Senate File 459 - Reprinted SENATE FILE 459 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO SF 297) (As Amended and Passed by the Senate March 25, 2015 ) A BILL FOR An Act concerning employment of and merit system protection 1 for administrative law judges, workers’ compensation 2 commissioners, and the administrator of the administrative 3 hearings division of the department of inspections and 4 appeals. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 SF 459 (3) 86 ec/rj/jh

S.F. 459 Section 1. Section 8A.412, subsection 11, Code 2015, is 1 amended to read as follows: 2 11. Professional employees under the supervision of the 3 attorney general, the state public defender, the secretary 4 of state, the auditor of state, the treasurer of state, and 5 the public employment relations board. However, employees of 6 the consumer advocate division of the department of justice, 7 other than the consumer advocate, and administrative law judges 8 appointed or employed by the public employment relations board, 9 are subject to the merit system. 10 Sec. 2. Section 8A.415, subsection 1, paragraph b, Code 11 2015, is amended to read as follows: 12 b. If not satisfied, the employee may, within thirty 13 calendar days following the director’s response, file an 14 appeal with the public employment relations board. The 15 hearing shall be conducted in accordance with the rules of the 16 public employment relations board and the Iowa administrative 17 procedure Act, chapter 17A . Decisions rendered shall be based 18 upon a standard of substantial compliance with this subchapter 19 and the rules of the department. Decisions by the public 20 employment relations board constitute final agency action. 21 However, if the employee is an administrative law judge 22 appointed or employed by the public employment relations board, 23 the employee’s appeal shall be heard by an administrative law 24 judge employed by the administrative hearings division of the 25 department of inspections and appeals in accordance with the 26 provisions of section 10A.801, whose decision shall constitute 27 final agency action. 28 Sec. 3. Section 8A.415, subsection 2, paragraph b, Code 29 2015, is amended to read as follows: 30 b. If not satisfied, the employee may, within thirty 31 calendar days following the director’s response, file an appeal 32 with the public employment relations board. The employee has 33 the right to a hearing closed to the public, unless a public 34 hearing is requested by the employee. The hearing shall 35 -1- SF 459 (3) 86 ec/rj/jh 1/ 3

S.F. 459 otherwise be conducted in accordance with the rules of the 1 public employment relations board and the Iowa administrative 2 procedure Act, chapter 17A . If the public employment relations 3 board finds that the action taken by the appointing authority 4 was for political, religious, racial, national origin, sex, 5 age, or other reasons not constituting just cause, the employee 6 may be reinstated without loss of pay or benefits for the 7 elapsed period, or the public employment relations board may 8 provide other appropriate remedies. Decisions by the public 9 employment relations board constitute final agency action. 10 However, if the employee is an administrative law judge 11 appointed or employed by the public employment relations board, 12 the employee’s appeal shall be heard by an administrative law 13 judge employed by the administrative hearings division of the 14 department of inspections and appeals in accordance with the 15 provisions of section 10A.801, whose decision shall constitute 16 final agency action. 17 Sec. 4. Section 10A.801, subsection 3, paragraph a, Code 18 2015, is amended to read as follows: 19 a. The department shall employ a sufficient number of 20 administrative law judges to conduct proceedings for which 21 agencies are required, by section 17A.11 or any other provision 22 of law, to use an administrative law judge employed by the 23 division. An administrative law judge employed by the division 24 shall not perform duties inconsistent with the judge’s duties 25 and responsibilities as an administrative law judge and shall 26 be located in an office that is separated from the offices of 27 the agencies for which that person acts as a presiding officer. 28 Administrative The administrator and all administrative law 29 judges shall be covered by the merit system provisions of 30 chapter 8A, subchapter IV . 31 Sec. 5. Section 86.2, subsection 1, paragraphs a and b, Code 32 2015, are amended to read as follows: 33 a. Chief deputy workers’ compensation commissioners for 34 whose acts the commissioner is responsible, who are exempt from 35 -2- SF 459 (3) 86 ec/rj/jh 2/ 3

S.F. 459 who shall be appointed and serve pursuant to the merit system 1 provisions of chapter 8A, subchapter IV , and who shall serve at 2 the pleasure of the commissioner unless the commissioners are 3 otherwise covered by a collective bargaining agreement . 4 b. Deputy workers’ compensation commissioners for whose 5 acts the commissioner is responsible and who shall serve at the 6 pleasure of the commissioner be appointed and serve pursuant 7 to the merit system provisions of chapter 8A, subchapter IV, 8 unless the commissioners are otherwise covered by a collective 9 bargaining agreement . 10 Sec. 6. Section 96.6, subsection 3, paragraph b, Code 2015, 11 is amended to read as follows: 12 b. Appeals from the initial determination shall be heard 13 by an administrative law judge employed by the department who 14 shall be covered by the merit system provisions of chapter 15 8A, subchapter IV, unless the administrative law judge is 16 otherwise covered by a collective bargaining agreement . An 17 administrative law judge’s decision may be appealed by any 18 party to the employment appeal board created in section 19 10A.601 . The decision of the appeal board is final agency 20 action and an appeal of the decision shall be made directly to 21 the district court. 22 -3- SF 459 (3) 86 ec/rj/jh 3/ 3