Iowa House Bill HF280

Iowa 2023-2024 Regular Session

• Introduced: 2/13/23
• Engrossed: 2/22/23
• Refer: 6/5/23

Caption

A bill for an act relating to governmental subdivision loans for disaster aid.(Formerly HF 87.)

Impact

The bill's passage is intended to enhance the capacity of local governments to respond to emergencies and recover from disasters, ensuring they have access to necessary financial resources. Furthermore, the executive council is granted the authority to forgive loan repayments for amounts up to one million dollars if good cause is shown. This provision could greatly ease the fiscal burden on local governments during critical recovery periods, offering them much-needed flexibility in financial planning and management during disaster recovery efforts.

Summary

House File 280 aims to amend Iowa legislation related to governmental subdivision loans for disaster aid. The bill facilitates financial assistance to local governments that require support due to actual or potential disasters. Specifically, it allows the executive council to provide loans that cover up to seventy-five percent of the obligations and expenditures incurred by a governmental subdivision when facing disaster situations. This amendment is significant as it increases the limit on loans provided for disaster aid from one million dollars to five million dollars, giving local government entities greater financial leeway.

Contention

While the bill received overwhelming support in the legislative voting process, passing with 95 yeas and 0 nays, discussions around potential points of contention may arise as the implementation unfolds. Critics may question the adequacy of the funding processes and the criteria for determining 'good cause' for loan forgiveness. Additionally, there is an ongoing debate about the long-term implications of increased financial assistance levels—whether this will empower local governments or lead to dependency on state loans for disaster management.