House File 341 - Introduced



                                    HOUSE FILE       
                                    BY  HUSER, ARNOLD, BOAL, FORD,
                                        JACOBS, MADDOX, McCARTHY,
                                        OLDSON, R. OLSON, PETERSEN,
                                        RAECKER, and TOMENGA


    Passed House, Date                Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing procedures for a rural water district to
  2    transfer to a city utility its right to provide water service
  3    and for dissolution of the district.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1367YH 81
  6 eg/sh/8

PAG LIN



  1  1    Section 1.  NEW SECTION.  357A.25  SALE, CONVEYANCE, OR
  1  2 DISPOSAL OF ASSETS AND RIGHTS.
  1  3    1.  AUTHORITY.  In addition to all other powers granted to
  1  4 the board, the board may sell, convey, or otherwise dispose of
  1  5 all or any portion of the real property or personal property
  1  6 of the district and all or any portion of the district's
  1  7 rights, including the relinquishment of the district's right
  1  8 to provide water service to any area within the boundaries of
  1  9 the district in order to transfer the district's duties and
  1 10 obligations to a city utility.
  1 11    2.  PREREQUISITES.  Prior to a sale, conveyance, or
  1 12 disposition of any real property, personal property, or rights
  1 13 of a district, that includes a relinquishment to a city
  1 14 utility of the district's right to provide water service, the
  1 15 following shall occur:
  1 16    a.  The board shall provide for the discharge of all of the
  1 17 district's indebtedness and obligations.
  1 18    b.  The city utility shall agree to provide water service
  1 19 to the participating members of the district immediately
  1 20 following such sale, conveyance, or disposition.
  1 21    c.  The requirements of subsection 3 are satisfied.
  1 22    3.  PETITION.  The board shall file a petition with the
  1 23 auditor requesting relinquishment to a city utility of the
  1 24 district's right to provide water service.  The petition shall
  1 25 do all of the following:
  1 26    a.  Describe by section, or fraction thereof, and by
  1 27 township and range, the real property in the area which is to
  1 28 be detached from the district.
  1 29    b.  Identify the city utility who will initially provide
  1 30 water service to the area immediately following the sale,
  1 31 conveyance, or disposition.
  1 32    c.  Assert that the area described in paragraph "a" can be
  1 33 adequately and economically served by the city utility.
  1 34    4.  HEARING == NOTICE.  Upon the filing of the petition,
  1 35 the auditor shall prepare for a hearing on the petition as
  2  1 required by section 357A.3.  The notice of the hearing shall
  2  2 include all of the following:
  2  3    a.  The location of the area as described or shown by the
  2  4 petition.
  2  5    b.  The time and place of the hearing fixed by the
  2  6 supervisors for the hearing on the petition.
  2  7    c. A statement that all owners or tenants of real property
  2  8 within the area described may appear and be heard.
  2  9    5.  FINDINGS == ORDER.  After the hearing, the supervisors
  2 10 shall approve the relinquishment to a city utility of the
  2 11 district's right to provide water service to the area and
  2 12 order that the area be detached from the district, if the
  2 13 supervisors find the following:
  2 14    a.  The petition meets all of the requirements of
  2 15 subsection 3.
  2 16    b.  It appears from the information available to the
  2 17 supervisors that the information included in the petition is
  2 18 accurate.
  2 19    c.  Notice of hearing has been given.
  2 20    d.  The relinquishment to a city utility of the district's
  2 21 right to provide water service to the area is in the best
  2 22 interests of the residents of the area.
  2 23    The supervisor's order of detachment is effective as of the
  2 24 date the district files a notice with the auditor stating that
  2 25 such sale, conveyance, or other disposition has occurred.  The
  2 26 order shall be published in the same newspaper which published
  2 27 the notice of the hearing.  This section shall not preclude
  2 28 any procedure for detaching an area from a district pursuant
  2 29 to section 357A.16 or as otherwise provided by law.
  2 30    6.  EXEMPTION.  The requirements of this section shall not
  2 31 apply to a relinquishment to a city of the district's right to
  2 32 provide water service within the corporate limits of a city or
  2 33 within two miles of the corporate limits of a city if the city
  2 34 agrees to supply water service for residents of the area no
  2 35 longer served by the district.  A relinquishment under this
  3  1 subsection shall render the area to be served by the city
  3  2 utility detached from the district as of the date the district
  3  3 files a notice with the auditor describing the area to be
  3  4 detached.
  3  5    Sec. 2.  NEW SECTION.  357A.26  DISSOLUTION.
  3  6    1.  After a district relinquishes its right to provide
  3  7 water service to any area within the boundaries of the
  3  8 district in order to transfer the district's duties and
  3  9 obligations to a city utility pursuant to section 357A.25, and
  3 10 a supervisor's order for detachment is effective, the board
  3 11 may file a petition for dissolution of the district with the
  3 12 auditor.  The petition shall state all of the following:
  3 13    a.  That the district owns no property and that the
  3 14 district has relinquished all of the district's right to
  3 15 provide water service in the district's boundaries in
  3 16 accordance with section 357A.25.
  3 17    b.  That all of the district's obligations and indebtedness
  3 18 have been discharged or provision for the discharge of such
  3 19 obligations and indebtedness has been made.
  3 20    2.  Upon receipt of a petition for dissolution, the auditor
  3 21 shall inform the supervisors who shall fix a time for
  3 22 consideration of the petition.  The supervisors may, but shall
  3 23 not be required to, hold a hearing on the petition.  After
  3 24 consideration of the petition, and after the hearing if one is
  3 25 held, the supervisors shall ascertain the following:
  3 26    a.  Whether the petition meets all of the requirements of
  3 27 this section.
  3 28    b.  Whether each allegation included in the petition is
  3 29 factual from all information available to the supervisors.
  3 30    If the supervisors' finding on each of the points in
  3 31 paragraphs "a" and "b" is positive, the supervisors shall
  3 32 declare the district dissolved.  The supervisors shall notify
  3 33 the secretary of the district of its action, and the secretary
  3 34 shall within thirty days deliver to the auditor all records,
  3 35 maps, plans, and files of the dissolved district.
  4  1                           EXPLANATION
  4  2    This bill provides a rural water district with the
  4  3 authority to transfer the district's real and personal
  4  4 property and all rights, including the right to provide water
  4  5 service for any area within the district's boundaries, to a
  4  6 city utility for the purpose of having the city utility assume
  4  7 the district's duties and obligations.  Following notice and
  4  8 hearing on a petition to accomplish the transfer of water
  4  9 service from the rural water district to a city utility, the
  4 10 board of supervisors of the county may make certain findings
  4 11 and issue an order detaching the area from the district.  The
  4 12 bill provides that after the detachment, the district's board
  4 13 may file a petition for dissolution.  The bill provides
  4 14 procedures to dissolve a district.
  4 15 LSB 1367YH 81
  4 16 eg:rj/sh/8.1