Bill

Bill > SF2251


IA SF2251

IA SF2251
A bill for an act relating to the authority of combined recreational lake and water quality districts when issuing bonds.


summary

Introduced
02/10/2026
In Committee
02/10/2026
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

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.

AI Summary

This bill modifies the rules for how combined recreational lake and water quality districts, referred to as "districts," can issue bonds, which are essentially loans taken out by the district to fund projects. Currently, districts have the same bonding powers as cities, but a specific law (Code section 357E.11A(3)) requires that any new debt, except for refinancing existing debt (refunding bonds), must be approved by voters in an election. This bill removes that election requirement for all types of district debt, meaning districts will now be subject to the same general rules and limitations that cities follow when issuing bonds, which may or may not require voter approval depending on the specific circumstances.

Committee Categories

Government Affairs

Sponsors (1)

Last Action

Subcommittee recommends passage. (on 02/16/2026)

bill text


bill summary

Loading...

bill summary

Loading...
Loading...