S.F. _____ H.F. _____ Section 1. Section 8.22, subsection 4, Code 2024, is amended 1 to read as follows: 2 4. Part IV —— Strategic plan. Part IV shall include an 3 explanation that correlates the budget with the enterprise 4 strategic plan adopted priorities established pursuant to 5 section 8E.204 8E.205 . The budget shall provide an explanation 6 of appropriations recommended for the administration and 7 maintenance of an agency as defined in section 8E.103 with 8 the general evaluation of the agency in meeting enterprise 9 strategic goals priorities , including identifying goals that 10 require legislation. 11 Sec. 2. Section 8.23, subsection 1, paragraph b, Code 2024, 12 is amended to read as follows: 13 b. The budget estimates for an agency as defined in 14 section 8E.103 shall be based on achieving goals contained 15 in the enterprise strategic plan priorities and the agency’s 16 strategic plan as provided for in chapter 8E . The estimates 17 shall be accompanied by a description of the measurable and 18 other results to be achieved by the agency. Performance 19 measures shall be based on the goals developed pursuant to 20 sections 8E.204, 8E.205 , 8E.206 , and 8E.208 . The estimates 21 shall be accompanied by an explanation of the manner in which 22 appropriations requested for the administration and maintenance 23 of the agency meet goals contained in the enterprise strategic 24 plan priorities and the agency’s strategic plan, including 25 identifying goals that require legislation. 26 Sec. 3. Section 8.35A, subsection 5, Code 2024, is amended 27 to read as follows: 28 5. The department shall transmit the enterprise strategic 29 plan priorities and related information and an agency shall 30 transmit its agency strategic plan, performance report, 31 and related information as required by chapter 8E to the 32 legislative services agency. 33 Sec. 4. Section 8E.103, Code 2024, is amended by striking 34 the section and inserting in lieu thereof the following: 35 -1- LSB 5388XD (5) 90 sc/ns 1/ 7

S.F. _____ H.F. _____ 8E.103 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Agency” means all departments or boards within the 4 executive branch, excluding agencies associated with elected 5 officials. 6 2. “Department” means the department of management. 7 Sec. 5. Section 8E.104, Code 2024, is amended to read as 8 follows: 9 8E.104 Administration. 10 The department shall oversee the administration of this 11 chapter in cooperation with agencies as provided in this 12 chapter . The department and shall adopt rules , guidance, and 13 guidelines as necessary in order to administer this chapter . 14 However, the state board of regents shall oversee and implement 15 the provisions of this chapter for institutions governed under 16 chapter 262 . For purposes of this chapter, where records and 17 data are specifically required to support enterprise-wide 18 initiatives, planning or policy development, cross-agency 19 collaboration, or performance or risk assessments, each agency 20 shall share records or data with the department notwithstanding 21 any other provision of law restricting or limiting such 22 sharing. 23 Sec. 6. Section 8E.201, Code 2024, is amended to read as 24 follows: 25 8E.201 Agency duties and powers. 26 Each agency shall administer the application of this chapter 27 to the agency in cooperation with the department. Each agency 28 shall measure and monitor operations and progress toward 29 achieving goals which relate to programs administered by the 30 agency pursuant to the enterprise strategic plan priorities , 31 the agency strategic plan, and the agency performance 32 operational plan. 33 Sec. 7. Section 8E.202, Code 2024, is amended by striking 34 the section and inserting in lieu thereof the following: 35 -2- LSB 5388XD (5) 90 sc/ns 2/ 7

S.F. _____ H.F. _____ 8E.202 Access. 1 The department and each agency shall provide for the widest 2 possible dissemination of and access to agency strategic plans, 3 agency operational plans, data, and reports, while assuring 4 adequate protections are in place to safeguard sensitive 5 and confidential information and data. This section does 6 not require the department or an agency to publicly release 7 information which is classified as a confidential record under 8 law. 9 Sec. 8. Section 8E.204, Code 2024, is amended to read as 10 follows: 11 8E.204 Adoption and revision of an enterprise strategic plan 12 and agency Agency strategic plans. 13 1. The department, in consultation with agencies, shall 14 adopt an enterprise strategic plan. Each agency shall adopt 15 an agency strategic plan aligned with the enterprise strategic 16 plan priorities where possible. Plans must follow a format 17 and include elements as determined by the department in 18 consultation with agencies. The purposes of agency strategic 19 plans are to promote long-term and broad thinking, focus on 20 results for Iowans, and facilitate implementation of enterprise 21 priorities . 22 2. The department or an Each agency shall adopt and 23 revise a strategic plan which includes input from customers 24 and stakeholders following an opportunity for broad public 25 participation in strategic planning. The department or an 26 agency developing or revising a strategic plan shall include 27 input from state employees, including written and oral 28 comments. Upon adoption of the enterprise strategic plan by 29 the department, the plan shall be disseminated to each agency 30 and made available to all state employees. Upon adoption of 31 the agency’s strategic plan, the agency shall provide the 32 department with a copy of the agency strategic plan and make 33 the strategic plan available to all agency employees. The 34 enterprise strategic plan and all All agency strategic plans 35 -3- LSB 5388XD (5) 90 sc/ns 3/ 7

S.F. _____ H.F. _____ shall be available to the public. 1 3. The department and agencies shall annually review 2 the enterprise strategic plan. An agency shall conduct an 3 annual review of its agency strategic plan. Revisions in the 4 strategic plan may be prompted by a reexamination of enterprise 5 or agency priorities or the need to redirect state resources 6 based on new circumstances, including events or trends. 7 Sec. 9. Section 8E.205, Code 2024, is amended by striking 8 the section and inserting in lieu thereof the following: 9 8E.205 Enterprise priorities. 10 The enterprise priorities, as established annually by the 11 governor, shall serve as a launch point for developing and 12 updating agency strategic plans and identifying the major areas 13 of focus in achieving the governor’s vision for the state of 14 Iowa. 15 Sec. 10. Section 8E.207, Code 2024, is amended by striking 16 the section and inserting in lieu thereof the following: 17 8E.207 Agency operational plans. 18 Each agency shall develop a plan to guide its day-to-day 19 operations. The plan must outline the agency’s organizational 20 structure, the general duties of its organizational subunits, 21 and metrics and measures used to monitor operations, as well as 22 highlight initiatives and targets related to agency strategic 23 plan goals or other improvement goals. Agencies shall update 24 operational plans annually. 25 Sec. 11. Section 8E.208, Code 2024, is amended to read as 26 follows: 27 8E.208 Performance Metrics and measures , performance targets, 28 and performance data . 29 1. The department, in consultation with agencies, shall 30 establish guidelines that will be used to create performance 31 measures, performance targets, and data sources for each agency 32 and each agency’s functions. Each agency shall identify, 33 collect, and maintain data for metrics and measures critical to 34 monitoring and assessing the performance of their operations. 35 -4- LSB 5388XD (5) 90 sc/ns 4/ 7

S.F. _____ H.F. _____ 2. Performance measurement Measurement is essential to 1 monitoring operations and ensuring adequate accountability 2 over public resources and the exchange of public resources 3 for desirable and acceptable public benefits . Performance 4 measurement must include an assessment of whether agencies 5 Each agency shall have adequate control procedures in place, 6 and be able to assess whether those control procedures are 7 operating effectively, to determine that agencies are receiving 8 or providing services of adequate quality, public resources are 9 being used effectively and efficiently, and public resources 10 are being used for appropriate and meaningful activities. 11 Sec. 12. Section 8E.209, Code 2024, is amended by striking 12 the section and inserting in lieu thereof the following: 13 8E.209 Records and data. 14 Each agency is responsible for classifying records and data 15 to facilitate safeguarding its own information and making that 16 information available to appropriate audiences. The department 17 may review any records and data an agency collects, creates, 18 and maintains for purposes of monitoring their operations and 19 assessing performance. Upon the department’s request, an 20 agency shall provide the department with and routinely update 21 such records and data that support enterprise-wide initiatives, 22 planning or policy development, cross-agency collaboration, or 23 performance or risk assessments. Data must be as granular as 24 possible and include key dates and characteristics critical to 25 monitoring and assessing performance and facilitating insights. 26 Each agency shall provide data in a format required by the 27 department and update the data on a schedule appropriate for 28 the data. 29 Sec. 13. Section 8E.210, Code 2024, is amended to read as 30 follows: 31 8E.210 Reporting requirements . 32 1. Each agency shall prepare an annual performance report 33 stating the agency’s reports highlighting progress in meeting 34 performance targets and achieving its goals consistent with 35 -5- LSB 5388XD (5) 90 sc/ns 5/ 7

S.F. _____ H.F. _____ the enterprise strategic plan, based on measures and targets 1 outlined in its agency strategic plan , and its performance 2 operational plan using data . An annual performance report 3 shall include a description of how the agency has reallocated 4 human and material resources in the previous fiscal year. 5 The department, in conjunction with agencies, shall develop 6 guidelines for annual performance reports, including but not 7 limited to a reporting schedule. An agency may incorporate its 8 annual performance report into another report that the agency 9 is required to submit to the department. 10 2. The annual performance reporting Reporting required 11 under this section shall be used to improve performance, 12 improve strategic planning and policy decision making, better 13 allocate human and material resources, recognize superior 14 performance, and inform Iowans about their return from 15 investment in state government. 16 Sec. 14. REPEAL. Sections 8E.105, 8E.203, 8E.206, and 17 8E.301, Code 2024, are repealed. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill authorizes the department of management (DOM) to 22 create guidance and guidelines to administer the accountable 23 government Act (Code chapter 8E) and eliminates the role of the 24 board of regents in overseeing and implementing the accountable 25 government Act for the institutions the board governs. 26 The bill requires agencies to share records and data with 27 DOM as necessary for enterprise-wide initiatives, planning or 28 policy development, cross-agency collaboration, and performance 29 or risk assessments. 30 The bill replaces the term “enterprise strategic plan” 31 with “enterprise priorities” and replaces the term “agency 32 performance plan” with “agency operational plan”. 33 The bill strikes the requirement that DOM provide employees 34 and the public a way to give input on DOM and agency strategic 35 -6- LSB 5388XD (5) 90 sc/ns 6/ 7

S.F. _____ H.F. _____ plans, strikes DOM’s obligation to adopt, develop, revise, 1 and disseminate a strategic plan, and strikes DOM’s and 2 the agencies’ obligation to review the enterprise strategic 3 plan. The bill also strikes the requirement that an agency 4 align individual performance instruments with the agency’s 5 operational plan. 6 The bill strikes DOM’s obligation to establish guidelines 7 for performance measures, performance targets, and data 8 sources for each agency and each agency’s functions and instead 9 requires each agency to identify, collect, and maintain data 10 necessary for monitoring and assessing their operations. 11 The bill eliminates DOM’s obligation to consult with the 12 legislative services agency, the auditor of state, and agencies 13 when establishing and implementing a system of periodic 14 performance audits. The bill also eliminates DOM’s obligation 15 to provide for an analysis of the performance data’s integrity 16 and validity in conjunction with the legislative services 17 agency and the auditor of state. Instead, the bill requires 18 each agency to safeguard its own records and data and provide 19 DOM with data and records upon DOM’s request. The bill also 20 requires an agency to routinely update the data and records to 21 allow for DOM to monitor the agency’s performance. 22 The bill strikes the requirement that each agency annually 23 submit a report to DOM that assesses progress in the agency’s 24 goals. 25 The bill repeals the requirement that DOM conduct an 26 evaluation of and report on the effectiveness of its strategic 27 planning by January 2006 and repeals DOM’s obligation to 28 establish methodologies for making major investment decisions 29 and procedures for implementing such methodologies and 30 reporting to the governor and the legislative services agency 31 on the implementation. 32 By operation of law, the bill affects the term “agency” as 33 used in Code sections 8.22 (governor’s budget) and 8.23 (annual 34 departmental budget estimates). 35 -7- LSB 5388XD (5) 90 sc/ns 7/ 7