House File 417 - Introduced



                                       HOUSE FILE       
                                       BY  T. TAYLOR


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act prohibiting a state agency from awarding state contracts
  2    or assistance to persons performing work outside the United
  3    States and providing for related matters.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1520HH 81
  6 ec/gg/14

PAG LIN



  1  1    Section 1.  NEW SECTION.  73A.22  OUTSOURCING BY STATE
  1  2 AGENCIES PROHIBITED.
  1  3    1.  a.  A state department, institution, or agency, or any
  1  4 board member, commissioner, director, manager, or other person
  1  5 connected with any such department, institution, or agency,
  1  6 shall not award a contract or provide developmental assistance
  1  7 to a person for a contract or subcontract for services to be
  1  8 performed outside the boundaries of the United States.  In
  1  9 addition, a person submitting a bid or contract to provide
  1 10 services or an application for developmental assistance shall
  1 11 certify that the services covered by the bid, contract, or
  1 12 developmental assistance will be performed in the United
  1 13 States.
  1 14    b.  For purposes of this section, "developmental
  1 15 assistance" means any form of public assistance, including tax
  1 16 expenditures, made for the purpose of stimulating the economic
  1 17 development of a corporation, industry, geographic
  1 18 jurisdiction, or any other sector of the state's economy,
  1 19 including but not limited to industrial development bonds,
  1 20 training grants, loans, loan guarantees, enterprise zones,
  1 21 empowerment zones, tax increment financing, fee waivers, land
  1 22 price subsidies, infrastructure constructed or improved for
  1 23 the benefit of a single business or defined group of
  1 24 businesses at the time it is built or improved, matching
  1 25 funds, tax abatements, tax credits and tax discounts of every
  1 26 kind, including corporate franchise, personal income, sales
  1 27 and use, raw materials, real property, job creation,
  1 28 individual investment, excise, utility, inventory, accelerated
  1 29 depreciation, and research and development tax credits and
  1 30 discounts.
  1 31    2.  Any contract or developmental assistance awarded shall
  1 32 provide that if, during the life of the contract, the vendor,
  1 33 contractor, subcontractor, or developmental assistance
  1 34 recipient shifts the performance of services funded under the
  1 35 contract to be performed outside the boundaries of the United
  2  1 States, the contract or developmental assistance shall be
  2  2 terminated and the person awarded the contract or the
  2  3 developmental assistance recipient shall forfeit penalties to
  2  4 the state agency in an amount equal to the amount paid by the
  2  5 state agency for the percentage of work that was performed
  2  6 with workers outside the United States.
  2  7    3.  A state department, institution, or agency may enforce
  2  8 its rights under this section by instituting a civil action in
  2  9 district court in this state.  In addition, a state
  2 10 department, institution, or agency shall not award a contract
  2 11 or provide developmental assistance to any person that
  2 12 violates this section for a period of five years after the
  2 13 date of the violation.
  2 14                           EXPLANATION
  2 15    This bill prohibits state entities from awarding a contract
  2 16 or providing developmental assistance to a person for services
  2 17 to be performed outside the United States.  In addition, the
  2 18 bill requires a person seeking a contract or developmental
  2 19 assistance to certify that the services covered by the
  2 20 contract or assistance will be provided in the United States.
  2 21 The bill defines "developmental assistance" as any form of
  2 22 public assistance, including tax incentives, grants, or other
  2 23 subsidies.
  2 24    The bill provides that a person violating this new
  2 25 provision shall have their contract or developmental
  2 26 assistance terminated and shall forfeit penalties to the
  2 27 applicable state entity in an amount equal to the amount paid
  2 28 by the state agency based upon the percentage of the work
  2 29 performed overseas.  The bill grants state entities the right
  2 30 to enforce their rights in district court and provides that a
  2 31 person violating this provision shall be prohibited from
  2 32 receiving a state contract or developmental assistance for
  2 33 five years.
  2 34 LSB 1520HH 81
  2 35 ec:nh/gg/14