Senate File 2302 - Introduced SENATE FILE 2302 BY COMMITTEE ON ECONOMIC GROWTH/REBUILD IOWA (SUCCESSOR TO SF 2215) A BILL FOR An Act relating to bidding for purchases through a competitive 1 bidding process by the state or political subdivisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5637SV (4) 84 je/nh

S.F. 2302 Section 1. Section 8A.311, Code Supplement 2011, is amended 1 by adding the following new subsections: 2 NEW SUBSECTION . 12A. If the lowest responsive bid received 3 by the state or a political subdivision for products or other 4 purchases is from an out-of-state business and totals less 5 than five hundred thousand dollars, and an Iowa-based business 6 submitted a bid which is within five percent or ten thousand 7 dollars of the price of the lowest bid, whichever is less, the 8 Iowa-based business which submitted the lowest responsive bid 9 shall be notified and shall be allowed to match the lowest bid 10 before a contract is awarded. 11 NEW SUBSECTION . 12B. A response to a request for bids 12 or proposals for products or other purchases by the state 13 or a political subdivision which totals less than five 14 hundred thousand dollars in value shall contain the following 15 information: 16 a. The percentage of the ownership of the submitting 17 business which is held by Iowa residents. 18 b. The percentage of the employees who will be carrying out 19 work in connection with the contract who are Iowa residents. 20 For the purposes of this paragraph, “employee” includes 21 part-time, temporary, contract, and substitute employees, and 22 includes employees of any contractors or subcontractors. 23 c. An estimate of the percentage of purchases to be made by 24 the submitting business in connection with the contract that 25 will be made from Iowa-based businesses. 26 d. The amount of property tax paid by the submitting 27 business during the most recently completed fiscal year for 28 which such a figure is available. 29 EXPLANATION 30 This bill provides that for purchases initiated by the 31 state or a political subdivision through a competitive bidding 32 process, if the lowest responsive bid received is from an 33 out-of-state business and totals less than $500,000, and an 34 in-state business submitted a bid which is within 5 percent or 35 -1- LSB 5637SV (4) 84 je/nh 1/ 2

S.F. 2302 $10,000 of the price of the lowest responsive bid, whichever 1 is less, the state or political subdivision shall notify the 2 in-state business which submitted the lowest responsive bid 3 and allow it to match the lowest responsive bid from the 4 out-of-state business before a contract is awarded. 5 The bill also provides that a response to a request for 6 bid or proposal for a purchase by the state or a political 7 subdivision which is less than $500,000 in value must contain 8 certain information. The required information is the 9 percentage of the ownership of the submitting business which is 10 held by Iowa residents; the percentage of employees who will be 11 carrying out work in connection with the contract who are Iowa 12 residents; an estimate of the percentage of purchases to be 13 made by the submitting business in connection with the contract 14 that will be made from Iowa-based businesses; and the amount 15 of property tax paid by the submitting business during the 16 most recently completed fiscal year for which such a figure is 17 available. For the purposes of determining how many employees 18 carrying out work in connection with the contract will be 19 Iowa residents, “employee” includes part-time, temporary, 20 contract, and substitute employees, and includes employees of 21 any contractors or subcontractors. 22 -2- LSB 5637SV (4) 84 je/nh 2/ 2