Text: SSB02082 Text: SSB02084 Text: SSB02000 - SSB02099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 8.6, subsection 11, Code 1997, is 1 2 amended by striking the subsection and inserting in lieu 1 3 thereof the following: 1 4 11. TARGETED SMALL BUSINESS. To facilitate and assist in 1 5 agency collaboration between functional areas of the targeted 1 6 small business program to include certification by the 1 7 department of inspections and appeals, marketing and financial 1 8 assistance by the department of economic development, and 1 9 targeted small business procurement compliance by the 1 10 department of management. 1 11 Sec. 2. Section 8.6, subsection 12, Code 1997, is amended 1 12 to read as follows: 1 13 12. STATE PROGRAMS FOR EQUAL OPPORTUNITY. To perform 1 14 specific powers and duties as provided in chapter 19B and 1 15 other provisions of law with respect to oversight and the 1 16 imposition of sanctions in connection with state programs 1 17 emphasizing equal opportunity through affirmative action, 1 18 contract compliance policies, and targeted small business 1 19 procurementset-asiderequirements. 1 20 Sec. 3. Section 10A.104, subsection 8, Code 1997, is 1 21 amended to read as follows: 1 22 8. Establish by rule standards and procedures for 1 23 certifying that targeted small businesses are eligible to 1 24 participate in the procurementset-asidegoal program 1 25 established in sections 73.15 through 73.21. The procedure 1 26 for determination of eligibility shall not include self- 1 27 certification by a business. Rules and guidelines adopted 1 28 pursuant to this subsection are subject to review and approval 1 29 by the director of the department of management. The director 1 30 shall maintain a current directory of targeted small 1 31 businesses which have been certified pursuant to this 1 32 subsection. 1 33 Sec. 4. NEW SECTION. 10A.801 IOWA SATISFACTION AND 1 34 PERFORMANCE BOND PROGRAM. 1 35 Agencies of state government shall be required to waive the 2 1 requirement of satisfaction, performance, surety, or bid bonds 2 2 for targeted small businesses which are able to demonstrate to 2 3 the department the inability to secure such a bond because of 2 4 a lack of experience, lack of net worth, or lack of capital. 2 5 This waiver shall not apply to businesses with a record of 2 6 repeated failure of substantial performance or material breach 2 7 of contract in prior circumstances. The waiver shall be 2 8 applied only to a project or individual transaction involving 2 9 fifty thousand dollars or less, notwithstanding section 573.2. 2 10 In order to qualify, the targeted small business shall provide 2 11 written evidence to the department that the bond would 2 12 otherwise be denied the business. The granting of the waiver 2 13 shall in no way relieve the business from its contractual 2 14 obligations and shall not preclude the state agency from 2 15 pursuing any remedies under law upon default or breach of 2 16 contract. 2 17 The department shall certify targeted small businesses for 2 18 eligibility and participation in this program and shall make 2 19 this information available to other state agencies. 2 20 Political subdivisions of the state may also grant such a 2 21 waiver under similar circumstances. 2 22 As used in this section, "targeted small business" means a 2 23 targeted small business as defined in section 15.102. 2 24 Sec. 5. Section 15.102, subsection 5, paragraph a, 2 25 unnumbered paragraph 1, Code 1997, is amended to read as 2 26 follows: 2 27 "Targeted small business" means asmallbusiness which is 2 28 fifty-one percent or more owned, operated, and actively 2 29 managed by one or more women, minority persons, or persons 2 30 with a disability provided the business meets all of the 2 31 following requirements: 2 32 Sec. 6. Section 73.16, subsection 1, Code 1997, is amended 2 33 to read as follows: 2 34 1. Every agency, department, commission, board, committee, 2 35 officer or other governing body of the state shall purchase 3 1 goods and services supplied by small businesses and targeted 3 2 small businesses in Iowa and shall demonstrate a good faith 3 3 effort to purchase from targeted small businesses when the 3 4 opportunity to do so exists. In addition to the other 3 5 provisions of this section relating to procurement contracts 3 6 for targeted small businesses, all purchasing authorities 3 7 shall assure that a proportionate share of small businesses 3 8 and targeted small businessesidentified under the uniform3 9small business vendor application program of the department of3 10economic developmentare given the opportunity to bid on all 3 11 solicitations issued by agencies and departments of state 3 12 government. 3 13 Sec. 7. Section 73.16, subsection 2, Code 1997, is amended 3 14 to read as follows: 3 15 2. The director of each agency or department of state 3 16 government having purchasing authority shall establish a 3 17 procurement goal from certified targeted small businesses 3 18 identified pursuant to section 10A.104, subsection 8, of at 3 19 least ten percent of the value of anticipated procurements of 3 20 goods and services, including construction, but not including 3 21 utility services and other nondiscretionary costs, each fiscal 3 22 year. The director of each department and agency of state 3 23 government shall cooperate with the director of the department 3 24 of inspections and appeals, the director of the department of 3 25 economic development, and the director of the department of 3 26 management and do all acts necessary to carry out the 3 27 provisions of this division. 3 28 A community college, area education agency, or school 3 29 district shall establish a procurement goal from certified 3 30 targeted small businesses, identified pursuant to section 3 31 10A.104, subsection 8, of at least ten percent of the value of 3 32 anticipated procurements of goods and services including 3 33 construction, but not including utility services and other 3 34 nondiscretionary costs, each fiscal year. 3 35 Of the total value of anticipated procurements of goods and 4 1 services under this subsection, an additional goal shall be 4 2 established to procure at least forty percent from minority- 4 3 owned businesses, and forty percent from female-owned 4 4 businesses. 4 5 For purposes of this subsection, nondiscretionary costs are 4 6 expenditures for which no targeted small business procurement 4 7 opportunities exist, as deemed appropriate by the department 4 8 of inspections and appeals. 4 9 Sec. 8. Section 73.17, Code 1997, is amended to read as 4 10 follows: 4 11 73.17 TARGETED SMALL BUSINESS PROCUREMENT GOALS – 4 12 PRELIMINARY PROCEDURES. 4 13 Quarterly the director of each agency and department of 4 14 state government shall review the agency's or department's 4 15 anticipated purchasing requirements. The directors shall 4 16 notify the director of the department ofeconomic development4 17 inspections and appeals of their anticipated purchases and 4 18 recommended procurements with unit quantities and total costs 4 19 for procurement contracts designated to satisfy the targeted 4 20 small business procurement goal not later than August 15 of 4 21 each fiscal year and quarterly thereafter. The directors may 4 22 divide the procurements so designated into contract award 4 23 units of economically feasible production runs to facilitate 4 24 offers or bids from targeted small businesses. In designating 4 25 procurements intended to satisfy the targeted small business 4 26 procurement goal, the directors may vary the included 4 27 procurements so that a variety of goods and services produced 4 28 by different targeted small businesses may be procured each 4 29 year. The director of the department ofeconomic development4 30 inspections and appeals, in conjunction with the director of 4 31 the department of management, shall review the information 4 32 submitted and may require modifications from the agencies and 4 33 departments. 4 34 A community college or area education agency shall, on a 4 35 quarterly basis, and a school district shall, on an annual 5 1 basis, review the community college's, area education 5 2 agency's, or school district's anticipated purchasing 5 3 requirements. A community college,or area education agency,5 4or school districtshall notify the department ofeducation,5 5which shall report to the department of economic development,5 6 inspections and appeals oftheirits anticipated purchases and 5 7 recommended procurementswith unit quantities and total costs5 8for procurement contracts designatedto satisfy the targeted 5 9 small business procurement goal not later than August 15 of 5 10 each fiscal yearand quarterly thereafter, except that school5 11districts shall report annually. Progress toward targeted 5 12 small business procurement goals shall be reported to the 5 13 department of inspections and appeals quarterly. A school 5 14 district shall notify the department of inspections and 5 15 appeals of its anticipated purchases and recommended 5 16 procurements to satisfy the targeted small business 5 17 procurement goals and shall report progress toward targeted 5 18 small business procurement goals to the department of 5 19 inspections and appeals no later than November 15 of each 5 20 fiscal year. 5 21 Sec. 9. Section 573.2, unnumbered paragraph 2, Code 1997, 5 22 is amended to read as follows: 5 23 If the requirement for a bond is waived pursuant to section 5 2412.4410A.801, a person, firm, or corporation, having a 5 25 contract with the targeted small business or with 5 26 subcontractors of the targeted small business, for labor 5 27 performed or materials furnished, in the performance of the 5 28 contract on account of which the bond was waived, is entitled 5 29 to any remedy provided under this chapter. When a bond has 5 30 been waived pursuant to section12.4410A.801, the remedies 5 31 provided for under this paragraph are available in an action 5 32 against the public corporation. 5 33 Sec. 10. Section 12.44, Code 1997, is repealed. 5 34 EXPLANATION 5 35 This bill makes changes in the targeted small business 6 1 program. 6 2 The bill provides that the director of the department of 6 3 management shall facilitate collaboration between the 6 4 department of management, the department of inspections and 6 5 appeals, and the department of economic development concerning 6 6 the targeted small business program. Current law requires 6 7 only that the director assist the department of economic 6 8 development in the program. 6 9 The bill eliminates reference to set-asides concerning the 6 10 targeted small business program and strikes the reference to 6 11 small in the definition of a targeted small business. The 6 12 requirement that the targeted small business have an average 6 13 annual gross income of less than $3 million remains. 6 14 The bill provides that the department of inspections and 6 15 appeals, and not the state treasurer, is responsible for the 6 16 Iowa satisfaction and performance bond program concerning 6 17 targeted small businesses. 6 18 The bill requires every agency, department, commission, 6 19 board, committee, or other governing body of the state to 6 20 demonstrate a good faith effort to purchase from targeted 6 21 small businesses. 6 22 The bill provides that nondiscretionary costs need not be 6 23 considered when determining whether the targeted small 6 24 business procurement goal percentage for state agencies, 6 25 community colleges, area education agencies, and school 6 26 districts is met. The bill defines nondiscretionary costs as 6 27 expenditures for which no ability to procure the item from a 6 28 targeted small business exists. 6 29 The bill provides that the department of inspections and 6 30 appeals, and not the department of economic development, shall 6 31 receive targeted small business procurement goal reports from 6 32 state agencies. The bill also changes the reporting 6 33 requirements for school districts from August 15 to November 6 34 15. 6 35 LSB 3269DP 77 7 1 ec/sc/14.1
Text: SSB02082 Text: SSB02084 Text: SSB02000 - SSB02099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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