H.F. _____ Section 1. Section 17A.4, subsection 3, Code 2013, is 1 amended to read as follows: 2 3. a. When an agency for good cause finds that notice and 3 public participation would be unnecessary, impracticable, or 4 contrary to the public interest When the statute so provides, 5 or with the approval of the administrative rules review 6 committee, if the committee finds good cause that notice and 7 public participation would be unnecessary, impracticable, or 8 contrary to the public interest , the provisions of subsection 1 9 shall be inapplicable. The agency shall incorporate in each 10 rule issued in reliance upon this provision either the finding 11 and a brief statement of the reasons for the finding, or a 12 statement that the rule is within a very narrowly tailored 13 category of rules whose issuance has previously been exempted 14 from subsection 1 by a special rule relying on this provision 15 and including such a finding and statement of reasons for the 16 entire category. 17 b. (1) If the administrative rules review committee by 18 a two-thirds vote, the governor, or the attorney general 19 files with the administrative code editor an objection to the 20 adoption of any a rule or portion of a rule pursuant to this 21 subsection , that the rule or portion of the rule shall cease 22 to be effective one hundred eighty days after the date the 23 objection was filed. A 24 (2) If the administrative rules review committee files with 25 the administrative code editor an objection to the adoption of 26 a rule or portion of a rule pursuant to this subsection, the 27 administrative rules review committee, by a separate two-thirds 28 vote, may suspend the applicability of the rule or portion 29 of the rule until the rule ceases to be effective under this 30 paragraph “b” . The determination to suspend the applicability 31 of the rule or portion of the rule shall be included in the copy 32 of the objection to be forwarded to the agency. 33 c. If an objection to a rule is filed under this subsection, 34 a copy of the objection, properly dated, shall be forwarded to 35 -1- LSB 2491YC (2) 85 jr/rj 1/ 6

H.F. _____ the agency at the time of filing the objection. In any action 1 contesting a rule or portion of a rule adopted pursuant to 2 this subsection , the burden of proof shall be on the agency to 3 show that the procedures of subsection 1 were impracticable, 4 unnecessary, or contrary to the public interest and that, if a 5 category of rules was involved, the category was very narrowly 6 tailored. 7 Sec. 2. Section 17A.4, subsection 7, Code 2013, is amended 8 to read as follows: 9 7. a. Upon the vote of two-thirds of its members the 10 administrative rules review committee may delay the effective 11 date of a rule or portion of a rule seventy days beyond that 12 permitted in section 17A.5 , unless the rule was promulgated 13 under section 17A.5, subsection 2 , paragraph “b” . This 14 provision shall be utilized by the committee only if further 15 time is necessary to study and examine the rule. If the 16 rule was promulgated under section 17A.5, subsection 2, 17 paragraph “b” , the administrative rules review committee, 18 within thirty-five days of the effective date of the rule and 19 upon the vote of two-thirds of its members, may suspend the 20 applicability of the rule or portion of the rule for seventy 21 days. 22 b. Notice of an effective date that was delayed under this 23 provision shall be published in the Iowa administrative code 24 and bulletin. 25 Sec. 3. Section 17A.4, Code 2013, is amended by adding the 26 following new subsection: 27 NEW SUBSECTION . 9. Upon the vote of two-thirds of its 28 members, the administrative rules review committee, following 29 notice of intended action as provided in subsection 1 and prior 30 to adoption of a rule pursuant to that notice, may suspend 31 further action relating to that notice for seventy days. 32 Notice of a notice of intended action that was suspended under 33 this provision shall be published in the Iowa administrative 34 code and bulletin. 35 -2- LSB 2491YC (2) 85 jr/rj 2/ 6

H.F. _____ Sec. 4. Section 17A.8, subsection 9, Code 2013, is amended 1 to read as follows: 2 9. a. Upon a vote of two-thirds of its members, the 3 administrative rules review committee may delay the effective 4 date of a rule or portion of a rule until the adjournment 5 of the next regular session of the general assembly , unless 6 the rule was promulgated under section 17A.5, subsection 2, 7 paragraph “b” . If the rule was promulgated under section 8 17A.5, subsection 2, paragraph “b” , the administrative rules 9 review committee, within thirty-five days of the effective date 10 of the rule and upon the vote of two-thirds of its members, 11 may suspend the applicability of the rule or portion of the 12 rule until the adjournment of the next regular session of the 13 general assembly. 14 b. The committee shall refer a rule or portion of a rule 15 whose effective date has been delayed or applicability has 16 been suspended to the speaker of the house of representatives 17 and the president of the senate who shall refer the delayed 18 or suspended rule or portion of the rule to the appropriate 19 standing committees of the general assembly. A standing 20 committee shall review a the rule within twenty-one days 21 after the rule is referred to the committee by the speaker 22 of the house of representatives or the president of the 23 senate and shall take formal committee action by sponsoring 24 a joint resolution to disapprove the rule, by proposing 25 legislation relating to the rule, or by refusing to propose 26 a joint resolution or legislation concerning the rule. The 27 standing committee shall inform the administrative rules review 28 committee of the committee action taken concerning the rule. 29 If the general assembly has not disapproved of the rule by a 30 joint resolution, the rule shall become effective. The speaker 31 of the house of representatives and the president of the senate 32 shall notify the administrative code editor of the final 33 disposition of each rule or portion of a rule whose effective 34 date has been delayed or whose applicability has been suspended 35 -3- LSB 2491YC (2) 85 jr/rj 3/ 6

H.F. _____ pursuant to this subsection . If a the rule is disapproved, it 1 the rule shall not become be effective and the agency shall 2 rescind the rule. This section shall not apply to rules made 3 effective under section 17A.5, subsection 2 , paragraph “b” . 4 Sec. 5. Section 17A.23, Code 2013, is amended to read as 5 follows: 6 17A.23 Construction —— delegation of authority . 7 1. Except as expressly provided otherwise by this chapter 8 or by another statute referring to this chapter by name, the 9 rights created and the requirements imposed by this chapter 10 shall be in addition to those created or imposed by every other 11 statute in existence on July 1, 1975, or enacted after that 12 date. If any other statute in existence on July 1, 1975, or 13 enacted after that date diminishes a right conferred upon a 14 person by this chapter or diminishes a requirement imposed upon 15 an agency by this chapter , this chapter shall take precedence 16 unless the other statute expressly provides that it shall take 17 precedence over all or some specified portion of this named 18 cited chapter. 19 2. This chapter shall be construed broadly to effectuate 20 its purposes. This chapter shall also be construed to apply 21 to all agencies not expressly exempted by this chapter or by 22 another statute specifically referring to this chapter by name 23 citation ; and except as to proceedings in process on July 1, 24 1975, this chapter shall be construed to apply to all covered 25 agency proceedings and all agency action not expressly exempted 26 by this chapter or by another statute specifically referring to 27 this chapter by name citation . 28 3. An agency shall have only that authority or discretion 29 delegated to or conferred upon the agency by law and shall not 30 expand or enlarge its authority or discretion beyond the powers 31 delegated to or conferred upon the agency. Unless otherwise 32 specifically provided in statute, a grant of rulemaking 33 authority shall be construed narrowly. 34 EXPLANATION 35 -4- LSB 2491YC (2) 85 jr/rj 4/ 6

H.F. _____ This bill relates to the rulemaking process and agency 1 decision making. The bill concerns the administrative rules 2 review committee (ARRC) relative to its powers concerning the 3 rulemaking process. 4 As it relates to the rulemaking process, the bill provides 5 that a rule can be adopted without notice only if the statute 6 so provides or with the approval of the ARRC. Code section 7 17A.4(3) relates to so-called “emergency” rulemaking. This 8 section is amended to empower the ARRC to object to an 9 emergency adopted rule and suspend its effect by a two-thirds 10 vote. Code section 17A.4(7), concerning the 70-day delay 11 authority of the ARRC, is amended to provide that the ARRC 12 may, upon a two-thirds vote, suspend the applicability of a 13 rule promulgated under Code section 17A.5(2)(b) (so-called 14 emergency rulemaking) for 70 days. The bill provides that 15 action to suspend the applicability of a rule under this new 16 provision must be taken within 35 days of the effective date 17 of the rule. In addition, the bill provides that the ARRC may 18 utilize the 70-day delay authority regardless of the reason 19 for the delay and for a portion of a rule. Under current law, 20 rules promulgated under Code section 17A.5(2)(b) take effect 21 upon filing and are not subject to the 70-day delay authority 22 of the ARRC. 23 Code section 17A.4, new subsection 9, provides that the 24 ARRC, upon a two-thirds vote, may suspend for 70 days further 25 action relating to a notice of intended action filed by an 26 agency. Under current law, the ARRC has no authority relating 27 to a notice of intended action until the adopted rule is filed 28 in final form following this notice. 29 Code section 17A.8(9), concerning the session delay 30 authority of the ARRC, is amended to provide that the ARRC, 31 upon a two-thirds vote, may suspend the applicability of an 32 emergency rule until the adjournment of the next regular 33 session of the general assembly. The bill also provides that 34 action to suspend the applicability of a rule under this new 35 -5- LSB 2491YC (2) 85 jr/rj 5/ 6

H.F. _____ provision must be taken within 35 days of the effective date 1 of the rule. In addition, the bill provides that the ARRC 2 may utilize the session delay authority for a portion of a 3 rule. Under current law, rules promulgated under Code section 4 17A.5(2)(b) take effect upon filing and are not subject to the 5 session delay authority of the ARRC. 6 The bill creates a rule of statutory construction relating 7 to the delegation of rulemaking authority. The bill provides 8 that unless otherwise specifically provided in statute, a grant 9 of rulemaking authority shall be construed narrowly. 10 -6- LSB 2491YC (2) 85 jr/rj 6/ 6