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