HF 2457 (LSB 5655YH (2) 89)

HOUSE FILE 2457

BY  BENNETT and THORUP

A BILL FOR

An Act relating to bidding for purchases through a competitive bidding process by the state. 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8A.311, Code 2022, is amended by adding the following new subsections:
   NEW SUBSECTION.  12A.  a.  If the lowest responsive bid received by the state for products or other purchases is from an out-of-state business and totals less than five hundred thousand dollars, and an Iowa-based business submitted a bid which is within five percent or ten thousand dollars of the price of the lowest bid, whichever is less, the Iowa-based business which submitted the lowest responsive bid shall be notified and shall be allowed to match the lowest bid before a contract is awarded.
   b.  This subsection does not apply to a request for bids or proposals for products or other purchases associated with the following:
   (1)  Road or bridge construction or repair.
   (2)  Architectural or engineering services.
   c.  This subsection does not apply to procurement of or for public improvement projects.
   d.  For purposes of this subsection, “public improvement” means a building or construction work which is constructed under the control of a governmental entity and is paid for in whole or in part with funds of the governmental entity, including a building or improvement constructed or operated jointly with any other public or private agency, and including a highway, bridge, or culvert project, but excluding emergency work or repair or maintenance work performed by state employees.
   NEW SUBSECTION.  12B.  a.  A response to a request for bids or proposals for products or other purchases by the state which totals less than five hundred thousand dollars in value shall contain documentation showing that the submitting business paid taxes, as defined in section 445.1, in this state during the most recently completed fiscal year for which such documentation is available.
   b.  This subsection does not apply to a request for bids or proposals for products or other purchases associated with the following:
   (1)  Road or bridge construction or repair.
   (2)  Architectural or engineering services.
   c.  This subsection does not apply to procurement of or for public improvement projects.
   d.  For purposes of this subsection, “public improvement” means a building or construction work which is constructed under the control of a governmental entity and is paid for in whole or in part with funds of the governmental entity, including a building or improvement constructed or operated jointly with any other public or private agency, and including a highway, bridge, or culvert project, but excluding emergency work or repair or maintenance work performed by state employees.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill provides that for purchases initiated by the state through a competitive bidding process, if the lowest responsive bid received is from an out-of-state business and totals less than $500,000, and an in-state business submitted a bid which is within 5 percent or $10,000 of the price of the lowest responsive bid, whichever is less, the state shall notify the in-state business which submitted the lowest responsive bid and allow it to match the lowest responsive bid from the out-of-state business before a contract is awarded.
   The bill also provides that a response to a request for bid or proposal for a purchase by the state which is less than $500,000 in value must contain documentation showing that the submitting business paid taxes, as defined in Code section 445.1, in this state during the most recently completed fiscal year for which such a figure is available.
   The bill does not apply to a request for bids or proposals for products or other purchases associated with road or bridge construction or repair, to a request for bids or proposals for products or other purchases associated with architectural or engineering services, or to procurement of or for public improvement projects.
   The bill defines “public improvement” as a building or construction work which is constructed under the control of a governmental entity and is paid for in whole or in part with funds of the governmental entity, including a building or improvement constructed or operated jointly with any other public or private agency, and including a highway, bridge, or culvert project, but excluding emergency work or repair or maintenance work performed by state employees.