Bill Text: IA SF142 | 2021-2022 | 89th 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) 2021-02-09 - Subcommittee reassigned: Brown, Boulton, and Schultz. S.J. 298. [SF142 Detail]
Download: Iowa-2021-SF142-Introduced.html
Senate
File
142
-
Introduced
SENATE
FILE
142
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
2021,
is
amended
1
by
striking
the
subsection.
2
Sec.
2.
Section
26.2,
subsection
3,
paragraph
a,
Code
2021,
3
is
amended
to
read
as
follows:
4
a.
“Public
improvement”
means
a
building
or
construction
5
work
that
is
constructed
under
the
control
of
a
governmental
6
entity
and
for
which
either
of
the
following
applies:
7
(1)
Has
been
is
paid
for
in
whole
or
in
part
with
funds
of
8
the
governmental
entity.
9
(2)
A
commitment
has
been
made
prior
to
construction
by
the
10
governmental
entity
to
pay
for
the
building
or
construction
11
work
in
whole
or
in
part
with
funds
of
the
governmental
entity.
12
Sec.
3.
Section
26.2,
subsection
5,
Code
2021,
is
amended
by
13
striking
the
subsection.
14
Sec.
4.
Section
260C.38,
subsection
3,
Code
2021,
is
amended
15
to
read
as
follows:
16
3.
Subject
to
subsection
4
,
before
Before
entering
into
a
17
lease
agreement
with
a
purchase
option
for
a
building
to
be
18
constructed,
or
placed,
upon
real
estate
owned
by
the
community
19
college,
the
board
shall
first
adopt
plans
and
specifications
20
for
the
proposed
building
which
it
considers
suitable
for
the
21
intended
use,
and
the
board
shall
also
adopt
the
proposed
22
terms
of
the
lease
agreement
and
purchase
option.
The
board
23
shall
invite
bids,
by
advertisement
published
once
each
week
24
for
two
consecutive
weeks
in
the
county
where
the
building
is
25
to
be
located.
The
lease
agreement
shall
be
awarded
to
the
26
lowest
responsible
bidder,
or
the
board
may
reject
all
bids
and
27
readvertise
for
new
bids.
28
Sec.
5.
Section
260C.38,
subsection
4,
Code
2021,
is
amended
29
by
striking
the
subsection.
30
Sec.
6.
Section
262.34,
subsection
1,
Code
2021,
is
amended
31
to
read
as
follows:
32
1.
When
the
estimated
cost
of
construction,
repairs,
or
33
improvement
of
buildings
or
grounds
under
charge
of
the
state
34
board
of
regents
,
including
construction,
renovation,
or
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repairs
by
a
private
party
of
a
property
to
be
lease-purchased
1
by
the
board,
exceeds
one
hundred
thousand
dollars,
the
board
2
shall
advertise
for
bids
for
the
contemplated
improvement
or
3
construction
and
shall
let
the
work
to
the
lowest
responsible
4
bidder.
However,
if
in
the
judgment
of
the
board
bids
received
5
are
not
acceptable,
the
board
may
reject
all
bids
and
proceed
6
with
the
construction,
repair,
or
improvement
by
a
method
as
7
the
board
may
determine.
All
plans
and
specifications
for
8
repairs
or
construction,
together
with
bids
on
the
plans
or
9
specifications,
shall
be
filed
by
the
board
and
be
open
for
10
public
inspection.
All
bids
submitted
under
this
section
shall
11
be
accompanied
by
a
deposit
of
money,
a
certified
check,
or
a
12
credit
union
certified
share
draft
in
an
amount
as
the
board
13
may
prescribe.
14
Sec.
7.
Section
278.1,
subsection
2,
paragraph
b,
Code
2021,
15
is
amended
to
read
as
follows:
16
b.
Subject
to
paragraph
“c”
,
before
Before
entering
into
17
a
rental
or
lease-purchase
option
contract,
authorized
by
the
18
electors,
the
board
shall
first
adopt
plans
and
specifications
19
for
a
building
or
buildings
which
it
considers
suitable
for
the
20
intended
use
and
also
adopt
a
form
of
rental
or
lease-purchase
21
option
contract.
The
board
shall
then
invite
bids
thereon,
22
by
advertisement
published
once
each
week
for
two
consecutive
23
weeks,
in
a
newspaper
published
in
the
county
in
which
the
24
building
or
buildings
are
to
be
located,
and
the
rental
or
25
lease-purchase
option
contract
shall
be
awarded
to
the
lowest
26
responsible
bidder,
but
the
board
may
reject
any
and
all
bids
27
and
advertise
for
new
bids.
28
Sec.
8.
Section
278.1,
subsection
2,
paragraph
c,
Code
2021,
29
is
amended
by
striking
the
paragraph.
30
Sec.
9.
Section
298.3,
subsection
1,
paragraph
j,
Code
2021,
31
is
amended
to
read
as
follows:
32
j.
The
purchase
of
buildings
or
lease-purchase
option
33
agreements
for
school
buildings.
However,
a
contract
34
for
construction
by
a
private
party
of
property
to
be
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lease-purchased
by
a
public
school
corporation
is
a
contract
1
for
a
public
improvement
as
defined
in
section
26.2
.
If
2
the
estimated
cost
of
the
property
to
be
lease-purchased
3
that
is
renovated,
repaired,
or
involves
new
construction
4
exceeds
the
competitive
bid
threshold
in
section
26.3
,
the
5
board
of
directors
shall
comply
with
the
competitive
bidding
6
requirements
of
section
26.3
.
7
Sec.
10.
Section
331.301,
subsection
10,
paragraph
i,
Code
8
2021,
is
amended
to
read
as
follows:
9
i.
A
contract
for
construction
by
a
private
party
of
10
property
to
be
leased
or
lease-purchased
by
a
county
is
not
11
a
contract
for
a
public
improvement
and
is
subject
to
under
12
section
331.341,
subsection
1
.
However,
if
a
lease-purchase
13
contract
is
funded
in
advance
by
means
of
the
lessor
depositing
14
moneys
to
be
administered
by
a
county,
with
the
county’s
15
obligation
to
make
rent
payments
commencing
with
its
receipt
of
16
moneys,
a
contract
for
construction
of
the
property
in
question
17
awarded
by
the
county
is
a
public
improvement
and
is
subject
to
18
section
331.341,
subsection
1.
19
Sec.
11.
Section
364.4,
subsection
4,
paragraph
i,
Code
20
2021,
is
amended
to
read
as
follows:
21
i.
A
contract
for
construction
by
a
private
party
of
22
property
to
be
leased
or
lease-purchased
by
a
city
is
not
23
a
contract
for
a
public
improvement
under
section
26.2,
24
subsection
3
.
If
the
estimated
cost
of
the
property
to
be
25
lease-purchased
that
is
renovated,
repaired,
or
involves
26
new
construction
exceeds
the
competitive
bid
threshold
set
27
in
section
26.3
,
the
city
shall
comply
with
the
competitive
28
bidding
requirements
of
section
26.3
,
except
for
purposes
of
29
section
26.12.
However,
if
a
lease-purchase
contract
is
funded
30
in
advance
by
means
of
the
lessor
depositing
moneys
to
be
31
administered
by
a
city,
with
the
city’s
obligation
to
make
rent
32
payments
commencing
with
its
receipt
of
moneys,
a
contract
for
33
construction
of
the
property
in
question
awarded
by
the
city
is
34
subject
to
chapter
26
.
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Sec.
12.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
1
immediate
importance,
takes
effect
upon
enactment.
2
Sec.
13.
APPLICABILITY.
This
Act
applies
to
lease-purchase
3
agreements
entered
into
on
or
after
the
effective
date
of
this
4
Act.
5
EXPLANATION
6
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
7
the
explanation’s
substance
by
the
members
of
the
general
assembly.
8
This
bill
relates
to
competitive
bidding
requirements
for
9
construction
on
properties
that
certain
government
entities
10
will
lease
or
lease-purchase.
11
Code
chapter
26
(public
construction
bidding)
imposes
public
12
bidding
requirements
on
certain
public
improvements
that
are
13
estimated
to
cost
above
a
threshold
amount.
14
Under
current
law,
a
contract
for
construction
by
a
private
15
party
of
a
property
to
be
lease-purchased
by
the
state
of
Iowa,
16
a
community
college,
a
public
school
corporation,
or
a
city
is
17
a
contract
for
a
public
improvement
under
Code
section
26.2.
18
Under
current
law,
all
lease-purchase
contracts
by
a
county
19
are
contracts
for
public
improvements
and
are
subject
to
Code
20
section
331.341.
By
operation
of
law,
such
contracts
that
21
exceed
the
threshold
amount
must
comply
with
the
requirements
22
of
Code
chapter
26.
The
state
of
Iowa,
a
community
college,
a
23
public
school
corporation,
a
city,
or
a
county
must
therefore
24
take
competitive
bids
pursuant
to
the
process
set
forth
in
Code
25
chapter
26
for
renovations,
repairs,
or
new
construction
on
a
26
property
to
be
lease-purchased
that
exceeds
the
competitive
27
bid
threshold
set
in
Code
section
26.3.
In
addition,
current
28
law
states
that
the
construction,
renovation,
or
repairs
by
a
29
private
party
of
property
to
be
lease-purchased
by
the
board
30
of
regents
is
subject
to
competitive
bidding
requirements
when
31
the
cost
of
the
construction,
renovation,
or
repairs
exceeds
32
$100,000.
33
Under
the
bill,
a
contract
for
construction
by
a
private
34
party
of
property
to
be
lease-purchased
by
the
state
of
Iowa,
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a
community
college,
or
a
public
school
corporation
is
not
1
considered
a
contract
for
a
public
improvement
for
purposes
2
of
Code
chapter
26.
The
bill
also
removes
the
construction,
3
renovation,
or
repairs
by
a
private
party
of
property
to
be
4
lease-purchased
by
the
state
board
of
regents
from
competitive
5
bidding
requirements.
6
Under
the
bill,
a
contract
for
construction
by
a
private
7
party
of
a
property
to
be
lease-purchased
by
a
county
is
not
8
a
contract
for
public
improvement
under
Code
section
331.341,
9
subsection
1,
unless
a
lease-purchase
contract
is
funded
10
in
advance
by
means
of
the
lessor
depositing
moneys
to
be
11
administered
by
the
county,
with
the
county’s
obligation
to
12
make
rent
payments
commencing
with
its
receipt
of
moneys.
13
Additionally,
a
contract
for
construction
by
a
private
party
14
of
a
property
to
be
lease-purchased
by
a
city
is
not
a
contract
15
for
public
improvement
under
Code
section
26.2,
except
for
16
purposes
of
Code
section
26.12.
However,
a
lease-purchase
17
contract
funded
in
advance
by
means
of
the
lessor
depositing
18
moneys
to
be
administered
by
the
city,
with
the
city’s
19
obligation
to
make
rent
payments
commencing
with
its
receipt
of
20
moneys,
is
subject
to
Code
chapter
26.
21
The
bill
is
effective
upon
enactment
and
applies
to
22
lease-purchase
contracts
entered
into
on
or
after
the
effective
23
date
of
the
bill.
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