House File 2325 - Introduced HOUSE FILE 2325 BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO HSB 619) A BILL FOR An Act authorizing the severance of territory and transfer of 1 services of a sanitary district by resolution. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5964HV (1) 86 md/sc
H.F. 2325 Section 1. NEW SECTION . 358.30A Severance of territory by 1 resolution. 2 1. The board of trustees of a sanitary district may by 3 resolution propose the severance of a portion of the sanitary 4 district’s territory. The resolution shall specify the 5 boundaries of the territory sought to be severed and shall 6 propose another sanitary district or other governmental 7 entity to which responsibility for the services provided 8 by the sanitary district that adopted the resolution will 9 be transferred. Within ten days following adoption of the 10 resolution, the board of trustees shall file a copy of the 11 resolution with the board of trustees of the sanitary district 12 or the governing body of the other governmental entity to 13 which responsibility for the services provided by the sanitary 14 district seeking severance is proposed to be transferred. 15 2. a. At the next regular meeting of the board of 16 trustees following adoption of the resolution, the board of 17 trustees seeking severance shall set the time and place for 18 a public hearing on the proposed severance and transfer, and 19 any agreement between the sanitary district and the sanitary 20 district or governmental entity to which responsibility for 21 the services being provided will be transferred pursuant to 22 subsection 3. The board of trustees shall give notice to 23 interested persons of the resolution and of the public hearing 24 by publication as provided in section 331.305. Proof of 25 publication shall be filed with and preserved by the county 26 auditor. A copy of the notice shall also be sent by regular 27 mail to each owner of each tract of land within the area to be 28 severed, as shown by the transfer books of the county auditor’s 29 office. 30 b. The notice of the public hearing shall include the 31 following information: 32 (1) That a resolution has been adopted proposing to sever 33 property from the sanitary district. 34 (2) A description of the property to be severed from the 35 -1- LSB 5964HV (1) 86 md/sc 1/ 5
H.F. 2325 sanitary district. 1 (3) Identification of the sanitary district or governmental 2 entity to which the responsibility for services will be 3 transferred and a description of such services. 4 (4) The date, time, and place of the public hearing at which 5 the severance and transfer will be considered. 6 3. a. Unless otherwise provided by an agreement under 7 paragraph “b” , and upon approval of the severance and transfer 8 under subsection 4, the real and personal property of the 9 sanitary district located in the territory to be severed shall 10 be transferred to the sanitary district or governmental entity 11 assuming responsibility for services, and all liabilities, 12 indebtedness, and all other property of the sanitary district 13 outside of the territory to be severed shall remain with the 14 sanitary district seeking severance. 15 b. The sanitary district seeking severance and the sanitary 16 district or governmental entity to which the responsibility 17 for services will be transferred may enter into an agreement 18 for the transition of such services, the distribution and 19 transfer of assets located in the territory to be severed, and 20 the allocation of liabilities related to the territory to be 21 severed. 22 4. At the hearing, all persons interested in the matter of 23 the severance and transfer may appear and shall be heard and 24 the board of trustees shall receive evidence on the matter. 25 After hearing and reviewing the statements and evidence, if the 26 board of trustees determines that the public health, comfort, 27 convenience, or welfare will be promoted by the severance and 28 transfer and that the other sanitary district or governmental 29 entity has by resolution agreed to assume the duties, 30 responsibilities, and functions of the sanitary district, the 31 board of trustees of the sanitary district seeking severance 32 may approve or deny the severance and transfer by order of the 33 board of trustees. A decision of the board of trustees either 34 approving or denying the severance and transfer shall not occur 35 -2- LSB 5964HV (1) 86 md/sc 2/ 5
H.F. 2325 until at least two weeks have elapsed following the public 1 hearing. The order of the board of trustees approving or 2 denying the severance and transfer is not subject to approval 3 at an election. 4 5. When a severance and transfer has been approved by order 5 of the board of trustees, the order of the board of trustees 6 shall be filed in the office of the recorder. The severance 7 and transfer order shall be entered on the county records, 8 showing the date when the severance and transfer became 9 effective. Any agreement entered into under subsection 3 shall 10 also be filed along with, and as part of, the order of the board 11 of trustees. 12 6. The assumption of duties, responsibilities, and 13 functions by the sanitary district or other governmental entity 14 shall not affect or impair any rights or liabilities then 15 existing for or against either the sanitary district from which 16 the territory was severed or the assuming sanitary district or 17 governmental entity, and they may be enforced as provided in 18 this subchapter. 19 7. An action shall not be commenced to contest action of 20 the board of trustees of a sanitary district seeking severance 21 under this section unless it is brought within thirty days of 22 the entry of the severance and transfer order in the county 23 records. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 Code chapter 358 governs the establishment, operation, and 28 dissolution of sanitary districts. 29 This bill establishes a procedure by which a portion of the 30 territory of a sanitary district may be severed and transferred 31 to another sanitary district or governmental entity. Under 32 the bill, the board of trustees of a sanitary district may 33 by resolution propose the severance of a portion of the 34 sanitary district’s territory. The resolution must specify 35 -3- LSB 5964HV (1) 86 md/sc 3/ 5
H.F. 2325 the boundaries of the territory sought to be severed and shall 1 propose another sanitary district or other governmental entity 2 to which responsibility for the services provided by the 3 sanitary district seeking severance will be transferred. The 4 board of trustees must then file a copy of the resolution with 5 the board of trustees of the sanitary district or the governing 6 body of the other governmental entity to which responsibility 7 for the services provided by the sanitary district seeking 8 severance is proposed to be transferred. 9 The bill also requires the board of trustees of the sanitary 10 district seeking severance to set the time and place for a 11 public hearing on the proposed severance and transfer. The 12 bill establishes notice requirements for the resolution and the 13 public hearing. 14 Under the bill, unless otherwise provided by an agreement 15 between the sanitary district and the district or entity to 16 which responsibility for the services will be transferred, the 17 real and personal property of the sanitary district located 18 in the territory to be severed shall be transferred to the 19 district or entity assuming responsibility for services, and 20 all liabilities, indebtedness, and all other property of the 21 sanitary district outside of the territory to be severed shall 22 remain with the sanitary district that adopted the resolution. 23 After the public hearing, if the board of trustees 24 determines that the public health, comfort, convenience, or 25 welfare will be promoted by the severance and transfer and 26 that the other sanitary district or governmental entity has by 27 resolution agreed to assume the duties, responsibilities, and 28 functions of the sanitary district, the board of trustees, no 29 earlier than two weeks after the hearing, may approve or deny 30 the severance and transfer by order of the board of trustees. 31 The order of the board of trustees approving or denying 32 the severance and transfer is not subject to approval at an 33 election. When a severance and transfer has been approved by 34 order of the board of trustees, the order shall be filed in the 35 -4- LSB 5964HV (1) 86 md/sc 4/ 5
H.F. 2325 office of the recorder along with any agreement between the 1 severing sanitary district and the assuming district or entity. 2 The bill also provides that an action shall not be commenced 3 to contest action of the board of trustees seeking severance 4 under the bill unless it is brought within 30 days of the entry 5 of the severance and transfer order on the county record. 6 -5- LSB 5964HV (1) 86 md/sc 5/ 5