House File 55 - Introduced HOUSE FILE 55 BY BAUDLER A BILL FOR An Act relating to the awarding of bonuses to appointed state 1 officers and state employees and to employees of entities 2 receiving government funds pursuant to a service contract 3 with the state and providing an effective date. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1224HH (3) 84 aw/rj

H.F. 55 Section 1. Section 8F.3, subsection 1, Code 2011, is amended 1 by adding the following new paragraph: 2 NEW PARAGRAPH . e. Information that the recipient entity’s 3 policies prohibit the use of any of the moneys received 4 pursuant to a service contract to provide bonuses to officers 5 or employees of the recipient entity. 6 Sec. 2. Section 70A.1, subsection 1, Code 2011, is amended 7 to read as follows: 8 1. Salaries specifically provided for in an appropriation 9 Act of the general assembly shall be in lieu of existing 10 statutory salaries, for the positions provided for in the Act, 11 and all salaries, including longevity where applicable by 12 express provision in the Code, shall be paid according to the 13 provisions of chapter 91A and shall be in full compensation 14 of all services, including any service on committees, boards, 15 commissions or similar duty for Iowa government, except for 16 members of the general assembly. A state employee on an annual 17 salary shall not be paid for a pay period an amount which 18 exceeds the employee’s annual salary transposed into a rate 19 applicable to the pay period by dividing the annual salary by 20 the number of pay periods in the fiscal year. Salaries for 21 state employees covered by the overtime payment provisions of 22 the federal Fair Labor Standards Act shall be established on an 23 hourly basis. In addition, unless otherwise authorized by law 24 or required pursuant to a collective bargaining agreement, a 25 state employee shall not receive any additional remuneration in 26 the form of a bonus, including but not limited to a retention 27 bonus, recruitment bonus, exceptional job performance pay, 28 extraordinary job performance pay, exceptional performance 29 pay, extraordinary duty pay, or extraordinary or special duty 30 pay, for or during the time period beginning on or after the 31 effective date of this Act. 32 Sec. 3. Section 602.1401, subsection 6, Code 2011, is 33 amended to read as follows: 34 6. The benefits plan established by the supreme court may 35 -1- LSB 1224HH (3) 84 aw/rj 1/ 3

H.F. 55 provide for benefits to court employees not covered under 1 a collective bargaining agreement entered into pursuant to 2 chapter 20 , notwithstanding any contrary provision of section 3 70A.1 or 70A.23 , consistent with benefits provided to court 4 employees covered under a collective bargaining agreement 5 entered into with the state court administrator pursuant to 6 chapter 20 . Court employees not covered under a collective 7 bargaining agreement, however, shall not receive any additional 8 remuneration in the form of a bonus, including but not limited 9 to a retention bonus, recruitment bonus, exceptional job 10 performance pay, extraordinary job performance pay, exceptional 11 performance pay, extraordinary duty pay, or extraordinary or 12 special duty pay, for or during the time period beginning on or 13 after the effective date of this Act. 14 Sec. 4. 2010 Iowa Acts, chapter 1193, section 17, subsection 15 3, is amended to read as follows: 16 3. A person whose salary is established pursuant to this 17 section and who is a full-time, year-round employee of the 18 state shall not receive any other remuneration from the state 19 or from any other source for the performance of that person’s 20 duties unless the additional remuneration is first approved by 21 the governor or authorized by law . However, this provision 22 does not exclude the reimbursement for necessary travel and 23 expenses incurred in the performance of duties or fringe 24 benefits normally provided to employees of the state. 25 Sec. 5. 2010 Iowa Acts, chapter 1193, section 21, is amended 26 to read as follows: 27 SEC. 21 BONUS PAY. For the fiscal year beginning July 1, 28 2010, and ending June 30, 2011, employees of the executive 29 branch, judicial branch, and legislative branch shall not 30 receive bonus pay unless otherwise authorized by law, required 31 pursuant to a contract of employment entered into before July 32 1, 2010, or required pursuant to a collective bargaining 33 agreement. This section does not apply to employees of the 34 state board of regents. For purposes of this section, “bonus 35 -2- LSB 1224HH (3) 84 aw/rj 2/ 3

H.F. 55 pay” means any additional remuneration provided an employee in 1 the form of a bonus, including but not limited to a retention 2 bonus, recruitment bonus, exceptional job performance pay, 3 extraordinary job performance pay, exceptional performance pay, 4 extraordinary duty pay, or extraordinary or special duty pay, 5 and any extra benefit not otherwise provided to other similarly 6 situated employees. 7 Sec. 6. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 8 immediate importance, takes effect upon enactment. 9 EXPLANATION 10 This bill prohibits the granting of bonuses to state 11 employees and the use of government moneys to provide bonuses 12 to employees of an entity that enters into a service contract 13 with the state. 14 Code section 8F.3, concerning contractual requirements 15 for entities entering into a service contract with a state 16 agency, is amended to provide that the entity entering into the 17 contract shall have policies in place prohibiting the use of 18 any of the moneys received pursuant to the service contract 19 to provide bonuses to officers or employees of the entity. 20 Code section 70A.1, concerning salaries and benefits of state 21 employees, is amended to provide that no bonuses shall be paid 22 to state employees unless otherwise authorized by law or a 23 collective bargaining agreement. 24 Code section 602.1401 is amended to prohibit the granting 25 of bonuses to court employees not covered under a collective 26 bargaining agreement. 27 2010 Iowa Acts, chapter 1193, concerning the pay of 28 appointed state officers, is amended to eliminate the ability 29 of the officers to receive additional remuneration if approved 30 by the governor or otherwise authorized by law. 31 The bill further amends 2010 Iowa Acts, chapter 1193, to 32 make the section 21 prohibition against granting bonus pay 33 applicable to employees of the state board of regents. 34 The bill takes effect upon enactment. 35 -3- LSB 1224HH (3) 84 aw/rj 3/ 3