Senate Study Bill 1161 SENATE FILE BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON QUIRMBACH) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to local governments by 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 1624SC 82 6 sc/cf/24 PAG LIN 1 1 Section 1. Section 8.64, Code 2007, 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. State 1 11 agencies and school districts may also participate in a 1 12 community=wide area if joined by a county, city, or township. 1 13 3. "Department" means the department of management. 1 14 Sec. 2. NEW SECTION. 8.65 LOCAL GOVERNMENT INNOVATION 1 15 COMMISSION. 1 16 1. A local government innovation commission is created 1 17 consisting of fourteen voting members and four nonvoting 1 18 members. 1 19 a. Voting members of the commission shall be appointed for 1 20 a term of three years as follows: 1 21 (1) One member representing the executive branch appointed 1 22 by the governor. 1 23 (2) One member representing county government appointed by 1 24 the president of the Iowa state association of counties. 1 25 (3) One member representing city government appointed by 1 26 the president of the Iowa league of cities. 1 27 (4) One member representing community colleges appointed 1 28 by the president of the Iowa association of community college 1 29 presidents. 1 30 (5) One member representing school districts appointed by 1 31 the president of the Iowa association of school boards. 1 32 (6) One member representing the councils of governments 1 33 appointed by the president of the Iowa association of councils 1 34 of government. 1 35 (7) The administrator of the homeland security and 2 1 emergency management division of the Iowa department of public 2 2 defense. 2 3 (8) The director of the department of economic development 2 4 or the director's designee. 2 5 (9) Two members appointed by the governor, both of whom 2 6 shall possess private business expertise and who are not 2 7 employees of any level of government. 2 8 (10) Four members representing the general public, one 2 9 each appointed by the majority leader of the senate, the 2 10 minority leader of the senate, the speaker of the house of 2 11 representatives, and the minority leader of the house of 2 12 representatives. 2 13 b. Four nonvoting members of the general assembly shall be 2 14 appointed for a term of two years commencing at the convening 2 15 of each general assembly, one each appointed by the majority 2 16 leader of the senate, the minority leader of the senate, the 2 17 speaker of the house of representatives, and the minority 2 18 leader of the house of representatives. However, initial 2 19 appointments of members under this paragraph shall be made on 2 20 the effective date of this Act. 2 21 2. a. Terms of voting members shall begin and end as 2 22 provided by section 69.19. Any vacancy shall be filled in the 2 23 same manner as regular appointments are made for the unexpired 2 24 portion of the regular term. 2 25 b. Members of the commission shall be allowed their actual 2 26 and necessary expenses incurred in the performance of their 2 27 duties. The members of the commission representing the 2 28 general public shall also be compensated as provided in 2 29 section 7E.6. Per diem and expenses paid to commission 2 30 members shall be paid from moneys appropriated to the local 2 31 government innovation fund, except that the per diem and 2 32 expenses of members of the general assembly shall be paid 2 33 pursuant to section 2.12. 2 34 c. The commission shall meet in May of each year for the 2 35 purpose of electing one of its voting members as chairperson. 3 1 The commission shall meet at the call of the chairperson or 3 2 when a majority of the voting members of the commission files 3 3 a written request with the chairperson for a meeting. Written 3 4 notice of the time and place of each meeting shall be given to 3 5 each member of the commission. 3 6 d. A majority of the voting members of the commission 3 7 constitutes a quorum. Any action taken by the commission must 3 8 be adopted by the affirmative vote of a majority of its voting 3 9 membership. 3 10 e. The commission is located for administrative purposes 3 11 within the department. The department shall provide office 3 12 space, staff assistance, administrative support, and necessary 3 13 supplies and equipment to the commission. 3 14 Sec. 3. NEW SECTION. 8.66 DUTIES OF COMMISSION. 3 15 The commission shall do all of the following: 3 16 1. Promote, encourage, and advance innovation and 3 17 creativity in local governance. 3 18 2. Develop an application and review process for local 3 19 governance and revenue models submitted to the commission by a 3 20 community=wide area. Results, strategies, and desired 3 21 outcomes identified by the commission in developing its 3 22 application and review process shall include but not be 3 23 limited to the following: 3 24 a. Cost savings to citizens, in particular lowering of 3 25 local government property taxes. 3 26 b. Creation of, or inducement to create, high=wage, stable 3 27 employment opportunities for a local government's citizens and 3 28 more effective leveraging of resources to improve competitive 3 29 advantage. 3 30 c. Elimination of duplication of government 3 31 administration. 3 32 d. More efficient and effective delivery of services by 3 33 government, including eliminating duplication of service 3 34 delivery by more than one unit of government in the same area 3 35 and modernizing services and service delivery to meet the 4 1 changing public service needs of the area. 4 2 e. Creation of a state=local partnership in one or more 4 3 areas of service delivery and governance that would increase 4 4 quality and efficiency on the local level. 4 5 3. Design an application form to be completed by a 4 6 community=wide area seeking review of a local governance and 4 7 revenue model. The application form shall require the 4 8 community=wide area to demonstrate how the local governance 4 9 and revenue model will result in reduced local government or 4 10 state general fund expenditures, how local government fund 4 11 revenues will increase without an increase in state costs, how 4 12 local government services will be provided more efficiently or 4 13 will be of increased quality resulting in greater value from 4 14 the expenditure of local government revenues, or how the model 4 15 develops partnerships with the state to provide increased 4 16 quality and efficiency on the local level. 4 17 4. Utilize the department of management, the department of 4 18 revenue, or other sources of technical expertise designated by 4 19 the commission to certify savings projected for a proposed 4 20 local governance and revenue model. 4 21 5. On or before January 1, 2009, submit to the general 4 22 assembly and to the office of the governor recommendations for 4 23 legislation that would provide flexibility and freedom to 4 24 local governments in implementing governance and revenue 4 25 models. 4 26 6. a. Prepare a request for proposals for establishment 4 27 of an Iowa center for governing excellence as provided in 4 28 section 8.68, and prepare procedures and a timetable for 4 29 submission and review of proposals and for selection of a 4 30 proposal. The proposal process shall be open to public and 4 31 private not=for=profit institutions of higher education, 4 32 either individually or in collaboration, located in this state 4 33 and accredited by the north central association of colleges 4 34 and secondary schools. 4 35 b. The request for proposals shall require each proposal 5 1 to provide for employment of a full=time director and 5 2 administrative assistant at the center. 5 3 c. The request for proposals shall require each proposal 5 4 to specify all of the following: 5 5 (1) The number and subject area specialties of the 5 6 research staff; the office space; the support staff; and the 5 7 computer, library, and research facilities to be provided by 5 8 the proposing institution. 5 9 (2) The personnel, facilities, and support provided for 5 10 the training of policymakers, public officials, and students 5 11 in areas including but not limited to public administration 5 12 and management, budgetary preparation and analysis, electronic 5 13 government, local=state government relations, and public 5 14 policy formulation, implementation, and evaluation. 5 15 (3) The funding to be committed by the proposing 5 16 institution or institutions. 5 17 7. Oversee and direct the activities of the Iowa center 5 18 for governing excellence. 5 19 Sec. 4. NEW SECTION. 8.67 LOCAL GOVERNMENT INNOVATION 5 20 FUND. 5 21 1. A local government innovation fund is created in the 5 22 state treasury under the control of the department of 5 23 management for the purpose of stimulating and encouraging 5 24 innovation in local government by providing moneys for the 5 25 purpose of providing grants to assist in the implementation of 5 26 local governance and revenue models. 5 27 2. Officials of a community=wide area who have submitted a 5 28 local governance and revenue model to the commission for 5 29 review may apply to the commission for a grant from the local 5 30 government innovation fund to implement all or a portion of 5 31 such governance and revenue model. Officials seeking a grant 5 32 from the fund shall complete an application form designed by 5 33 the commission. Minimum requirements for local government 5 34 grant requests shall be determined by the commission and 5 35 adopted by rule by the department of management. 6 1 3. Notwithstanding section 12C.7, subsection 2, interest 6 2 or earnings on moneys deposited in the local government 6 3 innovation fund shall be credited to the local government 6 4 innovation fund. Notwithstanding section 8.33, moneys 6 5 appropriated to and moneys remaining in the local government 6 6 innovation fund at the end of a fiscal year shall not revert 6 7 to the general fund of the state. 6 8 Sec. 5. NEW SECTION. 8.68 IOWA CENTER FOR GOVERNING 6 9 EXCELLENCE. 6 10 1. The commission shall establish an Iowa center for 6 11 governing excellence. The purpose of the Iowa center for 6 12 governing excellence is to do all of the following: 6 13 a. Enhance the accountability, effectiveness, and 6 14 efficiency of Iowa's local governments and state agencies by 6 15 providing objective and nonpartisan research and training 6 16 support for policymakers and government officials. 6 17 b. Integrate the research capacities of the community 6 18 colleges and public and private universities located in this 6 19 state and of organizations representing local governments to 6 20 support management and policy research. 6 21 c. Facilitate dialogues among Iowa's state agencies, local 6 22 governments, community colleges, public and private 6 23 universities, organizations representing local governments, 6 24 and citizens on government policy design, implementation, and 6 25 evaluation. 6 26 2. After its creation, the center may solicit, accept, and 6 27 administer moneys contributed to the center by any source, and 6 28 may enter into contracts with public or private agencies or 6 29 may enter into agreements subject to chapter 28E with public 6 30 and private agencies in order to carry out its purposes. All 6 31 records of the center including but not limited to records of 6 32 donations to the center and contracts or agreements entered 6 33 into by the center shall be public records for purposes of 6 34 chapter 22. 6 35 3. The center shall submit an annual report of the 7 1 activities of the center to the governor and to the general 7 2 assembly as provided in section 7A.11A by January 15 of each 7 3 year. 7 4 4. The local government innovation commission created in 7 5 section 8.65 shall oversee and direct the activities of the 7 6 Iowa center for governing excellence. 7 7 Sec. 6. EFFECTIVE DATE. This Act, being deemed of 7 8 immediate importance, takes effect upon enactment. 7 9 EXPLANATION 7 10 This bill makes changes relating to local governments by 7 11 creating a local government innovation commission and fund and 7 12 by creating a center for governing excellence. 7 13 The bill creates the local government innovation 7 14 commission, which is located in the department of management 7 15 for administrative purposes. Members of the commission 7 16 represent the executive branch, county and city governments, 7 17 school districts, community colleges, councils of governments, 7 18 the homeland security and emergency management division of the 7 19 Iowa department of public defense, the department of economic 7 20 development, and the private business sector. Four members of 7 21 the general assembly are appointed as nonvoting members of the 7 22 commission. The commission is to develop a request for 7 23 results application and review process to review local 7 24 governance and revenue models submitted by community=wide 7 25 areas. The bill requires the commission to report to the 7 26 general assembly and to the governor's office on or before 7 27 January 1, 2009, with recommendations for legislative changes 7 28 that would provide flexibility and freedom to community=wide 7 29 areas in implementing governance and revenue models. The bill 7 30 defines "community=wide area". 7 31 The bill directs the commission to prepare a request for 7 32 proposals for establishment of an Iowa center for governing 7 33 excellence. The bill provides that the purpose of the center 7 34 for governing excellence is to provide objective and 7 35 nonpartisan research and training for policymakers and 8 1 government officials; to integrate the research capacities of 8 2 community colleges and public and private universities and of 8 3 local government organizations; and to facilitate dialogues 8 4 among Iowa's state agencies, local governments, community 8 5 colleges, universities, and citizens on government policy 8 6 design, implementation, and evaluation. The bill provides 8 7 that the activities of the Iowa center for governing 8 8 excellence shall be directed and supervised by the local 8 9 government innovation commission. 8 10 The bill creates a local government innovation fund for the 8 11 purpose of providing grants to community=wide areas to assist 8 12 in the implementation of local governance and revenue models 8 13 that have been reviewed by the commission. 8 14 The bill takes effect upon enactment. 8 15 LSB 1624SC 82 8 16 sc:rj/cf/24.1