Senate File 2127 - Introduced SENATE FILE 2127 BY PETERSEN , JOCHUM , and McCOY A BILL FOR An Act concerning the establishment of a process for the 1 debarment of a person from entering into certain state 2 contracts with a state agency. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5616XS (4) 86 ec/nh

S.F. 2127 Section 1. Section 8A.311, Code 2016, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 23. An agency, including an institution 3 under the control of the state board of regents, shall not 4 enter into a contract, or authorize a contract, with a person 5 who is debarred as provided in section 8A.319. 6 Sec. 2. NEW SECTION . 8A.319 Vendor debarment. 7 1. The department shall establish a process to debar a 8 person from eligibility to enter into a contract with an 9 agency, including an institution under the control of the 10 state board of regents, pursuant to the competitive bidding 11 requirements of section 8A.311, subject to the requirements of 12 this section. 13 2. The department may debar a person from eligibility to 14 enter into a contract with an agency, including an institution 15 under the control of the state board of regents, for a period 16 of not more than three years for any of the following reasons: 17 a. The person, including any employee of the person, 18 has been convicted of a criminal offense as an incident to 19 obtaining or attempting to obtain a public or private contract 20 or subcontract, or in the performance of such contract or 21 subcontract. 22 b. The person, including any employee of the person, 23 has been convicted, or has had a final determination in a 24 civil action under a state or federal statute, of fraud, 25 embezzlement, theft, forgery, bribery, falsification or 26 destruction of records, receiving stolen property, violation 27 of the federal False Claims Act, 31 U.S.C. §3729 et seq., 28 violation of chapter 685, or any other offense indicating a 29 lack of business integrity or business honesty that currently, 30 seriously, and directly affects responsibility as a state 31 contractor. 32 c. The person, including any employee of the person, has 33 been convicted under a state or federal antitrust statute 34 arising out of the submission of a bid or proposal. 35 -1- LSB 5616XS (4) 86 ec/nh 1/ 4

S.F. 2127 d. The person has had two or more violations within the 1 previous five years of the federal Labor Relations Act as 2 determined by the national labor relations board or a court of 3 competent jurisdiction. 4 e. The person has violated a provision of a contract in a 5 manner that is regarded by the director to be so serious as to 6 justify debarment action and that meets any of the following 7 conditions: 8 (1) Deliberate failure without good cause to perform in 9 accordance with the specifications or within the time limit 10 provided in the contract. 11 (2) A recent record of failure to perform or of 12 unsatisfactory performance in accordance with the terms of 13 one or more contracts. However, the failure to perform or 14 unsatisfactory performance caused by acts beyond the control of 15 the person shall not be considered a basis for debarment. 16 f. Any other cause the director determines to be so 17 serious and compelling as to affect responsibility as a state 18 contractor, including debarment by another governmental entity 19 for any cause. 20 3. The process for the debarment of a person shall commence 21 by delivering to the person notice, by means authorized by 22 section 17A.18, setting forth the particular reasons for such 23 action and the length of the debarment. 24 a. If a written request for a hearing is not received 25 within thirty days after the delivery of notice as provided in 26 this subsection, the debarment shall become effective pending 27 a final determination by the department. The determination 28 involved in the notice may be affirmed, modified, or set aside 29 by the department in a written decision. 30 b. If a request for a hearing is timely received by the 31 department, the person shall be given an opportunity for a 32 prompt and fair hearing before the department and the debarment 33 shall be deemed suspended until the department makes a final 34 determination. The procedure governing hearings authorized 35 -2- LSB 5616XS (4) 86 ec/nh 2/ 4

S.F. 2127 by this paragraph shall be in accordance with the rules 1 promulgated by the department and chapter 17A. 2 4. A copy of the final decision of the department shall be 3 sent to the person by electronic mail or certified mail, with 4 return receipt requested, or served personally upon the person. 5 The person may seek judicial review in accordance with the 6 terms of the Iowa administrative procedure Act, chapter 17A. 7 5. The department shall adopt rules to implement the 8 requirements of this section. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill provides that a state agency shall not enter into 13 a contract with a person who has been debarred pursuant to the 14 requirements of the bill. 15 Code section 8A.311, concerning competitive bidding 16 requirements, is amended to provide that a state agency, 17 including an institution under the control of the state board 18 of regents, shall not enter into a contract, or authorize a 19 contract, with a person who is debarred. 20 New Code section 8A.319 establishes the process for DAS 21 to debar a person from eligibility to enter into a contract 22 with a state agency, including an institution under the 23 control of the state board of regents. The new Code section 24 provides that the length of the debarment shall not exceed 25 three years, specifies the reasons to debar a person, and 26 establishes the administrative process, including rights for 27 a hearing and judicial review, for debarring a person. The 28 bill provides that reasons for debarment of a person include 29 a criminal offense conviction as an incident to obtaining or 30 attempting to obtain a public or private contract, conviction 31 or civil action determination of an offense indicating a lack 32 of business integrity or honesty, conviction under a state or 33 federal antitrust statute arising out of the submission of a 34 bid or proposal, violations of the federal Labor Relations Act, 35 -3- LSB 5616XS (4) 86 ec/nh 3/ 4

S.F. 2127 certain violations of contract provisions, and any other cause 1 the DAS director determines to be so serious and compelling 2 as to affect responsibility as a state contractor, including 3 debarment by another governmental entity for any cause. 4 -4- LSB 5616XS (4) 86 ec/nh 4/ 4