Bill Text: IA SF482 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to competitive bidding requirements for construction by a private party of property to be lease-purchased by certain government entities and including effective date and applicability provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-06 - Subcommittee: Whiting, Schultz, and T. Taylor. S.J. 485. [SF482 Detail]
Download: Iowa-2019-SF482-Introduced.html
Senate
File
482
-
Introduced
SENATE
FILE
482
BY
BOULTON
A
BILL
FOR
An
Act
relating
to
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
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Section
1.
Section
8.46,
subsection
4,
Code
2019,
is
amended
1
by
striking
the
subsection.
2
Sec.
2.
Section
26.2,
subsection
3,
paragraph
a,
Code
2019,
3
is
amended
to
read
as
follows:
4
a.
“Public
improvement”
means
a
building
or
construction
5
work
which
that
is
constructed
under
the
control
of
a
6
governmental
entity
and
for
which
either
of
the
following
7
applies:
8
(1)
Has
been
is
paid
for
in
whole
or
in
part
with
funds
of
9
the
governmental
entity.
10
(2)
A
commitment
has
been
made
prior
to
construction
by
the
11
governmental
entity
to
pay
for
the
building
or
construction
12
work
in
whole
or
in
part
with
funds
of
the
governmental
entity.
13
Sec.
3.
Section
26.2,
subsection
5,
Code
2019,
is
amended
by
14
striking
the
subsection.
15
Sec.
4.
Section
260C.38,
subsection
3,
Code
2019,
is
amended
16
to
read
as
follows:
17
3.
Subject
to
subsection
4
,
before
Before
entering
into
a
18
lease
agreement
with
a
purchase
option
for
a
building
to
be
19
constructed,
or
placed,
upon
real
estate
owned
by
the
community
20
college,
the
board
shall
first
adopt
plans
and
specifications
21
for
the
proposed
building
which
it
considers
suitable
for
the
22
intended
use,
and
the
board
shall
also
adopt
the
proposed
23
terms
of
the
lease
agreement
and
purchase
option.
The
board
24
shall
invite
bids,
by
advertisement
published
once
each
week
25
for
two
consecutive
weeks
in
the
county
where
the
building
is
26
to
be
located.
The
lease
agreement
shall
be
awarded
to
the
27
lowest
responsible
bidder,
or
the
board
may
reject
all
bids
and
28
readvertise
for
new
bids.
29
Sec.
5.
Section
260C.38,
subsection
4,
Code
2019,
is
amended
30
by
striking
the
subsection.
31
Sec.
6.
Section
262.34,
subsection
1,
Code
2019,
is
amended
32
to
read
as
follows:
33
1.
When
the
estimated
cost
of
construction,
repairs,
or
34
improvement
of
buildings
or
grounds
under
charge
of
the
state
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board
of
regents
,
including
construction,
renovation,
or
1
repairs
by
a
private
party
of
a
property
to
be
lease-purchased
2
by
the
board
exceeds
one
hundred
thousand
dollars,
the
board
3
shall
advertise
for
bids
for
the
contemplated
improvement
or
4
construction
and
shall
let
the
work
to
the
lowest
responsible
5
bidder.
However,
if
in
the
judgment
of
the
board
bids
received
6
are
not
acceptable,
the
board
may
reject
all
bids
and
proceed
7
with
the
construction,
repair,
or
improvement
by
a
method
as
8
the
board
may
determine.
All
plans
and
specifications
for
9
repairs
or
construction,
together
with
bids
on
the
plans
or
10
specifications,
shall
be
filed
by
the
board
and
be
open
for
11
public
inspection.
All
bids
submitted
under
this
section
shall
12
be
accompanied
by
a
deposit
of
money,
a
certified
check,
or
a
13
credit
union
certified
share
draft
in
an
amount
as
the
board
14
may
prescribe.
15
Sec.
7.
Section
278.1,
subsection
2,
paragraph
b,
Code
2019,
16
is
amended
to
read
as
follows:
17
b.
Subject
to
paragraph
“c”
,
before
Before
entering
into
18
a
rental
or
lease-purchase
option
contract,
authorized
by
the
19
electors,
the
board
shall
first
adopt
plans
and
specifications
20
for
a
building
or
buildings
which
it
considers
suitable
for
the
21
intended
use
and
also
adopt
a
form
of
rental
or
lease-purchase
22
option
contract.
The
board
shall
then
invite
bids
thereon,
23
by
advertisement
published
once
each
week
for
two
consecutive
24
weeks,
in
a
newspaper
published
in
the
county
in
which
the
25
building
or
buildings
are
to
be
located,
and
the
rental
or
26
lease-purchase
option
contract
shall
be
awarded
to
the
lowest
27
responsible
bidder,
but
the
board
may
reject
any
and
all
bids
28
and
advertise
for
new
bids.
29
Sec.
8.
Section
278.1,
subsection
2,
paragraph
c,
Code
2019,
30
is
amended
by
striking
the
paragraph.
31
Sec.
9.
Section
298.3,
subsection
1,
paragraph
j,
Code
2019,
32
is
amended
to
read
as
follows:
33
j.
The
purchase
of
buildings
or
lease-purchase
option
34
agreements
for
school
buildings.
However,
a
contract
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for
construction
by
a
private
party
of
property
to
be
1
lease-purchased
by
a
public
school
corporation
is
a
contract
2
for
a
public
improvement
as
defined
in
section
26.2
.
If
3
the
estimated
cost
of
the
property
to
be
lease-purchased
4
that
is
renovated,
repaired,
or
involves
new
construction
5
exceeds
the
competitive
bid
threshold
in
section
26.3
,
the
6
board
of
directors
shall
comply
with
the
competitive
bidding
7
requirements
of
section
26.3
.
8
Sec.
10.
Section
331.301,
subsection
10,
paragraph
i,
Code
9
2019,
is
amended
to
read
as
follows:
10
i.
A
contract
for
construction
by
a
private
party
of
11
property
to
be
leased
or
lease-purchased
by
a
county
is
not
12
a
contract
for
a
public
improvement
and
is
subject
to
under
13
section
331.341,
subsection
1
.
However,
if
a
lease-purchase
14
contract
is
funded
in
advance
by
means
of
the
lessor
depositing
15
moneys
to
be
administered
by
a
county,
with
the
county’s
16
obligation
to
make
rent
payments
commencing
with
its
receipt
of
17
moneys,
a
contract
for
construction
of
the
property
in
question
18
awarded
by
the
county
is
a
public
improvement
and
is
subject
to
19
section
331.341,
subsection
1.
20
Sec.
11.
Section
364.4,
subsection
4,
paragraph
i,
Code
21
2019,
is
amended
to
read
as
follows:
22
i.
A
contract
for
construction
by
a
private
party
of
23
property
to
be
leased
or
lease-purchased
by
a
city
is
not
24
a
contract
for
a
public
improvement
under
section
26.2,
25
subsection
3
.
If
the
estimated
cost
of
the
property
to
be
26
lease-purchased
that
is
renovated,
repaired,
or
involves
27
new
construction
exceeds
the
competitive
bid
threshold
set
28
in
section
26.3
,
the
city
shall
comply
with
the
competitive
29
bidding
requirements
of
section
26.3
,
except
for
purposes
of
30
section
26.12.
However,
if
a
lease-purchase
contract
is
funded
31
in
advance
by
means
of
the
lessor
depositing
moneys
to
be
32
administered
by
a
city,
with
the
city’s
obligation
to
make
rent
33
payments
commencing
with
its
receipt
of
moneys,
a
contract
for
34
construction
of
the
property
in
question
awarded
by
the
city
is
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subject
to
chapter
26
.
1
Sec.
12.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
2
immediate
importance,
takes
effect
upon
enactment.
3
Sec.
13.
APPLICABILITY.
This
Act
applies
to
lease-purchase
4
agreements
entered
into
on
or
after
the
effective
date
of
this
5
Act.
6
EXPLANATION
7
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
8
the
explanation’s
substance
by
the
members
of
the
general
assembly.
9
This
bill
relates
to
competitive
bidding
requirements
for
10
construction
on
properties
that
certain
government
entities
11
will
lease
or
lease-purchase.
12
Code
chapter
26
(public
construction
bidding)
imposes
public
13
bidding
requirements
on
certain
public
improvements
that
are
14
estimated
to
cost
above
a
threshold
amount.
15
Under
current
law,
a
contract
for
construction
by
a
private
16
party
of
a
property
to
be
lease-purchased
by
the
state
of
Iowa,
17
a
community
college,
a
public
school
corporation,
or
a
city
is
18
a
contract
for
a
public
improvement
under
Code
section
26.2.
19
Under
current
law,
all
lease-purchase
contracts
by
a
county
20
are
contracts
for
public
improvements
and
are
subject
to
Code
21
section
331.341.
By
operation
of
law,
such
contracts
that
22
exceed
the
threshold
amount
must
comply
with
the
requirements
23
of
Code
chapter
26.
The
state
of
Iowa,
a
community
college,
a
24
public
school
corporation,
a
city,
or
a
county
must
therefore
25
take
competitive
bids
pursuant
to
the
process
set
forth
in
Code
26
chapter
26
for
renovations,
repairs,
or
new
construction
on
a
27
property
to
be
lease-purchased
that
exceeds
the
competitive
28
bid
threshold
set
in
Code
section
26.3.
In
addition,
current
29
law
states
that
the
construction,
renovation,
or
repairs
by
a
30
private
party
of
property
to
be
lease-purchased
by
the
board
31
of
regents
is
subject
to
competitive
bidding
requirements
when
32
the
cost
of
the
construction,
renovation,
or
repairs
exceeds
33
$100,000.
34
Under
the
bill,
a
contract
for
construction
by
a
private
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party
of
property
to
be
lease-purchased
by
the
state
of
Iowa,
1
a
community
college,
or
a
public
school
corporation
is
not
2
considered
a
contract
for
a
public
improvement
for
purposes
3
of
Code
chapter
26.
The
bill
also
removes
the
construction,
4
renovation,
or
repairs
by
a
private
party
of
property
to
be
5
lease-purchased
by
the
state
board
of
regents
from
competitive
6
bidding
requirements.
7
Under
the
bill,
a
contract
for
construction
by
a
private
8
party
of
a
property
to
be
lease-purchased
by
a
county
is
not
9
a
contract
for
public
improvement
under
Code
section
331.341,
10
subsection
1,
unless
a
lease-purchase
contract
is
funded
11
in
advance
by
means
of
the
lessor
depositing
moneys
to
be
12
administered
by
the
county,
with
the
county’s
obligation
to
13
make
rent
payments
commencing
with
its
receipt
of
moneys.
14
Additionally,
a
contract
for
construction
by
a
private
party
15
of
a
property
to
be
lease-purchased
by
a
city
is
not
a
contract
16
for
public
improvement
under
Code
section
26.2,
except
for
17
purposes
of
Code
section
26.12.
However,
a
lease-purchase
18
contract
funded
in
advance
by
means
of
the
lessor
depositing
19
moneys
to
be
administered
by
the
city,
with
the
city’s
20
obligation
to
make
rent
payments
commencing
with
its
receipt
of
21
moneys,
is
subject
to
Code
chapter
26.
22
The
bill
is
effective
upon
enactment
and
applies
to
23
lease-purchase
contracts
entered
into
on
or
after
the
effective
24
date
of
the
bill.
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