H.F. 401 DIVISION I 1 MERGERS 2 Section 1. Section 468.265, subsection 2, Code 2015, is 3 amended by striking the subsection and inserting in lieu 4 thereof the following: 5 2. a. The auditor of the county where a participating 6 drainage or levee district is situated or the auditor 7 designated by the board shall deliver the notice required in 8 subsection 1 to all landowners in the district in the same 9 manner as provided in sections 468.14 through 468.18, as the 10 auditor deems appropriate. 11 b. If land is to be annexed as a condition of the merger, 12 as provided in this part, the auditor of the county where the 13 land to be annexed is situated or the auditor designated by the 14 board shall deliver the notice to the owners of such land by 15 ordinary mail. 16 Sec. 2. Section 468.265, subsections 3 and 4, Code 2015, are 17 amended by striking the subsections. 18 DIVISION II 19 THRESHOLD AMOUNTS FOR PERFORMING WORK 20 Sec. 3. Section 468.3, Code 2015, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 01. As used in this chapter, unless the 23 context otherwise requires, the term “adjusted competitive 24 bid threshold” means the same as the adjusted competitive bid 25 threshold for vertical infrastructure applicable to counties as 26 established by the state department of transportation pursuant 27 to section 314.1B. 28 Sec. 4. Section 468.3, subsection 9, Code 2015, is amended 29 by striking the subsection. 30 Sec. 5. Section 468.34, Code 2015, is amended by striking 31 the section and inserting in lieu thereof the following: 32 468.34 Advertisement for bids. 33 The board shall publish notice once each week for two 34 consecutive weeks in a newspaper published in the county 35 -1- LSB 1657YH (18) 86 da/sc 1/ 10

H.F. 401 where the improvement is located, and publish additional 1 advertisement and publication elsewhere as the board may 2 direct. The notice shall state the time and place of letting 3 the work of construction of the improvement, specifying the 4 approximate amount of work to be done in each numbered section 5 of the district, the time fixed for the commencement, and the 6 time of the completion of the work, that bids will be received 7 on the entire work and in sections or divisions of it, and that 8 a bidder will be required to deposit a bid security with the 9 county auditor as provided in section 468.35A. All notices 10 shall set the date that bids will be received and upon which 11 the work will be let. However, when the estimated cost of 12 the improvement is less than the adjusted competitive bid 13 threshold, the board may let the contract for the construction 14 without taking bids and without publishing notice. 15 Sec. 6. NEW SECTION . 468.35A Bids —— letting of work. 16 1. The board shall award a contract or contracts for each 17 section of the work to the lowest responsible bidder or bidders 18 therefor, bids to be submitted, received, and acted upon 19 separately as to the main drain and each of the laterals, and 20 each settling basin, if any, exercising their own discretion as 21 to letting such work as to the main drain as a whole, or as to 22 each lateral as a whole, or by sections as to both main drain 23 and laterals, and reserving the right to reject any and all 24 bids and readvertise the letting of the work. 25 2. A bid shall be in writing, specifying the portion 26 of the work upon which the bid is made, and filed with the 27 auditor. The bid shall be accompanied with a bid security. 28 The bid security shall be in the form of a deposit of cash, a 29 certified check on and certified by a bank in Iowa, a certified 30 share draft drawn on a credit union in Iowa, or a bid bond 31 with a corporate surety satisfactory to the board as provided 32 in section 73A.20. The bid security must be payable to the 33 auditor or the auditor’s order at the auditor’s office in a 34 sum equal to five percent of the amount of the bid. However, 35 -2- LSB 1657YH (18) 86 da/sc 2/ 10

H.F. 401 if the maximum limit on a bid security would cause a denial 1 of funds or services from the federal government which would 2 otherwise be available, or if the maximum limit would otherwise 3 be inconsistent with the requirements of federal law, the 4 maximum limit may be suspended to the extent necessary to 5 prevent denial of federal funds or services or to eliminate 6 the inconsistency with federal requirements. The cash, check, 7 or share draft of an unsuccessful bidder shall be returned, 8 and the bid bond of an unsuccessful bidder shall be canceled. 9 The bid security of a successful bidder shall be maintained 10 as a guarantee that the bidder will enter into contract in 11 accordance with the bids. 12 Sec. 7. NEW SECTION . 468.36A Performance bond —— return of 13 deposit. 14 A successful bidder is required to execute a bond with 15 sureties approved by the auditor in favor of the county for 16 the use and benefit of the levee or drainage district and all 17 persons entitled to liens for labor or material in an amount 18 not less than seventy-five percent of the contract price of the 19 work to be done, conditioned for the timely, efficient, and 20 complete performance of the contract, and the payment, as they 21 become due, of all just claims for labor performed and material 22 used in carrying out the contract. When a contract is executed 23 and bond approved by the board, the cash, certified check, or 24 certified share draft deposited with the bid shall be returned 25 to the bidder. 26 Sec. 8. Section 468.66, Code 2015, is amended to read as 27 follows: 28 468.66 Bids required. 29 In case If the board determines that a change described 30 in section 468.62 increases the cost of the improvement to 31 more than in excess of the adjusted competitive bid threshold 32 as provided in section 26.3 , the board and any bidders shall 33 comply with the competitive bid requirements applicable to 34 a governing entity ordering the construction of a public 35 -3- LSB 1657YH (18) 86 da/sc 3/ 10

H.F. 401 improvement in chapter 26 work shall be let by bids in the same 1 manner as is provided for the original construction of such 2 improvements . 3 Sec. 9. Section 468.126, subsection 1, paragraphs c and d, 4 Code 2015, are amended by striking the paragraphs and inserting 5 in lieu thereof the following: 6 c. If the estimated cost of the repair does not exceed fifty 7 thousand dollars, the board may order the work done without 8 conducting a hearing on the matter. Otherwise, the board shall 9 set a date for a hearing and provide notice of the hearing to 10 landowners in the district by publication in the same manner 11 as provided in section 468.15. However, if the estimated cost 12 of the repair exceeds the adjusted competitive bid threshold, 13 the board shall provide notice to the landowners pursuant to 14 sections 468.14 through 468.18. The board shall not divide a 15 proposed repair into separate programs in order to avoid the 16 notice and hearing requirements of this paragraph. 17 d. If a hearing is required under paragraph “c” , the board 18 shall order an engineer’s report or a report from the soil 19 and water conservation district conservationist regarding the 20 matter to be presented at the hearing. The board may waive the 21 report requirement if a prior report on the repair exists and 22 that report is less than ten years old. At the hearing, the 23 board shall hear objections to the feasibility of making the 24 proposed repair. 25 Sec. 10. Section 468.126, subsection 1, Code 2015, is 26 amended by adding the following new paragraphs: 27 NEW PARAGRAPH . e. Following a hearing, if required in 28 paragraph “c” , the board shall determine whether the repair is 29 necessary or desirable, and feasible. 30 NEW PARAGRAPH . f. Any interested party has the right 31 of appeal from such orders in the manner provided in this 32 subchapter, parts 1 through 5. 33 NEW PARAGRAPH . g. The right of remonstrance does not apply 34 to a repair as provided in this section. 35 -4- LSB 1657YH (18) 86 da/sc 4/ 10

H.F. 401 Sec. 11. Section 468.126, subsection 2, Code 2015, is 1 amended to read as follows: 2 2. In the case of a minor repair, or in the eradication of 3 brush and or weeds along the open ditches , not in excess of 4 twenty thousand dollars the adjusted competitive bid threshold , 5 where the board finds that a saving to the district will 6 result, the board may cause the repairs or eradication to be 7 done by secondary road fund equipment, or weed fund equipment, 8 and labor of the county and then reimburse the secondary road 9 fund or the weed fund from the fund of the drainage district 10 thus benefited. 11 Sec. 12. Section 468.126, subsection 4, Code 2015, is 12 amended to read as follows: 13 4. a. For the purpose of this subsection , an “improvement” 14 in a drainage or levee district in which any ditch, tile drain, 15 or other facility has previously been constructed is a project 16 intended to expand, enlarge, or otherwise increase the capacity 17 of any existing ditch, drain, or other facility above that for 18 which it was designed. 19 a. b. When the board determines that an improvement is 20 necessary or desirable, and feasible, the board shall appoint 21 an engineer to make surveys as seem appropriate to determine 22 the nature and extent of the needed improvement, and to file 23 a report showing what improvement is recommended and its 24 estimated cost, which report may be amended before final 25 action. 26 c. If the estimated cost of the improvement does not 27 exceed fifty thousand dollars, the board may order the work 28 done without conducting a hearing on the matter. Otherwise, 29 the board shall set a date for a hearing on whether to 30 construct the proposed improvement and whether there shall be 31 a reclassification of benefits for the cost of the proposed 32 improvement. 33 (1) (a) The board shall provide notice to landowners in 34 the district by publication in the same manner as provided 35 -5- LSB 1657YH (18) 86 da/sc 5/ 10

H.F. 401 in section 468.15. However, if the estimated cost of the 1 improvement exceeds the adjusted competitive bid threshold, 2 the board shall provide notice to the landowners pursuant to 3 sections 468.14 through 468.18. 4 (b) Notwithstanding subparagraph division (a), and in lieu 5 of publishing the notice, the board may mail a copy of the 6 notice to each address where a landowner within the district 7 resides by first class mail if the cost of mailing is less 8 than publication of the notice. The mailing shall be made 9 during the time the notice would otherwise be required to be 10 published. 11 (2) The board shall not divide proposed improvements into 12 separate programs in order to avoid compliance with this 13 paragraph “b” “c” . 14 d. At the hearing, if required in paragraph “c” , the board 15 shall hear objections to the feasibility of the proposed 16 improvements and arguments for or against a reclassification 17 presented by or for any taxpayer of the district. Following 18 a the hearing, if required by section 26.12 , the board shall 19 order that the improvements improvement it deems necessary or 20 desirable and feasible be made and shall also determine whether 21 there should be a reclassification of benefits for the cost 22 of improvements the improvement . If it is determined that a 23 reclassification of benefits should be made, the board shall 24 proceed as provided in section 468.38 . In lieu of publishing 25 the notice of a hearing as provided by section 331.305 , the 26 board may mail a copy of the notice to each address where 27 a landowner in the district resides by first class mail if 28 the cost of mailing is less than publication of the notice. 29 The mailing shall be made during the time the notice would 30 otherwise be required to be published. 31 b. When ordering the construction of an improvement under 32 this subsection , the board shall comply with the competitive 33 bid requirements applicable to a governing entity ordering 34 the construction of a public improvement in chapter 26 . If 35 -6- LSB 1657YH (18) 86 da/sc 6/ 10

H.F. 401 the improvement is more than fifty thousand dollars but less 1 than the competitive bid threshold in section 26.3 , the board 2 shall conduct a hearing on the matter of making the proposed 3 improvement. The board shall provide notice of the hearing as 4 provided in sections 468.14 through 468.18 . 5 c. e. If the estimated cost of the improvements improvement 6 exceeds the adjusted competitive bid threshold as provided in 7 section 26.3 , or the original cost of the district plus the 8 cost of subsequent improvements in the district, whichever 9 amount is the greater amount , a majority of the landowners, 10 owning in the aggregate more than seventy percent of the 11 total land in the district, may file a written remonstrance 12 against the proposed improvements improvement , at or before the 13 time fixed date set for hearing on the proposed improvements 14 improvement as provided in paragraph “c” , with the county 15 auditor, or auditors in case the district extends into more 16 than one county. If a remonstrance is filed, the board shall 17 discontinue and dismiss all further proceedings on the proposed 18 improvements and charge the costs incurred to date for the 19 proposed improvements to the district. Any interested party 20 may appeal from such orders in the manner provided in this 21 subchapter, parts 1 through 5. However, this section does not 22 affect the procedures of section 468.132 covering the common 23 outlet. 24 DIVISION III 25 JUDGES OF TRUSTEE ELECTIONS 26 Sec. 13. Section 468.521, Code 2015, is amended to read as 27 follows: 28 468.521 Elections —— how conducted. 29 1. After the first election of trustees, the board of 30 trustees shall act as judges of election; however, a trustee 31 standing for election shall not serve as a judge and shall be 32 replaced as judge by a person not standing for election who is 33 eligible to be elected as a trustee . 34 2. The clerk of the board shall act as one of the clerks and 35 -7- LSB 1657YH (18) 86 da/sc 7/ 10

H.F. 401 some an owner of land in the district shall be appointed by the 1 board to act as another clerk. 2 3. The trustees board shall fill all vacancies in the 3 election board any vacancy of an acting election judge by 4 appointing a person who resides in the county where all or 5 part of the drainage or levee district is located and who is 6 eligible to vote in a general election in that county . 7 4. The result of each election shall be certified to the 8 auditor or the several county auditors if the district is 9 located in more than one county. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 GENERAL. This bill amends provisions relating to the 14 governance of a drainage or levee district (district) governed 15 by a drainage district board. 16 MERGER. The bill amends requirements for providing notice 17 to persons affected by a proposed merger of two or more 18 districts, and persons affected by a proposed annexation of 19 land as part of such merger. The bill eliminates a requirement 20 that the notice be delivered by ordinary mail and publication 21 to specified affected persons who have an interest in a 22 district participating in the merger and, if required, to the 23 owners of land that may be annexed (Code section 468.265). 24 That process is replaced by a requirement that landowners 25 receive notice under the same requirements that apply when a 26 district is established, including by publication, certified 27 mail, or personal service (Code sections 468.14 through 28 468.18). If the proposed merger includes the annexation of 29 land, notice must be provided to landowners by ordinary mail. 30 THRESHOLD AMOUNTS —— BIDDING PROCEDURES. The bill amends 31 provisions governing when a board must let out a project 32 (either for a repair or improvement for bid and conduct a 33 hearing regarding the project). The bill eliminates a number 34 of provisions that require the same procedures as used under 35 -8- LSB 1657YH (18) 86 da/sc 8/ 10

H.F. 401 the “Iowa Construction Bidding Procedures Act” (Code chapter 1 26) and replaces them with procedures that existed prior to 2 July 1, 2014 (2014 Iowa Acts, ch. 1075). However, in lieu 3 of using fixed dollar amounts as existed in the prior law, 4 the bill requires that letting out bids is required when the 5 estimated cost of a project exceeds the “adjusted competitive 6 bid threshold” for vertical infrastructure applicable to 7 counties established by the state department of transportation 8 (Code section 314.1B). The bill also requires a notice to 9 landowners of the district and a hearing on the matter if the 10 estimated cost of the project exceeds $50,000. The notice must 11 be by publication (Code section 468.15), unless the estimated 12 cost of the project exceeds the competitive bid threshold in 13 which case notice is required in the same manner as when a 14 district is established, including by publication, certified 15 mail, or personal service (Code sections 468.14 through 16 468.18). The bill also provides that in the case of a repair 17 or of eradicating brush or weeds along open ditches, the board 18 may use moneys credited to the county’s secondary road fund or 19 weed fund, so long as the project does not exceed the adjusted 20 competitive bid threshold and the fund is repaid. 21 JUDGES OF TRUSTEE ELECTIONS. The bill amends a provision 22 that requires the board of trustees elected to manage a 23 district to also serve as judges canvassing the results of the 24 next district election. The bill provides that when there is 25 a vacancy the board may appoint any individual to serve as a 26 judge, so long as they reside in the county where all or part of 27 the district is located and are eligible to vote in the general 28 election. 29 BACKGROUND. A district is established by a county board 30 of supervisors which manages the district (Iowa Code section 31 468.1). A district may also be established and managed by a 32 joint board of supervisors if the district crosses county lines 33 (Iowa Code chapter 468, subchapter II). A board of supervisors 34 may relinquish control of a district to a board of elected 35 -9- LSB 1657YH (18) 86 da/sc 9/ 10