House File 835 - Reprinted HOUSE FILE BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 733) (SUCCESSOR TO HF 425) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved 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. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 2070HZ 81 10 kk/cf/24 PAG LIN 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 g. The costs of issuance of port authority revenue bonds 2 13 and pledge orders. 2 14 h. The cost of diverting a rail line, rail spur track, or 2 15 rail spur track switch, including the cost of land or 2 16 easements, and relocation of a facility of a utility company 2 17 or common carrier. 2 18 i. The cost of relocating an airport's runways, terminals, 2 19 and related facilities including the cost of land or 2 20 easements, and relocation of a facility of a utility company 2 21 or common carrier. 2 22 7. "Facility" or "port authority facility" means real or 2 23 personal property owned, leased, or otherwise controlled or 2 24 financed by a port authority and related to or in furtherance 2 25 of one or more authorized purposes. 2 26 8. "Governmental agency" means a department, division, or 2 27 other unit of state government of this state or any other 2 28 state, city, county, township, or other governmental 2 29 subdivision, or any other public corporation or agency created 2 30 under the laws of this state, any other state, the United 2 31 States, or any department or agency thereof, or any agency, 2 32 commission, or authority established pursuant to an interstate 2 33 compact or agreement or combination thereof. 2 34 9. "Person" means the same as defined in section 4.1. 2 35 10. "Pledge order" means a promise to pay out of the net 3 1 revenues of a port authority, which is delivered to a 3 2 contractor or other person in payment of all or part of the 3 3 cost of a facility. 3 4 11. "Political subdivision" means a city, county, city= 3 5 county consolidation, or multicounty consolidation, or 3 6 combination thereof. 3 7 12. "Political subdivisions comprising the port authority" 3 8 means the political subdivisions which created or participated 3 9 in the creation of the port authority under section 28J.2, or 3 10 which joined an existing port authority under section 28J.4. 3 11 13. "Port authority" means an entity created pursuant to 3 12 section 28J.2. 3 13 14. "Port authority revenue bonds" means revenue bonds and 3 14 revenue refunding bonds issued pursuant to section 28J.21. 3 15 15. "Public roads" means all public highways, roads, and 3 16 streets in this state, whether maintained by the state or by a 3 17 county or city. 3 18 16. "Revenues" means rental fees and other charges 3 19 received by a port authority for the use or services of a 3 20 facility, a gift or grant received with respect to a facility, 3 21 moneys received with respect to the lease, sublease, sale, 3 22 including installment sale or conditional sale, or other 3 23 disposition of a facility, moneys received in repayment of and 3 24 for interest on any loans made by the port authority to a 3 25 person or governmental agency, proceeds of port authority 3 26 revenue bonds for payment of principal, premium, or interest 3 27 on the bonds authorized by the port authority, proceeds from 3 28 any insurance, condemnation, or guarantee pertaining to the 3 29 financing of the facility, and income and profit from the 3 30 investment of the proceeds of port authority revenue bonds or 3 31 of any revenues. 3 32 Sec. 2. NEW SECTION. 28J.2 CREATION AND POWERS OF PORT 3 33 AUTHORITY. 3 34 1. Two or more political subdivisions may create a port 3 35 authority under this chapter by resolution. If a proposal to 4 1 create a port authority receives a favorable majority of the 4 2 members of the elected legislative body of the political 4 3 subdivision, the port authority is created at the time 4 4 provided in the resolution. The jurisdiction of a port 4 5 authority includes the territory described in section 28J.8. 4 6 2. A port authority created pursuant to this section may 4 7 sue and be sued, complain, and defend in its name and has the 4 8 powers and jurisdiction enumerated in this chapter. 4 9 3. At the time a port authority is created pursuant to 4 10 this section, the political subdivisions comprising the port 4 11 authority may restrict the powers granted the port authority 4 12 pursuant to this chapter by specifically adopting such 4 13 restrictions in the resolution creating the port authority. 4 14 4. The political subdivisions comprising the port 4 15 authority whose powers have been restricted pursuant to 4 16 subsection 3 may at any time adopt a resolution to grant 4 17 additional powers to the port authority, so long as the 4 18 additional powers do not exceed the powers permitted under 4 19 this chapter. 4 20 Sec. 3. NEW SECTION. 28J.3 APPROPRIATION AND EXPENDITURE 4 21 OF PUBLIC FUNDS == DISSOLUTION. 4 22 1. The political subdivisions comprising a port authority 4 23 may appropriate and expend public funds to finance or 4 24 subsidize the operation and authorized purposes of the port 4 25 authority. A port authority shall control tax revenues 4 26 allocated to the facilities the port authority administers and 4 27 all revenues derived from the operation of the port authority, 4 28 the sale of its property, interest on investments, or from any 4 29 other source related to the port authority. 4 30 2. All revenues received by the port authority shall be 4 31 held in a separate fund in a manner agreed to by the political 4 32 subdivisions comprising the port authority. Revenues may be 4 33 paid out only at the direction of the board of directors of 4 34 the port authority. 4 35 3. A port authority shall comply with section 331.341, 5 1 subsections 1, 2, 4, and 5, and section 331.342, when 5 2 contracting for public improvements. 5 3 4. Subject to making due provisions for payment and 5 4 performance of any outstanding obligations, the political 5 5 subdivisions comprising the port authority may dissolve the 5 6 port authority, and transfer the property of the port 5 7 authority to the political subdivisions comprising the port 5 8 authority in a manner agreed upon between the political 5 9 subdivisions comprising the port authority prior to the 5 10 dissolution of the port authority. 5 11 Sec. 4. NEW SECTION. 28J.4 JOINING AN EXISTING PORT 5 12 AUTHORITY. 5 13 1. A political subdivision which is contiguous to either a 5 14 political subdivision which participated in the creation of 5 15 the port authority or a political subdivision which proposes 5 16 to join the port authority at the same time which is 5 17 contiguous to a political subdivision which participated in 5 18 the creation of the port authority may join the port authority 5 19 by resolution. 5 20 2. If more than one such political subdivision proposes to 5 21 join the port authority at the same time, the resolution of 5 22 each such political subdivision shall designate the political 5 23 subdivisions which are to be so joined. 5 24 3. Any territory or city not included in a port authority 5 25 which is annexed to a city included within the jurisdiction of 5 26 a port authority shall, on such annexation and without further 5 27 proceedings, be annexed to and be included in the jurisdiction 5 28 of the port authority. 5 29 4. Before a political subdivision is joined to a port 5 30 authority, other than by annexation to a city, the political 5 31 subdivisions comprising the port authority shall agree upon 5 32 the terms and conditions pursuant to which such political 5 33 subdivision is to be joined. 5 34 5. For the purpose of this chapter, such political 5 35 subdivision shall be considered to have participated in the 6 1 creation of the port authority, except that the initial term 6 2 of any director of the port authority appointed by a joining 6 3 political subdivision shall be four years. 6 4 6. After each resolution proposing a political subdivision 6 5 to join a port authority has become effective and the terms 6 6 and conditions of joining the port authority have been agreed 6 7 to, the board of directors of the port authority shall by 6 8 resolution either accept or reject the proposal. Such 6 9 proposal to join a port authority shall be effective upon 6 10 adoption of the resolution by the board of directors of the 6 11 port authority and thereupon the jurisdiction of the port 6 12 authority includes the joining political subdivision. 6 13 Sec. 5. NEW SECTION. 28J.5 MEMBERSHIP OF BOARD OF 6 14 DIRECTORS. 6 15 1. A port authority created pursuant to section 28J.2 6 16 shall be governed by a board of directors. Members of a board 6 17 of directors of a port authority shall be divided among the 6 18 political subdivisions comprising the port authority in such 6 19 proportions as the political subdivisions may agree and shall 6 20 be appointed by the respective political subdivision's elected 6 21 legislative body. 6 22 2. The number of directors comprising the board shall be 6 23 determined by agreement between the political subdivisions 6 24 comprising the port authority, and which number may be changed 6 25 by resolution of the political subdivisions comprising the 6 26 port authority. 6 27 3. A majority of the directors shall have been qualified 6 28 electors of, or owned a business or been employed in, one or 6 29 more political subdivisions within the area of the 6 30 jurisdiction of the port authority for a period of at least 6 31 three years preceding appointment. 6 32 4. The directors of a port authority first appointed shall 6 33 serve staggered terms. Thereafter each successor director 6 34 shall serve for a term of four years, except that any person 6 35 appointed to fill a vacancy shall be appointed to only the 7 1 unexpired term. A director is eligible for reappointment. 7 2 5. The board may provide procedures for the removal of a 7 3 director who fails to attend three consecutive regular 7 4 meetings of the board. If a director is so removed, a 7 5 successor shall be appointed for the remaining term of the 7 6 removed director in the same manner provided for the original 7 7 appointment. The appointing body may at any time remove a 7 8 director appointed by it for misfeasance, nonfeasance, or 7 9 malfeasance in office. 7 10 6. The board may adopt bylaws and shall elect one director 7 11 as chairperson and one director as vice chairperson, designate 7 12 terms of office, and appoint a secretary who need not be a 7 13 director. 7 14 7. A majority of the board of directors shall constitute a 7 15 quorum for the purpose of holding a meeting of the board. The 7 16 affirmative vote of a majority of a quorum shall be necessary 7 17 for any action taken by the port authority unless the board 7 18 determines that a greater number of affirmative votes is 7 19 necessary for particular actions to be taken by the port 7 20 authority. A vacancy in the membership of the board shall not 7 21 impair the rights of a quorum to exercise all the rights and 7 22 perform all the duties of the port authority. 7 23 8. Each director shall be entitled to receive from the 7 24 port authority such sum of money as the board may determine as 7 25 compensation for services as a director and reimbursement for 7 26 reasonable expenses in the performance of official duties. 7 27 Sec. 6. NEW SECTION. 28J.6 CIVIL IMMUNITY OF DIRECTORS. 7 28 A director of a port authority shall not be personally 7 29 liable for any monetary damages that arise from actions taken 7 30 in the performance of the director's official duties, except 7 31 for acts or omissions that are not in good faith or that 7 32 involve intentional misconduct, a knowing violation of law, or 7 33 any transaction from which the director derived an improper 7 34 personal benefit. 7 35 Sec. 7. NEW SECTION. 28J.7 EMPLOYEES, ADVISORY BOARD, 8 1 PEACE OFFICERS. 8 2 1. A port authority shall employ and fix the 8 3 qualifications, duties, and compensation of any employees and 8 4 enter into contracts for any services that may be required to 8 5 conduct the business of the port authority, and may appoint an 8 6 advisory board, which shall serve without compensation. 8 7 2. An employee of a port authority is a public employee 8 8 for the purposes of collective bargaining under chapter 20. 8 9 3. a. A port authority may provide for the administration 8 10 and enforcement of the laws of the state by employing peace 8 11 officers who shall have all the powers conferred by law on 8 12 peace officers of this state with regard to the apprehension 8 13 of violators upon all property under its control within and 8 14 without the port authority. The peace officers may seek the 8 15 assistance of other appropriate law enforcement officers to 8 16 enforce its rules and maintain order. 8 17 b. Peace officers employed by a port authority shall meet 8 18 all requirements as police officers appointed under the civil 8 19 service law of chapter 400 and shall participate in the 8 20 retirement system established by chapter 411. 8 21 c. Peace officers employed by a port authority shall serve 8 22 as a peace officer force with respect to the property, 8 23 grounds, buildings, equipment, and facilities under the 8 24 control of the port authority, to prevent hijacking of 8 25 aircraft or watercraft, protect the property of the authority 8 26 and the property of others located thereon, suppress nuisances 8 27 and disturbances and breaches of the peace, and enforce laws 8 28 and the rules of the port authority for the preservation of 8 29 good order. Peace officers are vested with the same powers of 8 30 arrest as peace officers under section 804.7. 8 31 4. If an employee of a political subdivision comprising 8 32 the port authority is transferred to a comparable position 8 33 with the port authority, the employee is entitled to suffer no 8 34 loss in pay, pension, fringe benefits, or other benefits and 8 35 shall be entitled to a comparable rank and grade as the 9 1 employee's prior position. Sick leave, longevity, and 9 2 vacation time accrued to such employees shall be credited to 9 3 them as employees of the port authority. All rights and 9 4 accruals of such employees as members of the Iowa public 9 5 employees' retirement system pursuant to chapter 97B and the 9 6 retirement system for police officers pursuant to chapter 411 9 7 shall remain in force and shall be automatically transferred 9 8 to the port authority. 9 9 Sec. 8. NEW SECTION. 28J.8 AREA OF JURISDICTION. 9 10 1. The area of jurisdiction of a port authority shall 9 11 include all of the territory of the political subdivisions 9 12 comprising the port authority and, if the port authority owns 9 13 or leases a railroad line or airport, the territory on which 9 14 the railroad's line, terminals, and related facilities or the 9 15 airport's runways, terminals, and related facilities are 9 16 located, regardless of whether the territory is located in the 9 17 political subdivisions comprising the port authority. 9 18 2. A political subdivision that has created a port 9 19 authority or joined an existing port authority shall not be 9 20 included in any other port authority. 9 21 Sec. 9. NEW SECTION. 28J.9 POWERS OF PORT AUTHORITY. 9 22 A port authority may exercise all of the following powers: 9 23 1. Adopt bylaws for the regulation of the port authority's 9 24 affairs and the conduct of the port authority's business. 9 25 2. Adopt an official seal. 9 26 3. Maintain a principal office and branch offices within 9 27 the port authority's jurisdiction. 9 28 4. Acquire, construct, furnish, equip, maintain, repair, 9 29 sell, exchange, lease, lease with an option to purchase, 9 30 convey interests in real or personal property, and operate any 9 31 property of the port authority in connection with 9 32 transportation, recreational, governmental operations, or 9 33 cultural activities in furtherance of an authorized purpose. 9 34 5. Straighten, deepen, and improve any channel, river, 9 35 stream, or other watercourse or way which may be necessary or 10 1 proper in the development of the facilities of the port 10 2 authority. 10 3 6. Make available the use or services of any facility of 10 4 the port authority to any person or governmental agency. 10 5 7. Issue bonds or pledge orders pursuant to the 10 6 requirements and limitations in section 28J.21. 10 7 8. Issue port authority revenue bonds beyond the limit of 10 8 bonded indebtedness provided by law, payable solely from 10 9 revenues as provided in section 28J.21, for the purpose of 10 10 providing funds to pay the costs of any facility or facilities 10 11 of the port authority or parts thereof. 10 12 9. Apply to the proper authorities of the United States 10 13 for the right to establish, operate, and maintain foreign 10 14 trade zones and establish, operate, and maintain foreign trade 10 15 zones and to acquire, exchange, sell, lease to or from, lease 10 16 with an option to purchase, or operate facilities, land, or 10 17 property in accordance with the federal Foreign Trade Zones 10 18 Act, 19 U.S.C. } 81a=81u. 10 19 10. Enjoy and possess the same legislative and executive 10 20 rights, privileges, and powers granted cities under chapter 10 21 364 and counties under chapter 331, including the exercise of 10 22 police power but excluding the power to levy taxes. 10 23 11. Maintain such funds as it considers necessary and 10 24 adhere to the public funds investment standards of chapter 10 25 12B, as applicable. 10 26 12. Direct port authority agents or employees, after at 10 27 least five days' written notice, to enter upon lands within 10 28 the port authority's jurisdiction to make surveys and 10 29 examinations preliminary to location and construction of works 10 30 for the port authority, without liability of the port 10 31 authority or its agents or employees except for actual 10 32 damages. 10 33 13. Promote, advertise, and publicize the port authority 10 34 and its facilities, and provide information to shippers and 10 35 other commercial interests. 11 1 14. Adopt bylaws, not in conflict with state or federal 11 2 law, necessary or incidental to the performance of the duties 11 3 of and the execution of the powers of the port authority under 11 4 this chapter. 11 5 15. Do any of the following in regard to interests in real 11 6 or personal property, including machinery, equipment, plants, 11 7 factories, offices, and other structures and facilities 11 8 related to or in furtherance of any authorized purpose as the 11 9 board in its sole discretion may determine: 11 10 a. Loan money to any person or governmental agency for the 11 11 acquisition, construction, furnishing, or equipping of the 11 12 property. 11 13 b. Acquire, construct, maintain, repair, furnish, or equip 11 14 the property. 11 15 c. Sell to, exchange with, lease, convey other interests 11 16 in, or lease with an option to purchase the same or any lesser 11 17 interest in the property to the same or any other person or 11 18 governmental agency. 11 19 d. Guarantee the obligations of any person or governmental 11 20 agency. 11 21 e. Accept and hold as consideration for the conveyance of 11 22 property or any interest therein such property or interests 11 23 therein as the board may determine, notwithstanding any 11 24 restrictions that apply to the investment of funds by a port 11 25 authority. 11 26 16. Sell, lease, or convey other interests in real and 11 27 personal property, and grant easements or rights=of=way over 11 28 property of the port authority. The board shall specify the 11 29 consideration and terms for the sale, lease, or conveyance of 11 30 other interests in real and personal property. A 11 31 determination made by the board under this subsection shall be 11 32 conclusive. The sale, lease, or conveyance may be made 11 33 without advertising and the receipt of bids. 11 34 17. Enter into an agreement with a political subdivision 11 35 comprising the port authority for the political subdivision to 12 1 exercise its right of eminent domain pursuant to chapters 6A 12 2 and 6B on behalf of the port authority. However, a 12 3 condemnation exercised on behalf of a port authority pursuant 12 4 to this subsection shall not take or disturb property or a 12 5 facility belonging to a governmental agency, utility company, 12 6 or common carrier, which property or facility is necessary and 12 7 convenient in the operation of the governmental agency, 12 8 utility company, or common carrier, unless provision is made 12 9 for the restoration, relocation, or duplication of such 12 10 property or facility, or upon the election of the governmental 12 11 agency, utility company, or common carrier, for the payment of 12 12 compensation, if any, at the sole cost of the port authority, 12 13 provided that both of the following apply: 12 14 a. If a restoration or duplication proposed to be made 12 15 under this subsection involves a relocation of the property or 12 16 facility, the new facility and location shall be of at least 12 17 comparable utilitarian value and effectiveness and shall not 12 18 impair the ability of the utility company or common carrier to 12 19 compete in its original area of operation. 12 20 b. If a restoration or duplication made under this 12 21 subsection involves a relocation of the property or facility, 12 22 the port authority shall acquire no interest or right in or to 12 23 the appropriated property or facility, until the relocated 12 24 property or facility is available for use and until marketable 12 25 title thereto has been transferred to the utility company or 12 26 common carrier. 12 27 18. a. Make and enter into all contracts and agreements 12 28 and execute all instruments necessary or incidental to the 12 29 performance of the duties of and the execution of powers of 12 30 the port authority under this chapter. 12 31 b. Except as provided in paragraph "c", when the cost of a 12 32 contract for the construction of a building, structure, or 12 33 other improvement undertaken by a port authority involves an 12 34 expenditure exceeding twenty=five thousand dollars, and the 12 35 port authority is the contracting entity, the port authority 13 1 shall make a written contract after notice calling for bids 13 2 for the award of the contract has been given by publication 13 3 twice, with at least seven days between publications, in a 13 4 newspaper of general circulation in the area of the port 13 5 authority. Each such contract shall be let to the lowest 13 6 responsive and responsible bidder. Every contract shall be 13 7 accompanied by or shall refer to plans and specifications for 13 8 the work to be done, prepared for and approved by the port 13 9 authority, and signed by an authorized officer of the port 13 10 authority and by the contractor. 13 11 c. The board of directors may provide criteria for the 13 12 negotiation and award without competitive bidding of any 13 13 contract as to which the port authority is the contracting 13 14 entity for the construction of any building or structure or 13 15 other improvement under any of the following circumstances: 13 16 (1) A real and present emergency exists that threatens 13 17 damage or injury to persons or property of the port authority 13 18 or other persons, provided that a statement specifying the 13 19 nature of the emergency that is the basis for the negotiation 13 20 and award of a contract without competitive bidding shall be 13 21 signed by the officer of the port authority that executes that 13 22 contract at the time of the contract's execution and shall be 13 23 attached to the contract. 13 24 (2) A commonly recognized industry or other standard or 13 25 specification does not exist and cannot objectively be 13 26 articulated for the improvement. 13 27 (3) The contract is for any energy conservation measure as 13 28 defined in section 7D.34. 13 29 (4) With respect to material to be incorporated into the 13 30 improvement, only a single source or supplier exists for the 13 31 material. 13 32 (5) A single bid is received by the port authority after 13 33 complying with the provisions of paragraph "b". 13 34 d. (1) If a contract is to be negotiated and awarded 13 35 without competitive bidding for the reason set forth in 14 1 paragraph "c", subparagraph (2), the port authority shall 14 2 publish a notice calling for technical proposals at least 14 3 twice, with at least seven days between publications, in a 14 4 newspaper of general circulation in the area of the port 14 5 authority. After receipt of the technical proposals, the port 14 6 authority may negotiate with and award a contract for the 14 7 improvement to the person making the proposal considered to be 14 8 the most advantageous to the port authority. 14 9 (2) If a contract is to be negotiated and awarded without 14 10 competitive bidding for the reason set forth in paragraph "c", 14 11 subparagraph (4), construction activities related to the 14 12 incorporation of the material into the improvement also may be 14 13 provided without competitive bidding by the source or supplier 14 14 of that material. 14 15 e. A purchase, exchange, sale, lease, lease with an option 14 16 to purchase, conveyance of other interests in, or other 14 17 contract with a person or governmental agency that pertains to 14 18 the acquisition, construction, maintenance, repair, 14 19 furnishing, equipping, or operation of any real or personal 14 20 property, related to or in furtherance of economic development 14 21 and the provision of adequate housing, shall be made in such 14 22 manner and subject to such terms and conditions as may be 14 23 determined in the board's discretion. This paragraph applies 14 24 to all contracts that are subject to this section, 14 25 notwithstanding any other provision of law that might 14 26 otherwise apply, including a requirement of notice, 14 27 competitive bidding or selection, or for the provision of 14 28 security. However, this paragraph shall not apply to a 14 29 contract secured exclusively by or to be paid exclusively from 14 30 the general revenues of the port authority. For the purposes 14 31 of this paragraph, any revenues derived by the port authority 14 32 under a lease or other agreement that, by its terms, 14 33 contemplates the use of amounts payable under the agreement 14 34 either to pay the costs of the improvement that is the subject 14 35 of the contract or to secure obligations of the port authority 15 1 issued to finance costs of such improvement, are excluded from 15 2 general revenues. 15 3 19. Employ managers, superintendents, and other employees 15 4 and retain or contract with consulting engineers, financial 15 5 consultants, accounting experts, architects, attorneys, and 15 6 any other consultants and independent contractors as are 15 7 necessary in the port authority's judgment to carry out this 15 8 chapter, and fix the compensation thereof. All expenses 15 9 thereof shall be payable from any available funds of the port 15 10 authority or from funds appropriated for that purpose by the 15 11 political subdivisions comprising the port authority. 15 12 20. Receive and accept from a governmental agency grants 15 13 and loans for the construction of a port authority facility, 15 14 for research and development with respect to a port authority 15 15 facility, or any other authorized purpose, and receive and 15 16 accept aid or contributions from any source of moneys, 15 17 property, labor, or other things of value, to be held, used, 15 18 and applied only for the purposes for which the grants, loans, 15 19 aid, or contributions are made. 15 20 21. Engage in research and development with respect to a 15 21 port authority facility. 15 22 22. Purchase fire and extended coverage and liability 15 23 insurance for a port authority facility and for the principal 15 24 office and branch offices of the port authority, insurance 15 25 protecting the port authority and its officers and employees 15 26 against liability for damage to property or injury to or death 15 27 of persons arising from its operations, and any other 15 28 insurance the port authority may agree to provide under a 15 29 resolution authorizing port authority revenue bonds, pledge 15 30 orders, or in any trust agreement securing the same. 15 31 23. Charge, alter, and collect rental fees and other 15 32 charges for the use or services of a port authority facility 15 33 as provided in section 28J.16. 15 34 24. Perform all acts necessary or proper to carry out the 15 35 powers expressly granted in this chapter. 16 1 Sec. 10. NEW SECTION. 28J.10 PARTICIPATION OF PRIVATE 16 2 ENTERPRISE. 16 3 The port authority shall foster and encourage the 16 4 participation of private enterprise in the development of the 16 5 port authority facilities to the fullest extent practicable in 16 6 the interest of limiting the necessity of construction and 16 7 operation of the facilities by the port authority. 16 8 Sec. 11. NEW SECTION. 28J.11 PROVISIONS DO NOT AFFECT 16 9 OTHER LAWS OR POWERS. 16 10 This chapter shall not do any of the following: 16 11 1. Impair a provision of law directing the payment of 16 12 revenues derived from public property into sinking funds or 16 13 dedicating those revenues to specific purposes. 16 14 2. Impair the powers of a political subdivision to develop 16 15 or improve a port and terminal facility except as restricted 16 16 by section 28J.15. 16 17 3. Enlarge, alter, diminish, or affect in any way, a lease 16 18 or conveyance made, or action taken prior to the creation of a 16 19 port authority under section 28J.2 by a city or a county. 16 20 4. Impair or interfere with the exercise of a permit for 16 21 the removal of sand or gravel, or other similar permits issued 16 22 by a governmental agency. 16 23 5. Impair or contravene applicable federal regulations. 16 24 Sec. 12. NEW SECTION. 28J.12 CONVEYANCE, LEASE, OR 16 25 EXCHANGE OF PUBLIC PROPERTY. 16 26 A port authority may convey or lease, lease with an option 16 27 to purchase, or exchange with any governmental agency or other 16 28 port authority without competitive bidding and on mutually 16 29 agreeable terms, any personal or real property, or any 16 30 interest therein. 16 31 Sec. 13. NEW SECTION. 28J.13 ANNUAL BUDGET == USE OF 16 32 RENTS AND CHARGES. 16 33 The board shall annually prepare a budget for the port 16 34 authority. Revenues received by the port authority shall be 16 35 used for the general expenses of the port authority and to pay 17 1 interest, amortization, and retirement charges on money 17 2 borrowed. Except as provided in section 28J.26, if there 17 3 remains, at the end of any fiscal year, a surplus of such 17 4 funds after providing for the above uses, the board shall pay 17 5 such surplus into the general funds of the political 17 6 subdivisions comprising the port authority as agreed to by the 17 7 subdivisions. 17 8 Sec. 14. NEW SECTION. 28J.14 SECRETARY TO FURNISH BOND 17 9 == DEPOSIT AND DISBURSEMENT OF FUNDS. 17 10 Before receiving any revenues, the secretary of a port 17 11 authority shall furnish a bond in such amount as shall be 17 12 determined by the port authority with sureties satisfactory to 17 13 the port authority, and all funds coming into the hands of the 17 14 secretary shall be deposited by the secretary to the account 17 15 of the port authority in one or more such depositories as 17 16 shall be qualified to receive deposits of county funds, which 17 17 deposits shall be secured in the same manner as county funds 17 18 are required to be secured. A disbursement shall not be made 17 19 from such funds except in accordance with policies and 17 20 procedures adopted by the port authority. 17 21 Sec. 15. NEW SECTION. 28J.15 LIMITATION ON CERTAIN 17 22 POWERS OF POLITICAL SUBDIVISIONS. 17 23 A political subdivision creating or participating in the 17 24 creation of a port authority in accordance with section 28J.2 17 25 shall not, during the time the port authority is in existence, 17 26 exercise the rights and powers provided in chapters 28A, 28K, 17 27 and 384 relating to the political subdivision's authority over 17 28 a port, wharf, dock, harbor or other facility substantially 17 29 similar to that political subdivision's authority under a port 17 30 authority granted under this chapter. 17 31 Sec. 16. NEW SECTION. 28J.16 RENTALS OR CHARGES FOR USE 17 32 OR SERVICES OF FACILITIES == AGREEMENTS WITH GOVERNMENTAL 17 33 AGENCIES. 17 34 1. a. A port authority may charge, alter, and collect 17 35 rental fees or other charges for the use or services of any 18 1 port authority facility and contract for the use or services 18 2 of a facility, and fix the terms, conditions, rental fees, or 18 3 other charges for the use or services. 18 4 b. If the services are furnished in the jurisdiction of 18 5 the port authority by a utility company or a common carrier, 18 6 the port authority's charges for the services shall not be 18 7 less than the charges established for the same services 18 8 furnished by a utility company or common carrier in the port 18 9 authority jurisdiction. 18 10 c. The rental fees or other charges shall not be subject 18 11 to supervision or regulation by any other authority, 18 12 commission, board, bureau, or governmental agency of the state 18 13 and the contract may provide for acquisition of all or any 18 14 part of the port authority facility for such consideration 18 15 payable over the period of the contract or otherwise as the 18 16 port authority determines to be appropriate, but subject to 18 17 the provisions of any resolution authorizing the issuance of 18 18 port authority revenue bonds or any trust agreement securing 18 19 the bonds. 18 20 d. A governmental agency that has power to construct, 18 21 operate, and maintain a port authority facility may enter into 18 22 a contract or lease with a port authority for the use or 18 23 services of a port authority facility as may be agreed to by 18 24 the port authority and the governmental agency. 18 25 2. a. A governmental agency may cooperate with the port 18 26 authority in the acquisition or construction of a port 18 27 authority facility and shall enter into such agreements with 18 28 the port authority as may be appropriate, which shall provide 18 29 for contributions by the parties in a proportion as may be 18 30 agreed upon and other terms as may be mutually satisfactory to 18 31 the parties including the authorization of the construction of 18 32 the facility by one of the parties acting as agent for all of 18 33 the parties and the ownership and control of the facility by 18 34 the port authority to the extent necessary or appropriate. 18 35 b. A governmental agency may provide funds for the payment 19 1 of any contribution required under such agreements by the levy 19 2 of taxes or assessments if otherwise authorized by the laws 19 3 governing the governmental agency in the construction of the 19 4 type of port authority facility provided for in the 19 5 agreements, and may pay the proceeds from the collection of 19 6 the taxes or assessments; or the governmental agency may issue 19 7 bonds or notes, if authorized by law, in anticipation of the 19 8 collection of the taxes or assessments, and may pay the 19 9 proceeds of the bonds or notes to the port authority pursuant 19 10 to such agreements. 19 11 c. A governmental agency may provide the funds for the 19 12 payment of a contribution by the appropriation of moneys or, 19 13 if otherwise authorized by law, by the issuance of bonds or 19 14 notes and may pay the appropriated moneys or the proceeds of 19 15 the bonds or notes to the port authority pursuant to such 19 16 agreements. 19 17 3. When the contribution of any governmental agency is to 19 18 be made over a period of time from the proceeds of the 19 19 collection of special assessments, the interest accrued and to 19 20 accrue before the first installment of the assessments is 19 21 collected, which is payable by the governmental agency on the 19 22 contribution under the terms and provisions of the agreements, 19 23 shall be treated as part of the cost of the improvement for 19 24 which the assessments are levied, and that portion of the 19 25 assessments that is collected in installments shall bear 19 26 interest at the same rate as the governmental agency is 19 27 obligated to pay on the contribution under the terms and 19 28 provisions of the agreements and for the same period of time 19 29 as the contribution is to be made under the agreements. If 19 30 the assessment or any installment thereof is not paid when 19 31 due, it shall bear interest until the payment thereof at the 19 32 same rate as the contribution and the county auditor shall 19 33 annually place on the tax list and duplicate the interest 19 34 applicable to the assessment and the penalty thereon as 19 35 otherwise authorized by law. 20 1 4. A governmental agency, pursuant to a favorable vote in 20 2 an election regarding issuing bonds to provide funds to 20 3 acquire, construct, or equip, or provide real estate and 20 4 interests in real estate for a port authority facility, 20 5 whether or not the governmental agency at the time of the 20 6 election had the authority to pay the proceeds from the bonds 20 7 or notes issued in anticipation of the bonds to the port 20 8 authority as provided in this section, may issue such bonds or 20 9 notes in anticipation of the issuance of the bonds and pay the 20 10 proceeds of the bonds or notes to the port authority in 20 11 accordance with an agreement with the port authority; 20 12 provided, that the legislative authority of the governmental 20 13 agency finds and determines that the port authority facility 20 14 to be acquired or constructed in cooperation with the 20 15 governmental agency will serve the same public purpose and 20 16 meet substantially the same public need as the facility 20 17 otherwise proposed to be acquired or constructed by the 20 18 governmental agency with the proceeds of the bonds and notes. 20 19 Sec. 17. NEW SECTION. 28J.17 CONTRACTS, ARRANGEMENTS, 20 20 AND AGREEMENTS. 20 21 1. a. A port authority may enter into a contract or other 20 22 arrangement with a person, railroad, utility company, 20 23 corporation, governmental agency including sewerage, drainage, 20 24 conservation, conservancy, or other improvement districts in 20 25 this or other states, or the governments or agencies of 20 26 foreign countries as may be necessary or convenient for the 20 27 exercise of the powers granted by this chapter. The port 20 28 authority may purchase, lease, or acquire land or other 20 29 property in any county of this state and in adjoining states 20 30 for the accomplishment of authorized purposes of the port 20 31 authority, or for the improvement of the harbor and port 20 32 facilities over which the port authority may have jurisdiction 20 33 including development of port facilities in adjoining states. 20 34 The authority granted in this section to enter into contracts 20 35 or other arrangements with the federal government includes the 21 1 power to enter into any contracts, arrangements, or agreements 21 2 that may be necessary to hold and save harmless the United 21 3 States from damages due to the construction and maintenance by 21 4 the United States of work the United States undertakes. 21 5 b. A political subdivision that has participated in the 21 6 creation of a port authority, or is within, or adjacent to a 21 7 political subdivision that is within the jurisdiction of a 21 8 port authority, may enter into an agreement with the port 21 9 authority to accomplish any of the authorized purposes of the 21 10 port authority. The agreement may set forth the extent to 21 11 which the port authority shall act as the agent of the 21 12 political subdivision. 21 13 2. A port authority may enter into an agreement with a 21 14 contracting governmental agency, whereby the port authority or 21 15 the contracting governmental agency undertakes, and is 21 16 authorized by the port authority or a contracting governmental 21 17 agency, to exercise any power, perform any function, or render 21 18 any service, on behalf of the port authority or a contracting 21 19 governmental agency, which the port authority or the 21 20 contracting governmental agency is authorized to exercise, 21 21 perform, or render. 21 22 Sec. 18. NEW SECTION. 28J.18 REVENUE BONDS ARE LAWFUL 21 23 INVESTMENTS. 21 24 Port authority revenue bonds issued pursuant to this 21 25 chapter are lawful investments of banks, credit unions, trust 21 26 companies, savings and loan associations, deposit guaranty 21 27 associations, insurance companies, trustees, fiduciaries, 21 28 trustees or other officers having charge of the bond 21 29 retirement funds or sinking funds of port authorities and 21 30 governmental agencies, and taxing districts of this state, the 21 31 pension and annuity retirement system, the Iowa public 21 32 employees' retirement system, the police and fire retirement 21 33 systems under chapters 410 and 411, a revolving fund of a 21 34 governmental agency of this state, and are acceptable as 21 35 security for the deposit of public funds under chapter 12C. 22 1 Sec. 19. NEW SECTION. 28J.19 PROPERTY TAX EXEMPTION. 22 2 A port authority shall be exempt from and shall not be 22 3 required to pay taxes on real property belonging to a port 22 4 authority that is used exclusively for an authorized purpose 22 5 as provided in section 427.1, subsection 34. 22 6 Sec. 20. NEW SECTION. 28J.20 LOANS FOR ACQUISITION OR 22 7 CONSTRUCTION OF FACILITY == SALE OF FACILITY == POWER TO 22 8 ENCUMBER PROPERTY. 22 9 1. With respect to the financing of a facility for an 22 10 authorized purpose, under an agreement whereby the person to 22 11 whom the facility is to be leased, subleased, or sold, or to 22 12 whom a loan is to be made for the facility, is to make 22 13 payments sufficient to pay all of the principal of, premium, 22 14 and interest on the port authority revenue bonds issued for 22 15 the facility, the port authority, in addition to other powers 22 16 under this chapter, may do any of the following: 22 17 a. Make loans for the acquisition or construction of the 22 18 facility to such person upon such terms as the port authority 22 19 may determine or authorize including secured or unsecured 22 20 loans, and enter into loan agreements and other agreements, 22 21 accept notes and other forms of obligation to evidence such 22 22 indebtedness and mortgages, liens, pledges, assignments, or 22 23 other security interests to secure such indebtedness, which 22 24 may be prior or subordinate to or on a parity with other 22 25 indebtedness, obligations, mortgages, pledges, assignments, 22 26 other security interests, or liens or encumbrances, and take 22 27 actions considered appropriate to protect such security and 22 28 safeguard against losses, including, without limitation, 22 29 foreclosure and the bidding upon and purchase of property upon 22 30 foreclosure or other sale. 22 31 b. Sell the facility under terms as the port authority may 22 32 determine, including sale by conditional sale or installment 22 33 sale, under which title may pass prior to or after completion 22 34 of the facility or payment or provisions for payment of all 22 35 principal of, premium, and interest on the revenue bonds, or 23 1 at any other time provided in the agreement pertaining to the 23 2 sale, and including sale under an option to purchase at a 23 3 price which may be a nominal amount or less than true value at 23 4 the time of purchase. 23 5 c. Grant a mortgage, lien, or other encumbrance on, or 23 6 pledge or assignment of, or other security interest with 23 7 respect to, all or any part of the facility, revenues, reserve 23 8 funds, or other funds established in connection with the bonds 23 9 or with respect to a lease, sublease, sale, conditional sale 23 10 or installment sale agreement, loan agreement, or other 23 11 agreement pertaining to the lease, sublease, sale, or other 23 12 disposition of a facility or pertaining to a loan made for a 23 13 facility, or a guaranty or insurance agreement made with 23 14 respect thereto, or an interest of the port authority therein, 23 15 or any other interest granted, assigned, or released to secure 23 16 payments of the principal of, premium, or interest on the 23 17 bonds or to secure any other payments to be made by the port 23 18 authority, which mortgage, lien, encumbrance, pledge, 23 19 assignment, or other security interest may be prior or 23 20 subordinate to or on a parity with any other mortgage, 23 21 assignment, or other security interest, or lien or 23 22 encumbrance. 23 23 d. Contract for the acquisition or construction of the 23 24 facility or any part thereof and for the leasing, subleasing, 23 25 sale, or other disposition of the facility in a manner 23 26 determined by the port authority in its sole discretion, 23 27 without necessity for competitive bidding or performance 23 28 bonds. 23 29 e. Make appropriate provision for adequate maintenance of 23 30 the facility. 23 31 2. With respect to a facility referred to in this section, 23 32 the authority granted by this section is cumulative and 23 33 supplementary to all other authority granted in this chapter. 23 34 The authority granted by this section does not alter or impair 23 35 a similar authority granted elsewhere in this chapter for or 24 1 with respect to other facilities. 24 2 Sec. 21. NEW SECTION. 28J.21 ISSUANCE OF REVENUE AND 24 3 REFUNDING BONDS. 24 4 1. A port authority may issue revenue bonds and pledge 24 5 orders payable solely from the net revenues of the port 24 6 authority including the revenues generated from a facility 24 7 pursuant to section 28J.20. The revenue bonds may be issued 24 8 in such principal amounts as, in the opinion of the port 24 9 authority, are necessary for the purpose of paying the cost of 24 10 one or more port authority facilities or parts thereof. 24 11 2. a. The resolution to issue the bonds must be adopted 24 12 at a regular or special meeting of the board called for that 24 13 purpose by a majority of the total number of members of the 24 14 board. The board shall fix a date, time, and place of meeting 24 15 at which it proposes to take action, and give notice by 24 16 publication in the manner directed in section 331.305. The 24 17 notice must include a statement of the date, time, and place 24 18 of the meeting, the maximum amount of the proposed revenue 24 19 bonds, the purpose for which the revenue bonds will be issued, 24 20 and the net revenues to be used to pay the principal and 24 21 interest on the revenue bonds. 24 22 b. At the meeting the board shall receive oral or written 24 23 objections from any resident or property owner within the 24 24 jurisdiction of the port authority. After all objections have 24 25 been received and considered, the board, at the meeting or a 24 26 date to which it is adjourned, may take additional action for 24 27 the issuance of the bonds or abandon the proposal to issue 24 28 bonds. Any resident or property owner within the jurisdiction 24 29 of the port authority may appeal a decision of the board to 24 30 take additional action in district court within fifteen days 24 31 after the additional action is taken, but the additional 24 32 action of the board is final and conclusive unless the court 24 33 finds that the board exceeded its authority. 24 34 3. The board may sell revenue bonds or pledge orders at 24 35 public or private sale and may deliver revenue bonds and 25 1 pledge orders to the contractors, sellers, and other persons 25 2 furnishing materials and services constituting a part of the 25 3 cost of the port authority facility in payment therefor. The 25 4 pledge of any net revenues of a port authority is valid and 25 5 effective as to all persons including but not limited to other 25 6 governmental bodies when it becomes valid and effective 25 7 between the port authority and the holders of the revenue 25 8 bonds or pledge orders. 25 9 4. A revenue bond is valid and binding for all purposes if 25 10 it bears the signatures or a facsimile of the signature of the 25 11 officer designated by the port authority. Port authority 25 12 revenue bonds may bear dates, bear interest at rates not 25 13 exceeding those permitted by chapter 74A, bear interest at a 25 14 variable rate or rates changing from time to time in 25 15 accordance with a base or formula, mature in one or more 25 16 installments, be in registered form, carry registration and 25 17 conversion privileges, be payable as to principal and interest 25 18 at times and places, be subject to terms of redemption prior 25 19 to maturity with or without premium, and be in one or more 25 20 denominations, all as provided by the resolution of the board 25 21 authorizing their issuance. The resolution may also prescribe 25 22 additional provisions, terms, conditions, and covenants which 25 23 the port authority deems advisable, consistent with this 25 24 chapter, including provisions for creating and maintaining 25 25 reserve funds, the issuance of additional revenue bonds 25 26 ranking on a parity with such revenue bonds and additional 25 27 revenue bonds junior and subordinate to such revenue bonds, 25 28 and that such revenue bonds shall rank on a parity with or be 25 29 junior and subordinate to any revenue bonds which may be then 25 30 outstanding. Port authority revenue bonds are a contract 25 31 between the port authority and holders and the resolution is a 25 32 part of the contract. 25 33 5. The port authority may issue revenue bonds to refund 25 34 revenue bonds, pledge orders, and other obligations which are 25 35 by their terms payable from the net revenues of the same port 26 1 authority, at lower, the same, or higher rates of interest. A 26 2 port authority may sell refunding revenue bonds at public or 26 3 private sale and apply the proceeds to the payment of the 26 4 obligations being refunded, and may exchange refunding revenue 26 5 bonds in payment and discharge of the obligations being 26 6 refunded. The principal amount of refunding revenue bonds may 26 7 exceed the principal amount of the obligations being refunded 26 8 to the extent necessary to pay any premium due on the call of 26 9 the obligations being refunded and to fund interest accrued 26 10 and to accrue on the obligations being refunded. 26 11 6. The final maturity of any original issue of port 26 12 authority revenue bonds shall not exceed forty years from the 26 13 date of issue, and the final maturity of port authority 26 14 revenue bonds that refund outstanding port authority revenue 26 15 bonds shall not be later than the later of forty years from 26 16 the date of issue of the original issue of bonds or the date 26 17 by which it is expected, at the time of issuance of the 26 18 refunding bonds, that the useful life of all of the property 26 19 refinanced with the proceeds of the bonds, other than 26 20 interests in land, will have expired. Such bonds or notes 26 21 shall be executed in a manner as the resolution may provide. 26 22 7. The port authority may contract to pay an amount not to 26 23 exceed ninety=five percent of the engineer's estimated value 26 24 of the acceptable work completed during the month to the 26 25 contractor at the end of each month for work, material, or 26 26 services. Payment may be made in warrants drawn on any fund 26 27 from which payment for the work may be made. If such funds 26 28 are depleted, anticipatory warrants may be issued bearing a 26 29 rate of interest not exceeding that permitted by chapter 74A 26 30 even if income from the sale of bonds which have been 26 31 authorized and are applicable to the public improvement takes 26 32 place after the fiscal year in which the warrants are issued. 26 33 If the port authority arranges for the private sale of 26 34 anticipatory warrants, the warrants may be sold and the 26 35 proceeds used to pay the contractor. The warrants may also be 27 1 used to pay other persons furnishing services constituting a 27 2 part of the cost of the public improvement. 27 3 8. Port authority revenue bonds, pledge orders, and 27 4 warrants issued under this section are negotiable instruments. 27 5 9. The board may issue pledge orders pursuant to a 27 6 resolution adopted by a majority of the total number of 27 7 supervisors, at a regular or special meeting, ordering their 27 8 issuance and delivery in payment for all or part of the cost 27 9 of a project. Pledge orders may bear interest at rates not 27 10 exceeding those permitted by chapter 74A. 27 11 10. Except as provided in section 28J.20, the physical 27 12 properties of the port authority shall not be pledged or 27 13 mortgaged to secure the payment of revenue bonds, pledge 27 14 orders, or refunding bonds, or the interest thereon. 27 15 11. The members of the board of the port authority and any 27 16 person executing the bonds or pledge orders shall not be 27 17 personally liable on the bonds or pledge orders or be subject 27 18 to any personal liability or accountability by reason of the 27 19 issuance thereof. 27 20 Sec. 22. NEW SECTION. 28J.22 BONDS MAY BE SECURED BY 27 21 TRUST AGREEMENT. 27 22 1. In the discretion of the port authority, a port 27 23 authority revenue bond issued under this chapter may be 27 24 secured by a trust agreement between the port authority and a 27 25 corporate trustee that may be any trust company or bank having 27 26 the powers of a trust company within this or any other state. 27 27 2. The trust agreement may pledge or assign revenues of 27 28 the port authority to be received for payment of the revenue 27 29 bonds. The trust agreement or any resolution providing for 27 30 the issuance of revenue bonds may contain provisions for 27 31 protecting and enforcing the rights and remedies of the 27 32 bondholders as are reasonable and proper and not in violation 27 33 of law, including covenants setting forth the duties of the 27 34 port authority in relation to the acquisition of property, the 27 35 construction, improvement, maintenance, repair, operation, and 28 1 insurance of the port authority facility in connection with 28 2 which the bonds are authorized, the rentals or other charges 28 3 to be imposed for the use or services of any port authority 28 4 facility, the custody, safeguarding, and application of all 28 5 moneys, and provisions for the employment of consulting 28 6 engineers in connection with the construction or operation of 28 7 any port authority facility. 28 8 3. A bank or trust company incorporated under the laws of 28 9 this state, that may act as the depository of the proceeds of 28 10 bonds or of revenues, shall furnish any indemnifying bonds or 28 11 may pledge any securities that are required by the port 28 12 authority. The trust agreement may set forth the rights and 28 13 remedies of the bondholders and of the trustee, and may 28 14 restrict the individual right of action by bondholders as is 28 15 customary in trust agreements or trust indentures securing 28 16 similar bonds. The trust agreement may contain any other 28 17 provisions that the port authority determines reasonable and 28 18 proper for the security of the bondholders. All expenses 28 19 incurred in carrying out the provisions of the trust agreement 28 20 may be treated as a part of the cost of the operation of the 28 21 port authority facility. 28 22 Sec. 23. NEW SECTION. 28J.23 REMEDY OF HOLDER OF BOND OR 28 23 COUPON == STATUTE OF LIMITATIONS. 28 24 1. The sole remedy for a breach or default of a term of a 28 25 port authority revenue bond or pledge order is a proceeding in 28 26 law or in equity by suit, action, or mandamus to enforce and 28 27 compel performance of the duties required by this chapter and 28 28 of the terms of the resolution authorizing the issuance of the 28 29 revenue bonds or pledge orders, or to obtain the appointment 28 30 of a receiver to take possession of and operate the port 28 31 authority, and to perform the duties required by this chapter 28 32 and the terms of the resolution authorizing the issuance of 28 33 the port authority revenue bonds or pledge orders. 28 34 2. An action shall not be brought which questions the 28 35 legality of port authority revenue bonds or pledge orders, the 29 1 power of a port authority to issue revenue bonds or pledge 29 2 orders, or the effectiveness of any proceedings relating to 29 3 the authorization and issuance of revenue bonds or pledge 29 4 orders, from and after fifteen days from the time the bonds or 29 5 pledge orders are ordered issued by the port authority. 29 6 Sec. 24. NEW SECTION. 28J.24 BONDS ARE PAYABLE SOLELY 29 7 FROM REVENUES AND FUNDS PLEDGED FOR PAYMENT. 29 8 Port authority revenue bonds and pledge orders issued under 29 9 this chapter do not constitute a debt, or a pledge of the 29 10 faith and credit, of the state or a political subdivision of 29 11 the state, and the holders or owners of the bonds or pledge 29 12 orders shall not have taxes levied by the state or by a taxing 29 13 authority of a governmental agency of the state for the 29 14 payment of the principal of or interest on the bonds or pledge 29 15 orders, but the bonds and pledge orders are payable solely 29 16 from the revenues and funds pledged for their payment as 29 17 authorized by this chapter, unless the notes are issued in 29 18 anticipation of the issuance of bonds or pledge orders or the 29 19 bonds and pledge orders are refunded by refunding bonds issued 29 20 under this chapter, which bonds, pledge orders, or refunding 29 21 bonds shall be payable solely from revenues and funds pledged 29 22 for their payment as authorized by those sections. All of the 29 23 bonds or pledge orders shall contain a statement to the effect 29 24 that the bonds or pledge orders, as to both principal and 29 25 interest, are not debts of the state or a political 29 26 subdivision of the state, but are payable solely from revenues 29 27 and funds pledged for their payment. 29 28 Sec. 25. NEW SECTION. 28J.25 FUNDS AND PROPERTY HELD IN 29 29 TRUST == USE AND DEPOSIT OF FUNDS. 29 30 All revenues, funds, properties, and assets acquired by the 29 31 port authority under this chapter, whether as proceeds from 29 32 the sale of port authority revenue bonds, pledge orders, or as 29 33 revenues, shall be held in trust for the purposes of carrying 29 34 out the port authority's powers and duties, shall be used and 29 35 reused as provided in this chapter, and shall at no time be 30 1 part of other public funds. Such funds, except as otherwise 30 2 provided in a resolution authorizing port authority revenue 30 3 bonds or in a trust agreement securing the same, or except 30 4 when invested pursuant to section 28J.26, shall be kept in 30 5 depositories selected by the port authority in the manner 30 6 provided in chapter 12C, and the deposits shall be secured as 30 7 provided in that chapter. The resolution authorizing the 30 8 issuance of revenue bonds or pledge orders, or the trust 30 9 agreement securing such bonds or pledge orders shall provide 30 10 that any officer to whom, or any bank or trust company to 30 11 which, such moneys are paid shall act as trustee of such 30 12 moneys and hold and apply them for the purposes hereof, 30 13 subject to such conditions as this chapter and such resolution 30 14 or trust agreement provide. 30 15 Sec. 26. NEW SECTION. 28J.26 INVESTMENT OF EXCESS FUNDS. 30 16 1. If a port authority has surplus funds after making all 30 17 deposits into all funds required by the terms, covenants, 30 18 conditions, and provisions of outstanding revenue bonds, 30 19 pledge orders, and refunding bonds which are payable from the 30 20 revenues of the port authority and after complying with all of 30 21 the requirements, terms, covenants, conditions, and provisions 30 22 of the proceedings and resolutions pursuant to which revenue 30 23 bonds, pledge orders, and refunding bonds are issued, the 30 24 board may transfer the surplus funds to any other fund of the 30 25 port authority in accordance with this chapter and chapter 30 26 12C, provided that a transfer shall not be made if it 30 27 conflicts with any of the requirements, terms, covenants, 30 28 conditions, or provisions of a resolution authorizing the 30 29 issuance of revenue bonds, pledge orders, or other obligations 30 30 which are payable from the revenues of the port authority 30 31 which are then outstanding. 30 32 2. This section does not prohibit or prevent the board 30 33 from using funds derived from any other source which may be 30 34 properly used for such purpose, to pay a part of the cost of a 30 35 facility. 31 1 Sec. 27. NEW SECTION. 28J.27 CHANGE IN LOCATION OF 31 2 PUBLIC WAY, RAILROAD, OR UTILITY FACILITY == VACATION OF 31 3 HIGHWAY. 31 4 1. When a port authority changes the location of any 31 5 portion of any public road, railroad, or utility facility in 31 6 connection with the construction of a port authority facility, 31 7 the port authority shall reconstruct at such location as the 31 8 governmental agency having jurisdiction over such road, 31 9 railroad, or utility facility finds most favorable. The 31 10 construction of such road, railroad, or utility facility shall 31 11 be of substantially the same type and in as good condition as 31 12 the original road, railroad, or utility facility. The cost of 31 13 such reconstruction, relocation, or removal and any damage 31 14 incurred in changing the location of any such road, railroad, 31 15 or utility facility shall be paid by the port authority as a 31 16 part of the cost of the port authority facility. 31 17 2. When the port authority finds it necessary that a 31 18 public highway or portion of a public highway be vacated by 31 19 reason of the acquisition or construction of a port authority 31 20 facility, the port authority may request the director of the 31 21 department of transportation to vacate such highway or portion 31 22 in accordance with chapter 306 if the highway or portion to be 31 23 vacated is on the state highway system, or, if the highway or 31 24 portion to be vacated is under the jurisdiction of a county, 31 25 the port authority shall petition the board of supervisors of 31 26 that county, in the manner provided in chapter 306, to vacate 31 27 such highway or portion. The port authority shall pay to the 31 28 county, as a part of the cost of such port authority facility, 31 29 any amounts required to be deposited with a court in 31 30 connection with proceedings for the determination of 31 31 compensation and damages and all amounts of compensation and 31 32 damages finally determined to be payable as a result of such 31 33 vacation. 31 34 3. The port authority may adopt bylaws for the 31 35 installation, construction, maintenance, repair, renewal, 32 1 relocation, and removal of railroad or utility facilities in, 32 2 on, over, or under any port authority facility. Whenever the 32 3 port authority determines that it is necessary that any such 32 4 facility installed or constructed in, on, over, or under 32 5 property of the port authority pursuant to such bylaws be 32 6 relocated, the utility company owning or operating such 32 7 facility shall relocate or remove them in accordance with the 32 8 order of the port authority. The cost and expenses of such 32 9 relocation or removal, including the cost of installing such 32 10 facility in a new location, the cost of any lands, or any 32 11 rights or interests in lands, and any other rights, acquired 32 12 to accomplish such relocation or removal, shall be paid by the 32 13 port authority as a part of the cost of the port authority 32 14 facility. In case of any such relocation or removal of such 32 15 facilities, the railroad or utility company owning or 32 16 operating them, its successors, or assigns may maintain and 32 17 operate such facilities, with the necessary appurtenances, in 32 18 the new location in, on, over, or under the property of the 32 19 port authority for as long a period and upon the same terms as 32 20 the railroad or utility company had the right to maintain and 32 21 operate such facilities in their former location. 32 22 Sec. 28. NEW SECTION. 28J.28 FINAL ACTIONS TO BE 32 23 RECORDED == ANNUAL REPORT == CONFIDENTIALITY OF INFORMATION. 32 24 1. All final actions of the port authority shall be 32 25 recorded and the records of the port authority shall be open 32 26 to public examination and copying pursuant to chapter 22. Not 32 27 later than the first day of April every year, a port authority 32 28 shall submit a report to the director of the department of 32 29 economic development detailing the projects and activities of 32 30 the port authority during the previous calendar year. The 32 31 report shall include, but not be limited to, all aspects of 32 32 those projects and activities, including the progress and 32 33 status of the projects and their costs, and any other 32 34 information the director determines should be included in the 32 35 report. 33 1 2. Financial and proprietary information, including trade 33 2 secrets, submitted to a port authority or the agents of a port 33 3 authority, in connection with the relocation, location, 33 4 expansion, improvement, or preservation of a business or 33 5 nonprofit corporation is not a public record subject to 33 6 chapter 22. Any other information submitted under those 33 7 circumstances is not a public record subject to chapter 22 33 8 until there is a commitment in writing to proceed with the 33 9 relocation, location, expansion, improvement, or preservation. 33 10 3. Notwithstanding chapter 21, the board of directors of a 33 11 port authority, when considering information that is not a 33 12 public record under this section, may close a meeting during 33 13 the consideration of that information pursuant to a vote of 33 14 the majority of the directors present on a motion stating that 33 15 such information is to be considered. Other matters shall not 33 16 be considered during the closed session. 33 17 Sec. 29. NEW SECTION. 28J.29 PROVISIONS TO BE LIBERALLY 33 18 CONSTRUED. 33 19 This chapter shall be liberally construed to effect the 33 20 chapter's purposes. 33 21 Sec. 30. Section 427.1, Code 2005, is amended by adding 33 22 the following new subsection: 33 23 NEW SUBSECTION. 34. PORT AUTHORITY PROPERTY. The 33 24 property of a port authority created pursuant to section 33 25 28J.2, when devoted to public use and not held for pecuniary 33 26 profit. 33 27 HF 835 33 28 kk:rj/es/25