House File 2024 - Introduced HOUSE FILE 2024 BY WILLS A BILL FOR An Act relating to state agency authority relating to 1 purchasing procedures and executive branch employee travel 2 claims. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5095YH (3) 87 ec/rj

H.F. 2024 DIVISION I 1 PURCHASING PROCEDURES 2 Section 1. Section 8A.311, subsection 10, Code 2018, is 3 amended to read as follows: 4 10. a. The director shall adopt rules providing that any 5 state agency may , upon request and approval by the department, 6 purchase directly from a vendor if the direct purchasing is 7 more economical than purchasing through the department, if 8 the agency shows that direct purchasing by the state agency 9 would be in the best interests of the state due to an immediate 10 or emergency need, or if the purchase will not exceed ten 11 twenty-five thousand dollars and the purchase would contribute 12 to the agency complying with the targeted small business 13 procurement goals under sections 73.15 through 73.21 . A state 14 agency that makes such a purchase shall promptly notify the 15 department that the agency has done so. The notification shall 16 include documentation demonstrating that the purchase met the 17 criteria for a direct purchase provided in this subsection. 18 Prior notification of or approval by the department for such 19 purchases shall not be required. Competitive bidding shall 20 not be required for such purchases. However, for a direct 21 purchase of twenty-five thousand dollars or less that is not 22 due to an immediate or emergency need, the state agency shall, 23 if multiple bidders are practicable, solicit bids from at least 24 three Iowa-based businesses and may select the bid that best 25 meets the needs of the state agency. 26 b. Any member of the executive council may bring before 27 the executive council for review a decision of the director 28 granting a state agency request for direct purchasing. The 29 executive council shall hear and review the director’s decision 30 in the same manner as an appeal filed by an aggrieved bidder, 31 except that the three-day period for filing for review shall 32 not apply. 33 Sec. 2. Section 8A.311A, subsection 3, paragraph a, Code 34 2018, is amended to read as follows: 35 -1- LSB 5095YH (3) 87 ec/rj 1/ 4

H.F. 2024 a. The department determines, upon a request by the agency, 1 that the agency can satisfy satisfies the requirements for 2 purchase of the good or service directly from a vendor as 3 provided in section 8A.311, subsection 10 , paragraph “a” . 4 DIVISION II 5 TRAVEL CLAIMS 6 Sec. 3. Section 8A.512A, Code 2018, is amended by striking 7 the section and inserting in lieu thereof the following: 8 8A.512A Executive branch employee travel. 9 1. A claim for reimbursement for any out-of-state travel, 10 conference, or related expenditures of an executive branch 11 employee associated with the employee’s official duties shall 12 be allowed upon the approval of the claim by the head of the 13 employee’s state agency. A state agency with authority to 14 approve claims under this section shall establish a process 15 for a detailed review of claims selected by the department to 16 determine the appropriateness of the claims for reimbursement. 17 2. a. For purposes of this section, “executive branch 18 employee” means an employee of the executive branch as defined 19 in section 7E.2, other than a member or employee of the state 20 board of regents and institutions under the control of the 21 state board of regents. 22 b. For purposes of this section, “out-of-state travel” does 23 not include out-of-state travel incidental to travel between a 24 travel departure point in this state and a travel destination 25 point in the city of Carter Lake. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 Division I of this bill concerns purchasing procedures under 30 the department of administrative services. Current law permits 31 a state agency, upon request and approval by the department 32 of administrative services, to make a purchase of goods or 33 services directly from a vendor, rather than purchasing through 34 the department, if one of certain conditions is met. One of 35 -2- LSB 5095YH (3) 87 ec/rj 2/ 4

H.F. 2024 the conditions is if the purchase will not exceed $10,000 and 1 the purchase would contribute to the agency complying with 2 targeted small business procurement goals. 3 The bill modifies that condition to permit a state agency 4 to engage in direct purchasing for any purchase that will not 5 exceed $25,000. The bill also strikes the requirement for 6 a prior request and approval by the department for direct 7 purchasing. The bill requires a state agency that makes such 8 a purchase to promptly notify the department that it has done 9 so. The bill provides that the notification must include 10 documentation demonstrating that the purchase met the criteria 11 for a direct purchase provided in the bill. The bill provides 12 that prior notification of or approval by the department for 13 such purchases shall not be required. The bill provides that 14 competitive bidding shall not be required for such purchases. 15 In addition, for a direct purchase of $25,000 or less that is 16 not due to an immediate or emergency need, the state agency 17 shall, if multiple bidders are practicable, solicit bids from 18 at least three Iowa-based businesses and select the bid that 19 best meets the needs of the state agency. 20 The bill also provides that a state agency that meets the 21 requirements for direct purchasing provided in the bill may 22 engage in direct purchasing instead of purchasing pursuant to a 23 master contract established by the department. 24 Division II of the bill concerns claims for reimbursement of 25 out-of-state travel by executive branch employees. Current law 26 requires the department of administrative services to develop 27 and implement an electronic travel authorization form which 28 shall be used by an executive branch employee when requesting 29 reimbursement for out-of-state travel. The bill strikes the 30 requirement for development and use of the electronic travel 31 form and instead provides that a claim for reimbursement shall 32 be allowed upon the approval of the claim by the head of the 33 employee’s state agency. The bill requires each state agency 34 with authority to approve claims to establish a process for a 35 -3- LSB 5095YH (3) 87 ec/rj 3/ 4

H.F. 2024 detailed review of selected claims. 1 -4- LSB 5095YH (3) 87 ec/rj 4/ 4