House File 687 - Introduced HOUSE FILE 687 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 538) (SUCCESSOR TO HSB 163) A BILL FOR An Act relating to the powers and governance of benefited 1 recreational lake districts, water quality districts, and 2 combined recreational lake and water quality districts. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2165HZ (2) 84 md/sc

H.F. 687 Section 1. Section 357E.1, subsection 3, Code 2011, is 1 amended to read as follows: 2 3. “District” means a benefited recreational lake district 3 or a water quality district or a combined district incorporated 4 as a public entity and organized pursuant to this chapter . 5 Sec. 2. Section 357E.9, Code 2011, is amended to read as 6 follows: 7 357E.9 Trustees —— term and qualification. 8 1. a. At the election, the names of at least three seven 9 candidates for trustee shall be written in by the voters on 10 blank ballots without formal nomination and the board of 11 supervisors shall appoint three seven from among the five nine 12 receiving the highest number of votes as trustees for the 13 district. One trustee Three trustees shall be appointed to 14 serve for one year, one two for two years, and one two for three 15 years. The trustees shall give bond in the amount required by 16 the board, the premium of which shall be paid by the district. 17 The trustees must be residents of the district or be property 18 owners within the district . Vacancies shall be filled by 19 election, but if there are no candidates for a trustee office, 20 the vacancy may be filled by appointment by the board. The 21 terms of the succeeding trustees are for three years. 22 b. For districts in existence on July 1, 2011, the number 23 of trustees, other than those appointed under subsection 2, 24 shall be increased from three trustees to seven trustees. For 25 the initial seven-member board under this paragraph, the board 26 of supervisors shall appoint four trustees. One trustee shall 27 be appointed to serve for one year, one for two years, and two 28 for three years. The term of each trustee appointed under this 29 paragraph shall expire on the same date as the term of the 30 current trustee whose term expires during the same year. 31 2. If the state owns at least four hundred acres of land 32 contiguous to a lake within the district, the natural resource 33 commission shall appoint two members of the board of trustees 34 in addition to the three seven members provided in this 35 -1- LSB 2165HZ (2) 84 md/sc 1/ 4

H.F. 687 section . The additional two members must be citizens of the 1 state, not less than eighteen years of age, and property owners 2 within the district. The two additional members have voting 3 and other authority equal to the other members of the board and 4 hold office at the pleasure of the natural resource commission. 5 Sec. 3. Section 357E.11, Code 2011, is amended to read as 6 follows: 7 357E.11 Bonds in anticipation of revenue. 8 A district , other than a combined district, may anticipate 9 the collection of taxes by the levy authorized in this chapter , 10 and to carry out the purposes of this chapter may issue bonds 11 payable in not more than twenty equal installments with the 12 rate of interest not exceeding that permitted by chapter 74A . 13 An indebtedness shall not be incurred under this chapter 14 section until authorized by an election. The election shall be 15 held and notice given in the same manner as provided in section 16 357E.8 , and the same majority vote is necessary to authorize 17 indebtedness. Both propositions may be submitted to the voters 18 at the same election. 19 Sec. 4. NEW SECTION . 357E.11A Bonds and indebtedness —— 20 combined districts. 21 1. A combined district may borrow money for its corporate 22 purposes, but shall not become indebted in any manner or 23 for any purpose to an amount in the aggregate exceeding 24 five percent on the value of the taxable property within the 25 district, to be ascertained by the last state and county 26 tax lists previous to the incurring of the indebtedness. 27 Indebtedness within this limit shall not include the 28 indebtedness of any other municipal corporation located wholly 29 or partly within the boundaries of the district. 30 2. A combined district shall have the same powers to issue 31 bonds, including both general obligation and revenue bonds, 32 that cities have under the laws of this state, including but 33 not limited to chapter 76, section 384.4, and sections 384.23 34 through 384.94. The bonds shall be made payable at the place 35 -2- LSB 2165HZ (2) 84 md/sc 2/ 4

H.F. 687 and be of the form as the board of trustees shall by resolution 1 designate. In the application of the laws to this section, 2 the words used in the laws referring to municipal corporations 3 or to cities shall be held to include combined districts 4 organized under this chapter; the words “council” or “city 5 council” shall be held to include the board of trustees of a 6 combined district; the words “mayor” and “clerk” shall be held 7 to include the president and clerk of a board of trustees; and 8 like construction shall be given to any other words in the laws 9 where required to permit the exercise of the powers by combined 10 districts under this section. 11 3. An indebtedness shall not be incurred under this section 12 until authorized by an election. The election shall be held 13 and notice given in the same manner as provided in section 14 357E.8, except that a proposition to authorize indebtedness is 15 approved if sixty percent of those voting on the proposition 16 vote in favor of the proposition. A proposition for the 17 authorization of indebtedness may be submitted to the voters at 18 the same election as the election under section 357E.8. 19 EXPLANATION 20 This bill makes changes to Code chapter 357E relating to 21 benefited recreational lake districts, water quality districts, 22 and combined recreational lake and water quality districts. 23 The bill specifies that districts under Code chapter 357E 24 are incorporated as public entities. 25 The bill increases from three to seven the number of trustees 26 on the board governing a benefited recreational lake district, 27 water quality district, or combined recreational lake and 28 water quality district, other than the two trustees who may 29 be appointed by the natural resource commission if the state 30 owns a certain amount of land contiguous to a lake within the 31 district. The bill makes corresponding changes to the trustee 32 selection procedure for newly established districts. 33 The bill also provides that for districts in existence on 34 July 1, 2011, the board of supervisors is required to appoint 35 -3- LSB 2165HZ (2) 84 md/sc 3/ 4

H.F. 687 four additional trustees. One trustee shall be appointed to 1 serve for one year, one for two years, and two for three years. 2 Following expiration of those initial appointments, vacancies 3 are filled by election. 4 Current law requires trustees to be residents of the 5 district. The bill would also allow property owners within the 6 district to serve as trustees. 7 The bill amends Code section 357E.11, relating to a 8 district’s authority to issue bonds in anticipation of revenue 9 to specify that only those districts that are not combined 10 recreational lake and water quality districts may issue bonds 11 under that Code section. 12 New Code section 357E.11A authorizes combined recreational 13 lake and water quality districts to issue bonds, including 14 both general obligation and revenue bonds, in the same manner 15 as cities. The bill provides that such bonds must be payable 16 at the place and be of the form designated by the board 17 of trustees. The bill provides, however, that a combined 18 recreational lake and water quality district may not incur 19 an indebtedness until authorized by an election where 60 20 percent of those voting on the proposition vote in favor of the 21 proposition. 22 -4- LSB 2165HZ (2) 84 md/sc 4/ 4