Senate
Study
Bill
1145
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
LABOR
AND
BUSINESS
RELATIONS
BILL
BY
CHAIRPERSON
SCHULTZ)
A
BILL
FOR
An
Act
relating
to
bidding
and
contracting
for
public
1
improvement
projects,
making
penalties
applicable,
and
2
including
effective
date
and
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
26.9,
Code
2017,
is
amended
to
read
as
1
follows:
2
26.9
Award
of
contract.
3
1.
The
contract
for
the
public
improvement
must
be
awarded
4
to
the
lowest
responsive,
responsible
bidder.
However,
5
contracts
relating
to
public
utilities
or
extensions
or
6
improvements
thereof,
as
described
in
sections
384.80
through
7
384.94
,
may
be
awarded
by
the
city
as
it
deems
to
be
in
the
best
8
interests
of
the
city.
This
section
shall
not
be
construed
to
9
prohibit
a
governmental
entity
in
the
award
of
a
contract
for
a
10
public
improvement
or
a
governing
body
of
a
city
utility
from
11
providing,
in
the
award
of
a
contract
for
a
public
improvement,
12
an
enhancement
of
payments
upon
early
completion
of
the
public
13
improvement
if
the
availability
of
the
enhancement
payments
is
14
included
in
the
notice
to
bidders,
the
enhancement
payments
are
15
competitively
neutral
to
potential
bidders,
the
enhancement
16
payments
are
considered
as
a
separate
item
in
the
public
17
hearing
on
the
award
of
contract,
and
the
total
value
of
the
18
enhancement
payments
does
not
exceed
ten
percent
of
the
value
19
of
the
contract.
20
2.
A
governmental
entity
shall
not
require
a
potential
21
bidder
on
a
public
improvement
to
provide
any
information
which
22
the
potential
bidder
may
deem
to
be
confidential
or
proprietary
23
as
a
requirement
for
being
deemed
a
responsive,
responsible
24
bidder.
This
subsection
shall
not
be
construed
to
prohibit
a
25
governmental
entity
from
obtaining
information
from
the
lowest
26
responsive
bidder
to
determine
the
bidder’s
responsibility
27
relating
to
the
bidder’s
experience,
number
of
employees,
28
and
ability
to
finance
the
cost
of
the
public
improvement.
29
However,
a
governmental
entity
shall
require
nonresident
30
bidders
to
comply
with
section
73A.21,
subsection
4.
31
Sec.
2.
NEW
SECTION
.
26.16
Prequalification
requirements
32
prohibited.
33
A
governmental
entity
shall
not
by
ordinance,
rule,
or
any
34
other
action
relating
to
contracts
for
public
improvements
35
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_____
for
which
competitive
bids
are
required
by
this
chapter
1
impose
any
requirement
that
directly
or
indirectly
restricts
2
potential
bidders
to
any
predetermined
class
of
bidders
defined
3
by
experience
on
similar
projects,
size
of
company,
union
4
membership,
or
any
other
criteria.
However,
a
governmental
5
entity
shall
require
nonresident
bidders
to
comply
with
section
6
73A.21,
subsection
4.
7
Sec.
3.
Section
73A.1,
Code
2017,
is
amended
to
read
as
8
follows:
9
73A.1
Definitions.
10
As
used
in
this
subchapter:
11
1.
“Appeal
board”
as
used
in
this
chapter
means
the
state
12
appeal
board,
composed
of
the
auditor
of
state,
treasurer
of
13
state,
and
the
director
of
the
department
of
management.
14
2.
“Municipality”
as
used
in
this
chapter
means
township
or
15
the
state
fair
board.
16
3.
“Public
improvement”
as
used
in
this
chapter
means
a
17
building
or
other
construction
work
to
be
paid
for
in
whole
or
18
in
part
by
the
use
of
funds
of
any
municipality.
19
Sec.
4.
Section
73A.16,
Code
2017,
is
amended
to
read
as
20
follows:
21
73A.16
Bonds
and
taxes
void.
22
Any
bonds
or
other
evidence
of
indebtedness
issued
contrary
23
to
the
provisions
of
this
chapter
subchapter
,
and
any
tax
24
levied
or
attempted
to
be
levied
for
the
payment
of
any
such
25
bonds
or
interest
thereon,
shall
be
null
and
void.
26
Sec.
5.
NEW
SECTION
.
73A.25
Title.
27
This
subchapter
shall
be
known
as
the
“Fair
and
Open
28
Competition
in
Governmental
Construction
Act”
.
29
Sec.
6.
NEW
SECTION
.
73A.26
Purpose.
30
The
purpose
of
this
chapter
is
to
provide
for
more
31
economical,
nondiscriminatory,
neutral,
and
efficient
32
procurement
of
construction-related
goods
and
services
by
this
33
state
and
political
subdivisions
of
this
state.
34
Sec.
7.
NEW
SECTION
.
73A.27
Definitions.
35
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_____
As
used
in
this
subchapter,
unless
the
context
clearly
1
indicates
otherwise:
2
1.
“Governmental
entity”
means
the
state,
political
3
subdivisions
of
the
state,
public
school
corporations,
and
all
4
officers,
boards,
or
commissions
empowered
by
law
to
enter
into
5
contracts
for
the
construction
of
public
improvements.
6
2.
“Public
improvement”
means
any
building
or
construction
7
work
which
is
constructed,
repaired,
remodeled,
or
demolished
8
under
the
control
of
a
governmental
entity
and
is
paid
for
9
in
whole
or
in
part
with
funds
of
the
governmental
entity,
10
including
a
building
or
improvement
constructed
or
operated
11
jointly
with
any
other
public
or
private
agency.
12
Sec.
8.
NEW
SECTION
.
73A.28
Public
improvement
contracts
——
13
prohibited
terms
and
exemptions.
14
1.
A
governmental
entity
awarding
a
contract
for
the
15
construction,
repair,
remodeling,
or
demolition
of
a
public
16
improvement
and
any
construction
manager
acting
on
its
behalf
17
shall
not,
in
any
bid
specifications,
project
agreements,
or
18
other
controlling
documents
do
any
of
the
following:
19
a.
Require
a
bidder,
offeror,
contractor,
or
subcontractor
20
to
enter
into
or
adhere
to
an
agreement
with
one
or
more
labor
21
organizations
in
regard
to
the
public
improvement
or
a
related
22
public
improvement
project.
23
b.
Prohibit
a
bidder,
offeror,
contractor,
or
subcontractor
24
from
entering
into
or
adhering
to
an
agreement
with
one
or
more
25
labor
organizations
in
regard
to
the
public
improvement
or
a
26
related
public
improvement
project.
27
c.
Discriminate
against
a
bidder,
offeror,
contractor,
or
28
subcontractor
for
becoming
or
remaining
or
refusing
to
become
29
or
remain
a
signatory
to,
or
for
adhering
or
refusing
to
adhere
30
to,
an
agreement
with
one
or
more
labor
organizations
in
regard
31
to
the
public
improvement
or
a
related
public
improvement
32
project.
33
2.
A
governmental
entity
shall
not
award
a
grant,
tax
34
abatement,
or
tax
credit
that
is
conditioned
upon
a
requirement
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that
the
awardee
include
a
term
described
in
subsection
1
1
in
a
contract
document
for
any
construction,
improvement,
2
maintenance,
or
renovation
to
real
property
or
fixtures
that
is
3
the
subject
of
the
grant,
tax
abatement,
or
tax
credit.
4
3.
This
section
shall
not
be
construed
to
do
any
of
the
5
following:
6
a.
Prohibit
a
governmental
entity
from
awarding
a
contract,
7
grant,
tax
abatement,
or
tax
credit
to
a
private
owner,
bidder,
8
contractor,
or
subcontractor
who
enters
into
or
who
is
party
to
9
an
agreement
with
a
labor
organization,
if
being
or
becoming
10
a
party
or
adhering
to
an
agreement
with
a
labor
organization
11
is
not
a
condition
for
award
of
the
contract,
grant,
tax
12
abatement,
or
tax
credit,
and
if
the
governmental
entity
does
13
not
discriminate
against
a
private
owner,
bidder,
contractor,
14
or
subcontractor
in
the
awarding
of
that
contract,
grant,
15
tax
abatement,
or
tax
credit
based
upon
the
private
owner’s,
16
bidder’s,
contractor’s,
or
subcontractor’s
status
as
being
or
17
becoming,
or
the
willingness
or
refusal
to
become,
a
party
to
18
an
agreement
with
a
labor
organization.
19
b.
Prohibit
a
contractor
or
subcontractor
from
voluntarily
20
entering
into
or
complying
with
an
agreement
entered
into
with
21
one
or
more
labor
organizations
in
regard
to
a
contract
with
a
22
governmental
entity
or
funded
in
whole
or
in
part
from
a
grant,
23
tax
abatement,
or
tax
credit
from
the
governmental
entity.
24
c.
Prohibit
employers
or
other
parties
from
entering
into
25
agreements
or
engaging
in
any
other
activity
protected
by
the
26
federal
National
Labor
Relations
Act,
29
U.S.C.
§151
et
seq.
27
d.
Interfere
with
labor
relations
of
parties
that
are
not
28
regulated
under
the
federal
National
Labor
Relations
Act,
29
29
U.S.C.
§151
et
seq.
30
Sec.
9.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
31
immediate
importance,
takes
effect
upon
enactment.
32
Sec.
10.
APPLICABILITY.
This
Act
applies
to
notices
to
33
bidders
for
public
improvements,
bids
awarded
for
public
34
improvements,
and
contracts
for
public
improvements
entered
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into
on
and
after
the
effective
date
of
this
Act.
1
EXPLANATION
2
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
3
the
explanation’s
substance
by
the
members
of
the
general
assembly.
4
IOWA
CONSTRUCTION
BIDDING
PROCEDURES
ACT.
This
bill
5
prohibits
a
governmental
entity
from
requiring
a
potential
6
bidder
on
a
public
improvement
to
provide
any
information
which
7
the
potential
bidder
may
deem
to
be
confidential
or
proprietary
8
as
a
requirement
for
being
deemed
a
responsive,
responsible
9
bidder.
This
provision
shall
not
be
construed
to
prohibit
a
10
governmental
entity
from
obtaining
information
from
the
lowest
11
responsive
bidder
to
determine
the
bidder’s
responsibility
12
relating
to
the
bidder’s
experience,
number
of
employees,
13
and
ability
to
finance
the
cost
of
the
public
improvement.
14
However,
the
bill
provides
that
a
governmental
entity
must
15
still
require
nonresident
bidders
to
comply
with
the
preference
16
disclosure
requirements
of
Code
section
73A.21,
subsection
4.
17
The
bill
also
prohibits
a
governmental
entity
from
imposing
18
any
requirement
that
directly
or
indirectly
restricts
potential
19
bidders
to
any
predetermined
class
of
bidders
by
ordinance,
20
rule,
or
any
other
action
relating
to
contracts
for
public
21
improvements
for
which
competitive
bids
are
required
by
Code
22
chapter
26.
However,
the
bill
provides
that
a
governmental
23
entity
must
still
require
nonresident
bidders
to
comply
with
24
the
preference
disclosure
requirements
of
Code
section
73A.21,
25
subsection
4.
26
Current
Code
chapter
26
defines
“governmental
entity”
27
as
the
state,
political
subdivisions
of
the
state,
public
28
school
corporations,
and
all
officers,
boards,
or
commissions
29
empowered
by
law
to
enter
into
contracts
for
the
construction
30
of
public
improvements,
excluding
the
state
board
of
regents
31
and
the
state
department
of
transportation.
Code
chapter
26
32
also
defines
“public
improvement”
as
a
building
or
construction
33
work
which
is
constructed
under
the
control
of
a
governmental
34
entity
and
is
paid
for
in
whole
or
in
part
with
funds
of
the
35
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governmental
entity,
including
a
building
or
improvement
1
constructed
or
operated
jointly
with
any
other
public
or
2
private
agency,
but
excluding
urban
renewal
demolition
and
3
low-rent
housing
projects,
industrial
aid
projects
authorized
4
under
Code
chapter
419,
emergency
work
or
repair
or
maintenance
5
work
performed
by
employees
of
a
governmental
entity,
and
6
excluding
a
highway,
bridge,
or
culvert
project,
and
excluding
7
construction
or
repair
or
maintenance
work
performed
for
a
city
8
utility
under
Code
chapter
388
by
its
employees
or
performed
9
for
a
rural
water
district
under
Code
chapter
357A
by
its
10
employees.
11
FAIR
AND
OPEN
COMPETITION
IN
GOVERNMENTAL
CONSTRUCTION
12
ACT.
The
bill
creates
a
new
subchapter
of
Code
chapter
73A,
13
the
fair
and
open
competition
in
governmental
construction
14
Act.
The
purpose
of
the
Act
is
to
provide
for
more
economical,
15
nondiscriminatory,
neutral,
and
efficient
procurement
of
16
construction-related
goods
and
services
by
this
state
and
17
political
subdivisions
of
this
state.
18
The
bill
prohibits
a
governmental
entity
from
awarding
19
a
contract
for
the
construction,
repair,
remodeling,
or
20
demolition
of
a
public
improvement
and
any
construction
manager
21
acting
on
its
behalf
from
engaging
in
certain
activities
in
any
22
bid
specifications,
project
agreements,
or
other
controlling
23
documents.
24
The
governmental
entity
or
construction
manager
is
25
prohibited
from
requiring
a
bidder,
offeror,
contractor,
or
26
subcontractor
to
enter
into
or
adhere
to
an
agreement
with
one
27
or
more
labor
organizations
in
regard
to
the
public
improvement
28
or
a
related
public
improvement
project.
29
The
governmental
entity
or
construction
manager
is
30
prohibited
from
prohibiting
a
bidder,
offeror,
contractor,
or
31
subcontractor
from
entering
into
or
adhering
to
an
agreement
32
with
one
or
more
labor
organizations
in
regard
to
the
public
33
improvement
or
a
related
public
improvement
project.
34
The
governmental
entity
or
construction
manager
is
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_____
prohibited
from
discriminating
against
a
bidder,
offeror,
1
contractor,
or
subcontractor
for
becoming
or
remaining
or
2
refusing
to
become
or
remain
a
signatory
to,
or
for
adhering
3
or
refusing
to
adhere
to,
an
agreement
with
one
or
more
labor
4
organizations
in
regard
to
the
public
improvement
or
a
related
5
public
improvement
project.
6
The
bill
also
prohibits
a
governmental
entity
from
awarding
7
a
grant,
tax
abatement,
or
tax
credit
that
is
conditioned
8
upon
a
requirement
that
the
awardee
include
a
term
which
the
9
governmental
entity
is
prohibited
by
the
bill
from
imposing
10
in
a
contract
document
for
any
construction,
improvement,
11
maintenance,
or
renovation
to
real
property
or
fixtures
that
is
12
the
subject
of
the
grant,
tax
abatement,
or
tax
credit.
13
The
bill
specifies
certain
activities
which
the
bill
shall
14
not
be
construed
to
prohibit.
15
The
new
subchapter
of
Code
chapter
73A
defines
“governmental
16
entity”
as
the
state,
political
subdivisions
of
the
state,
17
public
school
corporations,
and
all
officers,
boards,
or
18
commissions
empowered
by
law
to
enter
into
contracts
for
the
19
construction
of
public
improvements,
and
defines
“public
20
improvement”
as
any
building
or
construction
work
which
is
21
constructed
repaired,
remodeled,
or
demolished
under
the
22
control
of
a
governmental
entity
and
is
paid
for
in
whole
or
23
in
part
with
funds
of
the
governmental
entity,
including
a
24
building
or
improvement
constructed
or
operated
jointly
with
25
any
other
public
or
private
agency.
26
Under
Code
section
24.24,
failure
on
the
part
of
a
public
27
official
to
perform
any
of
the
duties
prescribed
in
Code
28
chapter
73A
constitutes
a
simple
misdemeanor
and
is
sufficient
29
ground
for
removal
from
office.
A
simple
misdemeanor
is
30
punishable
by
confinement
for
no
more
than
30
days
or
a
fine
of
31
at
least
$65
but
not
more
than
$625
or
by
both.
32
GENERAL
PROVISIONS.
The
bill
takes
effect
upon
enactment.
33
The
bill
applies
to
notices
to
bidders
for
public
improvements,
34
bids
awarded
for
public
improvements,
and
contracts
for
public
35
-7-
LSB
1698XC
(6)
87
je/rj
7/
8
S.F.
_____
improvements
entered
into
on
and
after
the
effective
date
of
1
the
bill.
2
-8-
LSB
1698XC
(6)
87
je/rj
8/
8