Senate Study Bill 3115 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON SMITH) A BILL FOR An Act relating to public bidding. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 5472XC (5) 88 ec/rn

S.F. _____ DIVISION I 1 SALE OF PUBLIC REAL PROPERTY 2 Section 1. Section 8A.321, subsection 8, Code 2020, is 3 amended to read as follows: 4 8. With the authorization of a constitutional majority 5 of each house of the general assembly and approval by the 6 governor, dispose of real property belonging to the state and 7 its state agencies upon terms, conditions, and consideration 8 as the director may recommend. Disposition of real property 9 under this subsection shall be made under a procedure whereby 10 the real property shall be sold to the highest responsive, 11 responsible bidder, unless the executive council, by at least a 12 two-thirds vote, agrees to accept a different bidder for good 13 cause. If real property subject to sale under this subsection 14 has been purchased or acquired from appropriated funds, the 15 proceeds of the sale shall be deposited with the treasurer of 16 state and credited to the general fund of the state or other 17 fund from which appropriated. There is appropriated from that 18 same fund, with the prior approval of the executive council and 19 in cooperation with the director, a sum equal to the proceeds 20 so deposited and credited to the state agency to which the 21 disposed real property belonged or by which it was used, for 22 purposes of the state agency. 23 Sec. 2. Section 297.22, subsection 1, paragraph a, Code 24 2020, is amended to read as follows: 25 a. The board of directors of a school district may sell, 26 lease, or dispose of, in whole or in part, a schoolhouse, 27 school site, or other property belonging to the district. The 28 board shall sell real property to the highest responsive, 29 responsible bidder unless the board, by at least a two-thirds 30 vote, agrees to accept a different bidder for good cause. If 31 the real property contains less than two acres, is located 32 outside of a city, is not adjacent to a city, and was 33 previously used as a schoolhouse site, the procedure contained 34 in sections 297.15 through 297.20 shall be followed in lieu of 35 -1- LSB 5472XC (5) 88 ec/rn 1/ 4

S.F. _____ this section . 1 Sec. 3. Section 331.361, subsection 2, Code 2020, is amended 2 by adding the following new paragraph: 3 NEW PARAGRAPH . 0a. The board shall dispose of real property 4 under a procedure whereby real property shall be sold to the 5 highest responsive, responsible bidder unless the board, by at 6 least a two-thirds vote, agrees to accept a different bidder 7 for good cause. 8 Sec. 4. Section 359.52, subsection 1, Code 2020, is amended 9 by adding the following new paragraph: 10 NEW PARAGRAPH . 0a. The board of trustees shall dispose of 11 real property under a procedure whereby real property shall 12 be sold to the highest responsive, responsible bidder unless 13 the board, by at least a two-thirds vote, agrees to accept a 14 different bidder for good cause. 15 Sec. 5. Section 364.7, Code 2020, is amended by adding the 16 following new subsection: 17 NEW SUBSECTION . 01. The council shall dispose of real 18 property under a procedure whereby real property shall be 19 sold to the highest responsive, responsible bidder unless the 20 council, by at least a two-thirds vote, agrees to accept a 21 different bidder for good cause. 22 DIVISION II 23 ADVERTISEMENTS FOR BIDS 24 Sec. 6. Section 73.2, Code 2020, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION . 3. In addition to any method of 27 advertisement required by law, any executive branch agency, the 28 general assembly, the judicial branch, county, township, school 29 district, or city shall ensure publication of any request for 30 bids and proposals for the following minimum number of days: 31 a. For requests for bids and proposals of twenty-five 32 thousand dollars or less, three business days. 33 b. For requests for bids and proposals of more than 34 twenty-five thousand dollars, five business days. 35 -2- LSB 5472XC (5) 88 ec/rn 2/ 4

S.F. _____ c. For requests for bids and proposals on a public 1 construction project, two business days. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill concerns public bidding requirements for the state 6 and political subdivisions of the state. 7 DIVISION I —— SALE OF PUBLIC REAL PROPERTY. This division 8 concerns requirements relating to the disposition of public 9 real property. 10 Code section 8A.321, concerning physical resources of 11 state government, is amended to provide that if real property 12 belonging to the state is disposed of, the disposition shall 13 be made under a procedure where the property shall be sold to 14 the highest responsive, responsible bidder unless the executive 15 council, by at least a two-thirds vote, agrees to accept a 16 different bidder for good cause. 17 Code section 297.22, concerning disposition of property of 18 a school district, Code section 331.361, concerning county 19 property, Code section 359.52, concerning disposal of property 20 by a township, and Code section 364.7, concerning disposal of 21 property by a city, are amended to provide that the governing 22 body of the school, county, or city shall sell real property 23 to the highest responsive, responsible bidder unless the 24 governing body, by at least a two-thirds vote, agrees to accept 25 a different bidder for good cause. 26 DIVISION II —— ADVERTISEMENT OF BIDS. Code section 73.2, 27 concerning advertisements for bids, is amended to provide that 28 in addition to any method of advertisement required by law, any 29 executive branch agency, the general assembly, the judicial 30 branch, county, township, school district, or city shall ensure 31 publication of any request for bids and proposals for a certain 32 minimum number of days as specified by the bill. The bill 33 requires publication for three business days for requests for 34 bids and proposals of $25,000 or less, five business days for 35 -3- LSB 5472XC (5) 88 ec/rn 3/ 4

S.F. _____ requests for bids and proposals of more than $25,000, and two 1 business days for requests for bids and proposals on a public 2 construction project. 3 -4- LSB 5472XC (5) 88 ec/rn 4/ 4