SF 437 (LSB 1174XS (4) 91)

SENATE FILE 437

BY  WEINER, BENNETT, DONAHUE, DOTZLER, WINCKLER, CELSI, TOWNSEND, PETERSEN, and QUIRMBACH

A BILL FOR

An Act relating to certain persons who leave legislative or executive branch service, including prohibiting certain employment, lobbying activities, and use of influence, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 68B.5A, subsection 4, Code 2025, is amended to read as follows:
   4.  A person who is subject to the requirements of subsection 1 shall not do any of the following within two years after the termination of service or employment become: 
   a.  Become a lobbyist.
   b.  Directly authorize or permit lobbying by another individual as part of the person’s employment.
    Sec. 2.  Section 68B.7, subsection 1, Code 2025, is amended to read as follows:
   1.  A person who has served as an official, state employee of a state agency, member of the general assembly, or legislative employee shall not do any of the following within a period of two years after the termination of such service or employment: 
   a.  Obtain employment in which the person will take direct advantage, unavailable to others, or receive compensation for any services rendered on behalf of any person, firm, corporation, or association in relation to any case, proceeding, or application with respect to which the person was directly concerned and personally participated during the period of service or employment.
   b.  Be interested in a contract with this state or a political subdivision of this state if, during the legislative session in which the person ends service or employment, the contract was authorized by an enacted law or order made by any board of which the person was a member.
    Sec. 3.  NEW SECTION.  68B.9  State agency restrictions.
   A state agency or local government agency shall not enter into a contract with or take any action favorably selecting any business or person represented by a person who served as a statewide elected official, the executive or administrative head of an agency of state government, the deputy executive or administrative head of an agency of state government, or a member of the general assembly within the preceding year if the value of the contract or action is over one thousand dollars and the contract is a direct result of an official act by the person.
    Sec. 4.  Section 68B.34, Code 2025, is amended to read as follows:
   68B.34  Additional penalty.
   In addition to any penalty contained in any other provision of law, a person who knowingly and intentionally violates a provision of sections 68B.2A through 68B.8 68B.9, sections 68B.22 through 68B.24, or sections 68B.35 through 68B.38 is guilty of a serious misdemeanor and may be reprimanded, suspended, or dismissed from the person’s position or otherwise sanctioned.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to former statewide elected officials, heads and deputy heads of an agency, members of the general assembly, persons who served as an official, employees of a state agency, and legislative employees.
   Under current law, former statewide elected officials, heads and deputy heads of an agency, and members of the general assembly are prohibited from becoming a lobbyist within two years after the termination of service or employment. The bill also prohibits such persons from directly authorizing or permitting lobbying by another individual as part of such person’s employment.
   Under current law, a person who has served as an official, state employee of a state agency, member of the general assembly, or legislative employee is prohibited from receiving compensation for any services rendered on behalf of any person, firm, corporation, or association in relation to any case, proceeding, or application with respect to which the person was directly concerned and personally participated within a period of two years after the termination of service or employment. The bill also prohibits such persons from obtaining employment in which the person will take direct advantage, unavailable to others. Such persons are also prohibited from being interested in a contract with Iowa or a political subdivision of Iowa if, during the legislative session in which the person ends service or employment, the contract was authorized by an enacted law or order made by any board of which the person was a member.
   The bill prohibits a state agency or local government agency from entering into a contract with or taking any action favorably selecting any business or person represented by a person who served as a statewide elected official, the executive or administrative head of an agency of state government, the deputy executive or administrative head of an agency of state government, or a member of the general assembly within the preceding year if the value of the contract or action is over $1,000 and the contract is a direct result of an official act by the person.
   By operation of law, a person who knowingly and intentionally violates Code section 68B.5A, 68B.7, or 68B.9, including as amended or enacted by the bill, as applicable, is guilty of a serious misdemeanor and may be reprimanded, suspended, or dismissed from the person’s position or otherwise sanctioned. A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $430 but not more than $2,560.