H.F. 2199 Section 1. Section 7.17, Code 2011, is amended to read as 1 follows: 2 7.17 Office of administrative rules coordinator. 3 1. The governor shall establish the office of the 4 administrative rules coordinator, and appoint its staff, which 5 shall be a part of the governor’s office. 6 2. The administrative rules coordinator shall receive all 7 notices and rules adopted pursuant to chapter 17A and provide 8 the governor with an opportunity to review and object to any 9 rule as provided in chapter 17A . 10 3. a. The administrative rules coordinator shall create a 11 citizens’ committee, consisting of regulators, stakeholders, 12 members of the public, and legislators, to advise the 13 administrative rules coordinator on rulemaking issues. 14 b. The members of the committee shall not be paid a per diem 15 but shall be reimbursed for travel expenses. 16 Sec. 2. Section 17A.4, subsection 1, paragraph b, Code 2011, 17 is amended to read as follows: 18 b. (1) Afford all interested persons not less than twenty 19 days to submit data, views, or arguments in writing , including 20 in an electronic format . If timely requested in writing by 21 twenty-five interested persons, by a governmental subdivision, 22 by the administrative rules review committee, by an agency, or 23 by an association having not less than twenty-five members, the 24 agency must give interested persons an opportunity to make oral 25 presentation. 26 (2) To the extent practicable, the agency shall provide an 27 opportunity to make these oral presentations using the Iowa 28 communications network or other electronic means and provide 29 public access at multiple sites throughout the state. If 30 a request is received from twenty-five interested persons 31 residing in the same city or county, the agency shall provide 32 an opportunity for oral presentation in that city or county. 33 (3) The opportunity for oral presentation must be held 34 at least twenty days after publication of the notice of its 35 -1- LSB 5137HH (8) 84 jr/rj 1/ 12

H.F. 2199 time and place in the Iowa administrative bulletin. The 1 agency shall consider fully all written and oral submissions 2 respecting the proposed rule. Within one hundred eighty 3 days following either the notice published according to the 4 provisions of paragraph “a” or within one hundred eighty 5 days after the last date of the oral presentations on the 6 proposed rule, whichever is later, the agency shall adopt a 7 rule pursuant to the rulemaking proceeding or shall terminate 8 the proceeding by publishing notice of termination in the Iowa 9 administrative bulletin. 10 Sec. 3. Section 17A.4, subsection 2, Code 2011, is amended 11 to read as follows: 12 2. An agency shall include in a preamble to each rule 13 it adopts a brief explanation of the principal reasons for 14 its action pursuant to section 17A.5 a concise statement 15 of the principal reasons for and against the rule adopted, 16 incorporating in the statement the reasons for overruling 17 considerations urged against the rule and, if applicable, a 18 brief explanation of the principal reasons for its failure 19 to provide in that the rule for the waiver of the rule in 20 specified situations if no such waiver provision is included 21 in the rule. This explanatory requirement does not apply when 22 the agency adopts a rule that only defines the meaning of a 23 provision of law if the agency does not possess delegated 24 authority to bind the courts to any extent with its definition. 25 In addition, if requested to do so by an interested person, 26 either prior to adoption or within thirty days thereafter, the 27 agency shall issue a concise statement of the principal reasons 28 for and against the rule adopted, incorporating therein the 29 reasons for overruling considerations urged against the rule. 30 This concise statement shall be issued either at the time of 31 the adoption of the rule or within thirty-five days after the 32 agency receives the request. 33 Sec. 4. NEW SECTION . 17A.4B Job impact statement. 34 1. a. “Benefit” means the reasonably identifiable and 35 -2- LSB 5137HH (8) 84 jr/rj 2/ 12

H.F. 2199 quantifiable positive effect or outcome that is expected to 1 result from implementation of a rule. 2 b. “Cost” means reasonably identifiable, significant, direct 3 or indirect, economic impact that is expected to result from 4 implementation of and compliance with a rule. 5 c. “Cost-benefit analysis” means regulatory analysis 6 to provide the public with transparency regarding the 7 cost-effectiveness of a rule, including the economic costs and 8 the effectiveness weighed by the agency in adopting the rule. 9 “Cost-benefit analysis” includes a comparison of the probable 10 costs and benefits of a rule to the probable costs and benefits 11 of less intrusive or less expensive methods that exist for 12 achieving the purpose of the rule. 13 d. “Jobs” means private sector employment including 14 self-employment and areas for potential for employment growth. 15 e. “Jobs impact statement” means a statement that does all 16 of the following: 17 (1) Identifies the objective of a rule and the applicable 18 section of the statute that provides specific legal authority 19 for the agency to adopt the rule. 20 (2) Identifies and describes the cost that the agency 21 anticipates state agencies, local governments, the public, and 22 the regulated entities, including regulated businesses and 23 self-employed individuals, will incur due to the implementation 24 of and complying with a rule. 25 (3) Determines whether a rule would have a positive 26 or negative impact on private sector jobs and employment 27 opportunities in Iowa. 28 (4) Describes and quantifies the nature of the impact a rule 29 will have on private sector jobs and employment opportunities 30 including the categories of jobs and employment opportunities 31 that are affected by the rule, and the number of jobs or 32 potential job opportunities and the regions of the state 33 affected by the rule. 34 (5) Identifies, where possible, the additional costs to 35 -3- LSB 5137HH (8) 84 jr/rj 3/ 12

H.F. 2199 employers per employee due to implementation of and complying 1 with a rule. 2 (6) Includes other relevant analysis requested by the 3 administrative rules coordinator. 4 2. Prior to implementation of a rule, an agency shall 5 take steps to minimize the adverse impact on jobs and 6 the development of new employment opportunities due to 7 implementation of the rule. 8 3. An agency shall provide a jobs impact statement to the 9 administrative rules coordinator prior to publication of a 10 notice of intended action or the publication of a rule without 11 notice. 12 4. The jobs impact statement shall be published as part 13 of the preamble to the notice of rulemaking in the Iowa 14 administrative bulletin, unless the administrative rules 15 coordinator determines that publication of the entire jobs 16 impact statement would be unnecessary or impractical. 17 5. An agency shall accept comments and information 18 from stakeholders prior to final preparation of the jobs 19 impact statement. Any concerned private sector employer or 20 self-employed individual, potential employer, potential small 21 business, or member of the public may submit information 22 relating to a jobs impact statement upon a request for 23 information or prior to publication of a notice of intended 24 action by an agency. 25 6. If a jobs impact statement is revised after a notice 26 of intended action is published, the revised jobs impact 27 statement shall be published as part of the preamble to the 28 adopted version of the rule, unless the administrative rules 29 coordinator determines that publication of the entire jobs 30 impact statement would be unnecessary or impractical. 31 7. The analysis in the jobs impact statement shall give 32 particular weight to jobs in production sectors of the economy 33 which includes the manufacturing and agricultural sectors of 34 the economy and include analysis, where applicable, of the 35 -4- LSB 5137HH (8) 84 jr/rj 4/ 12

H.F. 2199 impact of the rule on expansion of existing businesses or 1 facilities. 2 8. The administrative rules coordinator may waive the jobs 3 impact statement requirement for rules proposed on an emergency 4 basis or if unnecessary or impractical. 5 9. By July 1, 2013, and every five years thereafter, an 6 agency shall prepare a comprehensive jobs impact statement 7 for all of the agency’s rules. An agency shall transmit 8 each five-year comprehensive jobs impact statement to the 9 administrative rules coordinator, the administrative rules 10 review committee, and the administrative code editor. The 11 administrative code editor shall publish the statement, or a 12 summary, in the Iowa administrative bulletin. 13 Sec. 5. NEW SECTION . 17A.4C Negotiated rulemaking. 14 1. An agency shall create a negotiated rulemaking group if 15 required by statute. An agency may, on its own motion or upon 16 request, create a negotiated rulemaking group if the agency 17 determines that a negotiated rulemaking group can adequately 18 represent the interests that will be significantly affected by 19 a draft rule proposal and that it is feasible and appropriate 20 in the particular rulemaking. Notice of the creation of a 21 negotiated rulemaking group shall be published in the Iowa 22 administrative bulletin. Upon establishing a negotiated 23 rulemaking group, the agency shall also specify a time frame 24 for group deliberations. 25 2. Unless otherwise provided by statute, the agency shall 26 appoint a sufficient number of members to the group so that 27 a fair cross section of interests and opinions regarding the 28 draft rule proposal is represented. One person shall be 29 appointed to represent the agency. The group shall select its 30 own chairperson and adopt its rules of procedure. All meetings 31 of the group shall be open to the public. A majority of the 32 membership constitutes a quorum. Members shall not receive 33 any per diem payment but shall be reimbursed for all necessary 34 expenses. Any vacancy shall be filled in the same manner as 35 -5- LSB 5137HH (8) 84 jr/rj 5/ 12

H.F. 2199 the initial appointment. 1 3. Prior to the publication of a notice of intended action, 2 the group shall consider the terms or substance of the rule 3 proposed by the agency and shall attempt to reach a consensus 4 on the advisability of adopting the draft rule proposal. 5 4. If a group reaches a consensus on a draft rule proposal, 6 the group shall transmit to the agency a report containing the 7 consensus on the draft rule proposal. If the group does not 8 reach a consensus on a draft rule proposal within the specified 9 time frame, the group shall transmit to the agency a report 10 stating that inability to reach a consensus and specifying any 11 areas in which the group reached a consensus. The group may 12 include in a report any other information, recommendations, 13 or materials that the group considers appropriate. Any group 14 member may include as an addendum to the report additional 15 information, recommendations, or materials. A report issued 16 under this subsection shall not be considered final agency 17 action for purposes of judicial review. 18 5. Unless otherwise provided by statute, following 19 consideration of a draft rule proposal by a negotiated 20 rulemaking group, the agency may commence rulemaking as 21 provided in section 17A.4. The group is automatically 22 abolished upon the agency’s adoption of the rule pursuant to 23 the provisions of section 17A.5. 24 Sec. 6. NEW SECTION . 17A.6A Rulemaking internet site. 25 1. Subject to the direction of the administrative rules 26 coordinator, each agency shall make available to the public 27 a uniform, searchable, and user-friendly rules database, 28 published on an internet site. 29 2. An agency’s rulemaking internet site shall also make 30 available to the public all of the following: 31 a. A brief summary of the rulemaking process, including a 32 description of any opportunity for public participation in the 33 process. 34 b. Process forms for filing comments or complaints 35 -6- LSB 5137HH (8) 84 jr/rj 6/ 12

H.F. 2199 concerning proposed or adopted rules. 1 c. Process forms and instructions for filing a request for 2 the creation of a negotiated rulemaking group, a petition for 3 rulemaking, a petition for a declaratory order, or a request 4 for a waiver of an administrative rule. 5 d. Any other material prescribed by the administrative rules 6 coordinator. 7 3. To the extent practicable, the administrative rules 8 coordinator shall create a uniform format for rulemaking 9 internet sites. 10 Sec. 7. Section 17A.7, subsection 2, Code 2011, is amended 11 by striking the subsection and inserting in lieu thereof the 12 following: 13 2. Over a five-year period of time, an agency shall conduct 14 an ongoing and comprehensive review of all of the agency’s 15 rules. The goal of the review is the identification and 16 elimination of all rules of the agency that are outdated, 17 redundant, overbroad, ineffective, unnecessary, or otherwise 18 undesirable. An agency shall commence its review by developing 19 a plan of review in consultation with major stakeholders and 20 constituent groups. As part of its review, an agency shall 21 review existing policy and interpretive statements or similar 22 documents to determine whether it would be necessary or 23 appropriate to adopt these statements or documents as rules. 24 a. An agency shall establish its five-year plan for review 25 of its rules and publish the plan in the Iowa administrative 26 bulletin. 27 b. An agency’s plan for review shall do all of the 28 following: 29 (1) Contain a schedule that lists when the review of each 30 rule or rule group will occur. 31 (2) State the method by which the agency will analyze 32 the rule under review regarding the considerations listed in 33 paragraph “c” . 34 (3) Provide a means for public participation in the review 35 -7- LSB 5137HH (8) 84 jr/rj 7/ 12

H.F. 2199 process and specify how interested persons may participate in 1 the review. 2 (4) Identify instances where the agency may require an 3 exception to the review requirements. 4 (5) Provide a process for ongoing review of rules after the 5 initial five-year review period has expired. 6 c. An agency shall analyze its rules under review by 7 considering all of the following: 8 (1) The need for the rule. 9 (2) The clarity of the rule. 10 (3) The intent and legal authority for the rule. 11 (4) The qualitative and quantitative benefits and costs of 12 the rule. 13 (5) The fairness of the rule. 14 d. When an agency completes its five-year review of its 15 rules, the agency shall provide a summary of the results to the 16 administrative rules coordinator and the administrative rules 17 review committee. 18 Sec. 8. Section 17A.23, Code 2011, is amended to read as 19 follows: 20 17A.23 Construction —— delegation of authority . 21 1. Except as expressly provided otherwise by this chapter 22 or by another statute referring to this chapter by name, the 23 rights created and the requirements imposed by this chapter 24 shall be in addition to those created or imposed by every other 25 statute in existence on July 1, 1975, or enacted after that 26 date. If any other statute in existence on July 1, 1975, or 27 enacted after that date diminishes a right conferred upon a 28 person by this chapter or diminishes a requirement imposed upon 29 an agency by this chapter , this chapter shall take precedence 30 unless the other statute expressly provides that it shall take 31 precedence over all or some specified portion of this named 32 cited chapter. 33 2. This chapter shall be construed broadly to effectuate 34 its purposes. This chapter shall also be construed to apply 35 -8- LSB 5137HH (8) 84 jr/rj 8/ 12

H.F. 2199 to all agencies not expressly exempted by this chapter or by 1 another statute specifically referring to this chapter by name 2 citation ; and except as to proceedings in process on July 1, 3 1975, this chapter shall be construed to apply to all covered 4 agency proceedings and all agency action not expressly exempted 5 by this chapter or by another statute specifically referring to 6 this chapter by name citation . 7 3. An agency shall have only that authority or discretion 8 delegated to or conferred upon the agency by law and shall not 9 expand or enlarge its authority or discretion beyond the powers 10 delegated to or conferred upon the agency. Unless otherwise 11 specifically provided in statute, a grant of rulemaking 12 authority shall be construed narrowly. 13 Sec. 9. NEW SECTION . 17A.24 Rule implementation of federal 14 statute, regulation, or policy. 15 1. Except as otherwise explicitly authorized by state law, 16 an agency charged with the implementation of a federal statute, 17 regulation, or policy shall not implement the federal statute, 18 regulation, or policy in a manner that exceeds the specific 19 requirements of the federal statute, regulation, or policy. 20 2. Any portion of an agency rule or policy that implements 21 a federal statute, regulation, or policy and that exceeds the 22 specific requirements of the federal statute, regulation, or 23 policy is automatically superceded by the specific requirements 24 of that federal statute, regulation, or policy. 25 Sec. 10. ENVIRONMENTAL REGULATION STUDY. 26 1. The legislative council, in consultation with the 27 department of natural resources, shall establish a study to 28 analyze the projected financial effects of current and proposed 29 United States environmental protection agency regulations and 30 Iowa department of natural resources rules on Iowa cities over 31 a ten-year period. 32 2. The study should include an analysis of projected 33 financial costs of such regulations and rules on a hypothetical 34 small Iowa community, medium-sized Iowa community, and large 35 -9- LSB 5137HH (8) 84 jr/rj 9/ 12

H.F. 2199 Iowa community. 1 3. The study shall be concluded by June 30, 2013, and a 2 report shall be provided to the members of the general assembly 3 and to the governor. 4 EXPLANATION 5 This bill relates to the review of administrative rules and 6 the rulemaking process. 7 CITIZENS’ ADVISORY COMMITTEE. The bill requires that the 8 administrative rules coordinator create a citizens’ committee, 9 to advise the administrative rules coordinator on rulemaking 10 issues. The members of the committee shall not be paid a per 11 diem but shall be reimbursed for travel expenses. 12 RULEMAKING HEARINGS THROUGHOUT STATE. The bill requires 13 administrative agencies, when feasible, to hold rulemaking 14 hearings in varied locations throughout the state via the Iowa 15 communications network and provides that a hearing must be held 16 in a particular city or county when 25 interested persons from 17 that city or county make the request. 18 PRINCIPAL REASONS FOR AND AGAINST RULE. The bill requires 19 that every adopted rule must be accompanied by a concise 20 statement of the principal reasons for and against the rule 21 adopted. Under current law such a statement is only provided 22 on request. 23 JOBS IMPACT STATEMENTS. The bill requires that every 24 proposed rule under a notice of intended action contain a jobs 25 impact statement which outlines the objective and statutory 26 authority of the rule and analyzes and sets out in detail 27 the impact of the proposed rule on state agencies, local 28 governments, the public, and the regulated entities, including 29 regulated businesses and self-employed individuals affected by 30 the rule. The statement must also determine whether a proposed 31 rule would have a positive or negative impact on private sector 32 jobs and employment opportunities. 33 Commencing July 1, 2013, and every five years thereafter, 34 each agency shall prepare a jobs impact statement for all of 35 -10- LSB 5137HH (8) 84 jr/rj 10/ 12

H.F. 2199 the agency rules. The statement will be published in the Iowa 1 administrative bulletin. 2 As part of this requirement, an agency is required to 3 takes steps to minimize the adverse impact on jobs and the 4 development of new employment opportunities before proposing 5 a rule. 6 The administrative rules coordinator may waive the jobs 7 impact statement requirement for emergency-filed rules or if 8 unnecessary or impractical. 9 NEGOTIATED RULEMAKING GROUPS. If required by statute, 10 this bill requires an agency to create an ad hoc negotiated 11 rulemaking group to review draft rule proposals prior to 12 commencing a rulemaking proceeding. Where a statute does 13 not require this review, the bill allows an agency to create 14 such a review group. Members are appointed by the agency 15 and the composition must adequately represent a fair balance 16 of the interests affected by the rule. Once such a group is 17 created, the agency may only commence rulemaking after the 18 group has considered the draft rule proposal in question. This 19 provision is based on similar provisions found in the federal 20 Administrative Procedures Act. 21 USER-FRIENDLY INTERNET SITES. The bill requires each 22 agency to make available to the public a uniform, searchable, 23 and user-friendly rules database, published on an internet 24 site, subject to the direction of the administrative rules 25 coordinator. Each agency’s internet site must contain 26 specified information relating to the agency’s rules and 27 available procedures for public participation. 28 FIVE-YEAR CYCLE OF AGENCY REVIEW OF RULES. The bill requires 29 that each state agency review all of its administrative 30 rules on a five-year cycle. The plan for this review must be 31 developed in consultation with stakeholders and constituent 32 groups. The goal of the review is the identification and 33 elimination of all rules of the agency that are outdated, 34 redundant, overbroad, ineffective, unnecessary, or otherwise 35 -11- LSB 5137HH (8) 84 jr/rj 11/ 12

H.F. 2199 undesirable. 1 NARROW CONSTRUCTION OF RULES. The bill also establishes 2 a new rule of statutory construction: Unless otherwise 3 specifically provided in statute, any grant of rulemaking 4 authority shall be construed narrowly. 5 FEDERAL LAW IMPLEMENTATION. The bill also provides that 6 state implementation of a federal statute, regulation, 7 or policy by a state agency shall not exceed the specific 8 requirements of the federal statute, regulation, or 9 policy, except as specifically allowed by state law. Any 10 portion of a state rule or policy that implements a federal 11 statute, regulation, or policy and that exceeds the specific 12 requirements of the federal statute, regulation, or policy is 13 automatically superceded by the specific requirements of that 14 federal statute, regulation, or policy. 15 ENVIRONMENTAL RULES STUDY. The bill provides that the 16 legislative council, in consultation with the department of 17 natural resources, shall establish a study to analyze the 18 projected financial effects of current and proposed United 19 States environmental protection agency regulations and Iowa 20 department of natural resources rules on Iowa cities over a 21 10-year period. The report of the study must be completed by 22 June 30, 2013. 23 -12- LSB 5137HH (8) 84 jr/rj 12/ 12