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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
]]]] 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.
]]]] 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".
]]]] 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
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