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House Study Bill 57 - IntroducedA Bill ForAn Act 1relating to public construction bidding procedures.
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 26.2, subsection 2, Code 2019, is amended
2to read as follows:
32. “Governmental entity” means the state, political
4subdivisions of the state, public school corporations, and all
5officers, boards, or commissions empowered by law to enter
6into contracts for the construction of public improvements,
7excluding the state board of regents and the state department
8of transportation.
9 Sec. 2. Section 26.7, subsection 2, Code 2019, is amended
10to read as follows:
112. The notice to bidders may shall provide that bids will
12be received for the furnishing of all labor and materials and
13furnishing or installing equipment under one contract, or. The
14notice may also provide that bids will be received for parts
15thereof in separate sections.
16 Sec. 3. Section 262.34, Code 2019, is amended by striking
17the section and inserting in lieu thereof the following:
18262.34 Lease-purchase contracts.
19A contract for construction by a private party of property to
20be lease-purchased by the state board of regents is a contract
21for a public improvement under section 26.2, subsection 3. If
22the estimated cost of the property to be lease-purchased that
23is renovated, repaired, or involves new construction exceeds
24the competitive bid threshold set in section 26.3, the state
25board of regents shall comply with the competitive bidding
26requirements of section 26.3.
27 Sec. 4. Section 262.56, Code 2019, is amended to read as
28follows:
29262.56 Authorization — contracts — title.
30Subject to and in accordance with the provisions of this
31subchapter the state board of regents is hereby authorized
32to undertake and carry out any project as defined in section
33262.55 at the state university of Iowa, Iowa state university
34of science and technology, and the university of northern
35Iowa and to operate, control, maintain and manage student
-1-1residence halls and dormitories, including dining and other
2incidental facilities, and additions to such buildings at each
3of said institutions. All contracts for the construction,
4reconstruction, completion, equipment, improvement, repair or
5remodeling of any buildings, additions or facilities shall be
6let in accordance with the provisions of section 262.34 chapter
726. The title to all real estate acquired under the provisions
8of this subchapter and the improvements erected thereon shall
9be taken and held in the name of the state of Iowa. The board
10is authorized to rent the rooms in such residence halls and
11dormitories to the students, officers, guests and employees
12of said institutions at such rates, fees or rentals as will
13provide a reasonable return upon the investment, but which will
14in any event produce net rents, profits and income sufficient
15to insure the payment of the principal of and interest on all
16bonds or notes issued to pay any part of the cost of any project
17and refunding bonds or notes issued pursuant to the provisions
18of this subchapter.
19 Sec. 5. Section 262A.4, Code 2019, is amended to read as
20follows:
21262A.4 Authorization of general assembly and governor.
22Subject to and in accordance with the provisions of this
23chapter, the state board of regents after authorization by a
24constitutional majority of each house of the general assembly
25and approval by the governor may undertake and carry out any
26project as defined in this chapter at the institutions now
27or hereafter under the jurisdiction of the board. The state
28board of regents is authorized to operate, control, maintain,
29and manage buildings and facilities and additions to such
30buildings and facilities at each of said institutions. All
31contracts for the construction, reconstruction, completion,
32equipment, improvement, repair or remodeling of any buildings,
33additions, or facilities shall be let in accordance with the
34provisions of section 262.34 chapter 26. The title to all real
35estate acquired under the provisions of this chapter and the
-2-1improvements erected thereon shall be taken and held in the
2name of the state of Iowa.
3 Sec. 6. Section 263A.2, Code 2019, is amended to read as
4follows:
5263A.2 Authorization of general assembly and governor.
6Subject to and in accordance with the provisions of this
7chapter, the state board of regents may undertake and carry out
8any project as defined in this chapter at the state university
9of Iowa. The state board of regents is authorized to operate,
10control, maintain, and manage buildings and facilities and
11additions to such buildings and facilities at said institution.
12All contracts for the construction, reconstruction, completion,
13equipment, improvement, repair, or remodeling of any buildings,
14additions, or facilities shall be let in accordance with the
15provisions of section 262.34 chapter 26. The title to all real
16estate acquired under the provisions of this chapter and the
17improvements erected thereon shall be taken and held in the
18name of the state of Iowa.
19 Sec. 7. Section 314.1, subsection 2, Code 2019, is amended
20to read as follows:
212. Notwithstanding any other provision of law to the
22contrary, a public improvement that involves the construction,
23reconstruction, or improvement of a highway, bridge, or culvert
24and that has a cost in excess of the applicable threshold
25in section 73A.18, 262.34, 297.7, 309.40, 310.14, or 313.10,
26as modified by the bid threshold subcommittee pursuant to
27section 314.1B, shall be advertised and let for bid, except
28such public improvements that involve emergency work pursuant
29to section 309.40A, 313.10, or 384.103, subsection 2. For a
30city having a population of fifty thousand or less, a public
31improvement that involves the construction, reconstruction, or
32improvement of a highway, bridge, or culvert that has a cost
33in excess of twenty-five thousand dollars, as modified by the
34bid threshold subcommittee pursuant to section 314.1B, shall be
35advertised and let for bid, excluding emergency work. However,
-3-1a public improvement that has an estimated total cost to a
2city in excess of a threshold of fifty thousand dollars, as
3modified by the bid threshold subcommittee pursuant to section
4314.1B, and that involves the construction, reconstruction,
5or improvement of a highway, bridge, or culvert that is under
6the jurisdiction of a city with a population of more than
7fifty thousand, shall be advertised and let for bid. Cities
8required to competitively bid highway, bridge, or culvert work
9shall do so in compliance with the contract letting procedures
10of sections 26.3 through 26.12. The state board of regents
11shall competitively bid highway, bridge, or culvert work in
12compliance with the contract letting procedures of sections
1326.3 through 26.12.
14EXPLANATION
15The inclusion of this explanation does not constitute agreement with
16the explanation’s substance by the members of the general assembly.
17Under current law, the state board of regents is not included
18in the definition of “governmental entity” for purposes of
19Code chapter 26, which governs public construction bidding
20procedures. Additionally, current law gives governmental
21entities the option of including on a notice to bidders whether
22the proposed bid will be for the furnishing of all labor and
23materials and furnishing or installing equipment under one
24contract or for parts thereof in separate sections.
25This bill eliminates the exclusion of the state board of
26regents from the definition of “governmental entity”. The
27bill makes conforming changes to reflect the changed bidding
28procedures for the state board of regents. The bill also
29requires a notice to bidders to provide that bids will be
30received for the furnishing of all labor and materials and
31furnishing or installing equipment under one contract. In
32addition, a governmental entity may also include in the notice
33that bids will be received for parts of a project in separate
34sections.
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2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 26.2, subsection 2, Code 2019, is amended
2to read as follows:
32. “Governmental entity” means the state, political
4subdivisions of the state, public school corporations, and all
5officers, boards, or commissions empowered by law to enter
6into contracts for the construction of public improvements,
7excluding the state board of regents and the state department
8of transportation.
9 Sec. 2. Section 26.7, subsection 2, Code 2019, is amended
10to read as follows:
112. The notice to bidders may shall provide that bids will
12be received for the furnishing of all labor and materials and
13furnishing or installing equipment under one contract, or. The
14notice may also provide that bids will be received for parts
15thereof in separate sections.
16 Sec. 3. Section 262.34, Code 2019, is amended by striking
17the section and inserting in lieu thereof the following:
18262.34 Lease-purchase contracts.
19A contract for construction by a private party of property to
20be lease-purchased by the state board of regents is a contract
21for a public improvement under section 26.2, subsection 3. If
22the estimated cost of the property to be lease-purchased that
23is renovated, repaired, or involves new construction exceeds
24the competitive bid threshold set in section 26.3, the state
25board of regents shall comply with the competitive bidding
26requirements of section 26.3.
27 Sec. 4. Section 262.56, Code 2019, is amended to read as
28follows:
29262.56 Authorization — contracts — title.
30Subject to and in accordance with the provisions of this
31subchapter the state board of regents is hereby authorized
32to undertake and carry out any project as defined in section
33262.55 at the state university of Iowa, Iowa state university
34of science and technology, and the university of northern
35Iowa and to operate, control, maintain and manage student
-1-1residence halls and dormitories, including dining and other
2incidental facilities, and additions to such buildings at each
3of said institutions. All contracts for the construction,
4reconstruction, completion, equipment, improvement, repair or
5remodeling of any buildings, additions or facilities shall be
6let in accordance with the provisions of section 262.34 chapter
726. The title to all real estate acquired under the provisions
8of this subchapter and the improvements erected thereon shall
9be taken and held in the name of the state of Iowa. The board
10is authorized to rent the rooms in such residence halls and
11dormitories to the students, officers, guests and employees
12of said institutions at such rates, fees or rentals as will
13provide a reasonable return upon the investment, but which will
14in any event produce net rents, profits and income sufficient
15to insure the payment of the principal of and interest on all
16bonds or notes issued to pay any part of the cost of any project
17and refunding bonds or notes issued pursuant to the provisions
18of this subchapter.
19 Sec. 5. Section 262A.4, Code 2019, is amended to read as
20follows:
21262A.4 Authorization of general assembly and governor.
22Subject to and in accordance with the provisions of this
23chapter, the state board of regents after authorization by a
24constitutional majority of each house of the general assembly
25and approval by the governor may undertake and carry out any
26project as defined in this chapter at the institutions now
27or hereafter under the jurisdiction of the board. The state
28board of regents is authorized to operate, control, maintain,
29and manage buildings and facilities and additions to such
30buildings and facilities at each of said institutions. All
31contracts for the construction, reconstruction, completion,
32equipment, improvement, repair or remodeling of any buildings,
33additions, or facilities shall be let in accordance with the
34provisions of section 262.34 chapter 26. The title to all real
35estate acquired under the provisions of this chapter and the
-2-1improvements erected thereon shall be taken and held in the
2name of the state of Iowa.
3 Sec. 6. Section 263A.2, Code 2019, is amended to read as
4follows:
5263A.2 Authorization of general assembly and governor.
6Subject to and in accordance with the provisions of this
7chapter, the state board of regents may undertake and carry out
8any project as defined in this chapter at the state university
9of Iowa. The state board of regents is authorized to operate,
10control, maintain, and manage buildings and facilities and
11additions to such buildings and facilities at said institution.
12All contracts for the construction, reconstruction, completion,
13equipment, improvement, repair, or remodeling of any buildings,
14additions, or facilities shall be let in accordance with the
15provisions of section 262.34 chapter 26. The title to all real
16estate acquired under the provisions of this chapter and the
17improvements erected thereon shall be taken and held in the
18name of the state of Iowa.
19 Sec. 7. Section 314.1, subsection 2, Code 2019, is amended
20to read as follows:
212. Notwithstanding any other provision of law to the
22contrary, a public improvement that involves the construction,
23reconstruction, or improvement of a highway, bridge, or culvert
24and that has a cost in excess of the applicable threshold
25in section 73A.18, 262.34, 297.7, 309.40, 310.14, or 313.10,
26as modified by the bid threshold subcommittee pursuant to
27section 314.1B, shall be advertised and let for bid, except
28such public improvements that involve emergency work pursuant
29to section 309.40A, 313.10, or 384.103, subsection 2. For a
30city having a population of fifty thousand or less, a public
31improvement that involves the construction, reconstruction, or
32improvement of a highway, bridge, or culvert that has a cost
33in excess of twenty-five thousand dollars, as modified by the
34bid threshold subcommittee pursuant to section 314.1B, shall be
35advertised and let for bid, excluding emergency work. However,
-3-1a public improvement that has an estimated total cost to a
2city in excess of a threshold of fifty thousand dollars, as
3modified by the bid threshold subcommittee pursuant to section
4314.1B, and that involves the construction, reconstruction,
5or improvement of a highway, bridge, or culvert that is under
6the jurisdiction of a city with a population of more than
7fifty thousand, shall be advertised and let for bid. Cities
8required to competitively bid highway, bridge, or culvert work
9shall do so in compliance with the contract letting procedures
10of sections 26.3 through 26.12. The state board of regents
11shall competitively bid highway, bridge, or culvert work in
12compliance with the contract letting procedures of sections
1326.3 through 26.12.
14EXPLANATION
15The inclusion of this explanation does not constitute agreement with
16the explanation’s substance by the members of the general assembly.
17Under current law, the state board of regents is not included
18in the definition of “governmental entity” for purposes of
19Code chapter 26, which governs public construction bidding
20procedures. Additionally, current law gives governmental
21entities the option of including on a notice to bidders whether
22the proposed bid will be for the furnishing of all labor and
23materials and furnishing or installing equipment under one
24contract or for parts thereof in separate sections.
25This bill eliminates the exclusion of the state board of
26regents from the definition of “governmental entity”. The
27bill makes conforming changes to reflect the changed bidding
28procedures for the state board of regents. The bill also
29requires a notice to bidders to provide that bids will be
30received for the furnishing of all labor and materials and
31furnishing or installing equipment under one contract. In
32addition, a governmental entity may also include in the notice
33that bids will be received for parts of a project in separate
34sections.
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