House File 2708 - Introduced HOUSE FILE 2708 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HF 2622) (SUCCESSOR TO HSB 695) A BILL FOR An Act relating to the powers, duties, and responsibilities 1 of state government entities associated with the budget, 2 financial control, and information technology, making 3 penalties applicable, and making appropriations. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5393HZ (3) 90 ns/jh

H.F. 2708 DIVISION I 1 BUDGET AND FINANCIAL CONTROL —— INFORMATION TECHNOLOGY 2 Section 1. Section 8.2, Code 2024, is amended to read as 3 follows: 4 8.2 Definitions. 5 When used in this chapter : 6 1. “Appropriated receipts” means receipts that have been 7 appropriated by the general assembly. 8 1. 2. “Block grant” means funds from the federal government 9 awarded in broad program areas within which the state is given 10 considerable latitude in determining how funds are used and for 11 which the state develops its own plan for spending according 12 to general federal guidelines. “Block grant” does not include 13 education research grants. 14 2. 3. “Budget” means the budget document required by this 15 chapter to be transmitted to the legislature general assembly . 16 3. 4. “Categorical grant” means federal funds applied 17 for and received by the state which are in the form of 18 entitlements, formula grants, discretionary grants, open-ended 19 entitlements , or another form that may be used only for 20 specific , narrowly defined activities , except funds for 21 student aid and assistance; grants, contracts , and cooperative 22 agreements for research and training for which no appropriated 23 matching funds are required; and reimbursements for services 24 rendered. 25 4. “Code” or “the Code” means the Code of Iowa. 26 5. “Custodial funds” means those funds from various 27 deposits, taxes, or other means that are properly collected 28 from, held for, and distributed to individuals, private 29 organizations, and other governments as provided by law. 30 5. 6. The terms “department and establishment” and 31 “department” or “establishment” , “department or establishment” 32 mean any executive department, commission, board, institution, 33 bureau, office, or other agency of the state government, by 34 whatever name called, that uses, expends, or receives any 35 -1- LSB 5393HZ (3) 90 ns/jh 1/ 102

H.F. 2708 state government funds, including the state department of 1 transportation, except for funds which that are required 2 to match federal aid allotted to the state by the federal 3 government for highway special purposes, but excluding the 4 courts and the legislature general assembly . 5 7. “General fund” means the general fund of the state 6 established pursuant to section 444.21. 7 6. 8. “Government” means the government of the state of 8 Iowa. 9 7. “Private trust funds” means any and all endowment 10 funds and any and all moneys received by a department or 11 establishment from private persons to be held in trust and 12 expended as directed by the donor. 13 8. “Repayment receipts” means those moneys collected by a 14 department or establishment that supplement an appropriation 15 made by the legislature. 16 9. “Government funds” means all moneys appropriated by the 17 general assembly, or moneys collected by or for the state, or a 18 department or establishment of the state, pursuant to authority 19 granted by law. 20 10. “Private purpose trust funds” means trust arrangements 21 under which the principal and income benefit individuals, 22 private organizations, or other governments. “Private purpose 23 trust funds” does not include pension or other employee benefit 24 trust funds or investment trust funds. 25 9. 11. “Special fund” “Special revenue fund” means any 26 and all government fees and other revenue receipts earmarked 27 to finance a governmental agency to which no a general fund 28 appropriation is not made by the state. 29 10. “State funds” means any and all moneys appropriated by 30 the legislature, or money collected by or for the state, or an 31 agency thereof, pursuant to authority granted by any of its 32 laws. 33 11. 12. “Unencumbered balance” means the unobligated 34 balance of an appropriation after charging thereto to the 35 -2- LSB 5393HZ (3) 90 ns/jh 2/ 102

H.F. 2708 appropriation all unpaid liabilities for goods and services and 1 all contracts or agreements payable from an the appropriation 2 or a special fund . 3 Sec. 2. Section 8.3A, subsection 1, paragraph a, Code 2024, 4 is amended to read as follows: 5 a. “Capital project” means a project that consists 6 of nonroutine repairs and replacements unrelated to new 7 construction for which the cost is two hundred fifty thousand 8 dollars or more, new construction, infrastructure or site 9 development, equipment, or information technology, as defined 10 in section 8B.1. “Capital project” includes land acquisition 11 and projects that extend the useful life of or change the 12 functional use of a facility. 13 “Capital project” does not include highway and right-of-way 14 projects or airport capital projects undertaken by the state 15 department of transportation and financed from dedicated 16 funds or capital projects funded by nonstate grants, gifts, 17 or contracts obtained at or through state universities, if 18 the projects do not require a commitment of additional state 19 resources for maintenance, operations, or staffing. 20 Sec. 3. Section 8.4, Code 2024, is amended to read as 21 follows: 22 8.4 Department of management. 23 The department of management is created, which is directly 24 attached to the office of the governor and under the general 25 direction, supervision, and control of the governor. The 26 office is in immediate charge of an officer to be known 27 as “the director”, who shall be appointed by the governor, 28 subject to confirmation by the senate, and shall hold office 29 at the governor’s pleasure and shall receive a salary as set 30 by the governor. The director may establish, abolish, and 31 consolidate divisions within the department of management 32 when necessary for the efficient performance of the various 33 functions and duties of the department of management. Before 34 entering upon the discharge of duties, the director shall 35 -3- LSB 5393HZ (3) 90 ns/jh 3/ 102

H.F. 2708 take the constitutional oath of office and give a surety bond 1 in the penalty fixed by the governor, payable to the state, 2 which shall not be less than twenty-five thousand dollars, 3 conditioned upon the faithful discharge of the director’s 4 duties . The premium on the bond shall be paid out of the state 5 treasury. 6 Sec. 4. Section 8.5, subsection 1, Code 2024, is amended 7 by striking the subsection and inserting in lieu thereof the 8 following: 9 1. Personnel. Employ personnel as necessary for the 10 performance of the duties and responsibilities assigned to the 11 department of management. 12 Sec. 5. Section 8.5, Code 2024, is amended by adding the 13 following new subsections: 14 NEW SUBSECTION . 5. Investigations. Make such 15 investigations of the organization, activities, and methods of 16 procedure of the several departments and establishments as the 17 director of the department of management may be called upon to 18 make by the governor or general assembly. 19 NEW SUBSECTION . 6. Legislative assistance. 20 a. Furnish to any committee of either house of the general 21 assembly having jurisdiction over revenues or appropriations 22 such assistance and information regarding the financial affairs 23 of the government as the committee may request. 24 b. Develop and recommend legislative proposals deemed 25 necessary for the continued efficiency of the department of 26 management in performing information technology functions under 27 subchapter XI, and review legislative proposals generated 28 outside of the department which are related to matters within 29 the department’s purview. 30 NEW SUBSECTION . 7. Rules. Make such rules, subject to the 31 approval of the governor, as may be necessary for effectively 32 carrying on the work of the department of management. The 33 director may, with the approval of the executive council, 34 require any state official, agency, department, or commission, 35 -4- LSB 5393HZ (3) 90 ns/jh 4/ 102

H.F. 2708 to require any applicant, registrant, filer, permit holder, 1 or license holder, whether individual, partnership, trust, or 2 corporation, to submit to said official, agency, department, 3 or commission, the social security number or the tax number or 4 both so assigned to said individual, partnership, trust, or 5 corporation. 6 NEW SUBSECTION . 8. Allotments. Perform the necessary work 7 involved in reviewing requests for allotments as are submitted 8 to the governor for approval. 9 NEW SUBSECTION . 9. Budget document. Prepare the budget 10 document and draft the legislation to make it effective. 11 NEW SUBSECTION . 10. Taxation transparency and 12 disclosure. Exercise the powers and perform the duties 13 and responsibilities of the director and the department as 14 authorized or required under chapter 8G. 15 NEW SUBSECTION . 11. General control. Perform such other 16 duties as may be required to effectively control the financial 17 operations of the government as limited by this chapter. 18 NEW SUBSECTION . 12. Capital project budgeting 19 requests. Compile annually all capital project budgeting 20 requests of all state agencies, as those terms are defined in 21 section 8.3A, and to consolidate the requests, with individual 22 state agency priorities noted, into a report for submission 23 with the budget documents by the governor pursuant to section 24 8.22. Any additional information regarding the capital 25 project budgeting requests or priorities shall be compiled and 26 submitted in the same report. 27 NEW SUBSECTION . 13. Capital project planning and budgeting 28 authority. Call upon any state agency, as defined in section 29 8.3A, for assistance the director may require in performing the 30 director’s duties under subsection 12. All state agencies, 31 upon the request of the director, shall assist the director and 32 are authorized to make available to the director any existing 33 studies, surveys, plans, data, and other materials in the 34 possession of the state agencies which are relevant to the 35 -5- LSB 5393HZ (3) 90 ns/jh 5/ 102

H.F. 2708 director’s duties. 1 NEW SUBSECTION . 14. State tort claims —— risk management 2 coordinator. Designate a position within the department of 3 management to serve as the executive branch’s risk management 4 coordinator. 5 a. The risk management coordinator shall have all of the 6 following responsibilities: 7 (1) Coordinating and monitoring risk control policies and 8 programs in the executive branch, including but not limited 9 to coordination with the employees of departments who are 10 responsible for the workers’ compensation for state employees 11 and management of state property. 12 (2) Consulting with the attorney general with respect to 13 the risk control policies and programs and trends in claims and 14 liability of the state under chapter 669. 15 (3) Coordinating the state’s central data repository for 16 claims and risk information. 17 b. The costs of salary, benefits, and support for the risk 18 management coordinator shall be authorized by the state appeal 19 board established in chapter 73A and shall be paid as claims 20 for services furnished to the state under section 25.2. 21 NEW SUBSECTION . 15. Salary model administrator. Designate 22 a position within the department of management to serve as the 23 salary model administrator. 24 a. The salary model administrator shall work in conjunction 25 with the legislative services agency to maintain the state’s 26 salary model used for analyzing, comparing, and projecting 27 state employee salary and benefit information, including 28 information relating to employees of the state board of 29 regents. 30 b. The department of revenue, the department of 31 administrative services, the institutions governed by the state 32 board of regents pursuant to section 262.7, each judicial 33 district’s department of correctional services, and the state 34 department of transportation shall provide salary data to the 35 -6- LSB 5393HZ (3) 90 ns/jh 6/ 102

H.F. 2708 department of management and the legislative services agency 1 to operate the state’s salary model. The format and frequency 2 of provision of the salary data shall be determined by the 3 department of management and the legislative services agency. 4 c. The information shall be used in collective bargaining 5 processes under chapter 20 and in calculating the funding needs 6 contained within any annual salary adjustment legislation. 7 A state employee organization as defined in section 20.3, 8 subsection 4, may request information produced by the model, 9 but the information provided shall not contain information 10 attributable to individual employees. 11 NEW SUBSECTION . 16. Chief information officer. Designate a 12 position within the department of management to serve as the 13 chief information officer for the department and supported 14 entities, as defined in section 8B.1, who shall be the sole 15 chief information officer for the department and supported 16 entities. 17 NEW SUBSECTION . 17. Gubernatorial advice. Provide advice 18 to the governor, including advice related to information 19 technology, as defined in section 8B.1. 20 NEW SUBSECTION . 18. Information technology 21 consultation. Consult with departments and establishments on 22 issues related to information technology, as defined in section 23 8B.1. 24 NEW SUBSECTION . 19. Cybersecurity. Exercise the sole 25 authority in the executive branch of state government for 26 convening cross-jurisdictional, multi-entity collaborations to 27 address cybersecurity issues for supported entities, as defined 28 in section 8B.1. 29 NEW SUBSECTION . 20. Designation of services —— funding —— 30 customer council. 31 a. Establish a process by which the department of 32 management, in consultation with the department of 33 administrative services, determines which services provided 34 by the department of administrative services shall be funded 35 -7- LSB 5393HZ (3) 90 ns/jh 7/ 102

H.F. 2708 by an appropriation and which services shall be funded by the 1 governmental entity receiving the service. 2 b. Establish a process for determining whether the 3 department of administrative services shall be the sole 4 provider of a service for purposes of those services which the 5 department of management determines under paragraph “a” are to 6 be funded by the governmental entities receiving the service. 7 c. (1) Establish, by rule, a customer council responsible 8 for overseeing the services provided solely by the department 9 of administrative services. The rules adopted shall provide 10 for all of the following: 11 (a) The method of appointment of members to the council by 12 the governmental entities required to receive the services. 13 (b) The duties of the customer council which shall be as 14 follows: 15 (i) Annual review and approval of the department of 16 administrative services’ business plan regarding services 17 provided solely by the department of administrative services. 18 (ii) Annual review and approval of the procedure for 19 resolving complaints concerning services provided by the 20 department of administrative services. 21 (iii) Annual review and approval of the procedure 22 for setting rates for the services provided solely by the 23 department of administrative services. 24 (c) A process for receiving input from affected 25 governmental entities as well as for a biennial review by the 26 customer council of the determinations made by the department 27 of management of which services are funded by an appropriation 28 to the department of administrative services and which services 29 are funded by the governmental entities receiving the service, 30 including any recommendations as to whether the department of 31 administrative services shall be the sole provider of a service 32 funded by the governmental entities receiving the service. The 33 department of management, in consultation with the department 34 of administrative services, may change the determination of 35 -8- LSB 5393HZ (3) 90 ns/jh 8/ 102

H.F. 2708 a service if the change is in the best interests of those 1 governmental entities receiving the service. 2 (2) If a service to be provided may also be provided to the 3 judicial branch or legislative branch, then the rules shall 4 provide that the chief justice of the supreme court may appoint 5 a member to the customer council, and the legislative council 6 may appoint a member from the senate and a member from the 7 house of representatives to the customer council, respectively, 8 at their discretion. 9 NEW SUBSECTION . 21. Annual report. On an annual basis, 10 the department of management shall prepare a report to the 11 governor and the general assembly regarding the total spending 12 on technology for the previous fiscal year, the total amount 13 appropriated for the current fiscal year, and an estimate of 14 the amount to be requested for the succeeding fiscal year 15 for all supported entities, as defined in section 8B.1. The 16 report must include a five-year projection of technology cost 17 savings, an accounting of the level of technology cost savings 18 for the current fiscal year, and a comparison of the level of 19 technology cost savings for the current fiscal year with that 20 of the previous fiscal year. The department shall file the 21 report as soon as possible after the close of a fiscal year, 22 and by no later than the second Monday of January of each year. 23 NEW SUBSECTION . 22. Other powers and duties. Exercise and 24 perform such other powers and duties as may be prescribed by 25 law. 26 Sec. 6. Section 8.8, Code 2024, is amended to read as 27 follows: 28 8.8 Special olympics fund —— appropriation. 29 A special olympics fund is created in the office of the 30 treasurer of state under the control of the department of 31 management. There is appropriated annually from the general 32 fund of the state to the special olympics fund department of 33 management one hundred thousand dollars for distribution to 34 one or more organizations which administer special olympics 35 -9- LSB 5393HZ (3) 90 ns/jh 9/ 102

H.F. 2708 programs benefiting the citizens of Iowa with disabilities. 1 Sec. 7. Section 8.9, subsection 1, Code 2024, is amended to 2 read as follows: 3 1. The office of grants enterprise management is 4 established in the department of management. The function of 5 the office is to develop and administer a system process to 6 track , identify, advocate for, and coordinate nonstate block 7 grants as defined in section 8.2, subsections 1 and 3 8 and categorical grants . Staffing for the office of grants 9 enterprise management shall be provided by a facilitator 10 appointed by the director of the department of management. 11 Additional staff may be hired, subject to the availability of 12 funding. 13 Sec. 8. Section 8.10, Code 2024, is amended to read as 14 follows: 15 8.10 Facilitator’s duties. 16 The specific duties of the facilitator of the office of 17 grants enterprise management may include the following: 18 1. Establish Coordinate a grants network representing all 19 state agencies to assist the grants enterprise management 20 office in an advisory capacity. Each state agency shall 21 designate an employee on the management or senior staff 22 level to serve as the agency’s federal funds coordinator and 23 represent the agency on the grants network. An agency may not 24 create a staff position for a federal funds coordinator. The 25 coordinator’s duties shall be in addition to the duties of the 26 employee of the agency. 27 2. Develop a plan for increased state access to funding 28 sources other than the general fund of the state. 29 3. Develop procedures to formally notify appropriate state 30 and local agencies of the availability of discretionary federal 31 funds and, when necessary, coordinate the application process. 32 4. 2. Establish an automated information system process 33 database for grants applied for and received and to track 34 congressional activity . 35 -10- LSB 5393HZ (3) 90 ns/jh 10/ 102

H.F. 2708 5. Provide information and counseling to state agencies and 1 political subdivisions of the state concerning the availability 2 and means of obtaining state, federal, and private grants. 3 6. Provide grant application writing assistance and 4 training to state agencies and political subdivisions of the 5 state, directly or through interagency contracts, cooperative 6 agreements, or contracts with third-party providers. 7 7. 3. Monitor the federal register and other federal or 8 state publications to identify funding opportunities , with 9 special emphasis on discretionary grants or other funding 10 opportunities available to the state . 11 8. Periodically review the funding strategies and methods 12 of those states that rank significantly above the national 13 average in the per capita receipt of federal funds to determine 14 whether those strategies and methods could be successfully 15 employed by this state. 16 Sec. 9. Section 8.21, subsection 1, Code 2024, is amended 17 to read as follows: 18 1. Not later than February 1 of each legislative regular 19 session of the general assembly , the governor shall transmit 20 to the legislature general assembly a document to be known as 21 a budget, setting forth the governor’s financial program for 22 the ensuing fiscal year and having the character and scope set 23 forth in sections 8.22 through 8.29 this subchapter . 24 Sec. 10. Section 8.22, subsection 1, Code 2024, is amended 25 to read as follows: 26 1. Part I —— Governor’s budget message. Part I shall consist 27 of the governor’s budget message, in which the governor shall 28 set forth all of the following: 29 a. Part I shall consist of the governor’s budget message, in 30 which the governor shall set forth: 31 (1) (a) The governor’s program for meeting all the 32 expenditure needs of the government for the fiscal year, 33 indicating the classes of funds, general or special, from which 34 appropriations are to be made and the means through which 35 -11- LSB 5393HZ (3) 90 ns/jh 11/ 102

H.F. 2708 the expenditures shall be financed. The governor’s program 1 shall include a single budget request for all capital projects 2 proposed by the governor. The request shall include but is not 3 limited to all of the following: 4 (b) The governor’s program shall include a single budget 5 request for all capital projects proposed by the governor. The 6 request shall include but is not limited to the following: 7 (i) (1) The purpose and need for each capital project. 8 (ii) (2) A priority listing of capital projects. 9 (iii) (3) The costs of acquisition, lease, construction, 10 renovation, or demolition of each capital project. 11 (iv) (4) The identification of the means and source of 12 funding each capital project. 13 (v) (5) The estimated operating costs of each capital 14 project after completion. 15 (vi) (6) The estimated maintenance costs of each capital 16 project after completion. 17 (vii) (7) The consequences of delaying or abandoning each 18 capital project. 19 (viii) (8) Alternative approaches to meeting the purpose or 20 need for each capital project. 21 (ix) (9) Alternative financing mechanisms. 22 (x) (10) A cost-benefit analysis or economic impact of each 23 capital project. 24 b. (1) Financial statements giving in summary form: 25 (a) The condition of the treasury at the end of the last 26 completed fiscal year, the estimated condition of the treasury 27 at the end of the year in progress, and the estimated condition 28 of the treasury at the end of the following fiscal year if the 29 governor’s budget proposals are put into effect. 30 (b) Statements showing the bonded indebtedness of the 31 government, debt authorized and unissued, debt redemption and 32 interest requirements, and condition of the sinking funds, if 33 any. 34 (c) A summary of appropriations recommended for the 35 -12- LSB 5393HZ (3) 90 ns/jh 12/ 102

H.F. 2708 following fiscal year for each department and establishment 1 and for the government as a whole, in comparison with the 2 actual expenditures for the last completed fiscal year and the 3 estimated expenditures for the year in progress. 4 (d) A summary of the revenue, estimated to be received by 5 the government during the following fiscal year, classified 6 according to sources, in comparison with the actual revenue 7 received by the government during the last completed fiscal 8 year and estimated income during the year in progress. 9 (e) A statement of federal funds received in the form of 10 block or categorical grants which were not included in the 11 governor’s budget for the previous fiscal year and a statement 12 of anticipated block grants and categorical grants. The 13 budget shall indicate how the federal funds will be used and 14 the programs to which they will be allocated. The amount of 15 state government funds required to implement the programs to 16 which the federal funds will apply shall also be indicated. 17 The departments and establishments shall provide information 18 to the director on the anticipated federal block grants and 19 categorical grants to be received on or before November 1 of 20 each year. The director shall use this information to develop 21 an annual update of the statement of federal funds received 22 which shall be provided to the general assembly. 23 (f) Other financial statements, data, and comments as in the 24 governor’s opinion are necessary or desirable in order to make 25 known in all practicable detail the financial condition and 26 operation of the government and the effect that the budget as 27 proposed by the governor will have on the financial condition 28 and operation. 29 (g) A separate report containing a complete list of all 30 standing appropriations showing the amount or estimated 31 amount of each appropriation and the purpose for which the 32 appropriation is made. 33 (2) If the estimated revenues of the government for the 34 ensuing fiscal year as set forth in the budget on the basis of 35 -13- LSB 5393HZ (3) 90 ns/jh 13/ 102

H.F. 2708 existing laws, plus the estimated amounts in the treasury at 1 the close of the year in progress, available for expenditure in 2 the ensuing fiscal year are less than the aggregate recommended 3 for the ensuing fiscal year as contained in the budget, the 4 governor shall make recommendations to the legislature in 5 respect to the manner in which the deficit shall be met, 6 whether by an increase in the state tax or the imposition of 7 new taxes, increased rates on existing taxes, or otherwise, 8 and if the aggregate of the estimated revenues, plus estimated 9 balances in the treasury, is greater than the recommended 10 appropriations for the ensuing fiscal year, the governor shall 11 make recommendations in reference to the application of the 12 surplus to the reduction of debt or otherwise, to the reduction 13 in taxation, or to such other action as in the governor’s 14 opinion is in the interest of the public welfare. 15 c. Supplemental estimates for such appropriations as in 16 the governor’s judgment may be necessary on account of laws 17 enacted after transmission of the budget, or as the governor 18 deems otherwise in the public interest. The governor shall 19 accompany such estimates with a statement of the reasons 20 therefor, including the reasons for their omission from the 21 budget. Whenever such supplemental estimates amount to an 22 aggregate which, if they had been contained in the budget, 23 would have required the governor to make a recommendation for 24 the raising of additional revenue, the governor shall make such 25 recommendation. 26 Sec. 11. Section 8.22A, subsection 5, paragraph b, Code 27 2024, is amended to read as follows: 28 b. The amount of revenue for the following fiscal year from 29 gambling revenues and from interest earned on the cash reserve 30 fund and the economic emergency fund to be deposited in the 31 rebuild Iowa infrastructure fund under section 8.57, subsection 32 5 , paragraph “e” “f” . 33 Sec. 12. Section 8.23, subsection 1, unnumbered paragraph 34 1, Code 2024, is amended to read as follows: 35 -14- LSB 5393HZ (3) 90 ns/jh 14/ 102

H.F. 2708 On or before October 1, prior to each legislative regular 1 session of the general assembly , all departments and 2 establishments of the government shall transmit to the director 3 of the department of management , on blanks to be furnished 4 in a format designated by the director, estimates of their 5 expenditure requirements , including every proposed expenditure, 6 for the ensuing fiscal year, together with supporting data and 7 explanations as called for by the director after consultation 8 with the legislative services agency. 9 Sec. 13. Section 8.23, subsection 1, paragraphs a and d, 10 Code 2024, are amended to read as follows: 11 a. The estimates of expenditure requirements shall be 12 in a form specified by the director, and the expenditure 13 requirements shall include all proposed expenditures and shall 14 be prioritized by program or the results to be achieved. The 15 estimates shall be accompanied by performance measures for 16 evaluating the effectiveness of the programs or results. 17 d. The director shall furnish designate standard 18 budget request forms formats to each department or agency 19 establishment of state government. 20 Sec. 14. Section 8.26, Code 2024, is amended to read as 21 follows: 22 8.26 Hearings. 23 Immediately upon the receipt of the tentative budget 24 provided for by section 8.25 the The governor shall make 25 provision for public hearings thereon on the estimates of 26 expenditure requirements required by section 8.23 , at which 27 the governor may require the attendance of the heads and other 28 officers of all departments, establishments , and other persons 29 receiving or requesting the grant of state government funds 30 and the giving by them of such explanations and suggestions as 31 they may be called upon to give or as they may desire to offer 32 in respect to items of requested appropriations in which they 33 are interested. The governor shall also extend invitations 34 to the governor-elect and the director of the department of 35 -15- LSB 5393HZ (3) 90 ns/jh 15/ 102

H.F. 2708 management to be present at such hearings and to participate in 1 the hearings through the asking of questions or the expression 2 of opinion in regard to the items of the tentative budget 3 estimates . 4 Sec. 15. Section 8.29, Code 2024, is amended to read as 5 follows: 6 8.29 Regents universities —— uniform accounting system. 7 The state board of regents, with the approval of the director 8 of the department of management, shall establish a uniform 9 budgeting and accounting system for the institutions of higher 10 education under its control, and shall require each of the 11 institutions of higher education to begin operating operate 12 under the uniform system not later than June 30, 1994 . 13 Sec. 16. Section 8.31, subsections 3 and 5, Code 2024, are 14 amended to read as follows: 15 3. The allotment requests of all departments and 16 establishments collecting governmental fees and other 17 revenue which supplement a state appropriation shall attach 18 to the summary of requests a statement showing how much 19 of the proposed allotments are to be financed from state 20 appropriations, stores, and repayment appropriated receipts. 21 5. If the governor determines that the estimated budget 22 resources during the fiscal year are insufficient to pay all 23 appropriations in full, the reductions shall be uniform and 24 prorated between all departments , agencies, and establishments 25 upon the basis of their respective appropriations. 26 Sec. 17. Section 8.32, Code 2024, is amended to read as 27 follows: 28 8.32 Conditional availability of appropriations —— 29 applicability of chapter . 30 1. All appropriations made to any department or 31 establishment of the government as receive receivable or 32 collect collectable moneys available for expenditure by them 33 under present laws law , are declared to be in addition to such 34 repayment appropriated receipts, and such appropriations are 35 -16- LSB 5393HZ (3) 90 ns/jh 16/ 102

H.F. 2708 to be available as and to the extent that such receipts are 1 insufficient to meet the costs of administration, operation, 2 and maintenance, or and public improvements of such departments 3 or establishments, provided all of the following conditions are 4 met : 5 a. Provided, that such Such receipts or collections shall be 6 are deposited in the state treasury as part of the general fund 7 or special revenue funds in all cases, except those collections 8 made by the state fair board, the institutions under the state 9 board of regents, and the natural resource commission. 10 b. Provided further, that no repayment Appropriated receipts 11 shall be are not available for expenditures until allotted as 12 provided in section 8.31 ; and . 13 c. Provided further, that the The collection of repayment 14 appropriated receipts by the state fair board and the 15 institutions under the state board of regents shall be are 16 deposited in a bank or banks duly designated and qualified as 17 state depositories, in the name of the state of Iowa, for the 18 use of such boards and institutions, and such funds shall be 19 are available only on the check of such boards or institutions 20 depositing them, which are hereby authorized to withdraw such 21 funds, but only after allotment by the governor as provided in 22 section 8.31 ; and . 23 d. 2. a. Provided further, that this This chapter shall 24 does not apply to endowment or private purpose trust funds or 25 to gifts to institutions owned or controlled by the state or to 26 the income from such endowment or private purpose trust funds, 27 or to private custodial funds belonging to students or inmates 28 of state institutions. 29 2. b. The provisions of this This chapter shall not be 30 construed to prohibit the state fair board from creating an 31 emergency or sinking fund out of the receipts of the state fair 32 and state appropriation for the purpose of taking care of any 33 emergency that might arise beyond the control of the board of 34 not to exceed three hundred thousand dollars. Neither shall 35 -17- LSB 5393HZ (3) 90 ns/jh 17/ 102

H.F. 2708 this 1 c. This chapter shall not be construed to prohibit the state 2 fair board from retaining an additional sum of not to exceed 3 three hundred fifty thousand dollars to be used in carrying out 4 the provisions of chapter 173 . 5 Sec. 18. Section 8.35, Code 2024, is amended to read as 6 follows: 7 8.35 General supervisory control. 8 The governor and the director of the department of 9 management and any officer of the department of management, 10 when authorized by the governor, are hereby authorized to make 11 such inquiries regarding the receipts, custody, and application 12 of state government funds, existing organization, activities, 13 and methods of business of the departments and establishments, 14 assignments of particular activities to particular services 15 and regrouping of such services, as in the opinion of the 16 governor, will enable the governor to make recommendations to 17 the legislature general assembly , and, within the scope of the 18 powers possessed by the governor, to order action to be taken, 19 having for their purpose to bring about increased economy and 20 efficiency in the conduct of the affairs of government. 21 Sec. 19. Section 8.35A, subsection 4, Code 2024, is amended 22 to read as follows: 23 4. A government agency which receives state government 24 funds directly from the state or indirectly through a political 25 subdivision as directed by statute and which is not a city, 26 county, or school district is subject to this subsection . A 27 government agency which is subject to this subsection shall 28 submit a copy of its budget to the legislative services agency, 29 identifying it as being submitted under this subsection , when 30 the budget of that government agency has received approval 31 from the governing head or body of that agency. The copy of 32 the budget submitted to the legislative services agency shall 33 be on the budget forms provided in the format designated by 34 the department of management to state agencies under this 35 -18- LSB 5393HZ (3) 90 ns/jh 18/ 102