S.F. 362 Section 1. Section 26.16, Code 2019, is amended to read as 1 follows: 2 26.16 Prequalification requirements prohibited. 3 A governmental entity , other than a county or city as 4 provided in sections 331.341 and 364.4, shall not by ordinance, 5 rule, or any other action relating to contracts for public 6 improvements for which competitive bids are required by this 7 chapter impose any requirement that directly or indirectly 8 restricts potential bidders to any predetermined class of 9 bidders defined by experience on similar projects, size of 10 company, union membership, or any other criteria. However, a 11 governmental entity shall require nonresident bidders to comply 12 with section 73A.21, subsection 4 . 13 Sec. 2. Section 331.341, Code 2019, is amended by adding the 14 following new subsections: 15 NEW SUBSECTION . 6. a. Notwithstanding section 26.16, the 16 board may, before making available a form for bid proposals, 17 plans, and specifications to a prospective bidder, except 18 suppliers and others not intending to submit a direct bid, 19 require the prospective bidder to submit a full and complete 20 sworn statement of qualifications. The statement shall consist 21 of documentation relating to the following: 22 (1) Financial ability to perform. 23 (2) Possession of necessary equipment. 24 (3) Experience in the work prescribed in the public 25 contract, including but not limited to safety record. 26 (4) Other matters that the board may require for the 27 protection and welfare of the public in the performance of a 28 public contract, including but not limited to the following: 29 (a) Background checks. 30 (b) Third-party drug testing. 31 (c) Accredited apprenticeship. 32 (d) Continuing education. 33 (e) Training pursuant to section 88.16. 34 (f) Applicable licensing. 35 -1- LSB 1823XS (5) 88 js/rn 1/ 3

S.F. 362 b. The statement shall be in writing on a standard form 1 adopted and furnished by the board. The statement shall be 2 received not less than five days prior to the time set for 3 the opening of bids. The contents of the statement shall 4 be confidential and may not be disclosed except upon the 5 written authorization of the prospective bidder furnishing the 6 statement, for necessary use by the board in qualifying the 7 prospective bidder, or in cases of actions by or against the 8 prospective bidder or the board. The board shall evaluate 9 the statement and shall find the prospective bidder either 10 qualified or unqualified. 11 NEW SUBSECTION . 7. A bid shall not be accepted from a 12 prospective bidder who has not submitted the statement as 13 provided in subsection 6, provided that any prospective bidder 14 who has previously submitted a statement to the satisfaction of 15 the board may be exempt from resubmitting the statement if so 16 determined by the board. 17 Sec. 3. Section 364.4, Code 2019, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 6. a. (1) Before making available a form 20 for bid proposals, plans, and specifications to a prospective 21 bidder, except suppliers and others not intending to submit a 22 direct bid, require the prospective bidder to submit a full and 23 complete sworn statement of qualifications, notwithstanding 24 section 26.16. The statement shall consist of documentation 25 relating to the following: 26 (a) Financial ability to perform. 27 (b) Possession of necessary equipment. 28 (c) Experience in the work prescribed in the public 29 contract, including but not limited to safety record. 30 (d) Other matters that the city may require for the 31 protection and welfare of the public in the performance of a 32 public contract, including but not limited to the following: 33 (i) Background checks. 34 (ii) Third-party drug testing. 35 -2- LSB 1823XS (5) 88 js/rn 2/ 3

S.F. 362 (iii) Accredited apprenticeship. 1 (iv) Continuing education. 2 (v) Training pursuant to section 88.16. 3 (vi) Applicable licensing. 4 (2) The statement shall be in writing on a standard form 5 adopted and furnished by the city. The statement shall be 6 received not less than five days prior to the time set for 7 the opening of bids. The contents of the statement shall 8 be confidential and may not be disclosed except upon the 9 written authorization of the prospective bidder furnishing 10 the statement, for necessary use by the city in qualifying 11 the prospective bidder, or in cases of actions by or against 12 the prospective bidder or the city. The city shall properly 13 evaluate the statement and shall find the prospective bidder 14 either qualified or unqualified. 15 b. A bid shall not be accepted from a prospective bidder 16 who has not submitted the statement as provided in paragraph 17 “a” , provided that any prospective bidder who has submitted a 18 statement to the satisfaction of the city may be exempt from 19 resubmitting the statement if so determined by the city. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill allows a county or city to require a potential 24 bidder on a public contract to submit a statement that consists 25 of documentation demonstrating the bidder’s ability to fulfill 26 the contract. The statement shall be in writing on a form 27 adopted by the county or city. The county board or municipal 28 authority shall evaluate a submitted statement and determine 29 whether a bidder is qualified. A county or city shall not 30 accept a bid from a person who has not submitted the required 31 statement unless the person had submitted a statement for a bid 32 on a prior contract and the county or city so allows. 33 -3- LSB 1823XS (5) 88 js/rn 3/ 3