Hearing focused on Iowa preference law

January 29, 2015

Sen. Liz Mathis (D-Cedar Rapids) chaired a subcommittee related to state purchasing preference for Iowa products.Senate File 1 states that if a contract is less than $500,000 and an out-of-state bidder receives the lowest bid, and an Iowa based business submitted a bid within 5% or $10,000 of the lowest bid, the Iowa business would receive the work or the contract. There are exemptions to the legislation for roads and bridges and architectural and engineering work. The bill also defines “Iowa based business” for purposes of this bill as a company who has its principal place of business in Iowa. The bill moved forward to the full Economic Growth Committee.