Bill Text: IA SF438 | 2017-2018 | 87th General Assembly | Enrolled
Bill Title: A bill for an act relating to bidding and contracting for public improvement projects, making penalties applicable, and including effective date and applicability provisions. (Formerly SSB 1145.) Effective 4-13-17.
Spectrum: Committee Bill
Status: (Passed) 2017-04-13 - Signed by Governor. S.J. 1021. [SF438 Detail]
Download: Iowa-2017-SF438-Enrolled.html
Senate File 438 - Enrolled
SENATE FILE
BY COMMITTEE ON LABOR AND
BUSINESS RELATIONS
(SUCCESSOR TO SSB
1145)
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A BILL FOR
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Senate File 438
AN ACT
RELATING TO BIDDING AND CONTRACTING FOR PUBLIC
IMPROVEMENT PROJECTS, MAKING PENALTIES APPLICABLE, AND
INCLUDING EFFECTIVE DATE AND APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 26.9, Code 2017, is amended to read as
follows:
26.9 Award of contract.
1. The contract for the public improvement must be awarded
to the lowest responsive, responsible bidder. However,
contracts relating to public utilities or extensions or
improvements thereof, as described in sections 384.80 through
384.94, may be awarded by the city as it deems to be in the best
interests of the city. This section shall not be construed to
prohibit a governmental entity in the award of a contract for a
public improvement or a governing body of a city utility from
providing, in the award of a contract for a public improvement,
an enhancement of payments upon early completion of the public
improvement if the availability of the enhancement payments is
included in the notice to bidders, the enhancement payments are
competitively neutral to potential bidders, the enhancement
payments are considered as a separate item in the public
hearing on the award of contract, and the total value of the
enhancement payments does not exceed ten percent of the value
of the contract.
2. A governmental entity shall not require a potential
bidder on a public improvement to provide any information which
the potential bidder may deem to be confidential or proprietary
as a requirement for being deemed a responsive, responsible
bidder. This subsection shall not be construed to prohibit a
governmental entity from obtaining information from the lowest
responsive bidder to determine the bidder's responsibility
relating to the bidder's experience, number of employees,
and ability to finance the cost of the public improvement.
However, a governmental entity shall require nonresident
bidders to comply with section 73A.21, subsection 4.
Sec. 2. NEW SECTION. 26.16 Prequalification requirements
prohibited.
A governmental entity shall not by ordinance, rule, or any
other action relating to contracts for public improvements
for which competitive bids are required by this chapter
impose any requirement that directly or indirectly restricts
potential bidders to any predetermined class of bidders defined
by experience on similar projects, size of company, union
membership, or any other criteria. However, a governmental
entity shall require nonresident bidders to comply with section
73A.21, subsection 4.
Sec. 3. Section 73A.1, Code 2017, is amended to read as
follows:
73A.1 Definitions.
As used in this subchapter:
1. "Appeal board" as used in this chapter means the state
appeal board, composed of the auditor of state, treasurer of
state, and the director of the department of management.
2. "Municipality" as used in this chapter means township or
the state fair board.
3. "Public improvement" as used in this chapter means a
building or other construction work to be paid for in whole or
in part by the use of funds of any municipality.
Sec. 4. Section 73A.16, Code 2017, is amended to read as
follows:
73A.16 Bonds and taxes void.
Any bonds or other evidence of indebtedness issued contrary
to the provisions of this chapter subchapter, and any tax
levied or attempted to be levied for the payment of any such
bonds or interest thereon, shall be null and void.
Sec. 5. NEW SECTION. 73A.25 Title.
This subchapter shall be known as the "Fair and Open
Competition in Governmental Construction Act".
Sec. 6. NEW SECTION. 73A.26 Purpose.
The purpose of this chapter is to provide for more
economical, nondiscriminatory, neutral, and efficient
procurement of construction=related goods and services by this
state and political subdivisions of this state.
Sec. 7. NEW SECTION. 73A.27 Definitions.
As used in this subchapter, unless the context clearly
indicates otherwise:
1. "Governmental entity" means the state, political
subdivisions of the state, public school corporations, and all
officers, boards, or commissions empowered by law to enter into
contracts for the construction of public improvements.
2. "Public improvement" means any building or construction
work which is constructed, repaired, remodeled, or demolished
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.
Sec. 8. NEW SECTION. 73A.28 Public improvement contracts ==
prohibited terms and exemptions.
1. A governmental entity awarding a contract for the
construction, repair, remodeling, or demolition of a public
improvement and any construction manager acting on its behalf
shall not, in any bid specifications, project agreements, or
other controlling documents do any of the following:
a. Require a bidder, offeror, contractor, or subcontractor
to enter into or adhere to an agreement with one or more labor
organizations in regard to the public improvement or a related
public improvement project.
b. Prohibit a bidder, offeror, contractor, or subcontractor
from entering into or adhering to an agreement with one or more
labor organizations in regard to the public improvement or a
related public improvement project.
c. Discriminate against a bidder, offeror, contractor, or
subcontractor for becoming or remaining or refusing to become
or remain a signatory to, or for adhering or refusing to adhere
to, an agreement with one or more labor organizations in regard
to the public improvement or a related public improvement
project.
2. A governmental entity shall not award a grant, tax
abatement, or tax credit that is conditioned upon a requirement
that the awardee include a term described in subsection 1
in a contract document for any construction, improvement,
maintenance, or renovation to real property or fixtures that is
the subject of the grant, tax abatement, or tax credit.
3. This section shall not be construed to do any of the
following:
a. Prohibit a governmental entity from awarding a contract,
grant, tax abatement, or tax credit to a private owner, bidder,
contractor, or subcontractor who enters into or who is party to
an agreement with a labor organization, if being or becoming
a party or adhering to an agreement with a labor organization
is not a condition for award of the contract, grant, tax
abatement, or tax credit, and if the governmental entity does
not discriminate against a private owner, bidder, contractor,
or subcontractor in the awarding of that contract, grant,
tax abatement, or tax credit based upon the private owner's,
bidder's, contractor's, or subcontractor's status as being or
becoming, or the willingness or refusal to become, a party to
an agreement with a labor organization.
b. Prohibit a contractor or subcontractor from voluntarily
entering into or complying with an agreement entered into with
one or more labor organizations in regard to a contract with a
governmental entity or funded in whole or in part from a grant,
tax abatement, or tax credit from the governmental entity.
c. Prohibit employers or other parties from entering into
agreements or engaging in any other activity protected by the
federal National Labor Relations Act, 29 U.S.C. {151 et seq.
d. Interfere with labor relations of parties that are not
regulated under the federal National Labor Relations Act, 29
U.S.C. {151 et seq.
Sec. 9. EFFECTIVE UPON ENACTMENT. This Act, being deemed of
immediate importance, takes effect upon enactment.
Sec. 10. APPLICABILITY. This Act applies to notices to
bidders for public improvements, bids awarded for public
improvements, and contracts for public improvements entered
into on and after the effective date of this Act.
JACK WHITVER
LINDA UPMEYER
W. CHARLES SMITH
TERRY E. BRANSTA
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