Senate Study Bill 3182 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON DANIELSON) A BILL FOR An Act allowing political subdivisions of this state to 1 engage in partnerships to merge certain agency operations, 2 workforces, duties, or services and providing for the 3 assignment of employees and the elimination of positions in 4 such agencies. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 6061XC (9) 84 aw/nh

S.F. _____ Section 1. NEW SECTION . 28O.1 Purpose. 1 The purpose of this chapter is to enable political 2 subdivisions in this state to consolidate the provision of 3 services or facilities with other political subdivisions in 4 this state and to cooperate in other ways of mutual advantage 5 pursuant to public agency partnerships. This chapter shall be 6 liberally construed to that end. 7 Sec. 2. NEW SECTION . 28O.2 Definitions. 8 For the purposes of this chapter: 9 1. “Assigning agency” means an agency or department of a 10 public agency dissolved by agreement between public agencies to 11 merge operations, workforces, duties, or services into a merged 12 agency. 13 2. “Merged agency” means an agency or department of a public 14 agency expanding operations, workforces, duties, or services by 15 incorporation of an assigning agency pursuant to an agreement 16 between public agencies. 17 3. “Public agency” means any political subdivision of this 18 state. 19 Sec. 3. NEW SECTION . 28O.3 Agreement with other agencies 20 —— contracts. 21 1. A public agency may enter into an agreement with one 22 or more other public agencies to merge specified operations, 23 workforces, duties, or services pursuant to the provisions of 24 this chapter. Appropriate action by ordinance, resolution, or 25 other applicable law of the governing bodies involved shall be 26 necessary before any such agreement may enter into force. 27 2. Any one or more public agencies may contract with any 28 one or more other public agencies to perform any governmental 29 service, activity, or undertaking which any of the public 30 agencies entering into the contract is authorized by law to 31 perform, provided that such contract shall be authorized by the 32 governing body of each party to the contract. Such contract 33 shall set forth fully the purposes, powers, rights, objectives, 34 and responsibilities of the contracting parties. 35 -1- LSB 6061XC (9) 84 aw/nh 1/ 9

S.F. _____ Sec. 4. NEW SECTION . 28O.4 Specifications. 1 An agreement pursuant to this chapter shall specify the 2 following: 3 1. The duration of the agreement. 4 2. The purpose or purposes of the agreement, including the 5 specific operations, workforces, duties, or services to be 6 assigned from the assigning agency to the merged agency. 7 3. The manner of financing the merged agency’s undertakings 8 and of establishing and maintaining a budget therefor, 9 including the provision of benefits to merged agency employees 10 pursuant to section 28O.9, subsections 6 and 7. 11 4. The permissible method or methods to be employed in 12 accomplishing the partial or complete termination of the 13 agreement and for disposing of property upon such partial or 14 complete termination. 15 5. The manner of acquiring, holding, and disposing of real 16 and personal property used in the merged agency’s undertakings. 17 6. Any other necessary and proper matters. 18 Sec. 5. NEW SECTION . 28O.5 Additional provisions. 19 1. An agreement pursuant to this chapter may also include 20 a provision for a joint board responsible for administering 21 the merged agency. In the case of a joint board, all public 22 agencies that are a party to the agreement shall be represented 23 on the joint board. 24 2. A joint board specified in the agreement shall be a 25 governmental body for purposes of chapter 21 and a government 26 body for purposes of chapter 22. 27 3. a. A summary of the proceedings of each regular, 28 adjourned, or special meeting of the joint board created in the 29 agreement, including the schedule of bills allowed, shall be 30 published after adjournment of the meeting in one newspaper 31 of general circulation within the geographic area served by 32 the joint board. The summary of the proceedings shall include 33 the date, time, and place the meeting was held, the members 34 present, and the actions taken at the meeting. The joint board 35 -2- LSB 6061XC (9) 84 aw/nh 2/ 9

S.F. _____ shall furnish the summary of the proceedings to be submitted 1 for publication to the newspaper within twenty days following 2 adjournment of the meeting. The publication of the schedule 3 of bills allowed shall include a list of all salaries paid for 4 services performed, showing the name of the person or firm 5 performing the service and the amount paid. The publication 6 of the schedule of bills allowed may consolidate amounts paid 7 to the same claimant if the purpose of the individual bills is 8 the same. However, the names and gross salaries of persons 9 regularly employed by the joint board shall only be published 10 annually. 11 b. A joint board which had a cash balance, including 12 investments, of less than one hundred thousand dollars at 13 the end of the previous fiscal year and which had total 14 expenditures of less than one hundred thousand dollars during 15 the prior fiscal year is not required to publish as required in 16 paragraph “a” . However, such a joint board shall file without 17 charge, in an electronic format, the information described in 18 paragraph “a” with the office of the county recorder in the most 19 populous county served by the joint board. The county recorder 20 shall make the information submitted available to the public, 21 which information shall also include access to a copy of the 22 agreement creating the joint board. 23 4. A joint board that is responsible for the operation of 24 a public facility or a public improvement may undertake the 25 emergency repair of the facility or improvement in the manner 26 provided in section 384.103, subsection 2. If an emergency 27 repair is undertaken by the joint board, the chairperson, chief 28 officer, or chief official of the joint board shall perform 29 the duties assigned to the chief officer or official of the 30 governing body of the city under section 384.103, subsection 2. 31 Sec. 6. NEW SECTION . 28O.6 Obligations not excused. 32 Except as provided in this chapter, no agreement made 33 pursuant to this chapter shall relieve any public agency of 34 any obligation or responsibility imposed upon it by law except 35 -3- LSB 6061XC (9) 84 aw/nh 3/ 9

S.F. _____ that to the extent of actual and timely performance thereof 1 by merged agency or a joint board pursuant to an agreement 2 made under this chapter, such performance may be offered in 3 satisfaction of the obligation or responsibility. 4 Sec. 7. NEW SECTION . 28O.7 Filing with secretary of state. 5 1. a. Before entry into force, an agreement made pursuant 6 to this chapter shall be filed, in an electronic format, with 7 the secretary of state in a manner specified by the secretary 8 of state. 9 b. Any amendment, modification, or notice of termination of 10 an agreement made pursuant to this chapter shall be filed, in 11 an electronic format, with the secretary of state within thirty 12 days of the effective date of the amendment, modification, or 13 termination, in a manner specified by the secretary of state. 14 2. a. In addition to subsection 1, each joint board 15 subject to section 28O.5, subsection 1, shall submit, in an 16 electronic format, an initial report to the secretary of state 17 as prescribed by the secretary of state. The report shall 18 include, as applicable, the board members of any joint board 19 created, whether the joint board is exempt from the publication 20 requirements of section 28O.5, subsection 3, a valid electronic 21 mail address, and any additional information the secretary of 22 state deems appropriate. 23 b. Following submission of an initial report pursuant to 24 paragraph “a” , each joint board shall submit, in an electronic 25 format, a biennial report to the secretary of state in a manner 26 prescribed by the secretary of state by April 1 of every 27 odd-numbered year. 28 Sec. 8. NEW SECTION . 28O.8 Agency to furnish aid. 29 An assigning agency may appropriate funds and may sell, 30 lease, give, or otherwise supply the merged agency to combine 31 the operations, workforces, duties, or services of such public 32 agencies by providing such personnel or services therefor as 33 may be within its legal power to furnish. 34 Sec. 9. NEW SECTION . 28O.9 Authority to assign employees. 35 -4- LSB 6061XC (9) 84 aw/nh 4/ 9

S.F. _____ 1. Any department, agency, or instrumentality of a public 1 agency may participate in a program of assignment of employees 2 with departments, agencies, or instrumentalities of any other 3 public agency as an assigning agency or as a merged agency 4 pursuant to an agreement entered into under this chapter. 5 2. The assigning agency and the merged agency shall agree 6 to the assignment of employees. Such an agreement shall be 7 for the permanent assignment of employees from the assigning 8 agency to the merged agency unless such agreement is terminated 9 pursuant to the terms of the agreement. 10 3. An assigning agency and a merged agency shall make 11 reasonable efforts to place employees of an assigning agency 12 in comparable employment upon dissolution of an assigning 13 agency. No employee shall be assigned or detailed without the 14 employee’s expressed consent or by using undue coercion to 15 obtain such consent. 16 4. Elected officials shall not be assigned from an assigning 17 agency nor detailed to a merged agency. 18 5. An employee being permanently assigned to a merged agency 19 shall not be subject to the provisions of section 400.8 if the 20 employee meets minimum job qualifications for an open position 21 to which the employee is being assigned at the merged agency. 22 6. An employee being permanently assigned to a merged agency 23 shall: 24 a. Be placed on the payroll of the merged agency at a job 25 classification determined by the merged agency, but shall, at 26 a minimum, maintain the salary earned by the employee at the 27 assigning agency at the time of being assigned to the merged 28 agency. 29 b. Be allowed to maintain the rank or position earned by the 30 employee at the assigning agency if a job of equivalent rank or 31 position is available at the merged agency. 32 c. Upon assignment to a merged agency be assigned a 33 seniority classification based upon the period of employment 34 with the assigning agency. 35 -5- LSB 6061XC (9) 84 aw/nh 5/ 9

S.F. _____ d. Upon assignment to a merged agency, be credited with any 1 unexpended benefit time, including but not limited to vacation, 2 holiday, and sick leave, accrued in the course of employment 3 with the assigning agency. 4 e. Except as otherwise provided in this section, upon 5 assignment to a merged agency, be subject to the personnel 6 policies and collective bargaining agreements of that merged 7 agency. 8 7. An employee being permanently assigned to a merged agency 9 shall, at the time of being assigned, either elect to maintain 10 participation in the benefit programs offered to employees of 11 the assigning agency until the time of the termination of the 12 employee’s employment with the merged agency or elect to enroll 13 in the benefit programs offered to employees of the merged 14 agency. 15 8. a. An assigning agency or merged agency may eliminate 16 positions in order to merge operations, workforces, duties, or 17 services. 18 b. An assigning agency or a merged agency that eliminates a 19 position pursuant to this subsection may provide an employee 20 whose position is eliminated with severance payments not to 21 exceed eight weeks of salary. Such an agency may also provide 22 for the extension of health benefits for a period not to exceed 23 eight weeks. The provision of payments and benefits under this 24 paragraph shall be subject to negotiation with the employee or 25 with the employee’s labor bargaining unit where appropriate. 26 c. The elimination of any position pursuant to this 27 subsection shall not constitute outsourcing or privatization. 28 9. Details relating to any matter subject to this section 29 shall be the subject of an agreement between the assigning and 30 merged agencies. 31 Sec. 10. NEW SECTION . 28O.10 Powers are additional to 32 others. 33 The powers granted by this chapter shall be in addition 34 to any specific grant for intergovernmental agreements and 35 -6- LSB 6061XC (9) 84 aw/nh 6/ 9

S.F. _____ contracts. 1 Sec. 11. NEW SECTION . 28O.11 No limitation on contract. 2 Any contract or agreement authorized by this chapter shall 3 not be limited as to period of existence, except as may be 4 limited by the agreement or contract itself. 5 Sec. 12. Section 400.8, Code 2011, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 4. This section shall not apply to the 8 assignment of employees conducted pursuant to section 28O.8. 9 EXPLANATION 10 This bill allows political subdivisions of this state to 11 engage in partnerships to merge certain agency operations, 12 workforces, duties, or services and provides for the assignment 13 of employees and the elimination of positions in such agencies. 14 The bill allows political subdivisions of this state to 15 enter into public agency agreements to merge operations, 16 workforces, duties, or services. 17 The bill provides that a public agency may enter into 18 contracts with any one or more other public agencies to perform 19 any governmental service, activity, or undertaking that the 20 public agency is authorized by law to perform. 21 The bill provides that “assigning agency” means an agency 22 or department of a political subdivision that is dissolved by 23 agreement to merge operations, workforces, duties, or services 24 into a merged agency. The bill provides that “merged agency” 25 means an agency or department of a political subdivision 26 that expands operations, workforces, duties, or services by 27 incorporation of an assigning agency. 28 The bill requires that the governing bodies of the political 29 subdivisions adopt such an agreement by appropriate legal 30 action before an agreement may enter into force. 31 The bill requires that such an agreement specify the 32 duration of the agreement, the purpose or purposes of the 33 agreement, the manner of financing, the means by which the 34 agreement may be partially or completely terminated, and the 35 -7- LSB 6061XC (9) 84 aw/nh 7/ 9

S.F. _____ manner of acquiring, holding, and disposing of property along 1 with any other necessary and proper matters. 2 The bill allows the agreement to provide for the operation of 3 a joint administration board subject to certain open meeting 4 and public record requirements for the merged agency. The bill 5 also provides for certain emergency repairs authorized by a 6 joint board. 7 The bill requires that any such agreement be filed with 8 the secretary of state in an electronic format along with 9 any subsequent amendments, modifications, or notices of 10 termination. The bill provides for separate reporting 11 requirements to the secretary of state for independent merged 12 agencies and merged agencies with joint boards. 13 The bill provides that an assigning agency may appropriate 14 funds and may sell, lease, give, or otherwise supply the merged 15 agency. 16 The bill provides that any department, agency, or 17 instrumentality of a political subdivision of this state 18 is authorized to participate in a program of assignment of 19 employees with departments, agencies, or instrumentalities 20 of any other political subdivision of this state as an 21 assigning agency or as a merged agency. The bill requires 22 that an assigning agency and a merged agency agree to such 23 assignment of employees and that an employee give consent to 24 such assignment. The bill provides that an elected official 25 shall not be assigned from an assigning agency nor detailed 26 to a merged agency. The bill provides that an employee 27 permanently assigned to a merged agency who meets minimum job 28 qualifications for an open position shall not be subject to the 29 civil service examination and appointment requirements of Code 30 section 400.8. 31 The bill requires that an employee being permanently 32 assigned to a merged agency shall be placed on the payroll 33 of the new merged agency at a job classification determined 34 by the merged agency, but shall, at a minimum, maintain the 35 -8- LSB 6061XC (9) 84 aw/nh 8/ 9

S.F. _____ salary earned by the employee at the assigning agency. The 1 bill requires that such an employee be allowed to maintain the 2 employee’s rank or position if a job of equivalent rank or 3 position is available at the merged agency. The bill requires 4 that such an employee be assigned a seniority rank by the 5 merged agency based upon the employee’s period of employment 6 with the assigning agency and credited with any unexpended 7 benefits accrued during employment with the assigning agency. 8 The bill also requires that, except as otherwise provided, 9 any such employee be subject to the personnel policies and 10 collective bargaining agreements of the merged agency. The 11 bill also requires such an employee to elect whether to 12 maintain participation in the benefits programs offered by the 13 assigning agency or elect to enroll in the benefits programs 14 offered to employees of the merged agency. 15 The bill allows an assigning agency or a merged agency to 16 eliminate positions in order to merge operations, workforces, 17 duties, or services. The bill also provides that an assigning 18 agency or merged agency may provide certain severance payments 19 or benefits to an employee whose position is eliminated. Such 20 severance shall be subject to negotiation with the employee or 21 with the employee’s labor bargaining unit where appropriate. 22 The bill provides that any such elimination of a position shall 23 not constitute outsourcing or privatization. 24 The bill requires that details related to the assignment of 25 employees be subject to agreement between an assigning agency 26 and a merged agency. 27 The bill provides that the powers granted pursuant to the 28 bill are additional to any specific grant for intergovernmental 29 agreements and contracts. 30 -9- LSB 6061XC (9) 84 aw/nh 9/ 9