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House File 730 - IntroducedA Bill ForAn Act 1relating to conflicts of interest in certain government
2public contracts.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 279.7A, Code 2019, is amended to read as
2follows:
3279.7A Interest in public contracts prohibited — exceptions.
41. A member of the board of directors of a school
5corporation shall not have an interest, direct or indirect, in
6a contract for the purchase of goods, including materials and
7profits, and the performance of services for the director’s
8school corporation. A contract entered into in violation of
9this section is void.
102. This section does not apply to contracts for the
11purchase of goods or services which benefit a director, or
12to compensation for part-time or temporary employment which
13benefits a director, if the benefit to the director does not
14exceed two six thousand five hundred dollars in a fiscal year,
15and contracts made by a school board, upon competitive bid in
16writing, publicly invited and opened.
173. This section does not apply to a contract that is a
18bond, note, or other obligation of a school corporation if the
19contract is not acquired directly from the school corporation,
20but is acquired in a transaction with a third party, who may
21or may not be the original underwriter, purchaser, or obligee
22of the contract, or to a contract in which a director has an
23interest solely by reason of employment if the contract is made
24by competitive bid in writing, publicly invited and opened, or
25if the remuneration of employment will not be directly affected
26as a result of the contract and the duties of employment do not
27directly involve the procurement or preparation of any part of
28the contract.
294. The competitive bid qualification of this section
30does not apply to a contract for professional services not
31customarily awarded by competitive bid.
32 Sec. 2. Section 331.342, subsection 2, paragraph j, Code
332019, is amended to read as follows:
34j. Contracts not otherwise permitted by this section, for
35the purchase of goods or services by a county, which benefit a
-1-1county officer or employee, if the purchases benefiting that
2officer or employee do not exceed a cumulative total purchase
3price of one six thousand five hundred dollars in a fiscal
4year.
5 Sec. 3. Section 362.5, subsection 3, paragraph j, Code 2019,
6is amended to read as follows:
7j. Contracts not otherwise permitted by this section, for
8the purchase of goods or services by a city having a population
9of more than two thousand five hundred, which benefit a city
10officer or employee, if the purchases benefiting that officer
11or employee do not exceed a cumulative total purchase price of
12one six thousand five hundred dollars in a fiscal year.
13 Sec. 4. Section 362.5, subsection 3, paragraph k, Code 2019,
14is amended by striking the paragraph.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
18Current Code provisions generally restrict school board
19members and city and county officers and employees from
20entering into contracts with the applicable governmental entity
21or having an interest, direct or indirect, in a contract with
22the entity. The prohibition does not, however, apply to
23contracts if purchases benefiting the individual do not exceed
24specified value thresholds in a fiscal year. The current
25thresholds are $2,500 for school board members, $1,500 for
26county officers or employees, $1,500 for officers or employees
27of a city with a population of more than 2,500, and $2,500 for
28officers or employees of a city with a population of 2,500 or
29less. This bill increases all such contract threshold amounts
30to $6,000.
31By operation of law, the threshold amount changes in the bill
32also apply to other provisions governing school board members
33and provisions governing certain school organizations and clubs
34under Code section 298A.15, port authorities under Code chapter
3528J, regional transit districts under Code chapter 28M, and
-2-1county enterprise commissions under Code section 331.471.
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2public contracts.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 279.7A, Code 2019, is amended to read as
2follows:
3279.7A Interest in public contracts prohibited — exceptions.
41. A member of the board of directors of a school
5corporation shall not have an interest, direct or indirect, in
6a contract for the purchase of goods, including materials and
7profits, and the performance of services for the director’s
8school corporation. A contract entered into in violation of
9this section is void.
102. This section does not apply to contracts for the
11purchase of goods or services which benefit a director, or
12to compensation for part-time or temporary employment which
13benefits a director, if the benefit to the director does not
14exceed two six thousand five hundred dollars in a fiscal year,
15and contracts made by a school board, upon competitive bid in
16writing, publicly invited and opened.
173. This section does not apply to a contract that is a
18bond, note, or other obligation of a school corporation if the
19contract is not acquired directly from the school corporation,
20but is acquired in a transaction with a third party, who may
21or may not be the original underwriter, purchaser, or obligee
22of the contract, or to a contract in which a director has an
23interest solely by reason of employment if the contract is made
24by competitive bid in writing, publicly invited and opened, or
25if the remuneration of employment will not be directly affected
26as a result of the contract and the duties of employment do not
27directly involve the procurement or preparation of any part of
28the contract.
294. The competitive bid qualification of this section
30does not apply to a contract for professional services not
31customarily awarded by competitive bid.
32 Sec. 2. Section 331.342, subsection 2, paragraph j, Code
332019, is amended to read as follows:
34j. Contracts not otherwise permitted by this section, for
35the purchase of goods or services by a county, which benefit a
-1-1county officer or employee, if the purchases benefiting that
2officer or employee do not exceed a cumulative total purchase
3price of one six thousand five hundred dollars in a fiscal
4year.
5 Sec. 3. Section 362.5, subsection 3, paragraph j, Code 2019,
6is amended to read as follows:
7j. Contracts not otherwise permitted by this section, for
8the purchase of goods or services by a city having a population
9of more than two thousand five hundred, which benefit a city
10officer or employee, if the purchases benefiting that officer
11or employee do not exceed a cumulative total purchase price of
12one six thousand five hundred dollars in a fiscal year.
13 Sec. 4. Section 362.5, subsection 3, paragraph k, Code 2019,
14is amended by striking the paragraph.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
18Current Code provisions generally restrict school board
19members and city and county officers and employees from
20entering into contracts with the applicable governmental entity
21or having an interest, direct or indirect, in a contract with
22the entity. The prohibition does not, however, apply to
23contracts if purchases benefiting the individual do not exceed
24specified value thresholds in a fiscal year. The current
25thresholds are $2,500 for school board members, $1,500 for
26county officers or employees, $1,500 for officers or employees
27of a city with a population of more than 2,500, and $2,500 for
28officers or employees of a city with a population of 2,500 or
29less. This bill increases all such contract threshold amounts
30to $6,000.
31By operation of law, the threshold amount changes in the bill
32also apply to other provisions governing school board members
33and provisions governing certain school organizations and clubs
34under Code section 298A.15, port authorities under Code chapter
3528J, regional transit districts under Code chapter 28M, and
-2-1county enterprise commissions under Code section 331.471.
-3-ec/rn