Senate File 1 - Introduced SENATE FILE 1 BY MATHIS A BILL FOR An Act relating to bidding for purchases through a competitive 1 bidding process by the state. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1411XS (3) 86 tr/nh

S.F. 1 Section 1. Section 8A.311, Code 2015, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 12A. a. If the lowest responsive bid 3 received by the state for products or other purchases is from 4 an out-of-state business and totals less than five hundred 5 thousand dollars, and an Iowa-based business submitted a bid 6 which is within five percent or ten thousand dollars of the 7 price of the lowest bid, whichever is less, the Iowa-based 8 business which submitted the lowest responsive bid shall be 9 notified and shall be allowed to match the lowest bid before 10 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 d. For purposes of this subsection: 19 (1) “Iowa-based business” means an entity that has its 20 principal place of business in Iowa. 21 (2) “Public improvement” means a building or construction 22 work which is constructed under the control of a governmental 23 entity and is paid for in whole or in part with funds of the 24 governmental entity, including a building or improvement 25 constructed or operated jointly with any other public or 26 private agency, and including a highway, bridge, or culvert 27 project, but excluding emergency work or repair or maintenance 28 work performed by state employees. 29 NEW SUBSECTION . 12B. a. A response to a request for bids 30 or proposals for products or other purchases by the state which 31 totals less than five hundred thousand dollars in value shall 32 contain the following information: 33 (1) The percentage of the ownership of the submitting 34 business which is held by Iowa residents. 35 -1- LSB 1411XS (3) 86 tr/nh 1/ 4

S.F. 1 (2) The percentage of the employees who will be carrying out 1 work in connection with the contract who are Iowa residents. 2 For the purposes of this subparagraph, “employee” includes 3 part-time, temporary, contract, and substitute employees, and 4 includes employees of any contractors or subcontractors. 5 (3) An estimate of the percentage of purchases to be made by 6 the submitting business in connection with the contract that 7 will be made from Iowa-based businesses. 8 (4) Documentation showing that the submitting business 9 paid taxes, as defined in section 445.1, in this state 10 during the most recently completed fiscal year for which such 11 documentation is available. 12 b. This subsection does not apply to a request for bids or 13 proposals for products or other purchases associated with the 14 following: 15 (1) Road or bridge construction or repair. 16 (2) Architectural or engineering services. 17 c. This subsection does not apply to procurement of or for 18 public improvement projects. 19 d. For purposes of this subsection: 20 (1) “Iowa-based business” means an entity that has its 21 principal place of business in Iowa. 22 (2) “Public improvement” means a building or construction 23 work which is constructed under the control of a governmental 24 entity and is paid for in whole or in part with funds of the 25 governmental entity, including a building or improvement 26 constructed or operated jointly with any other public or 27 private agency, and including a highway, bridge, or culvert 28 project, but excluding emergency work or repair or maintenance 29 work performed by state employees. 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 This bill provides that for purchases initiated by the state 34 through a competitive bidding process, if the lowest responsive 35 -2- LSB 1411XS (3) 86 tr/nh 2/ 4

S.F. 1 bid received is from an out-of-state business and totals less 1 than $500,000, and an in-state business submitted a bid which 2 is within 5 percent or $10,000 of the price of the lowest 3 responsive bid, whichever is less, the state shall notify 4 the in-state business which submitted the lowest responsive 5 bid and allow it to match the lowest responsive bid from the 6 out-of-state business before a contract is awarded. 7 The bill also provides that a response to a request for 8 bid or proposal for a purchase by the state which is less 9 than $500,000 in value must contain certain information. 10 The required information is the percentage of the ownership 11 of the submitting business which is held by Iowa residents; 12 the percentage of employees who will be carrying out work 13 in connection with the contract who are Iowa residents; an 14 estimate of the percentage of purchases to be made by the 15 submitting business in connection with the contract that 16 will be made from Iowa-based businesses; and documentation 17 showing that the submitting business paid taxes, as defined 18 in Code section 445.1, in this state during the most recently 19 completed fiscal year for which such a figure is available. 20 For the purposes of determining how many employees carrying out 21 work in connection with the contract will be Iowa residents, 22 “employee” includes part-time, temporary, contract, and 23 substitute employees, and includes employees of any contractors 24 or subcontractors. 25 The bill does not apply to a request for bids or proposals 26 for products or other purchases associated with road or bridge 27 construction or repair, to a request for bids or proposals 28 for products or other purchases associated with architectural 29 or engineering services, or to procurement of or for public 30 improvement projects. 31 The bill defines “Iowa-based business” as an entity that 32 has its principal place of business in Iowa. The bill defines 33 “public improvement” as a building or construction work which 34 is constructed under the control of a governmental entity and 35 -3- LSB 1411XS (3) 86 tr/nh 3/ 4

S.F. 1 is paid for in whole or in part with funds of the governmental 1 entity, including a building or improvement constructed or 2 operated jointly with any other public or private agency, and 3 including a highway, bridge, or culvert project, but excluding 4 emergency work or repair or maintenance work performed by state 5 employees. 6 -4- LSB 1411XS (3) 86 tr/nh 4/ 4