Senate Study Bill 1225 



                                       SENATE/HOUSE FILE       
                                       BY  (PROPOSED DEPARTMENT OF
                                            ADMINISTRATIVE SERVICES
                                            BILL)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act concerning the authority of the department of
  2    administrative services relative to existing leases on real
  3    property acquired by the department.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1418DP 83
  6 ec/nh/5

PAG LIN



  1  1    Section 1.  Section 8A.321, subsection 9, Code 2009, is
  1  2 amended to read as follows:
  1  3    9.  a.  With the approval of the executive council pursuant
  1  4 to section 7D.29 or pursuant to other authority granted by
  1  5 law, acquire real property to be held by the department in the
  1  6 name of the state as follows:
  1  7    a.  (1)  By purchase, lease, option, gift, grant, bequest,
  1  8 devise, or otherwise.
  1  9    b.  (2)  By exchange of real property belonging to the
  1 10 state for property belonging to another person.
  1 11    b.  If real property acquired by the department in the name
  1 12 of the state is subject to a lease in effect at the time of
  1 13 acquisition, the director may honor and maintain the existing
  1 14 lease subject to the following requirements:
  1 15    (1)  The lease shall not be renewed beyond the term of the
  1 16 existing lease including any renewal periods under the lease
  1 17 that are solely at the discretion of the lessee.
  1 18    (2)  The lease shall not be renewed by the department as
  1 19 the lessor if the lessor has discretion to not renew under the
  1 20 existing lease.
  1 21    (3)  The lease shall not be maintained for a period in
  1 22 excess of ten years from the date of acquisition of the real
  1 23 property, including any renewal periods, without the approval
  1 24 of the executive council.
  1 25    (4)  The lease shall not be maintained if the lessee at the
  1 26 time of the acquisition ceases to occupy the leased property.
  1 27                           EXPLANATION
  1 28    This bill authorizes the department of administrative
  1 29 services to maintain an existing lease related to real
  1 30 property acquired by the department on behalf of the state.
  1 31 The bill establishes certain limitations on this authority,
  1 32 including that the lease is not to be renewed beyond the term
  1 33 of the existing lease and any renewal periods that are solely
  1 34 at the discretion of the lessee; the lease is not to be
  1 35 renewed by the department as the lessor if the lessor has
  2  1 discretion to not renew under the existing lease; the lease is
  2  2 not to be maintained for a period in excess of 10 years from
  2  3 the date of acquisition without the approval of the executive
  2  4 council; and the lease is not to be maintained if the lessee
  2  5 at the time of the acquisition ceases to occupy the leased
  2  6 property.
  2  7 LSB 1418DP 83
  2  8 ec/nh/5