H-1457

   Amend House File 655 as follows:
   1.  Page 1, before line 1 by inserting: 
<DIVISION ___
LOCAL OPTION SALES AND SERVICES TAXES>
   2.  Page 13, line 23, after <this> by inserting <division of this>
   3.  Page 14, line 5, after <This> by inserting <division of this>
   4.  Page 14, line 7, after <this> by inserting <division of this>
   5.  Page 14, after line 10 by inserting: 
<DIVISION ___
GOVERNANCE OF CERTAIN WATER UTILITIES

   Sec. ___.  NEW SECTION.  388.12  Water utility board discontinuance and dissolution —— governing body provisions.
   1.  Notwithstanding the provisions of section 388.2 to the contrary, upon the effective date of this division of this Act, the board of water works trustees of a water utility in cities in a statistical area described in subsection 5, with a population greater than thirty-nine thousand as determined by the most recent federal decennial census, shall be discontinued, dissolved, and shall cease to be the governing body of the water utility and the city councils of the cities described in this subsection shall thereafter be the governing bodies of the water utilities and the city councils of the cities shall have all the powers and authorities of the city with respect to the acquisition by purchase, condemnation, or otherwise lease, sale, or other disposition of the property and facilities of the water utility, and the management, control, and operation of all facets of the water utility, subject to the requirements, terms, covenants, conditions, and provisions of any resolutions authorizing the issuance of revenue bonds, pledge orders, or other obligations which are payable from the revenues of the water utility which are then outstanding. Any property not held in the name of the city as required under section 388.4, subsection 2, shall be retitled in the name of the appropriate city as soon as legally practicable.
   2.  The city managers employed by the city councils that set the compensation of the members of a board of a water utility under this section shall designate the administrator of a department or administrative division of that city to be the manager of the water supply system in that city subject to the approval of the city council. The administrator designated under this subsection shall not be considered a civil service employee under section 400.17 and shall serve under the control and direction of the city manager of that city. The administrator may be terminated at will, subject to any contract in place on the effective date of this division of this Act.
   3.  On and after the effective date of this division of this Act and continuing until January 1, 2018, a water utility of any city subject to this section is prohibited from expending any moneys or staff time to plan, design, or construct any new water plant or other water-producing facility other than a facility currently under contract for construction or a distribution facility that will transport or store treated water but not produce water.
   4.  Notwithstanding any provision of this section to the contrary, no provision or application of this section shall in any manner restrict or otherwise impair a water utility from performing its obligations and complying with the terms, conditions, covenants, requirements, restrictions of federal or state laws, regulations, or rules, bond resolutions, obligations, or agreements relating to outstanding indebtedness of the water utility, existing chapter 28E agreements and contracts, including without limitation contracts related to the operations, maintenance, repair, or improvements of the water utility.
   5.  The city councils described in this section shall honor all existing water purchase arrangements with the cities and rural water districts which are purchasing water from the water utility prior to the effective date of this division of this Act.
   6.  For the purposes of this section, “water utility” means a city utility that provides water services, that is located in a federally designated standard metropolitan statistical area that has a population greater than five hundred thousand, as shown by the most recent federal decennial census, and that is located entirely within the state.
   Sec. ___.  REGIONAL WATER PRODUCTION UTILITY STUDY COMMITTEE.
   1.  A regional water production utility study committee shall be convened on or before May 1, 2017, to begin discussions regarding the potential for creating a regional water production utility.
   2.  a.  The committee shall be comprised of the following members:
   (1)  The mayor of each city that is a member of a waste water reclamation authority. 
   (2)  The city manager or city administrator of each city that is a member of a waste water reclamation authority.
   (3)  The general manager of each rural water district that, as of the effective date of this Act, purchases bulk water from water utilities impacted by the Act.
   (4)  The mayor and city manager of a city, if the city’s sanitary sewer district is a member of a waste water reclamation authority.
   b.  For the purposes of this subsection, “waste water reclamation authority” shall refer to a waste water reclamation authority that is located in a federally designated standard metropolitan statistical area that has a population greater than five hundred thousand, as shown by the most recent federal decennial census, and that is located entirely within the state.
   3.  An executive committee consisting of one member from each city serving on the study committee with a population in excess of thirty-nine thousand, as determined by the most recent federal decennial census, shall be responsible for developing recommendations on the governance structure and operations of a regional water production utility for consideration by the study committee.
   4.  The study committee shall use all good faith efforts to agree on the governance structure and operation of a potential regional water production utility by December 31, 2017.
   5.  If a city council described in this Act determines that a rate increase is required after the effective date of this Act but before a regional water production utility has been formed and is operating, any such rate increase which is not the same percentage increase for all cities and rural water districts with purchase arrangements shall be calculated by the executive committee prior to presentation to the city council for approval.
   6.  The executive committee of the study committee shall submit a report to the general assembly and the legislative council by January 15, 2018, regarding the status of agreeing to a governance structure and the operation of a potential regional water production utility.
   7.  If a regional water production utility has not been established by the cities described in this Act prior to January 1, 2019, the water production assets of the water utility shall revert to the water utility governance and operation structure in existence prior to the effective date of this Act.
   Sec. ___.  SEVERABILITY.  If any word, phrase, clause, sentence, paragraph, or provision of this division of this Act or the application of such to any person or circumstance is declared invalid, illegal, or unenforceable, or unconstitutional for any reason, the remaining provisions or applications of this division of this Act shall not be affected by such declaration and to this end, the provisions of this division of this Act are severable.
   Sec. ___.  EFFECTIVE UPON ENACTMENT.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.>
   6.  Title page, line 1, after <to> by inserting <local government matters, including>
   7.  Title page, line 2, after <taxes> by inserting <and the governance of certain water utilities, and including effective date provisions>
   8.  By renumbering, redesignating, and correcting internal references as necessary.

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KLEIN of Washington

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PAUSTIAN of Scott

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HOLZ of Plymouth

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MOMMSEN of Clinton

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HEIN of Jones

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WILLS of Dickinson

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KERR of Louisa

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BAUDLER of Adair

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WORTHAN of Buena Vista

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DEYOE of Story

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WHEELER of Sioux

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MAXWELL of Poweshiek

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BEST of Carroll

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SIECK of Mills

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MOHR of Scott

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ZUMBACH of Linn

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KAUFMANN of Cedar