SF 2251 (LSB 6603SS (2) 91)

SENATE FILE 2251

BY  ZUMBACH

A BILL FOR

An Act relating to the authority of combined recreational lake and water quality districts when issuing bonds.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 357E.11A, subsection 2, Code 2026, is amended to read as follows:
   2.  A combined district shall have the same powers, requirements, and limitations to issue bonds that cities have under the laws of this state, including but not limited to chapter 76, section 384.4, and sections 384.23 through 384.94. The bonds shall be made payable at the place and be of the form as the board of trustees shall by resolution designate. In the application of the laws to this section, the words used in the laws referring to municipal corporations or to cities shall be held to include combined districts organized under this chapter; the words “council” or “city council” shall be held to include the board of trustees of a combined district; the words “mayor” and “clerk” shall be held to include the president and clerk of a board of trustees; and like construction shall be given to any other words in the laws where required to permit the exercise of the powers by combined districts under this section.
    Sec. 2.  Section 357E.11A, subsection 3, Code 2026, is amended by striking the subsection.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to bonding and indebtedness authority of a combined recreational lake and water quality district (district) under Code chapter 357E. Under current law, such a district has the same powers to issue bonds that a city has under the laws of this state. However, Code section 357E.11A(3) requires any indebtedness of the district, except for refunding bonds, to first be authorized at election. The bill strikes the election requirement for all indebtedness and specifies that districts are subject to the same requirements and limitations to issue bonds that a city has under the laws of this state, which may, but does not always require, approval at election.