Senate File 578 - Introduced SENATE FILE 578 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SF 169) A BILL FOR An Act relating to record access by members of certain special 1 districts and associations providing utility service. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1636SV (2) 91 sb/js

S.F. 578 Section 1. NEW SECTION . 357A.26 Financial records access. 1 A rural water district or rural water association 2 incorporated under this chapter or chapter 504 shall, 3 upon reasonable request by any member of the district 4 or association, provide to the member the district’s 5 or association’s most recent biennial report and any 6 requested financial information, including the district’s 7 or association’s budget and balance sheet. The requested 8 information shall be delivered to the member no later than 9 thirty days after the request. 10 Sec. 2. NEW SECTION . 498.38 Financial records access. 11 An association that provides utility service to its 12 members shall, upon reasonable request by any member of the 13 association, provide to the member the association’s most 14 recent biennial report and any requested financial information, 15 including the association’s budget and balance sheet. The 16 requested information shall be delivered to the member no later 17 than thirty days after the request. 18 Sec. 3. NEW SECTION . 499.81 Financial records access. 19 An association that provides utility service to its 20 members shall, upon reasonable request by any member of the 21 association, provide to the member the association’s most 22 recent biennial report and any requested financial information, 23 including the association’s budget and balance sheet. The 24 requested information shall be delivered to the member no later 25 than thirty days after the request. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill provides that if a rural water district, rural 30 water association, nonprofit cooperative association, or 31 cooperative association provides utility service to members, 32 the most recent biennial report and financial information, 33 including the budget and balance sheet, for the rural water 34 district, rural water association, nonprofit cooperative 35 -1- LSB 1636SV (2) 91 sb/js 1/ 2

S.F. 578 association, or cooperative association must be made available 1 to a member within 30 days of a reasonable request by the 2 member. 3 A rural water district means a rural water district 4 incorporated and organized pursuant to the provisions of Code 5 chapter 357A. 6 A rural water association means a rural water association 7 organized and incorporated as a cooperative association under 8 Code chapter 499 or as a nonprofit corporation under Code 9 chapter 504. 10 A nonprofit cooperative association means a corporate 11 body composed of actual producers or consumers of the given 12 commodity handled by the association, whose business is 13 conducted for the mutual benefit of its members and not for the 14 profit of stockholders, and for which control is vested in its 15 members upon the basis of one vote to each member. 16 A cooperative association is one that deals with or 17 functions for its member and that distributes its net earnings 18 among its members in proportion to their dealings with it, 19 except for limited dividends or other items permitted in Code 20 chapter 499, and in which each voting member has one vote and 21 no more. 22 -2- LSB 1636SV (2) 91 sb/js 2/ 2