2004 Legislation
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SENATE BILL NO. 1383 – Vendor/contractor, state contract

SENATE BILL NO. 1383

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Bill Status



S1383......................................................by STATE AFFAIRS
VENDORS/CONTRACTORS - Adds to and amends existing law to provide health
insurance requirements for vendors and public works contractors doing
business with the state of Idaho.
                                                                        
02/23    Senate intro - 1st rdg - to printing
02/24    Rpt prt - to Health/Wel

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1383
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PURCHASING AND PUBLIC WORKS  CONTRACTS  BY  THE  STATE  OF  IDAHO;
  3        AMENDING  CHAPTER  57, TITLE 67, IDAHO CODE, BY THE ADDITION OF A NEW SEC-
  4        TION 67-5707, IDAHO CODE, TO PROVIDE FOR HEALTH INSURANCE REQUIREMENTS FOR
  5        VENDORS AND PUBLIC WORKS CONTRACTORS; AMENDING CHAPTER 57, TITLE 67, IDAHO
  6        CODE, BY THE ADDITION OF A NEW SECTION 67-5711E, IDAHO  CODE,  TO  PROVIDE
  7        HEALTH  INSURANCE  QUALIFICATION REQUIREMENTS FOR PUBLIC WORKS CONTRACTORS
  8        ELIGIBLE FOR AWARD OF A STATE CONTRACT;  AND  AMENDING  SECTION  67-5711C,
  9        IDAHO CODE, TO PROVIDE AN ADDITIONAL STATUTORY CITATION.
                                                                        
 10    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 11        SECTION  1.  That  Chapter  57,  Title 67, Idaho Code, be, and the same is
 12    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 13    ignated as Section 67-5707, Idaho Code, and to read as follows:
                                                                        
 14        67-5707.  HEALTH  INSURANCE QUALIFICATION REQUIREMENT. The director of the
 15    department shall adopt rules necessary to implement  a  requirement  governing
 16    the  division  of public works and the purchasing division which shall require
 17    as a condition of qualification to submit a bid,  proposal,  or  otherwise  to
 18    participate  as  a supplier of goods or services to the state of Idaho that an
 19    applicant which employs twenty-five (25) or more persons, including both full-
 20    time and part-time employees, must provide evidence that  it  provides  health
 21    care  insurance  to not less than eighty percent (80%) of the employees of the
 22    company.
                                                                        
 23        SECTION 2.  That Chapter 57, Title 67, Idaho Code, be,  and  the  same  is
 24    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 25    ignated as Section 67-5711E, Idaho Code, and to read as follows:
                                                                        
 26        67-5711E.  HEALTH INSURANCE QUALIFICATION PLAN REQUIREMENT. In addition to
 27    any other requirement or condition prerequisite to qualification as a contrac-
 28    tor, no contractor which employs twenty-five (25) or more  persons,  including
 29    both full-time and part-time employees, shall be eligible for award of a state
 30    project  unless the principal and each subcontractor provides evidence that it
 31    provides health care insurance to not less than eighty percent  (80%)  of  the
 32    employees of the company.
                                                                        
 33        SECTION  3.  That Section 67-5711C, Idaho Code, be, and the same is hereby
 34    amended to read as follows:
                                                                        
 35        67-5711C.  CONSTRUCTION OF PUBLIC PROJECTS -- COMPETITIVE SEALED  BIDDING.
 36    (1) All construction contracts for public works shall be awarded to the lowest
 37    responsible  and responsive bidder after receipt of competitive sealed bidding
 38    except as otherwise provided in  sections  67-5711B,  67-5711D,  67-5711E  and
 39    67-5713, Idaho Code.
                                                                        
                                           2
                                                                        
  1        (2)  An  invitation  for  bids shall be issued and shall include a project
  2    description and all contractual terms and conditions applicable to the  public
  3    works.
  4        (3)  Adequate  public  notice of the invitation for bids shall be given at
  5    least  fourteen (14) days prior to the date set forth therein for the  opening
  6    of  bids.  Such  notice  shall include publication at least fourteen (14) days
  7    prior to bid opening in a newspaper of general circulation in the  area  where
  8    the work is located.
  9        (4)  Bids shall be opened publicly at the time and place designated in the
 10    invitation  for  bids. The amount of each bid and such other relevant informa-
 11    tion as may be specified by rules, together with  the  name  of  each  bidder,
 12    shall  be  entered  on a record and the record shall be open to public inspec-
 13    tion. After the time of the award all bids and bid documents shall be open  to
 14    public  inspection in accordance with the provisions of sections 9-337 through
 15    9-347 and 67-5725, Idaho Code.
 16        (5)  With respect to a project having a written cost estimate  of  greater
 17    than two thousand five hundred dollars ($2,500) but less than the public works
 18    limit  established  in section 67-5711, Idaho Code, the agency, if it does not
 19    perform the work with existing physical plant staff, must award a written con-
 20    tract to the lowest responsible and  responsive  bidder  after  soliciting  at
 21    least three (3) documented informal bids from contractors licensed in Idaho to
 22    perform  public  works  contracts,  if  reasonably  available. Adequate public
 23    notice of the invitation for informal bids shall be given at least  seven  (7)
 24    days prior to the date set forth therein for the receipt of the informal bids.
 25    Such notice may include publication at least seven (7) days prior to bid open-
 26    ing  in  a  newspaper  of  general  circulation  in the area where the work is
 27    located; or the agency may advertise the invitation for  bids  in  appropriate
 28    trade  journals, and otherwise notify persons believed to be interested in the
 29    award of a contract. Informal bids must be  submitted  by  the  contractor  in
 30    writing  in  response  to a prepared written document describing the project's
 31    scope of work in sufficient detail so as to enable a contractor familiar  with
 32    such  work to prepare a responsible bid. Nothing herein exempts an agency from
 33    the responsibility of utilizing formal plans and specifications  if  the  work
 34    involves  the public health or safety as described in chapters 3 and 12, title
 35    54, Idaho Code. The agency must document receipt of the informal bids  in  the
 36    project file.
 37        (6)  Any  personal property including goods, parts, supplies and equipment
 38    which is to be supplied or provided by a state agency for use  in  any  public
 39    work,  project,  or  preventive maintenance programs, whether the public work,
 40    project, or preventive maintenance program is constructed, undertaken or  per-
 41    formed  by  agency  in-house  personnel,  or by delegation pursuant to section
 42    67-5710A, Idaho Code, or otherwise provided or supplied by  the  agency  to  a
 43    contractor,  the  personal  property, goods, parts, supplies or equipment sup-
 44    plied or provided by the agency must be purchased or procured  by  the  agency
 45    through the division of purchasing in accordance with the Idaho Code.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                             RS 14167

Recognizing that the cost of health care for individuals without
health insurance coverage is passed on to the taxpayer; and
businesses that do not provide health insurance coverage have a
competitive advantage over those who do.  This measure attempts
to level the playing field and slow the growth in Medicaid and
health insurance costs by requiring that all businesses with 25
or more employees provide health insurance for 80% of their full
and part time employees as a condition of doing business with the
state of Idaho.


                          FISCAL IMPACT

By providing that more Idahoans are covered by health insurance,
there should be a savings in catastrophic health care fund,
Medicaid and health insurance rates.


Contact
Name: Senator Clint Stennett 
Phone: 332-1351


STATEMENT OF PURPOSE/FISCAL NOTE                     S 1383