House Study Bill 131 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON KAUFMANN) A BILL FOR An Act relating to conflicts of interest of certain state 1 officials and employees resulting from service on boards 2 of directors of certain organizations and making penalties 3 applicable. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1835YC (2) 89 jh/tm

H.F. _____ Section 1. NEW SECTION . 68B.9 Service on boards of 1 directors by certain officials and employees. 2 The following persons shall not, during the time in which 3 the person serves as or is employed by the state in such a 4 position, serve as a member of the board of directors of any 5 entity, whether for profit or nonprofit, that provides goods or 6 services to the state entity which the person serves or which 7 employs the person: 8 1. A person who serves as a statewide elected official. 9 2. The executive or administrative head of an agency of 10 state government. 11 3. The deputy executive or administrative head of an agency 12 of state government. 13 4. A member of the general assembly. 14 5. The head of a major subunit of a department or 15 independent state agency whose position involves substantial 16 exercise of administrative discretion or the expenditure of 17 public funds. 18 6. A full-time employee of an office of a statewide elected 19 official whose position involves substantial exercise of 20 administrative discretion or the expenditure of public funds. 21 7. A state or legislative employee whose position involves 22 a substantial exercise of administrative discretion or the 23 expenditure of public funds. 24 Sec. 2. Section 68B.34, Code 2021, is amended to read as 25 follows: 26 68B.34 Additional penalty. 27 In addition to any penalty contained in any other provision 28 of law, a person who knowingly and intentionally violates a 29 provision of sections 68B.2A through 68B.8 68B.9 , sections 30 68B.22 through 68B.24 , or sections 68B.35 through 68B.38 31 is guilty of a serious misdemeanor and may be reprimanded, 32 suspended, or dismissed from the person’s position or otherwise 33 sanctioned. 34 EXPLANATION 35 -1- LSB 1835YC (2) 89 jh/tm 1/ 2

H.F. _____ The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 This bill relates to conflicts of interest of certain state 3 officials and employees resulting from service on boards of 4 directors of certain organizations. 5 The bill prohibits certain elected officials and state 6 employees, during the time in which the person serves as or is 7 employed by the state in such a role, from serving as a member 8 of the board of directors of any entity, whether for profit or 9 nonprofit, that provides goods or services to the state entity 10 which the person serves or which employs the person. 11 The persons subject to the prohibition are a person who 12 serves as a statewide elected official; the executive or 13 administrative head of an agency of state government; the 14 deputy executive or administrative head of an agency of state 15 government; a member of the general assembly; the head of a 16 major subunit of a department or independent state agency 17 whose position involves substantial exercise of administrative 18 discretion or the expenditure of public funds; a full-time 19 employee of an office of a statewide elected official whose 20 position involves substantial exercise of administrative 21 discretion or the expenditure of public funds; and a state or 22 legislative employee whose position involves a substantial 23 exercise of administrative discretion or the expenditure of 24 public funds. 25 A person who knowingly and intentionally violates the 26 provisions of the bill is guilty of a serious misdemeanor and 27 may be reprimanded, suspended, or dismissed from the person’s 28 position or otherwise sanctioned. A serious misdemeanor is 29 punishable by confinement for no more than one year and a fine 30 of at least $430 but not more than $2,560. 31 -2- LSB 1835YC (2) 89 jh/tm 2/ 2