Senate File 229 - Introduced SENATE FILE 229 BY McKINLEY A BILL FOR An Act relating to the review of administrative rules for their 1 impact on small business. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2438SS (1) 84 jr/nh

S.F. 229 Section 1. Section 15.106, Code 2011, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 8A. Analyze each notice of intended action 3 or rule filed without notice which may have a substantial 4 impact on small business and submit its analysis and findings 5 on that impact as required by section 17A.4, subsection 4A. 6 Sec. 2. Section 17A.4, Code 2011, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 4A. Any notice of intended action or 9 rule filed without notice pursuant to subsection 2, which may 10 have a substantial impact on small business, as defined in 11 section 17A.4A, subsection 8, shall summarize that impact in 12 the preamble of the notice of intended action or the preamble 13 of a rule filed without notice. In addition, the agency shall 14 notify the department of economic development of this intended 15 action or rule and its possible impact on small business. 16 The department of economic development shall analyze the 17 rulemaking and determine whether the impact on small business 18 is substantial, adverse, and whether any feasible alternatives 19 exist to reduce the impact. The department shall submit its 20 analysis and findings to the administrative rules coordinator, 21 the administrative rules review committee, and the agency. A 22 rule which is the subject of the notice of intended action 23 shall not be adopted until the analysis has been completed. 24 For a rule filed without notice, the analysis must be submitted 25 within seventy days of the publication of the rule. 26 Sec. 3. Section 17A.4A, subsection 1, Code 2011, is amended 27 to read as follows: 28 1. An agency shall issue a regulatory analysis of a proposed 29 rule that complies with subsection 2 , paragraph “a” , if, within 30 thirty-two days after the published notice of proposed rule 31 adoption, a written request for the analysis is submitted 32 to the agency by the administrative rules review committee 33 or the administrative rules coordinator. An agency shall 34 issue a regulatory analysis of a proposed rule that complies 35 -1- LSB 2438SS (1) 84 jr/nh 1/ 3

S.F. 229 with subsection 2 , paragraph “b” , if the rule would have a 1 substantial impact on small business and if, within thirty-two 2 days after the published notice of proposed rule adoption, a 3 written request for analysis is submitted to the agency by the 4 administrative rules review committee, the administrative rules 5 coordinator, the department of economic development, at least 6 twenty-five persons signing that request who each qualify as 7 a small business , or by an organization representing at least 8 twenty-five such persons. If a rule has been adopted without 9 prior notice and an opportunity for public participation in 10 reliance upon section 17A.4, subsection 3 , the written request 11 for an analysis that complies with subsection 2 , paragraph “a” 12 or “b” , may be made within seventy days of publication of the 13 rule. 14 Sec. 4. Section 17A.33, Code 2011, is amended to read as 15 follows: 16 17A.33 Review by administrative rules review committee. 17 The administrative rules review committee shall review 18 existing rules, as time permits, to determine if there are 19 adverse or beneficial effects from these rules. The committee 20 shall give a high priority to review rules that are referred to 21 it by small business as defined in section 17A.4A , and rules 22 identified by the department of economic development as having 23 a substantial and adverse impact on small business . The review 24 of these rules shall be forwarded to the appropriate standing 25 committees of the house and senate. 26 EXPLANATION 27 This bill requires any new rule having a substantial impact 28 on small business to indicate that fact in the preamble of 29 the filing and requires the agency promulgating the rule to 30 notify the department of economic development. The department 31 is then required to analyze this impact and determine whether 32 any feasible alternatives exist to reduce that impact. This 33 analysis is to be provided to the administrative rules 34 coordinator, the administrative rules review committee, and the 35 -2- LSB 2438SS (1) 84 jr/nh 2/ 3

S.F. 229 agency. The bill also authorizes the department of economic 1 development to demand an agency to issue a small business 2 regulatory flexibility analysis and requires the administrative 3 rules review committee to review new rules identified as having 4 a substantial and adverse impact on small business. 5 -3- LSB 2438SS (1) 84 jr/nh 3/ 3