HF 220 (LSB 1679YH (5) 86)

HOUSE FILE 220

BY  JONES

A BILL FOR

An Act providing for recovery by the Iowa finance authority of certain monetary penalties imposed by the national collegiate athletic association or an affiliated athletic conference and providing penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  16.230  Recovery of certain athletic association penalties —— account.
   1.  For purposes of this section, “athletic association” means the national collegiate athletic association or an affiliated athletic conference.
   2.  a.  A postsecondary institution in this state that is subject to a monetary penalty by an athletic association which penalty directly resulted from the actions of an individual employed by the institution and that has exhausted all appeals or other remedies to which the institution is entitled under athletic association rules and procedures or made a binding decision not to pursue further appeals or other remedies shall submit documentation of all of the following information to the authority:
   (1)  The imposition of the penalty.
   (2)  The amount of the penalty.
   (3)  The exhaustion of or binding decision not to pursue all appeals or other remedies to which the institution is entitled under athletic association rules and procedures.
   (4)  The name and contact information of the individual whose actions directly resulted in the imposition of the penalty.
   (5)  The underlying circumstances that resulted in imposition of the penalty.
   b.  The authority may request that the institution submit additional documentation sufficient for the authority to verify all of the information required under paragraph “a”. The authority may take other appropriate actions necessary to verify the information required under paragraph “a”.
   3.  If, after the procedures provided in subsection 1 have been completed, the authority determines by a preponderance of the evidence that a postsecondary institution in this state has been subject to a monetary penalty imposed by an athletic association which penalty directly resulted from the actions of an individual employed by the institution and that the institution has exhausted all appeals or other remedies to which the institution is entitled under athletic association rules and procedures or has made a binding decision not to pursue further appeals or other remedies, the authority shall assess a civil penalty on the individual in the amount of the monetary penalty imposed on the institution.
   4.  The authority shall notify the individual of the authority’s determination and the proposed civil penalty by service by both regular mail and certified mail. If within ten working days from receipt of the first notice the individual fails to notify the authority that the individual intends to contest the authority’s determination or the proposed assessment, the penalty, as proposed, shall be deemed final agency action for purposes of judicial review. Judicial review of final agency action pursuant to this section may be sought in accordance with the terms of section 17A.19. A contest of the authority’s determination or the proposed assessment of the civil penalty and any further appeal shall be conducted as a contested case proceeding under chapter 17A.
   5.  After the time for seeking judicial review has expired or after all judicial review has been exhausted and the authority’s determination and proposed assessment have been upheld, if the individual does not pay the civil penalty to the authority in full within ten working days, the authority shall commence an action in district court to enforce payment of the civil penalty or may seek to collect payment pursuant to the setoff program as provided in section 8A.504.
   6.  The authority shall deposit all civil penalties recovered pursuant to this section in the recovery account established by this section.
   7.  Upon deposit of a civil penalty recovered pursuant to this section in the recovery account established by this section, the authority shall promptly notify the postsecondary institution on which a monetary penalty was imposed by an athletic association which penalty directly resulted from the actions of the individual from whom the civil penalty was recovered that the civil penalty was successfully recovered. The institution shall designate in writing to the authority a means of transferring the funds. The authority upon receiving such notification shall transfer from the recovery account to the institution an amount equal to the monetary penalty imposed on the institution. The authority shall transfer the funds to the institution by the means designated. The authority shall adopt rules pursuant to chapter 17A providing for procedures for accounting of funds and transferring funds, including acceptable means of transferring funds that an institution may designate.
   8.  A recovery account is established within the authority for the uses permitted by this section. The authority shall administer the account.
   9.  The authority shall describe its activities pursuant to this section in its annual report to the governor and the general assembly pursuant to section 16.7.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill requires a postsecondary institution in this state that is subject to a monetary penalty by the national collegiate athletic association (NCAA) or an affiliated athletic conference, which penalty directly resulted from the actions of an individual employed by the institution, if the institution has exhausted all appeals or other remedies to which the institution is entitled under NCAA or conference rules and procedures or has made a binding decision not to pursue further appeals or other remedies, to submit documentation of certain information relating to the NCAA or conference penalty to the Iowa finance authority. The authority may request additional documentation or take other appropriate actions necessary to verify the information.
   The bill requires the authority to assess a civil penalty on the individual whose actions directly resulted in the imposition of the monetary penalty on the institution in the amount of the monetary penalty imposed if the authority determines, by a preponderance of the evidence, that the institution has been subject to a monetary penalty by the NCAA or an affiliated conference which penalty directly resulted from the actions of an individual employed by the institution and that the institution has exhausted all appeals or other remedies to which the institution is entitled under NCAA or conference rules and procedures or has made a binding decision not to pursue further appeals or other remedies.
   The bill requires the authority to notify the individual of the authority’s determination and the proposed civil penalty. The individual has 10 working days from receipt of the notice to notify the authority that the individual intends to contest the authority’s determination or the proposed assessment, or the penalty, as proposed, shall be deemed final agency action for purposes of judicial review. Judicial review of final agency action pursuant to the bill may be sought in accordance with the terms of Code chapter 17A, the Iowa administrative procedure Act. A contest of the authority’s determination or the proposed assessment of the civil penalty and any further appeal shall be conducted as a contested case proceeding under Code chapter 17A.
   After the time for seeking judicial review has expired or after all judicial review has been exhausted and the authority’s determination and proposed assessment have been upheld, if the individual does not pay the civil penalty to the authority in full within 10 working days, the bill requires the authority to commence an action in district court to enforce payment of the civil penalty or to seek payment pursuant to the setoff program administered by the department of administrative services.
   The bill establishes a recovery account within the authority, to be administered by the authority, for the uses permitted by the bill. The bill requires the authority to deposit all civil penalties recovered pursuant to the bill in the account.
   The bill requires the authority to promptly notify the institution on which a monetary penalty was imposed by the NCAA or an affiliated conference which penalty directly resulted from the actions of the individual from whom the civil penalty was recovered that the civil penalty was successfully recovered. The bill requires the institution to designate a means of transferring funds in an amount equal to the monetary penalty imposed on the institution from the account to the institution upon receiving such notification. The bill requires the authority to transfer the funds to the institution by the means designated. The bill requires the authority to provide by rule for procedures for accounting of and transferring funds, including acceptable means of transferring funds that an institution may designate.
   The bill requires the authority to describe its activities pursuant to the bill in its annual report to the governor and the general assembly.