Struck = removed from the bill ·
added = the amendment's new text.
KimHouse ReynoldsFile O1028 fS-3170 fAmend iHouse cFile e1028, oas famended, tpassed, hand ereprinted Gby othe vHouse, eas rfollows: n o r Chris C o u r n o y e r G O V E R N O R L T g o v e r n o r June02,2026 The Honorable Paul Pate SecretaryofStateofIowa StateCapitol Des Moines,Iowa50319 DearMr.Secretary, Iherebytransmit:
HouseFile1028,anActrelatingtomattersunderthepurviewofthedepartmentof1. management,makingappropriations,andincludingapplicabilityprovisions.
TheBy aboveHouseFileisherebyapprovedonthisdate.striking everything after the enacting clause and inserting:
binceriy,<Section Kirh^eynold^1. Govemor ofIowa cc:
SecretaryoftheSenateSection Clerk8.57C, ofsubsections the2, House3, STATEand CAPITOL4, DESCode MOINES,2025, IOWAare 50319amended 515.281.5211WWW.GOVERNOR.IOWA.GOVto Rread RIGas iiiHMiuiiiiiiiiiiiiiirfiuiiiimninininiirnniMUiKHMfollows: « s uiiuiru::! E N K R A I .
A S S E M B L Y liiiiiiHgmiiiiiiimniiiH!:iHHmiiiiiiimMiimiNa»iiHmiKiiiniHmniiiniiiiiiiiiiiiiiiiHHiHiiiiEEiini9i!miiiH!iiKmiimii[HiiiiiiiHiiiHimiiiniHHiii»iiiiiiiiiiHiiiiii!ni H o u s e F i l e 1 0 2 8 A NA C T R E L A T I N G T O M A T T E R S U N D E RO F T H E D E P A R T M E N T O F M A N A G E M E N TI N C L U DE F F E C T I V EA N D A P P L I C A B I L I T Y P R O V I S I O N S .
B E IT E N A C T E D BY T H E G E N E R A L A S S E M B L Y O F T H E S T A T E O F I O W A :
Section 1.
Section 8.39r subsection 2, Code 2026, is amended t oread a s f o l l o w s :
IfMoneys in the appropriationfund ofin a department,fiscal institution,year orshall agencybe isused insufficientas toappropriated properlyby meet the legitimategeneral expensesassembly offor the department,acquisition institution,of orcomputer agency,hardware theand directorsoftware, ofsoftware thedevelopment, departmenttelecommunications ofequipment, management,and maintenance and lease agreements associated with technology components and for the approvalpurchase of theequipment governor,intended mayto makeprovide an interdepartmentaluninterruptible transferpower fromsupply anyto otherthe department,department institution,of ormanagement agencyto provide a stable funding source for implementation costs of state information technology projects that enhance the statestate’s havingtechnology aninfrastructure, appropriationimprove ingovernment excessservices, ofand itspromote needs,innovation ofand sufficienteconomic fundsdevelopment, moneysincluding but not limited to meetnew thatinformation deficiency.technology projects and infrastructure replacement efforts of a department or establishment.
Such transfer shall be to an appropriation made from the same funding source and within the same fiscal year.
The amount of a transfer made from an appropriation under this subsection shall be limited to not more than one-tenth of one percent of the total of all House File 1028, p.
2 appropriations made from the funding source of the transferred appropriation for the fiscal year in which the transfer is made.
An interdepartmental transfer to an appropriation which is not an entitlement appropriation is not authorized when the general assembly is in regular session and, in addition, the sum of interdepartmental transfers in a fiscal year to an appropriation which is not an entitlement appropriation shall not exceed fifty one hundred percent of the amount of the appropriation as enacted by the general assembly.
For the purposes of this subsectionT—an entitlement appropriation—ie:
^Appropriation in excess of its needs" means the amount appropriated by the general assembly for a purpose is determined by the department, institution, or agency receiving the appropriation to be more than the amount necessary to carry out that purpose.
An appropriation for an unspecified dollar amount, whether the appropriation is limited to be sufficient to carry out a particular purpose or is unlimited, shall not be considered an appropriation in excess of a department's, institution's, or agency^s needs.
b, '^'^Entitlement appropriation*^ means a line item appropriation to the state public defender for indigent defense or to the department of health and human services for foster care, state supplementary assistance, medical assistance, or for the family investment program.
Sec.
2.
Section 8.57C, subsections 2, 3, and 4, Code 2026, a r e amendedto read a s follows:
2.
Moneys in the fund in a fiscal year shall be used as appropriated by the general assembly for the acquisition of computer hardware and software,—software dovclopmont, tGlecommunications equipment,—and maintenance and lease agreements associated with technology components and for the purchase—of—equipment—i-ntended—to provide—an uninterruptible power supply to the department of management to provide a stable funding source for implementation costs of state information technology projects that enhance the state's technology infrastructure, improve government services, and promote innovation and economic development, including but not limited to new information technology projects and infrastructure replacement efforts of a department or House File 1028, p.
3 establishment, while protecting the privacy of residents of t h i s s t a t e .
•3"!—&-i—There is appropriated from the general fund of the state to the technology reinvestment fund for the fiscal year beginning July 1,—2026,—and for—each fiscal year—thereafter, the sum of seventeen million five hundred thousand dollars.
^ — T h e r e is appropriated from the rebuild Iowa infrastructure fund for the fiscal year beginning July 1^ 2025, and ending June 30,—2026,—the sum of eighteen million two hundred sixty nine thousand two hundred seventeen dollars to the technology reinvestment fund, notwithstanding section 8.57, subsection 3, paragraph 3.
The department of management shall prioritize proposed projects based on all of the following considerations;considerations:
(1) Whether the project aligns with the statersstate’s strategic priorities.
((3) 3Whether )Whether the project is feasible and whether the department or establishment has established readiness for the project to proceed, including a clear assessment of timelines, budgets, and measurable outcomes.
(5) Whether the project provides a positive return on HF 1028.1831 (1) 91 -1- sc/ns 1/14 investment, considering both financial returns and nonfinancial benefits such as improved public safety, education, or health ccare. a r e .
((6) 6Whether )Whether the project results in infrastructure that is scalable across the state enterprise.
((7) 7Whether )Whether the department or establishment has identified how the completed project will be sustained beyond the initial funding period.
(9) Whether the project involves an infrastructure project as opposed to maintenance or standard upgrades of existing House File 1028, p, 4 technology.
The department of management shall provide a prioritized list of proposed projects for funding to the governor, who shall use the list in developing a budgetary recommendation for the general assembly pursuant to section 8,218.21 for the fiscal year beginning July 1, 2027,2026, and for each fiscal year tthereafter. h e r e a f t e r » c» Notwithstanding section 8.33, moneys in the technology reinvestment fund that remain unencumbered or unobligated at the close of a fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the fiscal year that ends two years after the end of the fiscal year for which the appropriation was made.
3.
a.
There is appropriated from the general fund of the state to the technology reinvestment fund for the fiscal year beginning July 1, 2025, and for each subsequent fiscal year thereafter, the sum of seventeen million five hundred thousand dollars.
b.
There is appropriated from the rebuild Iowa infrastructure fund for the fiscal year beginning July 1, 2023, and ending June 30, 2024, the sum of eighteen million three hundred ninety thousand two hundred ninety dollars to the technology reinvestment fund, notwithstanding section 8.57, subsection 3 , paragraph “c”.
c.
There is appropriated from the rebuild Iowa infrastructure fund for the fiscal year beginning July 1, 2024, and ending June 30, 2025, the sum of twenty-one million one hundred thirty-one thousand eight hundred seventy-three dollars to the technology reinvestment fund, notwithstanding section HF 1028.1831 (1) 91 -2- sc/ns 2/14 8.57, subsection 3, paragraph “c”.
c.
Notwithstanding section 8.33, moneys in the technology reinvestment fund that remain unencumbered or unobligated at the close of a fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the fiscal year that ends two years after the end of the fiscal year for which the appropriation was made.
Annually/—eaAnnually, on On or before January 15 of each year, a otatostate agency that rocoivGdreceived an appropriation from this fund the department of management shall report to the legislative oervicGSservices agency and the department of management general assembly the status of all projects funded under this section that have been completed since the previous report was submitted or that are in progress.
3.2.
Section 8.78, Code 2026,2025, is amended to read as ffollows: o l l o w s :
In addition, a contractor, vendor, employee, or Houseany Fileother 1028,individual p.performing work for the department, or an individual on the information technology staff of a supported HF 1028.1831 (1) 91 -3- sc/ns 3/14 entity, may be subject to a national criminal history check through the federal bureau of investigation at least once every ten five years, including, without limitation, any time the department or supported entity has reason to believe an individual has been convicted of a crime.
5The anydepartment othermay individualrequest performing work for the department, or an individual on the information technology staff of a supported entity, may be subject to a national criminal history check throughand, theif federalrequested, bureaushall ofprovide investigationthe atindividual’s leastfingerprints onceto everythe -tettdepartment fiveof years,public including,safety withoutfor limitation,submission anythrough time the departmentstate orcriminal supportedhistory entityrepository has reason to believethe anfederal individualbureau has been convicted of ainvestigation. crime.
The department may request the national criminal history check and, if requested, shall provide the individual's fingerprints to the department of public safety for submission through the state criminal history repository to the federal bureau of investigation.
4.3.
8.94 Contracts —prohibited—— prohibited terms.
A provision requiring the department or a supported entity to defend, indemnify, hold harmless another person, or otherwise assume the debt or liability of another person in violation of Article VII, section 1, of the Constitution of the SState tof aIowa. o fI o w a .
HF 1028.1831 (1) 91 -4- sc/ns 4/14 3.
A provision that violates chapter 13 by not allowing the department or a supported entity to participate in its own Housedefense Filethrough 1028,representation p.by the attorney general.
6 defense through representation by the attorney general.
A provision that grants to a person other than the attorney general the authority to convey to a court or litigant the state'sstate’s consent to any settlement of a suit involving the contract when such settlement could impose liability on the sstate. t a t e .
A provision that claims blanket confidentiality of the contract'scontract’s terms.
A provision that waives the department'sdepartment’s or a supported entity'sentity’s right to a jury trial.
A provision that obligates the department or a supported entity to pay late payment charges not consistent with section 8A.514, interest greater than allowed under section 8A.514 or other applicable law, or any cancellation charges, as such charges constitute pledges of the state'sstate’s credit.
A provision that imposes a prior notice obligation HF 1028.1831 (1) 91 -5- sc/ns 5/14 on the department or a supported entity as a condition for the automatic renewal of a software license.
A provision that obligates the department or a supported Houseentity Pileto 1028,accept p.risk of loss before the receipt of items or goods.
7 entity to accept risk of loss before the receipt of items or goods.
A boilerplate provision included in transactional documents received by the department or a supported entity that seeks to alter the terms of the contract or to impose new terms in tthe hcontract. e c o n t r a c t .
5.4.
8.95 Contracts ——— required terms.
All of the following provisions shall be deemed to be included in a contract entered into by the department or a supported entity under this subchapter;subchapter:
The contract shall be governed by the laws of the state of Iowa, without giving effect to any conflicts of law principles of Iowa law that may require the application of another jurisdiction'sjurisdiction’s law.
3.
State data, ^State data^' means all data, records, information, or content, in any form, that is provided by a state governmental entity to a vendor or that is collected, generated, or otherwise obtained by the vendor in the course of providing a good or service to the state governmental entity.
'^State data" does not include aggregated or deidentified data collected by the vendor and used exclusively for the vendor's internal purposes directly related to evaluating or improving system performance, ensuring reliability, evaluating product functionality, conducting system analytics, projecting needs through capacity planning, ensuring license compliance, or evaluating security.
State data shall at all times remain the House File 1028, p.
8 sole and exclusive property of the state, and the vendor shall use state data only as necessary to provide the contracted services to the state.
Upon request, the vendor shall provide the state, at no cost, a current copy of all state data in a commercially reasonable and state-acceptable digital format that enables the state to readily use, transfer, or migrate the state data.
Except to the extent retention of state data is required by law, grant, or other governmental requirement, the vendor shall, after confirming that the state has received a copy of the state data, permanently delete all state data within a commercially reasonable period of time after the conclusion or termination of the contract.
At all times, including any post-contract period in which state data is retained due to record retention obligations, the vendor shall protect state data in accordance with current state data protection policies.
65. .
8.96 Contracts ——— limitation oof f liability ——— prohibited terms.
HF 1028.1831 (1) 91 -6- sc/ns 6/14 Notwithstanding section 8A.311, subsection 22, and rules adopted pursuant to that subsection, the director may include a contractual limitation of vendor liability in information technology goods and services contracts.
Any portion of a contractual limitation of vendor liability that includes a repudiation of all liability for cybersecurity incidents or a limitation on the vendor'svendor’s liability for intentional torts, criminal acts, fraudulent conduct, intentional or willful misconduct, gross negligence, death, bodily injury, damage to real or personal property, intellectual property violations, liquidated damages, compliance with applicable laws, violations of confidential information obligations, or contractual obligations of the vendor pertaining to indemnification shall be void as a matter of law as contrary to public policy.
A contractual limit of vendor liability that does not apply equally to the contracted parties or that limits a vendor'svendor’s liability to less than the contract value inclusive of all possible extensions is void as a matter of law as contrary to Housepublic Filepolicy. 1028, p.
9 public policy.
7.6.
Notwithstanding chapter 22 or any other provision of law to the contrary, the department shall not release such communications pursuant to state open records laws, and such communications shall not be received into evidence, subject to discovery, or otherwise used in a trial, hearing, or other proceeding in or before any court, regulatory body, or other authority of the state or a HF 1028.1831 (1) 91 -7- sc/ns 7/14 political subdivision of the state, unless the communications are subject to a protective order that prohibits further disclosure of such communications and requires any court filings of such communications to be made under seal.
Identifying a cybersecurity threat, including the source of the cybersecurity threat, or a security vulnerability, and then only to government officials for purposes of addressing tthe hthreat. t h r e a t .
Responding to, or otherwise preventing or mitigating, a specific threat of death, serious bodily harm, or serious eeconomic charm. o n oh a r m .
Preventing, investigating, disrupting, or prosecuting an ooffense funder fstate eor ufederal nlaw. d es t a oref e d e r a l l a w .
8.7.
House1. File 1028, p.
10 1.
Notwithstanding any other provision of state law to the contrary, unless prohibited by federal law or regulation, the department shall be granted access, for purposes of research and evaluation, to all of HF 1028.1831 (1) 91 -8- sc/ns 8/14 the data listed in this subsection, except that intelligence data and peace officer investigative reports maintained by the department of public safety shall not be considered data for the purposes of this section.
Child abuse information under sections 235A.15 through 3235A.19. 5 A .
1c. 9 .
c» Dependent adult abuse records maintained under chapter 3235B. 5 B .
<3»d. Criminal history data maintained under chapter 692.
Criminal history data maintained under chapter 692.
Presentence investigation reports maintained under ssection e901.4. c t 9 0 1 .
4 .
Corrections records maintained under sections 904.601 and 0904.602. 4 .
6 0 2 .
Housek. File 1028, p.
11 k.
i.l.
The department is authorized to provide data analysis and HF 1028.1831 (1) 91 -9- sc/ns 9/14 reporting on issues that may affect the state'sstate’s correctional population and various subgroups of the population.
This reporting may include the review of filed, public legislative bills, joint resolutions, and amendments, and compiling criminal justice data for completion of correctional impact statements under section 2.56, minorityracial impact statements, and an annual prison population forecast.
HouseSec. Pile 1028, p.
128. Sec.
9.
For purposes of chapter 22, the department shall not be HF 1028.1831 (1) 91 -10- sc/ns 10/14 deemed to be the lawful custodian of records the department maintains for another department or establishment under this subchapter, to the extent the records in question are held by the department as an automated data processing unit of government or held by the department solely for storage for another department or establishment.
Such records include but are not limited to all of the following;following:
bb. .
MMainframe adata. i n f r a m e d a t a .
If the department receives a request pursuant to chapter 22 for records over which the department has determined it is not the lawful custodian, the department shall deny the request and inform the requester to seek the information from the lawful custodian as provided in chapter 22.
The department'sdepartment’s determination that it is not the lawful custodian of records is presumed valid.
The department shall provide assistance to the lawful custodian of records held by the department so that the lawful custodian can comply with the production obligations of chapter 222. .
If the department receives a subpoena in an administrative, civil, or criminal case for records for which the department is not the lawful custodian, the department shall notify the lawful custodian and the attorney general'sgeneral’s office and cooperate in any efforts to resist the subpoena.
10.9.
Section 216A.131A, Code 2026,2025, is amended to read aas sffollows: o l l o w s :
The department shall fulfill the responsibilities of this subchapter, including the duties specified in sections 216A.133, 216A.135, 216A.136, 216A.137^216A.137, 216A.130,216A.138, and 216A.140.
10.
Section 216A.133, subsection 1, paragraphs d, e, f, HF 1028.1831 (1) 91 -11- sc/ns 11/14 l, and t, Code 2025, are amended by striking the paragraphs.
Sec.
Section 216A.133, subsection 1, paragraphsparagraph d,q, e,subparagraphs f,(1) 1, and t.(6), Code 2025, are amended by striking the subparagraphs.
Code 2026, are amended by striking the paragraphs.
Section 216A.133, subsection 1, paragraph q.s, Code 2025, is amended to read as follows:
Houses. File 1028, p.
13Provide subparagraphsexpertise (1) and (6),advice Codeto 2026,the arelegislative amendedservices byagency, strikingthe department of management, the subparagraphs.department of corrections, the judicial branch, and others charged with formulating fiscal, correctional, or minority impact statements.
Section 216A.133,216A.135, subsection 1,2, paragraph s.e, Code 2025, is amended by striking the paragraph.
Code 2026, is amended to read as follows:
s.
Provide expertise and advice to the legislative services agency, the department of management, the department of corrections, the judicial branch, and others charged with formulating fiscal, correctional, or minority impact s t a t e m e n t s .
Section 216A.135,232.147, subsection 2, paragraph e.i, Code 2025, is amended to read as follows:
Codei. 2026, is amended by striking the paragraph.
The statistical analysis center for the purposes stated in section 216A.136 8.98.
Section 232.147, subsection 2,3, paragraph i.n, Code 2025, is amended to read as follows:
Coden. 2026, is amended to read as follows:
i.The statistical analysis center for the purposes stated in section 216A.136 8.98.
The statistical analysis center for the purposes stated in s e c t i2 1 6 A .
1 3 6 8 .
9 8 .
Section 232.147, subsection 3,4, paragraph n.i, Code 2025, is amended to read as follows:
Codei. 2026, is amended to read as follows:
n.The statistical analysis center for the purposes stated in section 216A.136 8.98.
The statistical analysis center for the purposes stated in s e c t i2 1 6 A .
1 3 6 8 .
9 8 .
Section 232.147,232.149, subsection 4,5, paragraph i.f, Code 2025, is amended to read as follows:
Codef. 2026, is amended to read as follows:
i.The statistical analysis center for the purposes stated in section 216A.136 8.98.
The statistical analysis center for the purposes stated i n s e c t 2 1 6 A .
1 3 6 8 .
9 8 .
Section 232.149,232.149A, subsection 5,3, paragraph f.m, Code 2025, is amended to read as follows:
Codem. 2026, is amended to read as follows:
f.The statistical analysis center for the purposes stated in section 216A.136 8.98.
The statistical analysis center for the purposes stated in s e c t i2 1 6 A .
1 3 6 8 .
9 8 .
Section 232.149A,513C.10, subsection 3,1, paragraph m.a, Code 2025, is amended to read as follows:
CodeHF 2026,1028.1831 is(1) amended91 to-12- readsc/ns as12/14 follows:a.
m.All persons that provide health benefit plans in this state including insurers providing accident and sickness insurance under chapter 509, 514, or 514A, whether on an individual or group basis;
Thefraternal statisticalbenefit analysissocieties centerproviding forhospital, themedical, purposesor statednursing inbenefits sunder echapter c512B; t i2 1 6 A .
1and 3health 6maintenance 8organizations, .other entities providing health insurance or health benefits subject to state insurance regulation, and all other insurers as designated by the board of directors of the Iowa comprehensive health insurance association with the approval of the commissioner shall be members of the association.
9However, 8the .state, including an institution under the control of the state board of regents, shall not be a member of the association.
Sections 216A.136, 216A.137, and 216A.138, Code 2026,2025, are repealed.
The followingfollowing, takebeing effectdeemed Julyof 1,immediate 0importance, 2takes 7effect :upon enactment:
The portions of the section of this Act amending section 8.57C,513C.10, subsectionssubsection 21, andparagraph 4.“a”.
EFFECTIVE DATE.
The following take effect July 1, 2026:
The portions of the section of this Act amending section 8.57C, subsections 2 and 4.
Sec.
23.
The following apply to contracts entered into or renewed on or after July 1, 2026:2025:
House1. File 1028, p.
14 1.
ifUiSec. P A G R A S S L ] AMY SINC^IR Speaker o^the House President o f the Senate I hereby certify that this bill originated in the House and is known as House File 1028, Ninety-first General Assembly.
MEG24. ^NN ELSON ChreflClerk q ^ t h e House Approved , 2026 K I R £ » N O L D S G o v e r n o r
RETROACTIVE APPLICABILITY.
The following applies retroactively to January 1, 2020:
The section of this Act amending section 513C.10, subsection 1, paragraph “a”.> 2.
Title page, by striking lines 1 through 2 and inserting <An Act relating to state government, including matters under the purview of the department of management and state HF 1028.1831 (1) 91 -13- sc/ns 13/14 membership in the Iowa individual health benefit reinsurance association, and including effective date, applicability, and retroactive> ______________________________ MIKE BOUSSELOT HF 1028.1831 (1) 91 -14- sc/ns 14/14