Senate File 2125 - Introduced SENATE FILE 2125 BY CHAPMAN , ANDERSON , SINCLAIR , JOHNSON , FEENSTRA , ROZENBOOM , GREINER , ERNST , KAPUCIAN , BREITBACH , CHELGREN , BOETTGER , and BEHN A BILL FOR An Act providing for a fiscal analysis of all proposed rules 1 and a process for a review and prospective five-year 2 recision of existing rules. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5484XS (7) 85 jr/rj

S.F. 2125 Section 1. Section 17A.4, subsection 2, Code 2014, is 1 amended to read as follows: 2 2. a. An agency shall include in a preamble to each rule 3 it adopts a brief explanation of the principal reasons for its 4 action and, if applicable, a brief explanation of the principal 5 reasons for its failure to provide in that rule for the waiver 6 of the rule in specified situations if no such waiver provision 7 is included in the rule. This explanatory requirement does 8 not apply when the agency adopts a rule that only defines the 9 meaning of a provision of law if the agency does not possess 10 delegated authority to bind the courts to any extent with 11 its definition. In addition, if If requested to do so by an 12 interested person, either prior to adoption or within thirty 13 days thereafter, the agency shall issue a concise statement 14 of the principal reasons for and against the rule adopted, 15 incorporating therein the reasons for overruling considerations 16 urged against the rule. This concise statement shall be issued 17 either at the time of the adoption of the rule or within 18 thirty-five days after the agency receives the request. 19 b. Each agency shall include in a preamble to each notice of 20 intended action, or rule adopted without prior notice and an 21 opportunity for public participation: 22 (1) A brief explanation of the principal reasons for its 23 action and, if applicable, a brief explanation of the principal 24 reasons for its failure to provide in that rule for the waiver 25 of the rule in specified situations if no such waiver provision 26 is included in the rule. This explanatory requirement does 27 not apply when the agency adopts a rule that only defines the 28 meaning of a provision of law if the agency does not possess 29 delegated authority to bind the courts to any extent with its 30 definition. 31 (2) A financial impact statement that details the 32 benefits anticipated from the proposed rule and the costs of 33 implementation and compliance on both the agency and those 34 persons impacted by the rule. 35 -1- LSB 5484XS (7) 85 jr/rj 1/ 3

S.F. 2125 (a) If the agency has made a good-faith effort to comply 1 with the requirements of this subparagraph, the rule may not be 2 invalidated on the ground that the contents of the statement 3 are insufficient or inaccurate. 4 (b) A member of the general assembly may request that the 5 statement be reviewed, and its accuracy confirmed, by the 6 legislative services agency. 7 Sec. 2. Section 17A.7, subsection 2, Code 2014, is amended 8 by striking the subsection and inserting in lieu thereof the 9 following: 10 2. a. A rule is rescinded five years after the initial 11 effective date of the rule, excluding the effective dates of 12 subsequent amendments. For rules that are in effect on July 1, 13 2014, the recision date is July 1, 2019. 14 b. An agency may publish a notice of intended action to 15 readopt a rule subject to this subsection. 16 c. (1) Twelve months prior to the notice referred 17 to in paragraph “b” , the agency shall publish in the Iowa 18 administrative bulletin a review of the rule which shall 19 include the financial impact statement required pursuant to 20 section 17A.3, subsection 2, paragraph “b” , and the actual 21 cost of implementation and compliance since adoption. The 22 review shall also project the cost of continuance of the 23 rule. The agency shall provide a copy of the review to the 24 administrative rules coordinator and the administrative rules 25 review committee. 26 (2) Each analysis included in the review shall be conducted 27 by the agency intending to readopt the rule, in consultation 28 with major stakeholders and constituent groups. If the noticed 29 rule has an annual financial impact of at least one hundred 30 thousand dollars, the agency’s review shall be analyzed by the 31 legislative services agency in order to confirm the accuracy 32 of the review. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -2- LSB 5484XS (7) 85 jr/rj 2/ 3

S.F. 2125 the explanation’s substance by the members of the general assembly. 1 This bill requires that each notice of intended action to 2 adopt an administrative rule, or each “emergency” adopted rule, 3 contain a financial impact statement that details the benefits 4 anticipated from the rule, the costs of implementation and 5 compliance on both the agency and those persons impacted. The 6 statement must be included in the preamble to the rulemaking 7 document. The agency is required to make a good-faith effort 8 to prepare the statement. A member of the General Assembly 9 may request that the statement be reviewed for accuracy by the 10 legislative services agency. 11 Existing provisions relating to a concise statement of 12 reasons for adoption of a rule are moved to the bill’s new 13 provision and applied to proposed rules. 14 The bill strikes existing provisions relating to the 15 periodic review of existing rules, substituting provisions for 16 a five-year sunset for all rules. Rules can be readopted, 17 accompanied by an agency review outlining the costs associated 18 with the rule. The legislative services agency is required to 19 analyze an agency’s review if the annual financial impact of a 20 noticed rule is at least $100,000. 21 -3- LSB 5484XS (7) 85 jr/rj 3/ 3