House File 314 - Introduced HOUSE FILE BY WILDERDYKE and FORD Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act establishing requirements for persons contracting with the 2 state to provide services. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2188HT 81 5 jp/sh/8 PAG LIN 1 1 Section 1. NEW SECTION. 73.3A CONTRACT EMPLOYEE 1 2 SERVICES. 1 3 A person who contracts with a department, as defined in 1 4 section 8.2, or a state authority to provide administrative, 1 5 labor, or other services that would otherwise be provided by 1 6 state employees shall, as a condition of receiving the 1 7 contract, report all payments received under the contract to 1 8 the department of management. The department of management 1 9 shall annually prepare an analysis of the reports and provide 1 10 the analysis to the governor and the general assembly. 1 11 Sec. 2. NEW SECTION. 217.14 CONTRACTOR REQUIREMENTS. 1 12 1. A person contracting with the department of human 1 13 services to provide services shall be subject to all of the 1 14 requirements of this section. 1 15 2. In addition to the requirements of section 68B.7, a 1 16 person who has been employed by the department, for a period 1 17 of two years after the termination of the employment, shall 1 18 not contract with the department to provide services. 1 19 However, the prohibition under this subsection is not 1 20 applicable under any of the following circumstances: 1 21 a. The person is a subcontractor or is an employee of 1 22 another state department or an institution under the control 1 23 of the state board of regents. 1 24 b. If a person with expertise in a particular area is no 1 25 longer employed by the department, the department may contract 1 26 for a limited period of time to secure the expertise. 1 27 c. The department has demonstrated a good faith effort to 1 28 fill a position that is critical to the health and safety of 1 29 departmental clients from a pool of applicants that does not 1 30 include former departmental employees, but was unsuccessful in 1 31 identifying qualified candidates from the pool. 1 32 d. The person terminated employment with the department 1 33 due to a layoff or reduction in force. 1 34 e. The person terminated employment with the department 1 35 within twelve months of obtaining an advanced degree from an 2 1 accredited college or university and the degree qualified the 2 2 person to provide services that the person was not previously 2 3 qualified to provide. 2 4 3. A contractor shall have adequate liability insurance 2 5 for the services being performed. 2 6 4. A contractor shall be subject to evaluation 2 7 requirements, with preference given to evaluation performed by 2 8 an independent evaluator. 2 9 EXPLANATION 2 10 This bill establishes requirements for persons contracting 2 11 with the state to provide services. 2 12 The bill amends Code chapter 73, relating to preferences 2 13 for Iowa contracts and labor. The bill requires a person who 2 14 contracts with an executive branch department, commission, 2 15 board, institution, bureau, office, or other state government 2 16 agency, to report all payments received under the contract to 2 17 the department of management. The reporting requirement is 2 18 applied as a condition of receiving the contract. The 2 19 department of management is to annually provide an analysis of 2 20 the reports to the governor and the general assembly. 2 21 Iowa's ethics law in Code section 68B.7 prohibits a state 2 22 employee, within a period of two years after the termination 2 23 of employment, from appearing before the agency or receiving 2 24 compensation for any services rendered on behalf of any 2 25 person, firm, corporation, or association in relation to any 2 26 case, proceeding, or application with respect to which the 2 27 person was directly concerned and personally participated 2 28 during the period of employment. The bill provides a general 2 29 prohibition during the two=year period against a former 2 30 employee of the department of human services providing 2 31 services as a contractor, subcontractor, or employee of a 2 32 contractor providing services to the department. The bill 2 33 provides exceptions to the prohibition, allowing contracting 2 34 with a former employee under certain circumstances. 2 35 The bill requires a contractor with the department of human 3 1 services to have adequate liability insurance for the service 3 2 being performed. A contractor is subject to evaluation 3 3 requirements, with preference given to evaluation performed by 3 4 an independent evaluator. 3 5 LSB 2188HT 81 3 6 jp:rj/sh/8.1