Senate File 526 - Introduced
SENATE FILE 526
BY COMMITTEE ON COMMERCE
(SUCCESSOR TO SF 306)
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 2023,
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 2023, 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 2023, 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. “Facility” does not include a recreational facility.
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 2023, 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 and 14, Code 2023, are
27 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 14. “Port authority revenue bonds” or “revenue bonds” means
32 revenue bonds and revenue refunding bonds issued pursuant to
33 section 28J.21.
34 Sec. 6. Section 28J.1, Code 2023, is amended by adding the
35 following new subsection:
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1 NEW SUBSECTION. 15A. “Public works project” means a
2 project of a type that a political subdivision is authorized
3 to undertake as otherwise provided by law, including
4 but not limited to public roads and other transportation
5 infrastructure, utility systems such as water treatment
6 facilities and sewage treatment facilities, or a project as
7 defined in section 384.80.
8 Sec. 7. Section 28J.1, subsection 16, Code 2023, is amended
9 to read as follows:
10 16. “Revenues” means rental rents, fees, income, rates,
11 tolls, receipts, and other charges or revenues received by a
12 port authority or derived from the operations of a facility
13 or for the use or services of a facility, a gift or grant
14 received with respect to a facility, moneys received with
15 respect to the lease, sublease, sale, including installment
16 sale or conditional sale, or other disposition of a facility,
17 moneys received in repayment of and for interest on any
18 loans made by the port authority to a person or governmental
19 agency, proceeds of port authority revenue bonds for payment
20 of principal, premium, or interest on the bonds authorized
21 by the port authority, proceeds or borrowings under port
22 authority loan agreements for payment of principal, premium,
23 or interest on the port authority obligations thereunder,
24 proceeds or borrowings under lease contracts for the payment of
25 lease payments thereunder, proceeds under any certificates of
26 participation in or other participatory interests or evidences
27 of any obligations under a loan agreement or lease contract,
28 proceeds from any insurance, condemnation, or guarantee
29 pertaining to the financing of the facility, and income and
30 profit from the investment of the proceeds of port authority
31 revenue bonds, proceeds, or borrowings under loan agreements,
32 lease contracts, or proceeds of certificates of participation
33 in or other participatory interests or evidences of any
34 obligation under any loan agreement or lease contract or of any
35 revenues.
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1 Sec. 8. Section 28J.2, subsection 1, Code 2023, is amended
2 to read as follows:
3 1. Two or more political subdivisions may by resolution
4 create a port authority under this chapter by resolution
5 anywhere in this state, regardless of proximity to a body
6 of water. Only the political subdivisions creating a port
7 authority have jurisdiction over the port authority. If a
8 proposal to create a port authority receives a favorable
9 majority of the members of the elected legislative body of each
10 of the political subdivisions, the port authority is created
11 at the time provided in the resolution. The jurisdiction of
12 a port authority includes the territory described in section
13 28J.8.
14 Sec. 9. Section 28J.2, Code 2023, is amended by adding the
15 following new subsection:
16 NEW SUBSECTION. 5. A port authority is an entity separate
17 from the political subdivisions comprising the port authority.
18 The powers granted to the port authority pursuant to this
19 chapter are in addition to other powers, and constitute
20 independent powers that may be exercised by the port authority
21 whether or not the political subdivisions comprising the
22 port authority have or may exercise any of those powers
23 individually.
24 Sec. 10. Section 28J.3, subsection 1, Code 2023, is amended
25 to read as follows:
26 1. The political subdivisions comprising a port authority
27 may appropriate and expend public funds and make contributions
28 to the port authority to finance or subsidize the operation and
29 authorized purposes of the port authority and pay the costs
30 and expenses incurred by the port authority in carrying out
31 any operations or authorized purposes of the port authority.
32 Political subdivisions comprising the port authority may
33 enter into agreements with each other or the port authority
34 providing for the contributions to the port authority to be
35 made by each of the political subdivisions and providing for
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1 the obligations of each of the political subdivisions to pay,
2 finance, or subsidize the costs and expenses incurred by the
3 port authority. Political subdivisions comprising the port
4 authority may, by resolution, authorize and appropriate funds
5 for any contribution, payment, or financing required to be
6 made under such agreement by the use of any method available
7 to government agencies for providing funds or financing under
8 section 28J.16. A port authority shall control tax revenues
9 allocated to the facilities the port authority administers and
10 all revenues derived from the operation of the port authority,
11 the sale of its property, interest on investments, or from any
12 other source related to the port authority.
13 Sec. 11. Section 28J.5, subsections 1, 2, and 5, Code 2023,
14 are amended to read as follows:
15 1. A port authority created pursuant to section 28J.2 shall
16 be governed by a board of directors. Members of a board of
17 directors of a port authority created by two or more political
18 subdivisions shall be divided among the political subdivisions
19 comprising the port authority in such proportions as the
20 political subdivisions may agree and shall be appointed by the
21 respective political subdivision’s elected legislative body.
22 Members of a board of directors of a port authority created by
23 one political subdivision shall be appointed by the political
24 subdivision’s governing body.
25 2. The number of directors comprising the board of a port
26 authority created by two or more political subdivisions shall
27 be determined by agreement between the political subdivisions
28 comprising the port authority, and which. The number of
29 directors comprising the board of directors of a port authority
30 created by one political subdivision shall consist of the
31 number of directors the political subdivision considers
32 necessary. The number may be changed by resolution of each
33 of the political subdivisions comprising the port authority
34 and in accordance with any agreement between the political
35 subdivisions comprising the port authority.
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1 5. The board may provide procedures for the removal of a
2 director who fails to attend three consecutive regular meetings
3 of the board. If a director is so removed, a successor shall
4 be appointed for the remaining term of the removed director in
5 the same manner provided for the original appointment. The
6 appointing body Any political subdivisions comprising the port
7 authority may at any time remove a director appointed by it for
8 misfeasance, nonfeasance, or malfeasance in office and appoint
9 a successor for the remaining term of the removed director in
10 the same manner as provided for by the original appointment.
11 Sec. 12. Section 28J.8, subsection 1, Code 2023, is amended
12 to read as follows:
13 1. The area of jurisdiction of a port authority shall
14 include all of the territory of the port authority facility and
15 of the political subdivisions comprising the port authority
16 and, if the port authority owns or leases a railroad line or
17 airport, the territory on which the railroad’s line, terminals,
18 and related facilities or the airport’s runways, terminals,
19 and related facilities are located, regardless of whether the
20 territory is located in the political subdivisions comprising
21 the port authority.
22 Sec. 13. Section 28J.9, subsections 4, 8, and 10, Code 2023,
23 are amended to read as follows:
24 4. Acquire, construct, furnish, equip, maintain, repair,
25 sell, exchange, lease, lease with an option to purchase,
26 convey interests in real or personal property, and operate any
27 property of the port authority within or outside the territory
28 of the political subdivisions comprising the port authority in
29 furtherance of any authorized purpose, including in connection
30 with transportation, recreational, governmental operations, or
31 cultural activities in furtherance of an authorized purpose.
32 8. Issue port authority revenue bonds beyond the limit
33 of bonded indebtedness provided by law, payable solely from
34 revenues as provided in section 28J.21, and enter into loan
35 agreements and lease contracts as provided in section 28J.21A,
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1 for the purpose of providing funds to pay the costs of any
2 facility or facilities of the port authority or parts thereof.
3 10. Enjoy and possess the same legislative and executive
4 rights, privileges, and powers granted cities under chapter
5 chapters 28F, 364, and 384, and counties under chapter 331,
6 including the exercise of police power but excluding the power
7 to levy taxes.
8 Sec. 14. Section 28J.11, subsection 2, Code 2023, is amended
9 to read as follows:
10 2. Impair the powers of a political subdivision to develop
11 or improve a port and terminal authority facility except as
12 restricted by section 28J.15.
13 Sec. 15. Section 28J.13, Code 2023, is amended to read as
14 follows:
15 28J.13 Annual budget —— use of rents and charges.
16 The board shall annually prepare a budget for the port
17 authority. Revenues received by the port authority shall be
18 used for the general expenses of the port authority and to
19 pay interest, amortization, and retirement charges on, and
20 principal of, money borrowed and to make payments under lease
21 contracts. Except as provided in section 28J.26, if there
22 remains, at the end of any fiscal year, a surplus of such funds
23 after providing for the above uses, the board shall pay such
24 surplus into the general funds of the political subdivisions
25 comprising the port authority as agreed to by the subdivisions.
26 Sec. 16. Section 28J.15, Code 2023, is amended to read as
27 follows:
28 28J.15 Limitation on certain powers of political
29 subdivisions.
30 A political subdivision creating or participating in the
31 creation of a port authority in accordance with section 28J.2
32 shall not, during the time the port authority is in existence,
33 exercise the rights and powers provided in chapters 28A, 28K,
34 and 384 relating to the political subdivision’s authority over
35 a port, wharf, dock, harbor, or other facility substantially
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1 similar to that political subdivision’s authority under a port
2 authority granted under this chapter, except as provided in
3 section 28J.2.
4 Sec. 17. Section 28J.16, subsection 1, paragraphs a and c,
5 Code 2023, are amended to read as follows:
6 a. A port authority may charge, alter, and collect rental
7 rents, fees, or other charges or revenues for the use or
8 services of any port authority facility and contract for the
9 use or services of a facility, and fix the terms, conditions,
10 rental rents, fees, or other charges for the use or services.
11 c. The rental rents, fees, or other charges, and other
12 revenues of a port authority shall not be subject to
13 supervision or regulation by any other authority, commission,
14 board, bureau, or governmental agency of the state and the
15 contract may provide for acquisition of all or any part of
16 the port authority facility for such consideration payable
17 over the period of the contract or otherwise as the port
18 authority determines to be appropriate, but subject to the
19 provisions of any resolution authorizing the issuance of port
20 authority revenue bonds, loan agreements, lease contracts,
21 or certificates of participation in or other participatory
22 interests or evidences of any obligations under a loan
23 agreement or lease contract, or of any trust agreement securing
24 the bonds, loan agreements, lease contracts, or certificates of
25 participation in or other participatory i