House File 2490 - Introduced HOUSE FILE BY FORD Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to requirements for service contracts with state 2 agencies. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6324HH 82 5 ak/nh/14 PAG LIN 1 1 Section 1. NEW SECTION. 68B.8 DEPARTMENT OF HUMAN 1 2 SERVICES == CERTAIN CONTRACTS PROHIBITED. 1 3 1. In addition to the limitations in section 68B.7, a 1 4 person who has been employed by the department of human 1 5 services shall not contract with the department to provide 1 6 services for a period of two years after the termination of 1 7 the employment. 1 8 2. The prohibition under subsection 1 is not applicable 1 9 under any of the following circumstances: 1 10 a. The person is a subcontractor or is an employee of 1 11 another state agency or of an institution under the control of 1 12 the state board of regents. 1 13 b. No one with expertise in a particular area is employed 1 14 by the department. The department may contract with a former 1 15 departmental employee for a limited period in order to secure 1 16 such expertise. 1 17 c. The department has demonstrated a good faith effort to 1 18 fill a position that is critical to the health and safety of 1 19 departmental clients from a pool of applicants that does not 1 20 include former departmental employees, but was unsuccessful in 1 21 identifying qualified candidates from the pool. 1 22 d. The person's employment with the department was 1 23 terminated due to a layoff or reduction in force. 1 24 e. The person terminated employment with the department 1 25 within twelve months of obtaining an advanced degree from an 1 26 accredited college or university and the degree qualified the 1 27 person to provide services that the person was not previously 1 28 qualified to provide and will provide under a contract with 1 29 the department. 1 30 3. The board, in consultation with the department of human 1 31 services, shall adopt rules pursuant to chapter 17A to 1 32 implement this section. 1 33 Sec. 2. NEW SECTION. 73.3A CONTRACT SERVICES == 1 34 REQUIREMENTS. 1 35 A person who contracts with a department, as defined in 2 1 section 8.2, or with a state authority to provide 2 2 administrative, labor, or other services that would otherwise 2 3 be provided by state employees shall, as a condition of 2 4 receiving the contract, report all payments received under the 2 5 contract to the department of management. The department of 2 6 management shall annually prepare an analysis of the reports 2 7 and provide the analysis to the governor and the general 2 8 assembly. 2 9 Sec. 3. NEW SECTION. 217.14 CONTRACT REQUIREMENTS. 2 10 A person contracting with the department of human services 2 11 to provide services shall be subject to the following 2 12 requirements as applicable: 2 13 1. Comply with the requirements of section 68B.8. 2 14 2. Provide adequate liability insurance for the services 2 15 being performed. 2 16 3. Accede to evaluation requirements, with preference 2 17 given to an evaluation performed by an independent evaluator. 2 18 EXPLANATION 2 19 This bill relates to requirements for contracts for 2 20 services with departments of the state. 2 21 New Code section 68B.8 prohibits the department of human 2 22 services from contracting with someone who was employed with 2 23 the department within the past two years. The Code section 2 24 provides five exceptions: the person is a subcontractor or an 2 25 employee of another department or regents institution; the 2 26 person has expertise that the department would otherwise not 2 27 have access to; the department tried but was unable to hire a 2 28 qualified person from a field of applicants that did not 2 29 include former employees; the person's employment ended due to 2 30 a layoff or workforce reduction; or the person's employment 2 31 ended within a year of the person earning an advanced degree 2 32 that allows the person to now provide new services. The Iowa 2 33 ethics and campaign disclosure board and the department of 2 34 human services are to adopt rules to implement the new 2 35 provisions. 3 1 Under new Code section 73.3A, any person who contracts with 3 2 a department or a state authority to provide services that 3 3 would otherwise be provided by state employees shall, as a 3 4 condition of receiving the contract, report all payments 3 5 received under the contract to the department of management. 3 6 The department of management shall annually prepare an 3 7 analysis of the reports and provide the analysis to the 3 8 governor and the general assembly. 3 9 The third part of the bill, new Code section 217.14, 3 10 relates to service contracts with the department of human 3 11 services. As applicable, a person contracting with the 3 12 department must comply with new Code section 68B.8, provide 3 13 liability insurance for the services being performed, and 3 14 accede to evaluation requirements. 3 15 LSB 6324HH 82 3 16 ak/nh/14