House Study Bill 677
HOUSE FILE
BY (PROPOSED COMMITTEE ON
ECONOMIC GROWTH BILL BY
CHAIRPERSON HOFFMAN)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to purchasing preferences for Iowa=based products
2 and services.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 6499HC 80
5 tm/gg/14
PAG LIN
1 1 Section 1. Section 73.1, Code 2003, is amended by striking
1 2 the section and inserting in lieu thereof the following:
1 3 73.1 PREFERENCES.
1 4 1. Every commission, board, committee, regents
1 5 institution, and department or agency of the state shall make
1 6 the purchase of Iowa=based products and services to fill their
1 7 designated mission and needs a priority when entering into
1 8 contracts to fill such needs. This purchasing priority shall
1 9 include accommodations for quality, marketable quantities of
1 10 products and services provided by the marketer of the product
1 11 or service that will affect the long=term costs associated
1 12 with the product or service, and the impact upon the purchaser
1 13 and the purchaser's mission and needs. When products or
1 14 services provided by an Iowa=based provider are found to be in
1 15 sufficient quantities and of a quality suited to the needs of
1 16 the affected entity, and can be secured without significantly
1 17 raising the costs associated with the purchase, preference
1 18 shall be given to the Iowa=based provider over that of a
1 19 provider existing outside the state. This section does not
1 20 apply to a school district purchasing food while the school
1 21 district is participating in the federal school lunch program,
1 22 nor shall it apply to purchasers of prescription drugs for any
1 23 state program.
1 24 2. All requests made for bids and requests for proposals
1 25 for materials, products, supplies, provisions, and other
1 26 needed articles and services to be purchased at public expense
1 27 shall be made in such a way to include an Iowa=based entity,
1 28 should the sponsoring purchaser be aware that such an entity
1 29 exists and is capable of filling the needs related to the bid
1 30 or request. All available efforts shall be made to
1 31 accommodate the acceptance of bids submitted from Iowa=based
1 32 providers of products and services that can satisfy the needs
1 33 of purchasers of the state.
1 34 3. Any commission, board, committee, regents institution,
1 35 or department or agency of the state entering into a contract
2 1 for the purchase of products or services that exceeds twenty=
2 2 five thousand dollars shall compile data reflecting the
2 3 percentage of purchases made from Iowa=based entities versus
2 4 those purchases made from entities outside the state during
2 5 the fiscal year. Any commission, board, committee, regents
2 6 institution, or department or agency of the state required to
2 7 compile data pursuant to this subsection shall submit the data
2 8 in the form of a written report to the general assembly on or
2 9 before October 31 following the fiscal year in which the data
2 10 is compiled.
2 11 Sec. 2. Section 331.341, subsection 2, Code 2003, is
2 12 amended to read as follows:
2 13 2. The board shall give preference to Iowa products and
2 14 labor in accordance with chapter 73 and shall comply with bid
2 15 and contract requirements in section 73.2 chapter 73.
2 16 EXPLANATION
2 17 This bill relates to purchasing preferences for Iowa=based
2 18 products and services.
2 19 The bill provides that every commission, board, committee,
2 20 regents institution, and department or agency of the state
2 21 shall make the purchase of Iowa=based products and services to
2 22 fill their designated mission and needs a priority when
2 23 entering into contracts to fill such needs. Currently, the
2 24 preference provisions also apply to counties, township, school
2 25 districts, and cities. The bill provides that when products
2 26 or services provided by an Iowa=based provider are found to be
2 27 in sufficient quantities and of a quality suited to the needs
2 28 of the affected organization, and can be secured without
2 29 significantly raising the costs associated with the purchase,
2 30 preference shall be given to the Iowa=based provider over that
2 31 of a provider existing outside the state. The bill provides
2 32 for certain exceptions to the preference provisions.
2 33 The bill provides that all requests made for bids and
2 34 requests for proposals for materials, products, supplies,
2 35 provisions, and other needed articles and services to be
3 1 purchased at public expense shall be made in such a way to
3 2 include an Iowa=based entity, should the sponsoring purchaser
3 3 be aware that such an entity exists and is capable of filling
3 4 the needs related to the bid or request. The bill provides
3 5 that all available efforts shall be made to accommodate the
3 6 acceptance of bids submitted from Iowa=based providers of
3 7 products and services that can satisfy the needs of purchasers
3 8 of the state.
3 9 The bill creates a reporting requirement for any
3 10 commission, board, committee, regents institution, or
3 11 department or agency of the state entering into a contract for
3 12 goods and services that exceeds $25,000.
3 13 LSB 6499HC 80
3 14 tm/gg/14