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Senate Study Bill 2210

Conference Committee Text

PAG LIN
  1  1    Section 1.  Section 18.8, unnumbered paragraph 1, Code
  1  2 1995, is amended to read as follows:
  1  3    The director shall provide necessary voice or data
  1  4 communications, including telephone, and telegraph, lighting,
  1  5 fuel, and water services for the state buildings and grounds
  1  6 located at the seat of government, except the buildings and
  1  7 grounds referred to in section 216B.3, subsection 6.
  1  8    Sec. 2.  Section 18.12, subsection 3, Code Supplement 1995,
  1  9 is amended to read as follows:
  1 10    3.  Institute, in the name of the state, and with the
  1 11 advice and consent of the attorney general, civil and criminal
  1 12 proceedings against any person for injury or threatened injury
  1 13 to any public property, including but not limited to
  1 14 intangible and intellectual property, under the person's
  1 15 control.
  1 16    Sec. 3.  Section 18.12, subsection 8, Code Supplement 1995,
  1 17 is amended to read as follows:
  1 18    8.  Dispose of all personal property of the state under the
  1 19 director's control when it becomes unnecessary or unfit for
  1 20 further use by the state.  If the director concludes that the
  1 21 property has little value, the director may dispose of the
  1 22 personal property by means other than by sale.  If the
  1 23 director concludes that the personal property is contaminated,
  1 24 contains hazardous waste, or is hazardous waste, the director
  1 25 may charge the state agency responsible for the property for
  1 26 removal and disposal of the personal property.
  1 27    The director may dispose of personal property by any of the
  1 28 following means:
  1 29    a.  The director may dispose of unfit or unnecessary
  1 30 personal property by sale.  Proceeds from the sale of personal
  1 31 property shall be deposited in the state general fund of the
  1 32 state.
  1 33    b.  If the director concludes that the personal property
  1 34 has little or no value, the director may enter into an
  1 35 agreement with a not-for-profit organization or governmental
  2  1 agency to dispose of the personal property.  The not-for-
  2  2 profit organization or governmental agency may charge the
  2  3 state agency in control of the property with the cost of
  2  4 removing and transporting the property.  Title to the personal
  2  5 property shall transfer when the personal property is in the
  2  6 possession of the not-for-profit organization of governmental
  2  7 agency.  If a governmental agency adds value to the property
  2  8 transferred to it and sells it, the proceeds from the sale
  2  9 shall be deposited with the governmental agency and not in the
  2 10 general fund of the state.
  2 11    The director shall adopt rules establishing the procedures
  2 12 for inspecting, selecting, and removing personal property from
  2 13 state agencies or from state storage.
  2 14    Sec. 4.  Section 18.12, subsection 10, Code Supplement
  2 15 1995, is amended to read as follows:
  2 16    10.  On behalf of the department, enter into lease-purchase
  2 17 contracts agreements for real or personal property, wherever
  2 18 located within the state, to be used for buildings,
  2 19 facilities, and structures, or for additions or improvements
  2 20 to existing buildings, facilities, and structures, to carry
  2 21 out the provisions of this section or for the proper use and
  2 22 benefit of the state and its state agencies on the following
  2 23 terms and conditions:
  2 24    a.  The director shall coordinate the location, design,
  2 25 plans and specifications, construction, and ultimate use of
  2 26 the real or personal property lease-purchased with the state
  2 27 agency for whose benefit and use the property is being
  2 28 obtained and the terms and conditions of the lease-purchase
  2 29 contract agreement with both the state agency for whose
  2 30 benefit and use the property is being obtained and the
  2 31 treasurer of state.  Upon awarding the contract for
  2 32 construction of a building or for site development, the
  2 33 director shall have sole authority to administer the contract.
  2 34    b.  The lease-purchase contract agreement may provide for
  2 35 ultimate ownership of the property by the state.  Title to all
  3  1 property acquired in this manner shall be taken and held in
  3  2 the name of the state.  The state shall be the lessee or
  3  3 contracting party under all lease-purchase contracts
  3  4 agreements entered into pursuant to this section.  The lease-
  3  5 purchase contract may contain provisions similar to provisions
  3  6 customarily found in lease-purchase contracts between private
  3  7 persons, including, but not limited to, provisions prohibiting
  3  8 the acquisition or use by the lessee of competing property or
  3  9 property in substitution for the lease-purchased property,
  3 10 obligating the lessee to pay costs of operation, maintenance,
  3 11 insurance, and taxes relating to the property, and permitting
  3 12 the lessor to retain a security interest in the property
  3 13 lease-purchased, until title passes to the state, which may be
  3 14 assigned or pledged by the lessor.  The lease-purchase
  3 15 agreement may contain provisions providing for interest, the
  3 16 term of the agreement, and payment obligations on the lease-
  3 17 purchase agreement beyond the current budget year.  For the
  3 18 purpose of funding the state's obligation to pay moneys under
  3 19 the lease-purchase agreements created in this subsection, the
  3 20 treasurer of state may enter into master lease agreements to
  3 21 borrow moneys to purchase property, equipment, and services
  3 22 for state agencies.  The obligations in a master lease
  3 23 agreement may be in such form, for such term, bearing such
  3 24 interest, and containing such provisions as the director, with
  3 25 the assistance of the treasurer of state, deems necessary or
  3 26 appropriate.  The director may contract for additional
  3 27 security or liquidity for a lease-purchase contract agreement
  3 28 and may enter into agreements for letters of credit, lines of
  3 29 credit, insurance, or other forms of security with respect to
  3 30 rental and other payments due under a lease-purchase contract
  3 31 agreement.  Fees for the costs of additional security or
  3 32 liquidity are a cost of entering into the lease-purchase
  3 33 contract agreement and may be paid from funds annually
  3 34 appropriated by the general assembly to the state agency for
  3 35 which the property is being obtained or from other funds
  4  1 legally available.  The lease-purchase contract agreement may
  4  2 include the costs of entering into the lease-purchase contract
  4  3 agreement as a cost of the lease-purchased property.  The
  4  4 provision of a lease-purchase contract agreement which
  4  5 provides that a portion of the periodic rental payment be
  4  6 applied as interest is subject to chapter 74A.  Other laws
  4  7 relating to interest rates do not apply.  Chapter 75 does not
  4  8 apply to lease-purchase contracts agreements entered into
  4  9 pursuant to this section subsection.  Rental and other costs
  4 10 due under lease-purchase contracts agreements entered into
  4 11 pursuant to this section subsection shall be payable from
  4 12 funds annually appropriated by the general assembly to the
  4 13 state agency for which the property is being obtained or from
  4 14 other funds legally available.  Funds remaining after the
  4 15 payment of all obligations concerning a lease-purchase
  4 16 agreement shall be paid into the general fund of the state.
  4 17    c.  A lease-purchase contract agreement to which the state
  4 18 is a party is an obligation of a state for purposes of
  4 19 chapters 502 and 636, and is a lawful investment for banks,
  4 20 trust companies, building and loan associations, savings and
  4 21 loan associations, investment companies, insurance companies,
  4 22 insurance associations, executors, guardians, trustees, and
  4 23 other fiduciaries responsible for the investment of funds.
  4 24    d. (1)  The director shall not enter into lease-purchase
  4 25 contracts pursuant to this section an agreement for the lease-
  4 26 purchase or improvement of property, equipment, or services in
  4 27 an amount greater than one million dollars without prior
  4 28 authorization by a constitutional majority of each house of
  4 29 the general assembly or approval by the legislative council if
  4 30 the general assembly is not in session and approval by the
  4 31 governor of the use, location, and maximum cost, not including
  4 32 interest expense, of the real or personal property to be
  4 33 lease-purchased.
  4 34    (2)  However, the The director shall not enter into a
  4 35 lease-purchase contract agreement for real or personal
  5  1 property which is to be constructed for use as a prison or
  5  2 prison-related facility without prior authorization by a
  5  3 constitutional majority of each house of the general assembly
  5  4 and approval by the governor of the use, location, and maximum
  5  5 cost, not including interest expense, of the real or personal
  5  6 property to be lease-purchased and with the construction in
  5  7 accordance with space needs as established by an independent
  5  8 study of space needs authorized by the general assembly.
  5  9    e. d.  A contract for acquisition, construction, erection,
  5 10 demolition, alteration, or repair by a private person of real
  5 11 or personal property to be lease-purchased by the director
  5 12 pursuant to this section subsection is exempt from section
  5 13 18.6, subsections 1 and 9, unless the lease-purchase contract
  5 14 agreement is funded in advance by a deposit of the lessor's
  5 15 moneys to be administered by the director under a lease-
  5 16 purchase contract agreement which requires rent payments to
  5 17 commence upon delivery of the lessor's moneys to the lessee.
  5 18    This subsection provides an alternative and independent
  5 19 method for carrying out projects under this chapter and for
  5 20 entering into lease-purchase contracts agreements in
  5 21 connection with the projects, without reference to any other
  5 22 statute, and is not an amendment of or subject to the
  5 23 provision of any other law.  No publication of any notice,
  5 24 whether under section 73A.12 or otherwise, and no other or
  5 25 further proceedings with respect to the lease-purchase
  5 26 contracts agreements referred to in this section subsection
  5 27 are required except as set forth in this section subsection,
  5 28 any provisions of other statutes of the state to the contrary
  5 29 notwithstanding.
  5 30    For purposes of this subsection and subsection 12, "state
  5 31 agency" means a board, commission, bureau, division, office,
  5 32 department, or branch of state government.
  5 33    Sec. 5.  Section 18.12, Code Supplement 1995, is amended by
  5 34 adding the following new subsection:
  5 35    NEW SUBSECTION.  18A.  Establish a maintenance account in
  6  1 the state treasury under the control of the department.  Funds
  6  2 for the maintenance of a state monument, whether received by
  6  3 gift, devise, bequest, or otherwise, shall be deposited in the
  6  4 account.  Funds in the account shall be deposited in an
  6  5 interest-bearing account.  Notwithstanding section 12C.7,
  6  6 interest earned on the account shall be deposited in the
  6  7 account and shall be used to maintain the designated monument.
  6  8 Any maintenance funds for a state monument held by the state
  6  9 as of the date of the enactment of this provision shall
  6 10 immediately be transferred to the account and the funds and
  6 11 interest earned on the funds shall be used to maintain the
  6 12 designated monument.  Notwithstanding section 8.33,
  6 13 unencumbered or unobligated receipts in the maintenance
  6 14 account at the end of a fiscal year shall not revert to the
  6 15 general fund of the state.
  6 16    Sec. 6.  Section 18.115, subsection 11, Code 1995, is
  6 17 amended to read as follows:
  6 18    11.  The state vehicle dispatcher is responsible for
  6 19 insuring motor vehicles owned by the state.  Insurance
  6 20 coverage may be through a self-insurance program administered
  6 21 by the division department or purchased from an insurer.  If
  6 22 the determination is made to utilize a self-insurance program
  6 23 the vehicle dispatcher shall maintain loss and exposure data
  6 24 for the vehicles under the dispatcher's jurisdiction.  Each
  6 25 agency shall provide to the division department all requested
  6 26 motor vehicle loss and loss exposure information.  
  6 27                           EXPLANATION
  6 28    This bill makes several changes to Code provisions dealing
  6 29 with the department of general services.
  6 30    Section 3 of the bill provides the director of the
  6 31 department with additional authority concerning the disposal
  6 32 of unwanted personal property of the state.  The bill allows
  6 33 the director to charge the state agency in control of the
  6 34 personal property for costs associated with the removal and
  6 35 disposal of personal property that is contaminated or
  7  1 otherwise hazardous waste.  The bill also permits disposal of
  7  2 the personal property to not-for-profit and other governmental
  7  3 organizations.
  7  4    Section 4 provides changes regarding lease-purchase
  7  5 agreements entered into with the department of general
  7  6 services.  The bill allows the treasurer of state to enter
  7  7 into master lease-purchase agreements in order to borrow
  7  8 moneys to provide for lease-purchase agreements.  The bill
  7  9 also allows the director to enter into lease-purchase
  7 10 agreements for up to $1 million without seeking legislative
  7 11 approval.
  7 12    Section 5 allows the director to establish a monument
  7 13 maintenance fund in the state treasury to be held in interest-
  7 14 bearing accounts upon receipt of funds for the maintenance of
  7 15 a monument.  
  7 16                      BACKGROUND STATEMENT
  7 17                     SUBMITTED BY THE AGENCY
  7 18    This bill does several things:
  7 19    Section 1 updates the Code section to reflect changing
  7 20 communication technologies.  The department is currently
  7 21 responsible for coordinating voice and data transmissions on
  7 22 the capitol complex.
  7 23    Section 2 reflects changes in technology.  It clarifies the
  7 24 department's rights to protect electronic and intellectual
  7 25 property of the state.
  7 26    Section 3 revises the methods by which the director can
  7 27 dispose of surplus property.  It allows the director to
  7 28 exercise certain options in connection with the property.  A
  7 29 unique aspect aspect of this provision allows the director to
  7 30 contract with Iowa prison industries to take control of
  7 31 certain portions of state surplus property.  Iowa prison
  7 32 industries would then refurbish or add value to the surplus
  7 33 and resell it with the proceeds deposited in the Iowa prison
  7 34 industries account.  Additionally, the department is allowed
  7 35 to charge fee for surplus property pickup if Iowa prison
  8  1 industries picks up the surplus property.  The provision also
  8  2 allows the director to enter into agreements with other
  8  3 nonprofit or governmental organization to dispose of surplus
  8  4 property.  Finally, the provision allows the director to
  8  5 dispose of hazardous or contaminated waste.  The agency
  8  6 generating the waste will be charge for its disposal.
  8  7    Section 4 allows the director to enter into lease-purchase
  8  8 agreements to purchase permanent fixtures for various state
  8  9 agencies.  This financing vehicle allows the agencies to meet
  8 10 their public service requirements and protect the health and
  8 11 well-being of the constituents.  It adds oversight by the
  8 12 treasurer and allows the director to enter into lease
  8 13 agreements for up to $1 million without seeking prior
  8 14 legislative approval.
  8 15    Section 5 allows the department to establish a monument
  8 16 maintenance account with the department of revenue and finance
  8 17 where monument maintenance funds are held in interest-bearing
  8 18 accounts.  The department has ongoing responsibilities
  8 19 regarding monument maintenance after the monument becomes
  8 20 property of the state.  If the money is put at interest, the
  8 21 department can preserve the principal and use the interest
  8 22 earned to offset the cost of maintenance for the monument.
  8 23    Section 6 reflects the current organization of the
  8 24 department.  It clarifies current organizational structure.  
  8 25 LSB 3283DP 76
  8 26 ec/jj/8
     

Text: SSB02209                          Text: SSB02211
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