CHAPTER 78 HOUSE BILL No. 2003* An Act concerning certain rural water districts; providing procedures for acquisition of
such districts' water supply and distribution systems by certain municipalities. Be it enacted by the Legislature of the State of Kansas:

      Section  1. (a) The board of directors of any rural water district or-
ganized under K.S.A. 82a-612 et seq., and amendments thereto, and the
governing body of any municipality which adjoins such district may enter
into an agreement for the acquisition of such district's water supply and
distribution system by such municipality and the assumption of water
service by such municipality to the customers of such district upon the
terms of such agreement and the provisions of this act.

      (b) Any agreement pursuant to the provisions of this act may provide,
but not necessarily be limited to, terms and conditions for: (1) The trans-
fer to the municipality of control and ownership of the district's water
supply and distribution system, including all property, equipment, re-
cords, reports and funds; (2) continued service, at an agreed upon rate,
by the municipality to customers served by such system; (3) assumption
of all or part of the revenue bond liability or other outstanding obligations
of the district; and (4) establishment of a policy for connecting new cus-
tomers to the water supply and distribution system.

      (c) An agreement entered into pursuant to this act shall not take
effect until: (1) The board of directors of the rural water district and the
governing body of the municipality each adopts a resolution approving
such agreement; (2) a copy of the agreement is filed for public inspection
in the office of the county clerk of each county where there is located
any portion of the area served by the rural water district; (3) the board
of directors of the rural water district causes notice of the approval of the
agreement, the reasons therefor and a copy of the agreement to be mailed
to each participating member of the district; (4) the board of directors
causes to be published once in a newspaper or newspapers of general
circulation in the areas served by the district's water supply and distri-
bution system notice of the approval of the agreement and the reasons
therefor, together with a statement that the proposed agreement shall
take effect unless there is presented to the board of directors of the rural
water district a petition as provided by subsection (d); and (5) if a petition
is presented as provided by subsection (d), a majority of the participating
members of the district approve the agreement as provided by subsection
(d).

      (d) If, within 60 days after publication of notice pursuant to subsec-
tion (c), there is presented to the board of directors of the rural water
district board a written petition which is signed by participating members
of the rural water district equal in number to not less than 10% of the
total number of participating members of the district according to the
records of the district and requests an election on whether the agreement
shall take effect, the board of directors of the rural water district shall call
an election on the approval of such agreement. The election may be held
at a meeting called for that purpose or may be by mail ballot, or both.
The agreement shall not take effect unless approved by a majority of the
participating members voting at the election to approve the agreement.
Each participating member shall be entitled to a single vote, regardless
of the number of benefit units to which such member has subscribed.

      (e) Notwithstanding the provisions of subsections (b) and (c), no
agreement made pursuant to this section shall become effective unless
prior to entering into such agreement, the rural water district purchases
from the municipality the water distributed by such district.

      (f) Notwithstanding the provisions of K.S.A. 82a-629, and amend-
ments thereto, a rural water district shall be dissolved whenever the dis-
trict enters into an agreement pursuant to this section and the agreement
provides for: (1) Total transfer of the district's water supply and distri-
bution district and all other assets of the district; (2) continuation of water
supply and distribution service to all customers of the district; (3) as-
sumption of all revenue bond liability and all other obligations of the
district; and (4) a policy for connecting new customers to the water supply
and distribution system.

 Sec.  2. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved April 16, 2003.
 Published in the Kansas Register April 24, 2003.
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