SF 2127 (LSB 5616XS (4) 86)

SENATE FILE 2127

BY  PETERSEN, JOCHUM, and McCOY

A BILL FOR

An Act concerning the establishment of a process for the debarment of a person from entering into certain state contracts with a state agency.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8A.311, Code 2016, is amended by adding the following new subsection:
   NEW SUBSECTION.  23.  An agency, including an institution under the control of the state board of regents, shall not enter into a contract, or authorize a contract, with a person who is debarred as provided in section 8A.319.
    Sec. 2.  NEW SECTION.  8A.319  Vendor debarment.
   1.  The department shall establish a process to debar a person from eligibility to enter into a contract with an agency, including an institution under the control of the state board of regents, pursuant to the competitive bidding requirements of section 8A.311, subject to the requirements of this section.
   2.  The department may debar a person from eligibility to enter into a contract with an agency, including an institution under the control of the state board of regents, for a period of not more than three years for any of the following reasons:
   a.  The person, including any employee of the person, has been convicted of a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract, or in the performance of such contract or subcontract.
   b.  The person, including any employee of the person, has been convicted, or has had a final determination in a civil action under a state or federal statute, of fraud, embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, violation of the federal False Claims Act, 31 U.S.C. §3729 et seq., violation of chapter 685, or any other offense indicating a lack of business integrity or business honesty that currently, seriously, and directly affects responsibility as a state contractor.
   c.  The person, including any employee of the person, has been convicted under a state or federal antitrust statute arising out of the submission of a bid or proposal.
   d.  The person has had two or more violations within the previous five years of the federal Labor Relations Act as determined by the national labor relations board or a court of competent jurisdiction.
   e.  The person has violated a provision of a contract in a manner that is regarded by the director to be so serious as to justify debarment action and that meets any of the following conditions:
   (1)  Deliberate failure without good cause to perform in accordance with the specifications or within the time limit provided in the contract.
   (2)  A recent record of failure to perform or of unsatisfactory performance in accordance with the terms of one or more contracts. However, the failure to perform or unsatisfactory performance caused by acts beyond the control of the person shall not be considered a basis for debarment.
   f.  Any other cause the director determines to be so serious and compelling as to affect responsibility as a state contractor, including debarment by another governmental entity for any cause.
   3.  The process for the debarment of a person shall commence by delivering to the person notice, by means authorized by section 17A.18, setting forth the particular reasons for such action and the length of the debarment. 
   a.  If a written request for a hearing is not received within thirty days after the delivery of notice as provided in this subsection, the debarment shall become effective pending a final determination by the department. The determination involved in the notice may be affirmed, modified, or set aside by the department in a written decision.
   b.  If a request for a hearing is timely received by the department, the person shall be given an opportunity for a prompt and fair hearing before the department and the debarment shall be deemed suspended until the department makes a final determination. The procedure governing hearings authorized by this paragraph shall be in accordance with the rules promulgated by the department and chapter 17A.
   4.  A copy of the final decision of the department shall be sent to the person by electronic mail or certified mail, with return receipt requested, or served personally upon the person. The person may seek judicial review in accordance with the terms of the Iowa administrative procedure Act, chapter 17A.
   5.  The department shall adopt rules to implement the requirements of this section.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill provides that a state agency shall not enter into a contract with a person who has been debarred pursuant to the requirements of the bill.
   Code section 8A.311, concerning competitive bidding requirements, is amended to provide that a state agency, including an institution under the control of the state board of regents, shall not enter into a contract, or authorize a contract, with a person who is debarred.
   New Code section 8A.319 establishes the process for DAS to debar a person from eligibility to enter into a contract with a state agency, including an institution under the control of the state board of regents. The new Code section provides that the length of the debarment shall not exceed three years, specifies the reasons to debar a person, and establishes the administrative process, including rights for a hearing and judicial review, for debarring a person. The bill provides that reasons for debarment of a person include a criminal offense conviction as an incident to obtaining or attempting to obtain a public or private contract, conviction or civil action determination of an offense indicating a lack of business integrity or honesty, conviction under a state or federal antitrust statute arising out of the submission of a bid or proposal, violations of the federal Labor Relations Act, certain violations of contract provisions, and any other cause the DAS director determines to be so serious and compelling as to affect responsibility as a state contractor, including debarment by another governmental entity for any cause.