House File 2509 - Introduced HOUSE FILE 2509 BY FORD A BILL FOR An Act relating to the utilization of minority-owned and 1 female-owned businesses for certain public work related 2 to the issuance of bonds and obligations and activities 3 of certain retirement systems and requiring the treasurer 4 of state to maintain a list of certain minority-owned and 5 female-owned businesses. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 6106HH (10) 83 md/sc

H.F. 2509 Section 1. NEW SECTION . 12.29 Minority-owned and 1 female-owned businesses —— list. 2 1. a. The treasurer shall maintain a list of minority-owned 3 and female-owned businesses, as defined in section 73.14, 4 subsection 2, which have requested to be notified of requests 5 for proposal. The list shall include attorneys, accountants, 6 financial advisors, banks, underwriters, insurers, and other 7 occupations necessary to carry out the issuance of bonds or 8 other obligations, whether or not such businesses are located 9 in the state. 10 b. A business may file a request with the treasurer for 11 inclusion on the list. The treasurer shall prescribe a form 12 for such businesses to request inclusion on the list. 13 2. The list maintained under this section shall be available 14 on the treasurer’s internet site and available in paper form 15 upon request. 16 3. The treasurer shall adopt rules under chapter 17A to 17 implement this section. 18 Sec. 2. Section 12.30, subsection 2, paragraph a, Code 19 Supplement 2009, is amended to read as follows: 20 a. Select and fix the compensation for, in consultation 21 with the respective authority, through a competitive selection 22 procedure, attorneys, accountants, financial advisors, 23 banks, underwriters, insurers, and other employees and 24 agents which in the treasurer’s judgment are necessary to 25 carry out the authority’s intention. Prior to the initial 26 selection, the treasurer shall, after consultation with 27 the authorities, establish a procedure which provides for a 28 fair and open selection process including , but not limited 29 to , the opportunity to present written proposals and personal 30 interviews. The treasurer shall maintain a list of firms 31 which have requested to be notified of requests for proposal , 32 including those businesses identified on the list maintained 33 under section 12.29 . The selection criteria shall take into 34 consideration , but are not limited to , compensation, expenses, 35 -1- LSB 6106HH (10) 83 md/sc 1/ 5

H.F. 2509 experience with similar issues, scheduling, ability to provide 1 the services of individuals with specific knowledge in the 2 relevant subject matter and length of the engagement. The 3 selection criteria shall also include a good-faith effort to 4 utilize minority-owned and female-owned businesses, consistent 5 with the requirements of section 73.14. The treasurer may 6 waive the requirements for a competitive selection procedure 7 for any specific employment upon written notice to the 8 executive council stating why the waiver is in the public 9 interest. Upon selection by the treasurer, the authority shall 10 promptly employ the individual or firm and be responsible for 11 payment of costs. 12 Sec. 3. NEW SECTION . 73.14 Minority-owned and female-owned 13 businesses —— bond issuance services. 14 1. The state, board of regents institutions, counties, 15 townships, school districts, community colleges, cities, and 16 other public entities, and every person acting as contracting 17 agent for any such entity, shall, when issuing bonds or other 18 obligations, make a good-faith effort to utilize minority-owned 19 and female-owned businesses for attorneys, accountants, 20 financial advisors, banks, underwriters, insurers, and other 21 occupations necessary to carry out the issuance of bonds or 22 other obligations by the entity, whether or not such businesses 23 are located in the state. 24 2. For purposes of this section: 25 a. “Female-owned business” means a business that is 26 fifty-one percent or more owned, operated, and actively managed 27 by one or more women. 28 b. “Minority-owned business” means a business that is 29 fifty-one percent or more owned, operated, and actively managed 30 by one or more minority persons. 31 Sec. 4. Section 97A.5, Code 2009, is amended by adding the 32 following new subsection: 33 NEW SUBSECTION . 9A. Outside advisors and services. The 34 board shall, when employing outside advisors or services, 35 -2- LSB 6106HH (10) 83 md/sc 2/ 5

H.F. 2509 make a good-faith effort to utilize minority-owned and 1 female-owned businesses, as those terms are defined in section 2 73.14, subsection 2, including but not limited to attorneys, 3 accountants, financial advisors, banks, brokerage or investment 4 advisors, underwriters, insurers, and other occupations 5 necessary to carry out the duties of the board, whether or not 6 such businesses are located in the state. 7 Sec. 5. Section 97B.4, subsection 3, Code 2009, is amended 8 by adding the following new paragraph: 9 NEW PARAGRAPH . g. Minority-owned and female-owned 10 businesses. The system shall, when employing legal advisors and 11 outside advisors under paragraphs “e” and “f” , make a good-faith 12 effort to utilize minority-owned and female-owned businesses, 13 as those terms are defined in section 73.14, subsection 2, when 14 carrying out the duties of the system, whether or not such 15 businesses are located in the state. 16 Sec. 6. Section 97D.4, subsection 3, Code 2009, is amended 17 by adding the following new paragraph: 18 NEW PARAGRAPH . Og. Study and review proposals to increase 19 the utilization of minority-owned and female-owned businesses, 20 as those terms are defined in section 73.14, subsection 2, by 21 public retirement systems when carrying out the duties of such 22 systems, whether or not such businesses are located in the 23 state. 24 Sec. 7. Section 411.5, Code 2009, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION . 4A. Outside advisors and services. The 27 board shall, when employing outside advisors or services, 28 make a good-faith effort to utilize minority-owned and 29 female-owned businesses, as those terms are defined in section 30 73.14, subsection 2, including but not limited to attorneys, 31 accountants, financial advisors, banks, brokerage or investment 32 advisors, underwriters, insurers, and other occupations 33 necessary to carry out the duties of the board, whether or not 34 such businesses are located in the state. 35 -3- LSB 6106HH (10) 83 md/sc 3/ 5

H.F. 2509 Sec. 8. NEW SECTION . 602.9103 Outside advisors —— 1 minority-owned and female-owned businesses. 2 The court administrator shall, when employing outside 3 advisors or services, make a good-faith effort to utilize 4 minority-owned and female-owned businesses, as those terms 5 are defined in section 73.14, subsection 2, including but not 6 limited to attorneys, accountants, financial advisors, banks, 7 brokerage or investment advisors, underwriters, insurers, and 8 other occupations necessary to carry out the duties of the 9 system, whether or not such businesses are located in the 10 state. 11 EXPLANATION 12 This bill relates to the utilization of minority-owned and 13 female-owned businesses for certain public work. 14 The bill defines “minority-owned business” and “female-owned 15 business” to mean a business that is 51 percent or more owned, 16 operated, and actively managed by one or more minority persons 17 or women, as applicable. 18 The bill establishes new Code section 73.14, which creates 19 a good-faith effort requirement for various governmental 20 entities to, when issuing bonds or other obligations, utilize 21 minority-owned and female-owned businesses for attorneys, 22 accountants, financial advisors, banks, underwriters, insurers, 23 and other employees necessary to carry out the issuance of 24 bonds or other obligations, whether or not such businesses are 25 located in the state. 26 The bill requires the treasurer of state to maintain a 27 list of minority-owned and female-owned businesses which have 28 requested to be notified of requests for proposal. The list 29 shall include attorneys, accountants, financial advisors, 30 banks, underwriters, insurers, and other occupations necessary 31 to carry out the issuance of bonds or other obligations, 32 whether or not such businesses are located in the state. The 33 treasurer is directed to prescribe a form for such businesses 34 to request inclusion on the list. The list must be available 35 -4- LSB 6106HH (10) 83 md/sc 4/ 5

H.F. 2509 on the treasurer’s internet site and available in paper form 1 upon request. 2 The bill imposes a good-faith effort requirement on the 3 public retirement systems under Code chapters 97A, 97B, 411, 4 and 602 to utilize minority-owned and female-owned businesses, 5 when carrying out the duties of those systems or the duties of 6 the board or persons that administer those systems. The bill 7 also requires the public retirement systems committee, under 8 Code section 97D.4, to study and review proposals to increase 9 the utilization of minority-owned and female-owned businesses 10 by public retirement systems, whether or not such businesses 11 are located in the state. 12 -5- LSB 6106HH (10) 83 md/sc 5/ 5