Senate Study Bill 1236 



                                       SENATE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            LOCAL GOVERNMENT BILL BY
                                            CHAIRPERSON QUIRMBACH)



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

                                      A BILL FOR

  1 An Act modifying water service requirements for rural water
  2    providers.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1992SC 82
  5 eg/gg/14

PAG LIN



  1  1    Section 1.  NEW SECTION.  357A.2A  WATER SERVICE WITHIN TWO
  1  2 MILES OF A CITY == NOTICE.
  1  3    1.  A district or a rural water association incorporated
  1  4 under this chapter or chapter 504 shall not provide water
  1  5 service, other than water service provided as of April 1,
  1  6 1987, within two miles of the limits of a city, except as
  1  7 provided in this section.
  1  8    2.  A district or a rural water association incorporated
  1  9 under this chapter or chapter 504 may give notice of intent to
  1 10 provide water service to a new area within two miles of a city
  1 11 by submitting a water plan to the city council, or if the city
  1 12 has a municipal water utility that is governed by a board of
  1 13 trustees to the city's utility board.  The plan is only
  1 14 required to indicate the area within two miles of the city
  1 15 which the district or rural water association intends to
  1 16 serve.  If the city fails to respond to the plan within ninety
  1 17 days of the city's receipt of the plan, the district or rural
  1 18 water association may provide service in the area designated
  1 19 in the plan.  The city may inform the district or the rural
  1 20 water association within ninety days of the city's receipt of
  1 21 the plan that the city requires additional time or information
  1 22 to study the question of providing water service outside the
  1 23 limits of the city.  If additional time or information is
  1 24 required, the city shall respond to the plan within one
  1 25 hundred eighty days of the city's receipt of the plan.  In
  1 26 responding to the plan, the city may waive its right to
  1 27 provide water service within the areas designated for service
  1 28 by the district or rural water association, or the city may
  1 29 reserve the right to provide water service in some or all of
  1 30 the areas which the district or association intends to serve.
  1 31 If the city reserves the right to provide water service within
  1 32 some or all of the areas which the district or rural water
  1 33 association intends to serve, the city shall provide service
  1 34 within four years of the city's receipt of the plan.  This
  1 35 section does not preclude a city from providing water service
  2  1 in an area which is annexed by the city.
  2  2    Sec. 2.  Section 357A.2, unnumbered paragraphs 4 and 5,
  2  3 Code 2007, are amended by striking the unnumbered paragraphs.
  2  4                           EXPLANATION
  2  5    This bill creates new Code section 357A.2A that is
  2  6 substantially similar to current Code section 357A.2 that
  2  7 restricts a rural water district or a rural water association
  2  8 from providing water service within two miles of a city.  A
  2  9 rural water district or a rural water association that intends
  2 10 to provide such water service is required to notify the city
  2 11 council or the city's utility board.
  2 12    The bill makes the distinction between a rural water
  2 13 district and a rural water association.  A rural water
  2 14 association is not a "district", i.e., organized under Code
  2 15 chapter 357A.  See Rural Water System #1 v. City of Sioux
  2 16 Center, Iowa, 202 F.3d 1035 (8th Cir. 2000).
  2 17 LSB 1992SC 82
  2 18 eg:rj/gg/14