House File 609
HOUSE FILE
BY COMMITTEE ON ECONOMIC GROWTH
(SUCCESSOR TO HSB 230)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act encouraging the purchase of software and information
2 technology produced in this state in state procurement
3 processes.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 2704HV 80
6 rn/sh/8
PAG LIN
1 1 Section 1. NEW SECTION. 73.12 TITLE AND DEFINITIONS.
1 2 1. This division may be cited as the "Iowa Software and
1 3 Information Technology Procurement Act".
1 4 2. As used in this division, unless the context otherwise
1 5 requires:
1 6 a. "Iowa software and information technology company"
1 7 means a company that is authorized to conduct business in this
1 8 state and which provides software or information technology=
1 9 related goods or services, having a physical location for the
1 10 purpose of transacting business within this state at which it
1 11 is conducting and has been conducting business for at least
1 12 six consecutive months prior to responding to a bid notice
1 13 pursuant to this division, and in the case of a corporation,
1 14 having at least fifty percent of its common stock held by
1 15 residents of this state.
1 16 b. "Software or information technology=related goods or
1 17 services" means software, firmware, or hardware to be used on,
1 18 with, or for computing, network, communications, automation,
1 19 information management, or digital media systems, as well as
1 20 systems integration, installation, design, manufacture, and
1 21 repair relating to such software, firmware, or hardware.
1 22 Sec. 2. NEW SECTION. 73.13 PROCUREMENTS.
1 23 Notwithstanding any provision of law or rule relating to
1 24 competitive bidding procedures:
1 25 1. Every agency, department, commission, board, committee,
1 26 officer, or other governing body of the state shall consider
1 27 and shall purchase, when reasonable, software or information
1 28 technology=related goods or services supplied by Iowa software
1 29 and information technology companies.
1 30 2. The director of each agency or department of state
1 31 government having purchasing authority shall issue electronic
1 32 bid notices for distribution to the Iowa software and
1 33 information technology industry web page located at the
1 34 department of economic development if the director releases a
1 35 solicitation for bids for procurement of software or
2 1 information technology=related goods or services. The notices
2 2 shall be provided to the web page manager and by electronic
2 3 mail to any Iowa software and information technology industry
2 4 leadership councils that have registered with the department
2 5 of economic development for receipt of notices forty=eight
2 6 hours prior to the issuance of all bid notices. The notices
2 7 shall contain a description of the subject of the bid, a point
2 8 of contact for the bid, and any subcontract goals included in
2 9 the bid.
2 10 3. Of the total value of anticipated procurements of goods
2 11 and services under this section, a goal shall be established
2 12 to procure at least fifty percent from Iowa software and
2 13 information technology companies. The department of economic
2 14 development shall, on a biannual basis, assess the state's
2 15 progress with respect to this goal and shall provide a report
2 16 of the progress to the general assembly by January 1 of the
2 17 year following the assessment.
2 18 4. For purchases of software or information technology=
2 19 related goods or services, a competitive bid procedure must be
2 20 used.
2 21 5. The applicable provisions of chapter 18, or any other
2 22 provisions pertaining to solicitations, bid evaluations,
2 23 contract awards, and other procurement matters shall apply to
2 24 procurement contracts for software or information technology=
2 25 related goods or services pursuant to this section. However,
2 26 if the provisions of this section conflict with an applicable
2 27 provision of chapter 18 or any other provision, the provisions
2 28 contained within this section shall prevail.
2 29 Sec. 3. NEW SECTION. 73.14 RULES.
2 30 The department of economic development shall adopt rules
2 31 under this division to establish an Iowa software and
2 32 information technology industry web page, and a registry of
2 33 Iowa software and information technology industry leadership
2 34 councils for providing electronic notices of bids. Other
2 35 agencies and departments are authorized to adopt such rules as
3 1 are necessary to implement the procurement procedures pursuant
3 2 to this division.
3 3 EXPLANATION
3 4 This bill contains provisions encouraging the purchase of
3 5 software and information technology produced in this state in
3 6 the state procurement process.
3 7 The bill defines an "Iowa software and information
3 8 technology company" as a company authorized to conduct
3 9 business in this state to provide software or information
3 10 technology=related goods or services, with a physical location
3 11 for transacting business in the state at which it has been
3 12 conducting business for at least six consecutive months prior
3 13 to responding to a bid notice. The bill provides that if the
3 14 company is a corporation, the company shall have at least 50
3 15 percent of its common stock held by residents of this state.
3 16 The bill defines "software or information technology=related
3 17 goods or services" as software, firmware, or hardware to be
3 18 used on, with, or for computing, network, communications,
3 19 automation, information management, or digital media systems,
3 20 as well as systems integration, installation, design,
3 21 manufacture, and repair relating to such software, firmware,
3 22 or hardware.
3 23 The bill provides that notwithstanding any provision of law
3 24 or rule relating to competitive bidding procedures, every
3 25 agency, department, commission, board, committee, officer, or
3 26 other governing body of the state shall consider and purchase,
3 27 when reasonable, goods and services supplied by Iowa software
3 28 and information technology companies. The bill provides that
3 29 electronic bid notices shall be issued for distribution to an
3 30 Iowa software and information technology industry web page to
3 31 be developed by and located at the department of economic
3 32 development if a solicitation for bids for procurement of
3 33 software or information technology=related goods or services
3 34 is being released. The bill provides that notices shall be
3 35 provided to the web page manager and by electronic mail to any
4 1 Iowa software and information technology industry leadership
4 2 councils that register with the department of economic
4 3 development for receipt of notices 48 hours prior to the
4 4 issuance of all bid notices.
4 5 The bill provides that of the total value of anticipated
4 6 procurements of goods and services under the bill, a goal
4 7 shall be established to procure at least 50 percent from Iowa
4 8 software and information technology companies. The bill
4 9 provides for a biannual assessment of the state's progress
4 10 with respect to this goal and a report of the progress by the
4 11 department of economic development to the general assembly.
4 12 The bill provides that for purchases of software or
4 13 information technology=related goods or services, a
4 14 competitive bid procedure must be used.
4 15 The bill provides that these provisions shall prevail over
4 16 any conflicting provisions contained in Code chapter 18 or
4 17 elsewhere dealing with competitive bidding procedures, and
4 18 that in the event there is not a conflict such other
4 19 provisions, to the extent applicable, shall apply. The bill
4 20 additionally provides for the adoption of rules relating to
4 21 the creation of the web page, the registry, and by other
4 22 agencies and departments to implement the procurement
4 23 procedures.
4 24 LSB 2704HV 80
4 25 rn/sh/8