HSB 643 (LSB 5304DP (4) 84)

SENATE/HOUSE FILE _____

BY  (PROPOSED DEPARTMENT OF ADMINISTRATIVE SERVICES BILL)

A BILL FOR

An Act concerning the duties and operations of the department of administrative services.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I

STATE DEBT COLLECTION SETOFF PROCEDURES
    Section 1.  Section 8A.504, subsection 2, paragraph f, subparagraph (1), Code Supplement 2011, is amended to read as follows:
   (1)  Upon notice of entitlement to a payment, the state agency shall send written notification to that person of the state agency’s assertion of its rights to all or a portion of the payment and of the state agency’s entitlement to recover the liability through the setoff procedure, the basis of the assertion, the opportunity to request that a jointly or commonly owned right to payment be divided among owners, and the person’s opportunity to give written notice of intent to contest the amount of the allegation. The state agency shall send a copy of the notice to the collection entity. A state agency subject to chapter 17A shall give notice, conduct hearings, and allow appeals in conformity with chapter 17A.

DIVISION II

ENERGY DEVELOPMENT AND CONSERVATION
    Sec. 2.  Section 8A.301, Code 2011, is amended by adding the following new subsections:
   NEW SUBSECTION.  01.  “Alternative and renewable energy” means the same as in section 473.1.
   NEW SUBSECTION.  2A.  “Energy” or “energy sources” means the same as in section 473.1.
    Sec. 3.  NEW SECTION.  8A.381  Energy development and conservation —— duties —— report.
   1.  The department shall do all of the following relating to energy development and conservation:
   a.  Administer and coordinate federal funds for energy conservation, energy management, and alternative and renewable energy programs.
   b.  Administer and coordinate the building energy management program including projects funded through private financing.
   2.  The department shall submit a report by January 1 annually to the governor and the general assembly detailing services provided and assistance rendered pursuant to the building energy management program created in section 8A.383, and pursuant to sections 8A.385 and 8A.386, and regarding receipts and disbursements in relation to the building energy management fund created in section 8A.384.
    Sec. 4.  NEW SECTION.  8A.382  Energy management improvements identified and implemented.
   The state, state agencies, political subdivisions of the state, school districts, area education agencies, and community colleges may identify and implement, through energy audits and engineering analyses, all energy management improvements identified for which financing is facilitated by the department for the entity. The energy management improvement financings shall be supported through payments from energy savings.
    Sec. 5.  NEW SECTION.  8A.383  Building energy management program.
   1.  The building energy management program shall be administered by the department. The building energy management program consists of the following forms of assistance for the state, state agencies, political subdivisions of the state, school districts, area education agencies, community colleges, and nonprofit organizations:
   a.  Promoting program availability.
   b.  Developing or identifying guidelines and model energy techniques for the completion of energy analyses for state agencies, political subdivisions of the state, school districts, area education agencies, community colleges, and nonprofit organizations.
   c.  Providing technical assistance for conducting or evaluating energy analyses for state agencies, political subdivisions of the state, school districts, area education agencies, community colleges, and nonprofit organizations.
   d.  Providing or facilitating loans, leases, and other methods of alternative financing under the energy loan program for the state, state agencies, political subdivisions of the state, school districts, area education agencies, community colleges, and nonprofit organizations to implement energy management improvements or energy analyses. In providing financing under this paragraph, the department may set interest rates and fees corresponding to administrative and operational costs.
   e.  Providing assistance for obtaining insurance or a guarantee on the energy savings expected to be realized from the implementation of energy management improvements.
   f.  Facilitating and providing self-liquidating financing for the state, state agencies, political subdivisions of the state, school districts, area education agencies, community colleges, and nonprofit organizations pursuant to section 8A.386.
   g.  Assisting the treasurer of state with financing agreements entered into by the treasurer of state on behalf of state agencies to finance energy management improvements pursuant to section 12.28.
   2.  For the purpose of this section, section 8A.385, and section 8A.386, “energy management improvement” means construction, rehabilitation, acquisition, or modification of an installation in a facility or vehicle which is intended to reduce energy consumption, or energy costs, or both, or to allow the use of alternative and renewable energy. “Energy management improvement” may include control and measurement devices. “Nonprofit organization” means an organization exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code.
   3.
  a.  Moneys awarded or allocated to the state, its citizens, or its political subdivisions as a result of the federal court decisions and United States department of energy settlements resulting from alleged violations of federal petroleum pricing regulations attributable to or contained within the Stripper Well fund shall be allocated to and remain under the control of the department for utilization for energy program-related staff support purposes.
   b.  Moneys received by the state under the state energy program of the federal American Recovery and Reinvestment Act of 2009 may be utilized by the department, in addition to any other appropriations, grants, funds, or gifts received by the department, for the purposes of the building energy management program.
    Sec. 6.  NEW SECTION.  8A.384  Building energy management fund.
   1.  The building energy management fund is created within the state treasury under the control of the department. The fund shall be used for the operational expenses and administrative costs incurred by the department in facilitating and administering the building energy management program established in section 8A.383.
   2.  The building energy management fund shall consist of amounts deposited into the fund or allocated from the following sources:
   a.  Any moneys awarded or allocated to the state, its citizens, or its political subdivisions as a result of the federal court decisions and United States department of energy settlements resulting from alleged violations of federal petroleum pricing regulations attributable to or contained within the Exxon fund. Amounts remaining in the oil overcharge account established in section 455E.11, subsection 2, paragraph “e”, Code 2007, and the energy conservation trust established in section 473.11, Code 2007, as of June 30, 2008, shall be deposited into the building energy management fund pursuant to this paragraph, notwithstanding section 8.60, subsection 15, Code 2007.
   b.
  (1)  Moneys received in the form of fees imposed upon the state, state agencies, political subdivisions of the state, school districts, area education agencies, community colleges, and nonprofit organizations for services performed or assistance rendered pursuant to the building energy management program. Fees imposed pursuant to this paragraph shall be established by the department in an amount corresponding to the operational expenses or administrative costs incurred by the department in performing services or providing assistance authorized pursuant to the building energy management program, in an amount not to exceed five percent of the total project cost.
   (2)  Any fees imposed shall be retained by the department and are appropriated to the department for purposes of providing services or assistance under the program.
   c.  Moneys appropriated by the general assembly and any other moneys, including grants and gifts from government and nonprofit organizations, available to and obtained or accepted by the department for placement in the fund.
   d.  Moneys contained in the intermodal revolving loan fund administered by the department of transportation for the fiscal year beginning July 1, 2019, and succeeding fiscal years.
   e.  Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7, interest or earnings on moneys in the fund shall be credited to the fund.
   3.  The building energy management fund shall be limited to a maximum of one million dollars. Amounts in excess of this maximum limitation shall be transferred to and deposited in the rebuild Iowa infrastructure fund created in section 8.57, subsection 6.
    Sec. 7.  NEW SECTION.  8A.385  Energy loan program.
   1.  An energy loan program is established and shall be administered by the department.
   2.  The department may facilitate the loan process for political subdivisions of the state, school districts, area education agencies, community colleges, and nonprofit organizations for implementation of energy management improvements identified in an energy analysis. Loans shall be facilitated for all cost-effective energy management improvements. For political subdivisions of the state, school districts, area education agencies, community colleges, and nonprofit organizations to receive loan assistance under the program, the department shall require completion of an energy management plan including an energy analysis. The department shall approve loans facilitated under this section.
   3.
  a.  Cities and counties shall repay the loans from moneys in their debt service funds. Area education agencies shall repay the loans from any moneys available to them.
   b.  School districts and community colleges may enter into financing arrangements with the department or its duly authorized agents or representatives obligating the school district or community college to make payments on the loans beyond the current budget year of the school district or community college. Chapter 75 shall not be applicable. School districts shall repay the loans from moneys in either their general fund or debt service fund. Community colleges shall repay the loans from their general fund. Other entities receiving loans under this section shall repay the loans from any moneys available to them.
   4.  Political subdivisions of the state, school districts, area education agencies, and community colleges shall design and construct the most energy cost-effective facilities feasible and may use financing facilitated by the department to cover the incremental costs above minimum building code energy efficiency standards of purchasing energy-efficient devices and materials unless other lower cost financing is available.
   5.  The department shall not require the state, state agencies, political subdivisions of the state, school districts, area education agencies, or community colleges to implement a specific energy management improvement identified in an energy analysis if the entity that prepared the analysis demonstrates to the department that the facility which is the subject of the energy management improvement is unlikely to be used or operated for the full period of the expected savings payback of all costs associated with implementing the energy management improvement, including, without limitation, any fees or charges of the department, engineering firms, financial advisors, attorneys, and other third parties, and all financing costs including interest, if financed.
   6.  As used in this section, unless the context otherwise requires:
   a.  “Facility” means a structure that is heated or cooled by a mechanical or electrical system, or any system of physical operation that consumes energy to carry out a process.
   b.  “Loans” means loans, leases, or alternative financing arrangements.
    Sec. 8.  NEW SECTION.  8A.386  Self-liquidating financing.
   1.
  a.  The department may facilitate financing agreements that may be entered into with political subdivisions of the state, school districts, area education agencies, community colleges, or nonprofit organizations to finance the costs of energy management improvements on a self-liquidating basis. The provisions of section 8A.385 defining eligible energy management improvements apply to financings under this section.
   b.  The financing agreement may contain provisions, including interest, term, and obligations to make payments on the financing agreement beyond the current budget year, as may be acceptable to political subdivisions of the state, school districts, area education agencies, community colleges, or nonprofit organizations.
   c.  The department shall assist the treasurer of state with financing agreements entered into by the treasurer of state on behalf of state agencies pursuant to section 12.28 to finance energy management improvements being implemented by state agencies.
   2.  Political subdivisions of the state, school districts, area education agencies, community colleges, and nonprofit organizations may enter into financing agreements and issue obligations necessary to carry out the provisions of this part. Chapter 75 shall not be applicable.
    Sec. 9.  Section 12.28, subsection 6, Code 2011, is amended to read as follows:
   6.  The maximum principal amount of financing agreements which the treasurer of state can enter into shall be one million dollars per state agency in a fiscal year, subject to the requirements of section 8.46. For the fiscal year, the treasurer of state shall not enter into more than one million dollars of financing agreements per state agency, not considering interest expense. However, the treasurer of state may enter into financing agreements in excess of the one million dollar per agency per fiscal year limit if a constitutional majority of each house of the general assembly, or the legislative council if the general assembly is not in session, and the governor, authorize the treasurer of state to enter into additional financing agreements above the one million dollar authorization contained in this section. The treasurer of state shall not enter into a financing agreement for real or personal property which is to be constructed for use as a prison or prison-related facility without prior authorization by a constitutional majority of each house of the general assembly and approval by the governor of the use, location, and maximum cost, not including interest expense, of the real or personal property to be financed. However, financing agreements for an energy conservation measure, as defined in section 7D.34, for an energy management improvement, as defined in section 473.19
 
8A.383, or for costs associated with projects under section 473.13A
 
8A.382, are exempt from the provisions of this subsection, but are subject to the requirements of section 7D.34. In addition, financing agreements funded through the materials and equipment revolving fund established in section 307.47 are exempt from the provisions of this subsection.
    Sec. 10.  Section 279.53, Code 2011, is amended to read as follows:
   279.53  Loan proceeds.
   The proceeds of loans issued to school districts pursuant to section
 
8A.385, 279.48,
 
or 279.52, or 473.20 shall be deposited into either the general fund of a school district or the physical plant and equipment levy fund. The board of directors shall expend the amount of the principal and interest due each year to maturity from the same fund into which the loan proceeds were deposited.
    Sec. 11.  Section 298.3, subsection 1, paragraph g, Code Supplement 2011, is amended to read as follows:
   g.  Expenditures for energy conservation, including payments made pursuant to a guarantee furnished by a school district entering into a financing agreement for energy management improvements, limited to agreements pursuant to section 473.19, 473.20
 
8A.383, 8A.385, or 473.20A
 
8A.386.
    Sec. 12.  Section 473.7, subsections 3, 4, 5, 8, 9, and 10, Code Supplement 2011, are amended by striking the subsections.
    Sec. 13.  Section 473.15, Code Supplement 2011, is amended to read as follows:
   473.15  Annual report.
   The authority, in cooperation with the department of administrative services, shall complete an annual report to assess the progress of state agencies in implementing energy management improvements, alternative and renewable energy systems, and life cycle cost analyses under chapter 470, and on the use of renewable fuels. The authority shall work with state agencies and with any entity, agency, or organization with which they are associated or involved in such implementation, to use available information to minimize the cost of preparing the report. The authority shall also provide an assessment of the economic and environmental impact of the progress made by state agencies related to energy management and alternative and renewable energy, along with recommendations on technological opportunities and policies necessary for continued improvement in these areas.
    Sec. 14.  REPEAL.  Sections 473.13A, 473.19, 473.19A, 473.20, and 473.20A, Code Supplement 2011, are repealed.
    Sec. 15.  TRANSITION PROVISIONS —— CONTINUATION OF GRANTS.
   1.  Any moneys remaining in any account or fund under the control of the economic development authority relative to the provisions of this Act shall be transferred to the comparable fund or account under the control of the department of administrative services for such purposes. Notwithstanding section 8.33, the moneys transferred in accordance with this subsection shall not revert to the account or fund from which appropriated or transferred.
   2.  Any license, permit, or contract issued or entered into by the office of energy independence or the economic development authority relating to the provisions of this Act in effect on the effective date of this Act shall continue in full force and effect pending transfer of such licenses, permits, or contracts to the department of administrative services.
   3.  Federal funds utilized by the director of the office of energy independence or the economic development authority prior to the effective date of this Act to administer the provisions of a federal grant under the provisions of this Act shall be applicable to the department of administrative services for the same purposes.
    Sec. 16.  ADMINISTRATIVE RULES —— TRANSITION PROVISIONS.
   1.  Any rule, regulation, form, order, or directive promulgated by the economic development authority relative to the provisions of this Act in existence on the effective date of this Act shall continue in full force and effect until amended, repealed, or supplemented by affirmative action of the department of administrative services under the duties and powers established in this Act and under the procedure established in subsection 2.
   2.  In regard to updating references and format in the Iowa administrative code in order to correspond to the transferring of duties as established in this Act, the administrative rules coordinator and the administrative rules review committee, in consultation with the administrative code editor, shall jointly develop a schedule for the necessary updating of the Iowa administrative code.
EXPLANATION
   This bill concerns the duties and operations of the department of administrative services (DAS) relating to state debt collection setoff procedures and energy development and conservation.
   STATE DEBT COLLECTION SETOFF PROCEDURES. Code section 8A.504(2)(f), concerning setoff procedures, is amended to eliminate the requirement that a copy of a state agency’s notice to a person asserting a right to a payment be also provided to the collection agency. Under current law, the collection agency is DAS or any other state agency that maintains a separate accounting system and elects to establish a debt collection setoff procedure. 
   ENERGY DEVELOPMENT AND CONSERVATION. 2011 Iowa Acts, chapter 118, concerning the establishment of the economic development authority, eliminated the office of energy independence and transferred many of the duties of that office to the economic development authority, including the duties related to energy development and conservation in Code chapter 473. The bill transfers some of the duties under Code chapter 473 from the economic development authority to DAS. 
   Code section 8A.301, concerning definitions related to the physical resources duties of DAS, is amended to add references to two definitions contained in Code chapter 473 that relate to duties transferred from that Code chapter to Code chapter 8A.
   New Code section 8A.381 references the duties transferred to DAS from the economic development authority and includes a reporting requirement previously included in Code section 473.19.
   Code section 473.13A (energy management improvements identified and implemented) is repealed and the substance of the Code section transferred to new Code section 8A.382.
   Code section 473.19 (building energy management program) is repealed and the substance of the Code section transferred to new Code section 8A.383. In addition, the new Code section provides that moneys received by the state under the state energy program of the federal American Recovery and Reinvestment Act of 2009 can be used for the purpose of the program.
   Code section 473.19A (building energy management fund) is repealed and the substance of the Code section transferred to new Code section 8A.384. In addition, the new Code section provides that fees imposed by DAS for operational expenses or administrative costs incurred by DAS for a project cannot exceed 5 percent of the total project cost.
   Code section 473.20 (energy loan program) is repealed and the substance of the Code section transferred to new Code section 8A.385.
   Code section 473.20A (self-liquidating financing) is repealed and the substance of the Code section transferred to new Code section 8A.386.
   Code section 473.7, concerning the duties of the economic development authority under Code chapter 473, is amended to strike those duties transferred to DAS.
   Code section 473.15, concerning annual reports by the economic development authority, is amended to provide that the reports be done in cooperation with DAS.
   The bill also includes transition provisions so that funds impacted by this bill and previously under the control of the economic development authority are transferred to DAS and any grants, contracts, or loans entered into by the authority or the office of energy independence relative to the provisions of this bill prior to the effective date of the bill remain in force when the duties are transferred to DAS. In addition, the bill provides that any administrative rules entered into by the economic development authority relative to the duties transferred in the bill remain in effect until changed by DAS.