House Study Bill 168



                                       HOUSE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            GOVERNMENT OVERSIGHT BILL
                                            BY CHAIRPERSON ALONS)


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

                                      A BILL FOR

  1 An Act relating to bidding requirements for state executive
  2    branch purchases.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2258HC 81
  5 jr/gg/14

PAG LIN



  1  1    Section 1.  Section 8A.311, unnumbered paragraph 1, Code
  1  2 2005, is amended to read as follows:
  1  3    The director shall adopt rules establishing competitive
  1  4 bidding procedures and shall provide notice in an electronic
  1  5 format available to the public, of every competitive bidding
  1  6 opportunity offered by every state agency.  Each state agency
  1  7 offering a competitive bidding opportunity must comply with
  1  8 the notice requirements of this paragraph and any requirements
  1  9 adopted by rule.
  1 10    Sec. 2.  Section 8A.311, subsection 1, Code 2005, is
  1 11 amended to read as follows:
  1 12    1.  All equipment, supplies, or services procured by the
  1 13 department shall be purchased by a competitive bidding
  1 14 procedure as established by rule.  However, the The director
  1 15 may exempt by rule purchases of noncompetitive items and
  1 16 purchases in lots or quantities too small to be effectively
  1 17 purchased by competitive bidding.  The rules may include the
  1 18 use of a master contract; however, a master contract may be in
  1 19 effect for no longer than five years.  Preference shall be
  1 20 given to purchasing Iowa products and purchases from Iowa=
  1 21 based businesses if the Iowa=based business bids submitted are
  1 22 comparable in price to bids submitted by out=of=state
  1 23 businesses and otherwise meet the required specifications.  If
  1 24 the laws of another state mandate a percentage preference for
  1 25 businesses or products from that state and the effect of the
  1 26 preference is that bids of Iowa businesses or products that
  1 27 are otherwise low and responsive are not selected in the other
  1 28 state, the same percentage preference shall be applied to Iowa
  1 29 businesses and products when businesses or products from that
  1 30 other state are bid to supply Iowa requirements.
  1 31    Sec. 3.  Section 216B.3, subsection 12, unnumbered
  1 32 paragraph 1, Code 2005, is amended to read as follows:
  1 33    Manage and control the property, both real and personal,
  1 34 belonging to the department.  To the extent practicable,
  1 35 equipment, supplies, or services procured by the department
  2  1 shall be purchased through a competitive bidding procedure as
  2  2 established by rule.  However, the director may exempt by rule
  2  3 purchases of noncompetitive items and purchases in lots or
  2  4 quantities too small to be effectively purchased by
  2  5 competitive bidding.  The rules may include the use of a
  2  6 master contract; however, a master contract may be in effect
  2  7 for no longer than five years.
  2  8    PARAGRAPH DIVIDED.  The commission shall, according to the
  2  9 schedule established in this subsection, when the price is
  2 10 reasonably competitive and the quality as intended, purchase
  2 11 soybean=based inks and plastic products with recycled content,
  2 12 including but not limited to plastic garbage can liners.  For
  2 13 purposes of this subsection, "recycled content" means that the
  2 14 content of the product contains a minimum of thirty percent
  2 15 postconsumer material.
  2 16    Sec. 4.  Section 262.9, Code 2005, is amended by adding the
  2 17 following new subsection:
  2 18    NEW SUBSECTION.  31.  Require, to the extent practicable,
  2 19 that all equipment, supplies, or services procured by all
  2 20 institutions under the jurisdiction of the board be purchased
  2 21 through a competitive bidding procedure as established by
  2 22 rule.  However, the secretary may exempt by rule purchases of
  2 23 noncompetitive items and purchases in lots or quantities too
  2 24 small to be effectively purchased by competitive bidding.  The
  2 25 rules may include the use of a master contract; however, a
  2 26 master contract may be in effect for no longer than five
  2 27 years.
  2 28    Sec. 5.  Section 307.21, subsection 4, paragraph a, Code
  2 29 2005, is amended to read as follows:
  2 30    a.  Provide centralized purchasing services for the
  2 31 department, in cooperation with the department of
  2 32 administrative services.  To the extent practicable,
  2 33 equipment, supplies, or services procured by the department
  2 34 shall be purchased through a competitive bidding procedure as
  2 35 established by rule.  However, the director may exempt by rule
  3  1 purchases of noncompetitive items and purchases in lots or
  3  2 quantities too small to be effectively purchased by
  3  3 competitive bidding.  The rules may include the use of a
  3  4 master contract; however, a master contract may be in effect
  3  5 for no longer than five years.
  3  6    PARAGRAPH DIVIDED.  The administrator shall, when the price
  3  7 is reasonably competitive and the quality as intended,
  3  8 purchase soybean=based inks and plastic products with recycled
  3  9 content, including but not limited to plastic garbage can
  3 10 liners, and shall purchase these items in accordance with the
  3 11 schedule established in section 8A.315.  However, the
  3 12 administrator need not purchase garbage can liners in
  3 13 accordance with the schedule if the liners are utilized by a
  3 14 facility approved by the environmental protection commission
  3 15 created under section 455A.6, for purposes of recycling.  For
  3 16 purposes of this subsection, "recycled content" means that the
  3 17 content of the product contains a minimum of thirty percent
  3 18 postconsumer material.
  3 19                           EXPLANATION
  3 20    This bill requires the department of administrative
  3 21 services to make all competitive bidding opportunities, from
  3 22 all state executive branch agencies, available to the public
  3 23 in an electronic format.  The bill establishes a general
  3 24 policy that equipment, supplies, or services procured by the
  3 25 state shall be purchased using a competitive bidding
  3 26 procedure, when practicable.
  3 27    The bill also provides that a master contract can be in
  3 28 effect only for five years.  A master contract is an agreement
  3 29 with a vendor to sell a good or a service at a specified
  3 30 price, and allowing any number of individual sales at that
  3 31 price usually to any state agency.
  3 32 LSB 2258HC 81
  3 33 jr:rj/gg/14