General Assembly: 80 (2003 Regular GA) - Chapter 145 - Department of administrative services — establishment and authority


Published: 2003-05-23

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335 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

July 1, 2003, and ending June 30, 2013, there is transferred from the primary road fund to the transfer of jurisdiction fund one and seventy-five hundredths percent of the moneys credited to the primary road fund pursuant to section 312.2, subsection 1. b. For each fiscal year in the period beginning July 1, 2003, and ending June 30, 2013, there

is appropriated the following percentages of the moneys deposited in the transfer of jurisdic- tion fund for the fiscal year for the following purposes: (1) Seventy-five percent of the moneys shall be apportioned among the counties and cities

that assume jurisdiction of primary roads pursuant to section 306.8A. Such apportionment shall be made based upon the specific construction needs identified for the specific counties and cities in the transfer of jurisdiction report on file with the department pursuant to section 306.8A. All funds, including any interest or other earnings on the funds, received by a county from the transfer of jurisdiction fund shall be deposited in the secondary road fund of the county to be used only for themaintenance and construction of roads under the county’s juris- diction. All funds received by a city from the transfer of jurisdiction fund shall be used only for the maintenance and construction of roads under the city’s jurisdiction. (2) Twenty-twoandone-half percent of themoneys shall bedeposited in the secondary road

fund. (3) Two and one-half percent of the moneys shall be deposited in the street construction

fund of the cities. NEW SUBSECTION. 7. For the fiscal year beginning July 1, 2013, and ending June 30,

2014, and each subsequent fiscal year, there is transferred the following percentages of the moneys credited to the primary road fund pursuant to section 312.2, subsection 1, to the fol- lowing funds: a. One and five hundred seventy-five thousandths percent to the secondary road fund. b. One hundred seventy-five thousandths of one percent to the street construction fund of

the cities.

Approved May 23, 2003

_________________________

CH. 145CH. 145

CHAPTER 145

DEPARTMENT OF ADMINISTRATIVE SERVICES — ESTABLISHMENT AND AUTHORITY

H.F. 534

AN ACT providing for the reorganization of certain state departments by establishing a de- partment of administrative services, making related changes, providing penalties, and providing an effective date.

Be It Enacted by the General Assembly of the State of Iowa:

DIVISION I DEPARTMENT OF ADMINISTRATIVE SERVICES

ARTICLE 1 DEPARTMENT OF ADMINISTRATIVE SERVICES

Section 1. NEW SECTION. 8A.101 DEFINITIONS. As used in this chapter, unless the context otherwise requires: 1. “Agency” or “state agency” means a unit of state government, which is an authority,

board, commission, committee, council, department, examining board, or independent

336LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

agency as defined in section 7E.4, including but not limited to each principal central depart- ment enumerated in section 7E.5. However, “agency” or “state agency” does not mean any of the following: a. The office of the governor or the office of an elective constitutional or statutory officer. b. The general assembly, or any office or unit under its administrative authority. c. The judicial branch, as provided in section 602.1102. d. A political subdivision of the state or its offices or units, including but not limited to a

county, city, or community college. 2. “Department” means the department of administrative services. 3. “Director” means the director of the department of administrative services or the direc-

tor’s designee. 4. “Governmental entity”meansanyunit of government in the executive, legislative, or judi-

cial branchof government; an agency or political subdivision; anyunit of another stategovern- ment, including its political subdivisions; any unit of the United States government; or any as- sociation or other organization whose membership consists primarily of one or more of any of the foregoing. 5. “Governmental subdivision” means a county, city, school district, or combination there-

of. 6. “Public records” means the same as defined in section 22.1.

Sec. 2. NEW SECTION. 8A.102 DEPARTMENT CREATED—DIRECTOR APPOINTED. 1. The department of administrative services is created. The director of the department

shall be appointed by the governor to serve at the pleasure of the governor and is subject to confirmationby the senate. If the office becomes vacant, the vacancy shall be filled in the same manner as provided for the original appointment. 2. The person appointed as director shall be professionally qualified by education and have

no less than five years’ experience in the field ofmanagement, public or private sector person- nel administration, including the application of merit principles in employment, financial management, and policy development and implementation. The appointment shall be made without regard for political affiliation. The director shall not be a member of any local, state, or national committee of a political party, an officer ormember of a committee in any partisan political club or organization, or hold or be a candidate for a paid elective public office. The director is subject to the restrictionsonpolitical activity provided in section 8A.416. Thegover- nor shall set the salary of the director within pay grade nine.

Sec. 3. NEW SECTION. 8A.103 DEPARTMENT — PURPOSE — MISSION. The department is created for the purpose of managing and coordinating the major re-

sources of state government including the human, financial, physical, and information re- sources of state government. The mission of the department is to implement a world-class, customer-focused organiza-

tion that provides a complement of valued products and services to the internal customers of state government.

Sec. 4. NEW SECTION. 8A.104 POWERS AND DUTIES OF THE DIRECTOR. The director shall do all of the following: 1. Coordinate the internal operations of the department and develop and implement poli-

cies and procedures designed to ensure the efficient administration of the department. 2. Appoint all personnel deemed necessary for the administration of the department’s func-

tions as provided in this chapter. 3. Prepare an annual budget for the department. 4. Develop and recommend legislative proposals deemed necessary for the continued effi-

ciency of the department’s functions, and review legislative proposals generated outside the department which are related to matters within the department’s purview. 5. Adopt rules deemed necessary for the administration of this chapter in accordance with

chapter 17A.

337 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

6. Develop andmaintain support systemswithin the department to provide appropriate ad- ministrative support and sufficient data for the effective and efficient operation of state gov- ernment. 7. Enter into contracts for the receipt and provision of services as deemed necessary. The

director and the governor may obtain and accept grants and receipts to or for the state to be used for the administration of the department’s functions as provided in this chapter. 8. Establish the internal organization of the department and allocate and reallocate duties

and functions not assigned by law to an officer or any subunit of the department to promote economic and efficient administration and operation of the department. 9. Install a records system for the keeping of recordswhich are necessary for a proper audit

and effective operation of the department. 10. Determine which risk exposures shall be self-insured or assumed by the state with re-

spect to loss and loss exposures of state government. 11. Keep in the director’s office a complete record containing an itemized account of all

state property, including furniture and equipment, under the director’s care and control, and plans and surveys of the public grounds, buildings, and underground constructions at the seat of government and of the state laboratories facility in Ankeny. 12. Serve as the chief information officer for the state. 13. Exercise and perform such other powers and duties as may be prescribed by law.

Sec. 5. NEW SECTION. 8A.105 PROHIBITED INTERESTS — PENALTY. The director shall not have any pecuniary interest, directly or indirectly, in any contract for

supplies furnished to the state, or in any business enterprise involving any expenditure by the state. A violation of the provisions of this section shall be a serious misdemeanor, and upon conviction, the director shall be removed from office in addition to any other penalty.

Sec. 6. NEW SECTION. 8A.106 PUBLIC RECORDS. 1. The records of the department, except personal information in an employee’s file if the

publication of such information would serve no proper public purpose, shall be public records and shall be open to public inspection, subject to reasonable rules as to the time and manner of inspection which may be prescribed by the director. However, the department shall not be required to release financial information, business, or product plans which if released would give advantage to competitors and serve no public purpose, relating to commercial operations conducted or intended to be conducted by the department. 2. The state agency that is the lawful custodian of a public record shall be responsible for

determining whether a record is required by federal or state statute to be confidential. The transmission of a record by a state agency by use of electronicmeans established,maintained, ormanaged by the department shall not constitute a transfer of the legal custody of the record from the individual state agency to the department or to any other person or entity. 3. The department shall not have authority to determinewhether an individual state agency

should automate records of which the individual state agency is the lawful custodian. Howev- er, the departmentmay encourage state agencies to implement electronic access to public rec- ords. 4. A state agency shall not limit access to a record by requiring a citizen to receive the record

electronically as the only means of providing the record. A person shall have the right to ex- amine and copy a printed form of a public record as provided in section 22.2, unless the public record is confidential.

Sec. 7. NEW SECTION. 8A.107 OATHS AND SUBPOENAS. The director may administer oaths, subpoena witnesses, and compel the production of

books and papers pertinent to any investigation or hearing authorized by this chapter. A per- son who fails to appear in response to a subpoena or produce books or papers pertinent to the investigation or hearing or who knowingly gives false testimony is guilty of a simple misde- meanor.

338LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

Sec. 8. NEW SECTION. 8A.108 ACCEPTANCE OF FUNDS. The department may receive and accept donations, grants, gifts, and contributions in the

formofmoneys, services,materials, or otherwise, from theUnitedStates or anyof its agencies, from this state or any of its agencies, or from any other person, and may use or expend such moneys, services, materials, or other contributions, or issue grants, in carrying out the opera- tions of the department. All federal grants to and the federal receipts of the department are hereby appropriated for the purpose set forth in such federal grants or receipts.

Sec. 9. NEW SECTION. 8A.109 FEDERAL FUNDS. 1. Neither the provisions of this chapter nor rules adopted pursuant to this chapter shall ap-

ply in any situation where such provision or rule is in conflict with a governing federal regula- tion or where the provision or rule would jeopardize the receipt of federal funds. 2. If it is determined by the attorney general that any provision of this chapter would cause

denial of fundsor services from theUnitedStates governmentwhichwould otherwise be avail- able to an agency of this state, such provision shall be suspended as to such agency, but only to the extent necessary to prevent denial of such funds or services.

Sec. 10. NEW SECTION. 8A.110 STATE EMPLOYEE SUGGESTION SYSTEM. 1. There is created a state employee suggestion system for the purpose of encouraging state

employees to develop and submit ideaswhichwill reduce costs and increase efficiency in state government and which will make monetary and other awards to state employees whose cost reduction ideas are adopted under the system. 2. The department shall provide necessary personnel for the efficient operation of the sys-

tem. The department shall adopt rules as necessary for the administration of the system and to establish the award policy under which the system will operate. The rules shall include: a. Eligibility standards and restrictions for both the state employee submitting the sugges-

tion and the suggestion being submitted. The rules shall provide that suggestions relating to academic affairs, including teaching, research, and patient care programs at a university teaching hospital, are ineligible. b. Procedures for submitting and evaluating suggestions, including the responsibilities of

each person involved in the system and providing that the final decision to implement shall be made by the director of the applicable state agency. c. The method of presentation of awards to employees. d. The method of promoting the suggestion program in the broadest possible manner to

state employees. e. Any other policies necessary to properly administer the system. 3. a. When a suggestion is implemented and results in a direct cost reduction within state

government, the suggester shall be awarded ten percent of the first year’s net savings, not ex- ceeding ten thousand dollars, and a certificate. A cash award shall not be awarded for a suggestion which saves less than one hundred dollars during the first year of implementation. The state agency head shall approve all awards and determine the amount to be awarded. Ap- peals of award amounts shall be submitted to the director whose decision is final. b. Certificates shall be awarded to suggesters of implemented suggestions that result in a

direct cost reduction of less than one hundred dollars. The state agency head shall make the determination as to who will receive certificates. That decision is final. 4. An award made pursuant to this section shall be paid for out of the appropriated funds

of the state agency realizing the cost savings, but the payment for awards shall not violate any state or federal contract, law, or regulation, or impair any agency contractual obligation. 5. a. A state agency shall keep records of each suggestion implemented and the cost savings

resulting from the suggestion for a period of one year from the date of implementation of the suggestion. b. The director shall file a report with the governor and the general assembly for each fiscal

year, relating to the administration and implementation of the suggestion system and the benefits for the state, the state departments, and state employees.

339 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

6. The ability of employees topatent ideas submitted under this section is subject to all other agency rules and Code requirements pertaining to patents.

Sec. 11. NEW SECTION. 8A.121 FINANCING DEPARTMENT SERVICES — CUSTOM- ER COUNCILS. 1. The department shall establish a process bywhich the department shall determinewhich

services provided by the department shall be funded by an appropriation to the department and which services shall be funded by the governmental entity receiving the service. 2. a. For services which the department determines shall be funded by the governmental

entity receiving the service, the department shall establish a process for determining whether the department shall be the sole provider of the service or not. b. If the department determines that it shall be the sole provider of a service, the department

shall establish, by rule, a customer council responsible for overseeing departmental opera- tions with regard to the service provided to ensure that the department meets the needs of af- fected governmental entities and the citizens those entities serve. The rules adopted shall pro- vide, at aminimum, for themethodof appointment ofmembers to the council bygovernmental entities required to receive the service from the department and for the powers and duties of the council as it relates to the service provided, which shall include the authority of approving, on an annual basis, business plans submitted by the department for performance of the ser- vice, the procedure for resolving complaints concerning the service provided, and the proce- dure for setting rates for the service. In addition, if the service to be providedmay also be pro- vided to the judicial branch and legislative branch, then the rules shall provide that the chief justice of the supreme court and the legislative council may, in their discretion, each appoint a member to the applicable customer council. 3. Departmental processes required to be established pursuant to this section shall provide,

at a minimum, for input from affected governmental entities as well as for a biennial review by the appropriate customer council of the decision made by the department that the depart- ment should be the sole provider of a service. 4. The department shall annually prepare a listing separately identifying services to be pro-

videdby thedepartment and fundedbyanappropriation, services tobeprovidedby thedepart- ment and funded by the governmental entity receiving the service, and services which the de- partment is authorized to provide but which governmental entities may provide on their own or obtain from another provider of the service.

Sec. 12. NEW SECTION. 8A.122 SERVICES TO GOVERNMENTAL ENTITIES. 1. The director shall enter into agreements with state agencies, and may enter into agree-

ments with any other governmental entity, to furnish services and facilities of the department to the applicable governmental entity. The agreement shall provide for the reimbursement to the department of the reasonable cost of the services and facilities furnished. All governmen- tal entities of this state may enter into such agreements. 2. This chapter does not affect any city civil service programs established under chapter

400. 3. The state board of regents shall not be required to obtain any service for the state board

of regents or any institution under the control of the state board of regents that is provided by the department pursuant to this chapter without the consent of the state board of regents.

Sec. 13. NEW SECTION. 8A.123 DEPARTMENT INTERNAL SERVICE FUNDS. 1. Activities of the department shall be accounted for within the general fund of the state,

except that the director may establish andmaintain internal service funds in accordance with generally accepted accountingprinciples, as defined in section8.57, subsection4, for activities of the department which are primarily funded from billings to governmental entities for ser- vices rendered by the department. The establishment of an internal service fund is subject to the approval of thedirector of thedepartment ofmanagement and the concurrenceof the audi- tor of state. At least ninety days prior to the establishment of an internal service fund pursuant

340LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

to this section, the director shall notify in writing the general assembly, including the legisla- tive council, legislative fiscal committee, and the legislative fiscal bureau. 2. Internal service funds shall be administered by the department and shall consist of mon-

eys collected by the department from billings issued in accordance with section 8A.125 and any other moneys obtained or accepted by the department, including but not limited to gifts, loans, donations, grants, and contributions, which are designated to support the activities of the individual internal service funds. The director may obtain loans from the innovation fund created in section 8.63 for deposit in an internal service fund established pursuant to this sec- tion to provide seed and investment capital to enhance the delivery of services provided by the department. 3. Theproceeds of an internal service fund establishedpursuant to this section shall be used

by thedepartment for theoperationsof thedepartment consistentwith this chapter. Thedirec- tor may appoint the personnel necessary to ensure the efficient provision of services funded pursuant to an internal service fund established under this section. However, this usage re- quirement shall not limit or restrict the department from using proceeds from gifts, loans, donations, grants, and contributions in conformance with any conditions, directions, limita- tions, or instructions attached or related thereto. 4. Section 8.33 does not apply to anymoneys in internal service funds established pursuant

to this section. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys deposited in these funds shall be credited to these funds. 5. a. The director shall annually provide internal service fund service business plans and

financial reports to the department of management and the general assembly. The business plans may include the recommendation that a portion of unexpended net income be periodi- cally returned to the appropriate funding source. b. The department shall submit an annual report not later than October 1 to the members

of the general assembly and the legislative fiscal bureau of the activities funded by and expen- dituresmade from an internal service fund established pursuant to this section during the pre- ceding fiscal year.

Sec. 14. NEW SECTION. 8A.124 ADDITIONAL PERSONNEL. The department may employ, upon the approval of the department of management, such

additional personnel in excess of the number of full-time equivalent positions authorized by the general assembly if such additional personnel are reasonable and necessary to perform such duties as required to meet the needs of the department to provide services to other gov- ernmental entities and as authorized by this chapter. The director shall notify in writing the department of management, the legislative fiscal committee, and the legislative fiscal bureau of any additional personnel employed pursuant to this section.

Sec. 15. NEW SECTION. 8A.125 BILLING — CREDIT CARD PAYMENTS. 1. The director may bill a governmental entity for services rendered by the department in

accordance with the duties of the department as provided in this chapter. Bills may include direct, indirect, and developmental costs which have not been funded by an appropriation to the department. The department shall periodically render a billing statement to a governmen- tal entity outlining the cost of services provided to the governmental entity. The amount indi- cated on the statement shall be paid by the governmental entity and amounts received by the department shall be considered repayment receipts as defined in section 8.2, and deposited into the accounts of the department. 2. In addition to other forms of payment, a person may pay by credit card for services pro-

vided by the department, according to rules adopted by the treasurer of state. The credit card fees to be charged shall not exceed those permitted by statute. A governmental entitymay ad- just its payment to reflect the costs of processing as determined by the treasurer of state. The discount charged by the credit card issuer may be included in determining the fees to be paid for completing a financial transaction under this section by using a credit card. All credit card payments shall be credited to the fund used to account for the services provided.

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Sec. 16. NEW SECTION. 8A.126 DEPARTMENT DEBTS AND LIABILITIES — APPRO- PRIATION REQUEST. If a service providedby thedepartment and funded froman internal service fundestablished

under section 8A.123 ceases to be provided and insufficient funds remain in the internal ser- vice fund to pay any outstanding debts and liabilities relating to that service, the director shall notify the general assembly and request that moneys be appropriated from the general fund of the state to pay such debts and liabilities.

ARTICLE 2 INFORMATION TECHNOLOGY

GENERAL PROVISIONS

Sec. 17. NEW SECTION. 8A.201 DEFINITIONS. As used in this article, unless the context otherwise requires: 1. “Information technology”means computing and electronics applications used to process

and distribute information in digital and other forms and includes information technology de- vices, information technology services, and value-added services. 2. “Information technology council” means the information technology council established

in section 8A.204. 3. “Information technology device” means equipment or associated software, including

programs, languages, procedures, or associated documentation, used in operating the equip- ment which is designed for utilizing information stored in an electronic format. “Information technology device” includes but is not limited to computer systems, computer networks, and equipment used for input, output, processing, storage, display, scanning, and printing. 4. “Information technology services” means services designed to do any of the following: a. Provide functions, maintenance, and support of information technology devices. b. Provide services including, but not limited to, any of the following: (1) Computer systems application development and maintenance. (2) Systems integration and interoperability. (3) Operating systems maintenance and design. (4) Computer systems programming. (5) Computer systems software support. (6) Planning and security relating to information technology devices. (7) Data management consultation. (8) Information technology education and consulting. (9) Information technology planning and standards. (10) Establishment of local area network and workstation management standards. 5. “Participating agency” means any agency other than any of the following: a. The state board of regents and institutions operated under the authority of the state board

of regents. b. The public broadcasting division of the department of education. c. The state department of transportation mobile radio network. d. The department of public safety law enforcement communications systems and capitol

complex security systems in use for the legislative branch. e. The telecommunications and technology commission established in section 8D.3, with

respect to information technology that is unique to the Iowa communications network. f. The Iowa lottery. g. A judicial district department of correctional services established pursuant to section

905.2. 6. “Value-added services”means services that offer or provide unique, special, or enhanced

value, benefits, or features to the customer or user, including, but not limited to, services in which information technology is specially designed, modified, or adapted to meet the special or requested needs of the user or customer, services involving the delivery, provision, or trans- mission of information or data that require or involve additional processing, formatting,

342LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

enhancement, compilation or security, services that provide the customer or user with en- hanced accessibility, security or convenience, research and development services, and ser- vices that are provided to support technological or statutory requirements imposed on partici- pating agencies and other governmental entities, businesses, and the public.

Sec. 18. NEW SECTION. 8A.202 INFORMATION TECHNOLOGY SERVICES — MIS- SION — POWERS AND DUTIES — RESPONSIBILITIES. 1. MISSION. Themission of the department as it relates to information technology services

is to provide high-quality, customer-focused information technology services and business solutions to government and to citizens. 2. POWERS AND DUTIES OF DEPARTMENT. The powers and duties of the department

as it relates to information technology services shall include, but are not limited to, all of the following: a. Providing information technology to agencies and other governmental entities. b. Implementing the strategic information technology plan. c. Developing and implementing a business continuity plan, as the director determines is

appropriate, to be used if a disruption occurs in the provision of information technology to par- ticipating agencies and other governmental entities. d. Prescribing standards and adopting rules relating to information technology and pro-

curement, including but not limited to system design and systems integration and interoper- ability, which shall apply to all participating agencies except as otherwise provided in this chapter. The department shall implement information technology standards as established pursuant to this chapterwhich are applicable to information technologyprocurements forpar- ticipating agencies. e. Prescribing standards and adopting rules relating to standards for an electronic reposito-

ry for maintaining mandated agency reports as provided in section 304.13A. Such repository shall be developed and maintained for the purpose of providing public access to such man- dated reports. The department shall prescribe such standards and adopt rules relating to such standards in consultation with the state librarian.1

f. Developing and maintaining security policies and systems to ensure the integrity of the state’s information resources and to prevent the disclosure of confidential records. g. Developing and implementing effective and efficient strategies for the use and provision

of information technology for participating agencies and other governmental entities. h. Coordinating the acquisition of information technology by participating agencies in fur-

therance of the purposes of this chapter. The department shall institute procedures to ensure effective and efficient compliance with the applicable standards established pursuant to this article. This article shall not be construed to prohibit or limit a participating agency from en- tering into an agreement or contract for information technologywith a qualified private entity. i. Entering into contracts, leases, licensing agreements, royalty agreements, marketing

agreements, memorandums of understanding, or other agreements as necessary and ap- propriate to administer this article. j. Requesting that a participating agency provide such information as is necessary to estab-

lish andmaintain an inventory of information technology used by participating agencies, and such participating agency shall provide such information to the department in a timely man- ner. The formand content of the information to be provided shall be determinedby thedepart- ment. k. Charging reasonable fees, costs, expenses, charges, or other amounts to an agency, gov-

ernmental entity, public official, or person or entity related to the provision, sale, use, or uti- lization of, or cost sharingwith respect to, information technology and any intellectual proper- ty interests related thereto, research and development, proprietary hardware, software, and applications, and information technology architecture and design. The departmentmay enter into nondisclosure agreements and take any other legal action reasonably necessary to secure a right to an interest in information technologydevelopment byoronbehalf of the state of Iowa and to protect the state of Iowa’s proprietary information technology and intellectual property interests. The provisions of chapter 23A relating to noncompetition by state agencies and

___________________

1 See chapter 179, §57, 84 herein

343 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

political subdivisions with private enterprise shall not apply to department activities autho- rized under this paragraph. l. Charging reasonable fees, costs, expenses, charges, or other amounts to an agency, gov-

ernmental entity, public official, or other personor entity toor forwhom information technolo- gy or other services have been provided by or on behalf of, or otherwise made available through, the department. m. Providing, selling, leasing, licensing, transferring, or otherwise conveying or disposing

of information technology, or any intellectual property or other rights with respect thereto, to agencies, governmental entities, public officials, or other persons or entities. n. Entering intopartnerships, contracts, leases, or other agreementswith public andprivate

entities for the evaluation and development of information technology pilot projects. o. Initiating and supporting the development of electronic commerce, electronic govern-

ment, and internet applications across participating agencies and in cooperation with other governmental entities. The department shall foster joint development of electronic commerce and electronic government involving the public and private sectors, develop customer surveys and citizen outreach and education programs and material, and provide for citizen input re- garding the state’s electronic commerce and electronic government applications. 3. RESPONSIBILITIES. The responsibilities of the department as it relates to information

technology services include the following: a. Coordinate the activities of the department in promoting, integrating, and supporting in-

formation technology in all business aspects of state government. b. Provide for server systems, including mainframe and other server operations, desktop

support, and applications integration. c. Provideapplicationsdevelopment, support, and training, andadvice andassistance inde-

veloping and supporting business applications throughout state government. 4. INFORMATION TECHNOLOGY CHARGES. The department shall render a statement

to an agency, governmental entity, public official, or other person or entity to or for whom in- formation technology, value-added services, or other items or services have been provided by oronbehalf of, or otherwisemadeavailable through, thedepartment. Suchanagency, govern- mental entity, public official, or other person or entity shall pay an amount indicated on such statement in a manner determined by the department. 5. DISPUTE RESOLUTION. If a dispute arises between the department and an agency for

which the department provides or refuses to provide information technology, the dispute shall be resolved as provided in section 679A.19.

Sec. 19. NEW SECTION. 8A.203 DIRECTOR — INFORMATION TECHNOLOGY SER- VICES POWERS AND DUTIES. The director shall do all of the following as it relates to information technology services: 1. Prescribe and adopt information technology standards and rules. 2. Develop and recommend legislative proposals deemed necessary for the continued effi-

ciency of the department in performing information technology functions, and review legisla- tive proposals generated outside of the department which are related tomatters within the de- partment’s purview. 3. Provide advice to the governor on issues related to information technology. 4. Consult with agencies and other governmental entities on issues relating to information

technology. 5. Work with all governmental entities in an effort to achieve the information technology

goals established by the department.

Sec. 20. NEW SECTION. 8A.204 INFORMATION TECHNOLOGY COUNCIL — MEM- BERS — POWERS AND DUTIES. 1. MEMBERSHIP. a. The information technology council is composed of fourteen members including the fol-

lowing:

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(1) The chairperson of the IowAccess advisory council established in section 8A.221, or the chairperson’s designee. (2) Two executive branch department heads appointed by the governor. (3) Six persons appointed by the governorwho are knowledgeable in information technolo-

gy matters. (4) One person representing the judicial branch appointed by the chief justice of the su-

preme court who shall serve in an ex officio, nonvoting capacity. (5) Fourmembers of the general assemblywithnotmore thanonemember fromeachhouse

being from the same political party. The two senators shall be designated by the president of the senate after consultation with the majority and minority leaders of the senate. The two representatives shall be designated by the speaker of the house of representatives after con- sultation with the majority and minority leaders of the house of representatives. Legislative members shall serve in an ex officio, nonvoting capacity. A legislative member is eligible for per diem and expenses as provided in section 2.10. b. Themembers appointed pursuant to paragraph “a” shall serve four-year staggered terms

and such appointments to the information technology council are subject to the requirements of sections 69.16, 69.16A, and 69.19. The four-year terms ofmembers appointed by the gover- nor shall be staggered as designated by the governor. Members appointed by the governor are subject to senate confirmation and may also be eligible to receive compensation as provided in section 7E.6. Members shall be reimbursed for actual and necessary expenses incurred in performance of the members’ duties. c. The information technology council shall annually elect its own chairperson from among

the votingmembers of the council. Amajority of the votingmembers of the council constitutes a quorum. 2. DUTIES. The information technology council shall do all of the following: a. Advise the department in the development of recommended standards for consideration

with respect to the procurement of information technology by all participating agencies. b. Appoint advisory committees as appropriate to assist the department in developing strat-

egies for theuse andprovision of information technology andestablishingother advisory com- mittees as necessary to assist the information technology council in carrying out its duties un- der this article. The number of advisory committees and their membership shall be determined by the information technology council to assure that the public and agencies and other governmental entities have an opportunity to comment on the services provided and the service goals and objectives of the department. c. Advise the department in the preparation and annual update of the strategic information

technology plan for the use of information technology throughout state government. The plan shall promote participation in cooperative projectswith other governmental entities. Theplan shall establish amission, goals, and objectives for theuse of information technology, including goals for electronic access to public records, information, and services. The plan shall be sub- mitted annually to the governor and the general assembly. d. Review, as deemed appropriate by the information technology council, legislative pro-

posals recommended by the director, or other legislative proposals as developed and deemed necessary by the information technology council. e. Review the recommendations of the IowAccess advisory council regarding rates to be

charged for access to and for value-added services performed through IowAccess. The infor- mation technology council shall report the establishment of a new rate or change in the level of an existing rate to the department whowill then notify the department ofmanagement, and the department of management shall notify the legislative fiscal bureau regarding the rate es- tablishment or change.

Sec. 21. NEW SECTION. 8A.205 DIGITAL GOVERNMENT. 1. Thedepartment is responsible for initiatingand supporting thedevelopment of electronic

commerce, electronic government, and internet applications across participating agencies and in cooperation with other governmental entities.

345 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

2. In developing the concept of digital government, the department shall do all of the follow- ing: a. Establish standards, consistent with other state law, for the implementation of electronic

commerce, including standards for digital signatures, electronic currency, and other items as- sociated with electronic commerce. b. Establish guidelines for the appearance and functioning of applications. c. Establish standards for the integration of electronic data across state agencies. d. Foster joint development of electronic commerce and electronic government involving

the public and private sectors. e. Develop customer surveys and citizen outreach and education programs and material,

and provide for citizen input regarding the state’s electronic commerce and electronic govern- ment applications. f. Provide staff support for the IowAccess advisory council.

Sec. 22. NEW SECTION. 8A.206 INFORMATION TECHNOLOGY STANDARDS. 1. The department shall develop, in consultation with the information technology council,

recommended standards for consideration with respect to the procurement of information technology by all participating agencies. It is the intent of the general assembly that informa- tion technology standards be established for the purpose of guiding such procurements. Such standards, unless waived by the department, shall apply to all information technology pro- curements for participating agencies. 2. The office of the governor or the office of an elective constitutional or statutory officer

shall consult with the department prior to procuring information technology and consider the standards recommended by the department, and provide a written report to the department relating to the office’s decision regarding such acquisitions.

Sec. 23. NEW SECTION. 8A.207 PROCUREMENTOF INFORMATION TECHNOLOGY. 1. Standards established by the department, unless waived by the department, shall apply

to all information technology procurements for participating agencies. 2. The department shall institute procedures to ensure effective and efficient compliance

with standards established by the department. 3. The department, by rule, may implement a prequalification procedure for contractors

with which the department has entered or intends to enter into agreements regarding the pro- curement of information technology. 4. Notwithstanding theprovisions governingpurchasingas provided in article 3, thedepart-

ment may procure information technology as provided in this section. The department may cooperate with other governmental entities in the procurement of information technology in an effort to make such procurements in a cost-effective, efficient manner as provided in this section. The department, as deemed appropriate and cost-effective, may procure information technology using any of the following methods: a. Cooperative procurement agreement. The departmentmay enter into a cooperative pro-

curement agreement with another governmental entity relating to the procurement of infor- mation technology, whether such information technology is for the use of the department or other governmental entities. The cooperative procurement agreement shall clearly specify the purpose of the agreement and the method by which such purpose will be accomplished. Any power exercised under such agreement shall not exceed the power granted to any party to the agreement. b. Negotiated contract. The department may enter into an agreement for the purchase of

information technology if any of the following applies: (1) The contract price, terms, and conditions are pursuant to the current federal supply con-

tract, and thepurchaseorder adequately identifies the federal supply contract underwhich the procurement is to be made. (2) The contract price, terms, and conditions are no less favorable than the contractor’s

current federal supply contract price, terms, and conditions; the contractor has indicated in

346LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

writing a willingness to extend such price, terms, and conditions to the department; and the purchase order adequately identifies the contract relied upon. (3) The contract is with a vendorwhich has a current exclusive or nonexclusive price agree-

ment with the state for the information technology to be procured, and such information tech- nology meets the same standards and specifications as the items to be procured and both of the following apply: (a) Thequantity purchaseddoesnot exceed thequantitywhichmaybepurchasedunder the

applicable price agreement. (b) The purchase order adequately identifies the price agreement relied upon. c. Contracts let by another governmental entity. The department, on its own behalf or on

the behalf of another participating agency or governmental entity, may procure information technology under a contract let by another agency or other governmental entity, or approve such procurement in the same manner by a participating agency or governmental entity. d. Reverse auction. (1) The department may enter into an agreement for the purchase of information technolo-

gy utilizing a reverse auction process. Such process shall result in the purchase of information technology from the vendor submitting the lowest responsible bid amount for the information technology to be acquired. The department, in establishing a reverse auction process, shall do all of the following: (a) Determine the specifications and requirements of the information technology to be ac-

quired. (b) Identify and provide notice to potential vendors concerning the proposed acquisition. (c) Establish prequalification requirements to be met by a vendor to be eligible to partici-

pate in the reverse auction. (d) Conduct the reverse auction in amanner as deemed appropriate by the department, and

consistent with rules adopted by the department. (2) Prior to conducting a reverse auction, the department shall establish a threshold amount

which shall be the maximum amount which the department is willing to pay for the informa- tion technology to be acquired. (3) The department shall enter into an agreement with a vendor who is the lowest responsi-

ble bidder which meets the specifications or description of the information technology to be procured, or the department may reject all bids and begin the process again. In determining the lowest responsible bidder, the departmentmay consider various factors, including, but not limited to, the past performance of the vendor relative to quality of product or service, the past experience of the department in relation to the product or service, the relative quality of prod- ucts or services, the proposed terms of delivery, and the best interest of the state. e. Competitive bidding. The department may enter into an agreement for the procurement

or acquisition of information technology in the same manner as provided under article III for the purchasing of service. f. Other agreements. In addition to the competitive bidding procedure provided for under

paragraph “e”, the departmentmay enter into an agreement for the purchase, disposal, or oth- er disposition of information technology in the same manner and subject to the same limita- tions as otherwise provided in this chapter. The department, by rule, shall provide for such procedures. 5. The department shall adopt rules pursuant to chapter 17A to implement the procurement

methods and procedures provided for in subsections 2 through 4.

IOWACCESS

Sec. 24. NEWSECTION. 8A.221 IOWACCESSADVISORYCOUNCILESTABLISHED— DUTIES — MEMBERSHIP. 1. ADVISORY COUNCIL ESTABLISHED. An IowAccess advisory council is established

within the department for the purpose of creating and providing a service to the citizens of this state that is the gateway for one-stop electronic access to government information and trans-

347 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

actions, whether federal, state, or local. Except as provided in this section, IowAccess shall be a state-funded service providing access to government information and transactions. The department, in establishing the fees for value-added services, shall consider the reasonable cost of creating and organizing such government information through IowAccess. 2. DUTIES. a. The advisory council shall do all of the following: (1) Recommend to the information technology council rates to be charged for access to and

for value-added services performed through IowAccess. (2) Recommend to the director the priority of projects associated with IowAccess. (3) Recommend to the director expected outcomes and effects of the use of IowAccess and

determine the manner in which such outcomes are to be measured and evaluated. (4) Review and recommend to the director the IowAccess total budget request and ensure

that such request reflects the priorities and goals of IowAccess as established by the advisory council. (5) Review and recommend to the director all rules to be adopted by the department that

are related to IowAccess. (6) Advocate for access to government information and services through IowAccess and for

data privacy protection, information ethics, accuracy, and security in IowAccess programs and services. (7) Receive status and operations reports associated with IowAccess. (8) Other duties as assigned by the director. b. The advisory council shall also advise the directorwith respect to the operation of IowAc-

cess and encourage and implement access to government and its public records by the citizens of this state. c. The advisory council shall serve as a link between the users of public records, the lawful

custodians of suchpublic records, and the citizens of this statewhoare theownersof suchpub- lic records. d. The advisory council shall ensure that IowAccess gives priority to serving the needs of

the citizens of this state. 3. MEMBERSHIP. a. The advisory council shall be composed of nineteen members including the following: (1) Five persons appointed by the governor representing the primary customers of IowAc-

cess. (2) Six persons representing lawful custodians as follows: (a) One person representing the legislative branch,who shall not be amember of the gener-

al assembly, to be appointed jointly by the president of the senate, after consultation with the majority andminority leaders of the senate, andby the speaker of thehouse of representatives, after consultation with the majority and minority leaders of the house of representatives. (b) One person representing the judicial branch as designated by the chief justice of the su-

preme court. (c) One person representing the executive branch as designated by the governor. (d) One person to be appointed by the governor representing citieswho shall be actively en-

gaged in the administration of a city. (e) One person to be appointed by the governor representing counties who shall be actively

engaged in the administration of a county. (f) One person to be appointed by the governor representing the federal government. (3) Four members to be appointed by the governor representing a cross section of the citi-

zens of the state. (4) Four members of the general assembly, two from the senate and two from the house of

representatives, with not more than one member from each chamber being from the same political party. The two senators shall be designated by the president of the senate after con- sultation with the majority and minority leaders of the senate. The two representatives shall be designated by the speaker of the house of representatives after consultationwith themajor- ity and minority leaders of the house of representatives. Legislative members shall serve in

348LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

an ex officio, nonvoting capacity. A legislative member is eligible for per diem and expenses as provided in section 2.10. b. Members appointed by the governor are subject to confirmation by the senate and shall

serve four-year staggered terms as designated by the governor. The advisory council shall annually elect its own chairperson from among the voting members of the board. Members appointed by the governor are subject to the requirements of sections 69.16, 69.16A, and69.19. Members appointed by the governor shall be reimbursed for actual and necessary expenses incurred in performance of their duties. Such members may also be eligible to receive com- pensation as provided in section 7E.6. 4. This section shall not be construed to impair the right of a person to contract to purchase

information or data from the Iowa court information systemor any other governmental entity. This section shall not be construed toaffect a data purchaseagreement or contract in existence on April 25, 2000.

Sec. 25. NEW SECTION. 8A.222 FINANCIAL TRANSACTIONS. 1. Moneys paid to a participating agency frompersonswho complete an electronic financial

transaction with the agency by accessing IowAccess shall be transferred to the treasurer of state for deposit in the general fund of the state, unless the disposition of themoneys is specifi- cally provided for under other law. The moneys may include all of the following: a. Fees required to obtain an electronic public record as provided in section 22.3A. b. Fees required to process an application or file a document, including but not limited to

fees required to obtain a license issued by a licensing authority. c. Moneys owed to a governmental entity by a person accessing IowAccess in order to satis-

fy a liability arising from the operation of law, including the payment of assessments, taxes, fines, and civil penalties. 2. Moneys transferred using IowAccessmay include amounts owedby a governmental enti-

ty to a person accessing IowAccess in order to satisfy a liability of the governmental entity. The moneys may include the payment of tax refunds, and the disbursement of support pay- ments as defined in section 252D.16 or 598.1 as required for orders issued pursuant to section 252B.14. 3. In addition to other forms of payment, credit cards shall be accepted in payment formon-

eys owed to or fees imposed by a governmental entity in the samemanner as provided in sec- tion 8A.125. 4. Notwithstanding any other provision of this section, the departmentmay establish for the

fiscal years beginning July 1, 2003, and ending June 30, 2005, a pilot project for fee collection. Fees shall be collected based on the ability to access court information from remote locations.

Sec. 26. NEW SECTION. 8A.223 AUDITS REQUIRED. A technology audit of the electronic transmission system by which government records are

transmitted electronically to the public shall be conducted not less than once annually for the purpose of determining that government records and other electronic data are not misappro- priated or misused by the department or a contractor of the department.

Sec. 27. NEW SECTION. 8A.224 IOWACCESS REVOLVING FUND. An IowAccess revolving fund is created in the state treasury. The revolving fund shall be

administered by the department and shall consist of moneys collected by the department as fees,moneys appropriated by the general assembly, and any othermoneys obtained or accept- ed by the department for deposit in the revolving fund. The proceeds of the revolving fund are appropriated toand shall beusedby thedepartment tomaintain, develop, operate, andexpand IowAccess consistent with this article. The department shall submit an annual report not later than January 31 to the members of the general assembly and the legislative fiscal bureau, of the activities funded by and expenditures made from the revolving fund during the preceding fiscal year. Section 8.33doesnot apply to anymoneys in the revolving fund and, notwithstand- ing section 12C.7, subsection 2, earnings or interest onmoneys deposited in the revolving fund shall be credited to the revolving fund.

349 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

ARTICLE 3 PHYSICAL RESOURCES GENERAL PROVISIONS

Sec. 28. NEW SECTION. 8A.301 DEFINITIONS. When used in this article, unless the context otherwise requires: 1. “Bid specification”means the standards or qualities whichmust bemet before a contract

to purchasewill be awarded and any termswhich the director has set as a condition precedent to the awarding of a contract. 2. “Competitive bidding procedure”means the advertisement for, solicitation of, or the pro-

curement of bids; the manner and condition in which bids are received; and the procedure by which bids are opened, accessed, accepted, rejected, or awarded. A “competitive bidding pro- cedure” may include a transaction accomplished in an electronic format. 3. “Life cycle cost” means the expected total cost of ownership during the life of a product. 4. “Printing” means, as used in chapter 7A and this article, the reproduction of an image

from a printing surface made generally by a contact impression that causes a transfer of ink, the reproduction of an impression by a photographic process, or the reproduction of an image by electronic means and shall include binding andmay include material, processes, or opera- tions necessary to produce a finished printed product, but shall not include binding, rebinding or repairs of books, journals, pamphlets, magazines and literary articles by any library of the state or any of its offices, departments, boards, and commissions held as a part of their library collection. 5. “State buildings and grounds” excludes any building under the custody and control of the

Iowa public employees’ retirement system.

Sec. 29. NEW SECTION. 8A.302 DEPARTMENTAL DUTIES — PHYSICAL RE- SOURCES. The duties of the department as it relates to the physical resources of state government shall

include but not necessarily be limited to the following: 1. Providing a system of uniform standards and specifications for purchasing. When the

system is developed, all items of general use shall be purchased by state agencies through the department, except items used by the state department of transportation, institutions under the control of the state board of regents, the department for the blind, and any other agencies exempted by law. However, items of general use may be purchased through the department by any governmental entity. 2. Providing for the proper maintenance of the state capitol, grounds, and equipment, and

all other state buildings andgrounds, and equipment at the seat of government, andof the state laboratories facility in Ankeny, except those referred to in section 216B.3, subsection 6. 3. Providing formail services for all state officials, agencies, and departments located at the

seat of government. However, postage shall not be furnished to thegeneral assembly, itsmem- bers, officers, employees, or committees. 4. Providing architectural services, contracting for construction and construction oversight

for state agencies except for the state board of regents, department of transportation, national guard, natural resource commission, and the Iowapublic employees’ retirement system. Capi- tal funding appropriated to state agencies, except to the state board of regents, department of transportation, national guard, natural resource commission, and the Iowa public employees’ retirement system, for propertymanagement shall be transferred for administration to the di- rector of the department of administrative services. 5. Developing and implementing procedures to conduct transactions, including purchas-

ing, authorized by this article in an electronic format to the extent determined appropriate by the department. The director shall adopt rules establishing criteria for competitive bidding procedures involving transactions in an electronic format, including criteria for accepting or rejecting bids which are electronically transmitted to the department, and for establishing with reasonable assurance the authenticity of the bid and the bidder’s identity. 6. Providing insurance for motor vehicles owned by the state.

350LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

PURCHASING

Sec. 30. NEW SECTION. 8A.311 COMPETITIVE BIDDING — PREFERENCES — RE- CIPROCAL APPLICATION — DIRECT PURCHASING. The director shall adopt rules establishing competitive bidding procedures. 1. All equipment, supplies, or services procured by the department shall be purchased by

a competitive biddingprocedure. However, thedirectormay exempt by rule purchases of non- competitive items and purchases in lots or quantities too small to be effectively purchased by competitive bidding. Preference shall be given to purchasing Iowa products and purchases from Iowa-based businesses if the Iowa-based business bids submitted are comparable in price to bids submitted by out-of-state businesses and otherwise meet the required specifica- tions. If the laws of another statemandate a percentage preference for businesses or products from that state and the effect of the preference is that bids of Iowa businesses or products that are otherwise low and responsive are not selected in the other state, the same percentage pref- erence shall be applied to Iowa businesses and products when businesses or products from that other state are bid to supply Iowa requirements. 2. The director may also exempt the purchase of an item or service from a competitive bid-

ding procedure when the director determines that the best interests of the state will be served by the exemption which shall be based on one of the following: a. An immediate or emergency need existing for the item or service. b. A need to protect the health, safety, or welfare of persons occupying or visiting a public

improvement or property located adjacent to the public improvement. 3. a. The director may contract for the purchase of items or services by the department.

Contracts for thepurchase of itemsor services shall be awardedon thebasis of the lowest com- petent bid. Contracts not based on competitive bidding shall be awarded on the basis of bidder competence and reasonable price. b. Architectural and engineering services shall be procured in a reasonable manner, as the

director by rule may determine, on the basis of competence and qualification for the type of services required and for a fair and reasonable price. 4. The director may refuse all bids on any item or service and request new bids. 5. The director shall establish by rule the amount of security, if any, to accompany a bid or

as a condition precedent to the awarding of any contract and the circumstances under which a security will be returned to the bidder or forfeited to the state. 6. The director shall adopt rules providing a method for the various state agencies to file

with the department a list of those supplies, equipment, machines, and all items needed to properly perform their governmental duties and functions. 7. The director shall furnish a list of specifications, prices, and discounts of contract items

to any governmental subdivision which shall be responsible for payment to the vendor under the terms and conditions outlined in the state contract. 8. The director shall adopt rules providing that any state agency may, upon request, pur-

chasedirectly fromavendor if the direct purchasing is as economical ormore economical than purchasing through the department, or upon a showing that direct purchasing by the state agencywould be in the best interests of the state due to an immediate or emergency need. The rules shall include a provision permitting a state agency to purchase directly from a vendor, on the agency’s own authority, if the purchase will not exceed five thousand dollars and the purchase will contribute to the agency complying with or exceeding the targeted small busi- ness procurement goals under sections 73.15 through 73.21. Any member of the executive council may bring before the executive council for review a

decision of the director granting a state agency request for direct purchasing. The executive council shall hear and review the director’s decision in the samemanner as an appeal filed by an aggrieved bidder, except that the three-day period for filing for review shall not apply. 9. a. When the estimated total cost of construction, erection, demolition, alteration, or re-

pair of a public improvement exceeds twenty-five thousanddollars, thedepartment shall solic- it bids on the proposed improvement by publishing an advertisement in a print format. The advertisement shall appear in two publications in a newspaper published in the county in

351 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

which the work is to be done. The first advertisement for bids appearing in a newspaper shall be not less than fifteen days prior to the date set for receiving bids. The department may pub- lish an advertisement in an electronic format as an additional method of soliciting bids under this paragraph. b. In awardinga contract under this subsection, thedepartment shall let thework to the low-

est responsible bidder submitting a sealed proposal. However, if the department considers the bids received not to be acceptable, all bidsmay be rejected andnewbids requested. A bid shall be accompanied by a certified or cashier’s check or bid bond in an amount designated in the advertisement for bids as security that the bidder will enter into a contract for the work re- quested. The department shall establish the bid security in an amount equal to at least five percent, but not more than ten percent of the estimated total cost of the work. The certified or cashier’s checks or bid bonds of unsuccessful bidders shall be returned as soon as the suc- cessful bidder is determined. The certified or cashier’s checkor bid bond of the successful bid- der shall be returned upon execution of the contract. This subsection does not apply to the construction, erection, demolition, alteration, or repair of a public improvementwhen the con- tracting procedure for the work requested is otherwise provided for in law. 10. The state and its political subdivisions shall give preference to purchasing Iowa prod-

ucts and purchasing from Iowa-based businesses if the bids submitted are comparable in price to those submitted by other bidders and meet the required specifications. 11. The director shall adopt rules which require that each bid received for the purchase of

items purchased by the department includes a product content statement which provides the percentage of the content of the item which is reclaimed material. 12. The director shall reviewand,where necessary, revise specifications used by state agen-

cies to procure products in order to ensure all of the following: a. The procurement of products containing recovered materials, including but not limited

to lubricating oils, retread tires, building insulation materials, and recovered materials from waste tires. The specifications shall be revised if they restrict the use of alternative materials, exclude recovered materials, or require performance standards which exclude products con- taining recovered materials unless the agency seeking the product can document that the use of recovered materials will hamper the intended use of the product. b. The procurement by state agencies of bio-based hydraulic fluids, greases, and other in-

dustrial lubricants manufactured from soybeans in accordance with the requirements of sec- tion 8A.316. 13. A bidder awarded a state construction contract shall disclose the names of all subcon-

tractors, whowill work on the project being bid, within forty-eight hours after the award of the contract. If a subcontractor named by a bidder awarded a state construction contract is replaced, or

if the cost of work to be done by a subcontractor is reduced, the bidder shall disclose the name of the new subcontractor or the amount of the reduced cost. 14. A state agency shall make every effort to purchase those products produced for sale by

sheltered workshops, work activity centers, and other special programs funded in whole or in part by public moneys that employ persons with mental retardation or other developmental disabilities or mental illness if the products meet the required specifications. 15. A state agency shall make every effort to purchase products produced for sale by em-

ployers of persons in supported employment. 16. Thedepartment shall not award a contract to abidder for a construction, reconstruction,

demolition, or repair project or improvement with an estimated cost that exceeds twenty-five thousand dollars in which the bid requires the use of inmate labor supplied by the department of corrections, but not employed by private industry pursuant to section 904.809, to perform the project or improvement. 17. This section does not apply to Iowa technology center contracts in support of activities

performed for another governmental entity, either state or federal. The Iowa technology cen- ter is an entity created by a chapter 28E agreement entered into by the department of public defense.

352LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

18. Life cycle cost and energy efficiency shall be included in the criteria used by the depart- ment, institutionsunder the control of the state boardof regents, thedepartment of transporta- tion, the department for the blind, and other state agencies in developing standards and speci- fications for purchasing energy-consuming products. For purposes of this subsection, the life cycle costs of American motor vehicles shall be reduced by five percent in order to determine if themotor vehicle is comparable to foreign-mademotor vehicles. “Americanmotor vehicles” includes those vehiclesmanufactured in this state and those vehicles in which at least seventy percent of the value of themotor vehiclewasmanufactured in theUnited States orCanada and at least fifty percent of the motor vehicle sales of the manufacturer are in the United States or Canada. In determining the life cycle costs of a motor vehicle, the costs shall be determined on the basis of the bid price, the resale value, and the operating costs based upon a useable life of five years or seventy-five thousand miles, whichever occurs first. 19. Preference shall be given to purchasing American-made products and purchases from

American-based businesses if the life cycle costs are comparable to those products of foreign businesses and which most adequately fulfill the department’s need.

Sec. 31. NEW SECTION. 8A.312 COOPERATIVE PURCHASING. The directormay purchase items through the department of transportation, institutions un-

der the control of the state board of regents, and any other agency exempted by law from centralized purchasing. These state agencies shall upon request furnish the director with a list of and specifications for all items of office equipment, furniture, fixtures, motor vehicles, heavy equipment, and other related items tobe purchasedduring thenext quarter and thedate by which the director must file with the agency the quantity of items to be purchased by the state agency for the department. The department shall be liable to the state agency for the pro- portionate costs the items purchased for the department bear to the total purchase price. When items purchased have been delivered, the state agency shall notify the director and after receipt of the purchase price shall release the items to the director or upon the director’s order.

Sec. 32. NEW SECTION. 8A.313 DISPUTES INVOLVING PURCHASING FROM IOWA STATE INDUSTRIES. Disputes arising between the department of corrections and a purchasing department or

agency over the procurement of products from Iowa state industries as described in section 904.808 shall be referred to the director. The decision of the director is final unless a written appeal is filedwith the executive council within five days of receipt of the decision of the direc- tor, excludingSaturdays, Sundays, and legal holidays. If an appeal is filed, the executive coun- cil shall hear and determine the appeal within thirty days. The decision of the executive coun- cil is final.

Sec. 33. NEW SECTION. 8A.314 PURCHASING REVOLVING FUND. 1. A purchasing revolving fund is established within the department. The director shall

keep an accurate itemized account for each state agency purchasing through the department, using services provided for by the department, and using postage supplied by the department. 2. At the end of each month the director shall render a statement to each state agency for

the actual cost of items purchased through the department, and the actual cost of services and postage used by the agency. Themonthly statement shall also include a fair proportion of the administrative costs of the department during themonth. The portion of administrative costs shall be determined by the director subject to review by the executive council upon complaint from any state agency adversely affected. 3. Statements rendered to the various state agencies shall be paid by the state agencies in

the manner determined by the department. When the statements are paid the sums shall be credited to the purchasing revolving fund. If any funds accrue to the revolving fund in excess of two hundred twenty-five thousand dollars and there is no anticipated need or use for such funds, the governor shall order the excess funds credited to the general fund of the state.

353 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

Sec. 34. NEW SECTION. 8A.315 STATE PURCHASES — RECYCLED PRODUCTS — SOYBEAN-BASED INKS. 1. When purchasing paper products other than printing and writing paper, the department

shall, when the price is reasonably competitive and the quality as intended, purchase the re- cycled product. The department shall also purchase,when the price is reasonably competitive and the quality as intended, and in keeping with the schedule established in this subsection, soybean-based inks and plastic products with recycled content including but not limited to plastic garbage can liners. a. One hundred percent of the purchases of inks which are used for newsprint printing ser-

vices performed internally or contracted for by the department shall be soybean-based. b. One hundred percent of the purchases of inks, other than inks which are used for news-

print printing services, and which are used internally or contracted for by the department, shall be soybean-based to the extent formulations for such inks are available. c. Aminimumof ten percent of the purchases of garbage can linersmadeby the department

shall be plastic garbage can linerswith recycled content. The percentage shall increase by ten percent annually until fifty percent of the purchases of garbage can liners are plastic garbage can liners with recycled content. d. The department shall report to the general assembly on February 1 of each year the fol-

lowing: (1) A listing of plastic products which are regularly purchased by the department and other

state agencies forwhich recycled content product alternatives are available, including the cost of the plastic products purchased and the cost of the recycled content product alternatives. (2) Information relating to soybean-based inks and plastic garbage can liners with recycled

content regularly purchased by the department and other state agencies, including the cost of purchasing soybean-based inks and plastic garbage can liners with recycled content and the percentages of soybean-based inks and plastic garbage can liners with recycled content that have been purchased. e. For purposes of this subsection, “recycled content”means that the content of the product

contains a minimum of thirty percent postconsumer material. 2. a. Except as otherwise provided in this section, the department shall purchase and use

recycledprintingandwritingpaper so that ninety percent of thevolumeofprintingandwriting paper purchased is recycled paper. The recycled printing andwriting paper shall meet the re- quirements for procuring recycled printing and writing paper set forth in 40 C.F.R. pt. 247, and in related recoveredmaterials advisory notices issued by theUnited States environmental protection agency. b. The department shall establish a prioritization procedure for the purchaseof recycled pa-

perwhich provides for a five percent differential in the cost of the purchase of paperwhich has been recycled through the use of a nonchlorinated process. c. If a provision under this subsection results in the limitation of sources for the purchase

of printing andwriting paper to three or fewer sources, the departmentmaywaive the require- ment in order to purchase necessary amounts of printing and writing paper. d. Notwithstanding the requirements of this subsection regarding the purchase of recycled

printing and writing paper, the department shall purchase acid-free permanent paper in the amount necessary for the production or reproduction of documents, papers, or similarmateri- als produced or reproduced for permanent preservation pursuant to law. 3. The department, in conjunction with the department of natural resources, shall review

theprocurement specifications currently usedby the state to eliminate,whereverpossible, dis- crimination against the procurement of products manufactured with recoveredmaterials and soybean-based inks. 4. The department of natural resources shall assist the department in locating suppliers of

recycled products and soybean-based inks and collecting data on recycled content and soy- bean-based ink purchases. 5. Information on recycled content shall be requested on all bids for paper products other

354LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

than printing andwriting paper issued by the state and on other bids for products which could have recycled content such as oil, plastic products, including but not limited to compost mate- rials, aggregate, solvents, soybean-based inks, and rubber products. Except for purchases of printing andwriting papermade pursuant to subsection 2, paragraphs “c” and “d”, the depart- ment shall require persons submitting bids for printing and writing paper to certify that the printing andwriting paper proposed complies with the requirements referred to in subsection 2, paragraph “a”. 6. The department, in conjunction with the department of natural resources, shall adopt

rules to administer this section. 7. All state agencies shall fully cooperate with the department and with the department of

natural resources in all phases of implementing this section. 8. The department, whenever technically feasible, shall purchase and use degradable loose

foam packing material manufactured from grain starches or other renewable resources, un- less the cost of the packing material is more than ten percent greater than the cost of packing material made from nonrenewable resources. For the purposes of this subsection, “packing material” means material, other than an exterior packing shell, that is used to stabilize, pro- tect, cushion, or brace the contents of a package.

Sec. 35. NEW SECTION. 8A.316 LUBRICANTS AND OILS — PREFERENCES. The department shall do all of the following: 1. Revise its procedures and specifications for the purchase of lubricating oil and industrial

oil to eliminate exclusion of recycled oils and any requirement that oils bemanufactured from virgin materials. 2. Require that purchases of lubricating oil and industrial oil bemade from the seller whose

oil product contains the greatest percentageof recycled oil, unless oneof the followingcircum- stances regarding a specific oil product containing recycled oil exists: a. The product is not available within a reasonable period of time or in quantities necessary

or in container sizes appropriate to meet a state agency’s needs. b. The product does notmeet the performance requirements or standards recommended by

the equipment or vehicle manufacturer, including any warranty requirements. c. The product is available only at a cost greater than one hundred five percent of the cost

of comparable virgin oil products. 3. Establish andmaintain a preference program for procuring oils containing themaximum

content of recycled oil. The preference program shall include but is not limited to all of the following: a. The inclusion of the preferences for recycled oil products in publications used to solicit

bids from suppliers. b. Theprovisionof adescriptionof the recycledoil procurement programat bidders’ confer-

ences. c. Discussion of the preference program in lubricating oil and industrial oil procurement so-

licitations or invitations to bid. d. Efforts to inform industry trade associations about the preference program. 4. a. Provide that when purchasing hydraulic fluids, greases, and other industrial lubri-

cants, the department or a state agency authorized by the department to directly purchase hy- draulic fluids, greases, and other industrial lubricants shall give preference to purchasing bio- based hydraulic fluids, greases, and other industrial lubricants manufactured from soybeans. b. Provide for the implementation of requirements necessary in order to carry out this sub-

section by the department or state agency making the purchase, which shall include all of the following: (1) Including the preference requirements in publications used to solicit bids for hydraulic

fluids, greases, and other industrial lubricants. (2) Describing the preference requirements at bidders’ conferences in which bids for the

sale of hydraulic fluids, greases, and other industrial lubricants are sought by the department or authorized state agency.

355 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

(3) Discussing the preference requirements in procurement solicitations or invitations to bid for hydraulic fluids, greases, and other industrial lubricants. (4) Informing industry trade associations about the preference requirements. c. As used in this subsection, unless the context otherwise requires: (1) “Bio-based hydraulic fluids, greases, and other industrial lubricants”means the same as

defined by the United States department of agriculture, if the department has adopted such a definition. If the United States department of agriculture has not adopted a definition, “bio- based hydraulic fluids, greases, and other industrial lubricants” means hydraulic fluids, greases, and other lubricants containing a minimum of fifty-one percent soybean oil. (2) “Other industrial lubricants” means lubricants used or applied to machinery.

PHYSICAL RESOURCES AND FACILITY MANAGEMENT

Sec. 36. NEW SECTION. 8A.321 PHYSICAL RESOURCES AND FACILITY MANAGE- MENT — DIRECTOR DUTIES — APPROPRIATION. In managing the physical resources of government, the director shall perform all of the fol-

lowing duties: 1. Provide for supervision over the custodians, and other employees of the department in

and about the capitol and other state buildings, and the state laboratories facility in Ankeny, except the buildings and grounds referred to in section 216B.3, subsection 6, at the seat of gov- ernment. 2. Institute, in thenameof the state, andwith the advice and consent of the attorneygeneral,

civil and criminal proceedings against any person for injury or threatened injury to any public property, including but not limited to intangible and intellectual property, under the person’s control. 3. Under the direction of the governor, provide, furnish, and pay for public utilities service,

heat, maintenance, minor repairs, and equipment in operating and maintaining the official residence of the governor of Iowa. 4. Contract, with the approval of the executive council, for the repair, remodeling, or, if the

condition warrants, demolition of all buildings and grounds of the state at the seat of govern- ment, at the state laboratories facility in Ankeny, and the institutions of the department of hu- man services and the department of corrections for which no specific appropriation has been made, if the cost of repair, remodeling, or demolition will not exceed one hundred thousand dollars when completed. The cost of repair projects for which no specific appropriation has been made shall be paid from the fund provided in section 7D.29. 5. Dispose of all personal property of the state under the director’s control as provided by

section8A.324when it becomesunnecessary orunfit for further useby the state. If thedirector concludes that the personal property is contaminated, contains hazardouswaste, or is hazard- ous waste, the director may charge the state agency responsible for the property for removal and disposal of the personal property. The director shall adopt rules establishing the proce- dures for inspecting, selecting, and removing personal property from state agencies or from state storage. 6. a. Lease all buildings and office space necessary to carry out the provisions of this article

or necessary for theproper functioningof any state agency at the seat of government. For state agencies at the seat of government, the director may lease buildings and office space in Polk county or in a county contiguous to Polk county. If no specific appropriation has been made, the proposed lease shall be submitted to the executive council for approval. The cost of any lease for which no specific appropriation has been made shall be paid from the fund provided in section 7D.29. b. When the general assembly is not in session, the director may request moneys from the

executive council for moving state agencies located at the seat of government from one loca- tion to another. The request may include moving costs, telecommunications costs, repair costs, or any other costs relating to the move. The executive council may approve and shall

356LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

pay the costs from funds provided in section 7D.29 if it determines the agency or department has no available funds for these expenses. c. Coordinate the leasing of buildings and office space by state agencies throughout the

state and develop cooperative relationshipswith the state board of regents in order to promote the colocation of state agencies. 7. Unless otherwise provided by law, coordinate the location, design, plans and specifica-

tions, construction, and ultimate use of the real or personal property to be purchased by a state agency forwhose benefit and use the property is being obtained. If the purchase of real or per- sonal property is to be financed pursuant to section 12.28, the department shall cooperatewith the treasurer of state in providing the information necessary to complete the financing of the property. A contract for acquisition, construction, erection, demolition, alteration, or repair by a

private person of real or personal property to be lease-purchased by the treasurer of state pursuant to section 12.28 is exempt from section 8A.311, subsections 1 and 9, unless the lease- purchase contract is funded in advance by a deposit of the lessor’s moneys to be administered by the treasurer of state under a lease-purchase contractwhich requires rent payments to com- mence upon delivery of the lessor’s moneys to the lessee. 8. With the authorization of a constitutionalmajority of each house of the general assembly

andapproval by the governor, disposeof real property belonging to the state and its state agen- cies upon terms, conditions, and consideration as the directormay recommend. If real proper- ty subject to sale under this subsection has been purchased or acquired from appropriated funds, the proceeds of the sale shall be deposited with the treasurer of state and credited to the general fund of the state or other fund from which appropriated. There is appropriated from that same fund, with the prior approval of the executive council and in cooperation with the director, a sumequal to the proceeds sodeposited and credited to the state agency towhich the disposed real property belonged or by which it was used, for purposes of the state agency. 9. Subject to the selection procedures of section 12.30, employ financial consultants, banks,

insurers, underwriters, accountants, attorneys, and other advisors or consultants necessary to implement the provisions of subsection 7. 10. Prepare annual status reports for all ongoing capital projects of all state agencies, as de-

fined in section 8.3A, and submit the status reports to the legislative capital projects commit- tee. 11. Call upon any state agency, as defined in section 8.3A, for assistance the director may

require inperforming thedirector’s dutiesunder subsection10 regardingcapital project status reports. All state agencies, upon the request of the director andwith the approval of the direc- tor of the department of management, shall assist the director and are authorized to make available to the director any existing studies, surveys, plans, data, and other materials in the possession of the state agencies which are relevant to the director’s duties. 12. In carrying out the requirements of section 64.6, purchase an individual or a blanket

surety bond insuring the fidelity of state officers. The department may self-assume or self- insure fidelity exposures for state officials and employees. A state official is deemed to have furnished surety if the official has been covered by a program of insurance or self-insurance establishedby thedepartment. To the extent possible, all bonded state employees shall be cov- ered under one or more blanket bonds or position schedule bonds. 13. Review the management of state property loss exposures and state liability risk expo-

sures for the capitol complex. Insurance coverage may include self-insurance or any type of insuranceprotection soldby insurers, including, but not limited to, full coverage, partial cover- age, coinsurance, reinsurance, and deductible insurance coverage. 14. Establish a monument maintenance account in the state treasury under the control of

the department. Funds for the maintenance of a state monument, whether received by gift, devise, bequest, or otherwise, shall be deposited in the account. Funds in the account shall be deposited in an interest-bearing account. Notwithstanding section 12C.7, interest earned on the account shall be deposited in the account and shall be used to maintain the designated monument. Any maintenance funds for a state monument held by the state and interest

357 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

earned on the funds shall be used to maintain the designated monument. Notwithstanding section 8.33, funds in the monument maintenance account at the end of a fiscal year shall not revert to the general fund of the state.

Sec. 37. NEWSECTION. 8A.322 BUILDINGSANDGROUNDS—SERVICES—PUBLIC USE. 1. The director shall provide necessary lighting, fuel, and water services for the state build-

ings and grounds located at the seat of government, and for the state laboratories facility in Ankeny, except the buildings and grounds referred to in section 216B.3, subsection 6. 2. Except for buildings and grounds described in section 216B.3, subsection 6; section 2.43,

unnumbered paragraph 1; and any buildings under the custody and control of the Iowa public employees’ retirement system, the director shall assign office space at the capitol, other state buildings, and elsewhere in the city of Des Moines, and the state laboratories facility in Ankeny, for all executive and judicial state agencies. Assignments may be changed at any time. The various officers to whom rooms have been so assigned may control the same while the assignment to them is in force. Official apartments shall be used only for the purpose of conducting the business of the state. The term “capitol” or “capitol building” as used in the Code shall be descriptive of all buildings upon the capitol grounds. The capitol building itself is reserved for the operations of the general assembly, the governor, and the courts and the assignment and use of physical facilities for the general assembly shall be pursuant to section 2.43. 3. The director shall establish, publish, and enforce rules regulating and restricting the use

by the public of the capitol buildings and grounds and of the state laboratories facility in Ankeny. The rules when established shall be posted in conspicuous places about the capitol buildings and grounds and the state laboratories facility, as applicable. Any person violating any rule, except a parking regulation, shall be guilty of a simple misdemeanor.

Sec. 38. NEW SECTION. 8A.323 PARKING REGULATIONS. 1. Thedirector shall establish, publish, and enforce rules regulating, restricting, or prohibit-

ing theuseby state officials, state employees, and thepublic, ofmotor vehicle parking facilities at the state capitol complex and at the state laboratories facility in Ankeny. The assignment of legislative parking spaces shall be under the control of the legislative council. The rules es- tablished by the director may establish fines for violations and a procedure for payment of the fines. The director may order payment of a fine and enforce the order in the district court. 2. Motor vehicles parked in violation of the rules may be removed without the owner’s or

operator’s consent and at the owner’s or operator’s expense. Motor vehicles removed and not claimed within thirty days of their removal or vehicles abandoned within the capitol grounds may be disposed of in accordance with the provisions of sections 321.85 through 321.91. 3. The parking rules established shall be posted in conspicuous places at the capitol com-

plex and at the state laboratories facility in Ankeny, as applicable. Copies of the rules shall be made available to all state officials and employees and any other person who requests a copy of the rules. 4. All fines collected by the department shall be forwarded to the treasurer of state and de-

posited in the general fund of the state.

Sec. 39. NEW SECTION. 8A.324 DISPOSAL OF PERSONAL PROPERTY. The director may dispose of personal property of the state under the director’s control by

any of the following means: 1. The director may dispose of unfit or unnecessary personal property by sale. Proceeds

from the sale of personal property shall be deposited in the general fund of the state. 2. If the director concludes that the personal property has little or no value, the directormay

enter into an agreement with a not-for-profit organization or governmental agency to dispose of the personal property. The not-for-profit organization or governmental agencymay charge the state agency in control of the property with the cost of removing and transporting the

358LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

property. Title to the personal property shall transferwhen the personal property is in the pos- session of the not-for-profit organization or governmental agency. If a governmental agency adds value to the property transferred to it and sells it, the proceeds from the sale shall be de- posited with the governmental agency and not in the general fund of the state. 3. Thedirectormaydisposeof presses, printing equipment, printing supplies, andotherma-

chinery or equipment used in the printing operation.

Sec. 40. NEW SECTION. 8A.325 SERVICES AND COMMODITIES ACCEPTED. The director may accept services, commodities, and surplus property and make provision

for warehousing and distribution to various departments and governmental subdivisions of the state, and such other agencies, institutions, and authorized recipients within the state as may be from time to time designated in federal statutes and rules.

Sec. 41. NEW SECTION. 8A.326 TERRACE HILL COMMISSION. 1. The Terrace Hill commission is created consisting of nine persons, appointed by the gov-

ernor,who are knowledgeable in businessmanagement and historic preservation and renova- tion. The governor shall appoint the chairperson. The terms of the commission members are for three years beginning on July 1 and ending on June 30. 2. The Terrace Hill commission may consult with the Terrace Hill society, Terrace Hill

foundation, the executive and legislative branches of this state, and other persons interested in the property. 3. The Terrace Hill commissionmay enter into contracts, subject to this chapter, to execute

its purposes. 4. The commissionmay adopt rules to administer the programs of the commission. The de-

cision of the commission is final agency action under chapter 17A.

Sec. 42. NEW SECTION. 8A.327 RENT REVOLVING FUND CREATED — PURPOSE. 1. A rent revolving fund is created in the state treasury under the control of the department

to be used by the department to pay the lease or rental costs of all buildings and office space necessary for the proper functioningof any state agency at the seat of state government as pro- vided in section 8A.321, subsection 6, except that this fund shall not be used to pay the rental or lease costs of a state agency which has not received funds budgeted for rental or lease pur- poses. 2. The director shall pay the lease or rental fees to the renter or lessor and submit amonthly

statement to each state agency for which building and office space is rented or leased. If the director pays the lease or rental fees on behalf of a state agency, the state agency’s payment to the department shall be credited to the rent revolving fund established by this section. With the approval of the director, a state agency may pay the lease or rental cost directly to the per- son who is due the payment under the lease or rental agreement.

Sec. 43. NEW SECTION. 8A.328 RECYCLING REVOLVING FUND. A recycling revolving fund is created within the state treasury under the control of the de-

partment. The fund shall consist of anymoneys appropriated by the general assembly and any other moneys available to and obtained or accepted by the department from the federal gov- ernment or private sources for placement in the fund. The assets of the fund shall be used by the department only for supporting recycling operations. Moneys in the fund shall be drawn upon thewritten requisition of thedirector or an authorized representative of thedirector. The fund is subject to an annual audit by the auditor of state. Section 8.33 does not apply to any moneys in the fund. Notwithstanding section 12C.7, subsection 2, interest or earnings onmon- eys deposited in the fund shall be credited to the fund.

Sec. 44. NEW SECTION. 8A.329 WASTEPAPER RECYCLING PROGRAM. 1. The department in accordance with recommendations made by the department of natu-

ral resources shall require all state agencies to establish an agency wastepaper recycling

359 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

program. The director shall adopt rules which require a state agency to develop a program to ensure the recycling of the wastepaper generated by the agency. All state employees shall practice conservation of paper materials. 2. For the purposes of this section, “agency wastepaper” means wastepaper or wastepaper

products generated by the agency. 3. The rules adopted by the director shall provide for the continuation of existing state

agency contracts which provide for alternative waste management not including incineration or land burial of agency wastepaper.

PRINTING

Sec. 45. NEW SECTION. 8A.341 STATE PRINTING — DUTIES. The director shall do all of the following as it relates to printing: 1. Provide general supervision of all matters pertaining to public printing, including the en-

forcement of contracts for printing, except as otherwise provided by law. The supervision shall include providing guidelines for the letting of contracts for printing, the manner, form, style, and quantity of public printing, and the specifications and advertisements for public printing. In addition, the director shall have charge of office equipment and supplies and of the stock, if any, required in connection with printing contracts. 2. If money is appropriated for this purpose, by November 1 of each year supply a report

which contains the name, gender, county, or city of residence when possible, official title, salary receivedduring theprevious fiscal year, base salary as computed on July 1of the current fiscal year, and traveling and subsistence expense of the personnel of eachof the departments, boards, and commissions of the state government except personnel who receive an annual salary of less than one thousand dollars. The number of the personnel and the total amount received by them shall be shown for each department in the report. All employees who have drawn salaries, fees, or expense allowances from more than one department or subdivision shall be listed separately under the proper departmental heading. On the request of the direc- tor, the head of each department, board, or commission shall furnish the data covering that agency. The report shall be distributed upon requestwithout charge to each caucus of the gen- eral assembly, the legislative service bureau, the legislative fiscal bureau, the chief clerk of the house of representatives, and the secretary of the senate. Copies of the report shall be made available to other persons in both print or electronic medium upon payment of a fee, which shall not exceed the cost of providing the copy of the report. Sections 22.2 through 22.6 apply to the report. All funds from the sale of the report shall be deposited in the printing revolving fund established in section 8A.345. Requests for print publications shall be handled only upon receipt of postage by the director. 3. Deposit receipts from the sale of presses, printing equipment, printing supplies, and oth-

ermachinery or equipment used in the printing operation in the printing revolving fund estab- lished in section 8A.345.

Sec. 46. NEW SECTION. 8A.342 CONTRACTS WITH STATE INSTITUTIONS. The director may, without advertising for bids, enter into contracts or make provision for

doing any of thework coming under the provisions of chapter 7A and this article at any school or institution under the ownership or control of the state. Thework shall be done under condi- tions substantially the same as those provided for in the case of contracts with individuals and the same standard of quality or product shall be required.

Sec. 47. NEW SECTION. 8A.343 SPECIFICATIONS AND REQUIREMENTS. The director shall, from time to time, adopt and print specifications and requirements cover-

ing all matters relating to printing that are the subject of contracts.

Sec. 48. NEW SECTION. 8A.344 PUBLIC PRINTING — BIDDING PROCEDURES. 1. The director shall advertise for bids for public printing. Advertisements shall statewhere

360LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

and how specifications and other necessary information may be obtained, the time during which the director will receive bids, and the day, hour, and place when bids will be publicly opened or accessed, and the manner by which the contracts will be awarded. 2. The director shall supply prospective bidders and others on request with the specifica-

tions and requirements, blank forms for bids, samples of printing so far as possible, and all other information pertaining to the subject. 3. The specifications shall be kept on file in the office of the director, open to public inspec-

tion, together with samples so far as possible, of the work to be done or the material to be fur- nished. 4. Bids submitted must be: a. Secured in writing, by telephone, by facsimile, or in a format prescribed by the director

as indicated in the bid specifications. b. Signed by the bidder, or if a telephoneor electronic bid, confirmedby the bidder in aman-

ner prescribed by the director. c. Submitted in a format prescribed by the directorwhich reasonably assures the authentic-

ity of the bid and the bidder’s identity. d. Submitted to the department as specified by the date and time established in the adver-

tisements for bids. 5. When a bidder submits a bid to the department, the directormay require the bidder to file

a bid bond or a certified or cashier’s check payable to the treasurer of state in an amount to be fixed in the bid specifications, either covering all classes or items or services, or separate certified or cashier’s checks for each bid in case the bidder makes more than one bid. In lieu of a certified or cashier’s check, the biddermay furnish a yearly bond in an amount to be estab- lished by the director. Certified or cashier’s checks deposited by unsuccessful bidders, and by successful bidders when they have entered into the contract, shall be returned to them. 6. All bids shall be publicly opened or accessed and read and the contracts awarded in the

manner designated in the bid specifications. In the award of a contract, due consideration shall be given to the price bid, mechanical and other equipment proposed to be used by the bidder, the financial responsibility of the bidder, the bidder’s ability and experience in the per- formance of similar contracts, and any other factors that the department determines are rele- vant and that are included in the bid specifications. 7. The director shall have the right to reject any or all bids, and in case of rejection or be-

cause of failure of a bidder to enter into a contract, the director may advertise for and secure new bids. 8. When the director is satisfied that bidders have presented bids pursuant to an agreement,

understanding, or combination to prevent free competition, the director shall reject all of them and readvertise for bids as in the first instance.

Sec. 49. NEW SECTION. 8A.345 PRINTING REVOLVING FUND. A revolving fund is created in the state treasury under the control of the department andmay

beused inmakingpayments for supplyingpaper stock, offset printing, copypreparation, bind- ing, distribution costs, and original payment of printing and binding claims for any of the state departments, bureaus, commissions, or institutions. All salaries and expenses properly chargeable to the fund shall be paid from the fund. The director may also use the fund for the purchase of replacement or additional equipment, if a sufficient balance will remain in the fund to enable the continued operation of the printing operations of the department.

DOCUMENT MANAGEMENT

Sec. 50. NEW SECTION. 8A.351 DISTRIBUTIONOF DOCUMENTS—GENERAL PRO- VISIONS. If money is appropriated for this purpose, the director shall do all of the following: 1. The director shall require from officials or heads of departments mailing lists, or ad-

dressed labels or envelopes, for use in distribution of reports and documents. The director

361 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

shall revise such lists, eliminating duplications and adding to the lists libraries, institutions, public officials, and persons having actual use for thematerial. The director shall arrange the lists so as to reduce to theminimum the postage or other cost for delivery. Requests for publi- cations shall be handled only upon receipt of postage by the director from the requesting agency or department. 2. The director shall furnish the various officials and departments with copies of their re-

ports needed for office use or to be distributed to persons requesting the reports. Requests for publications shall be handled only upon receipt of postage by the director. 3. The director may send additional copies of publications to other state officials, individu-

als, institutions, libraries, or societies that may request them. Requests for publications shall be handled only upon receipt of postage by the director.

FLEET MANAGEMENT

Sec. 51. NEWSECTION. 8A.361 VEHICLEASSIGNMENT—AUTHORITY INDEPART- MENT. The department shall provide for the assignment of all state-owned motor vehicles to all

state officers and employees, and to all state offices, departments, bureaus, and commissions, except the department of transportation, institutions under the control of the state board of regents, the department for the blind, and any other agencies exempted by law.

Sec. 52. NEW SECTION. 8A.362 FLEET MANAGEMENT — POWERS AND DUTIES — FUEL ECONOMY REQUIREMENTS. 1. The director may provide for the assignment to a state officer or employee or to a state

agency, of one ormoremotor vehicles whichmay be required by the state officer or employee or state agency, after the state officer or employee or state agency has shown the necessity for such transportation. The director may assign a motor vehicle either for part-time or full-time use. The director may revoke the assignment at any time. 2. The director may cause all state-owned motor vehicles to be inspected periodically.

Whenever the inspection reveals that repairs have been improperlymade on themotor vehicle or that the operator is not giving the motor vehicle the proper care, the director shall report this fact to the head of the state agency towhich themotor vehicle has been assigned, together with recommendation for improvement. 3. The director shall provide for a record system for the keeping of records of the total num-

ber of miles state-owned motor vehicles are driven and the per-mile cost of operation of each motor vehicle. Every state officer or employee shall keep a record book to be furnished by the director in which the officer or employee shall enter all purchases of gasoline, lubricating oil, grease, and other incidental expense in the operation of themotor vehicle assigned to the offi- cer or employee, giving the quantity and price of each purchase, including the cost and nature of all repairs on themotor vehicle. Each operator of a state-ownedmotor vehicle shall prompt- ly prepare a report at the end of eachmonth on forms furnished by the director and forwarded to the director, giving the information the director may request in the report. Each month the director shall compile the costs and mileage of state-owned motor vehicles from the reports and keep a cost history for eachmotor vehicle and the costs shall be reduced to a cost-per-mile basis for each motor vehicle. The director shall call to the attention of an elected official or the head of any state agency to which a motor vehicle has been assigned any evidence of the mishandling or misuse of a state-owned motor vehicle which is called to the director’s atten- tion. Amotor vehicle operated under this subsection shall not operate on gasoline other than gas-

oline blended with at least ten percent ethanol, unless under emergency circumstances. A state-issued credit card used to purchase gasoline shall not be valid to purchase gasoline other than gasoline blended with at least ten percent ethanol, if commercially available. The motor vehicle shall also be affixed with a brightly visible sticker which notifies the traveling public that the motor vehicle is being operated on gasoline blended with ethanol. However,

362LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

the sticker is not required to be affixed to an unmarked vehicle used for purposes of providing law enforcement or security. 4. a. The director shall provide for the purchase of all motor vehicles for all branches of the

state government, except the department of transportation, institutions under the control of the state board of regents, the department for the blind, and any other state agency exempted by law. The director shall purchase new vehicles in accordancewith competitive bidding pro- cedures for items or services as provided in this article. The director may purchase used or preowned vehicles at governmental or dealer auctions if the purchase is determined to be in the best interests of the state. b. The director, and any other state agency, which for purposes of this subsection includes

but is not limited to community colleges and institutions under the control of the state board of regents, or local governmental subdivisions purchasing newmotor vehicles, shall purchase new passenger vehicles and light trucks so that the average fuel efficiency for the fleet of new passenger vehicles and light trucks purchased in that year equals or exceeds the average fuel economy standard for the vehicles’ model year as established by the United States secretary of transportation under 15 U.S.C. § 2002. This paragraph does not apply to vehicles pur- chased for lawenforcement purposes or used for off-roadmaintenancework, orwork vehicles used to pull loaded trailers. c. Not later than February 15 of each year, the director shall report compliancewith the cor-

porate average fuel economystandardspublishedby theUnitedStates secretaryof transporta- tion for newmotor vehicles, other than motor vehicles purchased by the department of trans- portation, institutions under the control of the state board of regents, the department for the blind, and any other state agency exempted from the requirements of this subsection. The re- port of compliance shall classify the vehicles purchased for the current vehiclemodel year us- ing the following categories: passenger automobiles, enforcement automobiles, vans, and light trucks. The director shall deliver a copy of the report to the department of natural re- sources. As used in this paragraph, “corporate average fuel economy” means the corporate average fuel economy as defined in 49 C.F.R. § 533.5. d. The director shall assign motor vehicles available for use to maximize the average pas-

sengermiles per gallon ofmotor vehicle fuel consumed. In assigningmotor vehicles, thedirec- tor shall consider standards established by the director, whichmay include but are not limited to the number of passengers traveling to a destination, the fuel economy of and passenger ca- pacity of vehicles available for assignment, and any other relevant information, to assure as- signment of the most energy-efficient vehicle or combination of vehicles for a trip from those vehicles available for assignment. The standards shall not apply to special work vehicles and law enforcement vehicles. The standards shall apply to the following agencies: (1) Department of transportation. (2) Institutions under the control of the state board of regents. (3) Department for the blind. (4) Any other state agency exempted from obtaining vehicles for use through the depart-

ment. e. As used in paragraph “d”, “fuel economy” means the average number of miles traveled

by an automobile per gallon of gasoline consumedasdeterminedby theUnitedStates environ- mental protection agency administrator in accordance with 26 U.S.C. § 4064(c). 5. Of all new passenger vehicles and light pickup trucks purchased by the director, a mini-

mum of ten percent of all such vehicles and trucks purchased shall be equipped with engines which utilize alternative methods of propulsion including but not limited to any of the follow- ing: a. A flexible fuel, which is any of the following: (1) A fuel blended with not more than fifteen percent gasoline and at least eighty-five per-

cent ethanol. (2) A fuel which is a mixture of diesel fuel and processed soybean oil. At least twenty per-

cent of the mixed fuel by volume must be processed soybean oil.

363 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

(3) A renewable fuel approved by the office of renewable fuels and coproducts pursuant to section 159A.3. b. Compressed or liquefied natural gas. c. Propane gas. d. Solar energy. e. Electricity. This subsection does not apply to vehicles and trucks purchased and directly used for law

enforcement or purchased and used for off-road maintenance work or to pull loaded trailers. 6. All used motor vehicles turned in to the director shall be disposed of by public auction,

and the sales shall be advertised in a newspaper of general circulation one week in advance of sale, and the receipts from the sale shall be deposited in the depreciation fund to the credit of the state agency turning in the vehicle; except that, in the case of a used motor vehicle of special design, the directormay, instead of selling it at public auction, authorize themotor ve- hicle to be traded for another vehicle of similar design. If a vehicle sustains damage and the cost to repair exceeds thewholesale value of the vehicle, the directormay dispose of themotor vehicle by obtaining two ormore written salvage bids and the vehicle shall be sold to the high- est responsible bidder. 7. The director may authorize the establishment of motor pools consisting of a number of

state-ownedmotor vehicles under thedirector’s supervision. Thedirectormay store themotor vehicles in a public or private garage. If the director establishes amotor pool, any state officer or employee desiring the use of a state-owned motor vehicle on state business shall notify the director of the need for a vehicle within a reasonable time prior to actual use of the motor ve- hicle. The director may assign a motor vehicle from the motor pool to the state officer or em- ployee. If twoormore state officers or employeesdesire theuseof a state-ownedmotor vehicle for a trip to the same destination for the same length of time, the director may assign one ve- hicle to make the trip. 8. The director shall require that a sign be placed on each state-owned motor vehicle in a

conspicuousplacewhich indicates its ownershipby the state. This requirement shall not apply tomotor vehicles requested to be exempt by the director or by the commissioner of public safe- ty. All state-ownedmotor vehicles shall display registration plates bearing the word “official” except motor vehicles requested to be furnished with ordinary plates by the director or by the commissioner of public safety pursuant to section 321.19. The director shall keep an accurate record of the registration plates used on all state-owned motor vehicles. 9. All fuel used in state-owned automobiles shall be purchased at cost from the various

installations or garages of the department of transportation, state board of regents, depart- ment of human services, or state motor pools throughout the state, unless the state-owned sources for the purchase of fuel are not reasonably accessible. If the director determines that state-owned sources for the purchase of fuel are not reasonably accessible, the director shall authorize the purchase of fuel fromother sources. The directormay prescribe amanner, other than the use of the revolving fund, in which the purchase of fuel from state-owned sources is charged to the state agency responsible for the use of the motor vehicle. The director shall prescribe the manner in which oil and other normal motor vehicle maintenance for state- owned motor vehicles may be purchased from private sources, if they cannot be reasonably obtained from a state motor pool. The director may advertise for bids and award contracts in accordance with competitive bidding procedures for items and services as provided in this ar- ticle for furnishing fuel, oil, grease, and vehicle replacement parts for all state-owned motor vehicles. The director and other state agencies, when advertising for bids for gasoline, shall also seek bids for ethanol blended gasoline.

Sec. 53. NEW SECTION. 8A.363 PRIVATE USE PROHIBITED — RATE FOR STATE BUSINESS. 1. A state officer or employee shall not use a state-ownedmotor vehicle for personal private

use. A state officer or employee shall not be compensated for driving a privately ownedmotor

364LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

vehicle unless it is done on state business with the approval of the director. In that case the state officer or employee shall receive an amount to be determined by the director. The amount shall not exceed the maximum allowable under the federal internal revenue service rules permile, notwithstanding establishedmileage requirements or depreciation allowances. However, the director may authorize private motor vehicle rates in excess of the rate allowed under the federal internal revenue service rules for statebusiness useof substantiallymodified or specially equipped privately owned vehicles required by persons with disabilities. A statu- tory provision establishing reimbursement for necessary mileage, travel, or actual expenses to a state officer falls under the private motor vehicle mileage rate limitation provided in this section unless specifically provided otherwise. Any peace officer employed by the state as de- fined in section 801.4 who is required to use a privatemotor vehicle in the performance of offi- cial duties shall receive the private vehicle mileage rate at the rate provided in this section. However, the director may delegate authority to officials of the state, and department heads, for the use of private vehicles on state business up to a yearly mileage figure established by thedirector. If a statemotor vehiclehasbeenassigned toa stateofficer or employee, theofficer or employee shall not collect mileage for the use of a privately ownedmotor vehicle unless the state motor vehicle assigned is not useable. 2. This section does not apply to any of the following: a. Officials and employees of the state whose mileage is paid other than by a state agency. b. Elected officers of the state. c. Judicial officers or court employees. d. Members and employees of the general assemblywho shall be governed by policies relat-

ing to motor vehicle travel, including but not limited to reimbursement for expenses, if such policies are otherwise established by the general assembly.

Sec. 54. NEW SECTION. 8A.364 FLEET MANAGEMENT REVOLVING FUND — RE- PLENISHMENT. 1. A fleet management revolving fund is created in the state treasury under the control of

the department. There is appropriated frommoneys in the state treasury not otherwise appro- priated the sum of twenty-five thousand dollars to the revolving fund. All purchases of gaso- line, oil, tires, repairs, and all other general expenses incurred in the operation of state-owned motor vehicles, and all salaries and expenses of employees providing fleet management ser- vices shall be paid from this fund. 2. At the end of each month the director shall render a statement to each state department

or agency for the actual cost of operation of all motor vehicles assigned to such department or agency, together with a fair proportion of the administrative costs for providing fleet man- agement services during such month, as determined by the director, all subject to review by the executive council upon complaint of any state department or agency adversely affected. Such expenses shall be paid by the state departments or agencies in the samemanner as other expenses of such department are paid, and when such expenses are paid, such sums shall be credited to the fleet management revolving fund. If any surplus accrues to the revolving fund in excess of twenty-five thousanddollars forwhich there is no anticipated need or use, the gov- ernor may order such surplus transferred to the general fund of the state.

Sec. 55. NEWSECTION. 8A.365 VEHICLE REPLACEMENT—DEPRECIATION FUND. 1. The director shall maintain a depreciation fund for the purchase of replacement motor

vehicles and additions to the fleet. The director’s records shall show the total funds deposited by and credited to each department or agency. At the end of each month, the director shall render a statement to each state department or agency for additions to the fleet and total de- preciation credited to that department or agency. Such depreciation expense shall be paid by the state departments or agencies in the same manner as other expenses are paid, and shall be deposited in the depreciation fund to the credit of the department or agency. The funds credited to each department or agency shall remain the property of the department or agency. However, at the end of each biennium, the director shall cause to revert to the fund fromwhich it accumulated any unassigned depreciation.

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2. The department of corrections is not obligated to pay the depreciation expense otherwise required by this section.

Sec. 56. NEW SECTION. 8A.366 VIOLATIONS — WITHDRAWING USE OF VEHICLE. If any state officer or employee violates any of the provisions of sections 8A.361 through

8A.365, the director may withdraw the assignment of any state-owned motor vehicle to any such state officer or employee.

ARTICLE 4 HUMAN RESOURCES

STATE HUMAN RESOURCE MANAGEMENT — OPERATIONS

Sec. 57. NEW SECTION. 8A.401 DEFINITIONS. As used in this article, unless the context otherwise requires: 1. “Appointing authority” means the chairperson or person in charge of any state agency

including, but not limited to, boards, bureaus, commissions, and departments, or an employee designated to act for an appointing authority. 2. “Merit system” means the merit system established under this article.

Sec. 58. NEW SECTION. 8A.402 STATE HUMAN RESOURCE MANAGEMENT — RE- SPONSIBILITIES. 1. Thedepartment is the central agency responsible for state human resourcemanagement,

including the following: a. Policy and program development, workforce planning, and research. b. Employment activities and transactions, including recruitment, examination, and certifi-

cation of personnel seeking employment or promotion. c. Compensation and benefits, including position classification, wages and salaries, and

employee benefits. Employee benefits include, but are not limited to, group medical, dental, life, and long-term disability insurance, workers’ compensation, unemployment benefits, sick leave, deferred compensation, holidays and vacations, tuition reimbursement, and education- al leaves. d. Equal employment opportunity, affirmative action, and workforce diversity programs. e. Education, training, and workforce development programs. f. Personnel records and administration, including the audit of all personnel-related docu-

ments. g. Employment relations, including the negotiation and administration of collective bar-

gaining agreements on behalf of the executive branch of the state and its departments and agencies as provided in chapter 20. However, the state board of regents, for the purposes of implementing and administering collective bargaining pursuant to chapter 20, shall act as the exclusive representative of the statewith respect to its faculty, scientific, and other profession- al staff. h. The coordination and management of the state’s human resource information system,

except as otherwise required for those employees governed by chapter 262. 2. The department, as it relates to the human resources of state government, shall do the

following: a. Establish andmaintain a list of all employees in the executive branchof state government

and set forth, as to each employee, the class title, pay, status, and other pertinent data. For employees governed by chapter 262, the director shall work collaboratively with the state board of regents to collect such information. b. Foster and develop, in cooperation with appointing authorities and others, programs for

the improvement of employee effectiveness, including training, safety, health, counseling, and welfare. c. Encourage and exercise leadership in the development of effective personnel administra-

tion within the several state agencies, and to make available the facilities of the department to this end.

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d. The director may delegate any or all aspects of the recruitment, examination, and selec- tion processes to an agency in the executive branch upon request by that agency. The director shall oversee all activities delegated to that agency. e. Utilize appropriate persons, including officers and employees in the executive branch, to

assist in the recruitment and examination of applicants for employment. These officers and employees are not entitled to extra pay for their services, but shall be paid their necessary trav- eling and other expenses. 3. The human resourcemanagement powers and duties of the department do not extend to

the legislative branch or the judicial branch of state government, except for functions related to administering compensation and benefit programs.

MERIT SYSTEM

Sec. 59. NEW SECTION. 8A.411 MERIT SYSTEM ESTABLISHED — COLLECTIVE BARGAINING — APPLICABILITY. 1. The general purpose of this article is to establish for the state of Iowa a system of human

resource administration based on merit principles and scientific methods to govern the ap- pointment, compensation, promotion, welfare, development, transfer, layoff, removal, and discipline of its civil employees, and other incidents of state employment. 2. It is also the purpose of this article to promote the coordination of personnel rules and

policies with collective bargaining agreements negotiated under chapter 20. 3. All appointments and promotions to positions covered by the state merit system shall be

made solely on the basis of merit and fitness, to be ascertained by examinations or other ap- propriate screening methods, except as otherwise specified in this article. 4. Provisions of this article pertaining to qualifications, examination, certification, proba-

tion, and just cause apply only to employees covered by the merit system.

Sec. 60. NEWSECTION. 8A.412 MERIT SYSTEM—APPLICABILITY—EXCEPTIONS. Themerit system shall apply to all employees of the state and to all positions in state govern-

ment now existing or hereafter established. In addition, the director shall negotiate an agree- mentwith the director of the department for the blind concerning the applicability of themerit system to the professional employees of the department for the blind. However, themerit sys- tem shall not apply to the following: 1. Thegeneral assembly, employees of the general assembly, other officers elected bypopu-

lar vote, and persons appointed to fill vacancies in elective offices. 2. All judicial officers and court employees. 3. The staff of the governor. 4. All board members and commissioners whose appointments are provided for by the

Code. 5. All presidents, deans, directors, teachers, professional and scientific personnel, and stu-

dent employees under the jurisdiction of the state board of regents. The state board of regents shall adopt rules not inconsistent with the objectives of this chapter for all of its employees not cited specifically in this subsection. The rules are subject to approval by the director. If at any time the director determines that the state board of regents merit system rules do not comply with the intent of this chapter, the directormay direct the board to correct the rules. The rules of the board are not in compliance until the corrections are made. 6. All appointments which are by law made by the governor. 7. All personnel of the armed services under state jurisdiction. 8. Persons who are paid a fee on a contract-for-services basis. 9. Seasonal employees appointed during a state agency’s designated six-month seasonal

employment period during the same annual twelve-month period, as approvedby the director. 10. Residents, patients, or inmates working in state institutions, or persons on parolework-

ing in work experience programs. 11. Professional employees under the supervision of the attorney general, the state public

367 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

defender, the auditor of state, the treasurer of state, and the public employment relations board. However, employees of the consumer advocate division of the department of justice, other than the consumer advocate, are subject to the merit system. 12. Production and engineering personnel under the jurisdiction of the Iowa public broad-

casting board. 13. Members of the Iowa state patrol and other peace officers employed by the department

of public safety. The commissioner of public safety shall adopt rules not inconsistent with the objectives of this article for the persons described in this subsection. 14. Professional employees of the arts division of the department of cultural affairs. 15. The chief deputy administrative officer and each division administrator of each state

agency not otherwise specifically provided for in this section, and physicians not otherwise specifically provided for in this section. As used in this subsection, “division administrator” means a principal administrative or policymaking position designated by a chief administra- tive officer and approved by the director or as specified by law. 16. All confidential employees. 17. Other employees specifically exempted by law. 18. The administrator and the deputy administrator of the credit union division of the de-

partment of commerce, all members of the credit union review board, and all employees of the credit union division. 19. The superintendent and thedeputy superintendent of thebankingdivisionof thedepart-

ment of commerce, all members of the state banking board, and all employees of the banking division. 20. Chief deputy industrial commissioners. 21. The appointee serving as the coordinator of the office of renewable fuels and coprod-

ucts, as provided in section 159A.3. 22. All employees of the Iowa state fair authority. 23. Up to six nonprofessional employees designated at the discretion of each statewide

elected official. 24. The position classifications of employees of statewide elected officials thatwere exempt

from the merit system as of June 30, 1994, shall remain exempt and any employees subse- quently hired to fill any exempt position vacancies shall be classified as exempt employees.

Sec. 61. NEW SECTION. 8A.413 STATE HUMAN RESOURCE MANAGEMENT — RULES. The department shall adopt rules for the administration of this article pursuant to chapter

17A. Rulemaking shall be carried out with due regard to the terms of collective bargaining agreements. A rule shall not supersede a provision of a collective bargaining agreement nego- tiated under chapter 20. The rules shall provide: 1. For the preparation, maintenance, and revision of a job classification plan that encom-

passes each job in the executive branch, excluding job classifications under the state board of regents, based upon assigned duties and responsibilities, so that the same general qualifica- tions may reasonably be required for and the same pay plan may be equitably applied to all jobs in the same job classification. The director shall classify the position of every employee in the executive branch, excluding employees of the state board of regents, into one of the classes in the plan. An appointing authority or employee adversely affected by a classification or reclassification decision may file an appeal with the director. Appeals of a classification or reclassification decision shall be exempt from the provisions of section 17A.11 and shall be heard by a committee appointed by the director. The classification or reclassification of a posi- tion that would cause the expenditure of additional salary funds shall not become effective if the expenditure of funds would be in excess of the total amount budgeted for the department of the appointing authority until budgetary approval has been obtained from the director of the department of management. When thepublic interest requires a decreaseor increaseof employees in anyposition or type

of employment not otherwise provided by law, or the creation or abolishment of any position

368LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

or type of employment, the director, acting in good faith, shall so notify the governor. Thereaf- ter, the position or type of employment shall stand abolished or created and the number of em- ployees therein reduced or increased. 2. For pay plans covering all employees in the executive branch, excluding employees of the

state board of regents, after consultation with the governor and appointing authorities, and consistent with the terms of collective bargaining agreements negotiated under chapter 20. 3. For examinations to determine the relative fitness of applicants for employment. Such

examinations shall bepractical in character andshall relate to suchmatters aswill fairly assess the ability of the applicant to discharge the duties of the position to which appointment is sought. Where the Code of Iowa establishes certification, registration, or licensing provisions, such

documents shall be considered prima facie evidence of basic skills accomplishment and such persons shall be exempt from further basic skills examination. Vacancies shall be announced publicly at least ten days in advance of the date fixed for the

filing of applications for the vacancies, and shall be advertised through the communications media. The director may, however, in the director’s discretion, continue to receive applica- tions and examine candidates for a period adequate to assure a sufficient number of eligibles to meet the needs of the system, and may add the names of successful candidates to existing eligible lists. 4. For promotions which shall give appropriate consideration to the applicant’s qualifica-

tions, record of performance, and conduct. A promotion means a change in the status of an employee from a position in one class to a position in another class having a higher pay grade. 5. For the establishment of lists for appointment and promotion, upon which lists shall be

placed the names of successful candidates. 6. For the rejection of applicants who fail to meet reasonable requirements. 7. For the appointment by the appointing authority of a person on the appropriate list to fill

a vacancy. 8. For a probation period of six months, excluding educational or training leave, before ap-

pointment may bemade complete, and during which period a probationer may be discharged or reduced in class or pay. If the employee’s services are unsatisfactory, the employee shall be dropped from thepayroll on or before the expiration of theprobation period. If satisfactory, the appointment shall be deemed permanent. The determination of the appointing authority shall be final and conclusive. 9. For temporary employment for notmore than sevenhundred eightyhours in a fiscal year. 10. For provisional employmentwhen there is no appropriate list available. Suchprovision-

al employment shall not continue longer than one hundred eighty calendar days. 11. For transfer from a position in one state agency to a similar position in the same state

agency or another state agency involving similar qualifications, duties, responsibilities, and salary ranges. Whenever an employee transfers or is transferred from one state agency to an- other state agency, the employee’s seniority rights, any accumulated sick leave, and accumu- lated vacation time, asprovided in the law, shall be transferred to thenewplace of employment and credited to the employee. Employeeswho are subject to contracts negotiated under chap- ter 20 which include transfer provisions shall be governed by the contract provisions. 12. For reinstatement of persons who have attained permanent status and who resign in

good standing or who are laid off from their positions without fault or delinquency on their part. 13. For establishing in cooperation with the appointing authorities a performancemanage-

ment system for all employees in the executive branch, excluding employees of the state board of regents, which shall be considered in determining salary increases; as a factor in promo- tions; as a factor in determining the order of layoffs and in reinstatement; as a factor in demo- tions, discharges, and transfers; and for the regular evaluation, at least annually, of the qualifi- cations and performance of those employees. 14. For layoffs by reason of lack of funds or work, or reorganization, and for the recall of

employees so laid off, giving consideration in layoffs to the employee’s performance record

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and length of service. An employee who has been laid off may be on a recall list for one year, which list shall be exhausted by the organizational unit enforcing the layoff before selection of an employee may be made from the promotional or nonpromotional list in the employee’s classification. Employees who are subject to contracts negotiated under chapter 20 which in- clude layoff and recall provisions shall be governed by the contract provisions. 15. For imposition, as a disciplinary measure, of a suspension from service without pay. 16. For discharge, suspension, or reduction in job classification or pay grade for any of the

following causes: failure to perform assigned duties; inadequacy in performing assigned du- ties; negligence; inefficiency; incompetence; insubordination; unrehabilitated alcoholism or narcotics addiction; dishonesty; unlawful discrimination; failure tomaintain a license, certifi- cate, or qualification necessary for a job classification or position; any act or conduct which adversely affects the employee’s performance or the employing agency; or any other good cause for discharge, suspension, or reduction. The person discharged, suspended, or reduced shall be given a written statement of the reasons for the discharge, suspension, or reduction within twenty-four hours after the discharge, suspension, or reduction. All persons concerned with the administration of this article shall use their best efforts to ensure that this article and the rules adoptedpursuant to this article shall not beameansofprotectingor retainingunqual- ified or unsatisfactory employees, and shall discharge, suspend, or reduce in job classification or pay grade all employees who should be discharged, suspended, or reduced for any of the causes stated in this subsection. 17. For establishment of a uniform plan for resolving employee grievances and complaints.

Employees who are subject to contracts negotiated under chapter 20 which include grievance and complaint provisions shall be governed by the contract provisions. 18. For attendance regulations, and special leaves of absence, with or without pay, or re-

duced pay, in the various classes of positions in the executive branch, excluding positions un- der the state board of regents. Employeeswho are subject to contracts negotiated under chap- ter 20 which include leave of absence provisions shall be governed by the contract provisions. Annual sick leave and vacation time shall be granted in accordance with section 70A.1. 19. For the development and operation of programs to improve the work effectiveness and

morale of employees in the executive branch, excluding employees of the state board of re- gents, including training, safety, health, welfare, counseling, recreation, and employee rela- tions. 20. Notwithstandinganyprovisions to the contrary, a rule or regulation shall not be adopted

by the department whichwould deprive the state of Iowa, or any of its agencies or institutions, of federal grants or other forms of financial assistance. 21. For veterans preference through a provision that veterans, as defined in section 35.1,

shall have five points added to the grade or score attained in qualifying examinations for ap- pointment to jobs. Veterans who have a service-connected disability or are receiving compensation, disability

benefits, or pension under laws administered by the veterans administration shall have ten points added to the grades attained in qualifying examinations. A veteran who has been awarded the purple heart for disabilities incurred in action shall be considered to have a service-connected disability. 22. For acceptance of the qualifications, requirements, regulations, and general provisions

established under other sections of the Code pertaining to professional registration, certifica- tion, and licensing.

Sec. 62. NEW SECTION. 8A.414 EXPERIMENTAL RESEARCH PROJECTS. The director may conduct experimental or research personnel-related projects of limited

duration designed to improve the quality of the employment system. The provisions of section 8A.413 or administrative rules adopted pursuant to that section are waived for the purposes of such projects. Projects adopted under this authority shall not violate existing collective bar- gaining agreements. Any projects that relate to issues covered by such agreements or issues that are mandatory subjects of collective bargaining are subject to negotiations as applicable.

370LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

The director shall notify the chairpersons of the standing committees on appropriations of the senate and the house of representatives and the chairpersons of the appropriate subcommit- tees of those committees of the proposed projects. The notice from the director shall include the purpose of the project, a description of the project, and how the project will be evaluated. Chairpersonsnotified shall be given at least twoweeks to reviewand comment on theproposal before the project is implemented. The director shall report the results of the experimental research projects conducted in the preceding fiscal year to the legislative council by Septem- ber 30 of each year.

Sec. 63. NEW SECTION. 8A.415 GRIEVANCES AND DISCIPLINE RESOLUTION. 1. GRIEVANCES. An employee, except an employee covered by a collective bargaining

agreementwhichprovides otherwise,whohas exhausted the available agency steps in theuni- form grievance procedure provided for in the department rules may, within seven calendar days following thedate adecisionwas receivedor shouldhavebeen receivedat the secondstep of the grievance procedure, file the grievance at the third step with the director. The director shall respond within thirty calendar days following receipt of the third step grievance. If not satisfied, the employee may, within thirty calendar days following the director’s re-

sponse, file an appeal with the public employment relations board. The hearing shall be con- ducted in accordance with the rules of the public employment relations board and the Iowa administrative procedure Act, chapter 17A. Decisions rendered shall be based upon a stan- dard of substantial compliance with this article and the rules of the department. Decisions by the public employment relations board constitute final agency action. For purposes of this subsection, “uniformgrievanceprocedure” doesnot includeprocedures

for discipline and discharge. 2. DISCIPLINE RESOLUTION. A merit system employee, except an employee covered by

a collective bargaining agreement, who is discharged, suspended, demoted, or otherwise re- duced in pay, except during the employee’s probationary period, may bypass steps one and two of the grievance procedure and appeal the disciplinary action to the director within seven calendar days following the effective date of the action. The director shall respond within thirty calendar days following receipt of the appeal. If not satisfied, the employee may, within thirty calendar days following the director’s re-

sponse, file an appealwith the public employment relations board. The employee has the right to a hearing closed to the public, unless a public hearing is requested by the employee. The hearing shall otherwise be conducted in accordance with the rules of the public employment relations board and the Iowa administrative procedure Act, chapter 17A. If the public employ- ment relations board finds that the action taken by the appointing authority was for political, religious, racial, national origin, sex, age, or other reasons not constituting just cause, the em- ployee may be reinstated without loss of pay or benefits for the elapsed period, or the public employment relations boardmay provide other appropriate remedies. Decisions by the public employment relations board constitute final agency action.

Sec. 64. NEW SECTION. 8A.416 DISCRIMINATION, POLITICAL ACTIVITY, USE OF OFFICIAL INFLUENCE PROHIBITED. 1. A person shall not be appointed or promoted to, or demoted or discharged from, any posi-

tion in themerit system, or in anyway favoredor discriminatedagainstwith respect to employ- ment in the merit system because of the person’s political or religious opinions or affiliations or race or national origin or sex, or age. 2. Apersonholdingaposition in the classified service shall not, during theperson’sworking

hours or when performing the person’s duties or when using state equipment or at any time on state property, take part in any way in soliciting any contribution for any political party or anyperson seekingpolitical office, and such employee shall not engage in anypolitical activity that will impair the employee’s efficiency during working hours or cause the employee to be tardy or absent from work. This section does not preclude any employee from holding any office for which no pay is received or any office for which only token pay is received.

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3. A person shall not seek or attempt to use any political endorsement in connection with any appointment to a position in the merit system. 4. A person shall not use or promise to use, directly or indirectly, any official authority or

influence, whether possessed or anticipated, to secure or attempt to secure for any person an appointment or advantage in appointment to a position in the merit system, or an increase in pay or other advantage in employment in any such position, for the purpose of influencing the vote or political action of any person or for any consideration. 5. An employee shall not use the employee’s official authority or influence for the purpose

of interfering with an election or affecting the results thereof. 6. Any officer or employee who violates this section shall be subject to suspension, dismiss-

al, or demotion subject to the right of appeal provided in this article. 7. The director shall adopt any rules necessary for further restricting political activities of

employees in the executive branch, but only to the extent necessary to comply with federal standards. Employees retain the right to vote as they please and to express their opinions on all subjects.

Sec. 65. NEW SECTION. 8A.417 PROHIBITED ACTIONS. 1. A person shall not make any false statement, certificate, mark, rating, or report with re-

gard to any examination or appointment made under this article or in any manner commit or attempt to commit any fraud preventing the impartial execution of this article and the rules adopted pursuant to this article. 2. A person shall not, directly or indirectly, give, render, pay, offer, solicit, or accept any

money, service, or other valuable consideration for or on account of any appointment, pro- posed appointment, promotion, or proposed promotion to, or any advantage in, a position in the merit system. 3. An employee of the department or any other person shall not defeat, deceive, or obstruct

any person in the person’s right to examination or appointment under this article, or furnish to any person any special or secret information for the purpose of affecting the rights or pros- pects of any person with respect to employment in the merit system. 4. A person shall not discharge an employee from or take or fail to take action regarding an

employee’s appointment or proposed appointment to, promotion or proposed promotion to, or any advantage in, a position in a merit system administered by, or subject to approval of, the director as a reprisal for a failure by that employee to inform the person that the employee made a disclosure of information permitted by this section, or for a disclosure of any informa- tion by that employee to a member or employee of the general assembly, or for a disclosure of information to any other public official or law enforcement agency if the employee reason- ably believes the information evidences a violation of law or rule, mismanagement, a gross abuse of funds, an abuse of authority, or a substantial and specific danger to public health or safety. However, an employee may be required to inform the person that the employee made a disclosure of information permitted by this section if the employee represented that the dis- closure was the official position of the employee’s immediate supervisor or employer. This subsection does not apply if the disclosure of the information is prohibited by statute.

Sec. 66. NEWSECTION. 8A.418 FEDERALPROGRAMSEXEMPTIONEXCEPTIONS— PENALTY. 1. Notwithstanding the provisions of this article to the contrary, a person employed under

a temporary, emergency employment utilization program funded by the federal government which program does not exceed one year and which program is not subject to merit system standards by federal law, shall be exempt from this article except as provided in this section. 2. A person employed as provided in this section shall be subject to the provisions of section

8A.416 relating to political activity and the civil penalties contained in such section and, con- sistent with subsection 1, the provisions of section 8A.417 relating to prohibited actions. 3. A person violating this section shall be subject to the penalty provided for in section

8A.458.

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EMPLOYEE BENEFITS

Sec. 67. NEWSECTION. 8A.431 IOWAMANAGEMENTTRAININGSYSTEM—TRAIN- ING REVOLVING FUND. 1. The department shall establish and administer an Iowamanagement training system for

the state. 2. A training revolving fund is created in the state treasury under the control of the depart-

ment. Themoneys credited to the fund shall be used for the purpose of paying actual and nec- essary expenses incurred by the department in administering the training system. All fees, grants, or specific appropriations for this purpose shall be credited to the fund. The fees for the training system courses shall be set by the director to cover the costs of course develop- ment, training materials, facilities and equipment, professional instructors, and administra- tion. The fees shall be paid to the department by the state agency sending the employees for training and the payment shall be credited to the training revolving fund. Notwithstanding section 8.33, moneys in the revolving fund shall not revert. Notwithstanding section 12C.7, subsection2, interest or earningsonmoneysdeposited in the fund shall be credited to the fund.

Sec. 68. NEW SECTION. 8A.432 COMBINED CHARITABLE CAMPAIGN PROGRAM, FEES, REVOLVING FUND. 1. The department shall establish and administer a combined charitable campaign program

for state employees. 2. A combined charitable campaign revolving fund is created in the state treasury under the

control of the department. The moneys credited to the fund shall be used for the purpose of paying actual and necessary expenses incurred by the department in administering the pro- gram. Administrative expenses shall not exceed five percent of the contributions pledged the previous year. All fees, grants, or specific appropriations for this purpose shall be credited to the fund. The fees for the program shall be set by the director to cover only the cost of adminis- tration and materials and shall not cover salaries of state employees involved in the adminis- tration of the program. The fees shall be paid to the department from the voluntary employee contributions and the payment shall be credited to the revolving fund. Notwithstanding sec- tion 8.33, any moneys in the fund shall not revert. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys deposited in the fund shall be credited to the fund.

Sec. 69. NEW SECTION. 8A.433 DEFERRED COMPENSATION PLAN. Thedepartment shallmakeavailable to eligible state employees the optionof utilizingmutu-

al funds as an investment alternative to the state’s deferred compensation plan establishedun- der section 509A.12. Participating employees shall, to the extent permitted by law, be allowed to transfer moneys deferred under the plan to a mutual fund offered pursuant to section 509A.12. The department maymake the deferred compensation plan established pursuant to this section available to governmental employees of a public entity authorized to establish a deferred compensation program pursuant to section 509A.12.

Sec. 70. NEW SECTION. 8A.434 IOWA STATE EMPLOYEE DEFERRED COMPENSA- TION TRUST FUND. 1. A separate, special Iowa state employee deferred compensation trust fund is created in

the state treasury under the control of the department. The fund shall consist of all moneys deposited in the fund pursuant to this section, any other assets that must be held in trust for the exclusive benefit of participants in the state’s deferred compensation program as required by section 457 of the federal Internal Revenue Code, and interest and earnings thereon, and shall be used for the exclusive benefit of participants in a deferred compensation program es- tablished by the state under section 509A.12. 2. The director is the trustee of the fund and shall administer the fund. Any loss to the fund

shall be charged against the fund and the director shall not be personally liable for such loss. In addition, the director is the trustee of any trusts referenced in section 457(g) of the federal

373 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

Internal RevenueCode. Any loss to the trusts shall be charged against the trusts and the direc- tor shall not be personally liable for such loss. 3. Any compensation or portion of compensation reduced by a participant in conjunction

with a deferred compensation programestablished by the state under section 509A.12 and any earnings or income thereon shall be held in trust and used for the exclusive benefit of the par- ticipant or the participant’s beneficiary as provided by section 457of the federal Internal Reve- nue Code. 4. For purposes of this section, custodial accounts, annuity contracts, and any other con-

tracts referenced in section 457(g) of the federal Internal Revenue Code shall be treated as trusts for purposes of section 457 of the federal Internal Revenue Code. 5. Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7, sub-

section 2, interest or earnings on moneys in the fund shall be credited to the fund.

Sec. 71. NEW SECTION. 8A.435 STATE EMPLOYEE DEFERRED COMPENSATION MATCH TRUST FUND. 1. A separate, special Iowa state employee deferred compensationmatch trust fund is creat-

ed in the state treasury under the control of the department. The trust fund shall consist of all moneysdeposited in the fund, andotherassets thatmust beheld in trust for the exclusivebene- fit of participants in the state’s deferred compensation match program as required by section 401(a) of the federal Internal Revenue Code, and interest and earnings thereon, and shall be used for the exclusive benefit of participants and their beneficiaries in a deferred compensa- tion match program established by the state under section 509A.12. 2. The director is the trustee of the fund and shall administer the fund. Any loss to the fund

shall be charged against the trust and the director shall not be personally liable for such loss. 3. Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7, sub-

section 2, interest or earnings on moneys in the fund shall be credited to the fund.

Sec. 72. NEW SECTION. 8A.436 STATE EMPLOYEE DEPENDENT CARE SPENDING ACCOUNT TRUST FUND. 1. A separate, special Iowa state employee dependent care spending account trust fund is

created in the state treasury under the control of the department. The trust fund consists of all moneys, including monthly administrative charges paid by a state department or agency as authorized by section 8A.451, held in trust for the exclusive benefit of participants in the state’s dependent care spending account plan. Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7, interest and earnings frommoneys in the trust fund shall be credited to the trust fund and shall be used exclusively for the benefit of plan participants. 2. The director shall serve as trustee of the trust fund and shall administer the fund as re-

quired by sections 125 and 129 of the federal Internal RevenueCode. Any loss to the fund shall be charged against the fund and the director shall not be personally liable for such loss. The director has the authority to direct expenditures as deemed appropriate to the exclusive bene- fit of the plan participants.

Sec. 73. NEW SECTION. 8A.437 STATE EMPLOYEE HEALTH FLEXIBLE SPENDING ACCOUNT TRUST FUND. 1. The director shall establish for state employees a health flexible spending account plan

which offersmultiple benefits to state employees. The state’s health flexible spendingaccount plan shall be established to meet the conditions of section 125 of the Internal Revenue Code of 1986. 2. A separate, special Iowa state employee health flexible spending account trust fund is

created in the state treasury under the control of the department. The trust fund consists of allmoneys appropriated to the fund, allmonthly administrative charges paid by a state depart- ment or agency as authorized by section 8A.451, and any other assets directed to be held in trust for the exclusive benefit of participants in the state’s health flexible spending account plan. Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7,

374LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

interest and earnings frommoneys in the trust fund shall be credited to the trust fund and shall be used exclusively for the benefit of plan participants. 3. Thedirector shall serveas trusteeof the trust fundandhas the authority to direct expendi-

tures as deemed appropriate to the exclusive benefit of the plan participants.

Sec. 74. NEW SECTION. 8A.438 ANNUITY CONTRACTS. 1. At the request of an employee of a state agency through contractual agreement, the direc-

tor may arrange for the purchase of group or individual annuity contracts for any of the em- ployees of that agency, which annuity contracts are issued by a nonprofit corporation issuing retirement annuities exclusively for educational institutions and their employees or are pur- chased from any company the employee chooses that is authorized to do business in this state or through an Iowa-licensed salesperson that the employee selects, on a group or individual basis, for retirement or other purposes, and may make payroll deductions in accordance with the arrangements for the purpose of paying the entire premium due and to become due under the contract. The deductions shall be made in the manner which will qualify the annuity pre- miums for the benefits afforded under section 403(b) of the Internal RevenueCode, as defined in section 422.3. The employee’s rights under the annuity contract are nonforfeitable except for the failure to pay premiums. As used in this section, unless the context otherwise requires, “annuity contract” includes any custodial account which meets the requirements of section 403(b)(7) of the Internal Revenue Code, as defined in section 422.3. 2. Whenever an existing tax-sheltered annuity contract is to be replaced by a new contract,

the agent or representative of the company shall send a letter of intent by registered mail at least thirty days prior to any action to the company being replaced, to the commissioner of in- surance of this state, to the agent’s own company, and to the director. The letter of intent shall contain the policy number and description of the contract being replaced and a description of the replacement contract.

Sec. 75. NEW SECTION. 8A.439 LONGEVITY PAY PROHIBITED — EXCEPTION. A state employee subject to the provisions of this article shall not be entitled to longevity pay

except for those employees granted longevity pay pursuant to section 307.48.

STATE HUMAN RESOURCE MANAGEMENT OPERATIONS MISCELLANEOUS PROVISIONS

Sec. 76. NEW SECTION. 8A.451 HUMAN RESOURCES ADMINISTRATIVE COSTS. 1. The department may quarterly render a statement to each department or agency which

operates in whole or in part from other than general fund appropriations for a pro rata share of the cost of administration of the department, or a portion thereof, as it relates to the state human resourcesmanagement duties of the department pursuant to this article. The expense shall be paid by the state department or agency in the same manner as other expenses of that department or agency are paid and all moneys received shall be deposited in the general fund of the state. 2. The department shall rendermonthly a statement to each state department or agency for

a pro rata share of the cost of administration of the state employee flexible spending accounts. The expense shall be paid by the state department or agency in the same manner as other ex- penses of that state department or agency are paid and all moneys received for administration costs shall be deposited in the appropriate fund.

Sec. 77. NEW SECTION. 8A.452 USE OF PUBLIC BUILDINGS. All officers and employees of the state and of political subdivisions of the state shall allow

the department the reasonable use of public buildings under their control, and furnish heat, light, and furniture for any examination, hearing, or investigation authorized by this article. The department shall pay to a political subdivision the reasonable cost of any such facilities furnished.

375 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

CH. 145CH. 145

Sec. 78. NEW SECTION. 8A.453 AID BY STATE EMPLOYEES — RECORDS AND IN- FORMATION. 1. All officers and employees of the state shall complywith and aid in all properways in car-

rying out the provisions of this article and the rules and orders under this article. All officers and employees shall furnish any records or information which the director requires for any purpose of this article. The director may institute and maintain any action or proceeding at lawor in equity that the director considers necessary or appropriate to secure compliancewith this article and the rules and orders under this article. 2. The director may delegate to a person in any department, agency, board, commission, or

office, locatedaway from the seat of government, anyof theduties imposedby this article upon the director.

Sec. 79. NEW SECTION. 8A.454 HEALTH INSURANCE ADMINISTRATION FUND. 1. A separate, special Iowa state health insurance administration fund is created in the state

treasury under the control of the department. The fund shall consist of all moneys deposited in the fund from proceeds of a monthly per contract administrative charge assessed and col- lected by the department. Moneys deposited in the fund shall be expended by the department for health insurance program administration costs. Notwithstanding section 12C.7, subsec- tion 2, interest or earnings on moneys deposited in the fund shall be credited to the fund. 2. A monthly per contract administrative charge shall be assessed by the department on all

health insurance plans administered by the department in which the contract holder has a state employer topay the charge. Theamount of the administrative charge shall be established by the general assembly. The department shall collect the administrative charge from each department utilizing the centralized payroll system and shall deposit the proceeds in the fund. In addition, the state board of regents, all library service areas, the state fair board, the state department of transportation, and each judicial district department of correctional services shall remit the administrative charge on a monthly basis to the department and shall submit a report to the department containing the number and type of health insurance contracts held by each of its employees whose health insurance is administered by the department. 3. The expenditure of moneys from the fund in any fiscal year shall not exceed the amount

of themonthly charge established by the general assemblymultiplied by the number of health insurance contracts in effect at the beginning of the same fiscal year inwhich the expenditures shall be made. Any unencumbered or unobligated moneys in the fund at the end of the fiscal year shall not revert but shall be transferred to the health insurance premium reserve fund es- tablished pursuant to section 509A.5. 4. This section is repealed July 1, 2007.

Sec. 80. NEW SECTION. 8A.455 CERTIFICATION OF PAYROLLS — ACTIONS. 1. A state disbursing or auditing officer shall not make or approve or take part in making

or approving a payment for personnel services to any person unless the payroll voucher or ac- count of the pay bears the certification of the director, or of the director’s authorized agent, that the persons namedhave been appointed and employed in accordancewith this article and the rules and orders under this article, and that funds are available for the payment of the per- sons. 2. The director may, for proper cause, withhold certification from an entire payroll or from

any specific item or items on a payroll. The director may, however, provide that certification of payrolls may be made once every year, and such certification shall remain in effect except in the case of any officer or employee whose status has changed after the last certification of the officer’s or employee’s payroll. In the latter case a voucher for payment of salary to such employee shall not be issued or payment of salary shall not be made without further certifica- tion by the director. 3. Any citizenmaymaintain an action in accordancewith chapter 17A to restrain a disburs-

ing officer from making any payment in contravention of this article, or rule or order under this article. Any sum paid contrary to this article or any rule or order under this article may

376LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

be recovered in an action in accordancewith chapter 17Amaintained by any citizen, from any officer who made, approved, or authorized such payment or who signed or countersigned a voucher, payroll, check, or warrant for such payment, or from the sureties on the official bond of any such officer. All moneys recovered in any such action shall be paid into the state trea- sury. 4. Any person appointed or employed in contravention of this article or of any rule or order

under this article who performs service for which the person is not paid may maintain an ac- tion in accordancewith chapter 17A against the officer or officerswhopurported so to appoint or employ the person to recover the agreed pay for such services or the reasonable value of the services if no pay was agreed upon. An officer shall not be reimbursed by the state at any time for any sum paid to such person on account of such services. 5. If the director wrongfully withholds certification of the payroll voucher or account of any

employee, such employee may maintain a proceeding in accordance with chapter 17A in the courts to compel the director to certify such a payroll voucher or account.

Sec. 81. NEW SECTION. 8A.456 ACCESS TO RECORDS. 1. An employee subject to the provisions of this article shall have access to the employee’s

personal file. 2. An applicant for a position subject to the provisions of this article shall be permitted to

review, in accordance with such rules as the director may prescribe, any evaluation resulting from the application for employment.

Sec. 82. NEW SECTION. 8A.457 WORKERS’ COMPENSATION CLAIMS. The director shall employ appropriate staff to handle and adjust claims of state employees

for workers’ compensation benefits pursuant to chapters 85, 85A, 85B, and 86, or with the ap- proval of the executive council contract for the services or purchase workers’ compensation insurance coverage for state employees or selected groups of state employees. A state employ- eeworkers’ compensation fund is created in the state treasury under the control of the depart- ment to pay state employee workers’ compensation claims and administrative costs. The de- partment shall establish a rating formula and assess premiums to all agencies, departments, anddivisions of the state including thosewhichhavenot received an appropriation for thepay- ment of workers’ compensation insurance and which operate from moneys other than from the general fund of the state. Thedepartment shall collect the premiums anddeposit them into the state employee workers’ compensation fund. Notwithstanding section 8.33, moneys de- posited in the state employee workers’ compensation fund shall not revert to the general fund of the state at the end of any fiscal year, but shall remain in the state employee workers’ com- pensation fund and be continuously available to pay state employee workers’ compensation claims. The director may, to the extent practicable, contract with a private organization to handle the processing and payment of claims and services rendered under the provisions of this section.

Sec. 83. NEW SECTION. 8A.458 PENALTY. A person who willfully violates this article or any rules adopted pursuant to this article,

where no other penalty is prescribed, is guilty of a simple misdemeanor.

ARTICLE 5 FINANCIAL ADMINISTRATION

Sec. 84. NEW SECTION. 8A.502 FINANCIAL ADMINISTRATION DUTIES. The department shall provide for the efficient management and administration of the finan-

cial resources of state government and shall have andassume the followingpowers andduties: 1. CENTRALIZED ACCOUNTING SYSTEM. To assume the responsibilities related to a

centralized accounting system for state government. 2. SETOFF PROCEDURES. To establish and maintain a setoff procedure as provided in

section 8A.504.

377 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

3. COSTALLOCATION SYSTEM. To establish a cost allocation system as provided in sec- tion 8A.505. 4. COLLECTION AND PAYMENT OF FUNDS — MONTHLY PAYMENTS. To control the

payment of all moneys into the state treasury, and all payments from the state treasury by the preparation of appropriate warrants, or warrant checks, directing such collections and pay- ment, and to advise the treasurer of statemonthly in writing of the amount of public funds not currently needed for operating expenses. Whenever the state treasury includes state funds that require distribution to counties, cities, or other political subdivisions of this state, and the counties, cities, and other political subdivisions certify to the director that warrants will be stamped for lack of fundswithin the thirty-day period following certification, the directormay partially distribute the funds on a monthly basis. Whenever the law requires that any funds be paid by a specific date, the director shall prepare a final accounting and shall make a final distribution of any remaining funds prior to that date. 5. PREAUDIT SYSTEM. To establish and fix a reasonable imprest cash fund for each state

department and institution for disbursement purposes where needed. These revolving funds shall be reimbursed only upon vouchers approved by the director. It is the purpose of this sub- section to establish a preaudit system of settling all claims against the state, but the preaudit system is not applicable to any of the following: a. Institutions under the control of the state board of regents. b. The state fair board as established in chapter 173. c. The Iowa dairy industry commission as established in chapter 179, the Iowa beef cattle

producers association as established in chapter 181, the Iowapork producers council as estab- lished in chapter 183A, the Iowa egg council as established in chapter 184, the Iowa turkey marketing council as established in chapter 184A, the Iowa soybeanpromotionboard as estab- lished in chapter 185, and the Iowa corn promotion board as established in chapter 185C. 6. AUDITOFCLAIMS. To set rules and procedures for the preaudit of claims by individual

agencies or organizations. The director reserves the right to refuse to accept incomplete or incorrect claims and to review, preaudit, or audit claims as determined by the director. 7. CONTRACTS. To certify, record, and encumber all formal contracts to prevent overcom-

mitment of appropriations and allotments. 8. ACCOUNTS. To keep the central budget and proprietary control accounts of the general

fund of the state and special funds, as defined in section 8.2, of the state government. Upon elimination of the state deficit under generally accepted accounting principles, including the payment of items budgeted in a subsequent fiscal year which under generally accepted ac- counting principles should be budgeted in the current fiscal year, the recognition of revenues received and expenditures paid and transfers received and paid within the time period re- quired pursuant to section 8.33 shall be in accordance with generally accepted accounting principles. Budget accounts are those accountsmaintained to control the receipt and disposi- tion of all funds, appropriations, and allotments. Proprietary accounts are those accounts re- lating to assets, liabilities, income, and expense. For each fiscal year, the financial position and results of operations of the state shall be reported in a comprehensive annual financial report prepared in accordance with generally accepted accounting principles, as established by the governmental accounting standards board. 9. FAIR BOARD AND BOARD OF REGENTS. To control the financial operations of the

state fair board and the institutions under the state board of regents: a. By charging all warrants issued to the respective educational institutions and the state

fair board to an advance account to be further accounted for and not as an expense which re- quires no further accounting. b. By charging all collections made by the educational institutions and state fair board to

the respective advance accounts of the institutions and state fair board, and by crediting all such repayment collections to the respective appropriations and special funds. c. By charging all disbursements made to the respective allotment accounts of each educa-

tional institution or state fair board and by crediting all such disbursements to the respective advance and inventory accounts.

378LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

d. By requiring amonthly abstract of all receipts and of all disbursements, both money and stores, and a complete account current eachmonth from each educational institution and the state fair board. 10. ENTITIES REPRESENTING AGRICULTURAL PRODUCERS. To control the financial

operations of the Iowa dairy industry commission as provided in chapter 179, the Iowa beef cattle producers association as provided in chapter 181, the Iowa pork producers council as provided in chapter 183A, the Iowa egg council as provided in chapter 184, the Iowa turkey marketing council as provided in chapter 184A, the Iowa soybean promotion board as pro- vided in chapter 185, and the Iowa corn promotion board as provided in chapter 185C. 11. CUSTODY OF RECORDS. To have the custody of all books, papers, records, docu-

ments, vouchers, conveyances, leases,mortgages, bonds, and other securities appertaining to the fiscal affairs and property of the state, which are not required to be kept in some other of- fice. 12. INTERESTOF THEPERMANENTSCHOOL FUND. To transfer the interest of the per-

manent school fund to the credit of the interest for Iowa schools fund. 13. FORMS. To prescribe all accounting and business forms and the system of accounts

and reports of financial transactions by all departments and agencies of the state government other than those of the legislative branch. 14. FEDERALCASHMANAGEMENTAND IMPROVEMENTACTADMINISTRATOR. To

serve as administrator for state actions relating to the federal CashManagement and Improve- ment Act of 1990, Pub. L. No. 101-453, as codified in 31 U.S.C. § 6503. The director shall per- form the following duties relating to the federal law: a. Act as the designated representative of the state in the negotiation and administration of

contracts between the state and federal government relating to the federal law. b. Modify the centralized statewide accounting system and develop, or require to be devel-

oped by the appropriate departments of state government, the necessary reports and proce- dures necessary to complete themanagerial and financial reports required to comply with the federal law. There is annually appropriated from the general fund of the state to the department an

amount sufficient to pay interest costs that may be due the federal government as a result of implementation of the federal law. This paragraph does not authorize the payment of interest from the general fund of the state for any departmental revolving, trust, or special fundwhere monthly interest earnings accrue to the credit of the departmental revolving, trust, or special fund. For any departmental revolving, trust, or special fundwheremonthly interest is accrued to the credit of the fund, the directormay authorize a supplemental expenditure to pay interest costs from the individual fundwhicharedue the federal government as a result of implementa- tion of the federal law.

Sec. 85. NEW SECTION. 8A.503 RULES — DEPOSIT OF DEPARTMENTAL MONEYS. The director shall prescribe by rule the manner and methods by which all departments and

agencies of the state who collect money for and on behalf of the state shall cause the money to be deposited with the treasurer of state or in a depository designated by the treasurer of state. All such moneys collected shall be deposited at such times and in such depositories to permit the state of Iowa to deposit the funds in amanner consistent with the state’s investment policies. All suchmoneys shall be promptly deposited, as directed, even though the individual amount remitted may not be correct. If any individual amount remitted is in excess of the amount required, the department or agency receiving the same shall refund the excess amount. If the individual amount remitted is insufficient, the person, firm, or corporation con- cerned shall be immediately billed for the amount of the deficiency.

Sec. 86. NEW SECTION. 8A.504 SETOFF PROCEDURES. 1. DEFINITIONS. As used in this section, unless the context otherwise requires: a. “Collection entity” means the department of administrative services and any other state

agency that maintains a separate accounting system and elects to establish a debt collection setoff procedure for collection of debts owed to the state or its agencies.

379 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

b. “Person” does not include a state agency. c. “Qualifying debt” includes, but is not limited to, the following: (1) Anydebt,which is assigned to thedepartment of human services, orwhich the child sup-

port recovery unit is otherwise attempting to collect, or which the foster care recovery unit of the department of human services is attempting to collect on behalf of a child receiving foster care provided by the department of human services. (2) An amount that is due because of a default on a guaranteed student or parental loan un-

der chapter 261. (3) Any debt which is in the form of a liquidated sum due, owing, and payable to the clerk

of the district court. d. “State agency”means a board, commission, department, including the department of ad-

ministrative services, or other administrative office or unit of the state of Iowa or any other state entity reported in the Iowa comprehensive annual financial report. “State agency” does include the clerk of the district court as it relates to the collection of a qualifying debt. “State agency” does not include the general assembly, the governor, or any political subdivision of the state, or its offices and units. 2. SETOFF PROCEDURE. The collection entity shall establish and maintain a procedure

to set off against any claim owed to a person by a state agency any liability of that person owed to a state agency, a support debt being enforced by the child support recovery unit pursuant to chapter 252B, or such other qualifying debt. The procedure shall only apply when at the discretion of the director it is feasible. The procedure shall meet the following conditions: a. Before setoff, a person’s liability toa state agency and theperson’s claimona state agency

shall be in the form of a liquidated sum due, owing, and payable. b. Before setoff, the state agency shall obtain and forward to the collection entity the full

name and social security number of the person liable to it or to whom a claim is owing who is a natural person. If the person is not a natural person, before setoff, the state agency shall forward to the collection entity the information concerning the person as the collection entity shall, by rule, require. The collection entity shall cooperate with other state agencies in the exchange of information relevant to the identification of persons liable to or claimants of state agencies. However, the collection entity shall provide only relevant information required by a state agency. The information shall be held in confidence and used for the purpose of setoff only. Section 422.72, subsection 1, does not apply to this paragraph. c. Before setoff, a state agency shall, at least annually, submit to the collection entity the in-

formation required by paragraph “b” along with the amount of each person’s liability to and the amount of each claim on the state agency. The collection entitymay, by rule, requiremore frequent submissions. d. Before setoff, the amount of a person’s claim on a state agency and the amount of a per-

son’s liability to a state agency shall constitute aminimum amount set by rule of the collection entity. e. Upon submission of an allegation of liability by a state agency, the collection entity shall

notify the state agency whether the person allegedly liable is entitled to payment from a state agency, and, if so entitled, shall notify the state agency of the amount of the person’s entitle- ment and of the person’s last address known to the collection entity. Section 422.72, subsec- tion 1, does not apply to this paragraph. f. Upon notice of entitlement to a payment, the state agency shall send written notification

to that person of the state agency’s assertion of its rights to all or a portion of the payment and of the state agency’s entitlement to recover the liability through the setoff procedure, the basis of the assertion, the opportunity to request that a jointly or commonly owned right to payment be divided among owners, and the person’s opportunity to give written notice of intent to con- test the amount of the allegation. The state agency shall send a copy of the notice to the collec- tion entity. A state agency subject to chapter 17A shall givenotice, conducthearings, andallow appeals in conformity with chapter 17A. However, upon submission of an allegation of the liability of a person which is owing and

payable to the clerk of the district court and upon the determination by the collection entity

380LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

that the person allegedly liable is entitled to payment from a state agency, the collection entity shall send written notification to the person which states the assertion by the clerk of the dis- trict court of rights to all or a portion of the payment, the clerk’s entitlement to recover the li- ability through the setoff procedure, the basis of the assertions, the person’s opportunity to re- quest within fifteen days of the mailing of the notice that the collection entity divide a jointly or commonly owned right to payment between owners, the opportunity to contest the liability to the clerk by written application to the clerk within fifteen days of the mailing of the notice, and the person’s opportunity to contest the collection entity’s setoff procedure. g. Upon the timely request of a person liable to a state agency or of the spouse of that person

and upon receipt of the full name and social security number of the person’s spouse, a state agency shall notify the collection entity of the request to divide a jointly or commonly owned right to payment. Any jointly or commonly owned right to payment is rebuttably presumed to be owned in equal portions by its joint or common owners. h. The collection entity shall, after the state agency has sent notice to the person liable or,

if the liability is owing and payable to the clerk of the district court, the collection entity has sent notice to the person liable, set off the amount owed to the agency against any amount which a state agency owes that person. The collection entity shall refund any balance of the amount to the person. The collection entity shall periodically transfer amounts set off to the state agencies entitled to them. If a person liable to a state agency giveswritten notice of intent to contest an allegation, a state agency shall hold a refund or rebate until final disposition of the allegation. Upon completion of the setoff, a state agency shall notify in writing the person who was liable or, if the liability is owing and payable to the clerk of the district court, shall comply with the procedures as provided in paragraph “j”. i. The department of revenue and finance’s existing right to credit against tax due or to be-

come due under section 422.73 is not to be impaired by a right granted to or a duty imposed upon the collection entity or other state agency by this section. This section is not intended to impose upon the collection entity or the department of revenue and finance any additional requirement of notice, hearing, or appeal concerning the right to credit against tax due under section 422.73. j. If the alleged liability is owing and payable to the clerk of the district court and setoff as

provided in this section is sought, all of the following shall apply: (1) The judicial branch shall prescribe procedures to permit a person to contest the amount

of the person’s liability to the clerk of the district court. (2) The collection entity shall, except for theprocedures described in subparagraph (1), pre-

scribe any other applicable procedures concerning setoff as provided in this subsection. (3) Upon completion of the setoff, the collection entity shall file, at least monthly, with the

clerk of the district court a notice of satisfaction of each obligation to the full extent of all mon- eys collected in satisfaction of the obligation. The clerk shall record the notice and enter a sat- isfaction for the amounts collected and a separate written notice is not required. 3. In the case of multiple claims to payments filed under this section, priority shall be given

to claims filed by the child support recovery unit or the foster care recovery unit, next priority shall be given to claims filed by the college student aid commission, next priority shall be given to claims filed by the investigations division of thedepartment of inspections and appeals, next priority shall be given to claims filed by a clerk of the district court, and last priority shall be given to claims filed by other state agencies. In the case ofmultiple claims inwhich thepriority is not otherwise provided by this subsection, priority shall be determined in accordance with rules to be established by the director. 4. The director shall have the authority to enter into reciprocal agreements with the depart-

ments of revenue of other states that have enacted legislation that is substantially equivalent to the setoff procedure provided in this section for the recovery of an amount due because of a default on a guaranteed student or parental loan under chapter 261. A reciprocal agreement shall also be approved by the college student aid commission. The agreement shall authorize the department to provide by rule for the setoff of state income tax refunds or rebates of de- faulters from states with which Iowa has a reciprocal agreement and to provide for sending

381 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

lists of names of Iowa defaulters to the states with which Iowa has a reciprocal agreement for setoff of that state’s income tax refunds. 5. Under substantive rules establishedby thedirector, thedepartment shall seek reimburse-

ment from other state agencies to recover its costs for setting off liabilities.

Sec. 87. NEW SECTION. 8A.505 COST ALLOCATION SYSTEM. The department shall develop and administer an indirect cost allocation system for state

agencies. The system shall be based upon standard cost accounting methodologies and shall be used to allocate both direct and indirect costs of state agencies or state agency functions in providing centralized services to other state agencies. A cost that is allocated to a state agency pursuant to this system shall be billed to the state agency and the cost is payable to the general fund of the state. The source of payment for the billed cost shall be any revenue source except for the general fundof the state. If a state agency is authorizedby law tobill and recover direct expenses, the state agency shall recover indirect costs in the same manner.2

Sec. 88. NEW SECTION. 8A.506 ACCOUNTING. The director may at any time require any person receiving money, securities, or property

belonging to the state, or having themanagement, disbursement, or other disposition of them, an account of which is kept in the department, to render statements of them and information in reference to them.

Sec. 89. NEW SECTION. 8A.507 STATING ACCOUNT. If an officer who is accountable to the state treasury for any money or property neglects to

render an account to the director within the time prescribed by law, or, if no time is so pre- scribed,within twenty days after being required to do soby the director, the director shall state an account against the officer from the books of the officer’s office, charging ten percent dam- ages on the whole sum appearing due, and interest at the rate of six percent per annum on the aggregate from the time when the account should have been rendered; all of which may be recovered by action brought on the account, or on the official bond of the officer.

Sec. 90. NEW SECTION. 8A.508 COMPELLING PAYMENT. If an officer fails to pay into the state treasury the amount received by the officer within the

time prescribed by law, or, having settled with the director, fails to pay the amount found due, the director shall charge the officer with twenty percent damages on the amount due, with in- terest on the aggregate from the time the amount became due at the rate of six percent per an- num, and the whole may be recovered by an action brought on the account, or on the official bond of the officer, and the officer shall forfeit the officer’s commission.

Sec. 91. NEW SECTION. 8A.509 DEFENSE TO CLAIM. The penal provisions in sections 8A.507 and 8A.508 are subject to any legal defense which

the officermay have against the account as stated by the director, but judgment for costs shall be rendered against the officer in the action, whatever its result, unless the officer rendered an account within the time named in those sections.

Sec. 92. NEW SECTION. 8A.510 REQUESTED CREDITS — OATH REQUIRED. When a county treasurer or other receiver of public money seeks to obtain credit on the

books of the department for payment made to the county treasurer, before giving such credit the director shall require that person to take and subscribe an oath that the person has not used, loaned, or appropriated any of the public money for the person’s private benefit, nor for the benefit of any other person.

Sec. 93. NEW SECTION. 8A.511 REQUISITION FOR INFORMATION. In those cases where the director is authorized to call upon persons or officers for informa-

tion, or statements, or accounts, the director may issue a requisition therefor in writing to the

___________________

2 See 2003 Iowa Acts, First Extraordinary Session, chapter 2, §34 herein

382LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

person or officer called upon, allowing reasonable time, which, having been served and return made to the director, as a notice in a civil action, is evidence of the making of the requisition.

Sec. 94. NEW SECTION. 8A.512 LIMITS ON CLAIMS. The director is limited in authorizing the payment of claims, as follows: 1. FUNDING LIMIT. a. A claim shall not be allowedby thedepartment if theappropriation or fundof certification

available for paying the claim has been exhausted or proves insufficient. b. The authority of the director is subject to the following exceptions: (1) Claimsby state employees forbenefits pursuant to chapters 85, 85A, 85B, and86are sub-

ject to limitations provided in those chapters. (2) Claims for medical assistance payments authorized under chapter 249A are subject to

the time limits imposed by rule adopted by the department of human services. (3) Claims approved by an agency according to the provisions of sections 25.1 and 25.2. 2. CONVENTION EXPENSES. Claims for expenses in attending conventions, meetings,

conferences, or gatherings of members of an association or society organized and existing as a quasi-public association or society outside the state of Iowa shall not be allowed at public expense, unless authorized by the executive council; and claims for these expenses outside of the state shall not be allowed unless the voucher is accompanied by the portion of theminutes of the executive council, certified to by its secretary, showing that the expensewas authorized by the council. This section does not apply to claims in favor of the governor, attorney general, utilities board members, or to trips referred to in sections 97B.7A and 217.20. 3. PAYMENT FROM FEES. Claims for per diem and expenses payable from fees shall not

be approved for payment in excess of those fees if the law provides that such expenditures are limited to the special funds collected and deposited in the state treasury.

Sec. 95. NEW SECTION. 8A.513 CLAIMS — APPROVAL. The director before approving a claim on behalf of the department shall determine: 1. That the creation of the claim is clearly authorized by law. Statutes authorizing the ex-

penditure may be referenced through account coding authorized by the director. 2. That the claim has been authorized by an officer or official body having legal authority

to so authorize and that the fact of authorization has been certified to the director by such offi- cer or official body. 3. That all legal requirements have been observed, including notice and opportunity for

competition, if required by law. 4. That the claim is in proper form as the director may provide. 5. That the charges are reasonable, proper, and correct and no part of the claim has been

paid.

Sec. 96. NEW SECTION. 8A.514 VOUCHERS — INTEREST — PAYMENT OF CLAIMS. 1. Before a warrant or its equivalent is issued for a claim payable from the state treasury,

the department shall file an itemized voucher showing in detail the items of service, expense, item furnished, or contract forwhich payment is sought. However, the directormay authorize the prepayment of claims when the best interests of the state are served under rules adopted by the director. The claimant’s original invoice shall be attached to a department’s approved voucher. The director shall adopt rules specifying the form and contents for invoices sub- mitted by a vendor to a department. The requirements apply to acceptance of an invoice by a department. A department shall not impose additional or different requirements on submis- sion of invoices than those contained in rules of the director unless the director exempts the department from the invoice requirements or a part of the requirements upon a finding that compliance would result in poor accounting or management practices. 2. Vouchers for postage, stamped envelopes, and postal cardsmay be audited as soon as an

order for them is entered. 3. The departments, the general assembly, and the courts shall pay their claims in a timely

383 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

manner. If a claim for services, supplies, materials, or a contract which is payable from the state treasury remains unpaid after sixty days following the receipt of the claimor the satisfac- tory delivery, furnishing, or performance of the services, supplies, materials, or contract, whichever date is later, the state shall pay interest at the rate of one percent per month on the unpaid amount of the claim. This subsection does not apply to claims against the state under chapters 25 and 669 or to claims paid by federal funds. The interest shall be charged to the appropriation or fund to which the claim is certified. Departments may enter into contracts for goodsor services onpayment termsof less than sixty days if the statemayobtain a financial benefit or incentivewhichwould not otherwise be available from the vendor. The department, in consultationwith other affected departments, shall develop policies to promote consistency and fiscal responsibility relating to payment terms authorized under this subsection. The di- rector shall adopt rules under chapter 17A relating to the administration of this subsection.

Sec. 97. NEW SECTION. 8A.515 WARRANTS — FORM. Awarrant shall bear on its face the signature of the director or its facsimile, or the signature

of an assistant or its facsimile in caseof a vacancy in theoffice of thedirector; a propernumber, date, amount, and name of payee; a reference to the law under which it is drawn; whether for salaries or wages, services, or supplies, and what kind of supplies; and fromwhat office or de- partment, or forwhat other general or special purposes; or in lieu thereof, a coding systemmay be used, which particulars shall be entered in a warrant register kept for that purpose in the order of issuance; and as soon as practicable after issuing awarrant register, the director shall certify a duplicate of it to the treasurer of state.

Sec. 98. NEW SECTION. 8A.516 REQUIRED PAYEE. All warrants shall be drawn to the order of the person entitled to payment or compensation,

except that when goods or materials are purchased in foreign countries, warrants may be drawn upon the treasurer of state, payable to the bearer for the net amount of invoice and cur- rent exchange, and the treasurer of state shall furnish a foreign draft payable to the order of the person from whom purchase is made.

Sec. 99. NEW SECTION. 8A.517 PROHIBITED PAYEE. In no case shall warrants be drawn in the name of the certifying office, department, board,

or institution, or in the name of an employee, except for personal service rendered or expense incurred by the employee, unless express statutory authority exists therefor.

Sec. 100. NEW SECTION. 8A.518 CLAIMS EXCEEDING APPROPRIATIONS. A claim shall not be allowed when the claim will exceed the amount specifically appro-

priated for the claim.

Sec. 101. NEW SECTION. 8A.519 CANCELLATION OF STATE WARRANTS. On the last business day of each month, the director shall cancel and request the treasurer

of state to stop payment on all state warrants which have been outstanding and unredeemed by the treasurer of state for six months or longer.

DIVISION II CONFORMING AND MISCELLANEOUS CHANGES

Sec. 102. Section 2.9, Code 2003, is amended to read as follows: 2.9 JOURNALS — BILLS AND AMENDMENTS. 1. a. The senate and house of representatives shall each publish a daily journal of the trans-

actions of their respective bodies. The secretary of the senate and the chief clerk of the house shall eachdetermine the format andmanner of the journal’s publication, the procurement pro- cedures for the journal’s publication, and the journal’s distribution for their respective bodies.

384LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

b. The secretary of the senate and the clerk of the house of representatives shall each pre- serve copies of theprinteddaily journals of their respective bodies, as corrected, certify to their correctness, and file themwith the secretary of state at the adjournment of each session of the general assembly. The secretary of state shall cause the journals to be bound and preserved as preserve the original journals of the senate and the house in the manner specified by the majority leader of the senate and speaker of the house. 2. a. The senate and house of representatives shall each publish bills and amendments of

their respective bodies. The secretary of the senate and the chief clerk of the house shall each determine the procurement procedures for the publication of the bills and amendments and the distribution of the bills and amendments for their respective bodies. b. A bill that seeks to legalize the acts of any official or board or other official body, in regard

to anymatter of public nature or for any person or persons, company, or corporation, shall not be considered by the senate or house of representatives until the bill is published and distrib- uted to members of the general assembly, and the publication shall be without expense to the state. The senate and house shall not order any such bill published until the secretary of the senate or chief clerk of the house has received a deposit to cover the cost of the publication. The newspaper publication of such bill shall be without expense to the state, and the bill shall not be published in a newspaper until the costs of the newspaper publication has been paid to the secretary of state.

Sec. 103. Section 2.10, subsection 1, Code 2003, is amended to read as follows: 1. Every member of the general assembly except the presiding officer of the senate, the

speaker of the house, the majority and minority floor leader of each house, and the president pro tempore of the senate and speaker pro tempore of the house, shall receive an annual salary of twenty thousand one hundred twenty dollars for the year 1997 and subsequent years while serving as amember of the general assembly. In addition, each suchmember shall receive the sum of eighty-six dollars per day for expenses of office, except travel, for each day the general assembly is in session commencing with the first day of a legislative session and ending with the day of final adjournment of each legislative session as indicated by the journals of the house and senate, except that if the length of the first regular session of the general assembly exceeds one hundred ten calendar days and the second regular session exceeds one hundred calendar days, the payments shall bemade only for one hundred ten calendar days for the first session and one hundred calendar days for the second session. Members from Polk county shall receive sixty-five dollars per day. Each member shall receive a two hundred dollar per month allowance for legislative district constituency postage, travel, telephone costs, and oth- er expenses. Travel expenses shall be paid at the rate established by section 18.117 8A.363 for actual travel in going to and returning from the seat of government by the nearest traveled route for not more than one time per week during a legislative session unless the general as- sembly otherwise provides.

Sec. 104. Section 2.43, unnumbered paragraph 1, Code 2003, is amended to read as fol- lows: The legislative council in cooperation with the officers of the senate and house shall have

the duty and responsibility for preparing for each session of the general assembly. Pursuant to such duty and responsibility, the legislative council shall assign the use of areas in the state capitol except for the areas used by the governor as of January 1, 1986, and by the courts as of November 1, 2002 July 1, 2003, and, in consultation with the director of the department of general services and the capitol planning commission, may assign areas in other state office buildings for use of the general assembly or legislative agencies. The legislative council may authorize the renovation, remodeling and preparation of the physical facilities used or to be usedby thegeneral assembly or legislative agencies subject to the jurisdictionof the legislative council and award contracts pursuant to such authority to carry out suchpreparation. The leg- islative council may purchase supplies and equipment deemed necessary for the proper func- tioning of the legislative branch of government.

385 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

Sec. 105. Section 2.47A, subsection 1, paragraph c, Code 2003, is amended to read as fol- lows: c. Receive annual status reports for all ongoing capital projects of state agencies, pursuant

to section 18.12 8A.321, subsection 14 10.

Sec. 106. Section 7A.1, unnumbered paragraph 4, Code 2003, is amended to read as fol- lows: This section shall not be construed as depriving the state printing administrator director of

the department of administrative services of the right to edit and revise said report.

Sec. 107. Section 7A.2, unnumbered paragraph 2, Code 2003, is amended to read as fol- lows: Reports after being filedwith thegovernor andconsideredby thegovernor shall bedelivered

to the state printing administrator director of the department of administrative services.

Sec. 108. Section 7A.3, subsection 1, Code 2003, is amended to read as follows: 1. Director of revenue and finance the department of administrative services on the fiscal

condition of the state.

Sec. 109. Section 7A.3, subsection 6, Code 2003, is amended by striking the subsection.

Sec. 110. Section 7A.3, subsection 10, Code 2003, is amended to read as follows: 10. Department of general administrative services.

Sec. 111. Section 7A.14, unnumbered paragraph 1, Code 2003, is amended to read as fol- lows: The annual and biennial reports shall be published, printed, and bound in such number as

the state printing administrator director of the department of administrative services may or- der. The officials and heads of departments shall furnish the administrator directorwith infor- mation necessary to determine the number of copies to be printed.

Sec. 112. Section 7A.23, Code 2003, is amended to read as follows: 7A.23 PRICE OF DEPARTMENTAL REPORTS. The state printing administrator director of the department of administrative services shall

establish and fix a selling price for all state departmental reports and any other state publica- tions the administrator director may designate, which price per volume shall be the amount chargedanyperson, other thanpublic officials,whopurchases thepublication. Theprice shall cover the cost of printing and distribution. The administrator director may distribute gratis to state or local public officials or offices, as the administrator director deems necessary, cop- ies of departmental annual reports.

Sec. 113. Section 7A.27, Code 2003, is amended to read as follows: 7A.27 OTHER NECESSARY PUBLICATIONS — WHEN NECESSARY TO SELL. There may be published other Other miscellaneous documents, reports, bulletins, books,

and booklets may be published that are needed for the use of the various officials and depart- ments of state, or are of value for the information of the general assembly or the public, in form and number most useful and convenient, to be determined by the state printing administrator director of the department of administrative services. When such publications, except supplements to the Iowa administrative code, paid for by

public funds furnished by the state, contain reprints of statutes or rules, or both, they shall be sold and distributed at cost by the department ordering same the publication if the cost per publication is one dollar or more, unless a central library or depository is established. Such publications shall be obtained from the state printing administrator director of the department of administrative services on requisition by the department ordering the publication and the

386LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

selling price, if any, shall be determined by the administrator director of the department of ad- ministrative services by dividing the total cost of printing, paper, distribution, and binding by the number printed. Said The price shall be set at the nearest multiple of ten to the quotient thus obtained. Distribution of such publications shall be made by the administrator director gratis to public officers, purchasers of licenses from state departments required by statute and departments. Funds from the sale of such publications shall be deposited monthly in the gen- eral fund of the state except the cost of distribution shall be deposited in the permanent print- ing revolving fund established in section 18.57 8A.345.

Sec. 114. Section 7A.28, Code 2003, is amended to read as follows: 7A.28 GOVERNOR MAY FIX FILING DATE. The governor shall have the right to fix a date for the completion of or filing of any copy or

manuscript for any miscellaneous document or other publication, or for any portion of the manuscript, and to compel compliance with such orders the same as in the case of the official reports. The state printing administrator director of the department of administrative services shall report to the governor any failure to furnishmanuscript or other delay affecting any pub- lication.

Sec. 115. Section 7A.29, Code 2003, is amended to read as follows: 7A.29 TITLE PAGES — COMPLIMENTARY INSERTIONS. The state printing administrator director of the department of administrative services shall

provide the necessary printer’s copy for a suitable title page for each publication requiring such title which shall contain the name of the author, but no such title shall not have written or printed thereon or attached thereto the words “Compliments of” followed by the name of the author, nor any other words of similar import.

Sec. 116. Section 7E.5, subsection 1, paragraph b, Code 2003, is amended to read as fol- lows: b. The department of personnel administrative services, created in section 19A.1 8A.102,

whichhasprimary responsibility for personnel themanagement andcoordinationof themajor resources of state government.

Sec. 117. Section 7E.5, subsection 1, paragraph c, Code 2003, is amended by striking the paragraph.

Sec. 118. Section 7E.5, subsection 1, paragraph d, Code 2003, is amended to read as fol- lows: d. The department of revenue and finance, created in section 421.2, which has primary re-

sponsibility for revenue collection and revenue law compliance, financial management and assistance, and the Iowa lottery.

Sec. 119. Section 7E.5, subsection 1, paragraph x, Code 2003, is amended by striking the paragraph.

Sec. 120. Section 7F.1, subsection 3, Code 2003, is amended to read as follows: 3. OFFICE ESTABLISHED. A state-federal relations office is established as an indepen-

dent agency. The office shall be located in Washington D.C. and shall be administered by the director of the office who is appointed by the governor, subject to confirmation by the senate, and who serves at the pleasure of the governor. The office and its personnel are exempt from the merit system provisions of chapter 19A 8A, article 4.

Sec. 121. Section 8.31, unnumbered paragraph 6, Code 2003, is amended to read as fol- lows: The procedure to be employed in controlling the expenditures and receipts of the state fair

387 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

boardand the institutionsunder the state boardof regents,whose collections arenot deposited in the state treasury, is that outlined in section 421.31 8A.502, subsection 6 9.

Sec. 122. Section 8.36A, Code 2003, is amended to read as follows: 8.36A FULL-TIME EQUIVALENT POSITION POSITIONS. 1. For purposes of making appropriations and financial reports and as used in appropria-

tions statutes, “full-time equivalent position” means a budgeting and monitoring unit that equates the aggregate of full-time positions, part-time positions, a vacancy and turnover fac- tor, and other adjustments. One full-time equivalent position represents two thousand eighty working hours, which is the regular number of hours one full-time person works in one fiscal year. The number of full-time equivalent positions shall be calculated by totaling the regular number of hours that could be annually worked by persons in all authorized positions, reduc- ing those hours by a vacancy and turnover factor and dividing that amount by two thousand eighty hours. In order to achieve the full-time equivalent position level, the number of filled positions may exceed the number of full-time equivalent positions during parts of the fiscal year to compensate for time periods when the number of filled positions is below the autho- rized number of full-time equivalent positions. 2. If a department or establishment has reachedor anticipates reaching the full-timeequiva-

lent position level authorized for the department but determines that conversion of a contract position to a full-time equivalent position would result in cost savings while providing compa- rable or better services, the department or establishment may request the director of the de- partment of management to approve the conversion and addition of the full-time equivalent position. The request shall be accompanied by evidence demonstrating how the cost savings and service quality will be achieved through the conversion. If approved by the director of the department ofmanagement, the department’s or establishment’s authorized full-time equiva- lent position level shall be increased accordingly and the revised level shall be reported to the fiscal committee of the legislative council and the legislative fiscal bureau.

Sec. 123. Section 8.47, subsection 1, unnumbered paragraph 1, Code 2003, is amended to read as follows: Thedepartment of general administrative services, in cooperationwith theoffice of attorney

general, and the department of management, the department of personnel, and the depart- ment of revenue and finance, shall adopt uniform terms and conditions for service contracts executed by a department or establishment benefiting from service contracts. The terms and conditions shall include but are not limited to all of the following:

Sec. 124. Section 8.47, subsection 2, Code 2003, is amended to read as follows: 2. Departments or establishments,with the approval of the department ofmanagement act-

ing in cooperation with the office of attorney general, the department of general services, the department of personnel, and the department of revenue and finance administrative services, may adopt special terms and conditions for use by the departments or establishments in their service contracts.

Sec. 125. Section 8.63, Code 2003, is amended to read as follows: 8.63 INNOVATIONS FUND. 1. An innovations fund is created in the state treasury under the control of the department

ofmanagement for the purpose of stimulating and encouraging innovation and entrepreneur- ship in state government by the awarding of repayable loans to state agencies. 2. The director of the department of management shall establish an eight-member commit-

tee to be called the state innovations fund committee. The committee shall review all requests for funds and approve loans of funds if the committee determines that the loan meets the re- quirements for a project loan or an enterprise loan as provided in this section. 3. A project loan can be funded if the committee determines that an agency request would

result in cost savings or added revenue to the general fund of the state. Eligible projects are

388LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

projects which cannot be funded from an agency’s operating budget without adversely affect- ing the agency’s normal service levels. Projects may include, but are not limited to, purchase of advanced technology, contracting for expert services, and acquisition of equipment or sup- plies. 4. An enterprise loan can be funded if the committee determines that the agency or business

unit has a viable business plan and the capability to use the loan to provide internal services to government. The enterprise is expected to receive payment for services from its customers and use those payments to cover its expenses, including repayment of the loan. 3. 5. A state agency seeking a loan from the innovations fund shall complete an application

form designed by the state innovations fund committee which employs, for projects, a return on investment concept and demonstrates how state general fund expenditureswill be reduced orhowstate general fund revenueswill increase, or, for enterprises, a businessplan that shows how the enterprise will meet customer needs, provide value to customers, and demonstrate financial viability. Minimum loan requirements for state agency requests shall be determined by the committee. As an incentive to increase state general fund revenues, an agency may re- tain up to fifty percent of savings realized in connection with a project loan from the innova- tions fund. The amount retained shall be determined by the innovations fund committee. 4. 6. a. In order for the innovations fund to be self-supporting, the innovations fund com-

mittee shall establish repayment schedules for each innovation innovations fund loan awarded. Agencies shall repay the funds over a period not to exceed five years with interest, at a rate to be determined by the innovations fund committee. b. If the department ofmanagement and the department of revenue and finance certify that

the savings fromaproposed innovations fundprojectwill result in anet increase in thebalance of the general fund of the state without a corresponding cost savings to the requesting agency, and if the requesting agency meets all other eligibility requirements, the innovations fund committee may approve the loan for the project and not require repayment by the requesting agency. There is appropriated from the general fund of the state to the department of revenue and financemanagement for deposit in the innovations fund an amount sufficient to repay the loan amount. 5. 7. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys depos-

ited in the innovations fund shall be credited to the innovations fund. Notwithstanding section 8.33, moneys remaining in the innovations fund at the end of a fiscal year shall not revert to the general fund of the state.

Sec. 126. Section 8D.4, Code 2003, is amended to read as follows: 8D.4 EXECUTIVE DIRECTOR APPOINTED. The commission, in consultation with the director of the department of administrative ser-

vices shall appoint an executivedirector of the commission, subject to confirmationby the sen- ate. Such individual shall not serve as a member of the commission. The executive director shall serve at the pleasure of the commission. The executive director shall be selected primari- ly for administrative ability and knowledge in the field, without regard to political affiliation. The governor shall establish the salary of the executive director within range nine as estab- lished by the general assembly. The salary and support of the executive director shall be paid from funds deposited in the Iowa communications network fund.

Sec. 127. Section 9.3, Code 2003, is amended to read as follows: 9.3 COMMISSIONS. All commissions issued by the governor shall be countersigned by the secretary, who shall

register each commission in a book to be kept for that purpose, specifying the office, name of officer, date of commission, and tenure of office, and forthwith forward to the directors of the departments ofmanagement and of revenue and finance administrative services copies of the registration.

Sec. 128. Section 10A.104, subsection 2, Code 2003, is amended to read as follows: 2. Appoint the administrators of the divisionswithin the department and all other personnel

389 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

deemed necessary for the administration of this chapter, except the state public defender, as- sistant state public defenders, administrator of the racing and gaming commission, members of the employment appeal board, andadministrator of the child advocacy board created in sec- tion 237.16. All persons appointed and employed in the department are covered by the provi- sions of chapter 19A 8A, article 4, but persons not appointed by the director are exempt from the merit system provisions of chapter 19A 8A, article 4.

Sec. 129. Section 10A.601, subsections 1 and 7,Code 2003, are amended to read as follows: 1. A full-time employment appeal board is createdwithin the department of inspections and

appeals to hear and decide contested cases under chapter 8A, article 4, and chapters 19A, 80, 88, 89A, 91C, 96, and 97B. 7. An application for rehearing before the appeal board shall be filed pursuant to section

17A.16, unless otherwise provided in chapter 19A, 8A, article 4, or chapter 80, 88, 89A, 91C, 96, or 97B. Apetition for judicial reviewof adecisionof theappeal board shall be filedpursuant to section 17A.19. The appeal board may be represented in any such judicial review by an at- torney who is a regular salaried employee of the appeal board or who has been designated by the appeal board for that purpose, or at the appeal board’s request, by the attorney general. Notwithstanding thepetitioner’s residency requirement in section17A.19, subsection 2, apeti- tion for judicial review may be filed in the district court of the county in which the petitioner was last employed or resides, provided that if the petitioner does not reside in this state, the action shall be brought in the district court of Polk county, Iowa, and any other party to the proceedingbefore the appeal board shall benamed in thepetition. Notwithstanding the thirty- day requirement in section 17A.19, subsection 6, the appeal board shall, within sixty days after filing of the petition for judicial review or within a longer period of time allowed by the court, transmit to the reviewing court the original or a certified copy of the entire records of a con- tested case. The appeal board may also certify to the court, questions of law involved in any decision by the appeal board. Petitions for judicial review and the questions so certified shall be given precedence over all other civil cases except cases arising under theworkers’ compen- sation law of this state. No bond shall be required for entering an appeal from any final order, judgment, or decree of the district court to the supreme court.

Sec. 130. Section 10A.801, subsection 3, paragraph a, Code 2003, is amended to read as follows: a. The department shall employ a sufficient number of administrative law judges to conduct

proceedings for which agencies are required, by section 17A.11 or any other provision of law, to use an administrative law judge employed by the division. An administrative law judge em- ployed by the division shall not performduties inconsistentwith the judge’s duties and respon- sibilities as an administrative law judge and shall be located in an office that is separated from the offices of the agencies forwhich that person acts as a presiding officer. Administrative law judges shall be covered by the merit system provisions of chapter 19A 8A, article 4.

Sec. 131. Section 11.2, subsection 1, unnumbered paragraph 3, Code 2003, is amended to read as follows: Provided further, that a preliminary audit of the educational institutions and the state fair

board shall be made periodically, at least quarterly, to check the monthly reports submitted to the director of revenue and finance the department of administrative services as required by section 421.31 8A.502, subsection 4 9, and that a final audit of such state agencies shall be made at the close of each fiscal year.

Sec. 132. Section 12E.8, subsection 2, Code 2003, is amended to read as follows: 2. The authority is exempt from the requirements of chapter 18 8A, article 3.

Sec. 133. Section 13.13, subsection 2, Code 2003, is amended to read as follows: 2. The farm assistance program coordinator shall contract with a nonprofit organization

390LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

chartered in this state to provide mediation services as provided in chapters 654A, 654B, and 654C. The contract may be terminated by the coordinator upon written notice and for good cause. The organization awarded the contract is designated as the farmmediation service for the duration of the contract. The organizationmay, upon approval by the coordinator, provide mediation services other than as provided by law. The farm mediation service is not a state agency for the purposes of chapter 8A, article 4, and chapters 19A, 20, and 669.

Sec. 134. Section 13.22, subsection 6, Code 2003, is amended to read as follows: 6. Cooperate to the fullest extent feasible with the existing informational and referral net-

works among farmers, farmer advocates, and others concerned with the economic crisis in agricultural areas. The legal services provider is not a state agency for the purposes of chapter 8A, article 4, and chapters 19A, 20, and 669.

Sec. 135. Section 13.34, subsection 4, Code 2003, is amended to read as follows: 4. The contracting nonprofit organization is not a state agency for the purposes of chapter

8A, article 4, and chapters 19A, 20, and 669.

Sec. 136. Section 13B.5, Code 2003, is amended to read as follows: 13B.5 STAFF. The state public defender may appoint assistant state public defenders who, subject to the

direction of the state public defender, shall have the same duties as the state public defender and shall not engage in the private practice of law. The salaries of the staff shall be fixed by the state public defender. The state public defender and the state public defender’s staff shall receive actual and necessary expenses, including travel at the state rate set forth in section 18.117 8A.363.

Sec. 137. Section 15.106, subsection 2, Code 2003, is amended to read as follows: 2. Employ personnel as necessary to carry out the duties and responsibilities of the depart-

ment, consistent with the merit system provisions of chapter 19A 8A, article 4, for nonprofes- sional employees. Professional staff of the department are exempt from themerit systempro- visions of chapter 19A 8A, article 4.

Sec. 138. Section 15.108, subsection 9, paragraph c, Code 2003, is amended to read as fol- lows: c. Except as otherwise provided in sections 7D.33 8A.110, 260C.14, and 262.9, provide that

an inventor whose research is funded in whole or in part by the state shall assign to the state a proportionate part of the inventor’s rights to a letter patent resulting from that research. Roy- alties or earningsderived froma letter patent shall be paid to the treasurer of state and credited by the treasurer to the general fund of the state. However, the department in conjunctionwith other state agencies, including the board of regents, shall provide incentives to inventors whose research is funded in whole or in part by the state for having their products produced in the state. These incentives may include taking a smaller portion of the inventor’s royalties or earnings than would otherwise occur under this paragraph or other provisions of the law.

Sec. 139. Section 16.2, subsection 1, unnumbered paragraph 2, Code 2003, is amended to read as follows: A title guaranty division is created within the authority. The powers of the division relating

to the issuance of title guaranties are vested in and shall be exercised by a division board of five members appointed by the governor subject to confirmation by the senate. Themember- ship of the board shall include an attorney, an abstractor, a real estate broker, a representative of a mortgage-lender, and a representative of the housing development industry. The execu- tive director of the authority shall appoint an attorney as director of the title guaranty division who shall serve as an ex officio member of the board. The appointment of and compensation for the divisiondirector are exempt from themerit systemprovisions of chapter 19A 8A, article 4.

391 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

Sec. 140. Section 16A.5, subsection 2, Code 2003, is amended to read as follows: 2. The executive director is a nonvoting ex officiomember of the board, and shall advise the

authority on matters relating to finance, carry out all directives from the authority, and hire and supervise the authority’s staff pursuant to its directions and under themerit system provi- sions of chapter 19A 8A, article 4, except that principal administrative assistants with respon- sibilities in operating loan programs, accounting, and processing of applications for interest reduction are exempt from the merit system.

Sec. 141. Section 17A.6, subsection 5, Code 2003, is amended to read as follows: 5. The Iowaadministrative code, its supplements, and the Iowaadministrative bulletin shall

be made available upon request to all persons who subscribe to any of them through the state printing division. Copies of this code so made available shall be kept current by the division.

Sec. 142. Section 19B.5, subsection 2, Code 2003, is amended to read as follows: 2. The department of personnel administrative services shall submit a report on the condi-

tion of affirmative action, diversity, and multicultural programs in state agencies covered by subsection 1 by September 30 of each year to the governor and the general assembly. The re- port shall include information identifying funding sources and itemized costs, including ad- ministrative costs, for these programs.

Sec. 143. Section 19B.12, subsection 4, Code 2003, is amended to read as follows: 4. The department of personnel administrative services for all state agencies, and the state

board of regents for its institutions, shall adopt rules and appropriate internal, confidential grievance procedures to implement this section, and shall adopt procedures for determining violations of this section and for ordering appropriate dispositions that may include, but are not limited to, discharge, suspension, or reduction in rank or grade as defined in section 19A.9 8A.413, subsection 16.

Sec. 144. Section 20.5, subsection 4, Code 2003, is amended to read as follows: 4. The board may employ such persons as are necessary for the performance of its func-

tions. Personnel of the board shall be employed pursuant to the provisions of chapter 19A 8A, article 4.

Sec. 145. Section 20.18, unnumbered paragraph 2, Code 2003, is amended to read as fol- lows: Public employees of the state or public employees covered by civil service shall follow either

the grievance procedures provided in a collective bargaining agreement, or in the event that grievance procedures are not provided, shall follow grievance procedures established pur- suant to chapter 19A 8A, article 4, or chapter 400, as applicable.

Sec. 146. Section 23A.2, subsection 10, paragraph o, Code 2003, is amended to read as fol- lows: o. The performance of an activity authorized pursuant to section 14B.102 8A.202, subsec-

tion 2, paragraph “l” “k”.

Sec. 147. Section 29A.13, Code 2003, is amended to read as follows: 29A.13 APPROPRIATED FUNDS. Operating expenses for the national guard including the purchase of land, maintenance of

facilities, improvement of statemilitary reservations, installations, andweapons firing ranges ownedor leased by the state of Iowaor theUnitedStates shall be paid from funds appropriated for the support andmaintenance of the national guard. Claims for payment of such expenses shall be subject to the approval of the adjutant general. Upon approval of the adjutant general the claim shall be submitted to the director of revenue and finance in accordancewith the pro- cedures established by the director of revenue and finance under chapter 421 the department of administrative services.

392LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

Payment for personnel compensation andauthorizedbenefits shall be approvedby the adju- tant general prior to submission to the director of revenue and finance the department of ad- ministrative services for payment.

Sec. 148. Section 35A.8, subsection 3, Code 2003, is amended to read as follows: 3. Except for the employment duties and responsibilities assigned to the commandant for

the Iowa veterans home, the executive director shall employ such personnel as are necessary for the performance of the duties and responsibilities assigned to the commission. All em- ployees shall be selected on a basis of fitness for the work to be performed with due regard to training and experience and shall be subject to the provisions of chapter 19A 8A, article 4.

Sec. 149. Section 35A.10, Code 2003, is amended to read as follows: 35A.10 MULTIYEAR CONSTRUCTION PROGRAM — CONSTRUCTION, REPAIR, AND

IMPROVEMENT PROJECTS. 1. The commission shall work with the department of general administrative services to

prepare and submit to the director of the department of management, as provided in section 8.23, a multiyear construction program including estimates of the expenditure requirements for the construction, repair, or improvement of buildings, grounds, or equipment at the com- mission of veterans affairs building at Camp Dodge and the Iowa veterans home in Marshall- town. 2. The commandant and the commission shall have plans and specifications prepared by

the department of general administrative services for authorized construction, repair, or im- provement projects in excess of twenty-five thousand dollars. An appropriation for a project shall not be expended until the department of general administrative services has adopted plans and specifications and has completed a detailed estimate of the cost of the project, pre- pared under the supervision of a registered architect or registered professional engineer. 3. The director of the department of general administrative services shall, in writing, let all

contracts for authorized improvements in excess of twenty-five thousand dollars in accor- dance with chapter 18 8A, article 3. The director of the department of general administrative services shall not authorize payment for construction purposes until satisfactory proof has been furnished by the proper officer or supervising architect that the parties have complied with the contract.

Sec. 150. Section 35D.14, unnumbered paragraph 1, Code 2003, is amended to read as fol- lows: The commandant or the commandant’s designee shall employ such personnel as are neces-

sary for the performance of the duties and responsibilities assigned to the commandant. All employees shall be selected on a basis of fitness for the work to be performedwith due regard to training and experience and shall be subject to the provisions of chapter 19A 8A, article 4.

Sec. 151. Section 42.1, subsection 5, paragraph b, Code 2003, is amended to read as fol- lows: b. An elective office in the executive or legislative branch of the government of this state,

or an office which is filled by appointment and is exempt from themerit system under section 19A.3 8A.412.

Sec. 152. Section 47.8, subsection 3, unnumbered paragraph 2, Code 2003, is amended to read as follows: The commission may authorize the registrar to employ such additional staff personnel as

it deems necessary to permit the duties of the registrar’s office to be adequately and promptly discharged. Such personnel shall be employed pursuant to chapter 19A 8A, article 4.

Sec. 153. Section 55.1, unnumbered paragraph 2, Code 2003, is amended to read as fol- lows: A leave of absence for a person regularly employed pursuant to chapter 19A 8A, article 4,

is subject to section 19A.18 8A.416.

393 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

Sec. 154. Section 55.4, unnumbered paragraph 1, Code 2003, is amended to read as fol- lows: Any public employee who becomes a candidate for any elective public office shall, upon re-

quest of the employee and commencing any timewithin thirty days prior to a contested prima- ry, special, or general election and continuing until after the day following that election, auto- matically be given a period of leave. If the employee is under chapter 19A 8A, article 4, the employee may choose to use accrued vacation leave, accrued compensatory leave or leave without pay to cover these periods. The appointing authority may authorize other employees to use accrued vacation leave or accrued compensatory leave instead of leave without pay to cover these periods. An employee who is a candidate for any elective public office shall not campaign while on duty as an employee.

Sec. 155. Section 68B.32, subsection 5, Code 2003, is amended to read as follows: 5. The board shall employ a full-time executive director who shall be the board’s chief ad-

ministrative officer. The board shall employ or contract for the employment of legal counsel notwithstanding section 13.7, and any other personnel as may be necessary to carry out the duties of the board. The board’s legal counsel shall be the chief legal officer of the board, and shall advise the board on all legal matters relating to the administration of this chapter and chapter 56. The state may be represented by the board’s legal counsel in any civil action re- garding the enforcement of this chapter or chapter 56, or, at the board’s request, the statemay be represented by the office of the attorney general. Notwithstanding section 19A.3 8A.412, all of the board’s employees, except for the executive director and legal counsel, shall be em- ployed subject to the merit system provisions of chapter 19A 8A, article 4. The salary of the executive director shall be fixed by the board, within the range established by the general as- sembly. The salary of the legal counsel shall be fixed by the board,within a salary range estab- lished by the department of personnel for a position requiring similar qualifications and expe- rience.

Sec. 156. Section 70A.38, subsection 8, Code 2003, is amended to read as follows: 8. This section is repealed June 30, 2003 2008.

Sec. 157. Section 84A.7, subsection 5, Code 2003, is amended to read as follows: 5. PARTICIPANT ELIGIBILITY. Notwithstanding any contrary provision of chapters 19A

chapter 8A, article 4, and chapter 96, a person employed through an Iowa conservation corps program shall be exempt from merit system requirements and shall not be eligible to receive unemployment compensation benefits.

Sec. 158. Section 86.2, subsection 1, Code 2003, is amended to read as follows: 1. Chief deputy workers’ compensation commissioners for whose acts the commissioner is

responsible,whoare exempt from themerit systemprovisions of chapter 19A 8A, article 4, and who shall serve at the pleasure of the commissioner.

Sec. 159. Section 88.2, subsection 3, Code 2003, is amended to read as follows: 3. Personnel administering the chapter shall be employed pursuant to chapter 19A 8A, ar-

ticle 4.

Sec. 160. Section 88A.6, Code 2003, is amended to read as follows: 88A.6 PERSONNEL. The commissioner may employ inspectors and any other personnel deemed necessary to

carry out the provisions of this chapter, subject to the provisions of chapter 19A 8A, article 4.

Sec. 161. Section 89.1, unnumbered paragraph 1, Code 2003, is amended to read as fol- lows: The labor commissioner shall enforce the provisions of this chapter and may employ quali-

fied personnel under the provisions of chapter 19A 8A, article 4, to administer the provisions of this chapter.

394LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

Sec. 162. Section 89A.4, Code 2003, is amended to read as follows: 89A.4 COMMISSIONER’S DUTIES AND PERSONNEL. The commissioner shall enforce the provisions of this chapter. The commissioner shall em-

ploy personnel for the administration of this chapter pursuant to chapter 19A 8A, article 4.

Sec. 163. Section 91A.9, subsection 3, Code 2003, is amended to read as follows: 3. The commissionermay employ suchqualifiedpersonnel as are necessary for the enforce-

ment of this chapter. Such personnel shall be employed pursuant to chapter 19A 8A, article 4.

Sec. 164. Section 96.11, subsection 16, Code 2003, is amended to read as follows: 16. Reimbursement of setoff costs. The department shall include in the amount set off in

accordance with section 421.17, subsection 29 8A.504, for the collection of an overpayment created pursuant to section 96.3, subsection 7, or section 96.16, subsection 4, an additional amount for the reimbursement of setoff costs incurred by the department of revenue and fi- nance administrative services.

Sec. 165. Section 97.51, subsection 1, Code 2003, is amended to read as follows: 1. The treasurer of state is the custodian and trustee of this fund and shall administer the

fund in accordancewith the directions of the department of personnel Iowa public employees’ retirement system created in section 97B.1. It is the duty of the trustee: a. To hold said trust funds. b. Under the direction of the department3 and as designated by the department,4 invest such

portion of said trust funds as are not needed for current payment of benefits, in interest- bearing securities issued by the United States, or interest-bearing bonds issued by the state of Iowa, or bonds issued by counties, school districts or general obligations or limited levy bonds issued by municipal corporations in this state as authorized by law; also to sell and dis- pose of same when needed for the payment of benefits. c. To disburse the trust funds upon warrants drawn by the director of revenue and finance

pursuant to the order of the department of personnel Iowa public employees’ retirement sys- tem created in section 97B.1.

Sec. 166. Section 97.51, subsection 3, Code 2003, is amended to read as follows: 3. The department of personnel Iowa public employees’ retirement system created in sec-

tion 97B.1 shall administer the Iowa old-age and survivors’ insurance liquidation fund and shall also administer all other provisions of this chapter.

Sec. 167. Section 97.52, Code 2003, is amended to read as follows: 97.52 ADMINISTRATION AGREEMENTS. The department of personnel Iowa public employees’ retirement system created in section

97B.1 may enter into agreements whereby services performed by the department system and its employees under chapters 97, 97B, and97Cshall be equitably apportionedamong the funds provided for the administration of those chapters. The money spent for personnel, rentals, supplies, and equipment used by the department system in administering the chapters shall be equitably apportioned and charged against the funds.

Sec. 168. Section 97A.5, subsections 5 and 6, Code 2003, are amended to read as follows: 5. STAFF. The department of personnel public safety shall provide administrative services

to the board of trustees. Investments shall be administered through the office of the treasurer of state. 6. DATA — RECORDS — REPORTS. a. The department of personnel public safety shall keep in convenient form the data neces-

sary for actuarial valuation of the various funds of the system and for checking the expense of the system. The director of the department commissioner of personnel public safety shall

___________________

3 The word “system” probably intended 4 The word “system” probably intended

395 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

keepa recordof all the acts andproceedings of theboard,which records shall beopen topublic inspection. The board of trustees shall bienniallymake a report to the general assembly show- ing the fiscal transactions of the system for the preceding biennium, the amount of the accu- mulated cash and securities of the system, and the last balance sheet showing the financial condition of the system by means of an actuarial valuation of the assets and liabilities of the system. b. The director of the department commissioner of personnel public safety shall maintain

records, including but not limited to names, addresses, ages, and lengths of service, salaries and wages, contributions, designated beneficiaries, benefit amounts, if applicable, and other information pertaining to members as necessary in the administration of this chapter, as well as the names, addresses, and benefit amounts of beneficiaries. For the purpose of obtaining these facts, the director commissioner of personnel public safety shall have access to the rec- ords of the various departments of the state and the departments shall provide such informa- tion upon request. Member and beneficiary records containing personal information are not public records for the purposes of chapter 22. However, summary information concerning the demographics of the members and general statistical information concerning the system is subject to chapter 22, as well as aggregate information by category.

Sec. 169. Section 97A.7, subsection 4, Code 2003, is amended to read as follows: 4. A member of the board of trustees or an employee of the department of personnel public

safety shall not have a direct interest in the gains or profits of any investment made by the board of trustees. A trustee shall not receive any pay or emolument for the trustee’s services. A trustee or employee of the department of personnel public safety shall not directly or indi- rectly use the assets of the system except to make current and necessary payments as autho- rized by the board of trustees, nor shall a trustee or employee of the department of personnel public safety become an endorser or surety or become in any manner an obligor for moneys loaned by or borrowed from the board of trustees.

Sec. 170. Section 97B.1, Code 2003, is amended to read as follows: 97B.1 SYSTEM CREATED — ORGANIZATIONAL DEFINITIONS. 1. The “Iowa Public Employees’ Retirement System” is created established as an indepen-

dent agencywithin the executive branch of state government. The Iowa public employees’ re- tirement system division, a separate and distinct division within the department of personnel, shall administer the retirement system established under this chapter. 2. As used in this chapter, unless the context requires otherwise: a. “Board” means the investment board created by section 97B.8A. b. “Chief executive officer” means the chief executive officer of the Iowa public employees’

retirement system division, notwithstanding section 7E.2, subsection 3, paragraph “c”, sub- paragraph (1). c. “Committee” means the benefits advisory committee created by section 97B.8B. d. “Division” means the Iowa public employees’ retirement system division. e. d. “System” means the Iowa public employees’ retirement system.

Sec. 171. Section 97B.1A, subsection 23, Code 2003, is amended to read as follows: 23. 19A. “System” “Retirement system” means the retirement plan as contained herein in

this chapter or as duly amended.

Sec. 172. Section 97B.4, subsection 2, paragraph c, Code 2003, is amended to read as fol- lows: c. In administering this chapter, the division shall system may enter into a biennial agree-

ment with the department of personnel administrative services concerning the sharing of re- sources between the division system and department which are of benefit to each and which are consistent with the mission of the division system and the department. The budget pro- gram for the division system shall be established by the chief executive officer in consultation

396LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

with the board and other staff of the division system and shall be compiled by the department of personnel in collaboration with the division and submitted on behalf of the division by the department system pursuant to section 8.23.

Sec. 173. Section 97B.4, subsection 3, paragraphs a, b, c, and d, Code 2003, are amended to read as follows: a. CHIEF INVESTMENT OFFICER. The chief executive officer, following consultation

with the board, shall employ a chief investment officer who shall be appointed pursuant to chapter 19A 8A, article 4, and shall be responsible for administering the investment program for the retirement fund pursuant to the investment policies of the board. b. CHIEF BENEFITS OFFICER. The chief executive officer, following consultation with

the benefits advisory committee, shall employ a chief benefits officer who shall be appointed pursuant to chapter 19A 8A, article 4, and shall be responsible for administering the benefits and other services provided under the retirement system. c. ACTUARY. The division system shall employ an actuary who shall be selected by the

board and shall serve at the pleasure of the board. The actuary shall be the technical advisor for the system on matters regarding the operation of the retirement fund. d. DIVISION SYSTEM EMPLOYEES. Subject to other provisions of this chapter, the divi-

sion system may employ all other personnel as necessary for the administration of the retire- ment system. Themaximumnumber of full-time equivalent employees specified by thegener- al assembly for the division system for administration of the retirement system for a fiscal year shall not be reduced by any authority other than the general assembly. The personnel of the division system shall be appointed pursuant to chapter 19A 8A, article 4. The division system shall not appoint or employ a personwho is an officer or committeemember of a political party organization or who holds or is a candidate for a partisan elective public office.

Sec. 174. Section 97B.7A, subsection 5, Code 2003, is amended to read as follows: 5. TRAVEL. In the administration of the investment of moneys in the retirement fund, em-

ployees of the division system and members of the board may travel outside the state for the purpose of meeting with investment firms and consultants and attending conferences and meetings to fulfill their fiduciary responsibilities. This travel is not subject to section 421.38 8A.512, subsection 2.

Sec. 175. Section 97B.43, unnumbered paragraph 1, Code 2003, is amended to read as fol- lows: Each member in service on July 4, 1953, who made contributions under the abolished sys-

tem, and who has not applied for and qualified for benefit payments under the abolished sys- tem, shall receive credit for years of prior service in the determination of retirement allowance payments under this chapter, if the member elects to become a member on or before October 1, 1953, the member has not made application for a refund of the part of the member’s con- tributions under the abolished system which are payable under sections 97.50 to 97.53, and the member gives written authorization prior to October 1, 1953, to the commission to credit to the retirement fund the amount of the member’s contribution which would be subject to a claim for refund. The amount so credited shall, after transfer, be considered as a contribution to the retirement system made as of July 4, 1953, by the member and shall be included in the determination of the amount of moneys payable under this chapter. However, an employee whowas under a contract of employment as a teacher in the public schools of the state of Iowa at the end of the school year 1952-1953, or any person covered by section 97B.1A, subsection 20, paragraph “c” or “d”, shall be considered as in service as of July 4, 1953, if they weremem- bers of the abolished system.

Sec. 176. Section 97B.49B, subsection 1, paragraph e, subparagraph (3), Code 2003, is amended to read as follows: (3) A correctional officer or correctional supervisor employed by the Iowa department of

397 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

corrections, and any other employee of that department whose primary purpose is, through ongoing direct inmate contact, to enforce and maintain discipline, safety, and security within a correctional facility. The Iowa department of corrections and the personnel division of the department of personnel administrative services shall jointly determine which job classifica- tions are covered under this subparagraph.

Sec. 177. Section 97B.49B, subsection 1, paragraph e, subparagraph (7), Code 2003, is amended to read as follows: (7) Anemployee coveredby themerit systemasprovided in chapter 19A 8A, article 4,whose

primary duty is providing airport security and who carries or is licensed to carry a firearm while performing those duties.

Sec. 178. Section 97B.49F, subsection 2, paragraph c, subparagraph (5), Code 2003, is amended to read as follows: (5) Asused in this paragraph, “favorable actuarial experience”means thedifference, if posi-

tive, between the anticipated and actual experience of the retirement system’s actuarial assets and liabilities as measured by the system’s actuary in the most recent annual actuarial valua- tion of the retirement system pursuant to rules adopted by the division system.

Sec. 179. Section 97B.50, subsection 2, paragraph c, Code 2003, is amended to read as fol- lows: c. A vested member who terminated service due to a disability, who has been issued pay-

ment for a refundpursuant to section 97B.53, andwho subsequently commences receivingdis- ability benefits as a result of that disability pursuant to the federal Social Security Act, 42 U.S.C. § 423 et seq. or the federal Railroad Retirement Act, 45U.S.C. § 231 et seq., may receive credit for membership service for the period covered by the refund payment, upon repayment to the division system of the actuarial cost of receiving service credit for the period covered by the refund payment, as determined by the division system. For purposes of this paragraph, the actuarial cost of the service purchase shall be determined as provided in section 97B.74. The payment to the division system as provided in this paragraph shall be made within ninety days after July 1, 2000, or the date federal disability payments commenced, whichever occurs later. For purposes of this paragraph, the date federal disability payments commence shall be thedate that thememberactually receives the first suchpayment, regardless of any retroactive payments included in that payment. A member who repurchases service credit under this paragraph and applies for retirement benefits shall have themember’smonthly allowance, in- cluding retroactive adjustment payments, determined in the samemanner asprovided inpara- graph “a” or “b”, as applicable. This paragraph shall not be implemented until the system has received a determination letter from the federal internal revenue service approving the sys- tem’s plan’s qualified status under Internal Revenue Code section 401(a).

Sec. 180. Section 97B.64, Code 2003, is amended to read as follows: 97B.64 INSURANCE LAWS NOT APPLICABLE. None of the laws of this state regulating insurance or insurance companies shall apply to the

division system or to the Iowa public employees’ retirement system or any of its funds.

Sec. 181. Section 97C.2, subsection 8, Code 2003, is amended to read as follows: 8. The term “state agency” means the department of personnel Iowa public employees’ re-

tirement system created in section 97B.1.

Sec. 182. Section 99E.3, subsection 3, Code 2003, is amended to read as follows: 3. The commissioner may employ, with the approval of the director, clerks, stenographers,

inspectors, agents, and other employees pursuant to chapter 19A 8A, article 4, as necessary to carry out this chapter, except as provided in section 99E.14. The commissionermay require a background investigation to be conducted in connection with the employment of lottery

398LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

employees. The board shall define, by rule, the employment categories subject to investiga- tion. The background investigation by the division of criminal investigation of the department of public safety may include a national criminal history record check through the federal bu- reau of investigation. The screening of lottery employees through the federal bureau of inves- tigation shall be conducted by submission of fingerprints through the state criminal history record repository to the federal bureau of investigation.

Sec. 183. Section 99E.14, unnumbered paragraph 1, Code 2003, is amended to read as fol- lows: The commissioner shall designate three administrative positions within the division which

require specific areas of expertise relating to the operation of the lottery. These three adminis- trative positions are exempt from themerit systemprovisions of chapter 19A 8A, article 4. The commissioner shall designate oneof these three administrators to serve as acting commission- er in the commissioner’s absence.

Sec. 184. Section 103A.6, Code 2003, is amended to read as follows: 103A.6 MERIT SYSTEM. Employees of the commissioner, if required by federal statutes, are covered by themerit sys-

tem provisions of chapter 19A 8A, article 4.

Sec. 185. Section 123.20, subsection 4, Code 2003, is amended to read as follows: 4. To appoint clerks, agents, or other employees required for carrying out the provisions of

this chapter; to dismiss employees for cause; to assign employees to bureaus as created by the administrator within the division; and to designate their title, duties, and powers. All em- ployees of the division are subject to chapter 19A 8A, article 4, unless exempt under section 19A.3 8A.412.

Sec. 186. Section 135.2, unnumbered paragraph 1, Code 2003, is amended to read as fol- lows: The governor shall appoint the director of the department, subject to confirmation by the

senate. The director shall serve at the pleasure of the governor. The director is exempt from the merit system provisions of chapter 19A 8A, article 4. The governor shall set the salary of the director within the range established by the general assembly.

Sec. 187. Section 135C.16, subsection 1, Code 2003, is amended to read as follows: 1. In addition to the inspections required by sections 135C.9 and 135C.38, the department

shall make or cause to be made such further unannounced inspections as it deems necessary to adequately enforce this chapter. At least one general unannounced inspection shall be con- ducted for each health care facility within a thirty-month period. The inspector shall show identification to the person in charge of the facility and state that an inspection is to be made before beginning the inspection. An employee of the department who gives unauthorized ad- vance notice of an inspection made or planned to be made under this subsection or section 135C.38 shall be disciplined as determined by the director, except that if the employee is em- ployed pursuant to themerit systemprovisions of chapter 19A 8A, article 4, the discipline shall not exceed the discipline authorized pursuant to that chapter article.

Sec. 188. Section 135C.18, Code 2003, is amended to read as follows: 135C.18 EMPLOYEES. The department may employ, pursuant to chapter 19A 8A, article 4, such assistants and in-

spectors as may be necessary to administer and enforce the provisions of this chapter.

Sec. 189. Section 137.6, subsection 4, Code 2003, is amended to read as follows: 4. Employ persons as necessary for the efficient discharge of its duties. Employment prac-

tices shall meet the requirements of chapter 19A 8A, article 4, or any civil service provision adopted under chapter 400.

399 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

Sec. 190. Section 142A.5, subsection 1, paragraph b, Code 2003, is amended to read as fol- lows: b. Employ a division administrator who shall be responsible for the administration and

oversight of the division. The division administrator shall report to and shall serve at the pleasure of the director. The administrator shall be exempt from the merit system provisions of chapter 19A 8A, article 4.

Sec. 191. Section 142A.6, subsection 5, Code 2003, is amended to read as follows: 5. Procurement of goods and services necessary to implement the initiative is subject to ap-

proval of the commission. Notwithstanding chapter 18 8A, article 3, or any other provision of law to the contrary, such procurementmay be accomplished by the commission under its own competitive biddingprocesswhich shall provide for consideration of such factors as price, bid- der competence, and expediency in procurement.

Sec. 192. Section 147.98, Code 2003, is amended to read as follows: 147.98 SECRETARY OF PHARMACY EXAMINERS. The pharmacy examiners shall have the right to employ a full-time secretary, who shall not

be amember of the examining board, at such compensation asmay be fixed pursuant to chap- ter 19A 8A, article 4, but the provisions of section 147.22 providing for a secretary for each ex- amining board shall not apply to the pharmacy examiners.

Sec. 193. Section 147.102, Code 2003, is amended to read as follows: 147.102 PSYCHOLOGISTS, CHIROPRACTORS, AND DENTISTS. Notwithstanding the provisions of this subtitle, every application for a license to practice

psychology, chiropractic, or dentistry shall be made directly to the chairperson, executive di- rector, or secretary of theexaminingboardof suchprofession, andevery reciprocal agreement for the recognition of any such license issued in another state shall be negotiated by the exam- ining board for such profession. All examination, license, and renewal fees received fromper- sons licensed to practice any of such professions shall be paid to and collected by the chairper- son, executive director, or secretary of the examining board of such profession, who shall transmit the fees to the treasurer of state for deposit into the general fund of the state. The salary of the secretary shall be established by the governor with the approval of the executive council pursuant to section 19A.9 8A.413, subsection 2, under the pay plan for exempt posi- tions in the executive branch of government.

Sec. 194. Section 147.103, unnumbered paragraph 1, Code 2003, is amended to read as fol- lows: The board of physician assistant examiners may appoint investigators, who shall not be

members of the examining board, to administer and aid in the enforcement of the provisions of law relating to physician assistants. The amount of compensation for the investigators shall be determined pursuant to chapter 19A 8A, article 4.

Sec. 195. Section 147.103A, subsections 3 and 4, Code 2003, are amended to read as fol- lows: 3. The boardmay appoint investigators, who shall not bemembers of the examining board,

andwhose compensation shall be determined pursuant to chapter 19A8A, article 4. Investiga- tors appointed by the board have the powers and status of peace officers when enforcing this chapter and chapters 148, 150, 150A, and 272C. 4. Applications for a license shall be made to the chair-person, executive director, or secre-

tary of the board. All examination, license, and renewal fees shall be paid to and collected by the chairperson, executive director, or secretary of the board, who shall transmit the fees to the treasurer of state for deposit in the general fund of the state. The salary of the executive director of the board shall be established by the governorwith approval of the executive coun- cil pursuant to section 19A.9 8A.413, subsection 2, under the pay plan for exempt positions in the executive branch of government.

400LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

Sec. 196. Section 147.114, Code 2003, is amended to read as follows: 147.114 INSPECTOR. An inspector may be appointed by the board of dental examiners pursuant to the provisions

of chapter 19A 8A, article 4.

Sec. 197. Section 152.2, Code 2003, is amended to read as follows: 152.2 EXECUTIVE DIRECTOR — ASSISTANTS. The board shall appoint a full-time executive director. The executive director shall be a reg-

istered nurse and shall not be a member of the board. The governor, with the approval of the executive council pursuant to section 19A.9 8A.413, subsection 2, under the pay plan for ex- empt positions in the executive branch of government, shall set the salary of the executive di- rector.

Sec. 198. Section 152.3, subsection 6, Code 2003, is amended to read as follows: 6. To appoint assistants to the director and persons necessary to administer this Act chap-

ter. Any appointments shall be merit appointments made pursuant to chapter 19A 8A, article 4.

Sec. 199. Section 152.11, Code 2003, is amended to read as follows: 152.11 INVESTIGATORS FOR NURSES. The board of nursing may appoint investigators, who shall not be members of the board, to

administer andaid in the enforcement of theprovisions of law related to those licensed toprac- tice nursing. The amount of compensation for the investigators shall be determined pursuant to chapter 19A 8A, article 4. Investigators authorized by the board of nursing have the powers and status of peace officers when enforcing this chapter and chapters 147 and 272C.

Sec. 200. Section 153.33, subsection 2, Code 2003, is amended to read as follows: 2. To appoint investigators, who shall not be members of the examining board, to adminis-

ter and aid in the enforcement of the provisions of law relating to those persons licensed to practice dentistry and dental hygiene, and persons registered as dental assistants. The amount of compensation for the investigators shall be determinedpursuant to chapter 19A8A, article 4. Investigators authorized by the board of dental examiners have the powers and sta- tus of peace officers when enforcing this chapter and chapters 147 and 272C.

Sec. 201. Section 157.7, Code 2003, is amended to read as follows: 157.7 INSPECTORS AND CLERICAL ASSISTANTS. The department of inspections and appeals shall employ personnel under pursuant to chap-

ter 19A 8A, article 4, to perform duties related to inspection functions under this chapter. The department of inspections and appeals shall,whenpossible, integrate inspection efforts under this chapter with inspections conducted under chapter 158. The Iowa department of public health may employ clerical assistants under pursuant to

chapter 19A 8A, article 4, to administer and enforce this chapter. The costs and expenses of the clerical assistants shall bepaid from fundsappropriated to thedepartment of public health.

Sec. 202. Section 158.6, Code 2003, is amended to read as follows: 158.6 INSPECTORS AND CLERICAL ASSISTANTS. The department of inspections and appeals shall employ personnel under pursuant to chap-

ter 19A 8A, article 4, to perform duties related to inspection functions under this chapter. The department of inspections and appeals shall,whenpossible, integrate inspection efforts under this chapter with inspections conducted under chapter 157. The Iowa department of public health may employ clerical assistants under pursuant to

chapter 19A 8A, article 4, to administer and enforce this chapter. The costs and expenses of the clerical assistants shall bepaid from fundsappropriated to thedepartment of public health.

401 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

Sec. 203. Section 175.7, subsection 3, Code 2003, is amended to read as follows: 3. The executive director shall advise the authority on matters relating to agricultural land

and property and agricultural finance, and carry out all directives from the authority, and shall hire and supervise the authority’s staff pursuant to its directions and under the merit system provisions of chapter 19A 8A, article 4, except that principal administrative assistants with re- sponsibilities in beginning farm loan programs, accounting, mortgage loan processing, and investment portfolio management are exempt from the merit system.

Sec. 204. Section 189.2, subsection 4, Code 2003, is amended to read as follows: 4. Issue from time to time, bulletins showing the results of inspections, analyses, and pro-

secutions under this subtitle, excluding chapters 203, 203A, 203C, 203D, 207, and 208. These bulletins shall beprinted in suchnumbers asmaybeapprovedby the stateprintingadministra- tor director of the department of administrative services and shall be distributed to the news- papers of the state and to all interested persons.

Sec. 205. Section 216A.2, unnumbered paragraph 2, Code 2003, is amended to read as fol- lows: The governor shall appoint the administrators of each of the divisions subject to confirma-

tionby the senate. Eachadministrator shall serve at thepleasureof the governor and is exempt from themerit systemprovisions of chapter 19A 8A, article 4. The governor shall set the salary of the division administrators within the ranges set by the general assembly.

Sec. 206. Section 216A.145, Code 2003, is amended to read as follows: 216A.145 EMPLOYEES AND RESPONSIBILITY. The administrator shall be the administrative officer of the division and shall be responsible

for implementing policies and programs. The administrator may employ, in accordance with chapter 19A 8A, article 4, other persons necessary to carry out the programs of the division.

Sec. 207. Section 216B.3, subsections 14 and 17, Code 2003, are amended to read as fol- lows: 14. Purchase and use recycled printing and writing paper in accordance with the schedule

established in section 18.18 8A.315; establish a wastepaper recycling program, by January 1, 1990, in accordance with the recommendations made by the department of natural resources and requirements of section18.20 8A.329; and, in accordancewith section18.6 8A.311, require product content statements and compliance with requirements regarding contract bidding. 17. Comply with the requirements for the purchase of lubricating oils, industrial oils,

greases, and hydraulic fluids as established pursuant to section 18.22 8A.316.

Sec. 208. Section 217.23, subsection 1, Code 2003, is amended to read as follows: 1. The director of human services or the director’s designee, shall employ such personnel

as are necessary for the performance of the duties and responsibilities assigned to the depart- ment. All employees shall be selected on a basis of fitness for the work to be performed with due regard to training and experience and shall be subject to the provisions of chapter 19A 8A, article 4.

Sec. 209. Section 217.34, Code 2003, is amended to read as follows: 217.34 DEBT SETOFF. The investigationsdivisionof thedepartment of inspections andappeals and thedepartment

of human services shall provide assistance to set off against a person’s or provider’s income tax refund or rebate any debt which has accrued through written contract, subrogation, de- partmental recoupment procedures, or court judgment andwhich is in the formof a liquidated sum due and owing the department of human services. The department of inspections and appeals, with approval of the department of human services, shall adopt rules under chapter

402LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

17A necessary to assist the department of revenue and finance administrative services in the implementation of the setoff under section 421.17, subsection 21 8A.504 in regard to money owed to the state for public assistance overpayments. Thedepartment of human services shall adopt rules under chapter 17A necessary to assist the department of revenue and finance ad- ministrative services in the implementation of the setoff under section 421.17, subsection 21 8A.504, in regard to collections by the child support recovery unit and the foster care recovery unit.

Sec. 210. Section 218.10, Code 2003, is amended to read as follows: 218.10 SUBORDINATE OFFICERS AND EMPLOYEES. The administrator in charge of a particular institution, with the consent and approval of the

director of human services, shall determine the number of subordinate officers and employees for the institution. Subject to this chapter, the officers and employees shall be appointed and discharged by the superintendent or business manager pursuant to chapter 19A 8A, article 4. The superintendent shall keep, in the record of each subordinate officer and employee, the date of employment, the compensation, and the date of each discharge, and the reasons for discharge.

Sec. 211. Section 218.58, subsections 3 and 5, Code 2003, are amended to read as follows: 3. The department of general administrative services shall let all contracts under chapter

18 8A, article 3, for authorized construction, repair, or improvement of departmental build- ings, grounds, or equipment. 5. A claim for payment relating to a project shall be itemized on a voucher form pursuant

to section 421.40 8A.514, certified by the claimant and the architect or engineer in charge, and audited and approved by the department of general administrative services. Upon approval by the department of general administrative services, the voucher shall be forwarded to the director of revenue and finance, who the department of administrative services shall draw a warrant to be paid by the treasurer of state from funds appropriated for the project. A partial payment made before completion of the project does not constitute final acceptance of the work or a waiver of any defect in the work.

Sec. 212. Section 218.85, Code 2003, is amended to read as follows: 218.85 UNIFORM SYSTEM OF ACCOUNTS. The director of human services through the administrators in control of the institutions shall

install in all the institutions themost modern, complete, and uniform system of accounts, rec- ords, and reports possible. The system shall be prescribed by the director of revenue and fi- nance the department of administrative services as authorized in section 421.31 8A.502, sub- section 10 13, and, among other matters, shall clearly show the detailed facts relative to the handling and uses of all purchases.

Sec. 213. Section 218.100, Code 2003, is amended to read as follows: 218.100 CENTRAL WAREHOUSE AND SUPPLY DEPOT. The department of human services shall establish a fund for maintaining and operating a

centralwarehouse as a supply depot anddistribution facility for surplus government products, carload canned goods, paper products, other staples and such other items as determined by the department. The fund shall be permanent and shall be composed of the receipts from the sales of merchandise, recovery of handling, operating and delivery charges of such merchan- dise and from the funds contributed by the institutions now in a contingent fund being used for this purpose. All claims for purchases ofmerchandise, operating and salary expenses shall be subject to the provisions of sections 218.86 to 218.89 218.88.

Sec. 214. Section 231.22, unnumbered paragraph 1, Code 2003, is amended to read as fol- lows: The governor, subject to confirmation by the senate, shall appoint a director of the depart-

ment of elder affairs who shall, subject to chapter 19A 8A, article 4, employ and direct staff as

403 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

necessary to carry out the powers and duties created by this chapter. The director shall serve at the pleasure of the governor. However, the director is subject to reconfirmation by the sen- ate as provided in section 2.32, subsection 8. The governor shall set the salary for the director within the range set by the general assembly.

Sec. 215. Section 231.58, subsection 4, paragraph d, Code 2003, is amended to read as fol- lows: d. Develop procedures for coordination at the local and state level among the providers of

long-term care, includingwhen possible co-campusing of services. The director of the depart- ment of general administrative services shall give particular attention to this section when ar- ranging for office space pursuant to section 18.12 8A.321 for these three departments.

Sec. 216. Section 234.8, Code 2003, is amended to read as follows: 234.8 FEES FOR CHILD WELFARE SERVICES. The department of human services may charge a fee for child welfare services to a person

liable for the cost of the services. The fee shall not exceed the reasonable cost of the services. The fee shall be based upon the person’s ability to pay and consideration of the fee’s impact upon the liable person’s family and the goals identified in the case permanency plan. The de- partment may assess the liable person for the fee and the means of recovery shall include a setoff against an amount owed by a state agency to the person assessed pursuant to section 421.17, subsection 29 8A.504. In addition the departmentmay establish an administrative pro- cess to recover the assessment through automatic incomewithholding. The department shall adopt rules pursuant to chapter 17A to implement the provisions of this section. This section does not apply to court-ordered services provided to juveniles which are a charge upon the state pursuant to section 232.141 and services forwhich the department has established a sup- port obligation pursuant to section 234.39.

Sec. 217. Section 235A.15, subsection 5, Code 2003, is amended to read as follows: 5. Access to disposition data subject to placement in the central registry pursuant to section

232.71D is authorized to the department of personnel or to the personnel office of a public em- ployer, as defined in section 20.3, as necessary for presentation in grievance or arbitration pro- cedures provided for in sections 19A.14 8A.415 and 20.18. Disposition data introduced into a grievance or arbitration proceeding shall not be considered a part of the public record of a case.

Sec. 218. Section 236.15B, unnumbered paragraph 5, Code 2003, is amended to read as fol- lows: The department of revenue and finance administrative services shall consult the crime vic-

tim assistance board concerning the adoption of rules to implement this section. However, before a checkoff pursuant to this section shall be permitted, all liabilities on the books of the department of revenue and finance administrative services and accounts identified as owing under section 421.17 8A.504 and the political contribution allowed under section 56.18 shall be satisfied.

Sec. 219. Section 252B.5, subsection 4, Code 2003, is amended to read as follows: 4. Assistance to set off against a debtor’s income tax refund or rebate any support debt,

which is assigned to the department of human services or which the child support recovery unit is attempting to collect onbehalf of any individual not eligible as apublic assistance recipi- ent, which has accrued through written contract, subrogation, or court judgment, and which is in the form of a liquidated sum due and owing for the care, support, or maintenance of a child. Unless the periodic payment plan provisions for a retroactive modification pursuant to section 598.21, subsection 8, apply, the entire amount of a judgment for accrued support, not- withstanding compliancewith a periodic payment plan or regardless of the date of entry of the judgment, is due and owing as of the date of entry of the judgment and is delinquent for the purposes of setoff, including for setoff against a debtor’s federal income tax refund or other

404LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

federal nontax payment. The department of human services shall adopt rules pursuant to chapter 17Anecessary to assist the department of revenue and finance administrative services in the implementation of the child support setoff as established under section 421.17, subsec- tion 21 8A.504.

Sec. 220. Section 252B.5, subsection 8, Code 2003, is amended to read as follows: 8. a. Assistance, in consultationwith the department of revenue and finance administrative

services, in identifying and taking action against self-employed individuals as identified by the following conditions: (1) The individual owes support pursuant to a court or administrative order being enforced

by the unit and is delinquent in an amount equal to or greater than the support obligation amount assessed for one month. (2) The individual has filed a state income tax return in the preceding twelve months. (3) The individual has no reported tax withholding amount on themost recent state income

tax return. (4) The individual has failed to enter into or comply with a formalized repayment plan with

the unit. (5) The individual has failed tomakeeither all current support payments in accordancewith

the court or administrative order or to make payments against any delinquency in each of the preceding twelve months. b. Notwithstanding section 252B.9, the unit may forward information to the department of

revenue and finance administrative services as necessary to implement this subsection, in- cluding but not limited to both of the following: (1) The name and social security number of the individual. (2) Support obligation information in the specific case, including the amount of the delin-

quency.

Sec. 221. Section 255.27, Code 2003, is amended to read as follows: 255.27 FACULTY TO PREPARE BLANKS — PRINTING. The medical faculty of the state university hospital shall from time to time prepare blanks

containing questions and requiring information that it finds necessary and proper to be ob- tained by the physician who examines a patient under order of court. The blanks shall be printed by the state, and a sufficient supply shall be furnished by the state printing administra- tor director of the department of administrative services to the clerk of each juvenile court in the state. The cost of printing the blanks shall be audited, allowed, and paid in the sameman- ner as other bills for public printing.

Sec. 222. Section 256.9, subsection 4, Code 2003, is amended to read as follows: 4. Employ personnel and assign duties and responsibilities of the department. The director

shall appoint a deputy director and division administrators deemed necessary. They shall be appointed on the basis of their professional qualifications, experience in administration, and background. Members of the professional staff are not subject to themerit system provisions of chapter 19A 8A, article 4, and are subject to section 256.10.

Sec. 223. Section 256.52, subsection 3, paragraph d, Code 2003, is amended to read as fol- lows: d. Appoint and approve the technical, professional, excepting themedical librarian and the

law librarian, secretarial, and clerical staff necessary to accomplish the purposes of the divi- sion subject to chapter 19A 8A, article 4.

Sec. 224. Section 256.54, subsection 1, unnumbered paragraph 1, Code 2003, is amended to read as follows: The medical library shall be administered by a medical librarian, appointed by the director

subject to chapter 19A 8A, article 4, who shall do all of the following:

405 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

Sec. 225. Section 256.54, subsection 2, unnumbered paragraph 1, Code 2003, is amended to read as follows: The law library shall be administered by a law librarian appointed by the director subject

to chapter 19A 8A, article 4, who shall do all of the following:

Sec. 226. Section 257C.6, subsection 11, Code 2003, is amended to read as follows: 11. The authority is exempt from chapter 18 8A, article 3.

Sec. 227. Section 260C.19B, Code 2003, is amended to read as follows: 260C.19B PURCHASE OF BIO-BASED HYDRAULIC FLUIDS, GREASES, AND OTHER

INDUSTRIAL LUBRICANTS. Hydraulic fluids, greases, and other industrial lubricants purchased by or used under the di-

rectionof theboardofdirectors toprovide services to amergedarea shall bepurchased in com- pliance with the preference requirements for purchasing bio-based hydraulic fluids, greases, and other industrial lubricants as provided pursuant to section 18.22 8A.316.

Sec. 228. Section 261.37, subsection 7, Code 2003, is amended to read as follows: 7. To establish an effective system for the collection of delinquent loans, including the adop-

tion of an agreementwith the Iowa department of revenue and finance administrative services to set off against a defaulter’s income tax refund or rebate the amount that is due because of a default on a guaranteed or parental loan made under this division. The commission shall adopt rules under chapter 17A necessary to assist the department of revenue and finance ad- ministrative services in the implementation of the student loan setoff program as established under section 421.17, subsection 23 8A.504.

Sec. 229. Section 261A.6, subsection 10, Code 2003, is amended to read as follows: 10. All employees of the authority are exempt from chapters 19A chapter 8A, article 4, and

chapter 97B.

Sec. 230. Section 262.9, subsection 6, Code 2003, is amended to read as follows: 6. Purchase and use recycled printing and writing paper, with the exception of specialized

paper when no recyclable product is available, in accordance with the schedule established in section 18.18 8A.315; establish awastepaper recycling program for all institutions governed by the board in accordance with recommendations made by the department of natural re- sources and the requirements of section 18.20 8A.329; shall, in accordance with the require- ments of section 18.6 8A.311, require product content statements and compliance with re- quirements regardingprocurement specifications; and shall complywith the requirements for the purchase of lubricating oils and industrial oils as established pursuant to section 18.22 8A.316.

Sec. 231. Section 262.25A, subsection 1, Code 2003, is amended to read as follows: 1. Institutions under the control of the state board of regents shall purchase only new auto-

mobileswhich have at least the fuel economy required for purchase of new automobiles by the state fleet administrator director of the department of administrative services under section 18.115 8A.362, subsection 4. This subsection does not apply to automobiles purchased for law enforcement purposes.

Sec. 232. Section 262.25B, Code 2003, is amended to read as follows: 262.25B PURCHASE OF BIO-BASEDHYDRAULIC FLUIDS, GREASES, AND OTHER IN-

DUSTRIAL LUBRICANTS. The state board of regents and institutions under the control of the board purchasing hy-

draulic fluids, greases, and other industrial lubricants shall give preference to purchasing bio- based hydraulic fluids, greases, and other industrial lubricants as provided in section 18.22 8A.316.

406LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

Sec. 233. Section 272C.7, subsection 1, Code 2003, is amended to read as follows: 1. As an alternative to authority contained elsewhere in this chapter, a licensing boardmay

employwithin the limits of available funds an executive secretary, one ormore inspectors, and such clerical personnel as may be necessary for the administration of the duties of the board. Employees of the board shall be employed subject to chapter 19A 8A, article 4. The qualifica- tions of the executive secretary shall be determined by the board.

Sec. 234. Section 298.14, Code 2003, is amended to read as follows: 298.14 SCHOOL DISTRICT INCOME SURTAXES. For each fiscal year, the cumulative total of the percents of surtax approved by the board of

directors of a school district and collected by thedepartment of revenueand finance under sec- tions 257.21, 257.29, and 298.2, and the enrichment surtax under section 442.15, Code 1989, and an income surtax collected by a political subdivision under chapter 422D, shall not exceed twenty percent. A school district income surtax fund is created in the office of treasurer of state. Income sur-

taxes collected by the department of revenue and finance under sections 257.21, 257.29, and 298.2 and section 442.15, Code 1989, shall be deposited in the school district income surtax fund to the credit of each school district. A separate accounting of each surtax, by school dis- trict, shall be maintained. The director of revenue and finance the department of administrative services shall draw

warrants in payment of the surtaxes collected in each school district. Warrants shall be pay- able in two installments to be paid on approximately the first day of December and the first day of February following collection of the taxes and shall be delivered to the respective school districts.

Sec. 235. Section 303.1A, subsection 5, Code 2003, is amended to read as follows: 5. Appoint and approve the technical, professional, secretarial, and clerical staff necessary

to accomplish the purposes of the department subject to chapter 19A 8A, article 4.

Sec. 236. Section 303.2, subsection 2, paragraph i, Code 2003, is amended to read as fol- lows: i. Buy or receive by other means historical materials including, but not limited to, artifacts,

art, books, manuscripts, and images. Such materials are not personal property under section 18.12 sections 8A.321 and 8A.324 and shall be received and cared for under the rules of the department. Thehistorical divisionmay sell or otherwisedispose of thosematerials according to the rules of the department and be credited for any revenues credited by the disposal less the costs incurred.

Sec. 237. Section 303.9, subsection 2, Code 2003, is amended to read as follows: 2. The department may sell mementos and other items relating to Iowa history and historic

sites on the premises of property under control of the department and at the state capitol. Not- withstanding sections 18.12 8A.321 and 18.16 8A.327, the department may directly and inde- pendently enter into rental and lease agreements with private vendors for the purpose of sell- ingmementos. All fees and income produced by the sales and rental or lease agreements shall be credited to the account of the department. The mementos and other items sold by the de- partment or vendors under this subsection are exempt from section 18.6 8A.311. The depart- ment is not a retailer under chapter 422 and the sale of suchmementos and other items by the department is not a retail sale under chapter 422 and is exempt from the sales tax.

Sec. 238. Section 304.3, subsections 8 and 9, Code 2003, are amended to read as follows: 8. The director of the department of general administrative services. 9. The director of the information technology department.

Sec. 239. Section 307.12, subsection 2, Code 2003, is amended to read as follows: 2. Employ personnel as necessary to carry out the duties and responsibilities of the depart-

ment, consistent with chapter 19A 8A, article 4.

407 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

Sec. 240. Section 307.12, unnumbered paragraph 2, Code 2003, is amended to read as fol- lows: If in the interest of the state, the director may allow a subsistence expense to an employee

under the supervision of the department’s administrator for highways for continuous stay in one location while on duty away from established head-quarters and place of domicile for a period not to exceed forty-five days; and allow automobile expenses in accordance with sec- tion 18.117 8A.363, for moving an employee and the employee’s family from place of present domicile to new domicile, and actual transportation expense for moving of household goods. Thehousehold goods forwhich transportation expense is allowed shall not includepets or ani- mals.

Sec. 241. Section307.21, subsection4, paragraphsaandb,Code2003, areamended to read as follows: a. Provide centralized purchasing services for the department, in cooperation with the de-

partment of general administrative services. Theadministrator shall,when theprice is reason- ably competitive and the quality as intended, purchase soybean-based inks and plastic prod- ucts with recycled content, including but not limited to plastic garbage can liners, and shall purchase these items in accordance with the schedule established in section 18.18 8A.315. However, the administrator need not purchase garbage can liners in accordance with the schedule if the liners are utilized by a facility approved by the environmental protection com- mission created under section 455A.6, for purposes of recycling. For purposes of this subsec- tion, “recycled content” means that the content of the product contains a minimum of thirty percent postconsumer material. b. The administrator shall do all of the following: (1) Purchase and use recycled printing and writing paper in accordance with the schedule

established in section 18.18 8A.315. (2) Establish a wastepaper recycling program by January 1, 1990, in accordance with rec-

ommendations made by the department of natural resources and the requirements of section 18.20 8A.329. (3) Require in accordancewith section 18.6 8A.311 product content statements and compli-

ance with requirements regarding procurement specifications. (4) Comply with the requirements for the purchase of lubricating oils, industrial oils,

greases, and hydraulic fluids as established pursuant to section 18.22 8A.316.

Sec. 242. Section 307.21, unnumbered paragraph 2, Code 2003, is amended to read as fol- lows: The administrator of administrative services may purchase items from the department of

general administrative services andmay cooperatewith thedirector of general thedepartment of administrative services by providing centralized purchasing services for the department of general administrative services.

Sec. 243. Section 313.4, subsection 3, Code 2003, is amended to read as follows: 3. There is appropriated from funds appropriated to the departmentwhichwould otherwise

revert to the primary road fund pursuant to the provisions of the Act appropriating the funds or chapter 8, an amount sufficient to pay the increase in salaries, which increase is not other- wise provided for by the general assembly in an appropriation bill, resulting from the annual review of the merit pay plan as provided in subsection 2 of section 19A.9 8A.413, subsection 2. The appropriation herein provided shall be in effect from the effective date of the revised pay plan to the end of the fiscal biennium in which it becomes effective.

Sec. 244. Section 321.19, subsection 1, unnumbered paragraph 2, Code 2003, is amended to read as follows: The department shall furnish, on application, free of charge, distinguishing plates for ve-

hicles thus exempted, which plates except plates on Iowa state patrol vehicles shall bear the word “official” and the department shall keep a separate record. Registration plates issued for

408LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

Iowa state patrol vehicles, except unmarked patrol vehicles, shall bear two red stars on a yel- lowbackground, onebefore andone following the registrationnumberon theplate,which reg- istration number shall be the officer’s badge number. Registration plates issued for county sheriff’s patrol vehicles shall display one seven-pointed gold star followed by the letter “S” and the call number of the vehicle. However, the director of general the department of administra- tive services or the director of transportation may order the issuance of regular registration plates for any exempted vehicle used by peace officers in the enforcement of the law, persons enforcing chapter 124 and other laws relating to controlled substances, persons in the depart- ment of justice, the alcoholic beverages division of the department of commerce, disease in- vestigators of the Iowa department of public health, the department of inspections and ap- peals, and the department of revenue and finance, who are regularly assigned to conduct investigationswhich cannot reasonably be conductedwith a vehicle displaying “official” state registration plates, persons in the lottery division of the department of revenue and finance whose regularly assigned duties relating to security or the carrying of lottery tickets cannot reasonably be conducted with a vehicle displaying “official” registration plates, and persons in the department of economic development who are regularly assigned duties relating to existing industry expansion or business attraction. For purposes of sale of exempted vehicles, the exempted governmental body, upon the sale of the exempted vehicle, may issue for in- transit purposes a pasteboard card bearing thewords “Vehicle in Transit”, the nameof the offi- cial body fromwhich the vehiclewas purchased, togetherwith the date of the purchase plainly marked in at least one-inch letters, and other information required by the department. The in-transit card is valid for use onlywithin forty-eight hours after the purchase date as indicated on the bill of sale which shall be carried by the driver.

Sec. 245. Section 321.30, subsection 13, Code 2003, is amended to read as follows: 13. The department or the county treasurer knows that an applicant for renewal of a regis-

tration has a delinquent account, charge, fee, loan, taxes, or other indebtedness owed to or be- ing collected by the state, from information received pursuant to section sections 421.17 and 8A.504. An applicant may contest this action by requesting a contested case proceeding from theagency that referred thedebt for collection pursuant to section 421.17 8A.504. This subsec- tion shall apply only to a renewal of registration and shall not apply to the issuance of an origi- nal registration or to the issuance of a certificate of title.

Sec. 246. Section 321.31, subsection 1, unnumbered paragraph 3, Code 2003, is amended to read as follows: The director shall maintain a records system of delinquent accounts owed to the state using

information provided through the computerized data bank established in section 421.17. The department and county treasurers shall use the informationmaintained in the records system to determine if applicants for renewal of registration have delinquent accounts, charges, fees, loans, taxes, or other indebtedness owed to or being collected by the state as provided pur- suant to section 421.17 8A.504. The director, the director of the department of administrative services, and the director of revenue and finance shall establish procedures for updating the delinquent accounts records to add and remove accounts, as applicable.

Sec. 247. Section 321.35, unnumbered paragraph 2, Code 2003, is amended to read as fol- lows: The department shall not enter into any contract requiring an expenditure of at least five

hundred thousand dollars for the manufacture of motor vehicle registration plates to be reis- sued to owners under this chapter unless competitive bidding procedures as provided in chap- ter 18 8A, article 3, are followed.

Sec. 248. Section 321.40, unnumbered paragraph 6, Code 2003, is amended to read as fol- lows: The county treasurer shall refuse to renew the registration of a vehicle registered to the

409 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

applicant if the county treasurer knows that the applicant has a delinquent account, charge, fee, loan, taxes, or other indebtednessowed toorbeingcollectedby the state, from information provided pursuant to section sections 8A.504 and 421.17. An applicantmay contest this action by requestinga contested caseproceeding from the agency that referred thedebt for collection pursuant to section 421.17 8A.504.

Sec. 249. Section 321.149, Code 2003, is amended to read as follows: 321.149 BLANKS. The department shall not later than November 15 of each year prepare and furnish the trea-

surer of each county all blank books, blank forms, and all supplies required for the administra- tion of this chapter, including applications for registration and transfer of vehicles, quintuple receipts, and original remittance sheets to be used in remitting fees to the department, in such form as the department may prescribe. Contracts for the blank books, blank forms, and sup- plies shall be awarded by the state printing administrator director of the department of admin- istrative services to persons, firms, partnerships, or corporations engaged in the business of printing in Iowaunless, or through them, the persons, firms, partnerships or corporations can- not provide the required printing set forth in this section. In lieu of purchasing under competi- tive bids the state printing administrator director of the department of administrative services shall have authority to arrange with the director of the department of corrections to furnish the supplies as can be made in the state institutions.

Sec. 250. Section 321.210B, Code 2003, is amended to read as follows: 321.210B NONRENEWAL OR SUSPENSION FOR FAILURE TO PAY INDEBTEDNESS

OWED TO THE STATE. The department shall suspend or refuse to renew the driver’s license of a person who has

adelinquent account owed to the state according to records providedby thedepartment of rev- enue and finance pursuant to section 421.17. A license shall be suspended or shall not be re- newed until such time as the department of revenue and finance administrative services noti- fies the state department of transportation that the licensee has made arrangements for payment of the debt with the agency which is owed or is collecting the debt. This section is only applicable to those persons residing in a county which is participating in the driver’s li- cense indebtedness clearance pilot project.

Sec. 251. Section 331.502, subsection 3, Code 2003, is amended by striking the subsection.

Sec. 252. Section 331.552, subsection 5, Code 2003, is amended to read as follows: 5. Account for, report, and pay into the state treasury anymoney, property, or securities re-

ceived on behalf of the state as provided in sections 421.32 8A.506 to 421.34 8A.508.

Sec. 253. Section 405A.10, Code 2003, is amended to read as follows: 405A.10 FRANCHISE TAX REVENUE ALLOCATION. For the fiscal year beginning July 1, 1997, and each subsequent fiscal year, there is appro-

priated from the general fund of the state to the department of revenue and finance the sum of eight million eight hundred thousand dollars which shall be paid quarterly on warrants by the director of the department of administrative services as allocated pursuant to section 422.65.

Sec. 254. Section 421.17, subsections 21, 23, 24, 25, 26, 28, 29, 30, and 33, Code 2003, are amended by striking the subsections.

Sec. 255. Section 422.12A, subsection 2, Code 2003, is amended to read as follows: 2. The director of revenue and finance shall draft the income tax form to allow the designa-

tion of contributions to thekeep Iowabeautiful fundon the tax return. Thedepartment of reve- nue and finance, on or before January 31, shall certify the total amount designated on the tax

410LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

return forms due in the preceding calendar year and shall report the amount to the treasurer of state. The treasurer of state shall credit the amount to the keep Iowabeautiful fund. Howev- er, before a checkoff pursuant to this section shall be permitted, all liabilities on the books of the department of revenue and finance and accounts identified as owing under section 421.17 and the political contribution allowed under section 56.18 shall be satisfied.

Sec. 256. Section 422.20, subsection 3, unnumbered paragraph 1, Code 2003, is amended to read as follows: Unless otherwise expressly permitted by section 8A.504, section 421.17, subsections 21, 22,

22A, 23, 25, 29, and 32, sections 252B.9, 421.19, 421.28, 422.72, and 452A.63, and this section, a tax return, return information, or investigative or audit information shall not be divulged to any person or entity, other than the taxpayer, the department, or internal revenue service for use in a matter unrelated to tax administration.

Sec. 257. Section 422.72, subsection 3, unnumbered paragraph 1, Code 2003, is amended to read as follows: Unless otherwise expressly permitted by section 8A.504, section 421.17, subsections 21, 22,

22A, 23, 25, 29, and 32, sections 252B.9, 421.19, 421.28, 422.20, and 452A.63, and this section, a tax return, return information, or investigative or audit information shall not be divulged to any person or entity, other than the taxpayer, the department, or internal revenue service for use in a matter unrelated to tax administration.

Sec. 258. Section 425.1, subsection 1, Code 2003, is amended to read as follows: 1. Ahomestead credit fund is created. There is appropriated annually from the general fund

of the state to the department of revenue and finance to be credited to the homestead credit fund, an amount sufficient to implement this chapter. The director of revenue and finance the department of administrative services shall issue

warrants on the homestead credit fundpayable to the county treasurers of the several counties of the state under this chapter.

Sec. 259. Section 432.13, unnumbered paragraph 2, Code 2003, is amended to read as fol- lows: Premiums received for benefits acquired by the department of personnel administrative ser-

vices onbehalf of state employeespursuant to section19A.1 8A.402, subsection21, areexempt from premium tax.

Sec. 260. Section 450.84, Code 2003, is amended to read as follows: 450.84 COSTS CHARGED AGAINST ESTATE — EXCEPTIONS. If an estate or interest in an estate passes so as to be liable to taxation under this chapter,

all costs of the proceedings for the assessment of the tax are chargeable to the estate as other costs in probate proceedings and, to discharge the lien, all costs as well as the taxes must be paid. In all other cases the costs are to be paid as ordered by the court. When a decision ad- verse to the state has been rendered, with an order that the state pay the costs, the clerk of the court in which the action was pending shall certify the amount of the costs to the director of revenue and finance, who shall, if the costs are correctly certified and the case has been finally terminated and the tax, if any is due, has been paid, audit the claim and direct the department of administrative services to issue a warrant on the treasurer of state in payment of the costs.

Sec. 261. Section 452A.77, unnumberedparagraph1,Code 2003, is amended to read as fol- lows: All fees, taxes, interest and penalties imposed under this chaptermust be paid to the depart-

ment of revenue and finance or the state department of transportation, whichever is responsi- ble for the collection. The appropriate state agency shall transmit each payment daily to the treasurer of state. Such payments shall be deposited by the treasurer of state in a fund, hereby

411 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

created, within the state treasury which shall be known as the “motor fuel tax fund,” the net proceeds of which fund, after deductions by lawful transfers and refunds, shall be known as the “motor vehicle fuel tax fund”. Thedepartment of revenue and finance and the state depart- ment of transportation shall certify monthly to the director of revenue and finance the depart- ment of administrative services amounts of refunds of tax approved during each month, and the director of revenue and finance the department of administrative services shall drawwar- rants in such amounts on the motor fuel tax fund and transmit them. There is hereby appro- priated out of themoney received under the provisions of this chapter and deposited in themo- tor fuel tax fund sufficient funds to pay such refunds as may be authorized in this chapter.

Sec. 262. Section 455A.4, subsection 1, paragraph e, Code 2003, is amended to read as fol- lows: e. Employ personnel as necessary to carry out the functions vested in the department con-

sistentwith chapter 19A8A, article 4, unless thepositions are exempt from that chapter article.

Sec. 263. Section 455G.3, subsection 5, Code 2003, is amended to read as follows: 5. Forpurposesof payment of refundsof theenvironmental protection chargeunder section

424.15 by the department of revenue and finance, the treasurer of state shall allocate to the department of revenue and finance administrative services the total amount budgeted by the fund’s board for environmental protection charge refunds. Any unused funds shall be re- mitted to the treasurer of state.

Sec. 264. Section 459.505, subsection 2, paragraph b, Code 2003, is amended to read as fol- lows: b. Obtain a lower fixed amount bid for the work from another qualified person, other than

a governmental entity, and pay the amount of the claim required in this section, based on the fixed amount in this bid upon completion of the work. The department is not required to com- ply with section 18.6 8A.311 in implementing this section.

Sec. 265. Section 474.1, unnumbered paragraph 2, Code 2003, is amended to read as fol- lows: The utilities board shall organize by appointing an executive secretary, who shall take the

same oath as themembers. The board shall set the salary of the executive secretary within the limits of the pay plan for exempt positions provided for in section 19A.9 8A.413, subsection 2, unless otherwise provided by the general assembly. The board may employ additional per- sonnel as it finds necessary. Subject to confirmation by the senate, the governor shall appoint a member as the chairperson of the board. The chairperson shall be the administrator of the utilities division. The appointment as chairperson shall be for a two-year term which begins and ends as provided in section 69.19.

Sec. 266. Section 474.10, Code 2003, is amended to read as follows: 474.10 GENERAL COUNSEL. The board shall employ a competent attorney to serve as its general counsel, and assistants

to the general counsel as it finds necessary for the full and efficient discharge of its duties. The general counsel is the attorney for, and legal advisor of, the board and is exempt from themerit system provisions of chapter 19A 8A, article 4. Assistants to the general counsel are subject to themerit systemprovisions of chapter 19A 8A, article 4. The general counsel or an assistant to the general counsel shall provide the necessary legal advice to the board in all matters and represent the board in all actions instituted in a state or federal court challenging the validity of a rule or order of the board. The existence of a factwhichdisqualifies a person fromelection or fromacting as a utilities boardmember disqualifies the person fromemployment as general counsel or assistant general counsel. The general counsel shall devote full time to the duties of the office. During employment the counsel shall not be a member of a political committee, contribute to a political campaign fund other than through the income tax checkoff for

412LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

contributions to the Iowaelection campaign fund and the presidential election campaign fund, participate in a political campaign, or be a candidate for a political office.

Sec. 267. Section 475A.3, subsection 2, Code 2003, is amended to read as follows: 2. EMPLOYEES. The consumer advocate may employ attorneys, legal assistants, secre-

taries, clerks, and other employees the consumer advocate finds necessary for the full and effi- cient discharge of the duties and responsibilities of the office. The consumer advocate may employ consultants as expert witnesses or technical advisors pursuant to contract as the con- sumer advocate finds necessary for the full and efficient discharge of the duties of the office. Employees of the consumer advocate division, other than the consumer advocate, are subject to merit employment, except as provided in section 19A.3 8A.412.

Sec. 268. Section 502.601, subsection 1, Code 2003, is amended to read as follows: 1. This chapter shall be administered by the commissioner of insurance of the state of Iowa.

The administrator shall appoint a deputy administrator who shall be exempt from the merit system provided for in chapter 19A 8A, article 4. The deputy administrator is the principal op- erations officer of the securities bureau and is responsible to the administrator for the routine administration of the chapter and the management of the securities bureau. In the absence of the administrator, whether because of vacancy in the office, by reason of absence, physical disability, or other cause, the deputy administrator shall be the acting administrator and shall, for the time being, have and exercise the authority conferred upon the administrator. The ad- ministrator may by order from time to time delegate to the deputy administrator any or all of the functions assigned to the administrator in this chapter. The administrator shall employ officers, attorneys, accountants, and other employees as needed for the administration of the chapter.

Sec. 269. Section 505.4, unnumbered paragraph 2, Code 2003, is amended to read as fol- lows: The commissioner may appoint a deputy commissioner for supervision whom the commis-

sioner may appoint as supervisory or special deputy pursuant to chapter 507C and who shall performsuchother duties asmaybe assignedby the commissioner. The deputy commissioner for supervision shall receivea salary tobe fixedby the commissioner. Thedeputy commission- er for supervision shall be an exempt employee from the merit system provisions of chapter 8A, article 4, under section 19A.3 8A.412, subsection 17.

Sec. 270. Section 507.5, Code 2003, is amended to read as follows: 507.5 CHIEF EXAMINER. The commissioner may appoint a chief examiner who shall supervise insurance company

examinations and perform such other duties as may be assigned by the commissioner. The chief examiner shall receive a salary tobe fixedby the commissioner. The chief examiner shall be anexempt employee from themerit systemprovisionsof chapter 8A, article 4, under section 19A.3 8A.412, subsection 17.

Sec. 271. Section 602.1204, subsection 3, Code 2003, is amended to read as follows: 3. The supreme court shall compile and publish all procedures and directives relating to the

supervision and administration of the internal affairs of the judicial branch, and shall distrib- ute a copy of the compilation and all amendments to each operating component of the judicial branch. Copies also shall be distributed to agencies referred to in section 18.97 upon request.

Sec. 272. Section 602.8102, subsection 58A, Code 2003, is amended to read as follows: 58A. Assist the department of revenue and finance administrative services in setting off

against debtors’ income tax refunds or rebates under section 421.17, subsection 25 8A.504, debtswhich are due, owing, and payable to the clerk of the district court as criminal fines, civil penalties, surcharges, or court costs.

413 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

Sec. 273. Section 602.8107, subsection 4, unnumbered paragraph 2, Code 2003, is amended to read as follows: This subsection does not apply to amounts collected for victim restitution, the victim com-

pensation fund, criminal penalty surcharge, law enforcement initiative surcharge, amounts collected as a result of procedures initiatedunder subsection5orunder section 421.17, subsec- tion 25 8A.504, or sheriff’s room and board fees.

Sec. 274. Section 618.11, Code 2003, is amended to read as follows: 618.11 FEES FOR PUBLICATION. The compensation, when not otherwise fixed, for the publication in a newspaper of any no-

tice, order, citation, or other publication required or allowed by law shall be at a rate of thirty- four cents for one insertion and twenty-three cents for each subsequent insertion for each line of eight point type two inches in length, or its equivalent. Beginning June 1, 2001, and each June 1 thereafter, the state printing administrator director of the department of administrative services shall calculate a new rate for the following fiscal year as prescribed in this section, and shall publish this rate as a notice in the Iowa administrative bulletin prior to the first day of the following calendarmonth. Thenew rate shall be effective on the first day of the calendar month following its publication. The rate shall be calculated by applying the percentage change in the consumer price index for all urban consumers for the last available twelve- month period published in the federal register by the federal department of labor, bureau of labor statistics, to the existing rate as an increase or decrease in the rate rounded to thenearest one-tenth of a cent. The calculation and publication of the rate by the state printing adminis- trator director of the department of administrative services shall be exempt from the provi- sions of chapters 17A and 25B.

Sec. 275. Section 625.29, subsection 1, paragraph g, Code 2003, is amended to read as fol- lows: g. The proceeding involved the department of personnel under administrative services un-

der chapter 19A 8A, article 4.

Sec. 276. Section 691.1, Code 2003, is amended to read as follows: 691.1 LABORATORY CREATED. There is hereby created under the control, direction and supervision of the commissioner

of public safety a state criminalistics laboratory. The commissioner of public safety may as- sign the criminalistics laboratory to a division or bureau within the public safety department. The laboratory shall, within its capabilities, conduct analyses, comparative studies, finger- print identification, firearms identification, questioned documents studies, and other studies normally performedby a criminalistics laboratorywhen requestedby a county attorney,medi- cal examiner, or law enforcement agency of this state to aid in any criminal investigation. Agents of the division of criminal investigation and bureau of identification may be assigned to the criminalistics laboratory by the commissioner. New employees shall be appointed pur- suant to chapter 19A 8A, article 4, and need not qualify as agents for the division of criminal investigationandbureauof identification, and shall not participate in thepeace officers’ retire- ment plan established pursuant to chapter 97A.

Sec. 277. Section 809A.17, subsection 4, Code 2003, is amended to read as follows: 4. Forfeited property which is not used by the department of justice in the enforcement of

the law may be requisitioned by the department of public safety or any law enforcement agency within the state for use in enforcing the criminal laws of this state. Forfeited property not requisitioned may be delivered to the director of the department of general services to be disposed of in the same manner as property received pursuant to section 18.15 8A.325.

Sec. 278. Section 904.108, subsection 1, paragraph e, Code 2003, is amended to read as fol- lows: e. Employ, assign, and reassign personnel as necessary for the performance of duties and

414LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

responsibilities assigned to thedepartment. Employees shall be selected on thebasis of fitness forwork to be performedwith due regard to trainingand experience and are subject to chapter 19A 8A, article 4.

Sec. 279. Section 904.108, subsection 3, Code 2003, is amended to read as follows: 3. The director may establish a sales bonus system for the sales representatives for prison

industry products. If a sales bonus system is established, the system shall not affect the status of the sales representatives under chapter 19A 8A, article 4.

Sec. 280. Section 904.303, unnumbered paragraph 1, Code 2003, is amended to read as fol- lows: The director shall determine the number and compensation of subordinate officers and em-

ployees for each institution subject to chapter 19A 8A, article 4. Subject to this chapter, the officers and employees shall be appointed and discharged by the superintendent who shall keep in the record of each subordinate officer and employee, the date of employment, the com- pensation, and the date of and the reasons for each discharge.

Sec. 281. Section 904.312B, Code 2003, is amended to read as follows: 904.312B PURCHASEOFBIO-BASEDHYDRAULICFLUIDS,GREASES,ANDOTHER IN-

DUSTRIAL LUBRICANTS. The department when purchasing hydraulic fluids, greases, and other industrial lubricants

shall give preference to purchasing bio-based hydraulic fluids, greases, and other industrial lubricants as provided in section 18.22 8A.316.

Sec. 282. Section 904.315, unnumbered paragraph 1, Code 2003, is amended to read as fol- lows: Thedirector of thedepartment of general administrative services shall, inwriting, let all con-

tracts for authorized improvements costing in excess of twenty-five thousand dollars under chapter 18 8A, article 3. Upon prior authorization by the director, improvements costing five thousand dollars or less may be made by the superintendent of any institution.

Sec. 283. Section 904.706, unnumbered paragraph 1, Code 2003, is amended to read as fol- lows: A revolving farm fund is created in the state treasury in which the department shall deposit

receipts from agricultural products, nursery stock, agricultural land rentals, and the sale of livestock. However, before any agricultural operation is phased out, the department which proposes to discontinue this operation shall notify the governor, chairpersons and ranking members of the house and senate appropriations committees, and cochairpersons and rank- ing members of the subcommittee in the senate and house of representatives which has han- dled the appropriation for this department in the past session of the general assembly. Before the department sells farmland under the control of the department, the director shall notify thegovernor, chairpersonsand rankingmembersof thehouseandsenate appropriations com- mittees, and cochairpersons and ranking members of the joint appropriations subcommittee that handled the appropriation for the department during the past session of the general as- sembly. The departmentmay pay from the fund for the operation,maintenance, and improve- ment of farmsandagricultural or nursery property under the control of thedepartment. Apur- chase order for five thousand dollars or less payable from the fund is exempt from the general purchasing requirements of chapter 18 8A, article 3. Notwithstanding section 8.33, unencum- bered or unobligated receipts in the revolving farm fund at the end of a fiscal year shall not revert to the general fund of the state.

Sec. 284. Section 904.808, subsection 1, paragraph b, Code 2003, is amended to read as fol- lows: b. When the state director releases, in writing, the obligation of the department or agency

to purchase the product from Iowa state industries, after determining that Iowa state indus-

415 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

tries is unable tomeet the performance characteristics of the purchase request for the product, and a copy of the release is attached to the request to the director of revenue and finance the department of administrative services for payment for a similar product, or when Iowa state industries is unable to furnish needed products, comparable in both quality and price to those available from alternative sources, within a reasonable length of time. Any disputes arising between a purchasing department or agency and Iowa state industries regarding similarity of products, or comparability of quality or price, or the availability of the product, shall be re- ferred to the director of the department of general administrative services, whose decision shall be subject to appeal as provided in section 18.7 8A.313. However, if the purchasing de- partment is the department of general administrative services, anymatter which would be re- ferred to the director under this paragraph shall be referred to the executive council in the same manner as if the matter were to be heard by the director of the department of general administrative services. The decision of the executive council is final.

Sec. 285. Section 904A.4B, subsection 3, Code 2003, is amended to read as follows: 3. Hire and supervise all of the board’s staff pursuant to the provisions of chapter 19A 8A,

article 4.

Sec. 286. AMENDMENTS CHANGING TERMINOLOGY — DIRECTIVE TO CODE EDI- TOR. Except as otherwise provided in this Act: 1. a. The Iowa Code editor is directed to strike the words “information technology depart-

ment” and insert the words “department of administrative services” wherever the words “in- formation technology department” appear in the Iowa Code unless a contrary intent is clearly evident. b. The IowaCodeeditor is directed to strike thewords “director of the information technolo-

gy department” or “information technology department director” and insert the words “direc- tor of the department of administrative services” wherever thewords “director of the informa- tion technology department” or “information technology department director” appear in the Iowa Code unless a contrary intent is clearly evident. 2. a. The Iowa Code editor is directed to strike the words “department of general services”

and insert thewords “department of administrative services”wherever thewords “department of general services” appear in the Iowa Code unless a contrary intent is clearly evident. b. The IowaCodeeditor is directed to strike thewords “director of thedepartment of general

services” or “general services department director” and insert the words “director of the de- partment of administrative services”wherever thewords “director of the department of gener- al services” or “general services department director” appear in the Iowa Code unless a con- trary intent is clearly evident. 3. a. The Iowa Code editor is directed to strike the words “department of personnel” and

insert the words “department of administrative services” wherever the words “department of personnel” appear in the Iowa Code unless a contrary intent is clearly evident. b. The IowaCodeeditor is directed to strike thewords “directorof thedepartment ofperson-

nel” or “personnel department director” and insert the words “director of the department of administrative services”wherever thewords “director of thedepartment of personnel” or “per- sonnel department director” appear in the Iowa Code unless a contrary intent is clearly evi- dent. 4. a. Sections 1.15, 2.10, subsection 4, 2.12, 2.13, 2B.10, subsection 4, 7.13, 7D.13, 7D.14,

8.35A, 11.20, 12.3, 12.4, 12.5, 12.6, 12.8, 12.15, 12.26, 12B.16, 12B.17, 12B.18, 15.354, 15E.112, 15E.117, 16.31, 17A.4, 25.2, 29C.14, 35.10, 49A.9, 53.50, 56.3A, 56.22, 56.23, 74.9, 96.7, subsec- tion 7, 96.9, 96.14, 97.51, 97A.8, 97A.11, 97B.7, 97B.33, 100B.11, 123.53, 152.3, 159.21, 159.23, 159A.7, 161.7, 161C.5, 169A.13A, 175.22, subsection 3, 179.5, 186.5, 218.50, 218.57, 218.86, 218.87, 225.22, 225.23, 225.28, 225.30, 225C.12, 227.7, 229.35, 233B.14, 234.6, 249.8, 251.5, 255.24, 255.26, 257B.11, 257B.18, 257B.35, 257B.37, 257B.39, 257B.40, 257B.42, 257C.9, sub- section 3, 261.4, 262.22, 262.29, 270.5, 270.6, 270.7, 272.11, 272C.7, 298.11, 304A.29, 310.7, 313.18, 313.19, 313.20, 313.28, 314.3, 315.7, 324A.5, 331.555, 452A.72, 455B.107, 455B.183A,

416LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

455B.246, 456A.19, 456A.21, 459.401, 459.501, 460.303, 473.11, 504A.63, 515.129, 518B.2, 518B.5, 524.209, 533.62, 534.403, 546.10, 568.16, 568.20, 568.24, 569.4, 602.1304, 602.9109, 641.5, 663.44, 679B.7, 820.24, and 904.311, Code 2003, are amended by striking from the appli- cable section or subsection the words “director of revenue and finance” and inserting in lieu thereof the following: “director of the department of administrative services”. b. Sections 2.49, subsection 5, 8.34, 8.61, 8D.13, subsection 11, 11.28, 12.6, 12.14, 12.28,

12B.2, 12B.17, 16.31, 16A.13, 22.7, subsection 32, 25.6, 74.9, 100B.11, 175.22, 179.5, 181.13, 183A.7, 184.13, 184A.4, 185.26, 185C.26, 252B.22, 255.24A, 256.12, 256.19, 256.20, 256D.4, 257.32, 257B.1B, 257C.9, subsection 4, 260C.18B, subsection 4, 260C.24, 282.28, 282.31, 283.1, 285.2, 294A.6, 294A.9, 294A.22, 303.14, 313.7, 405A.9, 455G.5, 541A.3, 541A.5, 602.8102, sub- section 4, 602.9104, 633.545, 804.28, and 904.507A, Code 2003, are amended by striking from the sections the words “department of revenue and finance” and inserting in lieu thereof the following: “department of administrative services”. c. Except as otherwise provided in this Act, the Iowa Code editor is directed to strike the

words “revenue and finance” and insert theword “revenue” wherever thewords “revenue and finance” appear in the Iowa Code and the reference to “revenue and finance” means the de- partment of revenueand financeor thedirector of revenueand financeunlessa contrary intent is clearly evident. 5. a. Except as otherwise provided in this Act, the Iowa Code editor is directed to strike the

words “division” and “division’s” and insert the words “system” and “system’s” wherever the words “division” and “division’s” appear in chapter 97B of the Iowa Code and the reference means the Iowa public employee’s retirement system division of the department of personnel unless a contrary intent is clearly evident. b. Except as otherwise provided in this Act, the Iowa Code editor is directed to strike the

word “system” and insert the words “retirement system” in the following sections wherever “system” but not “retirement system” appears in chapter 97B of the Iowa Code and the refer- ence means the retirement plan established under chapter 97B: Sections 97B.1A, subsections 3, 7, 9, 11, 14, 26; 97B.4; 97B.7A, subsection 1; 97B.8A, subsec-

tion 3, paragraph “b”, 97B.8A, subsections 4 and 5; 97B.8B; 97B.11; 97B.17; 97B.42A, subsec- tions 3, 4, and 5; 97B.49F; 97B.49G; 97B.49H; 97B.50; 97B.50A, subsections 2 and 3; 97B.52A, subsection 3; 97B.53, unnumbered paragraph 1; 97B.65; 97B.66; 97B.72; 97B.72A; 97B.73; 97B.73A; 97B.74; 97B.80; 97B.80A; 97B.80B; 97B.80C; 97B.81; 97B.82.

Sec. 287. ADMINISTRATIVE RULES — TRANSITION PROVISIONS. 1. Any rule, regulation, form, order, or directive promulgated by any state agency men-

tioned in this Act, including any agency abolished, merged, or altered in this Act, and in effect on the effective date of this Act shall continue in full force and effect until amended, repealed, or supplemented by affirmative action of the appropriate state agency under the duties and powers of state agencies as established in this Act and under the procedure established in sub- section 2. Any licenseorpermit issuedbyany state agencymentioned in thisAct, includinganyagency

abolished, merged, or altered in this Act, and in effect on the effective date of this Act shall continue in full force and effect until expiration or renewal. 2. In regard to updating references and format in the Iowa administrative code in order to

correspond to the restructuring of state government as established in this Act, the administra- tive rules coordinator and the administrative rules review committee, in consultation with the administrative code editor, shall jointly develop a schedule for the necessary updating of the Iowa administrative code.

Sec. 288. MISCELLANEOUS TRANSITION PROVISIONS. 1. Any personnel in the state merit system of employment who aremandatorily transferred

due to the effect of this Act shall be so transferred without any loss in salary, benefits, or ac- crued years of service.

417 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 145

2. Any funds in any account or fund of a department eliminated due to the effect of this Act shall be transferred to the comparable fund or account as provided by this Act. 3. Any cause of action or statute of limitation relating to a department or division trans-

ferred to another department or division as provided by this Act shall not be affected as a result of the transfer and such cause or statute of limitation shall apply to the successor department or division. 4. Any replacement of signs, logos, stationery, insignia, uniforms, and related items that is

made due to the effect of this Act should be done as part of the normal replacement cycle for such items.

Sec. 289. DEPARTMENT PROGRESS REPORTS. The department of administrative ser- vices shall report to the committees on government oversight of the senate and house of repre- sentatives onorbefore each July 31and January 31between July 1, 2003, andFebruary 1, 2006, regarding the activities of the department in implementing the requirements of this Act, in- cludingbut not limited to thedepartment’s decisions concerningwhich services should bepro- vided solely by thedepartment andwhich services should be available fromavariety of provid- ers.

Sec. 290. STATE ADMINISTRATIVE SERVICES — MISCELLANEOUS PROVISIONS. 1. As used in this section, unless the context otherwise requires: a. “Agency” or “state agency” means as defined in section 8A.101. “Agency” includes the

state board of regents subject to the requirements of section 8A.122. b. “Designated state service” means one of the following services provided to state agen-

cies: printing, information technology, mail, human resource benefits and payroll, financial accounting, property management, fleet management, and purchasing services. c. “Managed competition” means a process that allows both state agencies and other enti-

ties to submit competitive bids to provide designated state services, which process takes into account the true cost-accounting costs for state agencies. Managed competition may result in multiple providers, which may be state agencies or nongovernmental entities, of the same designated state service to state agencies. The use ofmanaged competition shall not preclude the use of other entrepreneurial steps in any area. 2. The following duties relating to state administrative services shall be performed, subject

to the requirements of chapter 8A, as provided by this subsection: a. (1) The department of administrative services shall, pursuant to the requirements of this

section, select a designated state service and conduct a pilot project todetermine the feasibility of conducting amanaged competition for delivery of the service and shall submit a report,with its findings and recommendations, to the legislative fiscal bureau and the committees on gov- ernment oversight of the senate and house of representatives by July 1, 2005. (2) In addition, the department of administrative services may, pursuant to the require-

ments of this section, determine how the designated state services of all executive branch agencies, community-based corrections districts, and other state governmental entities shall be delivered. b. By July 1, 2005, the department of administrative services shall submit a request for pro-

posals for amanaged competition for printing services unlessmore efficient results can be ob- tained through the use of other entrepreneurial methods as authorized by chapter 8A. The re- quest for proposals shall allow for the awarding of all or parts of printing services to the department or another governmental agency or nongovernmental entity. c. By September 1, 2004, the department of administrative services, with the assistance of

the department of management, shall conduct a comprehensive study of the impact of trans- ferring all state agency employees delivering information technology services to the depart- ment of administrative services and of the impact of physicallymerging the data centers of the department, the statedepartment of transportation, and thedepartment ofworkforcedevelop- ment, into one data center. The study shall include an assessment of advantages and disad- vantages, economies of scale, cost, and space availability, and shall solicit input from outside

418LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 145

vendors, both public and private. The department shall report to the legislative fiscal bureau and the committees on government oversight of the senate and house of representatives on the department’s findings and recommendations by November 1, 2004. d. The department of administrative servicesmay limit unified fleet management responsi-

bilities to cars and small trucks. By July 1, 2005, the fleetmanagement operations shall be sub- ject to amanaged competition process conductedby thedepartment of administrative services unlessmore efficient results canbeobtained through theuseof other entrepreneurialmethods as authorized by chapter 8A. The request for proposals shall allow for the awarding of all or parts of fleet management to the department of administrative services, other governmental agencies, or nongovernmental entities. 3. The auditor of state shall be consulted regarding the process for issuance of requests for

proposals for managed competition. The role of the auditor of state is to provide advice as to whether an approach offers the best opportunity for reducing state government costs.

Sec. 291. 1. Sections 7A.15, 7A.16, 7A.17, 7A.18, 7A.19, 7A.21, 7A.22, 7A.25, 7A.26, 7D.33, 218.89,

421.6, 421.31, 421.32, 421.33, 421.34, 421.35, 421.36, 421.37, 421.38, 421.39, 421.40, 421.41, 421.42, 421.43, 421.44, 421.45, Code 2003, are repealed. 2. Chapters 14B, 18, and 19A, Code 2003, are repealed.

Sec. 292. PREVAILING PROVISIONS. The provisions of House File 6365 relating to legis- lative branch consolidation of functions, or a similar bill enacted by the Eightieth General As- sembly, 2003 Regular Session, which provisions relate to official legal and other publications, procurements, special distribution of legal publications, and restrictions on free distributions by the legislative service bureau or its successor agency, shall prevail over any conflicting pro- visions of this Act.

Sec. 293. EFFECTIVEDATE. The sections of this Act amending sections 8.63 and 70A.38, and enacting section 8A.204, being deemed of immediate importance, take effect upon enact- ment.

Approved May 23, 2003

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CH. 146CH. 146

CHAPTER 146

WHOLE-GRADE SHARING AGREEMENTS BETWEEN PUBLIC SCHOOL DISTRICTS — DEADLINES — EXCEPTION

H.F. 577

AN ACT providing for a waiver of deadline requirements relating to whole-grade sharing agreements in specified school districts, and providing an effective date.

Be It Enacted by the General Assembly of the State of Iowa:

Section 1. WHOLE-GRADE SHARING AGREEMENT DEADLINE WAIVER. Notwith- standing sections 282.10 and 282.11, the department of education may, prior to July 1, 2003, and at the department’s discretion, waive any of the deadline requirements of sections 282.10 and 282.11, relating to the signing of a whole-grade sharing agreement by the boards of two

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5 Chapter 35 herein