Bill Text: IA HSB700 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to qualifications to bid on or submit a proposal for certain public contracts, and providing penalties.(See HF 2596.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2024-02-19 - Committee report approving bill, renumbered as HF 2596. [HSB700 Detail]
Download: Iowa-2023-HSB700-Introduced.html
House
Study
Bill
700
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
PUBLIC
SAFETY
BILL
BY
CHAIRPERSON
THOMPSON)
A
BILL
FOR
An
Act
relating
to
qualifications
to
bid
on
or
submit
a
1
proposal
for
certain
public
contracts,
and
providing
2
penalties.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
6256YC
(3)
90
sc/ns
H.F.
_____
Section
1.
NEW
SECTION
.
8A.311C
Qualifications
to
bid
or
1
submit
proposals.
2
1.
For
purposes
of
this
section:
3
a.
“Company”
means
any
sole
proprietorship,
organization,
4
association,
corporation,
partnership,
joint
venture,
limited
5
partnership,
limited
liability
partnership,
limited
liability
6
company,
or
other
entity
or
business
association,
including
7
all
wholly
owned
subsidiaries,
majority-owned
subsidiaries,
8
parent
companies,
or
affiliates
of
such
entities
or
business
9
associations,
that
exists
for
profit-making
purposes.
10
b.
“Domicile”
means
any
of
the
following:
11
(1)
The
country
in
which
a
company
is
registered.
12
(2)
The
country
in
which
the
company’s
affairs
are
primarily
13
completed.
14
(3)
The
country
in
which
the
majority
of
a
company’s
15
ownership
shares
are
held.
16
c.
“Federally
banned
company”
means
a
company
banned
from
17
doing
business
in
the
United
States
by
the
federal
government.
18
Such
bans
include
but
are
not
limited
to
those
resulting
from
19
actions
taken
by
any
of
the
following
federal
agencies
or
20
pursuant
to
any
of
the
following
federal
laws:
21
(1)
The
federal
communications
commission,
including
but
22
not
limited
to
the
covered
list
developed
pursuant
to
47
C.F.R.
23
§1.50002
and
published
by
the
public
safety
and
homeland
24
security
bureau
of
the
federal
communications
commission.
25
(2)
The
United
States
department
of
commerce.
26
(3)
The
United
States
cybersecurity
and
infrastructure
27
security
agency.
28
(4)
The
federal
acquisition
security
council.
29
(5)
Section
889
of
the
John
S.
McCain
National
Defense
30
Authorization
Act
for
Fiscal
Year
2019,
Pub.
L.
No.
115-232.
31
d.
“Foreign
adversary”
means
the
People’s
Republic
of
China,
32
the
Russian
Federation,
the
Islamic
Republic
of
Iran,
the
33
Democratic
People’s
Republic
of
Korea,
the
Republic
of
Cuba,
34
the
Venezuelan
regime
of
Nicolas
Maduro,
or
the
Syrian
Arab
35
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Republic,
including
an
agent
of
or
an
entity
under
significant
1
control
of
such
foreign
country
of
concern,
or
an
entity
deemed
2
a
foreign
adversary
by
the
governor
in
consultation
with
the
3
department.
4
e.
“Foreign
adversary
company”
means
a
company
owned
5
or
controlled,
in
whole
or
in
part,
by
the
government
of
a
6
foreign
adversary,
by
individuals
acting
in
official
government
7
capacities
of
a
foreign
adversary,
by
a
company
domiciled
in
a
8
foreign
adversary,
or
by
a
company
otherwise
under
control
of
a
9
foreign
adversary.
10
2.
Except
as
provided
under
subsection
5,
all
of
the
11
following
are
ineligible
to
bid
on
or
submit
a
proposal
for
a
12
contract
with
the
state
or
a
political
subdivision
of
the
state
13
for
goods
or
services,
including
but
not
limited
to
under
this
14
chapter,
or
chapter
8B,
26,
73,
or
73A:
15
a.
A
foreign
adversary
company.
16
b.
A
federally
banned
company.
17
c.
A
company
that
offers
to
provide
goods
or
services
18
manufactured
or
produced
by
a
foreign
adversary
company
or
19
federally
banned
company.
20
3.
A
company
that
submits
a
bid
or
proposal
for
a
contract
21
with
the
state
or
a
political
subdivision
of
the
state
22
for
goods
or
services
must
certify
that
the
company
is
not
23
ineligible
to
bid
on
the
contract
under
subsection
2.
24
4.
If
the
department
determines
that
a
company
has
submitted
25
a
false
certification
under
subsection
3,
all
of
the
following
26
apply:
27
a.
The
department
shall
assess
the
company
a
civil
penalty
28
of
not
less
than
two
hundred
fifty
thousand
dollars,
or
twice
29
the
amount
of
the
contract
for
which
a
bid
or
proposal
was
30
submitted,
whichever
is
greater.
Civil
penalties
collected
31
under
this
paragraph
shall
be
deposited
in
the
general
fund
of
32
the
state.
33
b.
The
contract
is
void.
34
c.
The
company
shall
be
ineligible
to
bid
on
a
public
35
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contract
for
sixty
months.
1
5.
Notwithstanding
subsection
2,
the
state
or
a
political
2
subdivision
of
the
state
may
enter
into
a
contract
for
goods
3
manufactured
by
a
foreign
adversary
company
or
federally
banned
4
company
if
all
of
the
following
criteria
are
met:
5
a.
There
is
no
other
reasonable
option
for
procuring
the
6
goods.
7
b.
The
contract
is
preapproved
by
the
department.
8
c.
Failure
to
procure
the
goods
would
pose
a
greater
threat
9
to
this
state
than
the
threat
associated
with
procuring
the
10
goods
from
a
foreign
adversary
company
or
federally
banned
11
company.
12
6.
Each
bid
or
offer
submitted
for
a
public
contract
must
13
include
a
disclosure
of
whether
the
bidder,
offeror,
or
its
14
corporate
parents
or
subsidiaries,
within
the
twenty-four-month
15
period
before
submission
of
the
bid
or
offer,
had
business
16
operations
that
involved
contracts
with
or
the
provision
of
17
supplies
or
services
from
or
to
a
foreign
adversary.
18
7.
A
bidder
or
offeror
that
does
not
include
the
disclosure
19
required
by
subsection
6
may
be
given
a
reasonable
period
after
20
the
bid
or
offer
is
submitted
to
cure
the
nondisclosure.
The
21
state
or
political
subdivision
may
consider
the
disclosure
when
22
evaluating
the
bid
or
offer
or
awarding
the
contract.
23
8.
Each
state
entity
or
political
subdivision
that
receives
24
a
disclosure
under
subsection
6
shall
provide
the
disclosure
25
to
the
department.
26
9.
A
company
which
wishes
to
submit
a
bid
or
offer
for
a
27
public
contract
with
the
state
or
political
subdivision
of
the
28
state
must
certify
that
the
bidder,
offeror,
or
any
of
its
29
corporate
parents
or
subsidiaries,
has
not
within
the
sixty
30
months
before
submission
of
the
bid
or
offer
had
business
31
operations
that
involved
contracts
with
or
the
provision
of
32
goods
or
services
to
a
military
entity
of
a
foreign
adversary,
33
a
foreign
adversary
company,
a
political
party
of
a
foreign
34
adversary,
or
a
federally
banned
company.
35
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10.
Each
state
entity
or
political
subdivision
shall
1
provide
the
department
with
the
name
of
each
entity
disclosed
2
under
subsection
9
as
doing
business
or
having
done
business
3
with
a
military
entity
of
a
foreign
adversary,
a
foreign
4
adversary
company,
a
political
party
of
a
foreign
adversary,
5
or
a
federally
banned
company.
6
11.
If
the
department
determines
that
a
company
has
7
submitted
a
false
certification
under
subsection
9,
all
of
the
8
following
apply:
9
a.
The
department
shall
assess
the
company
a
civil
penalty
10
of
not
less
than
two
hundred
fifty
thousand
dollars,
or
twice
11
the
amount
of
the
contract
for
which
a
bid
or
proposal
was
12
submitted,
whichever
is
greater.
Civil
penalties
collected
13
under
this
paragraph
shall
be
deposited
in
the
general
fund
of
14
the
state.
15
b.
The
contract
is
void.
16
c.
The
company
shall
be
ineligible
to
bid
on
a
public
17
contract
for
sixty
months.
18
Sec.
2.
Section
26.16,
Code
2024,
is
amended
to
read
as
19
follows:
20
26.16
Prequalification
requirements
prohibited.
21
A
Except
to
the
extent
provided
in
section
8A.311C,
a
22
governmental
entity
shall
not
by
ordinance,
rule,
or
any
23
other
action
relating
to
contracts
for
public
improvements
24
for
which
competitive
bids
are
required
by
this
chapter
25
impose
any
requirement
that
directly
or
indirectly
restricts
26
potential
bidders
to
any
predetermined
class
of
bidders
defined
27
by
experience
on
similar
projects,
size
of
company,
union
28
membership,
or
any
other
criteria.
However,
a
governmental
29
entity
shall
require
nonresident
bidders
to
comply
with
section
30
8A.311B,
subsection
4
.
31
EXPLANATION
32
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
33
the
explanation’s
substance
by
the
members
of
the
general
assembly.
34
This
bill
prohibits
a
foreign
adversary
company,
a
federally
35
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banned
company,
or
a
company
that
offers
to
provide
goods
1
or
services
manufactured
or
produced
by
such
an
entity
from
2
bidding
on
or
submitting
a
proposal
for
a
contract
to
supply
3
goods
or
services
to
the
state
or
a
political
subdivision
of
4
the
state.
5
The
bill
requires
a
company
to
certify
that
it
is
not
6
ineligible
for
a
public
contract
under
the
bill.
If
the
7
certification
is
false,
the
department
of
administrative
8
services
(DAS)
must
assess
the
company
a
civil
penalty
of
9
at
least
$250,000,
the
contract
is
void,
and
the
company
is
10
ineligible
to
bid
on
a
public
contract
for
60
months.
11
The
bill
permits
a
contract
with
a
foreign
adversary
company
12
or
federally
banned
company
if
there
is
no
other
reasonable
13
way
to
obtain
the
goods,
the
contract
is
preapproved
by
DAS,
14
and
failure
to
obtain
the
goods
poses
a
greater
threat
than
15
obtaining
the
goods
from
the
prohibited
entity.
16
When
making
a
bid
or
offer
on
a
public
contract,
a
company
17
must
disclose
whether
the
bidder,
offeror,
or
its
corporate
18
parents
or
subsidiaries
had
contracts
with,
or
provided
or
19
received
supplies
or
services
to
or
from,
a
foreign
adversary.
20
A
company
must
also
certify
that
the
bidder,
offeror,
or
its
21
corporate
parents
or
subsidiaries
has
not
had
contracts
with
or
22
provided
goods
or
services
to
a
military
entity
or
political
23
party
of
a
foreign
adversary,
a
foreign
adversary
company,
or
a
24
federally
banned
company
60
months
before
submission
of
the
bid
25
or
offer.
The
public
entity
must
submit
this
information
to
26
DAS.
If
the
certification
is
false,
the
penalties
previously
27
set
forth
apply.
28
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