Bill Text: IA SF2274 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act concerning the establishment of a process for the debarment of a person from entering into certain state contracts with a state agency. (Formerly SF 2127.)
Sponsorship: Committee Bill
Status: (Engrossed - Dead) 2016-03-02 - Subcommittee, Wills, Hein, and Prichard. H.J. 400. [SF2274 Detail]
Download: Iowa-2015-SF2274-Introduced.html
Senate File 2274 - Introduced SENATE FILE BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO SF 2127) A BILL FOR 1 An Act concerning the establishment of a process for the 2 debarment of a person from entering into certain state 3 contracts with a state agency. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5616SV (2) 86 ec/nh PAG LIN 1 1 Section 1. Section 8A.311, Code 2016, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 23. Except for the department of 1 4 transportation, an agency, including an institution under the 1 5 control of the state board of regents, shall not enter into 1 6 a contract, or authorize a contract, with a person who is 1 7 debarred as provided in section 8A.319. 1 8 Sec. 2. NEW SECTION. 8A.319 Vendor debarment. 1 9 1. The department shall establish a process to debar a 1 10 person from eligibility to enter into a contract with an 1 11 agency, including an institution under the control of the 1 12 state board of regents, pursuant to the competitive bidding 1 13 requirements of section 8A.311, subject to the requirements of 1 14 this section. For purposes of this section, "agency" does not 1 15 include the department of transportation. 1 16 2. The department may debar a person from eligibility to 1 17 enter into a contract with an agency, including an institution 1 18 under the control of the state board of regents, for a period 1 19 of not more than three years for any of the following reasons: 1 20 a. The person, including any employee of the person, 1 21 has been convicted of a criminal offense as an incident to 1 22 obtaining or attempting to obtain a public or private contract 1 23 or subcontract, or in the performance of such contract or 1 24 subcontract. 1 25 b. The person, including any employee of the person, 1 26 has been convicted, or has had a final determination in a 1 27 civil action under a state or federal statute, of fraud, 1 28 embezzlement, theft, forgery, bribery, falsification or 1 29 destruction of records, receiving stolen property, violation 1 30 of the federal False Claims Act, 31 U.S.C. {3729 et seq., 1 31 violation of chapter 685, or any other offense indicating a 1 32 lack of business integrity or business honesty that currently, 1 33 seriously, and directly affects responsibility as a state 1 34 contractor. 1 35 c. The person, including any employee of the person, has 2 1 been convicted under a state or federal antitrust statute 2 2 arising out of the submission of a bid or proposal. 2 3 d. The person has had two or more violations within the 2 4 previous five years of the federal Labor Relations Act as 2 5 determined by the national labor relations board or a court of 2 6 competent jurisdiction. 2 7 e. The person has violated a provision of a contract in a 2 8 manner that is regarded by the director to be so serious as to 2 9 justify debarment action and that meets any of the following 2 10 conditions: 2 11 (1) Deliberate failure without good cause to perform in 2 12 accordance with the specifications or within the time limit 2 13 provided in the contract. 2 14 (2) A recent record of failure to perform or of 2 15 unsatisfactory performance in accordance with the terms of 2 16 one or more contracts. However, the failure to perform or 2 17 unsatisfactory performance caused by acts beyond the control of 2 18 the person shall not be considered a basis for debarment. 2 19 f. Any other cause the director determines to be so 2 20 serious and compelling as to affect responsibility as a state 2 21 contractor, including debarment by another governmental entity 2 22 for any cause. 2 23 3. The process for the debarment of a person shall commence 2 24 by delivering to the person notice, by means authorized by 2 25 section 17A.18, setting forth the particular reasons for such 2 26 action and the length of the debarment. 2 27 a. If a written request for a hearing is not received 2 28 within thirty days after the delivery of notice as provided in 2 29 this subsection, the debarment shall become effective pending 2 30 a final determination by the department. The determination 2 31 involved in the notice may be affirmed, modified, or set aside 2 32 by the department in a written decision. 2 33 b. If a request for a hearing is timely received by the 2 34 department, the person shall be given an opportunity for a 2 35 prompt and fair hearing before the department and the debarment 3 1 shall be deemed suspended until the department makes a final 3 2 determination. The procedure governing hearings authorized 3 3 by this paragraph shall be in accordance with the rules 3 4 promulgated by the department and chapter 17A. 3 5 4. A copy of the final decision of the department shall be 3 6 sent to the person by electronic mail or certified mail, with 3 7 return receipt requested, or served personally upon the person. 3 8 The person may seek judicial review in accordance with the 3 9 terms of the Iowa administrative procedure Act, chapter 17A. 3 10 5. The department shall adopt rules to implement the 3 11 requirements of this section. 3 12 EXPLANATION 3 13 The inclusion of this explanation does not constitute agreement with 3 14 the explanation's substance by the members of the general assembly. 3 15 This bill provides that a state agency shall not enter into 3 16 a contract with a person who has been debarred pursuant to the 3 17 requirements of the bill. 3 18 Code section 8A.311, concerning competitive bidding 3 19 requirements, is amended to provide that except for the 3 20 department of transportation, a state agency, including an 3 21 institution under the control of the state board of regents, 3 22 shall not enter into a contract, or authorize a contract, with 3 23 a person who is debarred. 3 24 New Code section 8A.319 establishes the process for DAS to 3 25 debar a person from eligibility to enter into a contract with 3 26 a state agency, including an institution under the control of 3 27 the state board of regents. The bill provides that a state 3 28 agency does not include the department of transportation for 3 29 purposes of this new Code section. The new Code section 3 30 provides that the length of the debarment shall not exceed 3 31 three years, specifies the reasons to debar a person, and 3 32 establishes the administrative process, including rights for 3 33 a hearing and judicial review, for debarring a person. The 3 34 bill provides that reasons for debarment of a person include 3 35 a criminal offense conviction as an incident to obtaining or 4 1 attempting to obtain a public or private contract, conviction 4 2 or civil action determination of an offense indicating a lack 4 3 of business integrity or honesty, conviction under a state or 4 4 federal antitrust statute arising out of the submission of a 4 5 bid or proposal, violations of the federal Labor Relations Act, 4 6 certain violations of contract provisions, and any other cause 4 7 the DAS director determines to be so serious and compelling 4 8 as to affect responsibility as a state contractor, including 4 9 debarment by another governmental entity for any cause.
