Senate File 2251 - Introduced SENATE FILE 2251 BY ZUMBACH A BILL FOR An Act relating to the authority of combined recreational lake 1 and water quality districts when issuing bonds. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6603SS (2) 91 ms/md
S.F. 2251 Section 1. Section 357E.11A, subsection 2, Code 2026, is 1 amended to read as follows: 2 2. A combined district shall have the same powers , 3 requirements, and limitations to issue bonds that cities have 4 under the laws of this state, including but not limited to 5 chapter 76 , section 384.4 , and sections 384.23 through 384.94 . 6 The bonds shall be made payable at the place and be of the form 7 as the board of trustees shall by resolution designate. In the 8 application of the laws to this section , the words used in the 9 laws referring to municipal corporations or to cities shall 10 be held to include combined districts organized under this 11 chapter ; the words “council” or “city council” shall be held to 12 include the board of trustees of a combined district; the words 13 “mayor” and “clerk” shall be held to include the president and 14 clerk of a board of trustees; and like construction shall be 15 given to any other words in the laws where required to permit 16 the exercise of the powers by combined districts under this 17 section . 18 Sec. 2. Section 357E.11A, subsection 3, Code 2026, is 19 amended by striking the subsection. 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 relates to bonding and indebtedness authority 24 of a combined recreational lake and water quality district 25 (district) under Code chapter 357E. Under current law, such 26 a district has the same powers to issue bonds that a city 27 has under the laws of this state. However, Code section 28 357E.11A(3) requires any indebtedness of the district, except 29 for refunding bonds, to first be authorized at election. The 30 bill strikes the election requirement for all indebtedness and 31 specifies that districts are subject to the same requirements 32 and limitations to issue bonds that a city has under the laws 33 of this state, which may, but does not always require, approval 34 at election. 35 -1- LSB 6603SS (2) 91 ms/md 1/ 1