Bill Text: IA SSB3110 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act regarding competitive bidding requirements for construction by a private party of property to be leased or lease-purchased by certain government entities and including effective date and applicability provisions.
Spectrum: Committee Bill
Status: (N/A - Dead) 2018-02-01 - Subcommittee Meeting: 02/06/2018 3:30PM Senate Lobbyist Lounge [SSB3110 Detail]
Download: Iowa-2017-SSB3110-Introduced.html
Senate
Study
Bill
3110
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
STATE
GOVERNMENT
BILL
BY
CHAIRPERSON
SMITH)
A
BILL
FOR
An
Act
regarding
competitive
bidding
requirements
for
1
construction
by
a
private
party
of
property
to
be
leased
or
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:
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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
private
3
party
of
property
to
be
leased
or
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
leased
or
lease-purchased
that
is
renovated,
repaired,
or
7
involves
new
construction
exceeds
the
competitive
bid
threshold
8
in
section
26.3,
the
state
agency
shall
comply
with
the
9
competitive
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,
industrial
aid
projects
authorized
22
under
chapter
419
,
emergency
work
or
repair
or
maintenance
23
work
performed
by
employees
of
a
governmental
entity,
and
24
excluding
a
highway,
bridge,
or
culvert
project,
and
excluding
25
construction
or
repair
or
maintenance
work
performed
for
a
city
26
utility
under
chapter
388
by
its
employees
or
performed
for
a
27
rural
water
district
under
chapter
357A
by
its
employees.
28
Sec.
3.
Section
26.2,
Code
2018,
is
amended
by
adding
the
29
following
new
subsection:
30
NEW
SUBSECTION
.
5.
“Under
the
control
of
a
governmental
31
entity”
includes
determining
the
construction
work
to
be
32
performed
or
establishing
the
specifications
for
a
building
or
33
construction
work
to
be
occupied
by
the
governmental
entity.
34
Sec.
4.
Section
260C.38,
subsection
3,
Code
2018,
is
amended
35
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to
read
as
follows:
1
3.
Before
Subject
to
subsection
4,
before
entering
into
a
2
lease
agreement
with
a
purchase
option
for
a
building
to
be
3
constructed,
or
placed,
upon
real
estate
owned
by
the
community
4
college,
the
board
shall
first
adopt
plans
and
specifications
5
for
the
proposed
building
which
it
considers
suitable
for
the
6
intended
use,
and
the
board
shall
also
adopt
the
proposed
7
terms
of
the
lease
agreement
and
purchase
option.
The
board
8
shall
invite
bids,
by
advertisement
published
once
each
week
9
for
two
consecutive
weeks
in
the
county
where
the
building
is
10
to
be
located.
The
lease
agreement
shall
be
awarded
to
the
11
lowest
responsible
bidder,
or
the
board
may
reject
all
bids
and
12
readvertise
for
new
bids.
13
Sec.
5.
Section
260C.38,
Code
2018,
is
amended
by
adding
the
14
following
new
subsection:
15
NEW
SUBSECTION
.
4.
A
contract
for
construction
by
a
16
private
party
of
property
to
be
leased
or
lease-purchased
by
17
a
community
college
is
a
contract
for
a
public
improvement
as
18
defined
in
section
26.2.
If
the
estimated
cost
of
the
property
19
to
be
leased
or
lease-purchased
that
is
renovated,
repaired,
or
20
involves
new
construction
exceeds
the
competitive
bid
threshold
21
in
section
26.3,
the
board
shall
comply
with
the
competitive
22
bidding
requirements
of
section
26.3.
23
Sec.
6.
Section
262.34,
subsection
1,
Code
2018,
is
amended
24
to
read
as
follows:
25
1.
When
the
estimated
cost
of
construction,
repairs,
26
or
improvement
of
buildings
or
grounds
under
charge
of
the
27
state
board
of
regents
,
including
construction,
renovation,
28
or
repairs
by
a
private
party
of
a
property
to
be
leased
or
29
lease-purchased
by
the
board
exceeds
one
hundred
thousand
30
dollars,
the
board
shall
advertise
for
bids
for
the
31
contemplated
improvement
or
construction
and
shall
let
the
work
32
to
the
lowest
responsible
bidder.
However,
if
in
the
judgment
33
of
the
board
bids
received
are
not
acceptable,
the
board
may
34
reject
all
bids
and
proceed
with
the
construction,
repair,
or
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improvement
by
a
method
as
the
board
may
determine.
All
plans
1
and
specifications
for
repairs
or
construction,
together
with
2
bids
on
the
plans
or
specifications,
shall
be
filed
by
the
3
board
and
be
open
for
public
inspection.
All
bids
submitted
4
under
this
section
shall
be
accompanied
by
a
deposit
of
money,
5
a
certified
check,
or
a
credit
union
certified
share
draft
in
6
an
amount
as
the
board
may
prescribe.
7
Sec.
7.
Section
278.1,
subsection
2,
paragraph
b,
Code
2018,
8
is
amended
to
read
as
follows:
9
b.
Before
Subject
to
paragraph
“c”
,
before
entering
into
10
a
rental
or
lease-purchase
option
contract,
authorized
by
the
11
electors,
the
board
shall
first
adopt
plans
and
specifications
12
for
a
building
or
buildings
which
it
considers
suitable
for
the
13
intended
use
and
also
adopt
a
form
of
rental
or
lease-purchase
14
option
contract.
The
board
shall
then
invite
bids
thereon,
15
by
advertisement
published
once
each
week
for
two
consecutive
16
weeks,
in
a
newspaper
published
in
the
county
in
which
the
17
building
or
buildings
are
to
be
located,
and
the
rental
or
18
lease-purchase
option
contract
shall
be
awarded
to
the
lowest
19
responsible
bidder,
but
the
board
may
reject
any
and
all
bids
20
and
advertise
for
new
bids.
21
Sec.
8.
Section
278.1,
subsection
2,
Code
2018,
is
amended
22
by
adding
the
following
new
paragraph:
23
NEW
PARAGRAPH
.
c.
A
contract
for
construction
by
a
private
24
party
of
property
to
be
leased
or
lease-purchased
by
a
public
25
school
corporation
is
a
contract
for
a
public
improvement
as
26
defined
in
section
26.2.
If
the
estimated
cost
of
the
property
27
to
be
leased
or
lease-purchased
that
is
renovated,
repaired,
or
28
involves
new
construction
exceeds
the
competitive
bid
threshold
29
in
section
26.3,
the
board
shall
comply
with
the
competitive
30
bidding
requirements
of
section
26.3.
31
Sec.
9.
Section
298.3,
subsection
1,
paragraph
j,
Code
2018,
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
for
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construction
by
a
private
party
of
property
to
be
leased
or
1
lease-purchased
by
a
public
school
corporation
is
a
contract
2
for
a
public
improvement
as
defined
in
section
26.2.
If
the
3
estimated
cost
of
the
property
to
be
leased
or
lease-purchased
4
that
is
renovated,
repaired,
or
involves
new
construction
in
5
excess
of
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
2018,
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
under
and
is
subject
to
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
2018,
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
,
except
for
purposes
of
section
26.12
.
However,
26
if
a
lease-purchase
contract
is
funded
in
advance
by
means
of
27
the
lessor
depositing
moneys
to
be
administered
by
a
city,
28
with
the
city’s
obligations
to
make
rent
payments
commencing
29
with
its
receipt
of
moneys,
a
contract
for
construction
of
30
the
property
in
question
awarded
by
the
city
is
subject
to
31
chapter
26
.
If
the
estimated
cost
the
property
to
be
leased
32
or
lease-purchased
that
is
renovated,
repaired,
or
involves
33
new
construction
exceeds
the
competitive
bid
threshold
set
34
in
26.3,
the
city
shall
comply
with
the
competitive
building
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requirements
of
section
26.3.
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
leases
and
4
lease-purchase
contracts
entered
into
on
or
after
the
effective
5
date
of
this
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
which
are
14
estimated
to
cost
above
a
threshold
amount.
15
The
bill
expands
the
definition
of
“public
improvement”
to
16
include
work
that
a
governmental
entity
commits
to
pay
for
in
17
whole
or
in
part
prior
to
the
construction
commencing.
The
18
bill
defines
“under
the
control
of
a
governmental
entity”.
19
The
bill
makes
a
contract
for
construction
by
a
private
20
party
of
a
property
to
be
leased
or
lease-purchased
by
21
the
state
of
Iowa,
a
community
college,
or
a
public
school
22
corporation
a
contract
for
public
improvement
under
Code
23
section
26.2.
The
state
of
Iowa,
a
community
college,
or
a
24
public
school
corporation
must
therefore
take
competitive
bids
25
for
renovations,
repairs,
or
new
construction
on
a
property
to
26
be
leased
or
lease-purchased
that
exceeds
the
competitive
bid
27
threshold
set
in
Code
section
26.3.
28
Current
law
requires
the
state
board
of
regents
to
29
competitively
bid
for
construction,
repairs,
or
improvement
30
of
buildings
or
grounds
under
its
charge
when
the
estimated
31
cost
of
the
work
exceeds
$100,000.
The
bill
requires
the
state
32
board
of
regents
to
competitively
bid
for
construction
by
a
33
private
party
of
a
property
to
be
leased
or
lease-purchased
34
by
the
state
board
of
regents
if
the
estimated
cost
of
that
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constructions
exceeds
$100,000.
1
Currently,
a
contract
for
construction
by
a
private
party
of
2
a
property
to
be
leased
or
lease-purchased
by
a
county
is
not
a
3
contract
for
public
improvement
under
Code
section
331.341(1),
4
unless
a
lease-purchase
contract
is
funded
in
advance
by
means
5
of
the
lessor
depositing
moneys
to
be
administered
by
the
6
county,
with
the
county’s
obligation
to
make
rent
payments
7
commencing
with
its
receipt
of
moneys.
8
Under
the
bill
all
lease
and
lease-purchase
contracts
by
a
9
county
are
contracts
for
public
improvements
and
are
subject
to
10
Code
section
331.341.
By
operation
of
law,
such
contracts
that
11
exceed
the
threshold
amount
must
comply
with
the
requirements
12
of
Code
chapter
26.
13
Under
current
law,
a
contract
for
construction
by
a
private
14
party
of
a
property
to
be
leased
or
lease-purchased
by
a
15
city
is
not
a
contract
for
public
improvement
under
Code
16
section
26.2,
except
for
purposes
of
Code
section
26.12.
A
17
lease-purchase
contract
funded
in
advance
by
means
of
the
18
lessor
depositing
moneys
to
be
administered
by
the
city,
with
19
the
city’s
obligation
to
make
rent
payments
commencing
with
its
20
receipt
of
moneys,
is
also
subject
to
Code
chapter
26.
21
The
bill
makes
this
type
of
contract
a
contract
for
public
22
improvement
under
Code
section
26.2.
A
city
must
therefore
23
take
competitive
bids
for
renovations,
repairs,
or
new
24
construction
on
a
property
to
be
leased
or
lease-purchased
that
25
exceeds
the
competitive
bid
threshold
in
Code
section
26.3.
26
The
bill
is
effective
upon
enactment
and
applies
to
leases
27
and
lease-purchase
contracts
entered
into
on
or
after
the
28
effective
date
of
the
bill.
29
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