Senate Study Bill 1138 SENATE FILE BY (PROPOSED COMMITTEE ON GOVERNMENT OVERSIGHT BILL BY CO=CHAIRPERSON LUNDBY) Passed Senate, Date Passed House, 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 2258SC 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, theThe 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 2258SC 81 3 33 jr:rj/gg/14