Senate File 2370 - Introduced SENATE FILE BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO SSB 3243) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to local government innovation, creating a local 2 government innovation commission and fund, creating a center 3 for governing excellence, and including an effective date. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5791SV 81 6 sc/cf/24 PAG LIN 1 1 Section 1. Section 8.64, Code 2005, is amended by striking 1 2 the section and inserting in lieu thereof the following: 1 3 8.64 DEFINITIONS. 1 4 For purposes of sections 8.65 through 8.68: 1 5 1. "Commission" means the local government innovation 1 6 commission. 1 7 2. "Community=wide area" means a distinct geographical 1 8 area voluntarily formed by and comprised of counties, cities, 1 9 or townships, or any combination thereof, all of which possess 1 10 a degree of autonomy in a varying number of matters. 1 11 3. "Department" means the department of management. 1 12 Sec. 2. NEW SECTION. 8.65 LOCAL GOVERNMENT INNOVATION 1 13 COMMISSION. 1 14 1. A local government innovation commission is created 1 15 consisting of thirteen voting members and four nonvoting 1 16 members. 1 17 a. Voting members of the commission shall be appointed for 1 18 a term of three years as follows: 1 19 (1) One member representing the executive branch appointed 1 20 by the governor. 1 21 (2) One member representing county government appointed by 1 22 the president of the Iowa state association of counties. 1 23 (3) One member representing city government appointed by 1 24 the president of the Iowa league of cities. 1 25 (4) One member representing community colleges appointed 1 26 by the president of the Iowa association of community college 1 27 presidents. 1 28 (5) One member representing the councils of governments 1 29 appointed by the president of the Iowa association of councils 1 30 of government. 1 31 (6) The administrator of the homeland security and 1 32 emergency management division of the Iowa department of public 1 33 defense. 1 34 (7) The director of the department of economic development 1 35 or the director's designee. 2 1 (8) Two members representing the general public appointed 2 2 by the governor. 2 3 (9) Four members representing the general public, one each 2 4 appointed by the majority leader of the senate, the minority 2 5 leader of the senate, the speaker of the house of 2 6 representatives, and the minority leader of the house of 2 7 representatives. 2 8 b. Four nonvoting members of the general assembly shall be 2 9 appointed for a term of two years commencing at the convening 2 10 of each general assembly, one each appointed by the majority 2 11 leader of the senate, the minority leader of the senate, the 2 12 speaker of the house of representatives, and the minority 2 13 leader of the house of representatives. However, initial 2 14 appointments of members under this paragraph shall be made on 2 15 the effective date of this Act. 2 16 2. a. Terms of voting members shall begin and end as 2 17 provided by section 69.19. Any vacancy shall be filled in the 2 18 same manner as regular appointments are made for the unexpired 2 19 portion of the regular term. 2 20 b. Members of the commission shall be allowed their actual 2 21 and necessary expenses incurred in the performance of their 2 22 duties. The members of the commission representing the 2 23 general public shall also be compensated as provided in 2 24 section 7E.6. Per diem and expenses paid to commission 2 25 members shall be paid from moneys appropriated to the local 2 26 government innovation fund, except that the per diem and 2 27 expenses of members of the general assembly shall be paid 2 28 pursuant to section 2.12. 2 29 c. The commission shall meet in May of each year for the 2 30 purpose of electing one of its voting members as chairperson. 2 31 The commission shall meet at the call of the chairperson or 2 32 when a majority of the voting members of the commission files 2 33 a written request with the chairperson for a meeting. Written 2 34 notice of the time and place of each meeting shall be given to 2 35 each member of the commission. 3 1 d. A majority of the voting members of the commission 3 2 constitutes a quorum. Any action taken by the commission must 3 3 be adopted by the affirmative vote of a majority of its voting 3 4 membership. 3 5 e. The commission is located for administrative purposes 3 6 within the department. The department shall provide office 3 7 space, staff assistance, administrative support, and necessary 3 8 supplies and equipment to the commission. 3 9 Sec. 3. NEW SECTION. 8.66 DUTIES OF COMMISSION. 3 10 The commission shall do all of the following: 3 11 1. Promote, encourage, and advance innovation and 3 12 creativity in local governance. 3 13 2. Develop an application and review process for local 3 14 governance plans submitted to the commission by a community= 3 15 wide area. Results, strategies, and desired outcomes 3 16 identified by the commission in developing its application and 3 17 review process shall include but not be limited to the 3 18 following: 3 19 a. Cost savings to citizens, in particular lowering of 3 20 local government property taxes. 3 21 b. Creation of, or inducement to create, high=wage, stable 3 22 employment opportunities for a local government's citizens and 3 23 more effective leveraging of resources to improve competitive 3 24 advantage. 3 25 c. Elimination of duplication of government 3 26 administration. 3 27 d. More efficient delivery of services by government, 3 28 including eliminating duplication of service delivery by more 3 29 than one unit of government in the same area. 3 30 e. Creation of a state=local partnership in one or more 3 31 areas of service delivery and governance that would increase 3 32 quality and efficiency on the local level. 3 33 3. Design an application form to be completed by a 3 34 community=wide area seeking review of a local governance and 3 35 revenue model. The application form shall employ a return on 4 1 investment concept which requires the community=wide area to 4 2 demonstrate how the local governance and revenue model will 4 3 result in reduced local government or state general fund 4 4 expenditures or how local government fund revenues will 4 5 increase without an increase in state costs, how local 4 6 government services will be provided more efficiently or will 4 7 be of increased quality resulting in greater value from the 4 8 expenditure of local government revenues, and how the model 4 9 develops partnerships with the state to provide increased 4 10 quality and efficiency on the local level. 4 11 4. Utilize the department of management, the department of 4 12 revenue, or other sources of technical expertise designated by 4 13 the commission to certify savings projected for a proposed 4 14 local governance and revenue model. 4 15 5. On or before January 1, 2008, submit to the general 4 16 assembly and to the office of the governor recommendations for 4 17 legislation that would provide flexibility and freedom to 4 18 local governments in implementing governance and revenue 4 19 models. 4 20 6. a. Prepare a request for proposal for establishment of 4 21 an Iowa center for governing excellence as provided in section 4 22 8.68. 4 23 b. The request for proposal shall require employment of a 4 24 full=time director and administrative assistant at the center. 4 25 Sec. 4. NEW SECTION. 8.67 LOCAL GOVERNMENT INNOVATION 4 26 FUND. 4 27 1. A local government innovation fund is created in the 4 28 state treasury under the control of the department of 4 29 management for the purpose of stimulating and encouraging 4 30 innovation in local government by providing moneys for the 4 31 purpose of providing grants to assist in the implementation of 4 32 local governance and revenue models. 4 33 2. Officials of a community=wide area who have submitted a 4 34 local governance and revenue model to the commission for 4 35 review may apply to the commission for a grant from the local 5 1 government innovation fund to implement all or a portion of 5 2 such governance and revenue model. Officials seeking a grant 5 3 from the fund shall complete an application form designed by 5 4 the commission which employs a return on investment concept. 5 5 Minimum requirements for local government grant requests shall 5 6 be determined by the commission and adopted by rule by the 5 7 department of management. 5 8 3. Notwithstanding section 12C.7, subsection 2, interest 5 9 or earnings on moneys deposited in the local government 5 10 innovation fund shall be credited to the local government 5 11 innovation fund. Notwithstanding section 8.33, moneys 5 12 appropriated to and moneys remaining in the local government 5 13 innovation fund at the end of a fiscal year shall not revert 5 14 to the general fund of the state. 5 15 Sec. 5. NEW SECTION. 8.68 IOWA CENTER FOR GOVERNING 5 16 EXCELLENCE. 5 17 1. The commission shall establish an Iowa center for 5 18 governing excellence. The purpose of the Iowa center for 5 19 governing excellence is to do all of the following: 5 20 a. Enhance the accountability, effectiveness, and 5 21 efficiency of Iowa's local governments and state agencies by 5 22 providing objective and nonpartisan research and training 5 23 support for policymakers and government officials. 5 24 b. Integrate the research capacities of the regents 5 25 universities and of organizations representing local 5 26 governments to support management and policy research. 5 27 c. Facilitate dialogues among Iowa's state agencies and 5 28 local governments, regents universities, organizations 5 29 representing local governments, and citizens on government 5 30 policy design, implementation, and evaluation. 5 31 2. After its creation, the center may solicit, accept, and 5 32 administer moneys contributed to the center by any source, and 5 33 may enter into contracts with public or private agencies in 5 34 order to carry out its purposes. 5 35 3. The center shall submit an annual report of the 6 1 activities of the center to the governor and to the general 6 2 assembly as provided in section 7A.11A by January 15 of each 6 3 year. 6 4 4. a. A governing board is created to oversee and direct 6 5 the activities of the Iowa center for governing excellence. 6 6 b. The governing board shall be composed of the following 6 7 members: 6 8 (1) A representative of state government appointed by the 6 9 governor. 6 10 (2) A representative of the Iowa league of cities 6 11 appointed by the president of the league. 6 12 (3) A representative of the Iowa state association of 6 13 counties appointed by the president of the association. 6 14 c. The governing board shall oversee the operations of the 6 15 Iowa center for governing excellence and shall make decisions 6 16 regarding research and training activities conducted by the 6 17 center. 6 18 Sec. 6. EFFECTIVE DATE. This Act, being deemed of 6 19 immediate importance, takes effect upon enactment. 6 20 EXPLANATION 6 21 This bill makes changes relating to local government 6 22 innovation. 6 23 The bill creates the local government innovation commission 6 24 which is located in the department of management for 6 25 administrative purposes. Members of the commission represent 6 26 the executive branch, county and city governments, community 6 27 colleges, councils of governments, the homeland security and 6 28 emergency management division of the Iowa department of public 6 29 defense, the department of economic development, and the 6 30 general public. Four members of the general assembly are 6 31 appointed as nonvoting members of the commission. The 6 32 commission is to develop a request for results application and 6 33 review process to review local governance and revenue models 6 34 submitted by community=wide areas. The bill requires the 6 35 commission to report to the general assembly and to the 7 1 governor's office on or before January 1, 2008, with 7 2 recommendations for legislative changes that would provide 7 3 flexibility and freedom to community=wide areas in 7 4 implementing governance and revenue models. The bill defines 7 5 "community=wide area". 7 6 The bill directs the commission to prepare a request for 7 7 proposal for establishment of an Iowa center for governing 7 8 excellence. The bill provides that the purpose of the center 7 9 for governing excellence is to provide objective and 7 10 nonpartisan research and training for policymakers and 7 11 government officials; to integrate the research capacities of 7 12 the regents universities and of local government 7 13 organizations; and to facilitate dialogues among Iowa's state 7 14 agencies, local governments, regents universities, and 7 15 citizens on government policy design, implementation, and 7 16 evaluation. The bill provides that the activities of the Iowa 7 17 center for governing excellence shall be directed and 7 18 supervised by a governing board comprised of a representative 7 19 of state government and of representatives of the Iowa league 7 20 of cities and the Iowa state association of counties. 7 21 The bill also creates a local government innovation fund 7 22 for the purpose of providing grants to community=wide areas to 7 23 assist in the implementation of local governance and revenue 7 24 models that have been reviewed by the commission. 7 25 LSB 5791SV 81 7 26 sc:rj/cf/24