HF2558: Public Construction Bidding

Modifies which city utility projects are excluded from the definition of 'public improvement' under public construction bidding law. It expands the exclusion to include equipment acquired by city utilities for electric generation or transmission projects, as well as for existing utility infrastructure or establishing connections to such infrastructure. Construction, repair, or maintenance work performed for a city utility related to electric generation or transmission projects is also newly excluded. These changes affect the applicability of public bidding requirements and related statutes for certain city utility projects.

Key Points & Impacts

• Adds equipment acquired by city utilities for electric generation or transmission projects, existing utility infrastructure, or connections to such infrastructure as excluded from the definition of 'public improvement.'

• Expands exclusion to construction, repair, or maintenance work performed for city utilities when related to electric generation or transmission projects.

• Specifies that exclusions apply whether work is performed by utility employees or otherwise relates to specified infrastructure or connections.

• Clarifies that 'utility infrastructure' includes facilities for water, sewage, waste, electricity, gas, or telecommunications service.

• Reduces the number of city utility projects subject to public construction bidding requirements under Code chapter 26.

• Affects related statutes that reference 'public improvement,' including those governing lease-purchase contracts and local government finance.

• Removes previous language limiting exclusions only to work performed by employees or certain types of work.

• May provide city utilities with greater flexibility for procurement on certain projects without public bidding.

Signed by Governor on April 9. Takes effect July 1, 2026.