H.F. _____ Section 1. Section 26.2, subsection 2, Code 2019, is amended 1 to read as follows: 2 2. “Governmental entity” means the state, political 3 subdivisions of the state, public school corporations, and all 4 officers, boards, or commissions empowered by law to enter 5 into contracts for the construction of public improvements, 6 excluding the state board of regents and the state department 7 of transportation. 8 Sec. 2. Section 26.7, subsection 2, Code 2019, is amended 9 to read as follows: 10 2. The notice to bidders may shall provide that bids will 11 be received for the furnishing of all labor and materials and 12 furnishing or installing equipment under one contract , or . The 13 notice may also provide that bids will be received for parts 14 thereof in separate sections. 15 Sec. 3. Section 262.34, Code 2019, is amended by striking 16 the section and inserting in lieu thereof the following: 17 262.34 Lease-purchase contracts. 18 A contract for construction by a private party of property to 19 be lease-purchased by the state board of regents is a contract 20 for a public improvement under section 26.2, subsection 3. If 21 the estimated cost of the property to be lease-purchased that 22 is renovated, repaired, or involves new construction exceeds 23 the competitive bid threshold set in section 26.3, the state 24 board of regents shall comply with the competitive bidding 25 requirements of section 26.3. 26 Sec. 4. Section 262.56, Code 2019, is amended to read as 27 follows: 28 262.56 Authorization —— contracts —— title. 29 Subject to and in accordance with the provisions of this 30 subchapter the state board of regents is hereby authorized 31 to undertake and carry out any project as defined in section 32 262.55 at the state university of Iowa, Iowa state university 33 of science and technology, and the university of northern 34 Iowa and to operate, control, maintain and manage student 35 -1- LSB 1537YC (3) 88 js/rn 1/ 4

H.F. _____ residence halls and dormitories, including dining and other 1 incidental facilities, and additions to such buildings at each 2 of said institutions. All contracts for the construction, 3 reconstruction, completion, equipment, improvement, repair or 4 remodeling of any buildings, additions or facilities shall be 5 let in accordance with the provisions of section 262.34 chapter 6 26 . The title to all real estate acquired under the provisions 7 of this subchapter and the improvements erected thereon shall 8 be taken and held in the name of the state of Iowa. The board 9 is authorized to rent the rooms in such residence halls and 10 dormitories to the students, officers, guests and employees 11 of said institutions at such rates, fees or rentals as will 12 provide a reasonable return upon the investment, but which will 13 in any event produce net rents, profits and income sufficient 14 to insure the payment of the principal of and interest on all 15 bonds or notes issued to pay any part of the cost of any project 16 and refunding bonds or notes issued pursuant to the provisions 17 of this subchapter . 18 Sec. 5. Section 262A.4, Code 2019, is amended to read as 19 follows: 20 262A.4 Authorization of general assembly and governor. 21 Subject to and in accordance with the provisions of this 22 chapter , the state board of regents after authorization by a 23 constitutional majority of each house of the general assembly 24 and approval by the governor may undertake and carry out any 25 project as defined in this chapter at the institutions now 26 or hereafter under the jurisdiction of the board. The state 27 board of regents is authorized to operate, control, maintain, 28 and manage buildings and facilities and additions to such 29 buildings and facilities at each of said institutions. All 30 contracts for the construction, reconstruction, completion, 31 equipment, improvement, repair or remodeling of any buildings, 32 additions, or facilities shall be let in accordance with the 33 provisions of section 262.34 chapter 26 . The title to all real 34 estate acquired under the provisions of this chapter and the 35 -2- LSB 1537YC (3) 88 js/rn 2/ 4

H.F. _____ improvements erected thereon shall be taken and held in the 1 name of the state of Iowa. 2 Sec. 6. Section 263A.2, Code 2019, is amended to read as 3 follows: 4 263A.2 Authorization of general assembly and governor. 5 Subject to and in accordance with the provisions of this 6 chapter , the state board of regents may undertake and carry out 7 any project as defined in this chapter at the state university 8 of Iowa. The state board of regents is authorized to operate, 9 control, maintain, and manage buildings and facilities and 10 additions to such buildings and facilities at said institution. 11 All contracts for the construction, reconstruction, completion, 12 equipment, improvement, repair, or remodeling of any buildings, 13 additions, or facilities shall be let in accordance with the 14 provisions of section 262.34 chapter 26 . The title to all real 15 estate acquired under the provisions of this chapter and the 16 improvements erected thereon shall be taken and held in the 17 name of the state of Iowa. 18 Sec. 7. Section 314.1, subsection 2, Code 2019, is amended 19 to read as follows: 20 2. Notwithstanding any other provision of law to the 21 contrary, a public improvement that involves the construction, 22 reconstruction, or improvement of a highway, bridge, or culvert 23 and that has a cost in excess of the applicable threshold 24 in section 73A.18 , 262.34 , 297.7 , 309.40 , 310.14 , or 313.10 , 25 as modified by the bid threshold subcommittee pursuant to 26 section 314.1B , shall be advertised and let for bid, except 27 such public improvements that involve emergency work pursuant 28 to section 309.40A , 313.10 , or 384.103, subsection 2 . For a 29 city having a population of fifty thousand or less, a public 30 improvement that involves the construction, reconstruction, or 31 improvement of a highway, bridge, or culvert that has a cost 32 in excess of twenty-five thousand dollars, as modified by the 33 bid threshold subcommittee pursuant to section 314.1B , shall be 34 advertised and let for bid, excluding emergency work. However, 35 -3- LSB 1537YC (3) 88 js/rn 3/ 4

H.F. _____ a public improvement that has an estimated total cost to a 1 city in excess of a threshold of fifty thousand dollars, as 2 modified by the bid threshold subcommittee pursuant to section 3 314.1B , and that involves the construction, reconstruction, 4 or improvement of a highway, bridge, or culvert that is under 5 the jurisdiction of a city with a population of more than 6 fifty thousand, shall be advertised and let for bid. Cities 7 required to competitively bid highway, bridge, or culvert work 8 shall do so in compliance with the contract letting procedures 9 of sections 26.3 through 26.12 . The state board of regents 10 shall competitively bid highway, bridge, or culvert work in 11 compliance with the contract letting procedures of sections 12 26.3 through 26.12. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 Under current law, the state board of regents is not included 17 in the definition of “governmental entity” for purposes of 18 Code chapter 26, which governs public construction bidding 19 procedures. Additionally, current law gives governmental 20 entities the option of including on a notice to bidders whether 21 the proposed bid will be for the furnishing of all labor and 22 materials and furnishing or installing equipment under one 23 contract or for parts thereof in separate sections. 24 This bill eliminates the exclusion of the state board of 25 regents from the definition of “governmental entity”. The 26 bill makes conforming changes to reflect the changed bidding 27 procedures for the state board of regents. The bill also 28 requires a notice to bidders to provide that bids will be 29 received for the furnishing of all labor and materials and 30 furnishing or installing equipment under one contract. In 31 addition, a governmental entity may also include in the notice 32 that bids will be received for parts of a project in separate 33 sections. 34 -4- LSB 1537YC (3) 88 js/rn 4/ 4