Senate File 2176 - Introduced SENATE FILE BY BOLKCOM Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the administrative duties of the state board 2 of regents and providing a premium tax exemption for regents' 3 employee insurance policies. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5873XS 81 6 jr/je/5 PAG LIN 1 1 Section 1. Section 15H.3, subsection 1, paragraph e, Code 1 2 Supplement 2005, is amended to read as follows: 1 3 e. The executivesecretarydirector of the state board of 1 4 regents, or the executivesecretary'sdirector's designee. 1 5 Sec. 2. Section 91A.3, subsection 3, Code Supplement 2005, 1 6 is amended by adding the following new unnumbered paragraph: 1 7 NEW UNNUMBERED PARAGRAPH. The state board of regents and 1 8 institutions under its jurisdiction may require, as a 1 9 condition of employment, an employee to sign up for direct 1 10 deposit of the employee's wage in a financial institution of 1 11 the employee's choice. 1 12 Sec. 3. Section 262.7, subsection 1, Code 2005, is amended 1 13 to read as follows: 1 14 1. The state university of Iowa, including the university 1 15 of Iowa hospitals and clinics. 1 16 Sec. 4. Section 262.8, Code 2005, is amended to read as 1 17 follows: 1 18 262.8 MEETINGS. 1 19 The board shall meet four times a year. Special meetings 1 20 may be called by the board, by the president of the board, or 1 21 by thesecretaryexecutive director of the board upon written 1 22 request of any five members thereof. 1 23 Sec. 5. Section 262.11, Code 2005, is amended to read as 1 24 follows: 1 25 262.11 RECORD == ACTS AFFECTING PROPERTY. 1 26 All acts of the board relating to the management, purchase, 1 27 disposition, or use of lands and other property of said 1 28 institutions shall be entered of record, which shall show the 1 29 members present, and how each voted upon each proposition. 1 30 The board may, in its discretion, delegate to each university 1 31 the authority to approve leases. 1 32 Sec. 6. Section 262.34A, Code 2005, is amended to read as 1 33 follows: 1 34 262.34A BID REQUESTS AND TARGETED SMALL BUSINESS 1 35 PROCUREMENT. 2 1 1. The state board of regents shall request bids and 2 2 proposals for materials, products, supplies, provisions, and 2 3 other needed articles to be purchased at public expense, from 2 4 Iowa state industries as defined in section 904.802, 2 5 subsection 2, when the articles are available in the requested 2 6 quantity and at comparable prices and quality. 2 7 2. Notwithstanding section 73.16, subsection 2, the board 2 8 may issue electronic bid notices for distribution to the 2 9 targeted small business internet site through internet links 2 10 to each of the regents institutions. 2 11 3. Notwithstanding section 73.17, the board shall notify 2 12 the director of the department of economic development of 2 13 regents institutions' targeted small business purchases on an 2 14 annual basis. 2 15 Sec. 7. Section 262.58, Code 2005, is amended to read as 2 16 follows: 2 17 262.58 RATES AND TERMS OF BONDS OR NOTES. 2 18 Such bonds or notes may bear such date or dates, may bear 2 19 interest at such rate or rates, payable semiannually, may 2 20 mature at such time or times, may be in such form, carry such 2 21 registration privileges, may be payable at such place or 2 22 places, may be subject to such terms of redemption prior to 2 23 maturity with or without premium, if so stated on the face 2 24 thereof, and may contain such terms and covenants all as may 2 25 be provided by the resolution of the board authorizing the 2 26 issuance of the bonds or notes. In addition to the estimated 2 27 cost of construction, the cost of the project shall be deemed 2 28 to include interest upon the bonds or notes during 2 29 construction and for six months after the estimated completion 2 30 date, the compensation of a fiscal agent or adviser, and 2 31 engineering, administrative and legal expenses. Such bonds or 2 32 notes shall be executed by the president of the state board of 2 33 regents and attested by thesecretary thereofexecutive 2 34 director of the state board of regents and the coupons thereto 2 35 attached shall be executed with the original or facsimile 3 1 signatures of said president andsecretaryexecutive director. 3 2 Any bonds or notes bearing the signatures of officers in 3 3 office on the date of the signing thereof shall be valid and 3 4 binding for all purposes, notwithstanding that before delivery 3 5 thereof any or all such persons whose signatures appear 3 6 thereon shall have ceased to be such officers. Each such bond 3 7 or note shall state upon its face the name of the institution 3 8 on behalf of which it is issued, that it is payable solely and 3 9 only from the net rents, profits and income derived from the 3 10 operation of residence halls or dormitories, including dining 3 11 and other incidental facilities, at such institution as 3 12 hereinbefore provided, and that it does not constitute a 3 13 charge against the state of Iowa within the meaning or 3 14 application of any constitutional or statutory limitation or 3 15 provision. The issuance of such bonds or notes shall be 3 16 recorded in the office of the treasurer of the institution on 3 17 behalf of which the same are issued, and a certificate by such 3 18 treasurer to this effect shall be printed on the back of each 3 19 such bond or note. 3 20 Sec. 8. Section 262A.6, Code 2005, is amended to read as 3 21 follows: 3 22 262A.6 FORM AND CONDITION OF BONDS. 3 23 Such bonds may bear such date or dates, may bear interest 3 24 at such rate or rates, payable semiannually, may mature at 3 25 such time or times, may be in such form and denominations, may 3 26 carry such registration privileges, may be payable at such 3 27 place or places, may be subject to such terms of redemption 3 28 prior to maturity with or without premium, if so stated on the 3 29 face thereof, and may contain such terms and covenants, 3 30 including the establishment of reserves, all as may be 3 31 provided by the resolution of the board authorizing the 3 32 issuance of the bonds. In addition to the estimated cost of 3 33 construction, including site costs, the cost of the project 3 34 may include interest upon the bonds during construction and 3 35 for six months after the estimated completion date, the 4 1 compensation of a fiscal agent or adviser, engineering, 4 2 architectural, administrative and legal expenses and provision 4 3 for contingencies. Such bonds shall be executed by the 4 4 president of the state board of regents and attested by the 4 5 executivesecretarydirector, secretary or other official 4 6 thereof performing the duties ofsecretaryexecutive director, 4 7 and the coupons thereto attached shall be executed with the 4 8 original or facsimile signatures of said president, executive 4 9secretarydirector, secretary or other official; provided, 4 10 however, that the facsimile signature of either of such 4 11 officers executing such bonds may be imprinted on the face of 4 12 the bonds in lieu of the manual signature of such officer, but 4 13 at least one of the signatures appearing on the face of each 4 14 bond shall be a manual signature. Any bonds bearing the 4 15 signatures of officers in office on the date of the signing 4 16 thereof shall be valid and binding for all purposes, 4 17 notwithstanding that before delivery thereof any or all such 4 18 persons whose signatures appear thereon shall have ceased to 4 19 be such officers. Each such bond shall state upon its face 4 20 the name of the institution on behalf of which it is issued, 4 21 that it is payable solely and only from the student fees and 4 22 charges and institutional income received by such institution 4 23 as hereinbefore provided, and that it does not constitute a 4 24 debt of or charge against the state of Iowa within the meaning 4 25 or application of any constitutional or statutory limitation 4 26 or provision. The issuance of such bonds shall be recorded in 4 27 the office of the treasurer of the institution on behalf of 4 28 which the same are issued, and a certificate by such treasurer 4 29 to this effect shall be printed on the back of each such bond. 4 30 Sec. 9. Section 263A.4, Code 2005, is amended to read as 4 31 follows: 4 32 263A.4 BONDS OR NOTES PROVISIONS. 4 33 Such bonds or notes may bear such date or dates, may bear 4 34 interest at such rate or rates, payable semiannually, may 4 35 mature at such time or times, may be in such form and 5 1 denominations, carry such registration privileges, may be 5 2 payable at such place or places, may be subject to such terms 5 3 of redemption prior to maturity with or without premium, if so 5 4 stated on the face thereof, and may contain such terms and 5 5 covenants, including the establishment of reserves, all as may 5 6 be provided by the resolution of the board authorizing the 5 7 issuance of the bonds or notes. In addition to the estimated 5 8 cost of construction, including site costs, the cost of the 5 9 project may include interest upon the bonds or notes during 5 10 construction and for six months after the estimated completion 5 11 date, the compensation of a fiscal agent or adviser, 5 12 engineering, architectural, administrative, and legal expenses 5 13 and provision for contingencies. Such bonds or notes shall be 5 14 executed by the president of the state board of regents and 5 15 attested by the executivesecretarydirector, secretary, or 5 16 other official thereof performing the duties ofsecretary5 17 executive director, and the coupons thereto attached shall be 5 18 executed with the original or facsimile signatures of said 5 19 president, executivesecretarydirector, secretary, or other 5 20 official; provided, however, that the facsimile signature of 5 21 either of such officers executing such bonds may be imprinted 5 22 on the face of the bonds in lieu of the manual signature of 5 23 such officer, but at least one of the signatures appearing on 5 24 the face of each bond shall be a manual signature. Any bonds 5 25 or notes bearing the signatures of officers in office on the 5 26 date of the signing thereof shall be valid and binding for all 5 27 purposes, notwithstanding that before delivery thereof any or 5 28 all such persons whose signatures appear thereon shall have 5 29 ceased to be such officers. Each such bond or note shall 5 30 state upon its face the name of the institution on behalf of 5 31 which it is issued, that it is payable solely and only from 5 32 hospital income received by such institution as provided in 5 33 this chapter, and that it does not constitute a debt of or 5 34 charge against the state of Iowa within the meaning or 5 35 application of any constitutional or statutory limitation or 6 1 provision. The issuance of such bonds or notes shall be 6 2 recorded in the office of the treasurer of the institution, 6 3 and a certificate by such treasurer to this effect shall be 6 4 printed on the back of each such bond or note. 6 5 Sec. 10. Section 432.13, Code 2005, is amended to read as 6 6 follows: 6 7 432.13 PREMIUM TAX EXEMPTION == HAWK=I PROGRAM == STATE 6 8 EMPLOYEE BENEFITS. 6 9 Premiums collected by participating insurers under chapter 6 10 514I are exempt from premium tax. 6 11 Premiums received for benefits acquired by the department 6 12 of administrative services on behalf of state employees 6 13 pursuant to section 8A.402, subsection 1, and by the state 6 14 board of regents on behalf of regents' employees, are exempt 6 15 from premium tax. 6 16 Sec. 11. Section 262.29, Code 2005, is repealed. 6 17 EXPLANATION 6 18 This bill contains a number of amendments relating to the 6 19 administration of institutions under the control of the state 6 20 board of regents. 6 21 Current law allows employers to demand the direct deposit 6 22 of payroll checks to a financial institution for newly hired 6 23 employees. The bill allows institutions under the control of 6 24 the board of regents to require direct deposit for all 6 25 employees. 6 26 The bill modifies, for institutions under the control of 6 27 the board of regents, a general provision requiring state 6 28 agencies to issue electronic project bid notices for 6 29 distribution to the targeted small business internet site if 6 30 that notice is provided in an electronic format through 6 31 internet links. 6 32 Current law requires state agencies to notify the 6 33 department of economic development, on a quarterly basis, of 6 34 anticipated purchases and procurements designated to satisfy 6 35 the targeted small business procurement goal. The bill changes 7 1 the reporting period to annual reporting for institutions 7 2 under the control of the board of regents. 7 3 The bill adds the university of Iowa hospitals and clinics 7 4 to the enumeration of institutions under the governance of the 7 5 board of regents. 7 6 The bill empowers the board to delegate to each university 7 7 the authority to approve leases. 7 8 The bill allows the board to file all claims for the 7 9 actual, necessary expenses in the same manner as claims for 7 10 similar expenses by state officers, eliminating the role of 7 11 the department of administrative services. 7 12 Code chapter 432 currently exempts the department of 7 13 administrative services from paying a tax on premiums paid to 7 14 purchase life and disability insurance policies on its 7 15 employees. The bill also exempts the institutions under the 7 16 control of the board of regents from paying the premium tax. 7 17 The bill changes the name of the chief executive officer of 7 18 the board from executive secretary to executive director. 7 19 LSB 5873XS 81 7 20 jr:rj/je/5