SSB 3058 (LSB 5370DP (3) 90)

SENATE/HOUSE FILE _____

BY  (PROPOSED DEPARTMENT OF ADMINISTRATIVE SERVICES BILL)

A BILL FOR

An Act relating to the department of administrative services’ notification requirements for internal service funds.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8A.123, subsection 1, Code 2024, is amended to read as follows:
   1.  Activities of the department shall be accounted for within the general fund of the state, except that the director may establish and maintain internal service funds in accordance with generally accepted accounting principles, as defined in section 8.57, subsection 4, for activities of the department which are primarily funded from billings to governmental entities for services rendered by the department. The establishment of an internal service fund is subject to the approval of the director of the department of management and the concurrence of the auditor of state. At least ninety days prior to the establishment of an internal service fund pursuant to this section, the director shall notify in writing the general assembly, including the legislative council, legislative fiscal committee, and the legislative services agency.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Code section 8A.123 authorizes the department of administrative services (DAS) to establish and maintain internal service funds for activities primarily funded by DAS’s billings to governmental entities. The director of DAS is required to notify in writing the general assembly, including the legislative council, legislative fiscal committee, and legislative services agency, at least 90 days prior to the establishment of an internal service fund. Under Code section 8A.126, if a service is no longer provided and insufficient funds remain in an internal service fund to pay outstanding debts and liabilities, the director of DAS must notify the general assembly and request that moneys be appropriated from the general fund of the state to pay such debts and liabilities.
   This bill strikes DAS’s obligation to notify the general assembly, legislative council, legislative fiscal committee, and legislative services agency at least 90 days before DAS establishes an internal service fund.