House File 587 - Introduced
HOUSE FILE
BY FORD
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to state agencies' procurement goals for
2 purchases from certain targeted small businesses.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2620YH 83
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PAG LIN
1 1 Section 1. Section 73.16, subsection 2, paragraph c,
1 2 subparagraph (3), Code 2009, is amended to read as follows:
1 3 (3) A community college, area education agency, or school
1 4 district shall establish a procurement goal from certified
1 5 targeted small businesses, identified pursuant to section
1 6 10A.104, subsection 8, of at least ten percent of the value of
1 7 anticipated procurements of goods and services including
1 8 construction, but not including utility services, each fiscal
1 9 year. Such a procurement goal shall be expressed as a dollar
1 10 amount of the certified purchases to be procured from targeted
1 11 small businesses and shall exceed the procurement goal set in
1 12 the prior fiscal year.
1 13 Sec. 2. Section 73.16, subsection 2, paragraph d, Code
1 14 2009, is amended by striking the paragraph.
1 15 Sec. 3. Section 8A.311, subsection 10, paragraph a, Code
1 16 2009, is amended to read as follows:
1 17 a. The director shall adopt rules providing that any state
1 18 agency may, upon request, purchase directly from a vendor if
1 19 the direct purchasing is as economical or more economical than
1 20 purchasing through the department, or upon a showing that
1 21 direct purchasing by the state agency would be in the best
1 22 interests of the state due to an immediate or emergency need.
1 23 The rules shall include a provision permitting a state agency
1 24 to purchase directly from a vendor, on the agency's own
1 25 authority, if the purchase is from a targeted small business
1 26 meeting the requirements of section 15.102 or a targeted small
1 27 business certified pursuant to section 10A.104, will not
1 28 exceed ten twenty thousand dollars, and the purchase will
1 29 contribute to the agency complying with or exceeding the
1 30 targeted small business procurement goals under sections 73.15
1 31 through 73.21.
1 32 Sec. 4. Section 904.808, subsection 1, Code 2009, is
1 33 amended to read as follows:
1 34 1. A product possessing the performance characteristics of
1 35 a product listed in the price lists prepared pursuant to
2 1 section 904.807 shall not be purchased by any department or
2 2 agency of state government from a source other than Iowa state
2 3 industries, except under one or more of the following
2 4 circumstances:
2 5 a. When the purchase is made under emergency
2 6 circumstances, which shall be explained in writing by the
2 7 public body or officer who made or authorized the purchase if
2 8 the state director so requests; or.
2 9 b. When the state director releases, in writing, the
2 10 obligation of the department or agency to purchase the product
2 11 from Iowa state industries, after determining that Iowa state
2 12 industries is unable to meet the performance characteristics
2 13 of the purchase request for the product, and a copy of the
2 14 release is attached to the request to the director of the
2 15 department of administrative services for payment for a
2 16 similar product, or when Iowa state industries is unable to
2 17 furnish needed products, comparable in both quality and price
2 18 to those available from alternative sources, within a
2 19 reasonable length of time. Any disputes arising between a
2 20 purchasing department or agency and Iowa state industries
2 21 regarding similarity of products, or comparability of quality
2 22 or price, or the availability of the product, shall be
2 23 referred to the director of the department of administrative
2 24 services, whose decision shall be subject to appeal as
2 25 provided in section 8A.313. However, if the purchasing
2 26 department is the department of administrative services, any
2 27 matter which would be referred to the director under this
2 28 paragraph shall be referred to the executive council in the
2 29 same manner as if the matter were to be heard by the director
2 30 of the department of administrative services. The decision of
2 31 the executive council is final.
2 32 c. When the purchase is from a targeted small business
2 33 meeting the requirements of section 15.102, will not exceed
2 34 twenty thousand dollars, and will contribute to the agency
2 35 complying with or exceeding the targeted small business
3 1 procurement goals under sections 73.15 through 73.21.
3 2 EXPLANATION
3 3 This bill relates to state government procurement goals for
3 4 purchases from targeted small businesses.
3 5 Current law provides for certain procurement requirements
3 6 by community colleges, area education agencies, and school
3 7 districts. The bill requires community colleges, but not area
3 8 education agencies or school districts, to set yearly
3 9 procurement goals for the purchases from targeted small
3 10 businesses certified by the department of inspections and
3 11 appeals pursuant to Code section 10A.104.
3 12 Current law allows state agencies to purchase directly from
3 13 a vendor if the purchase is less than $10,000 and contributes
3 14 to the agency meeting the targeted small business procurement
3 15 goal. The bill provides that purchases may be less than
3 16 $20,000 if they are from a targeted small business as defined
3 17 in Code section 15.102 or a targeted small business certified
3 18 pursuant to Code section 10A.104.
3 19 Current law prohibits the purchase of certain products by
3 20 state agencies from a source other than Iowa state industries
3 21 except in a limited set of circumstances. The bill provides
3 22 that purchases less than $20,000 from a targeted small
3 23 business as defined in Code section 15.102 that contribute to
3 24 the agency's compliance with the targeted small business
3 25 procurement goals are one of the circumstances in which a
3 26 state agency may purchase products from Iowa state industries.
3 27 LSB 2620YH 83
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