H.F. _____ Section 1. NEW SECTION . 8A.321A State property 1 optimization. 2 1. For purposes of this section: 3 a. “State building” means the same as defined in section 4 8A.318. 5 b. “Underutilized property” means a property that has an 6 occupancy rate of less than fifty percent or for which the cost 7 of operations and deferred maintenance exceeds the current 8 market value or replacement cost of the state building. 9 2. The director shall maintain a digital inventory of all 10 state buildings. The digital inventory must be available on 11 the department’s internet site. 12 3. The director shall establish a four-year review cycle. 13 In each fiscal year, the department shall review and evaluate 14 at least twenty-five percent of the state’s building inventory. 15 The evaluation must assess the utilization, condition, 16 operating costs, and market value of each property. The 17 director may contract with a third party to perform the review 18 and evaluation. 19 4. On or before December 1 of each year, the director shall 20 submit a state building optimization report to the governor 21 and the general assembly. The report must identify each state 22 building found to be an underutilized property during the 23 review cycle. 24 5. An agency in control of a state building identified as 25 an underutilized property in the state building optimization 26 report shall, within sixty days of the report’s release, 27 initiate the process to vacate and dispose of the property. 28 6. If an agency seeks to retain an underutilized property, 29 the agency head must submit a written request justifying 30 retention to the legislative council detailing the necessity of 31 the property for the agency’s mission and a plan to improve the 32 utilization of the state building within twelve months. 33 a. The agency shall not base a retention request on any of 34 the following: 35 -1- LSB 6931YC (1) 91 sc/ns 1/ 3

H.F. _____ (1) Anticipated future growth that is not funded in the 1 current fiscal year’s appropriation. 2 (2) Storage of obsolete records or equipment that can be 3 digitized or disposed of. 4 (3) Convenience of location for staff. 5 b. The agency must demonstrate, with quantitative data, 6 that no other currently owned state building can accommodate 7 the agency’s needs, and that the cost of retaining the 8 underutilized property is lower than the cost of leasing 9 comparable private sector space. 10 c. If the property requires deferred maintenance that 11 costs more than ten percent of the property’s value to become 12 fully functional, the agency must provide proof of all of the 13 following: 14 (1) Funding for the repairs has already been appropriated 15 or secured or will be sought during the next session of the 16 general assembly. 17 (2) A contract for the repairs is ready to be executed 18 within ninety days of receiving funding. 19 7. Subsections 5 and 6 do not apply to underutilized 20 property at a location required by law. 21 8. The legislative council may reject a retention 22 justification plan by majority vote. If rejected, the agency 23 shall immediately proceed with disposal of the property. 24 9. Fifty percent of the net proceeds from the sale of an 25 underutilized property under this section shall be deposited in 26 the rebuild Iowa infrastructure fund created in section 8.57. 27 The remaining fifty percent shall be deposited in the general 28 fund of the state. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 This bill requires the director of the department of 33 administrative services (department) to maintain a digital 34 inventory of all state buildings on the department’s internet 35 -2- LSB 6931YC (1) 91 sc/ns 2/ 3

H.F. _____ site and to establish a four-year review cycle of the 1 state’s building inventory. The evaluation must assess the 2 utilization, condition, operating costs, and market value of 3 each property. The director may contract with a third party to 4 perform the review and evaluation. The director must submit an 5 annual state building optimization report to the governor and 6 the general assembly that identifies each state building found 7 to be an underutilized property, defined in the bill, during 8 the review cycle. 9 The bill provides that an agency in control of an 10 underutilized property must, within 60 days of the report’s 11 release, begin the process to vacate and dispose of the 12 property. If an agency wants to retain an underutilized 13 property, the agency head must submit a written retention 14 justification to the legislative council detailing the 15 necessity of the property for the agency’s mission and a 16 plan to improve the utilization of the state building within 17 12 months. The legislative council may reject a retention 18 justification plan by majority vote. If rejected, the agency 19 must immediately proceed with disposal of the property. Half 20 of the net proceeds from the sale of an underutilized property 21 shall be deposited in the rebuild Iowa infrastructure fund and 22 half shall be deposited in the general fund of the state. 23 -3- LSB 6931YC (1) 91 sc/ns 3/ 3