1998 Legislation
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HOUSE BILL NO. 741, As Amended – Purchasing, recycled products

HOUSE BILL NO. 741, As Amended

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Daily Data Tracking History

H0741aa............................................by ENVIRONMENTAL AFFAIRS
PURCHASING - RECYCLED PRODUCTS - Amends existing law to provide a recycled
product preference in purchasing by the state and its political

02/17    House intro - 1st rdg - to printing
02/18    Rpt prt - to Env Aff
02/27    Rpt out - to Gen Ord
03/02    Returned to Env Aff
03/05    Rpt out - to Gen Ord
03/06    Rpt out amen - to engros
03/09    Rpt engros - 1st rdg - to 2nd rdg as amen
03/10    2nd rdg - to 3rd rdg as amen
03/11    3rd rdg as amen - PASSED - 46-15-9
      AYES -- Barraclough, Bell, Bieter, Bivens, Black(15), Boe, Callister,
      Chase, Clark, Crane, Cuddy, Deal, Field(13), Gould, Hadley, Hansen,
      Henbest, Jaquet, Jones(22), Jones(20), Judd, Kellogg, Kempton,
      Kendell, Kjellander, Kunz, Lake, Linford, Mader, Marley, Meyer,
      Miller, Newcomb, Pomeroy, Reynolds, Robison, Schaefer, Stoicheff,
      Stone, Taylor, Tilman, Tippets, Trail, Watson, Zimmermann, Mr Speaker
      NAYS -- Barrett, Black(23), Campbell, Denney, Gagner, Geddes,
      Hornbeck, Loertscher, Pischner, Richman, Ridinger, Sali, Stevenson,
      Wheeler, Wood
      Absent and excused -- Alltus, Bruneel, Crow, Ellsworth, Field(20),
      Jones(9), McKague, Mortensen, Stubbs
    Floor Sponsor - Miller
    Title apvd - to Senate
03/12    Senate intro - 1st rdg as amen - to Loc Gov

Bill Text


 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998

                             IN THE HOUSE OF REPRESENTATIVES

                              HOUSE BILL NO. 741, As Amended

                            BY ENVIRONMENTAL AFFAIRS COMMITTEE

 1                                        AN ACT

 7    Be It Enacted by the Legislature of the State of Idaho:

 8        SECTION  1.  That  Section 67-5716, Idaho Code, be, and the same is hereby
 9    amended to read as follows:

10        67-5716.  DEFINITIONS OF TERMS. (1) Acquisition. The process of  procuring
11    or purchasing property by the state of Idaho.
12        (2)  Procurement.  Obtaining property for state use by lease, rent, or any
13    manner other than by purchase or gift.
14        (3)  Property. Goods, services, parts, supplies and equipment, both tangi-
15    ble and intangible, including, but nonexclusively, designs,  plans,  programs,
16    systems, techniques and any rights and interests in such property.
17        (4)  Goods. Items of personal property, not qualifying as equipment, parts
18    or supplies.
19        (5)  Services.   Personal  services,  in  excess  of  personnel  regularly
20    employed for whatever duration and/or covered by personnel  system  standards,
21    for  which  bidding is not prohibited or made impractical by statute, rules or
22    generally accepted ethical practices.
23        (6)  Parts. Items of personal property acquired for repair or  replacement
24    of unserviceable existing items.
25        (7)  Supplies.  Items of personal property having an expendable quality or
26    during its normal use is consumed and which requires or  suggests  acquisition
27    in bulk.
28        (8)  Equipment. Items of personal property which have a normal useful life
29    expectancy of two (2) or more years.
30        (9)  Component.  An  item  of property normally assembled with other items
31    into a unified productive whole at the site of  use,  which  items  belong  to
32    functional  classes  that may be interchangeable units of similar function but
33    differing operational or productive capabilities.
34        (10) Vendor. A person or entity  capable  of  supplying  property  to  the
35    state.
36        (11) Bidder.  A  registered  vendor  who has submitted a bid on a specific
37    item or items of property to be acquired by the state.
38        (12) Lowest responsible bidder. The responsible bidder whose bid  reflects
39    the  lowest acquisition price to be paid by the state; except that when speci-
40    fications are valued or comparative performance  examinations  are  conducted,
41    the  results  of such examinations and the relative score of valued specifica-
42    tions will be weighed, as set out in the specifications,  in  determining  the
43    lowest acquisition price.


 1        (13) Contractor. A bidder who has been awarded an acquisition contract.
 2        (14) Registered vendor. A qualified vendor registered with the administra-
 3    tor of the division of purchasing.
 4        (15) Agency.  All  officers, departments, divisions, bureaus, boards, com-
 5    missions and institutions of the state, including the public utilities commis-
 6    sion, but excluding other legislative and judicial branches of government, and
 7    excluding the governor, the  lieutenant-governor    lieutenant
 8    governor , the secretary of state, the state controller, the state trea-
 9    surer, the attorney general, and the superintendent of public instruction.
10        (16) Bid.  A  written  offer  to  perform a contract to purchase or supply
11    property or services in response to an invitation for bid or request for  pro-
12    posal.
13         (17) Recyclable. Materials that still have useful physical, chemical
14    or biological properties after serving their original purposes and can, there-
15    fore, be reasonably reused or recycled for the same or other purposes.
16        (18) Recycled-content  product.  A  product  containing postconsumer waste
17    and/or secondary waste as defined in this section.
18        (19) Postconsumer waste. A finished material which would normally be  dis-
19    posed of as a solid waste, having completed its life cycle as a consumer item.
20        (20) Secondary waste. Fragments of products or finished products of a man-
21    ufacturing  process, which has converted a virgin resource into a commodity of
22    real economic value and may include a postconsumer waste. 

23        SECTION 2.  That Section 67-5717, Idaho Code, be, and the same  is  hereby
24    amended to read as follows:

26    CHASING. The administrator of the division of purchasing:
27        (1)  Shall acquire, according to the provisions of this chapter, all prop-
28    erty for state agencies;
29        (2)  Shall acquire all property, unless excepted, by competitive bid,  and
30    shall  specifically require competitive bids for property to be rented, leased
31    or purchased through a deferred payment plan;
32        (3)  Shall determine, based upon the requirements contained in the  speci-
33    fication  and matter relating to responsibility, the lowest responsible bidder
34    in all competitively bid acquisition contracts;
35        (4)  Shall enter into all contracts and agreements, and any  modifications
36    thereto,  for  the acquisition of any and all property in behalf of and in the
37    name of the state;
38        (5)  Shall, when economically feasible and practical, consolidate requisi-
39    tions and acquire property in amounts as large as can be  efficiently  managed
40    and controlled;
41        (6)    In  the  evaluation of product bids, those items that meet the
42    recycled content standards as specified by the administrator may  be  given  a
43    five  percent  (5%)  purchasing preference. As such, those qualifying products
44    may be considered to cost five percent (5%)  less  when  choosing  the  lowest
45    responsible bidder;
46        (7)    May appoint a deputy, who shall have power to act for him and
47    in his place while absent, which deputy shall be bonded to the state of  Idaho
48    as prescribed by chapter 8, title 59, Idaho Code;
49        (  7   8 )  May require from any contractor the sub-
50    mission of a performance bond for such sum as will,  in  the  opinion  of  the
51    administrator,  guarantee  the  faithful performance of such contract, and the
52    amount and requirement therefor shall be set out in the specifications;
53        ( 8  9 )  May enter  into  open  contracts  for  the


 1    acquisition  of  property  commonly  used  by the various agencies, based upon
 2    actual or estimated requirements;
 3        Unless an acquiring agency can show a substantial difference  between  the
 4    required capabilities and the capabilities provided by such property available
 5    on  open  contract,  all agencies must utilize such property available on such
 6    contracts and failure to comply with this provision will subject the  officers
 7    responsible for the acquisition to the penalties set forth in this chapter;
 8        ( 9  10 ) May enter into contracts, including leases
 9    and  rentals,  for  periods  of time exceeding one (1) year provided that such
10    contracts contain no penalty to or restriction upon the  state  in  the  event
11    cancellation  is  necessitated by a lack of financing for any such contract or
12    contracts;
13        (1 0  1 ) Is authorized and empowered  to  formulate
14    rules  in  the conduct of the office of the division of purchasing, subject to
15    the approval of the director of the department of administration;
16        (1 1  2 ) In accordance with  established  rules  of
17    the  division, may accept competitive sealed proposals and enter into negotia-
18    tions for acquisitions for which competitive sealed bidding is not practicable
19    or advantageous to the state;
20        (1 2  3 ) May inspect property delivered by  a  con-
21    tractor to determine whether it meets minimum bid specifications;
22        (1  3  4 ) May classify, after review with the vari-
23    ous agencies, the requirements of the state for  all  property  which  may  be
24    acquired  and  adopt standards of quality for property, and establish standard
25    specifications for  acquisition.  Each  standard  specification  shall,  until
26    revised  or rescinded, apply alike in terms and effect to each future acquisi-
27    tion of the classified property.

28        SECTION 3.  That Section 67-2349, Idaho Code, be, and the same  is  hereby
29    amended to read as follows:

31     FOR PURCHASES.  (1)  To the extent permitted by federal laws
32    and regulations, whenever the state of Idaho,  or  any  department,  division,
33    bureau  or  agency  thereof,  or any city, county, school district, irrigation
34    district, drainage district, sewer district, highway district, good road  dis-
35    trict,  fire district, flood district, or other public body, shall let for bid
36    any contract for purchase of any materials, supplies or equipment, the  bidder
37    domiciled  outside  the  boundaries of Idaho shall be required, in order to be
38    successful, to submit a bid the same percent less than the lowest bid  submit-
39    ted  by  a responsible bidder domiciled in Idaho as would be required for such
40    an Idaho domiciled bidder to succeed over the bidder domiciled  outside  Idaho
41    on a like contract being let in his domiciliary state.
42        For  the purposes of this section, any bidder domiciled outside the bound-
43    aries of the state of Idaho may be considered as an  Idaho  domiciled  bidder,
44    provided  that there exists for a period of one (1) year preceding the date of
45    the bid a significant Idaho economic presence as defined herein. A significant
46    economic presence shall consist of the following:
47        (a)  That the bidder maintain in Idaho fully  staffed  offices,  or  fully
48        staffed  sales  offices  or  divisions, or fully staffed sales outlets, or
49        manufacturing facilities, or warehouses or other necessary  related  prop-
50        erty; and
51        (b)  If  a  corporation  be  registered and licensed to do business in the
52        state of Idaho with the office of the secretary of state.
53         (2)  In the evaluation of product bids, those items that meet  recy-


 1    cled content standards may be given not more than a five percent (5%) purchas-
 2    ing  preference.  As such, those qualifying products may be considered to cost
 3    five percent (5%) less when choosing the lowest responsible bidder. 

Statement of Purpose / Fiscal Impact


                          STATEMENT OF PURPOSE
    This legislation amends Section 67-5716, Section 67-5717, and Section 67-2349 of the Idaho 
    Code to allow a 10% purchasing preference for recycled-content material.
                               FISCAL NOTE
    As this
    is an optional program, there will be no impact for  agencies that choose not to implement the 
    purchasing preference.  For those that do, the increase in costs to Central Purchasing 
    could be 10% or less. Because most recycled-content materials 
    will be less than 10% of their virgin equivalents, the anticipated fiscal impact could be 
    proportionately less.
             CONTACT:                                    Reps. Maynard Miller and Tom Trail 
                                                          Phone  332-1000
           Senator Gary Schroeder
           Phone 332-1000
    H 741