House File 812 - Introduced
HOUSE FILE 812
BY COMMITTEE ON ECONOMIC
GROWTH
(SUCCESSOR TO HSB 204)
A BILL FOR
1 An Act regarding port authorities, including by allowing port
2 authorities to enter into certain loan agreements and lease
3 contracts.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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1 Section 1. Section 28J.1, subsections 1 and 3, Code 2021,
2 are amended to read as follows:
3 1. “Authorized purposes” means an activity that enhances,
4 fosters, aids, provides, or promotes transportation,
5 infrastructure, utility service, flood and erosion control,
6 economic development, housing, recreation, education,
7 governmental operations, culture, or research within the
8 jurisdiction of a port authority.
9 3. “City” means the same as defined in section 362.2, and
10 also includes a city enterprise as defined in section 384.24.
11 Sec. 2. Section 28J.1, subsection 6, paragraphs d, f, and g,
12 Code 2021, are amended to read as follows:
13 d. The cost of machinery, furnishings, equipment, financing
14 charges, interest prior to and during construction and for
15 no more than twelve months after completion of construction,
16 engineering, architectural services, technical services,
17 preliminary reports, property valuations, consequential
18 damages or costs, provisions for contingencies, supervision,
19 inspection, testing, and expenses of research and development
20 with respect to a facility.
21 f. The interest upon the revenue bonds, and pledge
22 orders, loan agreements, lease contracts, and certificates of
23 participation in or other participatory interests or evidences
24 of any obligation under a loan agreement or lease contract,
25 during the period or estimated period of construction and
26 for twelve months thereafter, or for twelve months after the
27 acquisition date, and upon reserve funds as the port authority
28 deems advisable in connection with a facility and the issuance
29 of port authority revenue bonds, and pledge orders, loan
30 agreements, lease contracts, and certificates of participation
31 in or other participatory interests or evidences of any
32 obligation under a loan agreement or lease contract.
33 g. The costs of issuance of port authority revenue bonds,
34 and pledge orders, loan agreements, lease contracts, and
35 certificates of participation in or other participatory
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1 interests or evidences of any obligations under a loan
2 agreement or lease contract.
3 Sec. 3. Section 28J.1, subsections 7 and 8, Code 2021, are
4 amended to read as follows:
5 7. “Facility” or “port authority facility” means any
6 public works project, intermodal freight or transportation
7 facility, project for which tax-exempt financing is authorized
8 by the Internal Revenue Code, and real or personal property
9 or improvements owned, leased, constructed, or otherwise
10 controlled or financed by or for a port authority and that
11 is related to or in furtherance of one or more authorized
12 purposes.
13 8. “Governmental agency” means a department, division,
14 or other unit of state government of this state or any other
15 state, city, county, any political subdivision, township, or
16 other governmental subdivision, or any city utility, any other
17 public corporation, special purpose district, authority, or
18 agency created under the laws of this state, any other state,
19 the United States, or any department or agency thereof, or any
20 agency, commission, or authority established pursuant to an
21 interstate compact or agreement or combination thereof.
22 Sec. 4. Section 28J.1, Code 2021, is amended by adding the
23 following new subsection:
24 NEW SUBSECTION. 8A. “Net revenues” means revenues less
25 operating expenses.
26 Sec. 5. Section 28J.1, subsections 11, 12, and 14, Code
27 2021, are amended to read as follows:
28 11. “Political subdivision” means a city, county,
29 city-county consolidation, or multicounty consolidation, or
30 combination thereof municipality as defined in section 16.151.
31 12. “Political subdivisions comprising the port authority”
32 means the each political subdivisions subdivision which created
33 or participated in the creation of the port authority under
34 section 28J.2, or which joined an existing port authority under
35 section 28J.4.
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1 14. “Port authority revenue bonds” or “revenue bonds” means
2 revenue bonds and revenue refunding bonds issued pursuant to
3 section 28J.21.
4 Sec. 6. Section 28J.1, Code 2021, is amended by adding the
5 following new subsection:
6 NEW SUBSECTION. 15A. “Public works project” means a
7 project of a type that a political subdivision is authorized
8 to undertake as otherwise provided by law, including
9 but not limited to public roads and other transportation
10 infrastructure, utility systems such as water treatment
11 facilities and sewage treatment facilities, or a project as
12 defined in section 384.80.
13 Sec. 7. Section 28J.1, subsection 16, Code 2021, is amended
14 to read as follows:
15 16. “Revenues” means rental rents, fees, income, rates,
16 tolls, receipts, and other charges or revenues received by a
17 port authority or derived from the operations of a facility
18 or for the use or services of a facility, a gift or grant
19 received with respect to a facility, moneys received with
20 respect to the lease, sublease, sale, including installment
21 sale or conditional sale, or other disposition of a facility,
22 moneys received in repayment of and for interest on any
23 loans made by the port authority to a person or governmental
24 agency, proceeds of port authority revenue bonds for payment
25 of principal, premium, or interest on the bonds authorized
26 by the port authority, proceeds or borrowings under port
27 authority loan agreements for payment of principal, premium,
28 or interest on the port authority obligations thereunder,
29 proceeds or borrowings under lease contracts for the payment of
30 lease payments thereunder, proceeds under any certificates of
31 participation in or other participatory interests or evidences
32 of any obligations under a loan agreement or lease contract,
33 proceeds from any insurance, condemnation, or guarantee
34 pertaining to the financing of the facility, and income and
35 profit from the investment of the proceeds of port authority
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1 revenue bonds, proceeds, or borrowings under loan agreements,
2 lease contracts, or proceeds of certificates of participation
3 in or other participatory interests or evidences of any
4 obligation under any loan agreement or lease contract or of any
5 revenues.
6 Sec. 8. Section 28J.2, subsection 1, Code 2021, is amended
7 to read as follows:
8 1. Two One or more political subdivisions may by resolution
9 create a port authority under this chapter by resolution
10 anywhere in this state, regardless of proximity to a body of
11 water. If a proposal to create a port authority receives a
12 favorable majority of the members of the elected legislative
13 body of each of the political subdivisions, the port authority
14 is created at the time provided in the resolution. The
15 jurisdiction of a port authority includes the territory
16 described in section 28J.8.
17 Sec. 9. Section 28J.2, Code 2021, is amended by adding the
18 following new subsection:
19 NEW SUBSECTION. 5. A port authority is an entity separate
20 from the political subdivisions comprising the port authority.
21 The powers granted to the port authority pursuant to this
22 chapter are in addition to other powers, and constitute
23 independent powers that may be exercised by the port authority
24 whether or not the political subdivisions comprising the
25 port authority have or may exercise any of those powers
26 individually.
27 Sec. 10. Section 28J.3, subsection 1, Code 2021, is amended
28 to read as follows:
29 1. The political subdivisions comprising a port authority
30 may appropriate and expend public funds and make contributions
31 to the port authority to finance or subsidize the operation and
32 authorized purposes of the port authority and pay the costs
33 and expenses incurred by the port authority in carrying out
34 any operations or authorized purposes of the port authority.
35 Political subdivisions comprising the port authority may
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1 enter into agreements with each other or the port authority
2 providing for the contributions to the port authority to be
3 made by each of the political subdivisions and providing for
4 the obligations of each of the political subdivisions to pay,
5 finance, or subsidize the costs and expenses incurred by the
6 port authority. Political subdivisions comprising the port
7 authority may, by resolution, authorize and appropriate funds
8 for any contribution, payment, or financing required to be
9 made under such agreement by the use of any method available
10 to government agencies for providing funds or financing under
11 section 28J.16. A port authority shall control tax revenues
12 allocated to the facilities the port authority administers and
13 all revenues derived from the operation of the port authority,
14 the sale of its property, interest on investments, or from any
15 other source related to the port authority.
16 Sec. 11. Section 28J.5, subsections 1, 2, and 5, Code 2021,
17 are amended to read as follows:
18 1. A port authority created pursuant to section 28J.2 shall
19 be governed by a board of directors. Members of a board of
20 directors of a port authority created by two or more political
21 subdivisions shall be divided among the political subdivisions
22 comprising the port authority in such proportions as the
23 political subdivisions may agree and shall be appointed by the
24 respective political subdivision’s elected legislative body.
25 Members of a board of directors of a port authority created by
26 one political subdivision shall be appointed by the political
27 subdivision’s governing body.
28 2. The number of directors comprising the board of a port
29 authority created by two or more political subdivisions shall
30 be determined by agreement between the political subdivisions
31 comprising the port authority, and which. The number of
32 directors comprising the board of directors of a port authority
33 created by one political subdivision shall consist of the
34 number of directors the political subdivision considers
35 necessary. The number may be changed by resolution of each
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1 of the political subdivisions comprising the port authority
2 and in accordance with any agreement between the political
3 subdivisions comprising the port authority.
4 5. The board may provide procedures for the removal of a
5 director who fails to attend three consecutive regular meetings
6 of the board. If a director is so removed, a successor shall
7 be appointed for the remaining term of the removed director in
8 the same manner provided for the original appointment. The
9 appointing body Any political subdivisions comprising the port
10 authority may at any time remove a director appointed by it for
11 misfeasance, nonfeasance, or malfeasance in office and appoint
12 a successor for the remaining term of the removed director in
13 the same manner as provided for by the original appointment.
14 Sec. 12. Section 28J.8, subsection 1, Code 2021, is amended
15 to read as follows:
16 1. The area of jurisdiction of a port authority shall
17 include all of the territory of the port authority facility and
18 of the political subdivisions comprising the port authority
19 and, if the port authority owns or leases a railroad line or
20 airport, the territory on which the railroad’s line, terminals,
21 and related facilities or the airport’s runways, terminals,
22 and related facilities are located, regardless of whether the
23 territory is located in the political subdivisions comprising
24 the port authority.
25 Sec. 13. Section 28J.9, subsections 4, 8, and 10, Code 2021,
26 are amended to read as follows:
27 4. Acquire, construct, furnish, equip, maintain, repair,
28 sell, exchange, lease, lease with an option to purchase,
29 convey interests in real or personal property, and operate any
30 property of the port authority within or outside the territory
31 of the political subdivisions comprising the port authority in
32 furtherance of any authorized purpose, including in connection
33 with transportation, recreational, governmental operations, or
34 cultural activities in furtherance of an authorized purpose.
35 8. Issue port authority revenue bonds beyond the limit
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1 of bonded indebtedness provided by law, payable solely from
2 revenues as provided in section 28J.21, and enter into loan
3 agreements and lease contracts as provided in section 28J.21A,
4 for the purpose of providing funds to pay the costs of any
5 facility or facilities of the port authority or parts thereof.
6 10. Enjoy and possess the same legislative and executive
7 rights, privileges, and powers granted cities under chapter
8 chapters 28F, 364, and 384, and counties under chapter 331,
9 including the exercise of police power but excluding the power
10 to levy taxes.
11 Sec. 14. Section 28J.11, subsection 2, Code 2021, is amended
12 to read as follows:
13 2. Impair the powers of a political subdivision to develop
14 or improve a port and terminal authority facility except as
15 restricted by section 28J.15.
16 Sec. 15. Section 28J.13, Code 2021, is amended to read as
17 follows:
18 28J.13 Annual budget —— use of rents and charges.
19 The board shall annually prepare a budget for the port
20 authority. Revenues received by the port authority shall be
21 used for the general expenses of the port authority and to
22 pay interest, amortization, and retirement charges on, and
23 principal of, money borrowed and to make payments under lease
24 contracts. Except as provided in section 28J.26, if there
25 remains, at the end of any fiscal year, a surplus of such funds
26 after providing for the above uses, the board shall pay such
27 surplus into the general funds of the political subdivisions
28 comprising the port authority as agreed to by the subdivisions.
29 Sec. 16. Section 28J.15, Code 2021, is amended to read as
30 follows:
31 28J.15 Limitation on certain powers of political
32 subdivisions.
33 A political subdivision creating or participating in the
34 creation of a port authority in accordance with section 28J.2
35 shall not, during the time the port authority is in existence,
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1 exercise the rights and powers provided in chapters 28A, 28K,
2 and 384 relating to the political subdivision’s authority over
3 a port, wharf, dock, harbor, or other facility substantially
4 similar to that political subdivision’s authority under a port
5 authority granted under this chapter, except as provided in
6 section 28J.2.
7 Sec. 17. Section 28J.16, subsection 1, paragraphs a and c,
8 Code 2021, are amended to read as follows:
9 a. A port authority may charge, alter, and collect rental
10 rents, fees, or other charges or revenues for the use or
11 services of any port authority facility and contract for the
12 use or services of a facility, and fix the terms, conditions,
13 rental rents, fees, or other charges for the use or services.
14 c. The rental rents, fees, or other charges, and other
15 revenues of a port authority shall not be subject to
16 supervision or regulation by any other authority, commission,
17 board, bureau, or governmental agency of the state and the
18 contract may provide for acquisition of all or any part of
19 the port authority facility for such consideration payable
20 over the period of the contract or otherwise as the port
21 authority determines to be appropriate, but subject to the
22 provisions of any resolution authorizing the issuance of port
23 authority revenue bonds, loan agreements, lease contracts,
24 or certificates of participation in or other participatory<