H.F. 2411 Section 1. Section 12C.1, subsection 1, Code 2009, is 1 amended to read as follows: 2 1. All funds held by the following officers or institutions 3 shall be deposited in one or more depositories first approved 4 by the appropriate governing body as indicated: for the 5 treasurer of state, by the executive council; for judicial 6 officers and court employees, by the supreme court; for the 7 county treasurer, recorder, auditor, and sheriff, by the board 8 of supervisors; for the city treasurer or other designated 9 financial officer of a city, by the city council; for the 10 county public hospital or merged area hospital, by the board 11 of hospital trustees; for a memorial hospital, by the memorial 12 hospital commission; for a school corporation, by the board 13 of school directors; for a city utility or combined utility 14 system established under chapter 388, by the utility board; for 15 a library service area established under chapter 256, by the 16 library service area board of trustees; and for an electric 17 power agency as defined in section 28F.2 or 476A.20 390.9 , by 18 the governing body of the electric power agency. However, 19 the treasurer of state and the treasurer of each political 20 subdivision or the designated financial officer of a city shall 21 invest all funds not needed for current operating expenses in 22 time certificates of deposit in approved depositories pursuant 23 to this chapter or in investments permitted by section 12B.10. 24 The list of public depositories and the amounts severally 25 deposited in the depositories are matters of public record. 26 This subsection does not limit the definition of “public funds” 27 contained in subsection 2. Notwithstanding provisions of this 28 section to the contrary, public funds of a state government 29 deferred compensation plan established by the executive council 30 may also be invested in the investment products authorized 31 under section 509A.12. 32 Sec. 2. Section 12C.1, subsection 2, paragraph e, 33 subparagraph (4), Code 2009, is amended to read as follows: 34 (4) The moneys of an electric power agency as defined in 35 -1- LSB 5210HV (2) 83 rn/sc 1/ 5

H.F. 2411 section 28F.2 or 476A.20 390.9 . 1 Sec. 3. Section 28F.1, unnumbered paragraphs 3 and 4, Code 2 2009, are amended by striking the unnumbered paragraphs. 3 Sec. 4. Section 28F.2, subsection 1, Code 2009, is amended 4 to read as follows: 5 1. “Electric power agency” means an entity financing or 6 acquiring electric power facilities pursuant to this chapter 7 or chapter 28E or 476A . 8 Sec. 5. NEW SECTION . 390.9 Definitions. 9 For purposes of this subchapter, unless the context 10 otherwise requires: 11 1. “Electric power agency” means an entity financing or 12 acquiring an electric power facility pursuant to this chapter, 13 chapter 28E, or chapter 28F. An electric power agency may 14 be organized as a nonprofit corporation, limited liability 15 company, or as a separate administrative or legal entity 16 pursuant to chapter 28E. When the electric power agency is 17 comprised solely of cities or solely of cities and other 18 political subdivisions, the electric power agency shall be a 19 political subdivision of the state with the name under which it 20 was organized, and shall have all the powers of a city or city 21 utility under this chapter. 22 2. “Facility” , “joint facility” , “electric power facility” , 23 or “project” means an electric power generating plant, or 24 transmission line or system, including a joint facility as 25 defined in section 390.1, subsection 7. 26 3. “Public bond or obligation” means an obligation as 27 defined in section 76.14. 28 Sec. 6. Section 476.1B, subsection 1, paragraph m, Code 29 2009, is amended to read as follows: 30 m. An electric power agency as defined in chapters 31 chapter 28F and 476A section 390.9 that includes as a member 32 a city or municipally owned utility that builds transmission 33 facilities after July 1, 2001, is subject to applicable 34 transmission reliability rules or standards adopted by the 35 -2- LSB 5210HV (2) 83 rn/sc 2/ 5

H.F. 2411 board for those facilities. 1 Sec. 7. REPEAL. Section 476A.20, Code 2009, is repealed. 2 Sec. 8. CODE EDITOR’S DIRECTIVE. Section 476A.21 shall be 3 transferred to new section 390.10. 4 Sec. 9. CODE EDITOR’S DIRECTIVE. Section 476A.22 shall be 5 transferred to new section 390.11. 6 Sec. 10. CODE EDITOR’S DIRECTIVE. Section 476A.23 shall be 7 transferred to new section 390.12. 8 Sec. 11. CODE EDITOR’S DIRECTIVE. Section 476A.24 shall be 9 transferred to new section 390.13. 10 Sec. 12. CODE EDITOR’S DIRECTIVE. Section 476A.25 shall be 11 transferred to new section 390.14. 12 Sec. 13. CODE EDITOR’S DIRECTIVE. Section 476A.26 shall be 13 transferred to new section 390.15. 14 Sec. 14. CODE EDITOR’S DIRECTIVE. Section 476A.27 shall be 15 transferred to new section 390.16. 16 Sec. 15. CODE EDITOR’S DIRECTIVE. Section 476A.28 shall be 17 transferred to new section 390.17. 18 Sec. 16. CODE EDITOR’S DIRECTIVE. Section 476A.29 shall be 19 transferred to new section 390.18. 20 Sec. 17. CODE EDITOR’S DIRECTIVE. Section 476A.30 shall be 21 transferred to new section 390.19. 22 Sec. 18. CODE EDITOR’S DIRECTIVE. Section 476A.31 shall be 23 transferred to new section 390.20. 24 Sec. 19. CODE EDITOR’S DIRECTIVE. Section 476A.32 shall be 25 transferred to new section 390.21. 26 Sec. 20. CODE EDITOR’S DIRECTIVE. Section 476A.33 shall be 27 transferred to new section 390.22. 28 Sec. 21. CODE EDITOR’S DIRECTIVE. Section 476A.34 shall be 29 transferred to new section 390.23. 30 Sec. 22. CODE EDITOR’S DIRECTIVE. Section 476A.35 shall be 31 transferred to new section 390.24. 32 Sec. 23. CODE EDITOR’S DIRECTIVE. Section 476A.36 shall be 33 transferred to new section 390.25. 34 EXPLANATION 35 -3- LSB 5210HV (2) 83 rn/sc 3/ 5

H.F. 2411 This bill modifies provisions applicable to the formation 1 and operation of electric power agencies. Such agencies are 2 currently authorized pursuant to Code chapters 28F and 476A, 3 subchapter II, to enter into joint agreements with other 4 agencies or entities for the financing, acquisition, and 5 operation of projects for the generation and transmission of 6 electric energy. 7 The bill deletes provisions currently contained in Code 8 chapter 28F requiring voter approval for a city to join another 9 entity to finance electric power facilities and prohibiting 10 submission of the same or similar proposal to the voters sooner 11 than one year from the date of the election at which the 12 proposal was defeated. 13 The bill transfers several Code sections which currently 14 constitute Code chapter 476A, subchapter II, to a new 15 subchapter in Code section 390, which relates to joint 16 electrical utilities. The bill expands the definition of 17 “facility”, as transferred to the new Code subchapter in Code 18 section 390.9, to refer to a joint facility, electric power 19 facility, or project, and to include a joint facility as 20 defined in Code section 390.1, subsection 7. That definition 21 refers to all property necessary or useful for generating, 22 purchasing, obtaining by exchange or otherwise acquiring, or 23 transmitting electric power and energy, which is owned and 24 operated pursuant to a joint agreement. 25 Additionally, the bill provides that an electric power 26 agency may be organized under Code chapter 390 as a nonprofit 27 corporation, limited liability company, or as a separate 28 administrative or legal entity pursuant to Code chapter 28E. 29 When the electric power agency is comprised solely of cities 30 or solely of cities and other political subdivisions, the bill 31 specifies that the electric power agency shall be a political 32 subdivision of the state of Iowa for purposes of exercising the 33 powers conferred in Code chapter 390. 34 The bill makes conforming changes consistent with the 35 -4- LSB 5210HV (2) 83 rn/sc 4/ 5