House File 151 - Introduced HOUSE FILE 151 BY WATTS , IVERSON , RAYHONS , BAUDLER , DEYOE , and HELLAND A BILL FOR An Act authorizing a rural water district to declare 1 bankruptcy, and including effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1651YH (12) 84 da/nh

H.F. 151 Section 1. NEW SECTION . 76.16B Debtor status permitted —— 1 temporary circumstances allowed for rural water districts. 2 1. A rural water district organized or incorporated 3 pursuant to chapter 357A may be a debtor under chapter nine 4 of the federal bankruptcy code, 11 U.S.C. § 901 et seq., if 5 authorized by its board of directors pursuant to section 6 357A.11. 7 2. Subsection 1 is no longer effective two years after the 8 effective date of this Act. However, this subsection does not 9 affect any bankruptcy proceeding pending on that date. 10 3. This section is repealed seven years after the effective 11 date of this Act. 12 Sec. 2. Section 357A.11, Code 2011, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 14. a. Have authority to make the district 15 a debtor and proceed under the relevant sections of the federal 16 bankruptcy code, including 11 U.S.C., ch. 9, if the board 17 determines that the district is insolvent as defined in the 18 federal bankruptcy code, including 11 U.S.C. § 101. This 19 paragraph applies notwithstanding any provision in this Code to 20 the contrary, unless expressly provided otherwise by another 21 statute referring to this chapter or section. 22 b. Paragraph “a” is no longer effective two years after the 23 effective date of this Act. However, this paragraph does not 24 affect any bankruptcy proceeding pending on that date. 25 c. This subsection is repealed seven years after the 26 effective date of this Act. 27 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 28 importance, takes effect upon enactment. 29 EXPLANATION 30 This bill authorizes a rural water district to become a 31 debtor and proceed under the relevant sections of the federal 32 bankruptcy code if the board determines that the district is 33 insolvent as defined in the federal bankruptcy code. The 34 board’s authority expires two years after the bill’s effective 35 -1- LSB 1651YH (12) 84 da/nh 1/ 2

H.F. 151 date and the bill’s provisions are repealed five years later. 1 The bill takes effect upon enactment. 2 -2- LSB 1651YH (12) 84 da/nh 2/ 2