 2, line 28, by striking < four > and 6 inserting < two > 7 4. Page 3, after line 4 by inserting: 8 < Sec. ___. Section 357A.13, Code 2013, is amended 9 to read as follows: 10 357A.13 Selling water. 11 1. If the capacity of the district’s facilities 12 permits, the district may sell water by contract to 13 any city, other district, or other person, public or 14 private, not within the boundaries of a district. 15 2. Notwithstanding any other provision of law to 16 the contrary, a rural water district or rural water 17 association may sell water by contract to an owner of 18 real property located in a city or within two miles of 19 a city who is not receiving water service as follows: 20 a. An owner of real property located in a city 21 or within two miles of a city who is not receiving 22 water service from a city, city utility, or joint 23 water utility may seek to contract with a district or 24 association to receive water service. The owner shall 25 provide written notification to the city clerk of the 26 city responsible for providing, or of a city that has 27 adopted an ordinance reserving the right to provide, 28 water service to the property that the owner is seeking 29 to enter into a contract with a district or association 30 to receive water service. 31 b. (1) After providing notification pursuant to 32 paragraph “a” , a property owner may receive offers 33 for the provision of water service from a district, 34 association, city, city utility, or joint water utility 35 for the provision of water service. 36 (2) If the property owner wishes to accept an 37 offer for the provision of water service pursuant to 38 this subsection, the property owner shall provide 39 written notification of the preferred offer to the 40 city clerk of the city responsible for providing, or 41 of a city that has adopted an ordinance reserving the 42 right to provide, water service to the property and 43 shall include in writing with the notice all terms and 44 conditions of the preferred offer. This notice shall 45 constitute an offer to the city to meet the terms and 46 conditions of the preferred offer. 47 (3) The property owner may accept a preferred offer 48 if, as provided in paragraph “c” , the city responsible 49 for providing, or of a city that has adopted an 50 -1- HF516.1348 (2) 85 aw/sc 1/ 3 #1. #2. #3. #4.

ordinance reserving the right to provide, water service 1 waives its right to provide water service to the 2 property. 3 c. Upon receiving notice provided pursuant to 4 paragraph “b” , a city may waive the right to provide 5 water service to the property, may accept the offer 6 from the property owner to provide service, or may 7 reserve the right to substantially meet the terms and 8 conditions of the preferred offer included with the 9 notification. The city receiving notice pursuant to 10 paragraph “b” waives the right to provide water service 11 to the property if the city does not respond within 12 ninety days following the receipt of such notice. > 13 5. Page 5, after line 5 by inserting: 14 < Sec. ___. Section 364.4, Code 2013, is amended by 15 adding the following new subsection: 16 NEW SUBSECTION . 6. Notwithstanding any other 17 provision of law to the contrary, a city may sell 18 water by contract to an owner of real property if that 19 property is not receiving water service and is located 20 in a rural water district, an association’s service 21 area, in another city, or within two miles of another 22 city as follows: 23 a. An owner of real property located in a district, 24 an association’s service area, a city, or within two 25 miles of a city who is not receiving water service 26 from a district, association, city, city utility, or 27 joint water utility may seek to contract with a city 28 to receive water service. The owner shall provide 29 written notification to the board of directors of 30 the district or association or the city clerk of the 31 city responsible for providing, or a city that has 32 adopted an ordinance pursuant to subsection 3 reserving 33 the right to provide, water service to the property 34 that the owner is seeking to enter into a contract 35 to receive water service from another district, 36 association, or city, as applicable. 37 b. (1) After providing notification pursuant to 38 paragraph “a” , a property owner may receive offers 39 for the provision of water service from a district, 40 association, city, city utility, or joint water utility 41 for the provision of water service. 42 (2) If the property owner wishes to accept an 43 offer for the provision of water service pursuant to 44 this subsection, the property owner shall provide 45 written notification to the board of directors of the 46 district or association or the city clerk of the city 47 responsible for providing, or a city that has adopted 48 an ordinance pursuant to subsection 3 reserving the 49 right to provide, water service to the property of the 50 -2- HF516.1348 (2) 85 aw/sc 2/ 3 #5.

preferred offer and shall include in writing with the 1 notice all terms and conditions of the preferred offer. 2 This notice shall constitute an offer to the district, 3 association, or city, as applicable, to meet the terms 4 and conditions of the preferred offer. 5 (3) The property owner may accept a preferred 6 offer if, as provided in paragraph “c” , the district, 7 association, or city responsible for providing, or 8 a city that has adopted an ordinance pursuant to 9 subsection 3 reserving the right to provide water 10 service waives its right to provide water service to 11 the property. 12 c. Upon receiving notice provided pursuant to 13 paragraph “b” , the district, association, or city, 14 as applicable, may waive the right to provide water 15 service to the property, may accept the offer from the 16 property owner to provide service, or may reserve the 17 right to substantially meet the terms and conditions 18 of the preferred offer included with the notification. 19 The district, association, or city receiving notice 20 pursuant to paragraph “b” waives the right to provide 21 water service to the property if the district, 22 association, or city does not respond within ninety 23 days following the receipt of such notice. > 24 6. Title page, line 1, by striking < rural > and 25 inserting < certain > 26 7. Title page, line 4, after < city > by inserting 27 < and providing rights to certain owners of property not 28 receiving water service > 29 8. By renumbering, redesignating, and correcting 30 internal references as necessary. 31 ______________________________ DEYOE of Story -3- HF516.1348 (2) 85 aw/sc 3/ 3 #6. #7. #8.