SSB 1019 (LSB 1187XC (3) 89)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON SMITH)

A BILL FOR

An Act relating to notification of the general assembly concerning certain state government leases and real property acquisitions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  7E.5B  Real property lease or purchase —— notice.
   In addition to any other provision of law, any purchase or lease of real property, other than on a temporary basis, when necessary in order to implement the programs of an authority or protect the investments of an authority, shall require prior written notice from the authority to the legislative services agency. The legislative services agency shall submit the notification to the government oversight standing committees of the general assembly. The notification shall include the information as described in section 8A.321, subsection 16.
    Sec. 2.  Section 8A.321, Code 2021, is amended by adding the following new subsection:
   NEW SUBSECTION.  16.  At least thirty days prior to entering into a contract for a lease or renewal of a lease pursuant to subsection 6 or a contract for the acquisition of real property pursuant to subsection 9 in which any part or the total amount of the contract is at least fifty thousand dollars, notify the legislative services agency concerning the contract. The legislative services agency shall submit the notification to the general assembly’s standing committees on government oversight. The notification is required regardless of the source of payment for the lease, renewal of lease, or acquisition of real property. The notification shall include all of the following information:
   a.  A description of the buildings and office space subject to the lease or renewal of lease or a description of the real property to be acquired.
   b.  The proposed terms of the contract.
   c.  The cost of the contract, including principal and interest costs. If the actual cost of a contract is not known at least thirty days prior to entering into the contract, the director shall estimate the principal and interest costs for the contract.
   d.  An identification of the means and source of payment of the contract.
   e.  An analysis of consequences of delaying or abandoning the commencement of the contract.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill establishes notice requirements relating to certain leases or purchases of real property by the department of administrative services or executive branch authority.
   New Code section 7E.5B requires an executive branch authority to provide prior written notice to the legislative services agency for submission to the general assembly’s standing committees on government oversight information for any purchase or lease of real property, other than on a temporary basis, by the authority when necessary in order to implement the programs of the authority. The bill provides that the notification shall include the information as required by the bill for the department of administrative services.
   Code section 8A.321, concerning managing the physical resources of government, is amended to require the director of the department of administrative services to notify and provide to the legislative services agency for submission to the general assembly’s standing committees on government oversight information regarding entering into a contract for a lease or renewal of a lease for certain buildings and office space or a contract for the acquisition of real property in which any part or the total amount of the contract is at least $50,000. The bill requires the notification at least 30 days prior to entering into a contract and provides that the notification include information describing the buildings and office space subject to the lease or renewal of lease or describing the real property to be acquired, providing the proposed terms of the contract and the cost of the contract, identifying the means and source of payment of the contract, and analyzing the consequences of delaying or abandoning the commencement of the contract.