House Study Bill 123 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON FORRISTALL) A BILL FOR An Act relating to public construction bidding requirements 1 for public school corporation improvements and including 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1383YC (1) 84 md/sc

H.F. _____ Section 1. Section 26.9, Code 2011, is amended to read as 1 follows: 2 26.9 Award of contract. 3 1. The contract for the public improvement must be awarded 4 to the lowest responsive, responsible bidder. However, 5 contracts relating to public utilities or extensions or 6 improvements thereof, as described in sections 384.80 through 7 384.94 , may be awarded by the city as it deems to be in the 8 best interests of the city. In no case shall a governmental 9 entity that is a public school corporation award or enter into 10 a contract for the construction of a public improvement that 11 is or includes the new construction of a school building if 12 the cost per square foot of the school building, excluding the 13 cost of land but including any enhancement of payments, exceeds 14 the national average cost per square foot for a similar school 15 building, as determined by the state board of education under 16 section 256.7, subsection 31 . For purposes of this section, 17 “school building” means a schoolhouse, attendance center, 18 or other building or structure owned by the public school 19 corporation and used for instructional purposes or for the 20 operation of the public school corporation. 21 2. This section shall not be construed to prohibit a 22 governmental entity in the award of a contract for a public 23 improvement or a governing body of a city utility from 24 providing, in the award of a contract for a public improvement, 25 an enhancement of payments upon early completion of the public 26 improvement if the availability of the enhancement payments is 27 included in the notice to bidders, the enhancement payments are 28 competitively neutral to potential bidders, the enhancement 29 payments are considered as a separate item in the public 30 hearing on the award of contract, and the total value of the 31 enhancement payments does not exceed ten percent of the value 32 of the contract. 33 Sec. 2. Section 256.7, Code 2011, is amended by adding the 34 following new subsection: 35 -1- LSB 1383YC (1) 84 md/sc 1/ 2

H.F. _____ NEW SUBSECTION . 31. a. Adopt rules pursuant to chapter 1 17A not later than June 30 of each year stating the national 2 average cost per square foot of new construction school 3 buildings, excluding the cost of land, in several categories 4 based on both the number of students served by the school 5 building and the level or type of education or activity 6 provided in the school building. For purposes of this 7 subsection, “school building” means as defined in section 26.9. 8 b. The rules adopted under paragraph “a” shall utilize the 9 most recent reliable data available to the state board. 10 Sec. 3. APPLICABILITY. This Act applies to public projects 11 noticed for proposed bids under section 26.7 by a public school 12 corporation on or after July 1, 2011. 13 EXPLANATION 14 This bill amends Code chapter 26 relating to public 15 construction bidding requirements by prohibiting a governmental 16 entity that is a public school corporation from awarding or 17 entering into a contract for the construction of a public 18 improvement that is or includes the new construction of a 19 school building, as defined in the bill, if the cost per square 20 foot of the school building, excluding the cost of land but 21 including any enhancement of payments, exceeds the national 22 average cost per square foot for a similar school building, as 23 determined by the state board of education. The bill requires 24 the state board of education to adopt rules not later than 25 June 30 of each year stating the national average cost per 26 square foot of new construction school buildings, excluding 27 the cost of land, in several categories based on the number of 28 students served by the school building and the level or type of 29 education or activity provided in the school building. 30 The bill applies to public projects noticed for proposed 31 bids by a public school corporation on or after July 1, 2011. 32 -2- LSB 1383YC (1) 84 md/sc 2/ 2