Senate Study Bill 1136 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON WILHELM) A BILL FOR An Act modifying water service requirements for rural water 1 providers. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2348SC (2) 84 da/rj

S.F. _____ Section 1. Section 357A.2, subsections 3 and 4, Code 2011, 1 are amended to read as follows: 2 3. a. Water services, other than water services provided as 3 of April 1, 1987, shall not be provided within two miles of the 4 limits of a city by a rural water district incorporated under 5 this chapter or chapter 504 except as provided in this section . 6 b. Water services, other than water services provided as 7 of July 1, 2011, shall not be provided within two miles of 8 the limits a city by a rural water association incorporated 9 under this chapter or chapter 504, except as provided in this 10 section. 11 4. A rural water district or rural water association 12 incorporated under this chapter or chapter 504 may give notice 13 of intent to provide water service to a new area within two 14 miles of a city by submitting a water plan to the city. The 15 plan is only required to indicate the area within two miles 16 of the city which the rural water district or rural water 17 association intends to serve. If the city fails to respond 18 to the rural water district’s or rural water association’s 19 plan within ninety days of receipt of the plan, the rural 20 water district or rural water association may provide service 21 in the area designated in the plan. The city may inform the 22 rural water district or rural water association within ninety 23 days of receipt of the plan that the city requires additional 24 time or information to study the question of providing water 25 service outside the limits of the city. If additional time or 26 information is required, the city shall respond to the rural 27 water district’s or rural water association’s plan within one 28 hundred eighty days of receipt of the plan. In responding to 29 the plan, the city may waive its right to provide water service 30 within the areas designated for service by the rural water 31 district or rural water association , or the city may reserve 32 the right to provide water service in some or all of the areas 33 which the rural water district or rural water association 34 intends to serve. If the city reserves the right to provide 35 -1- LSB 2348SC (2) 84 da/rj 1/ 2

S.F. _____ water service within some or all of the areas which the rural 1 water district or rural water association intends to serve, the 2 city shall provide service within four years of receipt of the 3 plan. This section does not preclude a city from providing 4 water service in an area which is annexed by the city. 5 EXPLANATION 6 This bill amends Code section 357A.2 to restrict both a rural 7 water district and a rural water association from providing 8 water service within two miles of a city. A rural water 9 district or a rural water association that intends to provide 10 such water service is required to notify the city council or 11 the city’s utility board. 12 The bill identifies both rural water districts and rural 13 water associations. A rural water association is not a 14 district, i.e., organized under Code chapter 357A. 15 -2- LSB 2348SC (2) 84 da/rj 2/ 2