Bill Text: IA HF571 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act authorizing a rural water district to declare bankruptcy, and including effective date provisions. (Formerly HF 151)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2011-12-31 - END OF 2011 ACTIONS [HF571 Detail]
Download: Iowa-2011-HF571-Introduced.html
House
File
571
-
Introduced
HOUSE
FILE
571
BY
COMMITTEE
ON
LOCAL
GOVERNMENT
(SUCCESSOR
TO
HF
151)
A
BILL
FOR
An
Act
authorizing
a
rural
water
district
to
declare
1
bankruptcy,
and
including
effective
date
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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571
Section
1.
NEW
SECTION
.
76.16B
Debtor
status
permitted
——
1
temporary
circumstances
allowed
for
rural
water
districts.
2
1.
A
rural
water
district
organized
or
incorporated
3
pursuant
to
chapter
357A
may
be
a
debtor
under
chapter
nine
4
of
the
federal
bankruptcy
code,
11
U.S.C.
§
901
et
seq.,
if
5
authorized
by
its
board
of
directors
pursuant
to
section
6
357A.11.
7
2.
Subsection
1
is
no
longer
effective
two
years
after
the
8
effective
date
of
this
Act.
However,
this
subsection
does
not
9
affect
any
bankruptcy
proceeding
pending
on
that
date.
10
3.
This
section
is
repealed
seven
years
after
the
effective
11
date
of
this
Act.
12
Sec.
2.
Section
357A.11,
Code
2011,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
14.
a.
Have
authority
to
make
the
district
15
a
debtor
and
proceed
under
the
relevant
sections
of
the
federal
16
bankruptcy
code,
including
11
U.S.C.,
ch.
9,
if
the
board
17
determines
that
the
district
is
insolvent
as
defined
in
the
18
federal
bankruptcy
code,
including
11
U.S.C.
§
101.
This
19
paragraph
applies
notwithstanding
any
provision
in
this
Code
to
20
the
contrary,
unless
expressly
provided
otherwise
by
another
21
statute
referring
to
this
chapter
or
section.
22
b.
Paragraph
“a”
is
no
longer
effective
two
years
after
the
23
effective
date
of
this
Act.
However,
this
paragraph
does
not
24
affect
any
bankruptcy
proceeding
pending
on
that
date.
25
c.
This
subsection
is
repealed
seven
years
after
the
26
effective
date
of
this
Act.
27
Sec.
3.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
28
importance,
takes
effect
upon
enactment.
29
EXPLANATION
30
This
bill
authorizes
a
rural
water
district
to
become
a
31
debtor
and
proceed
under
the
relevant
sections
of
the
federal
32
bankruptcy
code
if
the
board
determines
that
the
district
is
33
insolvent
as
defined
in
the
federal
bankruptcy
code.
The
34
board’s
authority
expires
two
years
after
the
bill’s
effective
35
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