Bill Text: IA SSB3070 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act regarding port authorities, including by allowing port authorities to enter into certain loan agreements and lease contracts.(See SF 2305.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2022-02-16 - Committee report approving bill, renumbered as SF 2305. [SSB3070 Detail]
Download: Iowa-2021-SSB3070-Introduced.html
Senate
Study
Bill
3070
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
SCHULTZ)
A
BILL
FOR
An
Act
regarding
port
authorities,
including
by
allowing
port
1
authorities
to
enter
into
certain
loan
agreements
and
lease
2
contracts.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5606XC
(1)
89
th/ns
S.F.
_____
Section
1.
Section
28J.1,
subsections
1
and
3,
Code
2022,
1
are
amended
to
read
as
follows:
2
1.
“Authorized
purposes”
means
an
activity
that
enhances,
3
fosters,
aids,
provides,
or
promotes
transportation,
4
infrastructure,
utility
service,
flood
and
erosion
control,
5
economic
development,
housing,
recreation,
education,
6
governmental
operations,
culture,
or
research
within
the
7
jurisdiction
of
a
port
authority.
8
3.
“City”
means
the
same
as
defined
in
section
362.2
,
and
9
also
includes
a
city
enterprise
as
defined
in
section
384.24
.
10
Sec.
2.
Section
28J.1,
subsection
6,
paragraphs
d,
f,
and
g,
11
Code
2022,
are
amended
to
read
as
follows:
12
d.
The
cost
of
machinery,
furnishings,
equipment,
financing
13
charges,
interest
prior
to
and
during
construction
and
for
14
no
more
than
twelve
months
after
completion
of
construction,
15
engineering,
architectural
services,
technical
services,
16
preliminary
reports,
property
valuations,
consequential
17
damages
or
costs,
provisions
for
contingencies,
supervision,
18
inspection,
testing,
and
expenses
of
research
and
development
19
with
respect
to
a
facility.
20
f.
The
interest
upon
the
revenue
bonds
,
and
pledge
21
orders
,
loan
agreements,
lease
contracts,
and
certificates
of
22
participation
in
or
other
participatory
interests
or
evidences
23
of
any
obligation
under
a
loan
agreement
or
lease
contract,
24
during
the
period
or
estimated
period
of
construction
and
25
for
twelve
months
thereafter,
or
for
twelve
months
after
the
26
acquisition
date,
and
upon
reserve
funds
as
the
port
authority
27
deems
advisable
in
connection
with
a
facility
and
the
issuance
28
of
port
authority
revenue
bonds
,
and
pledge
orders
,
loan
29
agreements,
lease
contracts,
and
certificates
of
participation
30
in
or
other
participatory
interests
or
evidences
of
any
31
obligation
under
a
loan
agreement
or
lease
contract
.
32
g.
The
costs
of
issuance
of
port
authority
revenue
bonds
,
33
and
pledge
orders
,
loan
agreements,
lease
contracts,
and
34
certificates
of
participation
in
or
other
participatory
35
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_____
interests
or
evidences
of
any
obligations
under
a
loan
1
agreement
or
lease
contract
.
2
Sec.
3.
Section
28J.1,
subsections
7
and
8,
Code
2022,
are
3
amended
to
read
as
follows:
4
7.
“Facility”
or
“port
authority
facility”
means
any
5
public
works
project,
intermodal
freight
or
transportation
6
facility,
project
for
which
tax-exempt
financing
is
authorized
7
by
the
Internal
Revenue
Code,
and
real
or
personal
property
8
or
improvements
owned,
leased,
constructed,
or
otherwise
9
controlled
or
financed
by
or
for
a
port
authority
and
that
10
is
related
to
or
in
furtherance
of
one
or
more
authorized
11
purposes.
12
8.
“Governmental
agency”
means
a
department,
division,
13
or
other
unit
of
state
government
of
this
state
or
any
other
14
state,
city,
county,
any
political
subdivision,
township,
or
15
other
governmental
subdivision,
or
any
city
utility,
any
other
16
public
corporation
,
special
purpose
district,
authority,
or
17
agency
created
under
the
laws
of
this
state,
any
other
state,
18
the
United
States,
or
any
department
or
agency
thereof,
or
any
19
agency,
commission,
or
authority
established
pursuant
to
an
20
interstate
compact
or
agreement
or
combination
thereof.
21
Sec.
4.
Section
28J.1,
Code
2022,
is
amended
by
adding
the
22
following
new
subsection:
23
NEW
SUBSECTION
.
8A.
“Net
revenues”
means
revenues
less
24
operating
expenses.
25
Sec.
5.
Section
28J.1,
subsections
11,
12,
and
14,
Code
26
2022,
are
amended
to
read
as
follows:
27
11.
“Political
subdivision”
means
a
city,
county,
28
city-county
consolidation,
or
multicounty
consolidation,
or
29
combination
thereof
municipality
as
defined
in
section
16.151
.
30
12.
“Political
subdivisions
comprising
the
port
authority”
31
means
the
each
political
subdivisions
subdivision
which
created
32
or
participated
in
the
creation
of
the
port
authority
under
33
section
28J.2
,
or
which
joined
an
existing
port
authority
under
34
section
28J.4
.
35
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22
S.F.
_____
14.
“Port
authority
revenue
bonds”
or
“revenue
bonds”
means
1
revenue
bonds
and
revenue
refunding
bonds
issued
pursuant
to
2
section
28J.21
.
3
Sec.
6.
Section
28J.1,
Code
2022,
is
amended
by
adding
the
4
following
new
subsection:
5
NEW
SUBSECTION
.
15A.
“Public
works
project”
means
a
6
project
of
a
type
that
a
political
subdivision
is
authorized
7
to
undertake
as
otherwise
provided
by
law,
including
8
but
not
limited
to
public
roads
and
other
transportation
9
infrastructure,
utility
systems
such
as
water
treatment
10
facilities
and
sewage
treatment
facilities,
or
a
project
as
11
defined
in
section
384.80.
12
Sec.
7.
Section
28J.1,
subsection
16,
Code
2022,
is
amended
13
to
read
as
follows:
14
16.
“Revenues”
means
rental
rents,
fees
,
income,
rates,
15
tolls,
receipts,
and
other
charges
or
revenues
received
by
a
16
port
authority
or
derived
from
the
operations
of
a
facility
17
or
for
the
use
or
services
of
a
facility,
a
gift
or
grant
18
received
with
respect
to
a
facility,
moneys
received
with
19
respect
to
the
lease,
sublease,
sale,
including
installment
20
sale
or
conditional
sale,
or
other
disposition
of
a
facility,
21
moneys
received
in
repayment
of
and
for
interest
on
any
22
loans
made
by
the
port
authority
to
a
person
or
governmental
23
agency,
proceeds
of
port
authority
revenue
bonds
for
payment
24
of
principal,
premium,
or
interest
on
the
bonds
authorized
25
by
the
port
authority,
proceeds
or
borrowings
under
port
26
authority
loan
agreements
for
payment
of
principal,
premium,
27
or
interest
on
the
port
authority
obligations
thereunder,
28
proceeds
or
borrowings
under
lease
contracts
for
the
payment
of
29
lease
payments
thereunder,
proceeds
under
any
certificates
of
30
participation
in
or
other
participatory
interests
or
evidences
31
of
any
obligations
under
a
loan
agreement
or
lease
contract,
32
proceeds
from
any
insurance,
condemnation,
or
guarantee
33
pertaining
to
the
financing
of
the
facility,
and
income
and
34
profit
from
the
investment
of
the
proceeds
of
port
authority
35
-3-
LSB
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22
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_____
revenue
bonds
,
proceeds,
or
borrowings
under
loan
agreements,
1
lease
contracts,
or
proceeds
of
certificates
of
participation
2
in
or
other
participatory
interests
or
evidences
of
any
3
obligation
under
any
loan
agreement
or
lease
contract
or
of
any
4
revenues.
5
Sec.
8.
Section
28J.2,
subsection
1,
Code
2022,
is
amended
6
to
read
as
follows:
7
1.
Two
One
or
more
political
subdivisions
may
by
resolution
8
create
a
port
authority
under
this
chapter
by
resolution
9
anywhere
in
this
state,
regardless
of
proximity
to
a
body
of
10
water
.
If
a
proposal
to
create
a
port
authority
receives
a
11
favorable
majority
of
the
members
of
the
elected
legislative
12
body
of
each
of
the
political
subdivisions,
the
port
authority
13
is
created
at
the
time
provided
in
the
resolution.
The
14
jurisdiction
of
a
port
authority
includes
the
territory
15
described
in
section
28J.8
.
16
Sec.
9.
Section
28J.2,
Code
2022,
is
amended
by
adding
the
17
following
new
subsection:
18
NEW
SUBSECTION
.
5.
A
port
authority
is
an
entity
separate
19
from
the
political
subdivisions
comprising
the
port
authority.
20
The
powers
granted
to
the
port
authority
pursuant
to
this
21
chapter
are
in
addition
to
other
powers,
and
constitute
22
independent
powers
that
may
be
exercised
by
the
port
authority
23
whether
or
not
the
political
subdivisions
comprising
the
24
port
authority
have
or
may
exercise
any
of
those
powers
25
individually.
26
Sec.
10.
Section
28J.3,
subsection
1,
Code
2022,
is
amended
27
to
read
as
follows:
28
1.
The
political
subdivisions
comprising
a
port
authority
29
may
appropriate
and
expend
public
funds
and
make
contributions
30
to
the
port
authority
to
finance
or
subsidize
the
operation
and
31
authorized
purposes
of
the
port
authority
and
pay
the
costs
32
and
expenses
incurred
by
the
port
authority
in
carrying
out
33
any
operations
or
authorized
purposes
of
the
port
authority
.
34
Political
subdivisions
comprising
the
port
authority
may
35
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enter
into
agreements
with
each
other
or
the
port
authority
1
providing
for
the
contributions
to
the
port
authority
to
be
2
made
by
each
of
the
political
subdivisions
and
providing
for
3
the
obligations
of
each
of
the
political
subdivisions
to
pay,
4
finance,
or
subsidize
the
costs
and
expenses
incurred
by
the
5
port
authority.
Political
subdivisions
comprising
the
port
6
authority
may,
by
resolution,
authorize
and
appropriate
funds
7
for
any
contribution,
payment,
or
financing
required
to
be
8
made
under
such
agreement
by
the
use
of
any
method
available
9
to
government
agencies
for
providing
funds
or
financing
under
10
section
28J.16.
A
port
authority
shall
control
tax
revenues
11
allocated
to
the
facilities
the
port
authority
administers
and
12
all
revenues
derived
from
the
operation
of
the
port
authority,
13
the
sale
of
its
property,
interest
on
investments,
or
from
any
14
other
source
related
to
the
port
authority.
15
Sec.
11.
Section
28J.5,
subsections
1,
2,
and
5,
Code
2022,
16
are
amended
to
read
as
follows:
17
1.
A
port
authority
created
pursuant
to
section
28J.2
shall
18
be
governed
by
a
board
of
directors.
Members
of
a
board
of
19
directors
of
a
port
authority
created
by
two
or
more
political
20
subdivisions
shall
be
divided
among
the
political
subdivisions
21
comprising
the
port
authority
in
such
proportions
as
the
22
political
subdivisions
may
agree
and
shall
be
appointed
by
the
23
respective
political
subdivision’s
elected
legislative
body.
24
Members
of
a
board
of
directors
of
a
port
authority
created
by
25
one
political
subdivision
shall
be
appointed
by
the
political
26
subdivision’s
governing
body.
27
2.
The
number
of
directors
comprising
the
board
of
a
port
28
authority
created
by
two
or
more
political
subdivisions
shall
29
be
determined
by
agreement
between
the
political
subdivisions
30
comprising
the
port
authority
,
and
which
.
The
number
of
31
directors
comprising
the
board
of
directors
of
a
port
authority
32
created
by
one
political
subdivision
shall
consist
of
the
33
number
of
directors
the
political
subdivision
considers
34
necessary.
The
number
may
be
changed
by
resolution
of
each
35
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of
the
political
subdivisions
comprising
the
port
authority
1
and
in
accordance
with
any
agreement
between
the
political
2
subdivisions
comprising
the
port
authority
.
3
5.
The
board
may
provide
procedures
for
the
removal
of
a
4
director
who
fails
to
attend
three
consecutive
regular
meetings
5
of
the
board.
If
a
director
is
so
removed,
a
successor
shall
6
be
appointed
for
the
remaining
term
of
the
removed
director
in
7
the
same
manner
provided
for
the
original
appointment.
The
8
appointing
body
Any
political
subdivisions
comprising
the
port
9
authority
may
at
any
time
remove
a
director
appointed
by
it
for
10
misfeasance,
nonfeasance,
or
malfeasance
in
office
and
appoint
11
a
successor
for
the
remaining
term
of
the
removed
director
in
12
the
same
manner
as
provided
for
by
the
original
appointment
.
13
Sec.
12.
Section
28J.8,
subsection
1,
Code
2022,
is
amended
14
to
read
as
follows:
15
1.
The
area
of
jurisdiction
of
a
port
authority
shall
16
include
all
of
the
territory
of
the
port
authority
facility
and
17
of
the
political
subdivisions
comprising
the
port
authority
18
and,
if
the
port
authority
owns
or
leases
a
railroad
line
or
19
airport,
the
territory
on
which
the
railroad’s
line,
terminals,
20
and
related
facilities
or
the
airport’s
runways,
terminals,
21
and
related
facilities
are
located,
regardless
of
whether
the
22
territory
is
located
in
the
political
subdivisions
comprising
23
the
port
authority.
24
Sec.
13.
Section
28J.9,
subsections
4,
8,
and
10,
Code
2022,
25
are
amended
to
read
as
follows:
26
4.
Acquire,
construct,
furnish,
equip,
maintain,
repair,
27
sell,
exchange,
lease,
lease
with
an
option
to
purchase,
28
convey
interests
in
real
or
personal
property,
and
operate
any
29
property
of
the
port
authority
within
or
outside
the
territory
30
of
the
political
subdivisions
comprising
the
port
authority
in
31
furtherance
of
any
authorized
purpose,
including
in
connection
32
with
transportation,
recreational,
governmental
operations,
or
33
cultural
activities
in
furtherance
of
an
authorized
purpose
.
34
8.
Issue
port
authority
revenue
bonds
beyond
the
limit
35
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22
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_____
of
bonded
indebtedness
provided
by
law,
payable
solely
from
1
revenues
as
provided
in
section
28J.21
,
and
enter
into
loan
2
agreements
and
lease
contracts
as
provided
in
section
28J.21A,
3
for
the
purpose
of
providing
funds
to
pay
the
costs
of
any
4
facility
or
facilities
of
the
port
authority
or
parts
thereof.
5
10.
Enjoy
and
possess
the
same
legislative
and
executive
6
rights,
privileges,
and
powers
granted
cities
under
chapter
7
chapters
28F,
364
,
and
384,
and
counties
under
chapter
331
,
8
including
the
exercise
of
police
power
but
excluding
the
power
9
to
levy
taxes.
10
Sec.
14.
Section
28J.11,
subsection
2,
Code
2022,
is
amended
11
to
read
as
follows:
12
2.
Impair
the
powers
of
a
political
subdivision
to
develop
13
or
improve
a
port
and
terminal
authority
facility
except
as
14
restricted
by
section
28J.15
.
15
Sec.
15.
Section
28J.13,
Code
2022,
is
amended
to
read
as
16
follows:
17
28J.13
Annual
budget
——
use
of
rents
and
charges.
18
The
board
shall
annually
prepare
a
budget
for
the
port
19
authority.
Revenues
received
by
the
port
authority
shall
be
20
used
for
the
general
expenses
of
the
port
authority
and
to
21
pay
interest,
amortization,
and
retirement
charges
on
,
and
22
principal
of,
money
borrowed
and
to
make
payments
under
lease
23
contracts
.
Except
as
provided
in
section
28J.26
,
if
there
24
remains,
at
the
end
of
any
fiscal
year,
a
surplus
of
such
funds
25
after
providing
for
the
above
uses,
the
board
shall
pay
such
26
surplus
into
the
general
funds
of
the
political
subdivisions
27
comprising
the
port
authority
as
agreed
to
by
the
subdivisions.
28
Sec.
16.
Section
28J.15,
Code
2022,
is
amended
to
read
as
29
follows:
30
28J.15
Limitation
on
certain
powers
of
political
31
subdivisions.
32
A
political
subdivision
creating
or
participating
in
the
33
creation
of
a
port
authority
in
accordance
with
section
28J.2
34
shall
not,
during
the
time
the
port
authority
is
in
existence,
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exercise
the
rights
and
powers
provided
in
chapters
28A
,
28K
,
1
and
384
relating
to
the
political
subdivision’s
authority
over
2
a
port,
wharf,
dock,
harbor
,
or
other
facility
substantially
3
similar
to
that
political
subdivision’s
authority
under
a
port
4
authority
granted
under
this
chapter
,
except
as
provided
in
5
section
28J.2
.
6
Sec.
17.
Section
28J.16,
subsection
1,
paragraphs
a
and
c,
7
Code
2022,
are
amended
to
read
as
follows:
8
a.
A
port
authority
may
charge,
alter,
and
collect
rental
9
rents,
fees
,
or
other
charges
or
revenues
for
the
use
or
10
services
of
any
port
authority
facility
and
contract
for
the
11
use
or
services
of
a
facility,
and
fix
the
terms,
conditions,
12
rental
rents,
fees,
or
other
charges
for
the
use
or
services.
13
c.
The
rental
rents,
fees
,
or
other
charges
,
and
other
14
revenues
of
a
port
authority
shall
not
be
subject
to
15
supervision
or
regulation
by
any
other
authority,
commission,
16
board,
bureau,
or
governmental
agency
of
the
state
and
the
17
contract
may
provide
for
acquisition
of
all
or
any
part
of
18
the
port
authority
facility
for
such
consideration
payable
19
over
the
period
of
the
contract
or
otherwise
as
the
port
20
authority
determines
to
be
appropriate,
but
subject
to
the
21
provisions
of
any
resolution
authorizing
the
issuance
of
port
22
authority
revenue
bonds
,
loan
agreements,
lease
contracts,
23
or
certificates
of
participation
in
or
other
participatory
24
interests
or
evidences
of
any
obligations
under
a
loan
25
agreement
or
lease
contract,
or
of
any
trust
agreement
securing
26
the
bonds
,
loan
agreements,
lease
contracts,
or
certificates
of
27
participation
in
or
other
participatory
interests
or
evidences
28
of
any
obligation
under
a
loan
agreement
or
lease
contract
.
29
Sec.
18.
Section
28J.16,
subsection
2,
paragraph
a,
Code
30
2022,
is
amended
to
read
as
follows:
31
a.
A
governmental
agency
may
cooperate
with
the
port
32
authority
in
the
acquisition
,
operation,
or
construction
of
a
33
port
authority
facility
and
shall
enter
into
such
agreements
34
with
the
port
authority
as
may
be
appropriate,
which
shall
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provide
for
contributions
by
the
parties
in
a
proportion
as
may
1
be
agreed
upon
and
other
terms
as
may
be
mutually
satisfactory
2
to
the
parties
including
the
authorization
of
the
construction
3
of
the
facility
by
one
of
the
parties
acting
as
agent
for
all
4
of
the
parties
and
the
ownership
,
operation,
and
control
of
5
the
facility
by
the
port
authority
to
the
extent
necessary
or
6
appropriate.
7
Sec.
19.
Section
28J.17,
subsection
1,
paragraph
a,
Code
8
2022,
is
amended
to
read
as
follows:
9
a.
A
port
authority
may
enter
into
a
contract
or
other
10
arrangement
with
a
person,
railroad,
utility
company,
11
corporation,
governmental
agency
including
sewerage,
drainage,
12
conservation,
conservancy,
or
other
improvement
districts
in
13
this
or
other
states,
or
the
governments
or
agencies
of
foreign
14
countries
as
may
be
necessary
or
convenient
for
the
exercise
15
of
the
powers
granted
by
this
chapter
.
The
port
authority
16
may
purchase,
lease,
or
acquire
land
or
other
property
in
17
any
county
of
this
state
and
in
adjoining
states
for
the
18
accomplishment
of
authorized
purposes
of
the
port
authority,
or
19
for
the
improvement
of
the
harbor
and
port
authority
facilities
20
over
which
the
port
authority
may
have
jurisdiction
including
21
development
of
port
authority
facilities
in
adjoining
states.
22
The
authority
granted
in
this
section
to
enter
into
contracts
23
or
other
arrangements
with
the
federal
government
includes
the
24
power
to
enter
into
any
contracts,
arrangements,
or
agreements
25
that
may
be
necessary
to
hold
and
save
harmless
the
United
26
States
from
damages
due
to
the
construction
and
maintenance
by
27
the
United
States
of
work
the
United
States
undertakes.
28
Sec.
20.
Section
28J.19,
Code
2022,
is
amended
to
read
as
29
follows:
30
28J.19
Property
tax
exemption.
31
A
port
authority
shall
be
exempt
from
and
shall
not
be
32
required
to
pay
taxes
on
real
property
that
is
purchased
by
a
33
port
authority
or
real
property
belonging
to
a
port
authority
34
that
is
used
exclusively
for
an
authorized
purpose
,
as
provided
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in
section
427.1,
subsection
34
.
1
Sec.
21.
NEW
SECTION
.
28J.21A
Loan
agreements
——
lease
2
contracts
——
trust
agreements.
3
1.
Definitions.
As
used
in
this
section,
unless
the
context
4
otherwise
requires:
5
a.
“Lease
contract”
includes
any
certificates
of
6
participation
or
other
participatory
interests
in
the
lease
7
contract
or
obligations
arising
out
of
the
lease
contract.
8
b.
“Loan
agreement”
includes
any
notes,
certificates,
or
any
9
other
participatory
interests
issued
to
evidence
the
parties’
10
obligations
arising
out
of
the
loan
agreement.
11
2.
Loan
agreements.
A
port
authority
may
enter
into
loan
12
agreements
to
borrow
money
to
pay
the
costs
of
any
facility,
or
13
parts
thereof,
or
to
refund
other
obligations
which
are
payable
14
from
the
net
revenues
of
the
port
authority
at
lower,
the
same,
15
or
higher
rates
of
interest
in
accordance
with
the
all
of
the
16
following
terms
and
procedures:
17
a.
A
loan
agreement
entered
into
by
a
port
authority
may
18
contain
provisions
similar
to
those
in
loan
agreements
between
19
private
parties,
including
but
not
limited
to
any
of
the
20
following:
21
(1)
The
loan
agreement
may
provide
for
the
issuance
22
of
notes,
certificates
of
participation,
or
any
other
23
participatory
interests
to
evidence
the
parties’
obligations.
24
(2)
The
loan
agreement
may
provide
for
maturity
in
one
or
25
more
installments.
26
(3)
The
loan
agreement
may
be
in
registered
form
and
carry
27
registration
and
conversion
privileges.
28
(4)
The
loan
agreement
may
be
payable
as
to
principal
and
29
interest
at
times
and
places
as
specified.
30
(5)
The
loan
agreement
may
be
subject
to
terms
of
redemption
31
prior
to
maturity
with
or
without
a
premium.
32
(6)
The
loan
agreement
may
be
in
one
or
more
denominations.
33
b.
A
provision
of
a
loan
agreement
which
stipulates
that
34
a
portion
of
the
payments
be
applied
as
interest
is
subject
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to
chapter
74A
and
such
interest
may
be
at
a
variable
rate
or
1
rates
changing
from
time
to
time
in
accordance
with
a
base
or
2
formula.
Other
laws
relating
to
interest
rates
do
not
apply
3
and
the
provisions
of
chapter
75
are
not
applicable.
4
c.
The
board
may
authorize
a
loan
agreement
to
be
5
payable
solely
from
the
net
revenues
of
a
port
authority
by
6
substantially
following
the
authorization
procedures
of
section
7
28J.21
for
the
issuance
of
revenue
bonds.
The
resolution
8
authorizing
the
loan
agreement
may
also
prescribe
additional
9
provisions,
terms,
conditions,
and
covenants
that
the
port
10
authority
deems
advisable,
consistent
with
this
chapter,
11
including
provisions
for
creating
and
maintaining
reserve
12
funds
and
for
the
authorization
of
additional
loan
agreements
13
ranking
on
a
parity
with
such
loan
agreements
and
additional
14
loan
agreements
junior
and
subordinate
to
such
loan
agreement,
15
and
that
such
loan
agreement
shall
rank
on
a
parity
with
or
16
be
junior
and
subordinate
to
any
loan
agreement
which
may
be
17
then
outstanding.
A
port
authority
loan
agreement
shall
be
18
a
contract
between
the
port
authority
and
the
lender
and
the
19
resolution
shall
be
made
part
of
the
contract.
20
d.
A
loan
agreement
to
which
a
port
authority
is
a
party
21
is
an
obligation
of
the
political
subdivisions
comprising
the
22
port
authority
for
the
purposes
of
chapters
502
and
636,
and
23
is
a
lawful
investment
for
any
bank,
trust
company,
savings
24
association,
deposit
guaranty
association,
investment
company,
25
insurance
company,
insurance
association,
executor,
guardian
or
26
trustee,
and
any
fiduciary
responsible
for
the
investment
of
27
funds
or
having
charge
of
the
loan
retirement
funds
or
sinking
28
funds
of
any
port
authority,
governmental
agency,
or
taxing
29
district
of
this
state,
any
pension
and
annuity
retirement
30
system,
the
Iowa
public
employees’
retirement
system,
the
31
police
officers
and
fire
fighters
retirement
systems
under
32
chapters
410
and
411,
or
a
revolving
fund
of
a
governmental
33
agency
of
this
state,
and
are
acceptable
as
security
for
the
34
deposit
of
public
funds
under
chapter
12C.
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3.
Lease
contracts.
A
port
authority
may
enter
into
lease
1
contracts
for
real
or
personal
property
comprising
a
port
2
authority
facility,
or
parts
thereof,
in
accordance
with
all
of
3
the
following
terms
and
procedures:
4
a.
A
port
authority
shall
lease
property
only
for
a
term
5
which
does
not
exceed
the
economic
life
of
the
property,
as
6
determined
by
the
board.
7
b.
A
lease
contract
entered
into
by
a
port
authority
may
8
contain
provisions
similar
to
those
found
in
lease
contracts
9
between
private
parties,
including
but
not
limited
to
any
of
10
the
following:
11
(1)
The
lease
contract
may
provide
for
the
issuance
of
12
certificates
of
participation
or
other
participatory
interests
13
in
the
lease
contracts
or
any
obligations
thereunder.
14
(2)
The
lease
contract
may
provide
for
the
lessee
to
pay
any
15
of
the
costs
of
operation
or
ownership
of
the
leased
property
16
and
for
the
right
to
purchase
the
leased
property.
17
c.
A
provision
of
a
lease
contract
which
stipulates
that
a
18
portion
of
the
rent
or
lease
payments
be
applied
as
interest
19
is
subject
to
the
provisions
of
chapter
74A
and
such
interest
20
may
be
at
a
variable
rate
or
rates
changing
from
time
to
time
21
in
accordance
with
a
base
or
formula.
Other
laws
relating
to
22
interest
rates
shall
not
apply
and
the
provisions
of
chapter
23
75
are
not
applicable.
24
d.
The
board
may
authorize
a
lease
contract
payable
solely
25
from
the
net
revenues
of
a
port
authority
by
substantially
26
following
the
authorization
procedures
set
forth
in
section
27
28J.21
for
the
issuance
of
port
authority
revenue
bonds.
The
28
resolution
authorizing
the
lease
contract
may
also
prescribe
29
additional
provisions,
terms,
conditions,
and
covenants
which
30
the
port
authority
deems
advisable,
consistent
with
this
31
chapter,
including
provisions
for
creating
and
maintaining
32
reserve
funds
and
the
authorization
of
additional
lease
33
contracts
ranking
on
a
parity
with
such
lease
contracts
and
34
additional
lease
contracts
junior
and
subordinate
to
such
lease
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contracts,
and
that
such
lease
contracts
shall
rank
on
a
parity
1
with
or
be
junior
and
subordinate
to
any
lease
contract
which
2
may
be
then
outstanding.
A
port
authority
lease
contract
shall
3
be
a
contract
between
the
port
authority
and
the
lessor
and
the
4
resolution
shall
be
part
of
the
contract.
5
e.
A
lease
contract
to
which
a
port
authority
is
a
party
6
is
an
obligation
of
the
political
subdivisions
comprising
the
7
port
authority
for
the
purposes
of
chapters
502
and
636,
and
8
is
a
lawful
investment
for
any
bank,
trust
company,
savings
9
association,
deposit
guaranty
association,
investment
company,
10
insurance
company,
insurance
association,
executor,
guardian
or
11
trustee,
and
any
fiduciary
responsible
for
the
investment
of
12
funds
or
having
charge
of
the
lease
retirement
funds
or
sinking
13
funds
of
any
port
authority,
governmental
agency
or
taxing
14
district
of
this
state,
any
pension
and
annuity
retirement
15
system,
the
Iowa
public
employees’
retirement
system,
the
16
police
officers
and
fire
fighters
retirement
systems
under
17
chapters
410
and
411,
or
a
revolving
fund
of
a
governmental
18
agency
of
this
state,
and
are
acceptable
as
security
for
the
19
deposit
of
public
funds
under
chapter
12C.
20
f.
A
contract
for
construction
by
a
private
party
of
21
property
to
be
leased
by
a
port
authority
is
not
a
contract
for
22
a
public
improvement
and
shall
not
be
subject
to
the
provisions
23
of
chapter
26
and
section
28J.3,
subsection
3.
This
paragraph
24
applies
to
all
contracts
that
are
subject
to
this
subsection,
25
notwithstanding
section
28J.9,
subsection
18,
or
any
other
26
provision
of
law
that
might
otherwise
apply,
including
a
27
requirement
of
notice,
competitive
bidding
or
selection,
or
28
for
the
provision
of
security.
However,
if
a
contract
is
29
funded
in
advance
by
means
of
the
lessor
depositing
moneys
to
30
be
administered
by
a
port
authority
with
the
port
authority’s
31
obligation
to
make
rent
or
lease
payments
commencing
with
32
its
receipt
of
moneys,
a
contract
for
construction
of
the
33
property
in
question
awarded
by
the
port
authority
is
a
public
34
improvement
and
is
subject
to
the
provisions
of
chapter
26.
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4.
Trust
agreements.
1
a.
In
the
discretion
of
the
port
authority,
a
loan
agreement
2
or
a
lease
contract
authorized
under
this
section
and
the
port
3
authority’s
obligations
thereunder
may
be
secured
by
a
trust
4
agreement
between
the
port
authority
and
a
corporate
trustee
5
that
may
be
any
trust
company
or
bank
having
the
powers
of
a
6
trust
company
within
this
or
any
other
state.
Subject
to
the
7
other
provisions
of
this
paragraph,
the
corporate
trustee
may
8
also
be
the
lender
under
a
loan
agreement
or
the
lessor
under
a
9
lease
contract
authorized
under
this
section.
10
b.
The
trust
agreement
may
provide
for
the
issuance
of
11
notes
to
evidence
the
port
authority’s
obligations
under
a
loan
12
agreement
to
which
the
port
authority
is
a
party.
The
trust
13
agreement
may
also
provide
for
the
issuance
of
certificates
14
of
participation
or
other
participatory
interests
in
a
lease
15
contract
to
which
a
port
authority
is
a
party.
The
trust
16
agreement,
or
any
resolution
authorizing
the
loan
agreement
or
17
the
lease
contract,
may
pledge
or
assign
revenues
of
the
port
18
authority
to
be
received
as
payment
of
obligations
under
the
19
loan
agreement
or
the
lease
contract
and
may
contain
provisions
20
for
protecting
and
enforcing
the
rights
and
remedies
of
the
21
lender,
the
lessor,
or
the
holders
of
notes
evidencing
the
22
port
authority’s
obligations
under
the
loan
agreement.
These
23
provisions
may
include
covenants
setting
forth
the
duties
of
24
the
port
authority
in
relation
to
the
acquisition
of
property,
25
the
construction,
improvement,
maintenance,
repair,
operation,
26
and
insurance
of
the
port
authority
facility
in
connection
27
with
which
the
loan
agreement
or
the
lease
contract
is
28
authorized,
the
rentals
or
other
charges
to
be
imposed
for
the
29
use
or
services
of
any
port
authority
facility,
the
custody,
30
safeguarding,
and
application
of
all
moneys,
and
provisions
for
31
the
employment
of
consulting
engineers
in
connection
with
the
32
construction
or
operation
of
any
port
authority
facility.
33
c.
A
bank
or
trust
company
incorporated
under
the
laws
34
of
this
state
that
acts
as
the
depository
of
the
proceeds
or
35
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_____
borrowings
provided
under
the
loan
agreement
or
lease
contract
1
or
of
revenues,
shall
furnish
any
indemnifying
bonds
and
may
2
pledge
any
securities
that
are
required
by
the
port
authority.
3
The
trust
agreement
may
set
forth
the
rights
and
remedies
of
4
the
lender,
the
lessor,
or
the
holders
of
notes
evidencing
the
5
port
authority’s
obligations
under
the
loan
agreement
and
may
6
restrict
the
individual
right
of
action
by
the
lender,
the
7
lessor,
or
the
holders
of
notes
evidencing
the
port
authority’s
8
obligations
under
the
loan
agreement
as
is
customary
in
trust
9
agreements
or
trust
indentures
securing
similar
loan
agreements
10
or
lease
contracts.
The
trust
agreement
may
contain
any
other
11
provisions
that
the
port
authority
determines
reasonable
and
12
proper
for
the
security
of
the
lender,
the
lessor,
or
the
13
holders
of
notes
evidencing
the
port
authority’s
obligations
14
under
the
loan
agreement.
All
expenses
incurred
in
carrying
15
out
the
provisions
of
the
trust
agreement
may
be
treated
as
16
a
part
of
the
cost
of
the
operation
of
the
port
authority
17
facility.
18
5.
Exclusions.
Port
authority
loan
agreements
and
lease
19
contracts
authorized
under
this
chapter
shall
not
constitute
20
a
debt,
indebtedness,
or
a
pledge
of
the
faith
and
credit
of
21
the
port
authority
or
the
state
or
any
political
subdivision
22
of
the
state,
within
the
meaning
of
any
state
constitutional
23
provision
or
statutory
limitation,
nor
constitute
or
give
rise
24
to
a
pecuniary
liability
of
the
port
authority,
any
political
25
subdivisions
comprising
the
port
authority,
the
state,
or
26
any
political
subdivision
of
the
state,
or
a
charge
against
27
the
general
credit
or
taxing
power
of
the
port
authority.
28
Any
political
subdivisions
comprising
the
port
authority,
29
the
state,
or
any
political
subdivision
of
the
state,
and
30
the
holders
or
owners
of
the
obligations
owed
under
a
loan
31
agreement
or
lease
contract
shall
not
have
taxes
levied
by
the
32
state
or
by
a
taxing
authority
of
a
governmental
agency
of
the
33
state
for
the
payment
of
the
principal
of
or
interest
owed
on
34
such
obligations.
However,
a
loan
agreement
or
lease
contract
35
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_____
and
the
obligation
owed
thereunder
are
payable
solely
from
the
1
revenues
and
funds
pledged
for
their
payment
as
authorized
2
by
this
chapter.
All
loan
agreements
and
lease
contracts
3
authorized
under
this
chapter
and
the
evidence
of
obligations
4
owed
under
such
loan
agreements
or
lease
contracts
such
shall
5
contain
a
statement
to
the
effect
that
the
loan
agreement
or
6
lease
contract
authorized
under
this
chapter
and
the
evidence
7
of
obligations
owed
under
the
loan
agreement
or
lease
contract,
8
as
to
both
principal
and
interest,
are
not
debts
of
the
port
9
authority
or
the
state
or
any
political
subdivision
of
the
10
state,
but
are
payable
solely
from
revenues
and
funds
pledged
11
for
their
payment.
12
6.
Judicial
proceedings.
13
a.
The
sole
remedy
for
a
breach
or
default
of
a
term
of
14
any
port
authority
loan
agreement
or
lease
contract
authorized
15
under
this
chapter
is
a
proceeding
in
law
or
in
equity
by
16
suit,
action,
or
mandamus
to
enforce
and
compel
performance
of
17
the
duties
required
by
this
chapter
and
of
the
terms
of
the
18
resolution
authorizing
the
loan
agreement
or
lease
contract,
19
or
to
obtain
the
appointment
of
a
receiver
to
take
possession
20
of
and
operate
the
port
authority
and
to
perform
the
duties
21
required
by
this
chapter
and
the
terms
of
the
resolution
22
authorizing
the
loan
agreement
or
lease
contract.
23
b.
An
action
shall
not
be
brought
after
fifteen
days
from
24
the
time
the
loan
agreement
or
lease
contract
is
authorized
by
25
the
port
authority
with
regards
to
any
of
the
following:
26
(1)
The
legality
of
the
port
authority
loan
agreement
or
27
lease
contract.
28
(2)
The
power
of
a
port
authority
to
authorize
the
port
29
authority
loan
agreement
or
lease
contract.
30
(3)
The
effectiveness
of
any
proceedings
relating
to
the
31
authorization
of
the
port
authority
loan
agreement
or
lease
32
contract.
33
Sec.
22.
Section
28J.25,
Code
2022,
is
amended
to
read
as
34
follows:
35
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_____
28J.25
Funds
and
property
held
in
trust
——
use
and
deposit
of
1
funds.
2
All
revenues,
funds,
properties,
and
assets
acquired
by
the
3
port
authority
under
this
chapter
,
whether
as
proceeds
from
the
4
sale
of
port
authority
revenue
bonds,
pledge
orders,
borrowings
5
under
a
loan
agreement,
entering
into
a
lease
contract,
6
proceeds
from
the
issuance
of
certificates
of
participation
7
or
any
other
participatory
interests
in
such
loan
agreement
8
or
lease
contract
or
as
revenues,
shall
be
held
in
trust
for
9
the
purposes
of
carrying
out
the
port
authority’s
powers
and
10
duties,
shall
be
used
and
reused
as
provided
in
this
chapter
,
11
and
shall
at
no
time
be
part
of
other
public
funds.
Such
funds,
12
except
as
otherwise
provided
in
a
resolution
authorizing
port
13
authority
revenue
bonds
or
pledge
orders,
the
loan
agreement
or
14
lease
contract,
or
in
a
trust
agreement
securing
the
same,
or
15
except
when
invested
pursuant
to
section
28J.26
,
shall
be
kept
16
in
depositories
selected
by
the
port
authority
in
the
manner
17
provided
in
chapter
12C
,
and
the
deposits
shall
be
secured
18
as
provided
in
that
chapter.
The
resolution
authorizing
the
19
issuance
of
revenue
bonds
or
pledge
orders,
the
loan
agreement
20
or
lease
contract,
or
the
trust
agreement
securing
such
bonds
21
or
pledge
orders,
shall
provide
that
any
officer
to
whom,
or
22
any
bank
or
trust
company
to
which,
such
moneys
are
paid
shall
23
act
as
trustee
of
such
moneys
and
hold
and
apply
them
for
the
24
purposes
hereof,
subject
to
such
conditions
as
this
chapter
and
25
such
resolution
or
trust
agreement
provide.
26
Sec.
23.
Section
28J.26,
subsection
1,
Code
2022,
is
amended
27
to
read
as
follows:
28
1.
If
a
port
authority
has
surplus
funds
after
making
all
29
deposits
into
all
funds
required
by
the
terms,
covenants,
30
conditions,
and
provisions
of
outstanding
revenue
bonds,
pledge
31
orders,
loan
agreements,
or
lease
contracts
and
refunding
bonds
32
which
are
payable
from
the
revenues
of
the
port
authority
33
and
after
complying
with
all
of
the
requirements,
terms,
34
covenants,
conditions,
and
provisions
of
the
proceedings
and
35
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_____
resolutions
pursuant
to
which
revenue
bonds,
pledge
orders,
1
and
refunding
bonds
are
issued
or
the
loan
agreement
or
lease
2
contract
is
authorized
,
the
board
may
transfer
the
surplus
3
funds
to
any
other
fund
of
the
port
authority
in
accordance
4
with
this
chapter
and
chapter
12C
,
provided
that
a
transfer
5
shall
not
be
made
if
it
conflicts
with
any
of
the
requirements,
6
terms,
covenants,
conditions,
or
provisions
of
a
resolution
7
authorizing
the
issuance
of
revenue
bonds,
pledge
orders,
8
or
other
obligations
which
are
or
loan
agreements
or
lease
9
contracts
payable
from
the
revenues
of
the
port
authority
which
10
are
then
outstanding.
11
Sec.
24.
Section
427.1,
subsection
34,
Code
2022,
is
amended
12
to
read
as
follows:
13
34.
Port
authority
property.
The
property
of
a
port
14
authority
created
pursuant
to
section
28J.2
,
when
devoted
to
15
public
use
and
not
held
for
pecuniary
profit
,
or
property
16
purchased
by
a
port
authority
.
17
EXPLANATION
18
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
19
the
explanation’s
substance
by
the
members
of
the
general
assembly.
20
This
bill
relates
to
the
powers
and
duties
of
port
21
authorities.
22
Under
Code
chapter
28J,
the
bill
modifies
the
defined
23
terms
“authorized
purposes”,
“city”,
“cost”,
“facility”
or
24
“port
authority
facility”,
“governmental
agency”,
“political
25
subdivision”,
“political
subdivisions
comprising
the
port
26
authority”,
“port
authority
revenue
bonds”
or
“revenue
bonds”,
27
and
“revenues”.
The
bill
creates
and
defines
the
terms
“net
28
revenues”
and
“public
works
project”.
29
The
bill
allows
for
the
creation
of
a
port
authority
by
one
30
or
more
political
subdivisions,
rather
than
by
two
or
more
31
political
subdivisions.
The
bill
provides
for
the
creation
of
32
a
port
authority
anywhere
in
this
state
regardless
of
proximity
33
to
a
body
of
water.
The
bill
also
provides
that
a
port
34
authority
is
an
entity
separate
from
the
political
subdivisions
35
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_____
comprising
the
port
authority.
The
powers
granted
to
the
1
port
authority
may
be
exercised
whether
or
not
the
political
2
subdivisions
comprising
the
port
authority
may
exercise
those
3
same
powers.
4
The
bill
provides
that
the
political
subdivisions
5
comprising
the
port
authority
may
make
contributions
to
the
6
port
authority,
in
addition
to
appropriating
or
expending
7
public
funds
as
set
forth
in
current
law,
to
finance
or
8
subsidize
the
operation
and
authorized
purposes
of
the
port
9
authority,
and
pay
the
costs
and
expenses
incurred
by
the
10
port
authority
in
carrying
out
any
operations
or
authorized
11
purposes
of
the
port
authority.
Under
the
bill,
political
12
subdivisions
comprising
the
port
authority
are
allowed
to
13
enter
into
agreements
with
each
other
or
the
port
authority
14
providing
for
the
contributions
to
the
port
authority
to
be
15
made
by
each
of
the
political
subdivisions
and
providing
for
16
the
obligations
of
each
of
the
political
subdivisions
to
pay,
17
finance,
or
subsidize
the
costs
and
expenses
incurred
by
the
18
port
authority.
19
The
bill
makes
conforming
changes
to
Code
section
28J.5
20
relating
to
the
membership
of
the
board
of
directors
of
a
port
21
authority
created
by
one
political
subdivision.
The
bill
22
further
provides
that
any
political
subdivisions
comprising
the
23
port
authority
may
appoint
a
successor
for
the
remaining
term
24
of
a
removed
director.
25
The
bill
modifies
the
powers
of
a
port
authority
as
it
26
relates
to
its
property
regardless
of
whatever
the
property
is
27
within
or
outside
the
territory
of
the
political
subdivisions
28
comprising
the
port
authority
if
in
furtherance
of
any
29
authorized
purpose.
The
bill
further
allows
a
port
authority
30
to
enter
into
loan
agreements
and
lease
contracts,
as
provided
31
for
in
the
bill,
and
to
exercise
the
same
powers
granted
to
32
cities
under
Code
chapters
28F
(joint
financing
of
public
works
33
and
facilities)
and
384
(city
finance).
34
The
bill
allows
a
port
authority
to
use
its
revenues
for
35
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_____
principal
on
borrowed
money
and
payments
under
lease
contracts.
1
The
bill
further
provides
that
a
contract
regarding
rentals
or
2
charges
for
use
of
services
of
a
port
authority
may
provide
3
for
acquisition
of
the
port
authority
facility
subject
to
the
4
provisions
of
any
resolution
authorizing
the
issuance
of
port
5
authority
revenue
bonds,
loan
agreements,
lease
contracts,
or
6
any
trust
agreement
securing
such
bonds,
loan
agreements,
or
7
lease
contracts.
8
The
bill
allows
a
governmental
agency
to
cooperate
with
the
9
port
authority
in
the
operation
of
a
port
authority
facility.
10
The
bill
provides
that
real
property
that
is
purchased
by
a
11
port
authority
is
not
subject
to
certain
property
taxes.
12
Under
the
provisions
of
the
bill,
a
port
authority
may
enter
13
into
certain
loan
agreements
and
lease
contracts.
A
port
14
authority
may
enter
into
loan
agreements
to
borrow
money
to
15
pay
the
costs
of
any
facility,
or
parts
thereof,
or
to
refund
16
other
obligations
which
are
payable
from
the
net
revenues
of
17
the
port
authority
at
lower,
the
same,
or
higher
rates
of
18
interests.
A
port
authority
may
enter
into
lease
contracts
19
for
real
or
personal
property
comprising
a
port
authority
20
facility,
but
can
only
lease
property
for
a
term
that
does
not
21
exceed
the
economic
life
of
the
property.
The
bill
details
22
certain
provisions
similar
to
those
in
loan
agreements
and
23
lease
contracts
between
private
parties
that
a
loan
agreement
24
or
lease
contract
entered
into
by
a
port
authority
may
contain.
25
The
bill
provides
certain
conditions
for
when
a
loan
agreement
26
or
lease
contract
stipulates
that
a
portion
of
the
payments
27
be
applied
as
interest.
The
board
of
a
port
authority
can
28
authorize
a
loan
agreement
or
lease
contract,
along
with
29
prescribing
additional
terms
and
provisions,
by
resolution
and
30
such
resolution
becomes
part
of
the
loan
agreement
or
lease
31
contract.
A
loan
agreement
or
lease
contract
in
which
a
port
32
authority
is
a
party
is
an
obligation
of
political
subdivisions
33
comprising
the
port
authority.
A
contract
for
construction
by
34
a
private
party
of
property
to
be
leased
by
a
port
authority
35
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22
S.F.
_____
is
not
a
contract
for
public
improvement,
except
under
certain
1
conditions.
2
The
bill
authorizes
loan
agreements
or
lease
contracts
to
be
3
secured
by
a
trust
agreement
between
the
port
authority
and
a
4
corporate
trustee,
and
further
provides
how
the
trust
agreement
5
functions.
6
The
bill
provides
that
loan
agreements
and
lease
contracts
7
authorized
by
the
bill
do
not
constitute
a
debt,
indebtedness,
8
or
a
pledge
of
faith
and
credit
of
the
port
authority
or
of
9
the
state
or
any
political
subdivisions
of
the
state
nor
do
10
any
such
agreements
give
rise
to
pecuniary
liability
as
to
11
these
entities
or
act
as
a
charge
against
the
general
credit
12
or
taxing
power
of
the
port
authority.
The
bill
provides
that
13
any
political
subdivisions
comprising
the
port
authority,
the
14
state,
or
any
political
subdivisions
of
the
state,
and
the
15
holders
or
owners
of
obligations
owed
under
a
loan
agreement
16
or
lease
contract
cannot
have
taxes
levied
by
the
state
or
17
by
a
taxing
authority
of
a
governmental
agency
of
the
state
18
for
the
payment
of
the
principal
of
or
interest
owed
on
such
19
obligations.
20
Under
the
bill,
the
sole
remedy
for
a
breach
or
default
of
21
any
port
authority
loan
agreement
or
lease
contract
authorized
22
by
the
bill
is
a
proceeding
in
law
or
in
equity
to
enforce
and
23
compel
performance
of
required
duties
and
the
terms
of
the
24
resolution
authorizing
the
loan
agreement
or
lease
contract,
25
or
to
obtain
the
appointment
of
a
receiver
to
take
possession
26
and
operate
the
port
authority
to
perform
the
required
duties
27
and
terms.
An
action
cannot
be
brought
after
15
days
from
the
28
time
the
loan
agreement
or
lease
contract
is
authorized
by
the
29
port
authority
if
the
action
regards
the
legality
of
the
loan
30
agreement
or
lease
contract,
the
power
of
the
port
authority
31
to
authorize
the
loan
agreement
or
lease
contract,
or
the
32
effectiveness
of
any
proceeding
relating
to
the
authorization
33
of
the
loan
agreement
or
lease
contract.
34
The
bill
makes
conforming
changes
to
Code
sections
28J.8,
35
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21/
22
