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