House File 551 - Introduced HOUSE FILE 551 BY SHIPLEY A BILL FOR An Act establishing a sunset advisory committee within the 1 general assembly, providing for review of executive branch 2 agencies by the committee and related duties and procedures, 3 providing for the automatic sunset of certain executive 4 branch agencies and related procedures, and including 5 effective date provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 2356HH (3) 88 je/lh

H.F. 551 Section 1. NEW SECTION . 4A.1 Short title. 1 This chapter shall be known as and may be cited as the “Iowa 2 Sunset Act” . 3 Sec. 2. NEW SECTION . 4A.2 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. “Agency” means any department, commission, board, 7 institution, bureau, office, or other agency of the executive 8 branch. 9 2. “Agency review criteria” means the criteria required to 10 be considered under section 4A.9. 11 3. “Committee” means the sunset advisory committee created 12 pursuant to section 4A.3. 13 4. “Sunset” means the termination of all activities of an 14 agency. 15 5. “Sunset review” means the process of review of an agency 16 by the committee pursuant to sections 4A.4 through 4A.9. 17 Sec. 3. NEW SECTION . 4A.3 Sunset advisory committee 18 established. 19 1. A sunset advisory committee is established which shall 20 carry out the functions provided in this chapter. 21 2. a. The committee shall consist of three members of the 22 senate appointed by the majority leader of the senate, two 23 members of the senate appointed by the minority leader of the 24 senate, three members of the house of representatives appointed 25 by the speaker of the house of representatives, and two members 26 of the house of representatives appointed by the minority 27 leader of the house of representatives. The majority leader 28 of the senate and the speaker of the house of representatives 29 shall each appoint an ex officio, nonvoting public member of 30 the committee. An individual shall not serve as a public 31 member of the committee for more than two consecutive terms 32 and is ineligible to serve as a public member of the committee 33 if the individual or the individual’s spouse is any of the 34 following: 35 -1- LSB 2356HH (3) 88 je/lh 1/ 14

H.F. 551 (1) Registered as a lobbyist pursuant to section 68B.36. 1 (2) Licensed, certified, registered with, or otherwise 2 subject to direct regulation by an agency subject to review by 3 the committee during the term for which the individual would 4 serve on the committee. 5 (3) Employed by an entity that is licensed, certified, 6 registered with, or otherwise subject to direct regulation by 7 an agency subject to review by the committee during the term 8 for which the individual would serve on the committee. 9 b. Members shall be appointed no later than the first day of 10 the first regular session of each general assembly and shall 11 serve for terms ending upon the convening of the following 12 general assembly or when their successors are appointed, 13 whichever is later. A vacancy shall be filled in the same 14 manner as the original appointment and shall be for the 15 remainder of the unexpired term of the vacancy. 16 3. The committee shall elect a chairperson and vice 17 chairperson. The committee shall prescribe its rules of 18 procedure. 19 4. The members of the committee shall be reimbursed for 20 actual and necessary expenses incurred in the performance of 21 their duties and the legislative members shall be paid a per 22 diem as specified in section 2.10 for each day in which they 23 engaged in the performance of their duties. However, per diem 24 compensation and expenses shall not be paid when the general 25 assembly is actually in session at the seat of government. 26 Expenses and per diem shall be paid from funds appropriated 27 pursuant to section 2.12. 28 5. Administrative assistance shall be provided by the 29 legislative services agency and by staff of each caucus of the 30 general assembly. 31 Sec. 4. NEW SECTION . 4A.4 Sunset review schedule. 32 1. The committee shall establish a twelve-year schedule 33 for sunset review of all agencies and update the schedule 34 annually. The schedule shall be structured so that each agency 35 -2- LSB 2356HH (3) 88 je/lh 2/ 14

H.F. 551 is subject to sunset review at least every twelve years. The 1 committee shall incorporate newly established agencies into the 2 schedule. The committee may modify the schedule as necessary 3 to facilitate the efficient administration of the committee, 4 but in no case shall more than twelve years pass before an 5 agency is subject to sunset review. The committee shall 6 schedule an agency subject to sunset pursuant to section 4A.10 7 for sunset review in the calendar year before the agency will 8 sunset. The general assembly shall publish the schedule on the 9 general assembly’s internet site. 10 2. Sunset reviews shall commence in calendar year 2021. The 11 committee shall establish an initial schedule for the first 12 year of sunset review no later than January 1, 2020. 13 Sec. 5. NEW SECTION . 4A.5 Information to be reported by 14 agencies to committee. 15 By January 1 of the calendar year before the calendar year in 16 which an agency is subject to sunset review, the agency shall 17 report all of the following information to the committee: 18 1. Information regarding the applicability of the agency 19 review criteria to the agency. 20 2. Any other information that the agency considers 21 appropriate or that is requested by the committee. 22 Sec. 6. NEW SECTION . 4A.6 Sunset review —— duties of 23 committee —— report. 24 1. During the calendar year in which an agency is subject to 25 sunset review, the committee shall do all of the following: 26 a. Review and take any action necessary to verify 27 information contained in the report submitted by the agency 28 pursuant to section 4A.5. 29 b. Consult with the appropriations committees of the senate 30 and house of representatives, the department of management, 31 the auditor of state, and the treasurer of state as necessary 32 regarding the applicability of the agency review criteria to 33 the agency. 34 c. Conduct one or more public hearings concerning but not 35 -3- LSB 2356HH (3) 88 je/lh 3/ 14

H.F. 551 limited to the applicability of the agency review criteria to 1 the agency. 2 d. Conduct a performance evaluation of the agency based on 3 the agency review criteria and prepare a written report on the 4 committee’s findings and recommendations pursuant to section 5 4A.8. 6 2. During the second calendar year after an agency is 7 subject to sunset review, the committee shall review the 8 implementation of recommendations contained in the report 9 presented to the general assembly pursuant to section 4A.8 and 10 any resulting legislation. 11 Sec. 7. NEW SECTION . 4A.7 Criteria considered by committee. 12 The committee shall consider all of the following 13 criteria in determining whether a public need exists for 14 the continuation of an agency or for the performance of the 15 functions of the agency: 16 1. The efficiency and effectiveness with which the agency 17 operates. 18 2. a. Identification of the objectives intended for the 19 agency and the problems or needs that the agency was intended 20 to address. 21 b. An assessment of the extent to which the objectives have 22 been achieved and the problems or needs have been addressed. 23 c. An assessment of whether less restrictive or alternative 24 methods of performing any function that the agency performs 25 could achieve the objectives or address the problems or needs. 26 3. Identification of any activities of the agency in 27 addition to those specifically required or authorized by 28 statute and the authority for carrying out such activities, as 29 well as the extent to which the activities are needed. 30 4. An assessment of the specific authority of the agency 31 to impose any fees or penalties it imposes and to conduct any 32 inspections that it conducts. 33 5. The extent to which the jurisdiction of the agency and 34 the programs administered by the agency overlap or duplicate 35 -4- LSB 2356HH (3) 88 je/lh 4/ 14

H.F. 551 those of other agencies, the extent to which the agency 1 coordinates with those agencies, and the extent to which the 2 programs administered by the agency could be consolidated with 3 the programs of other agencies. 4 6. An evaluation of the promptness and effectiveness with 5 which the agency disposes of complaints concerning persons 6 affected by the agency, including an assessment of the agency’s 7 contested case procedures pursuant to chapter 17A. 8 7. An assessment of the agency’s rulemaking process and 9 extent to which the agency has encouraged participation by 10 the public in making rules and the extent to which the public 11 participation has resulted in rules that benefit the public. 12 8. The extent to which the agency has complied with 13 applicable requirements of all of the following: 14 a. Federal and state laws regarding equality of employment 15 opportunity and the rights and privacy of individuals. 16 b. State law and applicable rules of any agency regarding 17 purchasing goals and programs for historically underutilized 18 businesses, including but not limited to the goals for small 19 businesses and targeted small businesses in this state under 20 section 73.16. 21 9. The extent to which the agency adopts and enforces rules 22 or other policies relating to potential conflicts of interest 23 of its employees. 24 10. The extent to which the agency complies with chapter 22 25 and follows records management practices that enable the agency 26 to respond efficiently to requests for public information. 27 11. The effect of federal intervention or loss of federal 28 funds if the agency were to sunset. 29 12. The extent to which the purpose and effectiveness of 30 any reporting requirements imposed on the agency justify the 31 continuation of the requirements. 32 13. An assessment of the agency’s cybersecurity practices 33 using information available from the agency, the office of the 34 chief information officer, or any other agency. 35 -5- LSB 2356HH (3) 88 je/lh 5/ 14

H.F. 551 Sec. 8. NEW SECTION . 4A.8 Committee reports on sunset 1 reviews. 2 1. No later than the beginning of each regular session of 3 the general assembly, the committee shall submit to the general 4 assembly and the governor a report on each agency subject 5 to sunset review during the previous calendar year. In the 6 report, the committee shall include all of the following: 7 a. The committee’s findings regarding the agency review 8 criteria. 9 b. The committee’s recommendations regarding the abolition, 10 continuation, or reorganization of the agency and on the need 11 for the performance of the functions of the agency. 12 c. The committee’s recommendations on the consolidation, 13 transfer, or reorganization of programs or other functions 14 within agencies not reviewed if the programs or other functions 15 duplicate programs or other functions of the agency under 16 review. 17 d. The committee’s recommendations to improve the operations 18 of the agency, including recommendations that do not require 19 legislative action. 20 e. Any draft legislation necessary to carry out the 21 committee’s recommendations. 22 f. The estimated fiscal impact of the committee’s 23 recommendations. The committee may also recommend 24 appropriation levels for certain programs to improve the 25 operations of the agency, which shall be forwarded to the 26 appropriate joint appropriations subcommittee. 27 g. Any other information the committee finds appropriate for 28 consideration by the general assembly and the governor. 29 2. On the date the committee presents its report to the 30 general assembly pursuant to subsection 1, the committee shall 31 submit to the auditor of state the committee’s recommendations 32 that do not require a statutory enactment to be put into 33 effect. The auditor of state shall examine the recommendations 34 and shall prepare, as part of the next scheduled audit of 35 -6- LSB 2356HH (3) 88 je/lh 6/ 14

H.F. 551 the agency, a report on the manner in which the agency has 1 implemented the committee’s recommendations and submit the 2 report to the committee. 3 Sec. 9. NEW SECTION . 4A.9 Agencies and employees to provide 4 assistance to committee. 5 1. Agencies and employees of agencies shall assist the 6 committee in gathering information necessary to carry out the 7 committee’s functions pursuant to this chapter upon request. 8 2. In carrying out the committee’s functions pursuant 9 to this chapter, the committee or the committee’s staff may 10 inspect the records, documents, files, or other information of 11 any agency. If material sought by the committee is required 12 by law to be kept confidential, the committee and committee 13 staff shall have access to the material, but shall maintain the 14 confidentiality of the material. 15 Sec. 10. NEW SECTION . 4A.10 Automatic sunset date for 16 agencies. 17 1. Unless an agency is expressly exempted from this chapter 18 by law, if a law establishing an agency is enacted on or after 19 July 1, 2020, the law shall include a sunset clause clearly 20 indicating the date of the agency’s sunset unless the agency is 21 reauthorized by enactment by the general assembly. 22 2. If an agency is reauthorized by enactment by the general 23 assembly prior to sunset, such enactment shall include a 24 provision specifying that the agency shall sunset at a date 25 not more than twelve years from the effective date of the 26 enactment. 27 3. Unless expressly provided by law, funding shall not be 28 expended for or by an agency that has sunset except pursuant 29 to section 4A.12. 30 Sec. 11. NEW SECTION . 4A.11 Rights and duties not affected 31 by agency sunset. 32 Unless otherwise expressly provided by law, the sunset of 33 an agency does not affect the rights and duties that matured, 34 penalties incurred or imposed, civil or criminal liabilities 35 -7- LSB 2356HH (3) 88 je/lh 7/ 14

H.F. 551 that arose, or proceedings initiated in connection with the 1 agency before the effective date of the agency’s sunset. 2 Sec. 12. NEW SECTION . 4A.12 Procedures for agencies that 3 sunset —— continuing obligations. 4 1. a. An agency that has sunset may continue in existence 5 to conclude its business until July 1 of the fiscal year 6 following the fiscal year in which the agency was sunset. 7 Unless otherwise provided by law, the sunset of an agency does 8 not reduce or otherwise limit the powers and authority of the 9 agency during the concluding year. 10 b. An agency shall terminate all activities on or before 11 the date specified in paragraph “a” . Unless otherwise provided 12 by law, all rules adopted by the agency shall be void on that 13 date. 14 2. a. Any unobligated or unexpended appropriations of an 15 agency that has sunset shall lapse and revert to the general 16 fund of the state on the date specified in subsection 1. 17 b. Except as provided by subsection 4 or as otherwise 18 provided by law, all moneys in a dedicated fund of an agency 19 that has sunset shall be transferred to the general fund of the 20 state on the date specified in subsection 1. Any portion of a 21 law dedicating moneys to a specific fund of an agency that is 22 sunset is void on the date specified in subsection 1. 23 3. Unless the governor designates an appropriate agency 24 as described in subsection 4, the property and records in the 25 custody of an agency that has sunset shall be transferred to 26 the department of administrative services on the date specified 27 in subsection 1. If the governor designates an appropriate 28 agency as described in subsection 4, the property and records 29 shall be transferred to the designated agency. 30 4. a. In recognition of the state’s continuing obligation 31 to pay bonded indebtedness and all other obligations, including 32 lease, contract, and other written obligations, incurred by 33 an agency that has sunset, the sunset of the agency shall not 34 impair or impede payment of bonded indebtedness and all other 35 -8- LSB 2356HH (3) 88 je/lh 8/ 14

H.F. 551 obligations, including lease, contract, and other written 1 obligations, in accordance with their terms. 2 b. If an agency that has sunset has outstanding bonded 3 indebtedness or other outstanding obligations, including lease, 4 contract, or other written obligations, the bonds and all other 5 such obligations remain valid and enforceable in accordance 6 with their terms and remain subject to all applicable terms and 7 conditions of the laws and proceedings authorizing the bonds 8 and all other such obligations. The governor shall designate 9 an appropriate agency to continue to carry out all covenants 10 contained in the bonds and in all other such obligations, and 11 the proceedings authorizing them, including the issuance of 12 bonds, and the performance of all other obligations necessary 13 to complete the construction of projects or the performance of 14 the other obligations. The designated agency shall provide 15 payment from the sources of payment of the bonds in accordance 16 with the terms of the bonds and shall provide payment from the 17 sources of payment from all other obligations in accordance 18 with their terms, whether from taxes, revenues, or otherwise, 19 until the bonds and interest on the bonds are performed and 20 paid in full. If the terms of the obligations so provide, all 21 funds established by law or proceedings authorizing the bonds 22 or authorizing the other obligations shall remain with the 23 treasurer of state or previously designated trustees. If the 24 terms of the obligations do not provide that the funds remain 25 with the treasurer of state or previously designated trustees, 26 the funds shall be transferred to the designated agency. 27 Sec. 13. NEW SECTION . 4A.13 Department of workforce 28 development to assist displaced employees. 29 If an employee is discharged because the agency employing 30 the employee sunsets, the affected agency and the department of 31 workforce development shall make a reasonable effort to assist 32 the discharged employee in obtaining new employment. 33 Sec. 14. NEW SECTION . 4A.14 Activities of the general 34 assembly not restricted. 35 -9- LSB 2356HH (3) 88 je/lh 9/ 14

H.F. 551 This chapter shall not be construed to restrict the general 1 assembly from doing any of the following: 2 1. Enacting an agency sunset at a date earlier than required 3 under this chapter. 4 2. Considering any other legislation concerning an agency 5 subject to this chapter. 6 Sec. 15. REPEAL. Section 2.69, Code 2019, is repealed. 7 Sec. 16. EFFECTIVE DATE. This Act, being deemed of 8 immediate importance, takes effect upon enactment. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill establishes a new Code chapter which is to be known 13 as and may be cited as the “Iowa Sunset Act”. 14 The bill establishes a sunset advisory committee in the 15 general assembly, consisting of five members from each 16 legislative chamber, with thee members appointed from the 17 majority party and two from the minority party. The committee 18 also includes two ex officio, nonvoting public members 19 appointed by the majority leader of the senate and the 20 speaker of the house of representatives, respectively. The 21 bill provides additional eligibility criteria for the public 22 members. The bill includes additional procedural matters 23 relating to establishment of the committee. 24 The bill establishes a sunset review process for executive 25 branch agencies to be carried out by the committee. The 26 bill establishes criteria for the committee to consider in 27 such reviews to determine whether a public need exists for 28 the continuation of an agency or for the performance of the 29 functions of the agency. The criteria include but are not 30 limited to the efficiency and effectiveness with which the 31 agency operates, identification of the objectives intended 32 for the agency and the problems or needs that the agency was 33 intended to address, identification of activities of the agency 34 in addition to those required or authorized by statute, an 35 -10- LSB 2356HH (3) 88 je/lh 10/ 14

H.F. 551 assessment of the specific authority of the agency to impose 1 any fees or penalties it imposes and to conduct any inspections 2 that it conducts, and various other matters. 3 The bill requires an agency to report information regarding 4 the applicability of the agency review criteria to the agency, 5 as well as any other information that the agency considers 6 appropriate or that is requested by the committee, to the 7 committee by January 1 of the calendar year before the calendar 8 year in which an agency is subject to sunset review. The bill 9 requires the committee to take any action necessary to verify 10 the information contained in the report. 11 The bill requires the committee to establish a 12-year 12 schedule for sunset review of all agencies and to update 13 the schedule annually. The bill requires the committee to 14 incorporate newly established agencies into the schedule and to 15 schedule agencies subject to sunset under the bill for sunset 16 review in the calendar year before the agency will sunset. 17 Sunset reviews shall commence in calendar year 2021, and the 18 committee is required to establish an initial schedule for the 19 first year of sunset review no later than January 1, 2020. 20 The bill requires the committee to consult with the 21 appropriations committees of the senate and house of 22 representatives, the department of management, the auditor 23 of state, and the treasurer of state as necessary regarding 24 the applicability of the agency review criteria to an agency 25 subject to sunset review. The bill requires the committee to 26 conduct one or more public hearings concerning but not limited 27 to the applicability of the agency review criteria to the 28 agency. 29 The bill requires the committee to submit to the general 30 assembly and the governor a report on each agency subject to 31 sunset review during the previous calendar year no later than 32 the beginning of each regular session of the general assembly. 33 The bill provides the content of the report, which includes but 34 is not limited to committee’s findings regarding the agency 35 -11- LSB 2356HH (3) 88 je/lh 11/ 14

H.F. 551 review criteria; the committee’s recommendations regarding 1 the abolition, continuation, or reorganization of the agency; 2 the committee’s recommendations to improve the operations of 3 the agency; any draft legislation necessary to carry out the 4 committee’s recommendations; and the estimated fiscal impact of 5 the committee’s recommendations. 6 The bill requires the committee to review the implementation 7 of recommendations contained in the report and any resulting 8 legislation during the second calendar year after an agency is 9 subject to sunset review. 10 The bill requires the committee to submit the committee’s 11 recommendations that do not require a statutory enactment to 12 be put into effect to the auditor of state. The bill requires 13 the auditor of state to report on the implementation of the 14 recommendations by the agency in the next audit of the agency. 15 The bill requires agencies and employees of agencies to 16 assist the committee in gathering information necessary to 17 carry out the committee’s functions pursuant to the bill upon 18 request. The bill authorizes the committee or the committee’s 19 staff may inspect the records, documents, files, or other 20 information of any agency in carrying out the committee’s 21 functions pursuant to the bill. The bill requires the 22 committee and committee staff to maintain the confidentiality 23 of any confidential material accessed. 24 The bill requires that a law establishing an agency 25 enacted on or after July 1, 2020, unless the agency is 26 expressly exempted from the sunset by law, to include a 27 sunset clause clearly indicating the date of the agency’s 28 sunset if the agency is not reauthorized by enactment by the 29 general assembly. The bill requires that an enactment that 30 reauthorizes the agency prior to sunset of the agency to 31 include a provision specifying that the agency sunset at a 32 date not more than 12 years from the effective date of the 33 enactment. The bill prohibits funding from being expended 34 for or by an agency that has sunset unless expressly provided 35 -12- LSB 2356HH (3) 88 je/lh 12/ 14

H.F. 551 by law. The bill defines “sunset” as the termination of all 1 activities of an agency. 2 The sunset of an agency does not affect the rights and duties 3 that matured, penalties incurred or imposed, civil or criminal 4 liabilities that arose, or proceedings initiated in connection 5 with the agency before the effective date of the agency’s 6 sunset, unless otherwise expressly provided by law. 7 The bill authorizes an agency that has sunset to continue in 8 existence to conclude its business until July 1 of the fiscal 9 year following the fiscal year in which the agency was sunset. 10 Unless otherwise provided by law, the sunset of an agency 11 does not reduce or otherwise limit the powers and authority 12 of the agency during the concluding year. The bill requires 13 the agency to terminate all activities on or before that date, 14 and provides that all rules adopted by the agency shall be 15 void on that date. The bill provides that any unobligated or 16 unexpended appropriations of an agency that has sunset shall 17 lapse and revert to the general fund of the state on that date. 18 The bill provides that all moneys in a dedicated fund of 19 an agency that has sunset shall be transferred to the general 20 fund of the state on July 1 of the fiscal year following the 21 fiscal year in which the agency was sunset, except as provided 22 in the bill or as otherwise provided by law. Any portion of a 23 law dedicating moneys to a specific fund of an agency that has 24 sunset is void on that date. 25 The bill provides that the property and records in the 26 custody of an agency that has sunset shall be transferred to 27 the department of administrative services on July 1 of the 28 fiscal year following the fiscal year in which the agency was 29 sunset unless the governor designates an appropriate agency as 30 described in the bill. 31 The bill provides that the sunset of an agency shall not 32 impair or impede payment of bonded indebtedness and all 33 other obligations, including lease, contract, and other 34 written obligations, in accordance with their terms. If an 35 -13- LSB 2356HH (3) 88 je/lh 13/ 14

H.F. 551 agency that is sunset has outstanding bonded indebtedness or 1 other outstanding obligations, the bonds and all other such 2 obligations remain valid and enforceable in accordance with 3 their terms and subject to all applicable terms and conditions 4 of the laws and proceedings authorizing the bonds and all other 5 such obligations. The bill requires the governor to designate 6 an appropriate agency to continue to carry out all covenants 7 contained in the bonds and all other such obligations and to 8 perform all other such obligations to complete the construction 9 of projects or perform other such obligations. The bill 10 provides procedures for a designated agency to carry out those 11 duties. 12 If an employee is discharged because the agency employing 13 the employee sunsets, the bill requires the affected agency and 14 the department of workforce development to make a reasonable 15 effort to assist the discharged employee in obtaining new 16 employment. 17 The bill provides that the new Iowa sunset Act shall not be 18 construed to restrict the general assembly from enacting an 19 agency sunset at a date earlier than required under the bill or 20 considering any other legislation concerning an agency subject 21 to this Code chapter. 22 The bill strikes language creating a state government 23 efficiency review committee within the general assembly. 24 The bill takes effect upon enactment. 25 -14- LSB 2356HH (3) 88 je/lh 14/ 14