House File 2253 - Reprinted HOUSE FILE 2253 BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO HSB 568) (As Amended and Passed by the House March 6, 2018 ) A BILL FOR An Act regarding competitive bidding requirements for 1 construction by a private party of property to be 2 lease-purchased by certain government entities and including 3 effective date and applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 HF 2253 (3) 87 js/jh/md

H.F. 2253 Section 1. Section 8.46, Code 2018, is amended by adding the 1 following new subsection: 2 NEW SUBSECTION . 4. A contract for construction by a 3 private party of property to be lease-purchased by a state 4 agency is a contract for a public improvement as defined in 5 section 26.2. If the estimated cost of the property to be 6 lease-purchased that is renovated, repaired, or involves new 7 construction exceeds the competitive bid threshold in section 8 26.3, the state agency shall comply with the competitive 9 bidding requirements of section 26.3. 10 Sec. 2. Section 26.2, subsection 3, Code 2018, is amended 11 to read as follows: 12 3. “Public improvement” means a building or construction 13 work which is constructed under the control of a governmental 14 entity and is paid for in whole or in part with funds of the 15 governmental entity or for which a commitment has been made 16 prior to construction by the governmental entity to pay for the 17 building or construction work in whole or in part with funds of 18 the governmental entity , including a building or improvement 19 constructed or operated jointly with any other public or 20 private agency, but excluding urban renewal demolition and 21 low-rent housing projects funded under chapter 403 , industrial 22 aid projects authorized under chapter 419 , emergency work 23 or repair or maintenance work performed by employees of a 24 governmental entity, and excluding a highway, bridge, or 25 culvert project, and excluding construction or repair or 26 maintenance work performed for a city utility under chapter 388 27 by its employees or performed for a rural water district under 28 chapter 357A by its employees. 29 Sec. 3. Section 26.2, Code 2018, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 5. “Under the control of a governmental 32 entity” includes determining the construction work to be 33 performed or establishing the specifications for a building or 34 construction work to be occupied by the governmental entity. 35 -1- HF 2253 (3) 87 js/jh/md 1/ 5

H.F. 2253 Sec. 4. Section 260C.38, subsection 3, Code 2018, is amended 1 to read as follows: 2 3. Before Subject to subsection 4, before entering into a 3 lease agreement with a purchase option for a building to be 4 constructed, or placed, upon real estate owned by the community 5 college, the board shall first adopt plans and specifications 6 for the proposed building which it considers suitable for the 7 intended use, and the board shall also adopt the proposed 8 terms of the lease agreement and purchase option. The board 9 shall invite bids, by advertisement published once each week 10 for two consecutive weeks in the county where the building is 11 to be located. The lease agreement shall be awarded to the 12 lowest responsible bidder, or the board may reject all bids and 13 readvertise for new bids. 14 Sec. 5. Section 260C.38, Code 2018, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 4. A contract for construction by a 17 private party of property to be lease-purchased by a community 18 college is a contract for a public improvement as defined in 19 section 26.2. If the estimated cost of the property to be 20 lease-purchased that is renovated, repaired, or involves new 21 construction exceeds the competitive bid threshold in section 22 26.3, the board shall comply with the competitive bidding 23 requirements of section 26.3. 24 Sec. 6. Section 262.34, subsection 1, Code 2018, is amended 25 to read as follows: 26 1. When the estimated cost of construction, repairs, or 27 improvement of buildings or grounds under charge of the state 28 board of regents , including construction, renovation, or 29 repairs by a private party of a property to be lease-purchased 30 by the board exceeds one hundred thousand dollars, the board 31 shall advertise for bids for the contemplated improvement or 32 construction and shall let the work to the lowest responsible 33 bidder. However, if in the judgment of the board bids received 34 are not acceptable, the board may reject all bids and proceed 35 -2- HF 2253 (3) 87 js/jh/md 2/ 5

H.F. 2253 with the construction, repair, or improvement by a method as 1 the board may determine. All plans and specifications for 2 repairs or construction, together with bids on the plans or 3 specifications, shall be filed by the board and be open for 4 public inspection. All bids submitted under this section shall 5 be accompanied by a deposit of money, a certified check, or a 6 credit union certified share draft in an amount as the board 7 may prescribe. 8 Sec. 7. Section 278.1, subsection 2, paragraph b, Code 2018, 9 is amended to read as follows: 10 b. Before Subject to paragraph “c” , before entering into 11 a rental or lease-purchase option contract, authorized by the 12 electors, the board shall first adopt plans and specifications 13 for a building or buildings which it considers suitable for the 14 intended use and also adopt a form of rental or lease-purchase 15 option contract. The board shall then invite bids thereon, 16 by advertisement published once each week for two consecutive 17 weeks, in a newspaper published in the county in which the 18 building or buildings are to be located, and the rental or 19 lease-purchase option contract shall be awarded to the lowest 20 responsible bidder, but the board may reject any and all bids 21 and advertise for new bids. 22 Sec. 8. Section 278.1, subsection 2, Code 2018, is amended 23 by adding the following new paragraph: 24 NEW PARAGRAPH . c. A contract for construction by a private 25 party of property to be lease-purchased by a public school 26 corporation is a contract for a public improvement as defined 27 in section 26.2. If the estimated cost of the property to be 28 lease-purchased that is renovated, repaired, or involves new 29 construction exceeds the competitive bid threshold in section 30 26.3, the board shall comply with the competitive bidding 31 requirements of section 26.3. 32 Sec. 9. Section 298.3, subsection 1, paragraph j, Code 2018, 33 is amended to read as follows: 34 j. The purchase of buildings or lease-purchase option 35 -3- HF 2253 (3) 87 js/jh/md 3/ 5

H.F. 2253 agreements for school buildings. However, a contract 1 for construction by a private party of property to be 2 lease-purchased by a public school corporation is a contract 3 for a public improvement as defined in section 26.2. If 4 the estimated cost of the property to be lease-purchased 5 that is renovated, repaired, or involves new construction in 6 excess of the competitive bid threshold in section 26.3, the 7 board of directors shall comply with the competitive bidding 8 requirements of section 26.3. 9 Sec. 10. Section 331.301, subsection 10, paragraph i, Code 10 2018, is amended to read as follows: 11 i. A contract for construction by a private party of 12 property to be leased or lease-purchased by a county is not 13 a contract for a public improvement under and is subject to 14 section 331.341, subsection 1 . However, if a lease-purchase 15 contract is funded in advance by means of the lessor depositing 16 moneys to be administered by a county, with the county’s 17 obligation to make rent payments commencing with its receipt of 18 moneys, a contract for construction of the property in question 19 awarded by the county is a public improvement and is subject to 20 section 331.341, subsection 1 . 21 Sec. 11. Section 364.4, subsection 4, paragraph i, Code 22 2018, is amended to read as follows: 23 i. A contract for construction by a private party of 24 property to be leased or lease-purchased by a city is not 25 a contract for a public improvement under section 26.2, 26 subsection 3 , except for purposes of section 26.12 . However, 27 if a lease-purchase contract is funded in advance by means of 28 the lessor depositing moneys to be administered by a city, 29 with the city’s obligations to make rent payments commencing 30 with its receipt of moneys, a contract for construction of 31 the property in question awarded by the city is subject to 32 chapter 26 . If the estimated cost of the property to be 33 lease-purchased that is renovated, repaired, or involves new 34 construction exceeds the competitive bid threshold set in 26.3, 35 -4- HF 2253 (3) 87 js/jh/md 4/ 5