Senate File 15 - Introduced SENATE FILE 15 BY MATHIS 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 1078XS (2) 85 je/nh

S.F. 15 Section 1. Section 8A.311, Code 2013, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 12A. a. If the lowest responsive bid 3 received by the state or a political subdivision for products 4 or other purchases is from an out-of-state business and totals 5 less than five hundred thousand dollars, and an Iowa-based 6 business submitted a bid which is within five percent or ten 7 thousand dollars of the price of the lowest bid, whichever 8 is less, the Iowa-based business which submitted the lowest 9 responsive bid shall be notified and shall be allowed to match 10 the lowest bid before a contract is awarded. 11 b. This subsection does not apply to a request for bids or 12 proposals for products or other purchases associated with the 13 following: 14 (1) Road or bridge construction or repair. 15 (2) Architectural or engineering services. 16 c. This subsection does not apply to procurement of or for 17 public improvement projects. 18 NEW SUBSECTION . 12B. a. A response to a request for 19 bids or proposals for products or other purchases by the 20 state or a political subdivision which totals less than five 21 hundred thousand dollars in value shall contain the following 22 information: 23 (1) The percentage of the ownership of the submitting 24 business which is held by Iowa residents. 25 (2) The percentage of the employees who will be carrying out 26 work in connection with the contract who are Iowa residents. 27 For the purposes of this paragraph, “employee” includes 28 part-time, temporary, contract, and substitute employees, and 29 includes employees of any contractors or subcontractors. 30 (3) An estimate of the percentage of purchases to be made by 31 the submitting business in connection with the contract that 32 will be made from Iowa-based businesses. 33 (4) The amount of property tax paid by the submitting 34 business during the most recently completed fiscal year for 35 -1- LSB 1078XS (2) 85 je/nh 1/ 3

S.F. 15 which such a figure is available. 1 b. This subsection does not apply to a request for bids or 2 proposals for products or other purchases associated with the 3 following: 4 (1) Road or bridge construction or repair. 5 (2) Architectural or engineering services. 6 c. This subsection does not apply to procurement of or for 7 public improvement projects. 8 EXPLANATION 9 This bill provides that for purchases initiated by the 10 state or a political subdivision through a competitive bidding 11 process, if the lowest responsive bid received is from an 12 out-of-state business and totals less than $500,000, and an 13 in-state business submitted a bid which is within 5 percent or 14 $10,000 of the price of the lowest responsive bid, whichever 15 is less, the state or political subdivision shall notify the 16 in-state business which submitted the lowest responsive bid 17 and allow it to match the lowest responsive bid from the 18 out-of-state business before a contract is awarded. 19 The bill also provides that a response to a request for 20 bid or proposal for a purchase by the state or a political 21 subdivision which is less than $500,000 in value must contain 22 certain information. The required information is the 23 percentage of the ownership of the submitting business which is 24 held by Iowa residents; the percentage of employees who will be 25 carrying out work in connection with the contract who are Iowa 26 residents; an estimate of the percentage of purchases to be 27 made by the submitting business in connection with the contract 28 that will be made from Iowa-based businesses; and the amount 29 of property tax paid by the submitting business during the 30 most recently completed fiscal year for which such a figure is 31 available. For the purposes of determining how many employees 32 carrying out work in connection with the contract will be 33 Iowa residents, “employee” includes part-time, temporary, 34 contract, and substitute employees, and includes employees of 35 -2- LSB 1078XS (2) 85 je/nh 2/ 3

S.F. 15 any contractors or subcontractors. 1 The bill does not apply to a request for bids or proposals 2 for products or other purchases associated with road or bridge 3 construction or repair, to a request for bids or proposals 4 for products or other purchases associated with architectural 5 or engineering services, or to procurement of or for public 6 improvement projects. 7 -3- LSB 1078XS (2) 85 je/nh 3/ 3