S.F. 2235 DIVISION I 1 REPORTING AND DEPARTMENT OF ADMINISTRATIVE 2 SERVICES OPERATIONS 3 Section 1. Section 7A.3, subsection 2, Code 2014, is amended 4 by striking the subsection. 5 Sec. 2. Section 8A.110, subsection 5, Code 2014, is amended 6 by striking the subsection. 7 Sec. 3. Section 8A.111, subsection 2, Code 2014, is amended 8 to read as follows: 9 2. Internal service fund service business plans and 10 financial reports as required under section 8A.123, subsection 11 5 , paragraph “a” , and an An annual internal service fund 12 expenditure report as required under section 8A.123, subsection 13 5 , paragraph “b” . 14 Sec. 4. Section 8A.111, subsections 5 and 11, Code 2014, are 15 amended by striking the subsections. 16 Sec. 5. Section 8A.123, subsection 5, paragraph a, Code 17 2014, is amended by striking the paragraph. 18 Sec. 6. Section 8A.315, subsection 2, Code 2014, is amended 19 by adding the following new paragraph: 20 NEW PARAGRAPH . e. Notwithstanding the requirements of this 21 subsection regarding the purchase of recycled printing and 22 writing paper, the department may purchase printing and writing 23 paper in lieu of recycled paper if the department determines 24 that the purchase will result in significant savings to the 25 state. 26 Sec. 7. Section 8A.321, subsection 6, paragraph c, 27 subparagraph (1), Code 2014, is amended to read as follows: 28 (1) The department shall annually issue a request for 29 proposals for leasing privately owned office space for state 30 employees in the downtown area of the city of Des Moines. 31 Prior to replacing or renovating publicly owned buildings or 32 relocating any state agencies at the seat of government to 33 any space in publicly owned buildings, the department shall 34 issue a request for proposals for leasing privately owned 35 -1- LSB 5239SV (2) 85 ec/sc 1/ 14

S.F. 2235 office space for state employees in the downtown area of the 1 city of Des Moines and shall use such proposals to compare the 2 costs of privately owned space to publicly owned space. The 3 department shall locate state employees in office space in 4 the most cost-efficient manner possible. In determining cost 5 efficiency, the department shall consider all costs of the 6 publicly owned space, the costs of the original acquisition 7 of the publicly owned space, the costs of tenant improvements 8 to the publicly owned space, and the anticipated economic and 9 useful life of the publicly owned building space. 10 Sec. 8. Section 8A.362, subsection 4, paragraph c, Code 11 2014, is amended by striking the paragraph. 12 Sec. 9. Section 8A.378, unnumbered paragraph 3, Code 2014, 13 is amended to read as follows: 14 The department shall negotiate implementation of the plan 15 with the city of Des Moines with the goal of entering into 16 a memorandum of understanding in relation to the plan. The 17 department shall provide the governor and the capitol planning 18 commission with quarterly reports regarding progress made 19 on the capitol view preservation plan and execution of the 20 memorandum of understanding. 21 Sec. 10. Section 8A.504, subsection 1, paragraphs a, b, and 22 d, Code 2014, are amended to read as follows: 23 a. “Collection entity” means the department of 24 administrative services and any other state public agency that 25 maintains a separate accounting system and elects to establish 26 a debt collection setoff procedure for collection of debts owed 27 to the state or its agencies public agency . 28 b. “Person” does not include a state public agency. 29 d. “State “Public agency” means a board, commission, 30 department, including the department of administrative 31 services, or other administrative office or unit of the 32 state of Iowa or any other state entity reported in the 33 Iowa comprehensive annual financial report, or a political 34 subdivision of the state, or an office or unit of a political 35 -2- LSB 5239SV (2) 85 ec/sc 2/ 14

S.F. 2235 subdivision. “State “Public agency” does include the clerk 1 of the district court as it relates to the collection of a 2 qualifying debt. “State “Public agency” does not include the 3 general assembly or the governor. 4 Sec. 11. Section 8A.504, subsections 2, 3, and 5, Code 2014, 5 are amended to read as follows: 6 2. Setoff procedure. The collection entity shall establish 7 and maintain a procedure to set off against any claim owed to a 8 person by a state public agency any liability of that person 9 owed to a state public agency, a support debt being enforced 10 by the child support recovery unit pursuant to chapter 252B , 11 or such other qualifying debt. The procedure shall only apply 12 when at the discretion of the director it is feasible. The 13 procedure shall meet the following conditions: 14 a. Before setoff, a person’s liability to a state public 15 agency and the person’s claim on a state public agency shall be 16 in the form of a liquidated sum due, owing, and payable. 17 b. Before setoff, the state public agency shall obtain 18 and forward to the collection entity the full name and social 19 security number of the person liable to it or to whom a claim is 20 owing who is a natural person. If the person is not a natural 21 person, before setoff, the state public agency shall forward to 22 the collection entity the information concerning the person as 23 the collection entity shall, by rule, require. The collection 24 entity shall cooperate with other state public agencies in 25 the exchange of information relevant to the identification 26 of persons liable to or claimants of state public agencies. 27 However, the collection entity shall provide only relevant 28 information required by a state public agency. The information 29 shall be held in confidence and used for the purpose of setoff 30 only. Section 422.72, subsection 1 , does not apply to this 31 paragraph. 32 c. Before setoff, a state public agency shall, at least 33 annually, submit to the collection entity the information 34 required by paragraph “b” along with the amount of each person’s 35 -3- LSB 5239SV (2) 85 ec/sc 3/ 14

S.F. 2235 liability to and the amount of each claim on the state public 1 agency. The collection entity may, by rule, require more 2 frequent submissions. 3 d. Before setoff, the amount of a person’s claim on a state 4 public agency and the amount of a person’s liability to a state 5 public agency shall constitute a minimum amount set by rule of 6 the collection entity. 7 e. Upon submission of an allegation of liability by a state 8 public agency, the collection entity shall notify the state 9 public agency whether the person allegedly liable is entitled 10 to payment from a state public agency, and, if so entitled, 11 shall notify the state public agency of the amount of the 12 person’s entitlement and of the person’s last address known to 13 the collection entity. Section 422.72, subsection 1 , does not 14 apply to this paragraph. 15 f. (1) Upon notice of entitlement to a payment, the 16 state public agency shall send written notification to that 17 person of the state public agency’s assertion of its rights 18 to all or a portion of the payment and of the state public 19 agency’s entitlement to recover the liability through the 20 setoff procedure, the basis of the assertion, the opportunity 21 to request that a jointly or commonly owned right to payment 22 be divided among owners, and the person’s opportunity to 23 give written notice of intent to contest the amount of the 24 allegation. The state agency shall send a copy of the notice 25 to the collection entity. A public agency shall provide the 26 person with an opportunity to contest the liability. A state 27 public agency subject to chapter 17A shall give notice, conduct 28 hearings, and allow appeals in conformity with chapter 17A . 29 (2) However, upon submission of an allegation of the 30 liability of a person which is owing and payable to the 31 clerk of the district court and upon the determination by the 32 collection entity that the person allegedly liable is entitled 33 to payment from a state public agency, the collection entity 34 shall send written notification to the person which states the 35 -4- LSB 5239SV (2) 85 ec/sc 4/ 14

S.F. 2235 assertion by the clerk of the district court of rights to all 1 or a portion of the payment, the clerk’s entitlement to recover 2 the liability through the setoff procedure, the basis of the 3 assertions, the person’s opportunity to request within fifteen 4 days of the mailing of the notice that the collection entity 5 divide a jointly or commonly owned right to payment between 6 owners, the opportunity to contest the liability to the clerk 7 by written application to the clerk within fifteen days of the 8 mailing of the notice, and the person’s opportunity to contest 9 the collection entity’s setoff procedure. 10 g. Upon the timely request of a person liable to a state 11 public agency or of the spouse of that person and upon receipt 12 of the full name and social security number of the person’s 13 spouse, a state public agency shall notify the collection 14 entity of the request to divide a jointly or commonly owned 15 right to payment. Any jointly or commonly owned right to 16 payment is rebuttably presumed to be owned in equal portions 17 by its joint or common owners. 18 h. The collection entity shall, after the state public 19 agency has sent notice to the person liable or, if the 20 liability is owing and payable to the clerk of the district 21 court, the collection entity has sent notice to the person 22 liable, set off the amount owed to the agency against any 23 amount which a state public agency owes that person. The 24 collection entity shall refund any balance of the amount to 25 the person. The collection entity shall periodically transfer 26 amounts set off to the state public agencies entitled to them. 27 If a person liable to a state public agency gives written 28 notice of intent to contest an allegation, a state public 29 agency shall hold a refund or rebate until final disposition 30 of the allegation. Upon completion of the setoff, a state 31 public agency shall notify in writing the person who was liable 32 or, if the liability is owing and payable to the clerk of the 33 district court, shall comply with the procedures as provided 34 in paragraph “j” . 35 -5- LSB 5239SV (2) 85 ec/sc 5/ 14

S.F. 2235 i. The department of revenue’s existing right to credit 1 against tax due or to become due under section 422.73 is not to 2 be impaired by a right granted to or a duty imposed upon the 3 collection entity or other state public agency by this section . 4 This section is not intended to impose upon the collection 5 entity or the department of revenue any additional requirement 6 of notice, hearing, or appeal concerning the right to credit 7 against tax due under section 422.73 . 8 j. If the alleged liability is owing and payable to the 9 clerk of the district court and setoff as provided in this 10 section is sought, all of the following shall apply: 11 (1) The judicial branch shall prescribe procedures to 12 permit a person to contest the amount of the person’s liability 13 to the clerk of the district court. 14 (2) The collection entity shall, except for the procedures 15 described in subparagraph (1), prescribe any other applicable 16 procedures concerning setoff as provided in this subsection . 17 (3) Upon completion of the setoff, the collection entity 18 shall file, at least monthly, with the clerk of the district 19 court a notice of satisfaction of each obligation to the 20 full extent of all moneys collected in satisfaction of the 21 obligation. The clerk shall record the notice and enter a 22 satisfaction for the amounts collected and a separate written 23 notice is not required. 24 k. If the alleged liability is owing and payable to a 25 community college and setoff pursuant to this section is 26 sought, both of the following shall apply: 27 (1) In addition to satisfying other applicable setoff 28 procedures established under this subsection , the community 29 college shall prescribe procedures to permit a person to 30 contest the amount of the person’s liability to the community 31 college. Such procedures shall be consistent with and ensure 32 the protection of the person’s right of due process under Iowa 33 law. 34 (2) The collection entity shall, except for the procedures 35 -6- LSB 5239SV (2) 85 ec/sc 6/ 14

S.F. 2235 prescribed pursuant to subparagraph (1), prescribe any other 1 applicable procedures concerning setoff as provided in this 2 subsection . 3 3. In the case of multiple claims to payments filed under 4 this section , priority shall be given to claims filed by the 5 child support recovery unit or the foster care recovery unit, 6 next priority shall be given to claims filed by the clerk of 7 the district court, next priority shall be given to claims 8 filed by the college student aid commission, next priority 9 shall be given to claims filed by the investigations division 10 of the department of inspections and appeals, and last priority 11 shall be given to claims filed by other state public agencies. 12 In the case of multiple claims in which the priority is not 13 otherwise provided by this subsection , priority shall be 14 determined in accordance with rules to be established by the 15 director. 16 5. Under substantive rules established by the director, the 17 department shall seek reimbursement from other state public 18 agencies to recover its costs for setting off liabilities. 19 Sec. 12. Section 8B.9, subsection 2, Code 2014, is amended 20 to read as follows: 21 2. Internal service fund service business plans and 22 financial reports as required under section 8B.13, subsection 23 5 , paragraph “a” , and an An annual internal service fund 24 expenditure report as required under section 8B.13, subsection 25 5 , paragraph “b” . 26 Sec. 13. Section 8B.13, subsection 5, paragraph a, Code 27 2014, is amended by striking the paragraph. 28 Sec. 14. Section 70A.25, subsection 3, Code 2014, is amended 29 by striking the subsection. 30 Sec. 15. Section 99D.2, subsection 3, Code 2014, is amended 31 to read as follows: 32 3. “Claimant agency” means a state public agency as 33 defined in section 8A.504, subsection 1 , or the state court 34 administrator as defined in section 602.1101 . 35 -7- LSB 5239SV (2) 85 ec/sc 7/ 14

S.F. 2235 Sec. 16. Section 99F.1, subsection 4, Code 2014, is amended 1 to read as follows: 2 4. “Claimant agency” means a state public agency as 3 defined in section 8A.504, subsection 1 , or the state court 4 administrator as defined in section 602.1101 . 5 Sec. 17. 2003 Iowa Acts, chapter 179, section 21, unnumbered 6 paragraph 4, as amended and redesignated as subsection 6, by 7 2005 Iowa Acts, chapter 161, section 1, is amended to read as 8 follows: 9 6. The department or agency receiving funds under this 10 section shall report monthly to the fiscal committee of the 11 legislative council on the use of the funds. 12 Sec. 18. REPEAL. Section 8D.10, Code 2014, is repealed. 13 DIVISION II 14 SERVICE CONTRACTS 15 Sec. 19. Section 8.47, subsection 1, unnumbered paragraph 16 1, Code 2014, is amended to read as follows: 17 The department of administrative services, in cooperation 18 with the office of attorney general and the department of 19 management, shall adopt uniform terms and conditions for 20 service contracts executed by a department or establishment 21 benefiting from service contracts which terms and conditions 22 shall be consistent with the contractual requirements of 23 chapter 8F . The terms and conditions shall include but are not 24 limited to all of the following: 25 Sec. 20. Section 8F.3, subsection 3, Code 2014, is amended 26 to read as follows: 27 3. Prior to entering into a service contract with a 28 recipient entity, the oversight agency shall determine do all 29 of the following: 30 a. Determine whether the recipient entity can reasonably 31 be expected to comply with the requirements of the service 32 contract. If the oversight entity is unable to determine 33 whether the recipient entity can reasonably be expected 34 to comply with the requirements of the service contract, 35 -8- LSB 5239SV (2) 85 ec/sc 8/ 14

S.F. 2235 the oversight entity shall request such information from 1 the recipient entity as described in subsection 1 to make 2 a determination. If the oversight agency determines from 3 the information provided that the recipient entity cannot 4 reasonably be expected to comply with the requirements of the 5 service contract, the oversight agency shall not enter into the 6 service contract. 7 b. Perform a cost comparison establishing whether the 8 contract costs from the proposed service contract are less 9 than the costs of having the services provided by an agency. 10 Contract costs shall include direct costs, including salaries 11 and fringe benefits, indirect overhead costs, including the 12 contractor’s proportional share of existing administrative 13 salaries and benefits, rent and equipment costs, utilities, 14 and materials. Additionally, transition costs, including 15 unemployment compensation, shall be included in the analysis of 16 contract costs. If the oversight agency determines from the 17 information provided that the contract costs of the recipient 18 entity are not less than the costs of having the services 19 provided by an agency, the oversight agency shall not enter 20 into the service contract. 21 c. If the proposed service contract may result in reduced 22 public employment by an agency in an area, perform an 23 economic impact analysis to consider the impact of the service 24 contract on the possible loss of employment or income in the 25 affected area, impact on social services to include public 26 assistance programs, economic impact on local businesses, any 27 possible changes in tax revenue for the affected area, and 28 any environmental impacts that may result from the service 29 contract. 30 Sec. 21. Section 8F.3, Code 2014, is amended by adding the 31 following new subsection: 32 NEW SUBSECTION . 4. A service contract with a recipient 33 entity shall include the following terms and conditions: 34 a. Specific performance criteria and cost parameters with 35 -9- LSB 5239SV (2) 85 ec/sc 9/ 14

S.F. 2235 termination provisions for failure to meet the performance 1 criteria and cost parameters. 2 b. A requirement that the compensation paid to employees 3 of a recipient entity pursuant to the service contract shall 4 be comparable to the compensation paid to public employees 5 performing similar work or the average private sector wage for 6 similar work, whichever is less. 7 c. A provision prohibiting the automatic renewal of 8 the terms of a service contract without complying with the 9 requirements of this section prior to renewing the service 10 contract. 11 d. A provision prohibiting the payment for services under 12 the service contract regardless of whether the services are 13 actually provided. 14 Sec. 22. Section 8F.4, Code 2014, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 4. An oversight agency shall make 17 information described in section 8F.3, subsection 3, paragraphs 18 “b” and “c” , and information required to be reported by a 19 recipient agency pursuant to this section available to the 20 public. 21 Sec. 23. Section 8G.3, subsection 3, paragraph a, Code 2014, 22 is amended by adding the following new subparagraph: 23 NEW SUBPARAGRAPH . (10) A recipient entity as defined in 24 section 8F.2. 25 Sec. 24. Section 8G.4, subsection 2, Code 2014, is amended 26 by adding the following new paragraph: 27 NEW PARAGRAPH . 0j. Information required to be provided 28 pursuant to chapter 8F. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 This bill concerns government accountability and includes 33 provisions relating to service contracts, state government 34 reporting requirements, and the department of administrative 35 -10- LSB 5239SV (2) 85 ec/sc 10/ 14

S.F. 2235 services. 1 Division I of this bill concerns various reporting and other 2 time-specific or purchasing requirements applicable to the 3 department of administrative services (DAS) and other state 4 agencies. 5 Code section 7A.3, providing for biennial reports for 6 various state officials and departments, is amended by striking 7 the requirement that the officials and departments covered by 8 this Code section also file a summary report in the year the 9 biennial report is not required. 10 Code section 8A.110, concerning the state employee 11 suggestion system, is amended by striking the requirement that 12 each state agency keep a record of suggestions implemented for 13 up to one year and the requirement that the DAS director file 14 a report with the governor and the general assembly on the 15 program each fiscal year. 16 Code section 8A.123, concerning department internal service 17 funds, is amended by striking the requirement that the DAS 18 director annually provide internal service fund service 19 business plans and financial reports to the department of 20 management and the general assembly. Code section 8A.111, 21 concerning DAS reporting requirements, is also amended to 22 conform to this change. 23 Code section 8A.315, concerning the purchase of recycled 24 products, is amended to allow the department of administrative 25 services to purchase nonrecycled printing and writing paper if 26 the purchase will result in significant savings to the state. 27 Code section 8A.321, concerning physical resources and 28 facility management, is amended to remove the requirement 29 that DAS annually issue a request for proposals for leasing 30 privately owned office space for state employees in the 31 downtown area of the city of Des Moines. Instead, the bill 32 provides that DAS will issue the request for proposals when 33 considering replacing or renovating publicly owned buildings or 34 relocating any state agencies at the seat of government to any 35 -11- LSB 5239SV (2) 85 ec/sc 11/ 14

S.F. 2235 space in publicly owned buildings. 1 Code section 8A.362, concerning fleet management, is amended 2 to eliminate the requirement that the DAS director submit an 3 annual corporate average fuel economy standards compliance 4 report to the economic development authority. Code section 5 8A.111, concerning DAS reporting requirements, is also amended 6 to conform to this change. 7 Code section 8A.378, concerning state capitol view 8 preservation, is amended to delete the requirement that 9 DAS provide quarterly reports relative to the capitol view 10 preservation plan to the governor and the capitol planning 11 commission. 12 Code section 8A.504, concerning setoff procedures, is 13 amended to eliminate the requirement that the state agency 14 asserting a setoff payment against a person send a copy of the 15 notice sent to that person to DAS or other state agency that 16 has established a debt collection setoff procedure. The Code 17 section is also amended to provide that all public agencies 18 eligible to use the setoff procedures shall provide the debtor 19 with an opportunity to contest the liability. Finally, the 20 bill redesignates the term as “public agency” rather than the 21 current “state agency” in Code section 8A.504 while keeping the 22 definition the same and makes changes to other Code provisions 23 reflecting the redesignated term. 24 Code section 8B.13, concerning internal service funds, is 25 amended by striking the requirement that the chief information 26 officer annually provide internal service fund service business 27 plans and financial reports to the department of management and 28 the general assembly. Code section 8B.9, concerning reporting 29 requirements, is also amended to conform to this change. 30 Code section 70A.25, concerning educational leave, is 31 amended to eliminate the reporting and review requirements 32 relative to the program contained within that Code section. 33 2003 Iowa Acts, chapter 179, section 21, as amended in 2004 34 and 2005, concerning an appropriation related to military pay 35 -12- LSB 5239SV (2) 85 ec/sc 12/ 14

S.F. 2235 differential, is amended to eliminate the requirement that each 1 department or agency receiving funds from this appropriation 2 report monthly to the fiscal committee of the legislative 3 council on the use of the funds. 4 Code section 8D.10, concerning report of savings by state 5 agencies concerning their use of the Iowa communications 6 network, is repealed. 7 Division II of this bill concerns service contracts entered 8 into by a government entity. 9 Code section 8.47, concerning service contracts entered into 10 by a state executive branch department, is amended to provide 11 that the standard terms and conditions of a service contract 12 shall be consistent with the contractual requirements of Code 13 chapter 8F. 14 Code chapter 8F, establishing accountability requirements 15 for certain service contracts, is amended. “Service contract” 16 is defined by the Code chapter as a contract between a 17 government entity, called an oversight agency, and a private 18 or other intergovernmental entity, called a recipient entity, 19 where federal or state moneys are involved for a service or 20 services when the predominant factor, thrust, and purpose of 21 the contract as reasonably stated is for the provision of 22 services. 23 Code section 8F.3, subsection 3, concerning contractual 24 requirements for service contracts, is amended to require an 25 oversight agency to perform a cost comparison and an economic 26 impact analysis prior to entering into a service contract. 27 The cost comparison requires a determination that a service 28 contract will result in lower contract costs than having the 29 services provided by state government. The economic impact 30 analysis concerns a determination of the impact on employment, 31 economic activity, and public assistance if public employment 32 in a particular area is reduced pursuant to a service contract. 33 Code section 8F.3 is further amended to require a service 34 contract to include performance criteria, provisions governing 35 -13- LSB 5239SV (2) 85 ec/sc 13/ 14

S.F. 2235 compensation paid to employees of a recipient entity, 1 provisions prohibiting automatic renewal of a service contract, 2 and provisions prohibiting payment regardless of whether the 3 services are actually provided. 4 Code section 8F.4, concerning reporting requirements, 5 is amended to require an oversight agency to make certain 6 information described in Code section 8F.3, subsection 3, and 7 information required to be reported by a recipient agency 8 pursuant to this Code section available to the public. 9 Code chapter 8G, establishing the taxpayer transparency 10 Act, is amended to specifically include recipient entities, 11 as defined in Code chapter 8F, within the definition of 12 “entity” for purposes of the Code chapter. Code section 13 8G.4, concerning the creation of a searchable budget database 14 internet site, is amended to require that information required 15 to be provided pursuant to Code chapter 8F be included on the 16 site. 17 -14- LSB 5239SV (2) 85 ec/sc 14/ 14