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PAG LIN 1 1 Section 1. Section 25.1, Code 1995, is amended to read as 1 2 follows: 1 3 25.1 RECEIPT, INVESTIGATION, AND REPORT. 1 4 1. When a claim is filed or made against the state, on 1 5 which in the judgment of the director of the department of 1 6 management the state would be liable except for the fact of 1 7 its sovereignty orwhichthat it has no appropriation 1 8 available for its payment, the director of the department of 1 9 management shall deliver that claim to the state appeal board. 1 10 2. The state appeal board shall make a record of the 1 11 receipt ofthat claim and forthwith deliver itclaims received 1 12 from the director of the department of management, notify the 1 13 special assistant attorney general for claims, and deliver a 1 14 copy to the state official or agency against whom the claim is 1 15 made, if any. 1 16 a. The official or agency shall report its recommendations 1 17 concerning the claim to the special assistant attorney general 1 18 for claims whoshall, with a view to determining the merits 1 19 and legality ofit, fullythe claim, shall investigate the 1 20 claim, including the facts upon which it is basedand report 1 21in duplicatethe findings and conclusions oflawthe 1 22 investigation to the state appeal board. 1 23 b. To help defray the initial costs of processing a claim 1 24 and the costs of investigating a claim, the department of 1 25 management may assess a processing fee and a fee to reimburse 1 26 the office of the attorney general for the costs of the claim 1 27 investigation against the state agency which incurred the 1 28 liability of the claim. 1 29 3. Notwithstanding subsections 1 and 2 and section 25.2, 1 30 the following claims shall be submitted by the person filing 1 31 the claim directly to the agency against whom the claim is 1 32 made for resolution according to section 25.2, subsection 2: 1 33 a. Outdated invoices, outdated bills for merchandise, or 1 34 claims for services furnished to the state, for goods or 1 35 services provided in the same fiscal year that the claim is 2 1 filed. 2 2 b. Outdated invoices, outdated bills for merchandise, or 2 3 claims for services furnished to the state, for goods or 2 4 services provided in any prior fiscal year, for which funding 2 5 would have been available to pay the claim if it had been 2 6 filed before the close of the fiscal year. 2 7 Claims submitted under this section may be approved by the 2 8 agency in accordance with section 25.2, subsection 2, except 2 9 that payment for claims for which the appropriation has 2 10 reverted to the general fund of the state must be paid in 2 11 accordance with section 25.2, subsection 3. 2 12 Sec. 2. Section 25.2, Code Supplement 1995, is amended to 2 13 read as follows: 2 14 25.2 EXAMINATION OF REPORT – APPROVAL OR REJECTION – 2 15 PAYMENT. 2 16 1. The state appeal board with the recommendation of the 2 17 special assistant attorney general for claims may approve or 2 18 reject claims against the state of less than ten years 2 19coveringinvolving the following:outdated2 20 a. Outdated warrants; outdated. 2 21 b. Outdated sales and use tax refunds; license. 2 22 c. License refunds; additional. 2 23 d. Additional agricultural land tax credits; outdated. 2 24 e. Outdated invoices; fuel. 2 25 f. Fuel and gas tax refunds; outdated. 2 26 g. Outdated homestead and veterans' exemptions; outdated. 2 27 h. Outdated funeral service claims; tractor. 2 28 i. Tractor fees; registration. 2 29 j. Registration permits; outdated. 2 30 k. Outdated bills for merchandise; services. 2 31 l. Services furnished to the state; claims. 2 32 m. Claims by any county or county official relating to the 2 33 personal property tax credit; and refunds. 2 34 n. Refunds of fees collected by the state. 2 35 2. Notwithstanding subsection 1, an agency that receives a 3 1 claim based on an outdated invoice, outdated bill for 3 2 merchandise, or for services furnished to the state pursuant 3 3 to section 25.1, subsection 3, may on its own approve or deny 3 4 the claim. The agency shall provide the state appeal board 3 5 with notification of receipt of the claim and action taken on 3 6 the claim by the agency. The state appeal board shall adopt 3 7 rules setting forth the procedures and standards for 3 8 resolution of claims by state agencies. Claims denied by an 3 9 agency shall be forwarded to the state appeal board by the 3 10 agency for further consideration, in accordance with this 3 11 chapter. 3 12 3. Payments authorized by the state appeal board shall be 3 13 paid from the appropriation or fund of original certification 3 14 of the claim. However, if that appropriation or fund has 3 15 since reverted under section 8.33 then such payment authorized 3 16 by the state appeal board shall be out of any money in the 3 17 state treasury not otherwise appropriated. 3 18 4. Notwithstanding the provisions of this section, the 3 19 director of revenue and finance may reissue outdated warrants. 3 20 5. On or before November 1 of each year, the director of 3 21 revenue and finance shall provide the treasurer of state with 3 22 a report of all unpaid warrants which have been outdated for 3 23 two years or more. The treasurer shall include information 3 24 regarding outdated warrants in the notice published pursuant 3 25 to section 556.12. The provisions of section 556.11 regarding 3 26 agreements to pay compensation for recovery or assistance in 3 27 recovery of unclaimed property are applicable to agreements to 3 28 pay compensation to recover or assist in the recovery of 3 29 outdated warrants. 3 30 Sec. 3. Section 421.38, subsection 1, Code 1995, is 3 31 amended to read as follows: 3 32 1. a.THREE MONTHSTIME AND FUNDING LIMIT. A claim shall 3 33 not be allowed by the department of revenue and finance ifthe3 34 either of the following has occurred: 3 35 (1) The claim is presented after the lapse of three months 4 1 from its accrual.However, this4 2 (2) The appropriation or fund of certification available 4 3 for paying the claim has been exhausted or proves 4 4 insufficient. 4 5 b. The timelimitlimitation set forth in paragraph "a", 4 6 subparagraph (1), is subject to the following exceptions: 4 7a.(1) Claims by state employees for benefits pursuant to 4 8 chapters 85, 85A, and 86 are subject to limitations provided 4 9 in those chapters. 4 10b.(2) Claims for medical assistance payments authorized 4 11 under chapter 249A are subject to the time limits imposed by 4 12 rule adopted by the department. 4 13 (3) Claims approved by an agency according to the 4 14 provisions of sections 25.1 and 25.2. 4 15 Sec. 4. EFFECTIVE DATE. This Act, being deemed of 4 16 immediate importance, takes effect upon enactment. 4 17 EXPLANATION 4 18 This bill amends the procedure for payment of claims based 4 19 on invoices for goods or services that were provided more than 4 20 90 days prior to the date of the claim, or that were submitted 4 21 after the close of the fiscal year. 4 22 Section 1 of the bill amends Code section 25.1 to provide 4 23 that such a claim can be filed directly with the agency that 4 24 received the goods or services, for approval or rejection. 4 25 Section 2 of the bill contains changes to section 25.2, 4 26 permitting the agency directly to approve or reject a claim 4 27 based on an outdated invoice. Section 25.2 also expressly 4 28 directs the state appeal board to adopt rules setting 4 29 standards for approval or rejection of such claims by 4 30 agencies. 4 31 Section 3 of the bill provides that the department of 4 32 revenue and finance can pay such an approved claim, provided 4 33 that the appropriation or fund of certification was 4 34 sufficient. 4 35 Section 4 of the bill contains a provision making the bill 5 1 effective upon enactment. 5 2 BACKGROUND STATEMENT 5 3 SUBMITTED BY THE AGENCY 5 4 Last year the state appeal board received approximately 5 5 3,000 general claims for review, approval, and processing. 5 6 The number of claims has been increasing about 10-15 percent 5 7 per year. Most general claims are for outdated invoices, 5 8 which means that vendors have not submitted bills for their 5 9 products or services within 90 days of providing the goods or 5 10 services. 5 11 A quality process improvement team was organized in 5 12 September 1993 to review and suggest improvements to the 5 13 process. The team found that, on average, 49 percent of the 5 14 outdated general claims were under $100 and that 85 percent of 5 15 the claims were less than $1,000. 5 16 After 18 months of research, the team recommended and the 5 17 state appeal board implemented a number of improvements. The 5 18 team concluded, and the state appeal board agreed, that the 5 19 review and approval of certain general claims could be 5 20 improved by assigning this responsibility to the agencies 5 21 incurring the liability. 5 22 LSB 3305DP 76 5 23 jls/sc/14.2
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