HF 2509 (LSB 6106HH (10) 83)

HOUSE FILE 2509

BY  FORD

A BILL FOR

An Act relating to the utilization of minority-owned and female-owned businesses for certain public work related to the issuance of bonds and obligations and activities of certain retirement systems and requiring the treasurer of state to maintain a list of certain minority-owned and female-owned businesses.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  12.29  Minority-owned and female-owned businesses —— list.
   1.  a.  The treasurer shall maintain a list of minority-owned and female-owned businesses, as defined in section 73.14, subsection 2, which have requested to be notified of requests for proposal. The list shall include attorneys, accountants, financial advisors, banks, underwriters, insurers, and other occupations necessary to carry out the issuance of bonds or other obligations, whether or not such businesses are located in the state.
   b.  A business may file a request with the treasurer for inclusion on the list. The treasurer shall prescribe a form for such businesses to request inclusion on the list.
   2.  The list maintained under this section shall be available on the treasurer’s internet site and available in paper form upon request.
   3.  The treasurer shall adopt rules under chapter 17A to implement this section.
    Sec. 2.  Section 12.30, subsection 2, paragraph a, Code Supplement 2009, is amended to read as follows:
   a.  Select and fix the compensation for, in consultation with the respective authority, through a competitive selection procedure, attorneys, accountants, financial advisors, banks, underwriters, insurers, and other employees and agents which in the treasurer’s judgment are necessary to carry out the authority’s intention. Prior to the initial selection, the treasurer shall, after consultation with the authorities, establish a procedure which provides for a fair and open selection process including, but not limited to, the opportunity to present written proposals and personal interviews. The treasurer shall maintain a list of firms which have requested to be notified of requests for proposal, including those businesses identified on the list maintained under section 12.29. The selection criteria shall take into consideration, but are not limited to, compensation, expenses, experience with similar issues, scheduling, ability to provide the services of individuals with specific knowledge in the relevant subject matter and length of the engagement. The selection criteria shall also include a good-faith effort to utilize minority-owned and female-owned businesses, consistent with the requirements of section 73.14.  The treasurer may waive the requirements for a competitive selection procedure for any specific employment upon written notice to the executive council stating why the waiver is in the public interest. Upon selection by the treasurer, the authority shall promptly employ the individual or firm and be responsible for payment of costs.
    Sec. 3.  NEW SECTION.  73.14  Minority-owned and female-owned businesses —— bond issuance services.
   1.  The state, board of regents institutions, counties, townships, school districts, community colleges, cities, and other public entities, and every person acting as contracting agent for any such entity, shall, when issuing bonds or other obligations, make a good-faith effort to utilize minority-owned and female-owned businesses for attorneys, accountants, financial advisors, banks, underwriters, insurers, and other occupations necessary to carry out the issuance of bonds or other obligations by the entity, whether or not such businesses are located in the state.
   2.  For purposes of this section:
   a.  “Female-owned business” means a business that is fifty-one percent or more owned, operated, and actively managed by one or more women.
   b.  “Minority-owned business” means a business that is fifty-one percent or more owned, operated, and actively managed by one or more minority persons.
    Sec. 4.  Section 97A.5, Code 2009, is amended by adding the following new subsection:
   NEW SUBSECTION.  9A.  Outside advisors and services.  The board shall, when employing outside advisors or services, make a good-faith effort to utilize minority-owned and female-owned businesses, as those terms are defined in section 73.14, subsection 2, including but not limited to attorneys, accountants, financial advisors, banks, brokerage or investment advisors, underwriters, insurers, and other occupations necessary to carry out the duties of the board, whether or not such businesses are located in the state.
    Sec. 5.  Section 97B.4, subsection 3, Code 2009, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  g.  Minority-owned and female-owned businesses.  The system shall, when employing legal advisors and outside advisors under paragraphs “e” and “f”, make a good-faith effort to utilize minority-owned and female-owned businesses, as those terms are defined in section 73.14, subsection 2, when carrying out the duties of the system, whether or not such businesses are located in the state.
    Sec. 6.  Section 97D.4, subsection 3, Code 2009, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  Og.  Study and review proposals to increase the utilization of minority-owned and female-owned businesses, as those terms are defined in section 73.14, subsection 2, by public retirement systems when carrying out the duties of such systems, whether or not such businesses are located in the state.
    Sec. 7.  Section 411.5, Code 2009, is amended by adding the following new subsection:
   NEW SUBSECTION.  4A.  Outside advisors and services.  The board shall, when employing outside advisors or services, make a good-faith effort to utilize minority-owned and female-owned businesses, as those terms are defined in section 73.14, subsection 2, including but not limited to attorneys, accountants, financial advisors, banks, brokerage or investment advisors, underwriters, insurers, and other occupations necessary to carry out the duties of the board, whether or not such businesses are located in the state.
    Sec. 8.  NEW SECTION.  602.9103  Outside advisors ——minority-owned and female-owned businesses.

   The court administrator shall, when employing outside advisors or services, make a good-faith effort to utilize minority-owned and female-owned businesses, as those terms are defined in section 73.14, subsection 2, including but not limited to attorneys, accountants, financial advisors, banks, brokerage or investment advisors, underwriters, insurers, and other occupations necessary to carry out the duties of the system, whether or not such businesses are located in the state.
EXPLANATION
   This bill relates to the utilization of minority-owned and female-owned businesses for certain public work.
   The bill defines “minority-owned business” and “female-owned business” to mean a business that is 51 percent or more owned, operated, and actively managed by one or more minority persons or women, as applicable.
   The bill establishes new Code section 73.14, which creates a good-faith effort requirement for various governmental entities to, when issuing bonds or other obligations, utilize minority-owned and female-owned businesses for attorneys, accountants, financial advisors, banks, underwriters, insurers, and other employees necessary to carry out the issuance of bonds or other obligations, whether or not such businesses are located in the state.
   The bill requires the treasurer of state to maintain a list of minority-owned and female-owned businesses which have requested to be notified of requests for proposal. The list shall include attorneys, accountants, financial advisors, banks, underwriters, insurers, and other occupations necessary to carry out the issuance of bonds or other obligations, whether or not such businesses are located in the state. The treasurer is directed to prescribe a form for such businesses to request inclusion on the list. The list must be available on the treasurer’s internet site and available in paper form upon request.
   The bill imposes a good-faith effort requirement on the public retirement systems under Code chapters 97A, 97B, 411, and 602 to utilize minority-owned and female-owned businesses, when carrying out the duties of those systems or the duties of the board or persons that administer those systems. The bill also requires the public retirement systems committee, under Code section 97D.4, to study and review proposals to increase the utilization of minority-owned and female-owned businesses by public retirement systems, whether or not such businesses are located in the state.