House File 425 - Introduced

                                       HOUSE FILE       
                                       BY  WISE, BUKTA, COHOON,
                                           GREINER, MILLER, REICHERT,
                                           SHOMSHOR, and STRUYK

    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         

                                      A BILL FOR

  1 An Act relating to the port authorities including providing for
  2    the establishment, control, and dissolution of port
  3    authorities and providing for certain powers, limitations, and
  4    requirements including issuing revenue bonds and pledge
  5    orders, charging fees, entering into contracts and agreements,
  6    employing persons and peace officers, and providing for the
  7    use of revenues and exemption from property taxes.
  9 TLSB 2070HH 81
 10 kk/cf/24


  1  1    Section 1.  NEW SECTION.  28J.1  DEFINITIONS.
  1  2    As used in this chapter, unless the context otherwise
  1  3 requires:
  1  4    1.  "Authorized purposes" means an activity that enhances,
  1  5 fosters, aids, provides, or promotes transportation, economic
  1  6 development, housing, recreation, education, governmental
  1  7 operations, culture, or research within the jurisdiction of a
  1  8 port authority.
  1  9    2.  "Board" means the board of directors of a port
  1 10 authority established pursuant to section 28J.2.
  1 11    3.  "City" means the same as defined in section 362.2.
  1 12    4.  "Construction" means alteration, creation, development,
  1 13 enlargement, erection, improvement, installation,
  1 14 reconstruction, remodeling, and renovation.
  1 15    5.  "Contracting governmental agency" means any
  1 16 governmental agency or taxing district of the state that, by
  1 17 action of its legislative authority, enters into an agreement
  1 18 with a port authority pursuant to section 28J.17.
  1 19    6.  "Cost" as applied to a port authority facility means
  1 20 any of the following:
  1 21    a.  The cost of construction contracts, land, rights=of=
  1 22 way, property rights, easements, franchise rights, and
  1 23 interests required for acquisition or construction.
  1 24    b.  The cost of demolishing or removing any buildings or
  1 25 structures on land, including the cost of acquiring any lands
  1 26 to which those buildings or structures may be moved.
  1 27    c.  The cost of diverting a highway, interchange of a
  1 28 highway, and access roads to private property, including the
  1 29 cost of land or easements, and relocation of a facility of a
  1 30 utility company or common carrier.
  1 31    d.  The cost of machinery, furnishings, equipment,
  1 32 financing charges, interest prior to and during construction
  1 33 and for no more than twelve months after completion of
  1 34 construction, engineering, and expenses of research and
  1 35 development with respect to a facility.
  2  1    e.  Legal and administrative expenses, plans,
  2  2 specifications, surveys, studies, estimates of cost and
  2  3 revenues, engineering services, and other expenses necessary
  2  4 or incident to determining the feasibility or practicability
  2  5 of acquiring or constructing a facility.
  2  6    f.  The interest upon the revenue bonds and pledge orders
  2  7 during the period or estimated period of construction and for
  2  8 twelve months thereafter, or for twelve months after the
  2  9 acquisition date, reserve funds as the port authority deems
  2 10 advisable in connection with a facility and the issuance of
  2 11 port authority revenue bonds and pledge orders.
  2 12    7.  "Facility" or "port authority facility" means real or
  2 13 personal property owned, leased, or otherwise controlled or
  2 14 financed by a port authority and related to or in furtherance
  2 15 of one or more authorized purposes.
  2 16    8.  "Governmental agency" means a department, division, or
  2 17 other unit of state government of this state or any other
  2 18 state, city, county, township, or other governmental
  2 19 subdivision, or any other public corporation or agency created
  2 20 under the laws of this state, any other state, the United
  2 21 States, or any department or agency thereof, or any agency,
  2 22 commission, or authority established pursuant to an interstate
  2 23 compact or agreement or combination thereof.
  2 24    9.  "Person" means the same as defined in section 4.1.
  2 25    10.  "Pledge order" means a promise to pay out of the net
  2 26 revenues of a port authority, which is delivered to a
  2 27 contractor or other person in payment of all or part of the
  2 28 cost of a facility.
  2 29    11.  "Political subdivision" means a city, county, city=
  2 30 county consolidation, or multicounty consolidation, or
  2 31 combination thereof.
  2 32    12.  "Political subdivisions comprising the port authority"
  2 33 means the political subdivisions which created or participated
  2 34 in the creation of the port authority under section 28J.2, or
  2 35 which joined an existing port authority under section 28J.4.
  3  1    13.  "Port authority" means an entity created pursuant to
  3  2 section 28J.2.
  3  3    14.  "Port authority revenue bonds" means revenue bonds and
  3  4 revenue refunding bonds issued pursuant to section 28J.21.
  3  5    15.  "Public roads" means all public highways, roads, and
  3  6 streets in this state, whether maintained by the state or by a
  3  7 county or city.
  3  8    16.  "Revenues" means rental fees and other charges
  3  9 received by a port authority for the use or services of a
  3 10 facility, a gift or grant received with respect to a facility,
  3 11 moneys received with respect to the lease, sublease, sale,
  3 12 including installment sale or conditional sale, or other
  3 13 disposition of a facility, moneys received in repayment of and
  3 14 for interest on any loans made by the port authority to a
  3 15 person or governmental agency, proceeds of port authority
  3 16 revenue bonds for payment of principal, premium, or interest
  3 17 on the bonds authorized by the port authority, proceeds from
  3 18 any insurance, condemnation, or guarantee pertaining to the
  3 19 financing of the facility, and income and profit from the
  3 20 investment of the proceeds of port authority revenue bonds or
  3 21 of any revenues.
  3 24    1.  Two or more political subdivisions may create a port
  3 25 authority under this chapter by resolution.  If a proposal to
  3 26 create a port authority receives a favorable majority of the
  3 27 members of the elected legislative body of the political
  3 28 subdivision, the port authority is created at the time
  3 29 provided in the resolution.
  3 30    2.  A port authority created pursuant to this section may
  3 31 sue and be sued, complain, and defend in its name and has the
  3 32 powers and jurisdiction enumerated in this chapter.
  3 33    3.  At the time a port authority is created pursuant to
  3 34 this section, the political subdivisions comprising the port
  3 35 authority may restrict the powers granted the port authority
  4  1 pursuant to this chapter by specifically adopting such
  4  2 restrictions in the resolution creating the port authority.
  4  3    4.  The political subdivisions comprising the port
  4  4 authority whose powers have been restricted pursuant to
  4  5 subsection 3 may at any time adopt a resolution to grant
  4  6 additional powers to the port authority, so long as the
  4  7 additional powers do not exceed the powers permitted under
  4  8 this chapter.
  4 11    1.  The political subdivisions comprising a port authority
  4 12 may appropriate and expend public funds to finance or
  4 13 subsidize the operation and authorized purposes of the port
  4 14 authority.  A port authority shall control tax revenues
  4 15 allocated to the facilities the port authority administers and
  4 16 all revenues derived from the operation of the port authority,
  4 17 the sale of its property, interest on investments, or from any
  4 18 other source related to the port authority.
  4 19    2.  All revenues received by the port authority shall be
  4 20 held in a separate fund in a manner agreed to by the political
  4 21 subdivisions comprising the port authority.  Revenues may be
  4 22 paid out only at the direction of the board of directors of
  4 23 the port authority.
  4 24    3.  A port authority shall comply with section 331.341,
  4 25 subsections 1, 2, 4, and 5, and section 331.342, when
  4 26 contracting for public improvements.
  4 27    4.  Subject to making due provisions for payment and
  4 28 performance of any outstanding obligations, the political
  4 29 subdivisions comprising the port authority may dissolve the
  4 30 port authority, and transfer the property of the port
  4 31 authority to the political subdivisions comprising the port
  4 32 authority in a manner agreed upon between the political
  4 33 subdivisions comprising the port authority prior to the
  4 34 dissolution of the port authority.
  5  2    1.  A political subdivision which is contiguous to either a
  5  3 political subdivision which participated in the creation of
  5  4 the port authority or a political subdivision which proposes
  5  5 to join the port authority at the same time which is
  5  6 contiguous to a political subdivision which participated in
  5  7 the creation of the port authority may join the port authority
  5  8 by resolution.
  5  9    2.  If more than one such political subdivision proposes to
  5 10 join the port authority at the same time, the resolution of
  5 11 each such political subdivision shall designate the political
  5 12 subdivisions which are to be so joined.
  5 13    3.  Any territory or city not included in a port authority
  5 14 which is annexed to a city included within the jurisdiction
  5 15 and territory of a port authority shall, on such annexation
  5 16 and without further proceedings, be annexed to and be included
  5 17 in the jurisdiction and territory of the port authority.
  5 18    4.  Before a political subdivision is joined to a port
  5 19 authority, other than by annexation to a city, the political
  5 20 subdivisions comprising the port authority shall agree upon
  5 21 the terms and conditions pursuant to which such political
  5 22 subdivision is to be joined.
  5 23    5.  For the purpose of this chapter, such political
  5 24 subdivision shall be considered to have participated in the
  5 25 creation of the port authority, except that the initial term
  5 26 of any director of the port authority appointed by a joining
  5 27 political subdivision shall be four years.
  5 28    6.  After each resolution proposing a political subdivision
  5 29 to join a port authority has become effective and the terms
  5 30 and conditions of joining the port authority have been agreed
  5 31 to, the board of directors of the port authority shall by
  5 32 resolution either accept or reject the proposal.  Such
  5 33 proposal to join a port authority shall be effective upon
  5 34 adoption of the resolution by the board of directors of the
  5 35 port authority and thereupon the jurisdiction and territory of
  6  1 the port authority includes the joining political subdivision.
  6  2    Sec. 5.  NEW SECTION.  28J.5  MEMBERSHIP OF BOARD OF
  6  4    1.  A port authority created pursuant to section 28J.2
  6  5 shall be governed by a board of directors.  Members of a board
  6  6 of directors of a port authority shall be divided among the
  6  7 political subdivisions comprising the port authority in such
  6  8 proportions as the political subdivisions may agree and shall
  6  9 be appointed by the respective political subdivision's elected
  6 10 legislative body.
  6 11    2.  The number of directors comprising the board shall be
  6 12 determined by agreement between the political subdivisions
  6 13 comprising the port authority, and which number may be changed
  6 14 by resolution of the political subdivisions comprising the
  6 15 port authority.
  6 16    3.  A majority of the directors shall have been qualified
  6 17 electors of, or owned a business or been employed in, one or
  6 18 more political subdivisions within the area of the
  6 19 jurisdiction of the port authority for a period of at least
  6 20 three years preceding appointment.
  6 21    4.  The directors of a port authority first appointed shall
  6 22 serve staggered terms.  Thereafter each successor director
  6 23 shall serve for a term of four years, except that any person
  6 24 appointed to fill a vacancy shall be appointed to only the
  6 25 unexpired term.  A director is eligible for reappointment.
  6 26    5.  The board may provide procedures for the removal of a
  6 27 director who fails to attend three consecutive regular
  6 28 meetings of the board.  If a director is so removed, a
  6 29 successor shall be appointed for the remaining term of the
  6 30 removed director in the same manner provided for the original
  6 31 appointment.  The appointing body may at any time remove a
  6 32 director appointed by it for misfeasance, nonfeasance, or
  6 33 malfeasance in office.
  6 34    6.  The board may adopt bylaws and shall elect one director
  6 35 as chairperson and one director as vice chairperson, designate
  7  1 terms of office, and appoint a secretary who need not be a
  7  2 director.
  7  3    7.  A majority of the board of directors shall constitute a
  7  4 quorum for the purpose of holding a meeting of the board.  The
  7  5 affirmative vote of a majority of a quorum shall be necessary
  7  6 for any action taken by the port authority unless the board
  7  7 determines that a greater number of affirmative votes is
  7  8 necessary for particular actions to be taken by the port
  7  9 authority.  A vacancy in the membership of the board shall not
  7 10 impair the rights of a quorum to exercise all the rights and
  7 11 perform all the duties of the port authority.
  7 12    8.  Each director shall be entitled to receive from the
  7 13 port authority such sum of money as the board may determine as
  7 14 compensation for services as a director and reimbursement for
  7 15 reasonable expenses in the performance of official duties.
  7 17    A director of a port authority shall not be personally
  7 18 liable for any monetary damages that arise from actions taken
  7 19 in the performance of the director's official duties, except
  7 20 for acts or omissions that are not in good faith or that
  7 21 involve intentional misconduct, a knowing violation of law, or
  7 22 any transaction from which the director derived an improper
  7 23 personal benefit.
  7 26    1.  A port authority shall employ and fix the
  7 27 qualifications, duties, and compensation of any employees and
  7 28 enter into contracts for any services that may be required to
  7 29 conduct the business of the port authority, and may appoint an
  7 30 advisory board, which shall serve without compensation.
  7 31    2.  An employee of a port authority is a public employee
  7 32 for the purposes of collective bargaining under chapter 20.
  7 33    3.  a.  A port authority may provide for the administration
  7 34 and enforcement of the laws of the state by employing special
  7 35 peace officers who shall have all the powers conferred by law
  8  1 on peace officers of this state with regard to the
  8  2 apprehension of violators upon all property under its control
  8  3 within and without the port authority.  The peace officers may
  8  4 seek the assistance of other appropriate law enforcement
  8  5 officers to enforce its rules and maintain order.
  8  6    b.  Special peace officers employed by a port authority
  8  7 shall pass a regular mental and physical civil service
  8  8 examination for police officers appointed under the civil
  8  9 service law of chapter 400 and shall participate in the
  8 10 retirement system established by chapter 411.
  8 11    c.  Special peace officers employed by a port authority
  8 12 shall serve as a peace officer force with respect to the
  8 13 property, grounds, buildings, equipment, and facilities under
  8 14 the control of the port authority, to prevent hijacking of
  8 15 aircraft or watercraft, protect the property of the authority
  8 16 and the property of others located thereon, suppress nuisances
  8 17 and disturbances and breaches of the peace, and enforce laws
  8 18 and the rules of the port authority for the preservation of
  8 19 good order.  Special peace officers are vested with the same
  8 20 powers of arrest as peace officers under section 804.7.
  8 21    4.  If an employee of a political subdivision comprising
  8 22 the port authority is transferred to a comparable position
  8 23 with the port authority, the employee is entitled to suffer no
  8 24 loss in pay, pension, fringe benefits, or other benefits and
  8 25 shall be entitled to a comparable rank and grade as the
  8 26 employee's prior position.  Sick leave, longevity, and
  8 27 vacation time accrued to such employees shall be credited to
  8 28 them as employees of the port authority.  All rights and
  8 29 accruals of such employees as members of the Iowa public
  8 30 employees' retirement system pursuant to chapter 97B and the
  8 31 retirement system for police officers pursuant to chapter 411
  8 32 shall remain in force and shall be automatically transferred
  8 33 to the port authority.
  8 34    Sec. 8.  NEW SECTION.  28J.8  AREA OF JURISDICTION.
  8 35    1.  The area of jurisdiction of a port authority shall
  9  1 include all of the territory of the political subdivisions
  9  2 comprising the port authority and, if the port authority owns
  9  3 or leases a railroad line or airport, the territory on which
  9  4 the railroad's line, terminals, and related facilities or the
  9  5 airport's runways, terminals, and related facilities are
  9  6 located, regardless of whether the territory is located in the
  9  7 political subdivisions comprising the port authority.
  9  8    2.  A political subdivision that has created a port
  9  9 authority or joined an existing port authority shall not be
  9 10 included in any other port authority.
  9 12    A port authority may exercise all of the following powers:
  9 13    1.  Adopt bylaws for the regulation of the port authority's
  9 14 affairs and the conduct of the port authority's business.
  9 15    2.  Adopt an official seal.
  9 16    3.  Maintain a principal office and branch offices within
  9 17 the port authority's jurisdiction.
  9 18    4.  Acquire, construct, furnish, equip, maintain, repair,
  9 19 sell, exchange, lease, lease with an option to purchase,
  9 20 convey interests in real or personal property, and operate any
  9 21 property of the port authority in connection with
  9 22 transportation, recreational, governmental operations, or
  9 23 cultural activities in furtherance of an authorized purpose.
  9 24    5.  Straighten, deepen, and improve any channel, river,
  9 25 stream, or other watercourse or way which may be necessary or
  9 26 proper in the development of the facilities of the port
  9 27 authority.
  9 28    6.  Make available the use or services of any facility of
  9 29 the port authority to any person or governmental agency.
  9 30    7.  Issue bonds or pledge orders pursuant to the
  9 31 requirements and limitations in section 28J.21.  The net
  9 32 indebtedness incurred by a port authority shall not exceed two
  9 33 percent of the total value of all property within the
  9 34 territory comprising the port authority as listed and assessed
  9 35 for taxation.
 10  1    8.  Issue port authority revenue bonds beyond the limit of
 10  2 bonded indebtedness provided by law, payable solely from
 10  3 revenues as provided in section 28J.21, for the purpose of
 10  4 providing funds to pay the costs of any facility or facilities
 10  5 of the port authority or parts thereof.
 10  6    9.  Apply to the proper authorities of the United States
 10  7 for the right to establish, operate, and maintain foreign
 10  8 trade zones and establish, operate, and maintain foreign trade
 10  9 zones and to acquire, exchange, sell, lease to or from, lease
 10 10 with an option to purchase, or operate facilities, land, or
 10 11 property in accordance with the federal Foreign Trade Zones
 10 12 Act, 19 U.S.C. } 81a=81u.
 10 13    10.  Enjoy and possess the same legislative and executive
 10 14 rights, privileges, and powers granted cities under chapter
 10 15 364 and counties under chapter 331, except the power to levy
 10 16 taxes.
 10 17    11.  Maintain such funds as it considers necessary and
 10 18 adhere to the public funds investment standards of chapter
 10 19 12B, as applicable.
 10 20    12.  Direct port authority agents or employees, after at
 10 21 least five days' written notice, to enter upon lands within
 10 22 the port authority's jurisdiction to make surveys and
 10 23 examinations preliminary to location and construction of works
 10 24 for the port authority, without liability of the port
 10 25 authority or its agents or employees except for actual
 10 26 damages.
 10 27    13.  Promote, advertise, and publicize the port authority
 10 28 and its facilities, and provide information to shippers and
 10 29 other commercial interests.
 10 30    14.  Adopt bylaws, not in conflict with state or federal
 10 31 law, necessary or incidental to the performance of the duties
 10 32 of and the execution of the powers of the port authority under
 10 33 this chapter.
 10 34    15.  Do any of the following in regard to interests in real
 10 35 or personal property, including machinery, equipment, plants,
 11  1 factories, offices, and other structures and facilities
 11  2 related to or in furtherance of any authorized purpose as the
 11  3 board in its sole discretion may determine:
 11  4    a.  Loan money to any person or governmental agency for the
 11  5 acquisition, construction, furnishing, or equipping of the
 11  6 property.
 11  7    b.  Acquire, construct, maintain, repair, furnish, or equip
 11  8 the property.
 11  9    c.  Sell to, exchange with, lease, convey other interests
 11 10 in, or lease with an option to purchase the same or any lesser
 11 11 interest in the property to the same or any other person or
 11 12 governmental agency.
 11 13    d.  Guarantee the obligations of any person or governmental
 11 14 agency.
 11 15    e.  Accept and hold as consideration for the conveyance of
 11 16 property or any interest therein such property or interests
 11 17 therein as the board may determine, notwithstanding any
 11 18 restrictions that apply to the investment of funds by a port
 11 19 authority.
 11 20    16.  Sell, lease, or convey other interests in real and
 11 21 personal property, and grant easements or rights=of=way over
 11 22 property of the port authority.  The board shall specify the
 11 23 consideration and terms for the sale, lease, or conveyance of
 11 24 other interests in real and personal property.  A
 11 25 determination made by the board under this subsection shall be
 11 26 conclusive.  The sale, lease, or conveyance may be made
 11 27 without advertising and the receipt of bids.
 11 28    17.  Exercise the right of eminent domain to appropriate
 11 29 land, rights, rights=of=way, franchises, easements, or other
 11 30 property, necessary or proper for any authorized purpose,
 11 31 pursuant to the procedure provided in chapter 6A as if the
 11 32 port authority were a city or county, if funds equal to the
 11 33 appraised value of the property to be acquired as a result of
 11 34 such proceedings are available for that purpose.  However,
 11 35 this chapter does not authorize a port authority to take or
 12  1 disturb property or a facility belonging to a governmental
 12  2 agency, utility company, or common carrier, which property or
 12  3 facility is necessary and convenient in the operation of the
 12  4 governmental agency, utility company, or common carrier,
 12  5 unless provision is made for the restoration, relocation, or
 12  6 duplication of such property or facility, or upon the election
 12  7 of the governmental agency, utility company, or common
 12  8 carrier, for the payment of compensation, if any, at the sole
 12  9 cost of the port authority, provided that both of the
 12 10 following apply:
 12 11    a.  If a restoration or duplication proposed to be made
 12 12 under this subsection involves a relocation of the property or
 12 13 facility, the new facility and location shall be of at least
 12 14 comparable utilitarian value and effectiveness and shall not
 12 15 impair the ability of the utility company or common carrier to
 12 16 compete in its original area of operation.
 12 17    b.  If a restoration or duplication made under this
 12 18 subsection involves a relocation of the property or facility,
 12 19 the port authority shall acquire no interest or right in or to
 12 20 the appropriated property or facility, until the relocated
 12 21 property or facility is available for use and until marketable
 12 22 title thereto has been transferred to the utility company or
 12 23 common carrier.
 12 24    18.  a.  Make and enter into all contracts and agreements
 12 25 and execute all instruments necessary or incidental to the
 12 26 performance of the duties of and the execution of powers of
 12 27 the port authority under this chapter.
 12 28    b.  Except as provided in paragraph "c", when the cost of a
 12 29 contract for the construction of a building, structure, or
 12 30 other improvement undertaken by a port authority involves an
 12 31 expenditure exceeding twenty=five thousand dollars, and the
 12 32 port authority is the contracting entity, the port authority
 12 33 shall make a written contract after notice calling for bids
 12 34 for the award of the contract has been given by publication
 12 35 twice, with at least seven days between publications, in a
 13  1 newspaper of general circulation in the area of the port
 13  2 authority.  Each such contract shall be let to the lowest
 13  3 responsive and responsible bidder.  Every contract shall be
 13  4 accompanied by or shall refer to plans and specifications for
 13  5 the work to be done, prepared for and approved by the port
 13  6 authority, and signed by an authorized officer of the port
 13  7 authority and by the contractor.
 13  8    c.  The board of directors may provide criteria for the
 13  9 negotiation and award without competitive bidding of any
 13 10 contract as to which the port authority is the contracting
 13 11 entity for the construction of any building or structure or
 13 12 other improvement under any of the following circumstances:
 13 13    (1)  A real and present emergency exists that threatens
 13 14 damage or injury to persons or property of the port authority
 13 15 or other persons, provided that a statement specifying the
 13 16 nature of the emergency that is the basis for the negotiation
 13 17 and award of a contract without competitive bidding shall be
 13 18 signed by the officer of the port authority that executes that
 13 19 contract at the time of the contract's execution and shall be
 13 20 attached to the contract.
 13 21    (2)  A commonly recognized industry or other standard or
 13 22 specification does not exist and cannot objectively be
 13 23 articulated for the improvement.
 13 24    (3)  The contract is for any energy conservation measure as
 13 25 defined in section 7D.34.
 13 26    (4)  With respect to material to be incorporated into the
 13 27 improvement, only a single source or supplier exists for the
 13 28 material.
 13 29    (5)  A single bid is received by the port authority after
 13 30 complying with the provisions of paragraph "b".
 13 31    d.  (1)  If a contract is to be negotiated and awarded
 13 32 without competitive bidding for the reason set forth in
 13 33 paragraph "c", subparagraph (2), the port authority shall
 13 34 publish a notice calling for technical proposals at least
 13 35 twice, with at least seven days between publications, in a
 14  1 newspaper of general circulation in the area of the port
 14  2 authority.  After receipt of the technical proposals, the port
 14  3 authority may negotiate with and award a contract for the
 14  4 improvement to the person making the proposal considered to be
 14  5 the most advantageous to the port authority.
 14  6    (2)  If a contract is to be negotiated and awarded without
 14  7 competitive bidding for the reason set forth in paragraph "c",
 14  8 subparagraph (4), construction activities related to the
 14  9 incorporation of the material into the improvement also may be
 14 10 provided without competitive bidding by the source or supplier
 14 11 of that material.
 14 12    e.  A purchase, exchange, sale, lease, lease with an option
 14 13 to purchase, conveyance of other interests in, or other
 14 14 contract with a person or governmental agency that pertains to
 14 15 the acquisition, construction, maintenance, repair,
 14 16 furnishing, equipping, or operation of any real or personal
 14 17 property, related to or in furtherance of economic development
 14 18 and the provision of adequate housing, shall be made in such
 14 19 manner and subject to such terms and conditions as may be
 14 20 determined in the board's discretion.  This paragraph applies
 14 21 to all contracts that are subject to this section,
 14 22 notwithstanding any other provision of law that might
 14 23 otherwise apply, including a requirement of notice,
 14 24 competitive bidding or selection, or for the provision of
 14 25 security.  However, this paragraph shall not apply to a
 14 26 contract secured exclusively by or to be paid exclusively from
 14 27 the general revenues of the port authority.  For the purposes
 14 28 of this paragraph, any revenues derived by the port authority
 14 29 under a lease or other agreement that, by its terms,
 14 30 contemplates the use of amounts payable under the agreement
 14 31 either to pay the costs of the improvement that is the subject
 14 32 of the contract or to secure obligations of the port authority
 14 33 issued to finance costs of such improvement, are excluded from
 14 34 general revenues.
 14 35    19.  Employ managers, superintendents, and other employees
 15  1 and retain or contract with consulting engineers, financial
 15  2 consultants, accounting experts, architects, attorneys, and
 15  3 any other consultants and independent contractors as are
 15  4 necessary in the port authority's judgment to carry out this
 15  5 chapter, and fix the compensation thereof.  All expenses
 15  6 thereof shall be payable from any available funds of the port
 15  7 authority or from funds appropriated for that purpose by the
 15  8 political subdivisions comprising the port authority.
 15  9    20.  Receive and accept from a governmental agency grants
 15 10 and loans for the construction of a port authority facility,
 15 11 for research and development with respect to a port authority
 15 12 facility, or any other authorized purpose, and receive and
 15 13 accept aid or contributions from any source of moneys,
 15 14 property, labor, or other things of value, to be held, used,
 15 15 and applied only for the purposes for which the grants, loans,
 15 16 aid, or contributions are made.
 15 17    21.  Engage in research and development with respect to a
 15 18 port authority facility.
 15 19    22.  Purchase fire and extended coverage and liability
 15 20 insurance for a port authority facility and for the principal
 15 21 office and branch offices of the port authority, insurance
 15 22 protecting the port authority and its officers and employees
 15 23 against liability for damage to property or injury to or death
 15 24 of persons arising from its operations, and any other
 15 25 insurance the port authority may agree to provide under a
 15 26 resolution authorizing port authority revenue bonds, pledge
 15 27 orders, or in any trust agreement securing the same.
 15 28    23.  Charge, alter, and collect rental fees and other
 15 29 charges for the use or services of a port authority facility
 15 30 as provided in section 28J.16.
 15 31    24.  Perform all acts necessary or proper to carry out the
 15 32 powers expressly granted in this chapter.
 15 35    The port authority shall foster and encourage the
 16  1 participation of private enterprise in the development of the
 16  2 port authority facilities to the fullest extent practicable in
 16  3 the interest of limiting the necessity of construction and
 16  4 operation of the facilities by the port authority.
 16  5    Sec. 11.  NEW SECTION.  28J.11  PROVISIONS DO NOT AFFECT
 16  7    This chapter shall not do any of the following:
 16  8    1.  Impair a provision of law directing the payment of
 16  9 revenues derived from public property into sinking funds or
 16 10 dedicating those revenues to specific purposes.
 16 11    2.  Impair the powers of a political subdivision to develop
 16 12 or improve a port and terminal facility except as restricted
 16 13 by section 28J.15.
 16 14    3.  Enlarge, alter, diminish, or affect in any way, a lease
 16 15 or conveyance made, or action taken prior to the creation of a
 16 16 port authority under section 28J.2 by a city or a county.
 16 17    4.  Impair or interfere with the exercise of a permit for
 16 18 the removal of sand or gravel, or other similar permits issued
 16 19 by a governmental agency.
 16 20    5.  Impair or contravene applicable federal regulations.
 16 21    Sec. 12.  NEW SECTION.  28J.12  CONVEYANCE, LEASE, OR
 16 23    A port authority may convey or lease, lease with an option
 16 24 to purchase, or exchange with any governmental agency or other
 16 25 port authority without competitive bidding and on mutually
 16 26 agreeable terms, any personal or real property, or any
 16 27 interest therein.
 16 28    Sec. 13.  NEW SECTION.  28J.13  ANNUAL BUDGET == USE OF
 16 30    The board shall annually prepare a budget for the port
 16 31 authority.  Revenues received by the port authority shall be
 16 32 used for the general expenses of the port authority and to pay
 16 33 interest, amortization, and retirement charges on money
 16 34 borrowed.  Except as provided in section 28J.26, if there
 16 35 remains, at the end of any fiscal year, a surplus of such
 17  1 funds after providing for the above uses, the board shall pay
 17  2 such surplus into the general funds of the political
 17  3 subdivisions comprising the port authority as agreed to by the
 17  4 subdivisions.
 17  7    Before receiving any revenues, the secretary of a port
 17  8 authority shall furnish a bond in such amount as shall be
 17  9 determined by the port authority with sureties satisfactory to
 17 10 the port authority, and all funds coming into the hands of the
 17 11 secretary shall be deposited by the secretary to the account
 17 12 of the port authority in one or more such depositories as
 17 13 shall be qualified to receive deposits of county funds, which
 17 14 deposits shall be secured in the same manner as county funds
 17 15 are required to be secured.  A disbursement shall not be made
 17 16 from such funds except in accordance with policies and
 17 17 procedures adopted by the port authority.
 17 18    Sec. 15.  NEW SECTION.  28J.15  LIMITATION ON CERTAIN
 17 20    A political subdivision creating or participating in the
 17 21 creation of a port authority in accordance with section 28J.2
 17 22 shall not, during the time the port authority is in existence,
 17 23 exercise the rights and powers provided in chapters 28A, 28K,
 17 24 and 384 relating to the political subdivision's authority over
 17 25 a port, wharf, dock, harbor or other facility substantially
 17 26 similar to that political subdivision's authority under a port
 17 27 authority granted under this chapter.
 17 28    Sec. 16.  NEW SECTION.  28J.16  RENTALS OR CHARGES FOR USE
 17 30 AGENCIES.
 17 31    1.  a.  A port authority may charge, alter, and collect
 17 32 rental fees or other charges for the use or services of any
 17 33 port authority facility and contract for the use or services
 17 34 of a facility, and fix the terms, conditions, rental fees, or
 17 35 other charges for the use or services.
 18  1    b.  If the services are furnished in the jurisdiction of
 18  2 the port authority by a utility company or a common carrier,
 18  3 the port authority's charges for the services shall not be
 18  4 less than the charges established for the same services
 18  5 furnished by a utility company or common carrier in the port
 18  6 authority jurisdiction.
 18  7    c.  The rental fees or other charges shall not be subject
 18  8 to supervision or regulation by any other authority,
 18  9 commission, board, bureau, or governmental agency of the state
 18 10 and the contract may provide for acquisition of all or any
 18 11 part of the port authority facility for such consideration
 18 12 payable over the period of the contract or otherwise as the
 18 13 port authority determines to be appropriate, but subject to
 18 14 the provisions of any resolution authorizing the issuance of
 18 15 port authority revenue bonds or any trust agreement securing
 18 16 the bonds.
 18 17    d.  A governmental agency that has power to construct,
 18 18 operate, and maintain a port authority facility may enter into
 18 19 a contract or lease with a port authority for the use or
 18 20 services of a port authority facility as may be agreed to by
 18 21 the port authority and the governmental agency.
 18 22    2.  a.  A governmental agency may cooperate with the port
 18 23 authority in the acquisition or construction of a port
 18 24 authority facility and shall enter into such agreements with
 18 25 the port authority as may be appropriate, which shall provide
 18 26 for contributions by the parties in a proportion as may be
 18 27 agreed upon and other terms as may be mutually satisfactory to
 18 28 the parties including the authorization of the construction of
 18 29 the facility by one of the parties acting as agent for all of
 18 30 the parties and the ownership and control of the facility by
 18 31 the port authority to the extent necessary or appropriate.
 18 32    b.  A governmental agency may provide funds for the payment
 18 33 of any contribution required under such agreements by the levy
 18 34 of taxes or assessments if otherwise authorized by the laws
 18 35 governing the governmental agency in the construction of the
 19  1 type of port authority facility provided for in the
 19  2 agreements, and may pay the proceeds from the collection of
 19  3 the taxes or assessments; or the governmental agency may issue
 19  4 bonds or notes, if authorized by law, in anticipation of the
 19  5 collection of the taxes or assessments, and may pay the
 19  6 proceeds of the bonds or notes to the port authority pursuant
 19  7 to such agreements.
 19  8    c.  A governmental agency may provide the funds for the
 19  9 payment of a contribution by the appropriation of moneys or,
 19 10 if otherwise authorized by law, by the issuance of bonds or
 19 11 notes and may pay the appropriated moneys or the proceeds of
 19 12 the bonds or notes to the port authority pursuant to such
 19 13 agreements.
 19 14    3.  When the contribution of any governmental agency is to
 19 15 be made over a period of time from the proceeds of the
 19 16 collection of special assessments, the interest accrued and to
 19 17 accrue before the first installment of the assessments is
 19 18 collected, which is payable by the governmental agency on the
 19 19 contribution under the terms and provisions of the agreements,
 19 20 shall be treated as part of the cost of the improvement for
 19 21 which the assessments are levied, and that portion of the
 19 22 assessments that is collected in installments shall bear
 19 23 interest at the same rate as the governmental agency is
 19 24 obligated to pay on the contribution under the terms and
 19 25 provisions of the agreements and for the same period of time
 19 26 as the contribution is to be made under the agreements.  If
 19 27 the assessment or any installment thereof is not paid when
 19 28 due, it shall bear interest until the payment thereof at the
 19 29 same rate as the contribution and the county auditor shall
 19 30 annually place on the tax list and duplicate the interest
 19 31 applicable to the assessment and the penalty thereon as
 19 32 otherwise authorized by law.
 19 33    4.  A governmental agency, pursuant to a favorable vote in
 19 34 an election regarding issuing bonds to provide funds to
 19 35 acquire, construct, or equip, or provide real estate and
 20  1 interests in real estate for a port authority facility,
 20  2 whether or not the governmental agency at the time of the
 20  3 election had the authority to pay the proceeds from the bonds
 20  4 or notes issued in anticipation of the bonds to the port
 20  5 authority as provided in this section, may issue such bonds or
 20  6 notes in anticipation of the issuance of the bonds and pay the
 20  7 proceeds of the bonds or notes to the port authority in
 20  8 accordance with an agreement with the port authority;
 20  9 provided, that the legislative authority of the governmental
 20 10 agency finds and determines that the port authority facility
 20 11 to be acquired or constructed in cooperation with the
 20 12 governmental agency will serve the same public purpose and
 20 13 meet substantially the same public need as the facility
 20 14 otherwise proposed to be acquired or constructed by the
 20 15 governmental agency with the proceeds of the bonds and notes.
 20 16    Sec. 17.  NEW SECTION.  28J.17  CONTRACTS, ARRANGEMENTS,
 20 18    1.  a.  A port authority may enter into a contract or other
 20 19 arrangement with a person, railroad, utility company,
 20 20 corporation, governmental agency including sewerage, drainage,
 20 21 conservation, conservancy, or other improvement districts in
 20 22 this or other states, or the governments or agencies of
 20 23 foreign countries as may be necessary or convenient for the
 20 24 exercise of the powers granted by this chapter.  The port
 20 25 authority may purchase, lease, or acquire land or other
 20 26 property in any county of this state and in adjoining states
 20 27 for the accomplishment of authorized purposes of the port
 20 28 authority, or for the improvement of the harbor and port
 20 29 facilities over which the port authority may have jurisdiction
 20 30 including development of port facilities in adjoining states.
 20 31 The authority granted in this section to enter into contracts
 20 32 or other arrangements with the federal government includes the
 20 33 power to enter into any contracts, arrangements, or agreements
 20 34 that may be necessary to hold and save harmless the United
 20 35 States from damages due to the construction and maintenance by
 21  1 the United States of work the United States undertakes.
 21  2    b.  A political subdivision that has participated in the
 21  3 creation of a port authority, or is within, or adjacent to a
 21  4 political subdivision that is within the jurisdiction of a
 21  5 port authority, may enter into an agreement with the port
 21  6 authority to accomplish any of the authorized purposes of the
 21  7 port authority.  The agreement may set forth the extent to
 21  8 which the port authority shall act as the agent of the
 21  9 political subdivision.
 21 10    2.  A port authority may enter into an agreement with a
 21 11 contracting governmental agency, whereby the port authority or
 21 12 the contracting governmental agency undertakes, and is
 21 13 authorized by the port authority or a contracting governmental
 21 14 agency, to exercise any power, perform any function, or render
 21 15 any service, on behalf of the port authority or a contracting
 21 16 governmental agency, which the port authority or the
 21 17 contracting governmental agency is authorized to exercise,
 21 18 perform, or render.
 21 19    3.  A port authority or any contracting governmental agency
 21 20 shall not acquire by virtue of any agreement entered into
 21 21 under this section the power to levy or exempt from taxes or
 21 22 the power to exercise eminent domain within, and on behalf of,
 21 23 any other governmental agency unless approved by a majority of
 21 24 the electors of that contracting governmental agency.
 21 25    Sec. 18.  NEW SECTION.  28J.18  REVENUE BONDS ARE LAWFUL
 21 27    Port authority revenue bonds issued pursuant to this
 21 28 chapter are lawful investments of banks, credit unions, trust
 21 29 companies, savings and loan associations, deposit guaranty
 21 30 associations, insurance companies, trustees, fiduciaries,
 21 31 trustees or other officers having charge of the bond
 21 32 retirement funds or sinking funds of port authorities and
 21 33 governmental agencies, and taxing districts of this state, the
 21 34 pension and annuity retirement system, the Iowa public
 21 35 employees' retirement system, the police and fire retirement
 22  1 systems under chapters 410 and 411, a revolving fund of a
 22  2 governmental agency of this state, and are acceptable as
 22  3 security for the deposit of public funds under chapter 12C.
 22  4    Sec. 19.  NEW SECTION.  28J.19  PROPERTY TAX EXEMPTION.
 22  5    A port authority shall be exempt from and shall not be
 22  6 required to pay taxes on real property belonging to a port
 22  7 authority that is used exclusively for an authorized purpose
 22  8 as provided in section 427.1, subsection 34.  This exemption
 22  9 shall not apply to property occupied and used during a tax
 22 10 year by a person who is a lessee of the property for that tax
 22 11 year under a written lease with a remaining term longer than
 22 12 one year except real or personal property, leased to a lessee,
 22 13 which property would be exempt from taxes under chapter 427 if
 22 14 such property belonged to that lessee.  This section does not
 22 15 eliminate the lessor's or the lessee's obligation to comply
 22 16 with other provisions of the Code to obtain an exemption for
 22 17 such property.
 22 18    Sec. 20.  NEW SECTION.  28J.20  LOANS FOR ACQUISITION OR
 22 21    1.  With respect to the financing of a facility for an
 22 22 authorized purpose, under an agreement whereby the person to
 22 23 whom the facility is to be leased, subleased, or sold, or to
 22 24 whom a loan is to be made for the facility, is to make
 22 25 payments sufficient to pay all of the principal of, premium,
 22 26 and interest on the port authority revenue bonds issued for
 22 27 the facility, the port authority, in addition to other powers
 22 28 under this chapter, may do any of the following:
 22 29    a.  Make loans for the acquisition or construction of the
 22 30 facility to such person upon such terms as the port authority
 22 31 may determine or authorize including secured or unsecured
 22 32 loans, and enter into loan agreements and other agreements,
 22 33 accept notes and other forms of obligation to evidence such
 22 34 indebtedness and mortgages, liens, pledges, assignments, or
 22 35 other security interests to secure such indebtedness, which
 23  1 may be prior or subordinate to or on a parity with other
 23  2 indebtedness, obligations, mortgages, pledges, assignments,
 23  3 other security interests, or liens or encumbrances, and take
 23  4 actions considered appropriate to protect such security and
 23  5 safeguard against losses, including, without limitation,
 23  6 foreclosure and the bidding upon and purchase of property upon
 23  7 foreclosure or other sale.
 23  8    b.  Sell the facility under terms as the port authority may
 23  9 determine, including sale by conditional sale or installment
 23 10 sale, under which title may pass prior to or after completion
 23 11 of the facility or payment or provisions for payment of all
 23 12 principal of, premium, and interest on the revenue bonds, or
 23 13 at any other time provided in the agreement pertaining to the
 23 14 sale, and including sale under an option to purchase at a
 23 15 price which may be a nominal amount or less than true value at
 23 16 the time of purchase.
 23 17    c.  Grant a mortgage, lien, or other encumbrance on, or
 23 18 pledge or assignment of, or other security interest with
 23 19 respect to, all or any part of the facility, revenues, reserve
 23 20 funds, or other funds established in connection with the bonds
 23 21 or with respect to a lease, sublease, sale, conditional sale
 23 22 or installment sale agreement, loan agreement, or other
 23 23 agreement pertaining to the lease, sublease, sale, or other
 23 24 disposition of a facility or pertaining to a loan made for a
 23 25 facility, or a guaranty or insurance agreement made with
 23 26 respect thereto, or an interest of the port authority therein,
 23 27 or any other interest granted, assigned, or released to secure
 23 28 payments of the principal of, premium, or interest on the
 23 29 bonds or to secure any other payments to be made by the port
 23 30 authority, which mortgage, lien, encumbrance, pledge,
 23 31 assignment, or other security interest may be prior or
 23 32 subordinate to or on a parity with any other mortgage,
 23 33 assignment, or other security interest, or lien or
 23 34 encumbrance.
 23 35    d.  Provide that the interest on the revenue bonds may be
 24  1 at a variable rate or rates changing from time to time in
 24  2 accordance with a base or formula as authorized by the port
 24  3 authority.
 24  4    e.  Contract for the acquisition or construction of the
 24  5 facility or any part thereof and for the leasing, subleasing,
 24  6 sale, or other disposition of the facility in a manner
 24  7 determined by the port authority in its sole discretion,
 24  8 without necessity for competitive bidding or performance
 24  9 bonds.
 24 10    f.  Make appropriate provision for adequate maintenance of
 24 11 the facility.
 24 12    2.  With respect to a facility referred to in this section,
 24 13 the authority granted by this section is cumulative and
 24 14 supplementary to all other authority granted in this chapter.
 24 15 The authority granted by this section does not alter or impair
 24 16 a similar authority granted elsewhere in this chapter for or
 24 17 with respect to other facilities.
 24 18    Sec. 21.  NEW SECTION.  28J.21  ISSUANCE OF REVENUE AND
 24 20    1.  A port authority may issue revenue bonds and pledge
 24 21 orders payable solely from the net revenues of the port
 24 22 authority.  The revenue bonds may be issued in such principal
 24 23 amounts as, in the opinion of the port authority, are
 24 24 necessary for the purpose of paying the cost of one or more
 24 25 port authority facilities or parts thereof.
 24 26    2.  a.  The resolution to issue the bonds must be adopted
 24 27 at a special meeting of the board called for that purpose by a
 24 28 majority of the total number of members of the board.  The
 24 29 board shall fix a date, time, and place of meeting at which it
 24 30 proposes to take action, and give notice by publication in the
 24 31 manner directed in section 331.305.  The notice must include a
 24 32 statement of the date, time, and place of the meeting, the
 24 33 maximum amount of the proposed revenue bonds, the purpose for
 24 34 which the revenue bonds will be issued, and the net revenues
 24 35 to be used to pay the principal and interest on the revenue
 25  1 bonds.
 25  2    b.  At the meeting the board shall receive oral or written
 25  3 objections from any resident or property owner within the
 25  4 territory of the port authority.  After all objections have
 25  5 been received and considered, the board, at the meeting or a
 25  6 date to which it is adjourned, may take additional action for
 25  7 the issuance of the bonds or abandon the proposal to issue
 25  8 bonds.  Any resident or property owner within the territory of
 25  9 the port authority may appeal a decision of the board to take
 25 10 additional action in district court within fifteen days after
 25 11 the additional action is taken, but the additional action of
 25 12 the board is final and conclusive unless the court finds that
 25 13 the board exceeded its authority.
 25 14    3.  The board may sell revenue bonds or pledge orders at
 25 15 public or private sale in the manner prescribed by chapter 75
 25 16 and may deliver revenue bonds and pledge orders to the
 25 17 contractors, sellers, and other persons furnishing materials
 25 18 and services constituting a part of the cost of the port
 25 19 authority facility in payment therefor.  The pledge of any net
 25 20 revenues of a port authority is valid and effective as to all
 25 21 persons including but not limited to other governmental bodies
 25 22 when it becomes valid and effective between the port authority
 25 23 and the holders of the revenue bonds or pledge orders.
 25 24    4.  A revenue bond is valid and binding for all purposes if
 25 25 it bears the signatures or a facsimile of the signature of the
 25 26 officers in office on the date of the execution of the bonds
 25 27 notwithstanding that any or all persons whose signatures
 25 28 appear have ceased to be such officers prior to the delivery
 25 29 of the bonds.  The issuance of revenue bonds shall be recorded
 25 30 in the office of the secretary of the port authority, and a
 25 31 certificate of the recording by the secretary shall be printed
 25 32 on the back of each revenue bond.  Port authority revenue
 25 33 bonds may bear dates, bear interest at rates not exceeding
 25 34 those permitted by chapter 74A, mature in one or more
 25 35 installments, be in either coupon or registered form, carry
 26  1 registration and conversion privileges, be payable as to
 26  2 principal and interest at times and places, be subject to
 26  3 terms of redemption prior to maturity with or without premium,
 26  4 and be in one or more denominations, all as provided by the
 26  5 resolution of the board authorizing their issuance.  The
 26  6 resolution may also prescribe additional provisions, terms,
 26  7 conditions, and covenants which the port authority deems
 26  8 advisable, consistent with this chapter, including provisions
 26  9 for creating and maintaining reserve funds, the issuance of
 26 10 additional revenue bonds ranking on a parity with such revenue
 26 11 bonds and additional revenue bonds junior and subordinate to
 26 12 such revenue bonds, and that such revenue bonds shall rank on
 26 13 a parity with or be junior and subordinate to any revenue
 26 14 bonds which may be then outstanding.  Port authority revenue
 26 15 bonds are a contract between the port authority and holders
 26 16 and the resolution is a part of the contract.
 26 17    5.  The port authority may issue revenue bonds to refund
 26 18 revenue bonds, pledge orders, and other obligations which are
 26 19 by their terms payable from the net revenues of the same port
 26 20 authority, at lower, the same, or higher rates of interest.  A
 26 21 port authority may sell refunding revenue bonds at public or
 26 22 private sale in the manner prescribed by chapter 75 and apply
 26 23 the proceeds to the payment of the obligations being refunded,
 26 24 and may exchange refunding revenue bonds in payment and
 26 25 discharge of the obligations being refunded.  The principal
 26 26 amount of refunding revenue bonds may exceed the principal
 26 27 amount of the obligations being refunded to the extent
 26 28 necessary to pay any premium due on the call of the
 26 29 obligations being refunded and to fund interest accrued and to
 26 30 accrue on the obligations being refunded.
 26 31    6.  The final maturity of any original issue of port
 26 32 authority revenue bonds shall not exceed forty years from the
 26 33 date of issue, and the final maturity of port authority
 26 34 revenue bonds that refund outstanding port authority revenue
 26 35 bonds shall not be later than the later of forty years from
 27  1 the date of issue of the original issue of bonds or the date
 27  2 by which it is expected, at the time of issuance of the
 27  3 refunding bonds, that the useful life of all of the property
 27  4 refinanced with the proceeds of the bonds, other than
 27  5 interests in land, will have expired.  Such bonds or notes
 27  6 shall be executed in a manner as the resolution may provide.
 27  7    7.  The port authority may contract to pay an amount not to
 27  8 exceed ninety=five percent of the engineer's estimated value
 27  9 of the acceptable work completed during the month to the
 27 10 contractor at the end of each month for work, material, or
 27 11 services.  Payment may be made in warrants drawn on any fund
 27 12 from which payment for the work may be made.  If such funds
 27 13 are depleted, anticipatory warrants may be issued bearing a
 27 14 rate of interest not exceeding that permitted by chapter 74A
 27 15 even if income from the sale of bonds which have been
 27 16 authorized and are applicable to the public improvement takes
 27 17 place after the fiscal year in which the warrants are issued.
 27 18 If the port authority arranges for the private sale of
 27 19 anticipatory warrants, the warrants may be sold and the
 27 20 proceeds used to pay the contractor.  The warrants may also be
 27 21 used to pay other persons furnishing services constituting a
 27 22 part of the cost of the public improvement.
 27 23    8.  Port authority revenue bonds, pledge orders, and
 27 24 warrants issued under this section are negotiable instruments.
 27 25    9.  The board may issue pledge orders pursuant to a
 27 26 resolution adopted by a majority of the total number of
 27 27 supervisors, at a regular or special meeting, ordering their
 27 28 issuance and delivery in payment for all or part of the cost
 27 29 of a project.  Pledge orders may bear interest at rates not
 27 30 exceeding those permitted by chapter 74A.
 27 31    10.  The physical properties of the port authority shall
 27 32 not be pledged or mortgaged to secure the payment of revenue
 27 33 bonds, pledge orders, or refunding bonds, or the interest
 27 34 thereon.
 27 35    11.  The members of the board of the port authority and any
 28  1 person executing the bonds or pledge orders shall not be
 28  2 personally liable on the bonds or pledge orders or be subject
 28  3 to any personal liability or accountability by reason of the
 28  4 issuance thereof.
 28  5    Sec. 22.  NEW SECTION.  28J.22  BONDS MAY BE SECURED BY
 28  7    1.  In the discretion of the port authority, a port
 28  8 authority revenue bond issued under this chapter may be
 28  9 secured by a trust agreement between the port authority and a
 28 10 corporate trustee that may be any trust company or bank having
 28 11 the powers of a trust company within this or any other state.
 28 12    2.  The trust agreement may pledge or assign revenues of
 28 13 the port authority to be received for payment of the revenue
 28 14 bonds.  The trust agreement or any resolution providing for
 28 15 the issuance of revenue bonds may contain provisions for
 28 16 protecting and enforcing the rights and remedies of the
 28 17 bondholders as are reasonable and proper and not in violation
 28 18 of law, including covenants setting forth the duties of the
 28 19 port authority in relation to the acquisition of property, the
 28 20 construction, improvement, maintenance, repair, operation, and
 28 21 insurance of the port authority facility in connection with
 28 22 which the bonds are authorized, the rentals or other charges
 28 23 to be imposed for the use or services of any port authority
 28 24 facility, the custody, safeguarding, and application of all
 28 25 moneys, and provisions for the employment of consulting
 28 26 engineers in connection with the construction or operation of
 28 27 any port authority facility.
 28 28    3.  A bank or trust company incorporated under the laws of
 28 29 this state, that may act as the depository of the proceeds of
 28 30 bonds or of revenues, shall furnish any indemnifying bonds or
 28 31 may pledge any securities that are required by the port
 28 32 authority.  The trust agreement may set forth the rights and
 28 33 remedies of the bondholders and of the trustee, and may
 28 34 restrict the individual right of action by bondholders as is
 28 35 customary in trust agreements or trust indentures securing
 29  1 similar bonds.  The trust agreement may contain any other
 29  2 provisions that the port authority determines reasonable and
 29  3 proper for the security of the bondholders.  All expenses
 29  4 incurred in carrying out the provisions of the trust agreement
 29  5 may be treated as a part of the cost of the operation of the
 29  6 port authority facility.
 29  7    Sec. 23.  NEW SECTION.  28J.23  REMEDY OF HOLDER OF BOND OR
 29  9    1.  The sole remedy for a breach or default of a term of a
 29 10 port authority revenue bond or pledge order is a proceeding in
 29 11 law or in equity by suit, action, or mandamus to enforce and
 29 12 compel performance of the duties required by this chapter and
 29 13 of the terms of the resolution authorizing the issuance of the
 29 14 revenue bonds or pledge orders, or to obtain the appointment
 29 15 of a receiver to take possession of and operate the port
 29 16 authority, and to perform the duties required by this chapter
 29 17 and the terms of the resolution authorizing the issuance of
 29 18 the port authority revenue bonds or pledge orders.
 29 19    2.  An action shall not be brought which questions the
 29 20 legality of port authority revenue bonds or pledge orders, the
 29 21 power of a port authority to issue revenue bonds or pledge
 29 22 orders, or the effectiveness of any proceedings relating to
 29 23 the authorization and issuance of revenue bonds or pledge
 29 24 orders, from and after sixty days from the time the bonds or
 29 25 pledge orders are ordered issued by the port authority.
 29 26    Sec. 24.  NEW SECTION.  28J.24  BONDS ARE PAYABLE SOLELY
 29 28    Port authority revenue bonds and pledge orders issued under
 29 29 this chapter do not constitute a debt, or a pledge of the
 29 30 faith and credit, of the state or a political subdivision of
 29 31 the state, and the holders or owners of the bonds or pledge
 29 32 orders shall not have taxes levied by the state or by a taxing
 29 33 authority of a governmental agency of the state for the
 29 34 payment of the principal of or interest on the bonds or pledge
 29 35 orders, but the bonds and pledge orders are payable solely
 30  1 from the revenues and funds pledged for their payment as
 30  2 authorized by this chapter, unless the notes are issued in
 30  3 anticipation of the issuance of bonds or pledge orders or the
 30  4 bonds and pledge orders are refunded by refunding bonds issued
 30  5 under this chapter, which bonds, pledge orders, or refunding
 30  6 bonds shall be payable solely from revenues and funds pledged
 30  7 for their payment as authorized by those sections.  All of the
 30  8 bonds or pledge orders shall contain on the face thereof a
 30  9 statement to the effect that the bonds or pledge orders, as to
 30 10 both principal and interest, are not debts of the state or a
 30 11 political subdivision of the state, but are payable solely
 30 12 from revenues and funds pledged for their payment.
 30 13    Sec. 25.  NEW SECTION.  28J.25  FUNDS AND PROPERTY HELD IN
 30 15    All revenues, funds, properties, and assets acquired by the
 30 16 port authority under this chapter, whether as proceeds from
 30 17 the sale of port authority revenue bonds, pledge orders, or as
 30 18 revenues, shall be held in trust for the purposes of carrying
 30 19 out the port authority's powers and duties, shall be used and
 30 20 reused as provided in this chapter, and shall at no time be
 30 21 part of other public funds.  Such funds, except as otherwise
 30 22 provided in a resolution authorizing port authority revenue
 30 23 bonds or in a trust agreement securing the same, or except
 30 24 when invested pursuant to section 28J.26, shall be kept in
 30 25 depositories selected by the port authority in the manner
 30 26 provided in chapter 12C, and the deposits shall be secured as
 30 27 provided in that chapter.  The resolution authorizing the
 30 28 issuance of revenue bonds or pledge orders, or the trust
 30 29 agreement securing such bonds or pledge orders shall provide
 30 30 that any officer to whom, or any bank or trust company to
 30 31 which, such moneys are paid shall act as trustee of such
 30 32 moneys and hold and apply them for the purposes hereof,
 30 33 subject to such conditions as this chapter and such resolution
 30 34 or trust agreement provide.
 31  1    1.  If a port authority has surplus funds after making all
 31  2 deposits into all funds required by the terms, covenants,
 31  3 conditions, and provisions of outstanding revenue bonds,
 31  4 pledge orders, and refunding bonds which are payable from the
 31  5 revenues of the port authority and after complying with all of
 31  6 the requirements, terms, covenants, conditions, and provisions
 31  7 of the proceedings and resolutions pursuant to which revenue
 31  8 bonds, pledge orders, and refunding bonds are issued, the
 31  9 board may transfer the surplus funds to any other fund of the
 31 10 port authority in accordance with this chapter and chapter
 31 11 12C, provided that a transfer shall not be made if it
 31 12 conflicts with any of the requirements, terms, covenants,
 31 13 conditions, or provisions of a resolution authorizing the
 31 14 issuance of revenue bonds, pledge orders, or other obligations
 31 15 which are payable from the revenues of the port authority
 31 16 which are then outstanding.
 31 17    2.  This section does not prohibit or prevent the board
 31 18 from using funds derived from any other source which may be
 31 19 properly used for such purpose, to pay a part of the cost of a
 31 20 facility.
 31 21    Sec. 27.  NEW SECTION.  28J.27  CHANGE IN LOCATION OF
 31 23 HIGHWAY.
 31 24    1.  When a port authority changes the location of any
 31 25 portion of any public road, railroad, or utility facility in
 31 26 connection with the construction of a port authority facility,
 31 27 the port authority shall reconstruct at such location as the
 31 28 governmental agency having jurisdiction over such road,
 31 29 railroad, or utility facility finds most favorable.  The
 31 30 construction of such road, railroad, or utility facility shall
 31 31 be of substantially the same type and in as good condition as
 31 32 the original road, railroad, or utility facility.  The cost of
 31 33 such reconstruction, relocation, or removal and any damage
 31 34 incurred in changing the location of any such road, railroad,
 31 35 or utility facility shall be paid by the port authority as a
 32  1 part of the cost of the port authority facility.
 32  2    2.  When the port authority finds it necessary that a
 32  3 public highway or portion of a public highway be vacated by
 32  4 reason of the acquisition or construction of a port authority
 32  5 facility, the port authority may request the director of the
 32  6 department of transportation to vacate such highway or portion
 32  7 in accordance with chapter 306 if the highway or portion to be
 32  8 vacated is on the state highway system, or, if the highway or
 32  9 portion to be vacated is under the jurisdiction of a county,
 32 10 the port authority shall petition the board of supervisors of
 32 11 that county, in the manner provided in chapter 306, to vacate
 32 12 such highway or portion.  The port authority shall pay to the
 32 13 county, as a part of the cost of such port authority facility,
 32 14 any amounts required to be deposited with a court in
 32 15 connection with proceedings for the determination of
 32 16 compensation and damages and all amounts of compensation and
 32 17 damages finally determined to be payable as a result of such
 32 18 vacation.
 32 19    3.  The port authority may adopt bylaws for the
 32 20 installation, construction, maintenance, repair, renewal,
 32 21 relocation, and removal of railroad or utility facilities in,
 32 22 on, over, or under any port authority facility.  Whenever the
 32 23 port authority determines that it is necessary that any such
 32 24 facility installed or constructed in, on, over, or under
 32 25 property of the port authority pursuant to such bylaws be
 32 26 relocated, the utility company owning or operating such
 32 27 facility shall relocate or remove them in accordance with the
 32 28 order of the port authority.  The cost and expenses of such
 32 29 relocation or removal, including the cost of installing such
 32 30 facility in a new location, the cost of any lands, or any
 32 31 rights or interests in lands, and any other rights, acquired
 32 32 to accomplish such relocation or removal, shall be paid by the
 32 33 port authority as a part of the cost of the port authority
 32 34 facility.  In case of any such relocation or removal of such
 32 35 facilities, the railroad or utility company owning or
 33  1 operating them, its successors, or assigns may maintain and
 33  2 operate such facilities, with the necessary appurtenances, in
 33  3 the new location in, on, over, or under the property of the
 33  4 port authority for as long a period and upon the same terms as
 33  5 the railroad or utility company had the right to maintain and
 33  6 operate such facilities in their former location.
 33  7    Sec. 28.  NEW SECTION.  28J.28  FINAL ACTIONS TO BE
 33  9    1.  All final actions of the port authority shall be
 33 10 recorded and the records of the port authority shall be open
 33 11 to public examination and copying pursuant to chapter 22.  Not
 33 12 later than the first day of April every year, a port authority
 33 13 shall submit a report to the director of the department of
 33 14 economic development detailing the projects and activities of
 33 15 the port authority during the previous calendar year.  The
 33 16 report shall include, but not be limited to, all aspects of
 33 17 those projects and activities, including the progress and
 33 18 status of the projects and their costs, and any other
 33 19 information the director determines should be included in the
 33 20 report.
 33 21    2.  Financial and proprietary information, including trade
 33 22 secrets, submitted to a port authority or the agents of a port
 33 23 authority, in connection with the relocation, location,
 33 24 expansion, improvement, or preservation of a business or
 33 25 nonprofit corporation is not a public record subject to
 33 26 chapter 22.  Any other information submitted under those
 33 27 circumstances is not a public record subject to chapter 22
 33 28 until there is a commitment in writing to proceed with the
 33 29 relocation, location, expansion, improvement, or preservation.
 33 30    3.  Notwithstanding chapter 21, the board of directors of a
 33 31 port authority, when considering information that is not a
 33 32 public record under this section, may close a meeting during
 33 33 the consideration of that information pursuant to a vote of
 33 34 the majority of the directors present on a motion stating that
 33 35 such information is to be considered.  Other matters shall not
 34  1 be considered during the closed session.
 34  4    This chapter shall be liberally construed to effect the
 34  5 chapter's purposes.
 34  6    Sec. 30.  Section 427.1, Code 2005, is amended by adding
 34  7 the following new subsection:
 34  9 property of a port authority created pursuant to section
 34 10 28J.2, when devoted to public use and not held for pecuniary
 34 11 profit.  This exemption shall not apply to any property
 34 12 occupied and used during a tax year under a written lease with
 34 13 a remaining term longer than one year except real property
 34 14 leased which would otherwise be exempt from taxes under this
 34 15 chapter if such property belonged to that lessee.
 34 16                           EXPLANATION
 34 17    This bill relates to the establishment of a port authority
 34 18 by two or more cities, counties, city=county consolidations,
 34 19 multicounty consolidations and provides for certain powers,
 34 20 limitations, and requirements of port authorities.  The bill
 34 21 authorizes the creation of a port authority to finance
 34 22 activities that enhance or promote economic development,
 34 23 housing, recreation, education, and other authorized purposes
 34 24 as defined in the bill.  The bill provides that port
 34 25 authorities are governed by a board of directors appointed by
 34 26 the political subdivisions that created and comprise the port
 34 27 authority.  A port authority may be dissolved by the political
 34 28 subdivisions which created the port authority.  The port
 34 29 authority may employ persons, including peace officers, who
 34 30 shall have the right to collectively bargain under Code
 34 31 chapter 20.
 34 32    The bill provides that port authorities may adopt bylaws,
 34 33 adopt an official seal, maintain offices, acquire or sell real
 34 34 or personal property, improve a river or other watercourse,
 34 35 apply to establish foreign trade zones, maintain funds,
 35  1 promote and publicize its facilities, make loans for real or
 35  2 personal property, exercise the right of eminent domain, make
 35  3 and enter into contracts using competitive bidding, employ
 35  4 managers and consultants, receive and accept grants and loans,
 35  5 engage in research and development, purchase insurance, charge
 35  6 fees for use of services and facilities, and perform other
 35  7 acts necessary and proper to carry out other powers.
 35  8    The bill provides that the board of directors shall prepare
 35  9 an annual budget.  A secretary of a port authority must post a
 35 10 bond prior to receiving or disbursing revenues of the port
 35 11 authority.  Political subdivisions who comprise a port
 35 12 authority may not exercise rights or powers over a port,
 35 13 wharf, dock, harbor, or other facility similar to the
 35 14 authority granted to the port authority under other provisions
 35 15 of the Code.  A port authority may charge rent and other fees
 35 16 for the use and services of a port authority facility and may
 35 17 make agreements with other governmental agencies to acquire or
 35 18 construct a port authority facility including the provision of
 35 19 funds.  A port authority may enter into contracts necessary to
 35 20 exercise its powers.  The bill provides that a port authority
 35 21 is exempt from payment of property taxes when its property is
 35 22 not held for pecuniary profit.  A port authority may finance a
 35 23 facility of the port authority by making a loan or mortgage
 35 24 for the acquisition or construction of a facility or entering
 35 25 into a loan agreement or mortgage.
 35 26    The bill provides that a port authority may issue revenue
 35 27 bonds and pledge orders which are payable from the port
 35 28 authority's net revenues.  To issue a bond the board of the
 35 29 port authority must pass a resolution at a special meeting of
 35 30 the board after notice of the meeting has been published.
 35 31 Residents and property owners within the jurisdiction of the
 35 32 port authority may object to the issuing of a bond.  Port
 35 33 authority revenue bonds and pledge orders may be sold at
 35 34 public or private sale and must be signed by the officers of
 35 35 the board.  A port authority may also issue revenue bonds to
 36  1 refund revenue bonds, pledge orders, or other obligations
 36  2 payable from the net revenues of the port authority.  The
 36  3 final maturity of a revenue bond shall not exceed 40 years.
 36  4 Port authority revenue bonds and pledge orders are subject to
 36  5 the interest rate limitations of Code chapter 74A and the
 36  6 requirements and limitations of Code chapter 75.  Port
 36  7 authority revenue bonds may be secured by a trust agreement
 36  8 which may pledge or assign revenues of the port authority for
 36  9 payment of the revenue bonds.  The remedy for breach or
 36 10 default on a port authority revenue bond is an action to
 36 11 compel performance of the duties required by Code chapter 28J
 36 12 and the terms of the resolution authorizing the bond's
 36 13 issuance which must be brought within 60 days after the bonds
 36 14 are issued.
 36 15    The bill provides that all revenues and other assets of a
 36 16 port authority shall be held in trust and used only as
 36 17 provided in Code chapter 28 and shall be kept in depositories
 36 18 authorized to keep public funds.  A port authority may
 36 19 transfer surplus funds to another fund of the port authority
 36 20 or to the political subdivisions comprising the port authority
 36 21 as agreed by the political subdivisions.
 36 22    If a port authority changes the location of a public road,
 36 23 railroad, or utility facility when constructing a port
 36 24 authority facility, the port authority shall reconstruct the
 36 25 road, railroad, or facility at another location approved by
 36 26 the appropriate governmental authority.
 36 27    The bill provides that all final actions of the port
 36 28 authority shall be recorded and that all records of the port
 36 29 authority are public records under Code chapter 22.  Certain
 36 30 financial and proprietary information provided to a port
 36 31 authority are not public records.  When discussing matters
 36 32 relating to information not open to the public, the port
 36 33 authority may consider the information during a closed
 36 34 meeting.
 36 35    The bill makes other corresponding and technical changes.
 37  1 LSB 2070HH 81
 37  2 kk:rj/cf/24