SENATE FILE 375

BY  McKINLEY

A BILL FOR

An Act providing for negotiated rulemaking.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  NEW SECTION.  17A.4B  Negotiated rulemaking.
   1.  An agency shall create a negotiated rulemaking group if required by statute. An agency may, on its own motion or upon request, create a negotiated rulemaking group if the agency determines that a negotiated rulemaking group can adequately represent the interests that will be significantly affected by a draft rule proposal and that it is feasible and appropriate in the particular rulemaking. Notice of the creation of a negotiated rulemaking group shall be published in the Iowa administrative bulletin. Upon establishing a negotiated rulemaking group, the agency shall also specify a time frame for group deliberations.
   2.  Unless otherwise provided by statute, the agency shall appoint a sufficient number of members to the group so that a fair cross section of opinions and interests regarding the draft rule proposal is represented. One person shall be appointed to represent the agency. The group shall select its own chairperson and adopt its rules of procedure. All meetings of the group shall be open to the public. A majority of the membership constitutes a quorum. Members shall not receive any per diem payment but shall be reimbursed for all necessary expenses. Any vacancy shall be filled in the same manner as the initial appointment.
   3.  Prior to the publication of a notice of intended action, the group shall consider the terms or substance of the rule drafted by the agency and shall attempt to reach a consensus concerning the draft rule proposal.
   4.  If a group reaches a consensus on a draft rule proposal, the group shall transmit to the agency a report containing the consensus on the draft rule proposal. If the group does not reach a consensus on a draft rule proposal within the specified time frame, the group shall transmit to the agency a report stating that inability to reach a consensus and specifying any areas in which the group reached a consensus. The group may include in a report any other information, recommendations, or materials that the group considers appropriate. Any group member may include as an addendum to the report additional information, recommendations, or materials. A report issued under this subsection shall not be considered final agency action for purposes of judicial review.
   5.  Unless otherwise provided by statute, following a negotiated rulemaking group consideration of a draft rule proposal, the agency may commence rulemaking as provided in section 17A.4. The group is automatically abolished upon the agency’s adoption of the rule pursuant to the provisions of section 17A.5.
EXPLANATION
   If required by statute, this bill requires an agency to create an ad hoc group to review draft rule proposals prior to commencing a rulemaking proceeding. Where a statute does not require this review, the bill allows an agency to create such a review group. Members are appointed by the agency and the composition must adequately represent a fair balance of the interests affected by the rule. Once such a group is created, the agency may only commence rulemaking after the group has considered the draft rule proposal in question.
   The bill is based on similar provisions found in the federal Administrative Procedures Act.