2005 Legislation
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SENATE BILL NO. 1150 – State contracts, requirements

SENATE BILL NO. 1150

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Bill Status



S1150aa....................................................by STATE AFFAIRS
STATE CONTRACTS - Adds to existing law to provide additional requirements
for persons or entities entering into contracts for services with the
state; to prohibit the state from awarding a contract to a contractor who
performs the services or has services performed at a site outside of the
United States; to provide exceptions; to provide for damages; and to
provide for civil penalties.
                                                                        
02/17    Senate intro - 1st rdg - to printing
02/18    Rpt prt - to St Aff
03/08    Rpt out - to 14th Ord
03/23    Rpt out amen - to engros
03/24    Rpt engros - 1st rdg - to 2nd rdg as amen
03/25    2nd rdg - to 3rd rdg as amen
03/29    3rd rdg as amen - PASSED - 34-0-1
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
      Langhorst, Little, Lodge, Malepeai, Marley, McGee, Pearce,
      Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- McKenzie
    Floor Sponsor - Stennett
    Title apvd - to House
03/30    House intro - 1st rdg - to W/M

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1150
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO CONTRACTS BY GOVERNMENTAL ENTITIES; AMENDING CHAPTER 23, TITLE 67,
  3        IDAHO CODE, BY THE ADDITION OF A NEW SECTION 67-2303, IDAHO CODE, TO  PRO-
  4        VIDE  ADDITIONAL  REQUIREMENTS  FOR PERSONS OR ENTITIES ENTERING INTO CON-
  5        TRACTS WITH THE STATE, TO PROHIBIT THE STATE FROM AWARDING A CONTRACT TO A
  6        CONTRACTOR OR SUBCONTRACTOR WHO PERFORMS THE WORK AT A SITE OUTSIDE OF THE
  7        UNITED STATES, TO PROVIDE EXCEPTIONS, TO PROVIDE FOR DAMAGES AND  TO  PRO-
  8        VIDE FOR CIVIL PENALTIES.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION  1.  That  Chapter  23,  Title 67, Idaho Code, be, and the same is
 11    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 12    ignated as Section 67-2303, Idaho Code, and to read as follows:
                                                                        
 13        67-2303.  CONTRACTS.  This  section  shall  apply  to  all state contracts
 14    except contracts for the delivery of educational services by public  universi-
 15    ties at a foreign location.
 16        (1)  All  state  agencies, departments, boards or commissions  are prohib-
 17    ited from awarding a contract to a contractor or  subcontractor  who  performs
 18    the  work  at  a site outside  the United States unless  the work is so unique
 19    that it can only be performed outside the United States.
 20        (2)  Each vendor submitting a bid or contract to provide services for  the
 21    state   shall certify that the services covered by the bid or contract will be
 22    performed in the United States unless  the work is so unique that it can  only
 23    be performed outside the United States.
 24        (3)  If,  during the life of a contract with a state agency or department,
 25    the contractor or subcontractor transfers the work contracted for outside  the
 26    country,  then the state agency, department, board or commission shall require
 27    the contractor or subcontractor to pay damages  in  an  amount  equal  to  the
 28    amount  paid  by the agency for the work. The agency  shall also terminate the
 29    contract for noncompliance with the outsourcing prohibition.
 30        (4)  The state agency, department, board or commission may bring  a  civil
 31    action in state or federal court to compel enforcement under this section. The
 32    court  may  award  reasonable attorney's fees and costs to the agency, depart-
 33    ment, board or commission.
 34        (5)  A state agency, department, board or commission  shall be exempt from
 35    the provisions of this section if the work, goods or services needed cannot be
 36    obtained from a source within the United States and the state agency,  depart-
 37    ment, board or commission  is provided with a sole source letter from the pri-
 38    vate  vendor  stating that they are the only source that can provide the work,
 39    goods or services. There shall be a civil penalty not in excess of fifty thou-
 40    sand dollars ($50,000) assessed against any person  or  entity  who  willfully
 41    misleads  the  state  agency, department, board or commission by alleging that
 42    the vendor is a sole source provider for the respective work,  goods  or  ser-
 43    vices.  The  attorney general shall institute a civil enforcement action for a
                                                                        
                                           2
                                                                        
  1    violation of the provisions of this section if the violation involves  a  con-
  2    tract with the state. The civil penalty shall be remitted to the general fund.

Amendment


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                                     Moved by    Stennett            
                                                                        
                                                     Seconded by Little              
                                                                        
                                                                        
                                       IN THE SENATE
                             SENATE AMENDMENT TO S.B. NO. 1150
                                                                        
  1                                AMENDMENT TO SECTION 1
  2        On page 1 of the printed bill, delete lines 13 through 43 and delete  page
  3    2 and insert:
  4        "67-2303.  CONTRACTS.  This  section shall apply to all contracts for ser-
  5    vices except contracts for the delivery of research or educational services by
  6    public universities or colleges at a  location outside the United States.
  7        (1)  All state agencies, departments, boards or commissions   are  prohib-
  8    ited  from  awarding a contract for services to a contractor  who performs the
  9    services, or has the services performed, at a site outside  the United  States
 10    unless   the  services  are  so unique that they can only be performed outside
 11    the United States.
 12        (2)  Each vendor submitting a bid or contract to provide services for  the
 13    state   shall certify that the services covered by the bid or contract will be
 14    performed in the United States unless  the services are so  unique  that  they
 15    can only be performed outside the United States.
 16        (3)  The  state  agency, department, board or commission may bring a civil
 17    action  to compel enforcement under this section. The court may award  reason-
 18    able attorney's fees and costs to the agency, department, board or commission.
 19        (4)  For  purposes of this section, a service shall be deemed to be unique
 20    if it is performed at a site outside the United States, if a  significant  and
 21    substantial  economic cost factor exists that outweighs the economic impact of
 22    providing the services within the United States, such that a  failure  to  use
 23    the vendor's services would result in economic hardship to the state of Idaho.
 24        (5)  A state agency, department, board or commission  shall be exempt from
 25    the  provisions  of  this  section  if it is  provided with a  letter from the
 26    vendor stating that it is the only source that can provide  services  and  the
 27    services  are  so  unique  that  they can only be performed outside the United
 28    States.  There shall be a civil penalty not in excess of fifty  thousand  dol-
 29    lars  ($50,000)  assessed  against any person or entity who willfully misleads
 30    the state agency, department, board or commission  under  this  section.   The
 31    civil penalty shall be remitted to the general fund.".
                                                                        
 32                                 CORRECTION TO TITLE
 33        On  page 1, in line 5, following "TRACTS" insert: "FOR SERVICES"; and also
 34    in line 5, following "CONTRACT" insert: "FOR SERVICES"; in line 6, delete  "OR
 35    SUBCONTRACTOR"; and also in line 6, delete "WORK" and insert: "SERVICES OR HAS
 36    THE SERVICES PERFORMED".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                              SENATE BILL NO. 1150, As Amended
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO CONTRACTS BY GOVERNMENTAL ENTITIES; AMENDING CHAPTER 23, TITLE 67,
  3        IDAHO CODE, BY THE ADDITION OF A NEW SECTION 67-2303, IDAHO CODE, TO  PRO-
  4        VIDE  ADDITIONAL  REQUIREMENTS  FOR PERSONS OR ENTITIES ENTERING INTO CON-
  5        TRACTS FOR SERVICES WITH THE STATE, TO PROHIBIT THE STATE FROM AWARDING  A
  6        CONTRACT FOR SERVICES TO A CONTRACTOR WHO PERFORMS THE SERVICES OR HAS THE
  7        SERVICES  PERFORMED  AT  A  SITE  OUTSIDE OF THE UNITED STATES, TO PROVIDE
  8        EXCEPTIONS, TO PROVIDE FOR DAMAGES AND TO PROVIDE FOR CIVIL PENALTIES.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION 1.  That Chapter 23, Title 67, Idaho Code, be,  and  the  same  is
 11    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 12    ignated as Section 67-2303, Idaho Code, and to read as follows:
                                                                        
 13        67-2303.  CONTRACTS. This section shall apply to all  contracts  for  ser-
 14    vices except contracts for the delivery of research or educational services by
 15    public universities or colleges at a  location outside the United States.
 16        (1)  All  state  agencies, departments, boards or commissions  are prohib-
 17    ited from awarding a contract for services to a contractor  who  performs  the
 18    services,  or has the services performed, at a site outside  the United States
 19    unless  the services are  so unique that they can only  be  performed  outside
 20    the United States.
 21        (2)  Each  vendor submitting a bid or contract to provide services for the
 22    state  shall certify that the services covered by the bid or contract will  be
 23    performed  in  the  United States unless  the services are so unique that they
 24    can only be performed outside the United States.
 25        (3)  The state agency, department, board or commission may bring  a  civil
 26    action   to compel enforcement under this section. The court may award reason-
 27    able attorney's fees and costs to the agency, department, board or commission.
 28        (4)  For purposes of this section, a service shall be deemed to be  unique
 29    if  it  is performed at a site outside the United States, if a significant and
 30    substantial economic cost factor exists that outweighs the economic impact  of
 31    providing  the  services  within the United States, such that a failure to use
 32    the vendor's services would result in economic hardship to the state of Idaho.
 33        (5)  A state agency, department, board or commission  shall be exempt from
 34    the provisions of this section if it is  provided  with  a   letter  from  the
 35    vendor  stating  that  it is the only source that can provide services and the
 36    services are so unique that they can only  be  performed  outside  the  United
 37    States.   There  shall be a civil penalty not in excess of fifty thousand dol-
 38    lars ($50,000) assessed against any person or entity  who  willfully  misleads
 39    the  state  agency,  department,  board or commission under this section.  The
 40    civil penalty shall be remitted to the general fund.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 14949

The outsourcing of jobs offshore is detrimental to the economy of
the State of Idaho and the United States of America.  Taxpayers
should not be expected to support this practice.  This measure
would require that state agencies may not contract with
contractors or vendors who perform services offshore that could
easily be performed by those residing in the United States.
                               
              
                          FISCAL IMPACT

The state Department of Health and Welfare currently has some
phone banks contracted overseas (India).  The cost to have those
calls answered in the United States would be $124,700 to the
general fund and $142,900 from federal funds.  This cost does not
take into account the fiscal benefits of state monies allocated
to the United States residents who would perform those jobs.


Contact  
Name: Senator Clint Stennett
Phone: 332-1351


STATEMENT OF PURPOSE/FISCAL NOTE                      S 1150