House Study Bill 59 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON HIGHFILL) A BILL FOR An Act relating to the procedures for granting a waterworks or 1 sewer services franchise by a city. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1865HC (3) 87 md/sc

H.F. _____ Section 1. Section 364.2, subsection 4, paragraphs a and b, 1 Code 2017, are amended to read as follows: 2 a. A city may grant to any person a franchise to erect, 3 maintain, and operate plants and systems for electric light 4 and power, heating, telegraph, cable television, district 5 telegraph and alarm, motor bus, trolley bus, street railway or 6 other public transit, waterworks, sewer services under section 7 357A.23, or gasworks, within the city for a term of not more 8 than twenty-five years. When considering whether to grant, 9 amend, extend, or renew a franchise, a city shall hold a public 10 hearing on the question. Notice of the time and place of the 11 hearing shall be published as provided in section 362.3 . The 12 franchise may be granted, amended, extended, or renewed only 13 by an ordinance, but no exclusive franchise shall be granted, 14 amended, extended, or renewed. 15 b. Such an ordinance shall not become effective unless 16 approved at an election. The proposal may be submitted 17 by the council on its own motion to the voters at any city 18 election. Upon receipt of a valid petition as defined in 19 section 362.4 requesting that a proposal be submitted to the 20 voters, the council shall submit the proposal at the next 21 regular city election or at a special election called for 22 that purpose before the next regular city election. However, 23 the city council may dispense with such election as to the 24 grant, amendment, extension, or renewal of an electric light 25 and power, heating, sewer services under section 357A.23, or 26 gasworks franchise unless there is a valid petition requesting 27 submission of the proposal to the voters, or the party seeking 28 such franchise, grant, amendment, extension, or renewal 29 requests an election. If a majority of those voting approves 30 the proposal, the city may proceed as proposed. The complete 31 text of the ordinance shall be included on the ballot if 32 conventional paper ballots are used. If an optical scan voting 33 system is used, the proposal shall be stated on the optical 34 scan ballot, and the full text of the ordinance posted for the 35 -1- LSB 1865HC (3) 87 md/sc 1/ 2

H.F. _____ voters pursuant to section 52.25 . All absentee voters shall 1 receive the full text of the ordinance. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 Current Code section 364.2 authorizes cities to grant, 6 by ordinance, franchises for certain specified functions and 7 services undertaken within the city. Such franchises may be 8 granted for a term of not more than 25 years. In addition, Code 9 section 357A.23 authorizes a city to grant a franchise to a 10 rural water district under specified conditions, including the 11 grant of a franchise for sewer services. An ordinance granting 12 a franchise does not become effective until approved at 13 election. A city may, however, dispense with such election as 14 to the grant, amendment, extension, or renewal of an electric 15 light and power, heating, or gasworks franchise unless there is 16 a valid petition requesting submission of the proposal to the 17 voters, or the party seeking such franchise, grant, amendment, 18 extension, or renewal requests an election. 19 This bill adds a sewer services franchise granted under 20 Code section 357A.23 and a waterworks franchise to the list of 21 franchises for which the election is not required unless there 22 is a valid petition or request from the party seeking such 23 franchise, grant, amendment, extension, or renewal. 24 -2- LSB 1865HC (3) 87 md/sc 2/ 2