Senate File 65 - Introduced SENATE FILE BY McKINLEY, HAHN, and BEHN Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the review of administrative rules for their 2 impact on small business. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1887SS 81 5 jr/pj/5 PAG LIN 1 1 Section 1. Section 15.106, Code 2005, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 8A. Analyze each notice of intended 1 4 action or rule filed without notice which may have a 1 5 substantial impact on small business and submit its analysis 1 6 and findings on that impact as required by section 17A.4, 1 7 subsection 3A. 1 8 Sec. 2. Section 17A.4, Code 2005, is amended by adding the 1 9 following new subsection: 1 10 NEW SUBSECTION. 3A. Any notice of intended action or rule 1 11 filed without notice pursuant to subsection 2, which may have 1 12 a substantial impact on small business, as defined in section 1 13 17A.4A, subsection 7, shall summarize that impact in the 1 14 preamble of the notice of intended action or the preamble of a 1 15 rule filed without notice. In addition, the agency shall 1 16 notify the department of economic development of this intended 1 17 action or rule and its possible impact on small business. The 1 18 department of economic development shall analyze the 1 19 rulemaking and determine whether the impact on small business 1 20 is substantial, adverse, and whether any feasible alternatives 1 21 exist to reduce the impact. The department shall submit its 1 22 analysis and findings to the administrative rules coordinator, 1 23 the administrative rules review committee, and the agency. A 1 24 rule which is the subject of the notice of intended action 1 25 shall not be adopted until the analysis has been completed. 1 26 For a rule filed without notice, the analysis must be 1 27 submitted within seventy days of the publication of the rule. 1 28 Sec. 3. Section 17A.4A, subsection 1, Code 2005, is 1 29 amended to read as follows: 1 30 1. An agency shall issue a regulatory analysis of a 1 31 proposed rule that complies with subsection 2, paragraph "a", 1 32 if, within thirty=two days after the published notice of 1 33 proposed rule adoption, a written request for the analysis is 1 34 submitted to the agency by the administrative rules review 1 35 committee or the administrative rules coordinator. An agency 2 1 shall issue a regulatory analysis of a proposed rule that 2 2 complies with subsection 2, paragraph "b", if the rule would 2 3 have a substantial impact on small business and if, within 2 4 thirty=two days after the published notice of proposed rule 2 5 adoption, a written request for analysis is submitted to the 2 6 agency by the administrative rules review committee, the 2 7 administrative rules coordinator, the department of economic 2 8 development, at least twenty=five persons signing that request 2 9 who each qualify as a small business or by an organization 2 10 representing at least twenty=five such persons. If a rule has 2 11 been adopted without prior notice and an opportunity for 2 12 public participation in reliance upon section 17A.4, 2 13 subsection 2, the written request for an analysis that 2 14 complies with subsection 2, paragraph "a" or "b", may be made 2 15 within seventy days of publication of the rule. 2 16 Sec. 4. Section 17A.33, Code 2005, is amended to read as 2 17 follows: 2 18 17A.33 REVIEW BY ADMINISTRATIVE RULES REVIEW COMMITTEE. 2 19 The administrative rules review committee shall review 2 20 existing rules, as time permits, to determine if there are 2 21 adverse or beneficial effects from these rules. The committee 2 22 shallgive a high priority toreview rules that are referred 2 23 to it by small business as defined in section 17A.4A, and 2 24 rules identified by the department of economic development as 2 25 having a substantial and adverse impact on small business. 2 26 The review of these rules shall be forwarded to the 2 27 appropriate standing committees of the house and senate. 2 28 EXPLANATION 2 29 This bill requires any new rule having a substantial impact 2 30 on small business to indicate that fact in the preamble of the 2 31 filing and requires the agency promulgating the rule to notify 2 32 the department of economic development. The department is 2 33 then required to analyze this impact and determine whether any 2 34 feasible alternatives exist to reduce that impact. This 2 35 analysis is to be provided to the administrative rules 3 1 coordinator, the administrative rules review committee, and 3 2 the agency. The bill also authorizes the department of 3 3 economic development to demand an agency to issue a small 3 4 business regulatory flexibility analysis and requires the 3 5 administrative rules review committee to review new rules 3 6 identified as having a substantial and adverse impact on small 3 7 business. 3 8 LSB 1887SS 81 3 9 jr:rj/pj/5