S.F. 2274 Section 1. Section 8A.311, Code 2016, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 23. Except for the department of 3 transportation, an agency, including an institution under the 4 control of the state board of regents, shall not enter into 5 a contract, or authorize a contract, with a person who is 6 debarred as provided in section 8A.319. 7 Sec. 2. NEW SECTION . 8A.319 Vendor debarment. 8 1. The department shall establish a process to debar a 9 person from eligibility to enter into a contract with an 10 agency, including an institution under the control of the 11 state board of regents, pursuant to the competitive bidding 12 requirements of section 8A.311, subject to the requirements of 13 this section. For purposes of this section, “agency” does not 14 include the department of transportation. 15 2. The department may debar a person from eligibility to 16 enter into a contract with an agency, including an institution 17 under the control of the state board of regents, for a period 18 of not more than three years for any of the following reasons: 19 a. The person, including any employee of the person, 20 has been convicted of a criminal offense as an incident to 21 obtaining or attempting to obtain a public or private contract 22 or subcontract, or in the performance of such contract or 23 subcontract. 24 b. The person, including any employee of the person, 25 has been convicted, or has had a final determination in a 26 civil action under a state or federal statute, of fraud, 27 embezzlement, theft, forgery, bribery, falsification or 28 destruction of records, receiving stolen property, violation 29 of the federal False Claims Act, 31 U.S.C. §3729 et seq., 30 violation of chapter 685, or any other offense indicating a 31 lack of business integrity or business honesty that currently, 32 seriously, and directly affects responsibility as a state 33 contractor. 34 c. The person, including any employee of the person, has 35 -1- LSB 5616SV (2) 86 ec/nh 1/ 4

S.F. 2274 been convicted under a state or federal antitrust statute 1 arising out of the submission of a bid or proposal. 2 d. The person has had two or more violations within the 3 previous five years of the federal Labor Relations Act as 4 determined by the national labor relations board or a court of 5 competent jurisdiction. 6 e. The person has violated a provision of a contract in a 7 manner that is regarded by the director to be so serious as to 8 justify debarment action and that meets any of the following 9 conditions: 10 (1) Deliberate failure without good cause to perform in 11 accordance with the specifications or within the time limit 12 provided in the contract. 13 (2) A recent record of failure to perform or of 14 unsatisfactory performance in accordance with the terms of 15 one or more contracts. However, the failure to perform or 16 unsatisfactory performance caused by acts beyond the control of 17 the person shall not be considered a basis for debarment. 18 f. Any other cause the director determines to be so 19 serious and compelling as to affect responsibility as a state 20 contractor, including debarment by another governmental entity 21 for any cause. 22 3. The process for the debarment of a person shall commence 23 by delivering to the person notice, by means authorized by 24 section 17A.18, setting forth the particular reasons for such 25 action and the length of the debarment. 26 a. If a written request for a hearing is not received 27 within thirty days after the delivery of notice as provided in 28 this subsection, the debarment shall become effective pending 29 a final determination by the department. The determination 30 involved in the notice may be affirmed, modified, or set aside 31 by the department in a written decision. 32 b. If a request for a hearing is timely received by the 33 department, the person shall be given an opportunity for a 34 prompt and fair hearing before the department and the debarment 35 -2- LSB 5616SV (2) 86 ec/nh 2/ 4

S.F. 2274 shall be deemed suspended until the department makes a final 1 determination. The procedure governing hearings authorized 2 by this paragraph shall be in accordance with the rules 3 promulgated by the department and chapter 17A. 4 4. A copy of the final decision of the department shall be 5 sent to the person by electronic mail or certified mail, with 6 return receipt requested, or served personally upon the person. 7 The person may seek judicial review in accordance with the 8 terms of the Iowa administrative procedure Act, chapter 17A. 9 5. The department shall adopt rules to implement the 10 requirements of this section. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill provides that a state agency shall not enter into 15 a contract with a person who has been debarred pursuant to the 16 requirements of the bill. 17 Code section 8A.311, concerning competitive bidding 18 requirements, is amended to provide that except for the 19 department of transportation, a state agency, including an 20 institution under the control of the state board of regents, 21 shall not enter into a contract, or authorize a contract, with 22 a person who is debarred. 23 New Code section 8A.319 establishes the process for DAS to 24 debar a person from eligibility to enter into a contract with 25 a state agency, including an institution under the control of 26 the state board of regents. The bill provides that a state 27 agency does not include the department of transportation for 28 purposes of this new Code section. The new Code section 29 provides that the length of the debarment shall not exceed 30 three years, specifies the reasons to debar a person, and 31 establishes the administrative process, including rights for 32 a hearing and judicial review, for debarring a person. The 33 bill provides that reasons for debarment of a person include 34 a criminal offense conviction as an incident to obtaining or 35 -3- LSB 5616SV (2) 86 ec/nh 3/ 4

S.F. 2274 attempting to obtain a public or private contract, conviction 1 or civil action determination of an offense indicating a lack 2 of business integrity or honesty, conviction under a state or 3 federal antitrust statute arising out of the submission of a 4 bid or proposal, violations of the federal Labor Relations Act, 5 certain violations of contract provisions, and any other cause 6 the DAS director determines to be so serious and compelling 7 as to affect responsibility as a state contractor, including 8 debarment by another governmental entity for any cause. 9 -4- LSB 5616SV (2) 86 ec/nh 4/ 4