Bill Text: IA SSB1094 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to conflicts of interest in certain government public contracts.
Spectrum: Committee Bill
Status: (N/A - Dead) 2019-02-12 - Subcommittee recommends amendment and passage. [SSB1094 Detail]
Download: Iowa-2019-SSB1094-Introduced.html
Senate
Study
Bill
1094
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
LOCAL
GOVERNMENT
BILL
BY
CHAIRPERSON
EDLER)
A
BILL
FOR
An
Act
relating
to
conflicts
of
interest
in
certain
government
1
public
contracts.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
279.7A,
Code
2019,
is
amended
to
read
as
1
follows:
2
279.7A
Interest
in
public
contracts
prohibited
——
exceptions.
3
1.
A
member
of
the
board
of
directors
of
a
school
4
corporation
shall
not
have
an
interest,
direct
or
indirect,
in
5
a
contract
for
the
purchase
of
goods,
including
materials
and
6
profits,
and
the
performance
of
services
for
the
director’s
7
school
corporation.
A
contract
entered
into
in
violation
of
8
this
section
is
void.
9
2.
This
section
does
not
apply
to
contracts
for
the
10
purchase
of
goods
or
services
which
benefit
a
director,
or
11
to
compensation
for
part-time
or
temporary
employment
which
12
benefits
a
director,
if
the
benefit
to
the
director
does
13
not
exceed
two
thousand
five
hundred
dollars
the
allowable
14
threshold
amount
in
a
fiscal
year,
and
contracts
made
by
a
15
school
board,
upon
competitive
bid
in
writing,
publicly
invited
16
and
opened.
For
purposes
of
this
subsection,
“allowable
17
threshold
amount”
means
an
amount,
for
a
fiscal
year,
equal
to
18
the
greater
of
six
thousand
dollars
or
the
amount,
in
dollars,
19
equal
to
one
percentage
point
more
than
the
allowable
threshold
20
amount
for
the
prior
fiscal
year.
21
3.
This
section
does
not
apply
to
a
contract
that
is
a
22
bond,
note,
or
other
obligation
of
a
school
corporation
if
the
23
contract
is
not
acquired
directly
from
the
school
corporation,
24
but
is
acquired
in
a
transaction
with
a
third
party,
who
may
25
or
may
not
be
the
original
underwriter,
purchaser,
or
obligee
26
of
the
contract,
or
to
a
contract
in
which
a
director
has
an
27
interest
solely
by
reason
of
employment
if
the
contract
is
made
28
by
competitive
bid
in
writing,
publicly
invited
and
opened,
or
29
if
the
remuneration
of
employment
will
not
be
directly
affected
30
as
a
result
of
the
contract
and
the
duties
of
employment
do
not
31
directly
involve
the
procurement
or
preparation
of
any
part
of
32
the
contract.
33
4.
The
competitive
bid
qualification
of
this
section
34
does
not
apply
to
a
contract
for
professional
services
not
35
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customarily
awarded
by
competitive
bid.
1
Sec.
2.
Section
331.342,
subsection
1,
Code
2019,
is
amended
2
to
read
as
follows:
3
1.
As
used
in
this
section
,
“contract”
:
4
a.
“Allowable
threshold
amount”
means
an
amount,
for
a
5
fiscal
year,
equal
to
the
greater
of
six
thousand
dollars
or
6
the
amount,
in
dollars,
equal
to
one
percentage
point
more
than
7
the
allowable
purchasing
amount
for
the
prior
fiscal
year.
8
b.
“Contract”
means
a
claim,
account,
or
demand
against
9
or
agreement
with
a
county,
express
or
implied,
other
than
a
10
contract
to
serve
as
an
officer
or
employee
of
the
county.
11
However,
contracts
subject
to
section
314.2
are
not
subject
to
12
this
section
.
13
Sec.
3.
Section
331.342,
subsection
2,
paragraph
j,
Code
14
2019,
is
amended
to
read
as
follows:
15
j.
Contracts
not
otherwise
permitted
by
this
section
,
for
16
the
purchase
of
goods
or
services
by
a
county,
which
benefit
17
a
county
officer
or
employee,
if
the
purchases
benefiting
18
that
officer
or
employee
do
not
exceed
a
cumulative
total
19
purchase
price
of
one
thousand
five
hundred
dollars
equal
to
20
the
allowable
threshold
amount
in
a
fiscal
year.
21
Sec.
4.
Section
362.5,
subsection
1,
Code
2019,
is
amended
22
to
read
as
follows:
23
1.
When
used
in
this
section
,
“contract”
:
24
a.
“Allowable
threshold
amount”
means
an
amount,
for
a
25
fiscal
year,
equal
to
the
greater
of
six
thousand
dollars
or
26
the
amount,
in
dollars,
equal
to
one
percentage
point
more
than
27
the
allowable
purchasing
amount
for
the
prior
fiscal
year.
28
b.
“Contract”
means
any
claim,
account,
or
demand
against
or
29
agreement
with
a
city,
express
or
implied.
30
Sec.
5.
Section
362.5,
subsection
3,
paragraph
j,
Code
2019,
31
is
amended
to
read
as
follows:
32
j.
Contracts
not
otherwise
permitted
by
this
section
,
for
33
the
purchase
of
goods
or
services
by
a
city
having
a
population
34
of
more
than
two
thousand
five
hundred,
which
benefit
a
city
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officer
or
employee,
if
the
purchases
benefiting
that
officer
1
or
employee
do
not
exceed
a
cumulative
total
purchase
price
2
of
one
thousand
five
hundred
dollars
equal
to
the
allowable
3
threshold
amount
in
a
fiscal
year.
4
Sec.
6.
Section
362.5,
subsection
3,
paragraph
k,
Code
2019,
5
is
amended
by
striking
the
paragraph.
6
EXPLANATION
7
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
8
the
explanation’s
substance
by
the
members
of
the
general
assembly.
9
Current
Code
provisions
generally
restrict
school
board
10
members
and
city
and
county
officers
and
employees
from
11
entering
into
contracts
with
the
applicable
governmental
entity
12
or
having
an
interest,
direct
or
indirect,
in
a
contract
with
13
the
entity.
The
prohibition
does
not,
however,
apply
to
14
contracts
if
purchases
benefiting
the
individual
do
not
exceed
15
specified
value
thresholds
in
a
fiscal
year.
The
current
16
thresholds
are
$2,500
for
school
board
members,
$1,500
for
17
county
officers
or
employees,
$1,500
for
officers
or
employees
18
of
a
city
with
a
population
of
more
than
2,500,
and
$2,500
for
19
officers
or
employees
of
a
city
with
a
population
of
2,500
or
20
less.
This
bill
increases
all
such
contract
threshold
amounts
21
to
an
amount
equal
to
the
“allowable
threshold
amount”
in
a
22
fiscal
year.
The
bill
defines
“allowable
threshold
amount”
as
23
an
amount,
in
a
fiscal
year,
equal
to
the
greater
of
$6,000
or
24
an
amount
equal
to
one
percentage
point
more
than
the
allowable
25
threshold
amount
for
the
prior
fiscal
year.
26
By
operation
of
law,
the
threshold
amount
changes
in
the
bill
27
also
apply
to
other
provisions
governing
school
board
members
28
and
provisions
governing
certain
school
organizations
and
clubs
29
under
Code
section
298A.15,
port
authorities
under
Code
chapter
30
28J,
regional
transit
districts
under
Code
chapter
28M,
and
31
county
enterprise
commissions
under
Code
section
331.471.
32
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