House Study Bill 642 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF ADMINISTRATIVE SERVICES BILL) A BILL FOR An Act regarding direct purchasing from vendors by agencies and 1 including effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5284XD (5) 87 js/rj
S.F. _____ H.F. _____ Section 1. Section 8A.311, subsection 10, paragraph a, Code 1 2018, is amended to read as follows: 2 a. The director shall adopt rules providing that any state 3 agency may, upon request and approval by the department, 4 purchase directly from a vendor if the direct purchasing is 5 more economical than purchasing through the department, if the 6 agency shows that direct purchasing by the state agency would 7 be in the best interests of the state due to an immediate or 8 emergency need, or if the purchase will not exceed ten thousand 9 dollars an amount established by the department by rule and 10 the purchase would contribute to the agency complying with the 11 targeted small business procurement goals under sections 73.15 12 through 73.21 . 13 Sec. 2. EMERGENCY RULES. The department shall adopt 14 emergency rules under section 17A.4, subsection 3, and section 15 17A.5, subsection 2, paragraph “b”, to implement the provisions 16 of this Act and the rules shall be effective immediately upon 17 filing unless a later date is specified in the rules. Any 18 rules adopted in accordance with this section shall also be 19 published as a notice of intended action as provided in section 20 17A.4. 21 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 22 importance, takes effect upon enactment. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 Currently, the director of the department of administrative 27 services must adopt rules to guide state agencies’ decisions 28 of whether to purchase directly from vendors or through the 29 department. An agency may purchase directly from a vendor 30 per the agency’s procurement authority if doing so is more 31 economical than purchasing through the department, if the 32 agency shows that direct purchasing is in the best interests 33 of the state due to an immediate or emergency need, or if 34 the purchase will not exceed $10,000 and the purchase would 35 -1- LSB 5284XD (5) 87 js/rj 1/ 2
S.F. _____ H.F. _____ contribute to the agency complying with targeted small business 1 procurement goals. 2 This bill deletes the $10,000 maximum amount that an agency 3 cannot exceed when making a purchase that would contribute 4 to the agency complying with the targeted small business 5 procurement goals and instead requires the department to 6 establish the maximum amount by administrative rule. The bill 7 requires the department to adopt rules to implement the bill 8 pursuant to emergency rulemaking provisions in Code chapter 9 17A. 10 The bill takes effect upon enactment. 11 -2- LSB 5284XD (5) 87 js/rj 2/ 2