SF 2302 (LSB 5637SV (4) 84)

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 bidding process by the state or political subdivisions. 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8A.311, Code Supplement 2011, is amended by adding the following new subsections:
   NEW SUBSECTION.  12A.  If the lowest responsive bid received by the state or a political subdivision for products or other purchases is from an out-of-state business and totals less than five hundred thousand dollars, and an Iowa-based business submitted a bid which is within five percent or ten thousand dollars of the price of the lowest bid, whichever is less, the Iowa-based business which submitted the lowest responsive bid shall be notified and shall be allowed to match the lowest bid before a contract is awarded.
   NEW SUBSECTION.  12B.  A response to a request for bids or proposals for products or other purchases by the state or a political subdivision which totals less than five hundred thousand dollars in value shall contain the following information:
   a.  The percentage of the ownership of the submitting business which is held by Iowa residents.
   b.  The percentage of the employees who will be carrying out work in connection with the contract who are Iowa residents. For the purposes of this paragraph, “employee” includes part-time, temporary, contract, and substitute employees, and includes employees of any contractors or subcontractors. 
   c.  An estimate of the percentage of purchases to be made by the submitting business in connection with the contract that will be made from Iowa-based businesses.
   d.  The amount of property tax paid by the submitting business during the most recently completed fiscal year for which such a figure is available.
EXPLANATION
   This bill provides that for purchases initiated by the state or a political subdivision through a competitive bidding process, if the lowest responsive bid received is from an out-of-state business and totals less than $500,000, and an in-state business submitted a bid which is within 5 percent or $10,000 of the price of the lowest responsive bid, whichever is less, the state or political subdivision shall notify the in-state business which submitted the lowest responsive bid and allow it to match the lowest responsive bid from the out-of-state business before a contract is awarded.
   The bill also provides that a response to a request for bid or proposal for a purchase by the state or a political subdivision which is less than $500,000 in value must contain certain information. The required information is the percentage of the ownership of the submitting business which is held by Iowa residents; the percentage of employees who will be carrying out work in connection with the contract who are Iowa residents; an estimate of the percentage of purchases to be made by the submitting business in connection with the contract that will be made from Iowa-based businesses; and the amount of property tax paid by the submitting business during the most recently completed fiscal year for which such a figure is available. For the purposes of determining how many employees carrying out work in connection with the contract will be Iowa residents, “employee” includes part-time, temporary, contract, and substitute employees, and includes employees of any contractors or subcontractors.