H.F. 220 Section 1. NEW SECTION . 16.230 Recovery of certain athletic 1 association penalties —— account. 2 1. For purposes of this section, “athletic association” 3 means the national collegiate athletic association or an 4 affiliated athletic conference. 5 2. a. A postsecondary institution in this state that is 6 subject to a monetary penalty by an athletic association which 7 penalty directly resulted from the actions of an individual 8 employed by the institution and that has exhausted all appeals 9 or other remedies to which the institution is entitled under 10 athletic association rules and procedures or made a binding 11 decision not to pursue further appeals or other remedies shall 12 submit documentation of all of the following information to the 13 authority: 14 (1) The imposition of the penalty. 15 (2) The amount of the penalty. 16 (3) The exhaustion of or binding decision not to pursue all 17 appeals or other remedies to which the institution is entitled 18 under athletic association rules and procedures. 19 (4) The name and contact information of the individual whose 20 actions directly resulted in the imposition of the penalty. 21 (5) The underlying circumstances that resulted in 22 imposition of the penalty. 23 b. The authority may request that the institution submit 24 additional documentation sufficient for the authority to verify 25 all of the information required under paragraph “a” . The 26 authority may take other appropriate actions necessary to 27 verify the information required under paragraph “a” . 28 3. If, after the procedures provided in subsection 1 have 29 been completed, the authority determines by a preponderance of 30 the evidence that a postsecondary institution in this state 31 has been subject to a monetary penalty imposed by an athletic 32 association which penalty directly resulted from the actions 33 of an individual employed by the institution and that the 34 institution has exhausted all appeals or other remedies to 35 -1- LSB 1679YH (5) 86 je/sc 1/ 5

H.F. 220 which the institution is entitled under athletic association 1 rules and procedures or has made a binding decision not to 2 pursue further appeals or other remedies, the authority shall 3 assess a civil penalty on the individual in the amount of the 4 monetary penalty imposed on the institution. 5 4. The authority shall notify the individual of the 6 authority’s determination and the proposed civil penalty by 7 service by both regular mail and certified mail. If within ten 8 working days from receipt of the first notice the individual 9 fails to notify the authority that the individual intends 10 to contest the authority’s determination or the proposed 11 assessment, the penalty, as proposed, shall be deemed final 12 agency action for purposes of judicial review. Judicial review 13 of final agency action pursuant to this section may be sought 14 in accordance with the terms of section 17A.19. A contest of 15 the authority’s determination or the proposed assessment of the 16 civil penalty and any further appeal shall be conducted as a 17 contested case proceeding under chapter 17A. 18 5. After the time for seeking judicial review has expired 19 or after all judicial review has been exhausted and the 20 authority’s determination and proposed assessment have been 21 upheld, if the individual does not pay the civil penalty to the 22 authority in full within ten working days, the authority shall 23 commence an action in district court to enforce payment of the 24 civil penalty or may seek to collect payment pursuant to the 25 setoff program as provided in section 8A.504. 26 6. The authority shall deposit all civil penalties 27 recovered pursuant to this section in the recovery account 28 established by this section. 29 7. Upon deposit of a civil penalty recovered pursuant 30 to this section in the recovery account established by this 31 section, the authority shall promptly notify the postsecondary 32 institution on which a monetary penalty was imposed by an 33 athletic association which penalty directly resulted from the 34 actions of the individual from whom the civil penalty was 35 -2- LSB 1679YH (5) 86 je/sc 2/ 5

H.F. 220 recovered that the civil penalty was successfully recovered. 1 The institution shall designate in writing to the authority a 2 means of transferring the funds. The authority upon receiving 3 such notification shall transfer from the recovery account to 4 the institution an amount equal to the monetary penalty imposed 5 on the institution. The authority shall transfer the funds to 6 the institution by the means designated. The authority shall 7 adopt rules pursuant to chapter 17A providing for procedures 8 for accounting of funds and transferring funds, including 9 acceptable means of transferring funds that an institution may 10 designate. 11 8. A recovery account is established within the authority 12 for the uses permitted by this section. The authority shall 13 administer the account. 14 9. The authority shall describe its activities pursuant 15 to this section in its annual report to the governor and the 16 general assembly pursuant to section 16.7. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill requires a postsecondary institution in this 21 state that is subject to a monetary penalty by the national 22 collegiate athletic association (NCAA) or an affiliated 23 athletic conference, which penalty directly resulted from the 24 actions of an individual employed by the institution, if the 25 institution has exhausted all appeals or other remedies to 26 which the institution is entitled under NCAA or conference 27 rules and procedures or has made a binding decision not 28 to pursue further appeals or other remedies, to submit 29 documentation of certain information relating to the NCAA 30 or conference penalty to the Iowa finance authority. The 31 authority may request additional documentation or take other 32 appropriate actions necessary to verify the information. 33 The bill requires the authority to assess a civil penalty 34 on the individual whose actions directly resulted in the 35 -3- LSB 1679YH (5) 86 je/sc 3/ 5

H.F. 220 imposition of the monetary penalty on the institution in 1 the amount of the monetary penalty imposed if the authority 2 determines, by a preponderance of the evidence, that the 3 institution has been subject to a monetary penalty by the NCAA 4 or an affiliated conference which penalty directly resulted 5 from the actions of an individual employed by the institution 6 and that the institution has exhausted all appeals or other 7 remedies to which the institution is entitled under NCAA or 8 conference rules and procedures or has made a binding decision 9 not to pursue further appeals or other remedies. 10 The bill requires the authority to notify the individual of 11 the authority’s determination and the proposed civil penalty. 12 The individual has 10 working days from receipt of the notice 13 to notify the authority that the individual intends to contest 14 the authority’s determination or the proposed assessment, or 15 the penalty, as proposed, shall be deemed final agency action 16 for purposes of judicial review. Judicial review of final 17 agency action pursuant to the bill may be sought in accordance 18 with the terms of Code chapter 17A, the Iowa administrative 19 procedure Act. A contest of the authority’s determination or 20 the proposed assessment of the civil penalty and any further 21 appeal shall be conducted as a contested case proceeding under 22 Code chapter 17A. 23 After the time for seeking judicial review has expired 24 or after all judicial review has been exhausted and the 25 authority’s determination and proposed assessment have been 26 upheld, if the individual does not pay the civil penalty to the 27 authority in full within 10 working days, the bill requires the 28 authority to commence an action in district court to enforce 29 payment of the civil penalty or to seek payment pursuant to the 30 setoff program administered by the department of administrative 31 services. 32 The bill establishes a recovery account within the 33 authority, to be administered by the authority, for the uses 34 permitted by the bill. The bill requires the authority to 35 -4- LSB 1679YH (5) 86 je/sc 4/ 5

H.F. 220 deposit all civil penalties recovered pursuant to the bill in 1 the account. 2 The bill requires the authority to promptly notify the 3 institution on which a monetary penalty was imposed by the 4 NCAA or an affiliated conference which penalty directly 5 resulted from the actions of the individual from whom the civil 6 penalty was recovered that the civil penalty was successfully 7 recovered. The bill requires the institution to designate 8 a means of transferring funds in an amount equal to the 9 monetary penalty imposed on the institution from the account 10 to the institution upon receiving such notification. The bill 11 requires the authority to transfer the funds to the institution 12 by the means designated. The bill requires the authority 13 to provide by rule for procedures for accounting of and 14 transferring funds, including acceptable means of transferring 15 funds that an institution may designate. 16 The bill requires the authority to describe its activities 17 pursuant to the bill in its annual report to the governor and 18 the general assembly. 19 -5- LSB 1679YH (5) 86 je/sc 5/ 5