Bill Text: IA SSB3174 | 2013-2014 | 85th General Assembly | Introduced

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Bill Title: A study bill for an act concerning government accountability and concerning service contract requirements.

Spectrum: Unknown

Status: (N/A - Dead) 2014-02-12 - In State Government [SSB3174 Detail]

Download: Iowa-2013-SSB3174-Introduced.html

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Senate Study Bill 3174 - Introduced
SENATE FILE _____
BY (PROPOSED COMMITTEE ON
STATE GOVERNMENT BILL BY
CHAIRPERSON DANIELSON)
A BILL FOR
An Act concerning government accountability and concerning
service contract requirements.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. Section 8.47, subsection 1, unnumbered paragraph
1, Code 2014, is amended to read as follows:
The department of administrative services, in cooperation
with the office of attorney general and the department of
management, shall adopt uniform terms and conditions for
service contracts executed by a department or establishment
benefiting from service contracts which terms and conditions
shall be consistent with the contractual requirements of
chapter 8F . The terms and conditions shall include but are not
limited to all of the following:
Sec. 2. Section 8F.3, subsection 3, Code 2014, is amended
to read as follows:
3. Prior to entering into a service contract with a
recipient entity, the oversight agency shall determine do all
of the following:
a. Determine whether the recipient entity can reasonably
be expected to comply with the requirements of the service
contract. If the oversight entity is unable to determine
whether the recipient entity can reasonably be expected
to comply with the requirements of the service contract,
the oversight entity shall request such information from
the recipient entity as described in subsection 1 to make
a determination. If the oversight agency determines from
the information provided that the recipient entity cannot
reasonably be expected to comply with the requirements of the
service contract, the oversight agency shall not enter into the
service contract.
b. Perform a cost comparison establishing whether the
contract costs from the proposed service contract are less
than the costs of having the services provided by an agency.
Contract costs shall include direct costs, including salaries
and fringe benefits, indirect overhead costs, including the
contractor’s proportional share of existing administrative
salaries and benefits, rent and equipment costs, utilities,
and materials. Additionally, transition costs, including
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unemployment compensation, shall be included in the analysis of
contract costs. If the oversight agency determines from the
information provided that the contract costs of the recipient
entity are not less than the costs of having the services
provided by an agency, the oversight agency shall not enter
into the service contract.
c. If the proposed service contract may result in reduced
public employment by an agency in an area, perform an
economic impact analysis to consider the impact of the service
contract on the possible loss of employment or income in the
affected area, impact on social services to include public
assistance programs, economic impact on local businesses, any
possible changes in tax revenue for the affected area, and
any environmental impacts that may result from the service
contract.
Sec. 3. Section 8F.3, Code 2014, is amended by adding the
following new subsection:
NEW SUBSECTION . 4. A service contract with a recipient
entity shall include the following terms and conditions:
a. Specific performance criteria and cost parameters with
termination provisions for failure to meet the performance
criteria and cost parameters.
b. A requirement that the compensation paid to employees
of a recipient entity pursuant to the service contract shall
be comparable to the compensation paid to public employees
performing similar work or the average private sector wage for
similar work, whichever is less.
c. A provision prohibiting the automatic renewal of
the terms of a service contract without complying with the
requirements of this section prior to renewing the service
contract.
d. A provision prohibiting the payment for services under
the service contract regardless of whether the services are
actually provided.
Sec. 4. Section 8F.4, Code 2014, is amended by adding the
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following new subsection:
NEW SUBSECTION . 4. An oversight agency shall make
information described in section 8F.3, subsection 3, paragraphs
“b” and “c” , and information required to be reported by a
recipient agency pursuant to this section available to the
public.
Sec. 5. Section 8G.3, subsection 3, paragraph a, Code 2014,
is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH . (10) A recipient entity as defined in
section 8F.2.
Sec. 6. Section 8G.4, subsection 2, Code 2014, is amended by
adding the following new paragraph:
NEW PARAGRAPH . 0j. Information required to be provided
pursuant to chapter 8F.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill concerns service contracts entered into by a
government entity.
Code section 8.47, concerning service contracts entered into
by a state executive branch department, is amended to provide
that the standard terms and conditions of a service contract
shall be consistent with the contractual requirements of Code
chapter 8F.
Code chapter 8F, establishing accountability requirements
for certain service contracts, is amended. “Service contract”
is defined by the Code chapter as a contract between a
government entity, called an oversight agency, and a private
or other intergovernmental entity, called a recipient entity,
where federal or state moneys are involved for a service or
services when the predominant factor, thrust, and purpose of
the contract as reasonably stated is for the provision of
services.
Code section 8F.3, subsection 3, concerning contractual
requirements for service contracts, is amended to require an
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oversight agency to perform a cost comparison and an economic
impact analysis prior to entering into a service contract.
The cost comparison requires a determination that a service
contract will result in lower contract costs than having the
services provided by state government. The economic impact
analysis concerns a determination of the impact on employment,
economic activity, and public assistance if public employment
in a particular area are reduced pursuant to a service
contract.
Code section 8F.3 is further amended to require a service
contract to include performance criteria, provisions governing
compensation paid to employees of a recipient entity,
provisions prohibiting automatic renewal of a service contract,
and provisions prohibiting payment regardless of whether the
services are actually provided.
Code section 8F.4, concerning reporting requirements,
is amended to require an oversight agency to make certain
information described in Code section 8F.3, subsection 3, and
information required to be reported by a recipient agency
pursuant to this Code section available to the public.
Code chapter 8G, establishing the taxpayer transparency
Act, is amended to specifically include recipient entities,
as defined in Code chapter 8F, within the definition of
“entity” for purposes of the Code chapter. Code section
8G.4, concerning the creation of a searchable budget database
internet site, is amended to require that information required
to be provided pursuant to Code chapter 8F be included on the
site.
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