Iowa General Assembly Daily Bills, Amendments & Study Bills March 17, 2009



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HF 765

House File 765 - Introduced

HOUSE FILE

BY COMMITTEE ON ECONOMIC

GROWTH
(SUCCESSOR TO HF 587)

Passed House, Date Passed Senate, Date

Vote: Ayes Nays Vote: Ayes Nays

Approved
A BILL FOR
1 An Act relating to procurement goals for purchases from certain

2 targeted small businesses.

3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

4 TLSB 2620HV 83

5 tw/sc/24

House File 765 - Introduced continued


PAG LIN

1 1 Section 1. Section 8A.311, subsection 10, paragraph a,

1 2 Code 2009, is amended to read as follows:

1 3 a. The director shall adopt rules providing that any state

1 4 agency may, upon request, purchase directly from a vendor if

1 5 the direct purchasing is as economical or more economical than

1 6 purchasing through the department, or upon a showing that

1 7 direct purchasing by the state agency would be in the best

1 8 interests of the state due to an immediate or emergency need.

1 9 The rules shall include a provision permitting a state agency

1 10 to purchase directly from a vendor, on the agency's own

1 11 authority, if the purchase is from a targeted small business


1 12 certified pursuant to section 10A.104, will not exceed ten

1 13 twenty thousand dollars, and the purchase will contribute to

1 14 the agency complying with or exceeding the targeted small

1 15 business procurement goals under sections 73.15 through 73.21.

1 16 Sec. 2. Section 73.16, subsection 2, paragraph c,

1 17 subparagraph (3), Code 2009, is amended to read as follows:

1 18 (3) A community college, or area education agency, or

1 19 school district shall establish a procurement goal from

1 20 certified targeted small businesses, identified pursuant to

1 21 section 10A.104, subsection 8, of at least ten percent of the

1 22 value of anticipated procurements of goods and services

1 23 including construction, but not including utility services,

1 24 each fiscal year. Such a procurement goal shall be expressed

1 25 as a dollar amount of the certified purchases to be procured

1 26 from targeted small businesses and shall exceed the

1 27 procurement goal set in the prior fiscal year.

1 28 Sec. 3. Section 73.16, subsection 2, paragraph d, Code

1 29 2009, is amended by striking the paragraph.

1 30 Sec. 4. Section 73.17, unnumbered paragraph 2, Code 2009,

1 31 is amended to read as follows:

1 32 A community college or area education agency shall, on a

1 33 quarterly basis, and a school district shall, on an annual


1 34 basis, review the community college's, or area education

1 35 agency's, or school district's anticipated purchasing


House File 765 - Introduced continued
2 1 requirements. A community college, or area education agency,

2 2 or school district shall notify the department of education,

2 3 which shall report to the department of economic development,

2 4 of their anticipated purchases and recommended procurements

2 5 with unit quantities and total costs for procurement contracts

2 6 designated to satisfy the targeted small business procurement

2 7 goal not later than August 15 of each fiscal year and

2 8 quarterly thereafter, except that school districts shall

2 9 report annually.

2 10 Sec. 5. Section 73.18, Code 2009, is amended to read as

2 11 follows:

2 12 73.18 NOTICE OF SOLICITATION FOR BIDS == IDENTIFICATION OF

2 13 TARGETED SMALL BUSINESSES.

2 14 The director of each agency or department, the

2 15 administrator of each area education agency, and the president

2 16 of each community college, and the superintendent of each


2 17 school district releasing a solicitation for bids or request

2 18 for proposal under the targeted small business procurement

2 19 goal program shall consult a directory of certified targeted

2 20 small businesses produced by the department of economic

2 21 development that lists all certified targeted small businesses

2 22 by category of goods or services provided prior to or upon

2 23 release of the solicitation and shall send a copy of the

2 24 request for proposal or solicitation to any appropriate

2 25 targeted small business listed in the directory. The Iowa

2 26 department of economic development may charge the department,

2 27 agency, area education agency, or community college, or school

2 28 district a reasonable fee to cover the cost of producing,

2 29 distributing, and updating the directory.

2 30 Sec. 6. Section 73.19, Code 2009, is amended to read as

2 31 follows:

2 32 73.19 NEGOTIATED PRICE OR BID CONTRACT.

2 33 1. In awarding a contract under the targeted small

2 34 business procurement goal program, a director of an agency or

2 35 department, or community college, or area education agency, or


House File 765 - Introduced continued
3 1 school district, having purchasing authority may use either a

3 2 negotiated price or bid contract procedure.

3 3 2. A director of an agency or department, or community

3 4 college, or area education agency, or school district, using a

3 5 negotiated contract shall consider any targeted small business

3 6 engaged in that business.

3 7 3. The director of the department of economic development

3 8 or the director of the department of management may assist in

3 9 the negotiation of a contract price under this section.

3 10 4. Surety bonds guaranteed by the United States small

3 11 business administration are acceptable security for a

3 12 construction award under this section.

3 13 Sec. 7. Section 904.808, subsection 1, Code 2009, is

3 14 amended to read as follows:

3 15 1. A product possessing the performance characteristics of

3 16 a product listed in the price lists prepared pursuant to

3 17 section 904.807 shall not be purchased by any department or

3 18 agency of state government from a source other than Iowa state

3 19 industries, except under one or more of the following


3 20 circumstances:

3 21 a. When the purchase is made under emergency

3 22 circumstances, which shall be explained in writing by the

3 23 public body or officer who made or authorized the purchase if

3 24 the state director so requests; or.

3 25 b. When the state director releases, in writing, the

3 26 obligation of the department or agency to purchase the product

3 27 from Iowa state industries, after determining that Iowa state

3 28 industries is unable to meet the performance characteristics

3 29 of the purchase request for the product, and a copy of the

3 30 release is attached to the request to the director of the

3 31 department of administrative services for payment for a

3 32 similar product, or when Iowa state industries is unable to

3 33 furnish needed products, comparable in both quality and price

3 34 to those available from alternative sources, within a

3 35 reasonable length of time. Any disputes arising between a


House File 765 - Introduced continued

4 1 purchasing department or agency and Iowa state industries

4 2 regarding similarity of products, or comparability of quality

4 3 or price, or the availability of the product, shall be

4 4 referred to the director of the department of administrative

4 5 services, whose decision shall be subject to appeal as

4 6 provided in section 8A.313. However, if the purchasing

4 7 department is the department of administrative services, any

4 8 matter which would be referred to the director under this

4 9 paragraph shall be referred to the executive council in the

4 10 same manner as if the matter were to be heard by the director

4 11 of the department of administrative services. The decision of

4 12 the executive council is final.

4 13 c. When the purchase is from a targeted small business

4 14 certified pursuant to section 10A.104, will not exceed twenty

4 15 thousand dollars, and will contribute to the agency complying

4 16 with or exceeding the targeted small business procurement


4 17 goals under sections 73.15 through 73.21.

4 18 EXPLANATION

4 19 This bill relates to procurement goals for purchases from

4 20 targeted small businesses.

4 21 Current law provides for certain procurement requirements

4 22 for community colleges, area education agencies, and school

4 23 districts. The bill removes school districts from these

4 24 procurement requirements. The bill also requires community

4 25 colleges and area education agencies, but not school

4 26 districts, to set yearly procurement goals, expressed as a

4 27 dollar amount of certified purchases, for purchases from

4 28 targeted small businesses certified by the department of

4 29 inspections and appeals pursuant to Code section 10A.104.

4 30 Current law allows state agencies to purchase directly from

4 31 a vendor if the purchase is less than $10,000 and contributes

4 32 to the agency meeting the targeted small business procurement

4 33 goal. The bill provides that purchases may be less than

4 34 $20,000 if they are from a targeted small business certified

4 35 pursuant to Code section 10A.104.

House File 765 - Introduced continued

5 1 Current law prohibits the purchase of certain products by

5 2 state agencies from a source other than Iowa state industries

5 3 except in a limited set of circumstances. The bill provides

5 4 that purchases less than $20,000 from a targeted small

5 5 business that contribute to the agency's compliance with the

5 6 targeted small business procurement goals are one of the

5 7 circumstances in which a state agency may purchase products

5 8 from a source other than Iowa state industries.

5 9 LSB 2620HV 83

5 10 tw/sc/24






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