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Economic Growth – week of March 3, 2014

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SF 2328 – Iowa Finance Authority Reorganization of Code Chapter

HF 2192 – Rural Water Agreements

 

FLOOR ACTION:

SF 2328 is a reorganization of several sections of Chapter 16 of the Code of Iowa, which establishes the Iowa Finance Authority (IFA). In 2013, the Legislature approved a bill transferring the powers and duties of the Agricultural Development Authority (Iowa Code Chapter 175). The bill incorporates the provisions of Code Chapter 175 into Code Chapter 16. It also moves provisions within Code Chapter 16 to enhance its readability. Substantive changes include changing the name of a few of the programs and a division at IFA, terminology changes, and revision or elimination of certain programs. Programs that are eliminated include the Housing Improvement Fund, Solar & Renewable Energy Systems Loans, Soil Conservation Loan Program, Assistance & Management Programs for Beef Cattle Producers, Disaster Recovery Housing Project Tax Credit, Recovery Zone Bonds and Loans for Displaced Farmers. Most of these programs are obsolete. The Soil Conservation Loan Program has been moved to the Iowa Department of Agriculture & Land Stewardship. The Recovery Zone Bonds were part of the American Recovery & Reinvestment Act. [3/4: 49-0 (Ernst excused)]

 

COMMITTEE ACTION: 

HF 2192 relates to rural water providers by making changes to water service requirements. Under current law, a rural water district may provide notice of intent to provide water service to a new area within two miles of a city. The bill requires that rural water associations also provide such notice. This notice is required starting after July 1, 2014, and notice is not required if the rural water association is serving new customers or improving facilities within the existing service area or agreement with the city. The bill requires the water plan to be filed by certified mail with the governing body of the city utility.

If the city reserves the right to provide water service, the city will provide the rural water district or association with a copy of the city’s water plan relating to the city’s intent and ability to provide water service to such an area. The city will provide the water service within three years of receipt of the water plan submitted. If the city or rural water association cannot provide service within three years, the other parties must be notified by certified mail. “Provide service” or “provide water service” means to deliver water in sufficient quantity and quality to meet customer demand. The Department of Natural Resources will determine whether such service meets customer demand. The bill allows for either party to request mediation if land is annexed. Also, the bill states that a city or city utility providing water service within two miles of the limits of the city will not be liable for a claim for failure to provide or maintain fire hydrants, facilities or water pressure for fire protection purposes in the area if the hydrants, facility or water are not intended to be used for fire protection purposes. [3/5: short form (Bertrand, Chelgren, Hatch, Houser excused)]


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