House File 2457 - Introduced HOUSE FILE 2457 BY BENNETT and THORUP A BILL FOR An Act relating to bidding for purchases through a competitive 1 bidding process by the state. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5655YH (2) 89 ec/rn

H.F. 2457 Section 1. Section 8A.311, Code 2022, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 12A. a. If the lowest responsive bid 3 received by the state for products or other purchases is from 4 an out-of-state business and totals less than five hundred 5 thousand dollars, and an Iowa-based business submitted a bid 6 which is within five percent or ten thousand dollars of the 7 price of the lowest bid, whichever is less, the Iowa-based 8 business which submitted the lowest responsive bid shall be 9 notified and shall be allowed to match the lowest bid before 10 a contract is awarded. 11 b. This subsection does not apply to a request for bids or 12 proposals for products or other purchases associated with the 13 following: 14 (1) Road or bridge construction or repair. 15 (2) Architectural or engineering services. 16 c. This subsection does not apply to procurement of or for 17 public improvement projects. 18 d. For purposes of this subsection, “public improvement” 19 means a building or construction work which is constructed 20 under the control of a governmental entity and is paid for 21 in whole or in part with funds of the governmental entity, 22 including a building or improvement constructed or operated 23 jointly with any other public or private agency, and including 24 a highway, bridge, or culvert project, but excluding emergency 25 work or repair or maintenance work performed by state 26 employees. 27 NEW SUBSECTION . 12B. a. A response to a request for 28 bids or proposals for products or other purchases by the 29 state which totals less than five hundred thousand dollars in 30 value shall contain documentation showing that the submitting 31 business paid taxes, as defined in section 445.1, in this state 32 during the most recently completed fiscal year for which such 33 documentation is available. 34 b. This subsection does not apply to a request for bids or 35 -1- LSB 5655YH (2) 89 ec/rn 1/ 3

H.F. 2457 proposals for products or other purchases associated with the 1 following: 2 (1) Road or bridge construction or repair. 3 (2) Architectural or engineering services. 4 c. This subsection does not apply to procurement of or for 5 public improvement projects. 6 d. For purposes of this subsection, “public improvement” 7 means a building or construction work which is constructed 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, and including 12 a highway, bridge, or culvert project, but excluding emergency 13 work or repair or maintenance work performed by state 14 employees. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill provides that for purchases initiated by the state 19 through a competitive bidding process, if the lowest responsive 20 bid received is from an out-of-state business and totals less 21 than $500,000, and an in-state business submitted a bid which 22 is within 5 percent or $10,000 of the price of the lowest 23 responsive bid, whichever is less, the state shall notify 24 the in-state business which submitted the lowest responsive 25 bid and allow it to match the lowest responsive bid from the 26 out-of-state business before a contract is awarded. 27 The bill also provides that a response to a request for bid 28 or proposal for a purchase by the state which is less than 29 $500,000 in value must contain documentation showing that the 30 submitting business paid taxes, as defined in Code section 31 445.1, in this state during the most recently completed fiscal 32 year for which such a figure is available. 33 The bill does not apply to a request for bids or proposals 34 for products or other purchases associated with road or bridge 35 -2- LSB 5655YH (2) 89 ec/rn 2/ 3

H.F. 2457 construction or repair, to a request for bids or proposals 1 for products or other purchases associated with architectural 2 or engineering services, or to procurement of or for public 3 improvement projects. 4 The bill defines “public improvement” as a building or 5 construction work which is constructed under the control of 6 a governmental entity and is paid for in whole or in part 7 with funds of the governmental entity, including a building 8 or improvement constructed or operated jointly with any other 9 public or private agency, and including a highway, bridge, or 10 culvert project, but excluding emergency work or repair or 11 maintenance work performed by state employees. 12 -3- LSB 5655YH (2) 89 ec/rn 3/ 3