H.F. 87 Section 1. Section 29C.20, subsection 1, paragraph a, 1 subparagraph (6), subparagraph division (b), Code 2023, is 2 amended to read as follows: 3 (b) Upon application by a governmental subdivision in 4 such an area, accompanied by a showing of obligations and 5 expenditures necessitated by an actual or potential disaster 6 in a form and with further information the executive council 7 requires, the aid may be made in the discretion of the 8 executive council and, if made, shall be in the nature of a 9 loan up to a limit of seventy-five percent of the showing of 10 obligations and expenditures. The loan, without interest, 11 shall be repaid by the maximum annual emergency levy authorized 12 by section 24.6 , or by the appropriate levy authorized for a 13 governmental subdivision not covered by section 24.6 . However, 14 the executive council, for good cause shown, may forgive 15 repayment of a loan in an amount not to exceed one million 16 dollars. The aggregate total of loans shall not exceed one 17 five million dollars during a fiscal year. A loan shall not be 18 for an obligation or expenditure occurring more than two years 19 previous to the application. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill concerns loans to a governmental subdivision 24 for disaster aid from the contingent fund under Code section 25 29C.20. The bill increases the maximum allowable loan to a 26 governmental subdivision for disaster aid from $1 million to 27 $5 million and authorizes the executive council to forgive the 28 repayment of a loan in an amount up to $1 million for good cause 29 shown. 30 -1- LSB 1542YH (1) 90 ec/rn 1/ 1