Senate File 236 - Introduced SENATE FILE 236 BY DANIELSON A BILL FOR An Act relating to department of transportation contracts 1 involving former employees of the department, and making 2 penalties applicable. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2036XS (3) 88 ns/jh

S.F. 236 Section 1. Section 68B.7, subsection 1, Code 2019, is 1 amended to read as follows: 2 1. a. A person who has served as an official, state 3 employee of a state agency, member of the general assembly, or 4 legislative employee shall not within a period of two years 5 after the termination of such service or employment receive 6 compensation for any services rendered on behalf of any person, 7 firm, corporation, or association in relation to any case, 8 proceeding, or application with respect to which the person 9 was directly concerned and personally participated during the 10 period of service or employment. 11 b. (1) This subsection shall be construed to prohibit 12 former employees of the state department of transportation, 13 within a period of two years after the termination of such 14 employment, from receiving compensation for any services 15 rendered on behalf of any person, firm, corporation, or 16 association in relation to any contract with the department 17 involving matters related to the former employee’s duties 18 during the period of employment with the department. 19 (2) The department shall not enter into a contract with 20 any person, firm, corporation, or association involving 21 matters related to a former employee’s duties during the 22 period of employment with the department if the person, firm, 23 corporation, or association compensates the former employee for 24 any services rendered pursuant to the contract related to the 25 former employee’s duties during the period of employment with 26 the department. A contract existing between the department 27 and a person, firm, corporation, or association is void if the 28 person, firm, corporation, or association compensates a former 29 employee of the department for any services rendered pursuant 30 to the contract related to the former employee’s duties 31 during the period of employment with the department. This 32 subparagraph does not apply if more than two years have passed 33 since the termination of the former employee’s employment with 34 the department. 35 -1- LSB 2036XS (3) 88 ns/jh 1/ 3

S.F. 236 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 Under current law, a person who has served as an official, 4 state employee of a state agency, member of the general 5 assembly, or legislative employee is prohibited, within a 6 period of two years after the termination of such service 7 or employment, from receiving compensation for any services 8 rendered on behalf of any person, firm, corporation, or 9 association in relation to any case, proceeding, or application 10 with respect to which the person was directly concerned 11 and personally participated during the period of service or 12 employment. 13 This bill specifies that the provision prohibits former 14 employees of the state department of transportation (DOT), 15 within a period of two years after the termination of such 16 employment, from receiving compensation for any services 17 rendered on behalf of any person, firm, corporation, or 18 association in relation to any contract with the DOT involving 19 matters related to the former employee’s duties during the 20 period of employment with the DOT. 21 The bill prohibits the DOT from entering into a contract 22 with any person, firm, corporation, or association involving 23 matters related to a former employee’s duties during the period 24 of employment with the DOT if the person, firm, corporation, or 25 association compensates the former employee for any services 26 rendered pursuant to the contract related to the former 27 employee’s duties during the period of employment with the DOT. 28 The bill provides that a contract existing between the DOT 29 and a person, firm, corporation, or association is void if the 30 person, firm, corporation, or association compensates a former 31 employee of the DOT for any services rendered pursuant to the 32 contract related to the former employee’s duties during the 33 period of employment with the DOT. 34 The bill provides that these provisions do not apply if more 35 -2- LSB 2036XS (3) 88 ns/jh 2/ 3

S.F. 236 than two years have passed since the termination of the former 1 employee’s employment with the DOT. 2 By operation of law, violations of the bill are subject to 3 oversight by the Iowa ethics and campaign disclosure board, 4 including associated complaint procedures, contested case 5 proceedings, penalties, and judicial review. Under Code 6 section 68B.34, a person who knowingly and intentionally 7 violates a provision of the bill is guilty of a serious 8 misdemeanor and may be reprimanded, suspended, or dismissed 9 from the person’s position or otherwise sanctioned. A serious 10 misdemeanor is punishable by confinement for no more than one 11 year and a fine of at least $315 but not more than $1,875. 12 -3- LSB 2036XS (3) 88 ns/jh 3/ 3