H.F. 262 Section 1. NEW SECTION . 8.71 Office of administrative 1 hearings —— creation, powers, duties. 2 1. For purposes of this section, unless the context 3 otherwise requires: 4 a. “Administrator” means the chief administrative law judge. 5 b. “Office” means the office of administrative hearings of 6 the department of management. 7 2. An independent office of administrative hearings within 8 the department is created to be headed and administered by a 9 chief administrative law judge appointed as administrator of 10 the office by the governor for a term of six years subject 11 to confirmation by the senate. The administrator may be 12 removed by the governor at any time for good cause. The 13 administrator shall coordinate the office’s conduct of appeals 14 and administrative hearings as provided by law. 15 3. a. The office shall employ a sufficient number of 16 administrative law judges to conduct proceedings for which 17 agencies are required, by section 17A.11 or any other provision 18 of law, to use an administrative law judge employed by the 19 office. An administrative law judge employed by the office 20 shall not perform duties inconsistent with the judge’s duties 21 and responsibilities as an administrative law judge and shall 22 be located in an office that is separated from the offices of 23 the agencies for which that person acts as a presiding officer. 24 Administrative law judges shall be covered by the merit system 25 provisions of chapter 8A, subchapter IV. 26 b. The office shall facilitate, insofar as practicable, 27 specialization by its administrative law judges so that 28 particular judges may become expert in presiding over cases 29 in particular agencies. An agency may, by rule, identify 30 particular classes of its contested cases for which the 31 administrative law judge who acts as presiding officer shall 32 have specified technical expertise. After the adoption of such 33 a rule, the office may assign administrative law judges to 34 preside over those identified particular classes of contested 35 -1- LSB 1655YH (3) 85 ec/nh 1/ 18

H.F. 262 cases only if the administrative law judge possesses the 1 technical expertise specified by agency rule. The office may 2 charge the applicable agency for the costs of any training 3 required by the office’s administrative law judges to acquire 4 or maintain the technical expertise specified by agency rule. 5 4. If the office cannot furnish one of its administrative 6 law judges in response to an agency request, the administrator 7 shall designate in writing a full-time employee of an agency 8 other than the requesting agency to serve as administrative 9 law judge for the proceeding, but only with the consent of 10 the employing agency. The designee must possess the same 11 qualifications required of administrative law judges employed 12 by the office. 13 5. The office may furnish administrative law judges on 14 a contract basis to any governmental entity to conduct any 15 proceeding. 16 6. A person shall not be newly employed by the office as 17 an administrative law judge to preside over contested case 18 proceedings unless that person has a license to practice law 19 in this state. 20 7. The office shall adopt rules pursuant to this chapter and 21 chapter 17A to do all of the following: 22 a. To establish procedures for agencies to request and for 23 the administrator to assign administrative law judges employed 24 by the office. 25 b. To establish procedures and adopt forms, consistent 26 with chapter 17A and other provisions of law, to govern 27 administrative law judges employed by the office, but any 28 rules adopted under this paragraph shall be applicable to a 29 particular contested case proceeding only to the extent that 30 they are not inconsistent with the rules of the agency under 31 whose authority that proceeding is conducted. Nothing in this 32 paragraph precludes an agency from establishing procedural 33 requirements otherwise within its authority to govern its 34 contested case proceedings, including requirements with 35 -2- LSB 1655YH (3) 85 ec/nh 2/ 18

H.F. 262 respect to the timeliness of decisions rendered for it by 1 administrative law judges. 2 c. To establish standards and procedures for the evaluation, 3 training, promotion, and discipline for the administrative law 4 judges employed by the office. The procedures shall include 5 provisions for each agency for whom a particular administrative 6 law judge presides to submit to the office on a periodic basis 7 the agency’s views with respect to the performance of that 8 administrative law judge or the need for specified additional 9 training for that administrative law judge. However, the 10 evaluation, training, promotion, and discipline of all 11 administrative law judges employed by the office shall remain 12 solely within the authority of the office. 13 d. To establish, consistent with the provisions of this 14 section and chapter 17A, a code of administrative judicial 15 conduct that is similar in function and substantially 16 equivalent to the Iowa code of judicial conduct, to govern 17 the conduct, in relation to their quasi-judicial functions in 18 contested cases, of all persons who act as presiding officers 19 under the authority of section 17A.11, subsection 1. The code 20 of administrative judicial conduct shall separately specify 21 which provisions are applicable to agency heads or members of 22 multimembered agency heads when they act as presiding officers, 23 taking into account the objectives of the code and the fact 24 that agency heads, unlike administrative law judges, have other 25 duties imposed upon them by law. The code of administrative 26 judicial conduct may also contain separate provisions, which 27 are appropriate and consistent with the objectives of such a 28 code, to govern the conduct of agency heads or the members of 29 multimember agency heads when they act as presiding officers. 30 However, a provision of the code of administrative judicial 31 conduct shall not be made applicable to agency heads or members 32 of multimember agency heads unless the application of that 33 provision to agency heads and members of multimember agency 34 heads has previously been approved by the administrative rules 35 -3- LSB 1655YH (3) 85 ec/nh 3/ 18

H.F. 262 coordinator. 1 e. To facilitate the performance of the responsibilities 2 conferred upon the office by this section, chapter 17A, and any 3 other provision of law. 4 8. The office may do all of the following: 5 a. Provide administrative law judges, upon request, to any 6 agency that is required to or wishes to utilize the services of 7 an administrative law judge employed by the office. 8 b. Maintain a staff of reporters and other personnel. 9 c. Administer the provisions of this section and rules 10 adopted under its authority. 11 9. The office may charge agencies for services rendered and 12 the payment received shall be considered repayment receipts as 13 defined in section 8.2. 14 10. Except to the extent specified otherwise by statute, 15 decisions of administrative law judges employed by the office 16 are subject to review by the agencies for which they act as 17 presiding officers as provided by section 17A.15 or any other 18 provision of law. 19 Sec. 2. Section 10A.106, subsection 1, paragraph a, Code 20 2013, is amended by striking the paragraph. 21 Sec. 3. Section 10A.106, subsection 2, Code 2013, is amended 22 to read as follows: 23 2. The allocation of departmental duties to the divisions of 24 the department in sections 10A.402 , and 10A.702 , and 10A.801 25 does not prohibit the director from reallocating departmental 26 duties within the department. 27 Sec. 4. Section 17A.11, subsection 1, paragraph a, 28 unnumbered paragraph 1, Code 2013, is amended to read as 29 follows: 30 If the agency or an officer of the agency under whose 31 authority the contested case is to take place is a named 32 party to that proceeding or a real party in interest to that 33 proceeding the presiding officer may be, in the discretion 34 of the agency, either the agency, one or more members of a 35 -4- LSB 1655YH (3) 85 ec/nh 4/ 18

H.F. 262 multimember agency, or one or more administrative law judges 1 assigned by the division office of administrative hearings 2 in accordance with the provisions of section 10A.801 8.71 . 3 However, a party may, within a time period specified by 4 rule, request that the presiding officer be an administrative 5 law judge assigned by the division office of administrative 6 hearings. Except as otherwise provided by statute, the agency 7 shall grant a request by a party for an administrative law 8 judge unless the agency finds, and states reasons for the 9 finding, that any of the following conditions exist: 10 Sec. 5. Section 17A.11, subsection 1, paragraphs b and c, 11 Code 2013, are amended to read as follows: 12 b. If the agency or an officer of the agency under whose 13 authority the contested case is to take place is not a named 14 party to that proceeding or a real party in interest to that 15 proceeding the presiding officer may be, in the discretion 16 of the agency, either the agency, one or more members of a 17 multimember agency, an administrative law judge assigned by the 18 division office of administrative hearings in accordance with 19 the provisions of section 10A.801 8.71 , or any other qualified 20 person designated as a presiding officer by the agency. Any 21 other person designated as a presiding officer by the agency 22 may be employed by and officed in the agency for which that 23 person acts as a presiding officer, but such a person shall 24 not perform duties inconsistent with that person’s duties and 25 responsibilities as a presiding officer. 26 c. For purposes of paragraph “a” , the division office 27 of administrative hearings established in section 10A.801 28 8.71 shall be treated as a wholly separate agency from the 29 department of inspections and appeals management . 30 Sec. 6. Section 20.6, subsection 4, Code 2013, is amended 31 to read as follows: 32 4. Hold hearings and administer oaths, examine witnesses 33 and documents, take testimony and receive evidence, issue 34 subpoenas to compel the attendance of witnesses and the 35 -5- LSB 1655YH (3) 85 ec/nh 5/ 18

H.F. 262 production of records, and delegate such power to a member 1 of the board, persons appointed or employed by the board, 2 including administrative law judges, or administrative law 3 judges employed by the division office of administrative 4 hearings created by section 10A.801 8.71 , for the performance 5 of its functions. The board may petition the district court at 6 the seat of government or of the county where a hearing is held 7 to enforce a board order compelling the attendance of witnesses 8 and production of records. 9 Sec. 7. Section 20.11, subsection 2, Code 2013, is amended 10 to read as follows: 11 2. The board may designate one of its members, an 12 administrative law judge employed by the office of 13 administrative hearings created by section 8.71 , or any 14 other qualified person employed by the board to serve as the 15 presiding officer at the hearing. The presiding officer has 16 the powers as may be exercised by the board for conducting the 17 hearing and shall follow the procedures adopted by the board 18 for conducting the hearing. The proposed decision of the 19 presiding officer may be appealed to the board, or reviewed 20 on motion of the board, in accordance with the provisions of 21 chapter 17A . 22 Sec. 8. Section 68B.32C, subsection 2, Code 2013, is amended 23 to read as follows: 24 2. Hearings held pursuant to this chapter shall be heard 25 by a quorum of the board, unless the board designates a board 26 member or an administrative law judge employed by the office 27 of administrative hearings created by section 8.71 to preside 28 at the hearing. If a quorum of the board does not preside at 29 the hearing, the board member or administrative law judge shall 30 make a proposed decision. The board or presiding board member 31 may be assisted by an administrative law judge in the conduct 32 of the hearing and the preparation of a decision. 33 Sec. 9. Section 96.6, subsection 3, paragraph b, Code 2013, 34 is amended to read as follows: 35 -6- LSB 1655YH (3) 85 ec/nh 6/ 18

H.F. 262 b. Appeals from the initial determination shall be heard 1 by an administrative law judge employed by the department 2 office of administrative hearings created by section 8.71 . 3 An administrative law judge’s decision may be appealed by 4 any party to the employment appeal board created in section 5 10A.601 . The decision of the appeal board is final agency 6 action and an appeal of the decision shall be made directly to 7 the district court. 8 Sec. 10. Section 97B.20B, Code 2013, is amended to read as 9 follows: 10 97B.20B Hearing by administrative law judge. 11 If an appeal is filed and is not withdrawn, an administrative 12 law judge employed by the office of administrative hearings 13 created by section 8.71 in the department of inspections and 14 appeals management , after affording the parties reasonable 15 opportunity for fair hearing, shall affirm, modify, or reverse 16 the decision of the system. The hearing shall be recorded 17 by mechanical means and a transcript of the hearing shall be 18 made. The transcript shall then be made available for use by 19 the employment appeal board and by the courts at subsequent 20 judicial review proceedings under the Iowa administrative 21 procedure Act, chapter 17A , if any. The parties shall be duly 22 notified of the administrative law judge’s decision, together 23 with the administrative law judge’s reasons. The decision is 24 final unless, within thirty days after the date of notification 25 or mailing of the decision, review by the employment appeal 26 board is initiated pursuant to section 97B.27 . 27 Sec. 11. Section 123.32, subsection 6, paragraph b, Code 28 2013, is amended to read as follows: 29 b. Upon receipt of an application having been approved by 30 the local authority, the division shall make an investigation 31 as the administrator deems necessary to determine that the 32 applicant complies with all requirements for holding a license 33 or permit, and may require the applicant to appear to be 34 examined under oath to demonstrate that the applicant complies 35 -7- LSB 1655YH (3) 85 ec/nh 7/ 18

H.F. 262 with all of the requirements to hold a license or permit. If 1 the administrator requires the applicant to appear and to 2 testify under oath, a record shall be made of all testimony or 3 evidence and the record shall become a part of the application. 4 The administrator may appoint a member of the division or may 5 request an administrative law judge employed by the office 6 of administrative hearings created by section 8.71 of the 7 department of inspections and appeals management to receive 8 the testimony under oath and evidence, and to issue a proposed 9 decision to approve or disapprove the application for a license 10 or permit. The administrator may affirm, reverse, or modify 11 the proposed decision to approve or disapprove the application 12 for the license or permit. If the application is approved 13 by the administrator, the license or permit shall be issued. 14 If the application is disapproved by the administrator, the 15 applicant and the appropriate local authority shall be so 16 notified by certified mail. 17 Sec. 12. Section 123.32, subsections 7 and 9, Code 2013, are 18 amended to read as follows: 19 7. Appeal to administrator. An applicant for a liquor 20 control license, wine permit, or beer permit may appeal from 21 the local authority’s disapproval of an application for a 22 license or permit to the administrator. In the appeal the 23 applicant shall be allowed the opportunity to demonstrate in 24 an evidentiary hearing conducted pursuant to chapter 17A that 25 the applicant complies with all of the requirements for holding 26 the license or permit. The administrator may appoint a member 27 of the division or may request an administrative law judge 28 employed by the office of administrative hearings created in 29 section 8.71 from the department of inspections and appeals 30 management to conduct the evidentiary hearing and to render a 31 proposed decision to approve or disapprove the issuance of the 32 license or permit. The administrator may affirm, reverse, or 33 modify the proposed decision. If the administrator determines 34 that the applicant complies with all of the requirements for 35 -8- LSB 1655YH (3) 85 ec/nh 8/ 18

H.F. 262 holding a license or permit, the administrator shall order 1 the issuance of the license or permit. If the administrator 2 determines that the applicant does not comply with the 3 requirements for holding a license or permit, the administrator 4 shall disapprove the issuance of the license or permit. 5 9. Suspension by local authority. A liquor control licensee 6 or a wine or beer permittee whose license or permit has been 7 suspended or revoked or a civil penalty imposed by a local 8 authority for a violation of this chapter or suspended by 9 a local authority for violation of a local ordinance may 10 appeal the suspension, revocation, or civil penalty to the 11 administrator. The administrator may appoint a member of the 12 division or may request an administrative law judge employed 13 by the office of administrative hearings created in section 14 8.71 from the department of inspections and appeals management 15 to hear the appeal which shall be conducted in accordance 16 with chapter 17A and to issue a proposed decision. The 17 administrator may review the proposed decision upon the motion 18 of a party to the appeal or upon the administrator’s own motion 19 in accordance with chapter 17A . Upon review of the proposed 20 decision, the administrator may affirm, reverse, or modify the 21 proposed decision. A liquor control licensee, wine or beer 22 permittee, or a local authority aggrieved by a decision of the 23 administrator may seek judicial review of the decision pursuant 24 to chapter 17A . 25 Sec. 13. Section 123.39, subsection 1, paragraph a, Code 26 2013, is amended to read as follows: 27 a. The administrator or the local authority may suspend 28 a license or permit issued pursuant to this chapter for a 29 period not to exceed one year, revoke the license or permit, 30 or impose a civil penalty not to exceed one thousand dollars 31 per violation. Before suspension, revocation, or imposition 32 of a civil penalty, the license or permit holder shall be 33 given written notice and an opportunity for a hearing. The 34 administrator may appoint a member of the division or may 35 -9- LSB 1655YH (3) 85 ec/nh 9/ 18

H.F. 262 request an administrative law judge employed by the office 1 of administrative hearings created in section 8.71 from the 2 department of inspections and appeals management to conduct 3 the hearing and issue a proposed decision. Upon the motion 4 of a party to the hearing or upon the administrator’s own 5 motion, the administrator may review the proposed decision 6 in accordance with chapter 17A . Upon review of the proposed 7 decision, the administrator may affirm, reverse, or modify the 8 proposed decision. A licensee or permittee aggrieved by a 9 decision of the administrator may seek judicial review of the 10 administrator’s decision in accordance with chapter 17A . 11 Sec. 14. Section 216.15, subsection 3, paragraph a, Code 12 2013, is amended to read as follows: 13 a. After the filing of a verified complaint, a true copy 14 shall be served within twenty days on the person against whom 15 the complaint is filed, except as provided in subsection 4 . 16 An authorized member of the commission staff shall make a 17 prompt investigation and shall issue a recommendation to an 18 administrative law judge employed either by the commission or 19 by the division office of administrative hearings created by 20 section 10A.801 8.71 , who shall then issue a determination of 21 probable cause or no probable cause. 22 Sec. 15. Section 216.15, subsection 6, Code 2013, is amended 23 to read as follows: 24 6. When the director is satisfied that further endeavor to 25 settle a complaint by conference, conciliation, and persuasion 26 is unworkable and should be bypassed, and the thirty-day period 27 provided for in subsection 3 has expired without agreement, the 28 director with the approval of a commissioner, shall issue and 29 cause to be served a written notice specifying the charges in 30 the complaint as they may have been amended and the reasons for 31 bypassing conciliation, if the conciliation is bypassed, and 32 requiring the respondent to answer the charges of the complaint 33 at a hearing before the commission, a commissioner, or a person 34 designated by the commission to conduct the hearing, who is 35 -10- LSB 1655YH (3) 85 ec/nh 10/ 18

H.F. 262 employed by the office of administrative hearings created in 1 section 8.71 and is hereafter referred to as the administrative 2 law judge, and at a time and place to be specified in the 3 notice. 4 Sec. 16. Section 225C.8, subsection 2, Code 2013, is amended 5 to read as follows: 6 2. The department or the county that received the 7 notification, as applicable, shall respond to the party that 8 provided the notification within forty-five days of receiving 9 the notification. If the parties cannot agree to a settlement 10 as to the person’s legal settlement status within ninety days 11 of the date of notification, on motion of any of the parties, 12 the matter shall be referred to the department of inspections 13 and appeals management for a contested case hearing under 14 chapter 17A before an administrative law judge assigned in 15 accordance with section 10A.801 8.71 to determine the person’s 16 legal settlement status. 17 Sec. 17. Section 256B.6, subsection 4, Code 2013, is amended 18 to read as follows: 19 4. Notwithstanding section 17A.11 , the The state board 20 of education shall adopt rules for , consistent with section 21 17A.11, request the appointment of an impartial administrative 22 law judge employed by the office of administrative hearings 23 created in section 8.71 for special education appeals. The 24 rules appointment of an administrative law judge shall comply 25 with federal statutes and regulations. 26 Sec. 18. Section 272.14, Code 2013, is amended to read as 27 follows: 28 272.14 Appointment of administrative law judges. 29 The board shall maintain a list of qualified persons , 30 employed by the office of administrative hearings created in 31 section 8.71, who are experienced in the educational system of 32 this state to serve as administrative law judges when a hearing 33 is requested under section 279.24 . When requested under 34 section 279.24 , the board shall submit a list of five qualified 35 -11- LSB 1655YH (3) 85 ec/nh 11/ 18

H.F. 262 administrative law judges to the parties. The parties shall 1 select one of the five qualified persons to conduct the hearing 2 as provided in section 279.24 . The hearing shall be held 3 pursuant to the provisions of chapter 17A relating to contested 4 cases. The full costs of the hearing shall be shared equally 5 by the parties. 6 Sec. 19. Section 279.24, subsection 5, paragraph c, Code 7 2013, is amended to read as follows: 8 c. Within five days after receipt of the written notice 9 that the school board has voted to consider termination of 10 the contract, the administrator may request in writing to 11 the secretary of the school board that the notification be 12 forwarded to the board of educational examiners along with a 13 request that the board of educational examiners submit a list 14 of five qualified administrative law judges employed by the 15 office of administrative hearings created in section 8.71 to 16 the parties. Within three days from receipt of the list the 17 parties shall select an administrative law judge by alternately 18 removing a name from the list until only one name remains. 19 The person whose name remains shall be the administrative law 20 judge. The parties shall determine by lot which party shall 21 remove the first name from the list. The hearing shall be 22 held no sooner than ten days and not later than thirty days 23 following the administrator’s request unless the parties 24 otherwise agree. If the administrator does not request a 25 hearing, the school board, not later than May 31, may determine 26 the continuance or discontinuance of the contract and, if the 27 board determines to continue the administrator’s contract, 28 whether to suspend the administrator with or without pay for a 29 period specified by the board. School board action shall be by 30 majority roll call vote entered on the minutes of the meeting. 31 Notice of school board action shall be personally delivered or 32 mailed to the administrator. 33 Sec. 20. Section 284.9, subsection 4, Code 2013, is amended 34 to read as follows: 35 -12- LSB 1655YH (3) 85 ec/nh 12/ 18

H.F. 262 4. A teacher who does not receive a recommendation from a 1 review panel may appeal that denial to an administrative law 2 judge employed by the office of administrative hearings created 3 in section 8.71 and located in the department of inspections 4 and appeals management . The state shall not be liable for a 5 teacher’s attorney fees, costs, or damages that may result from 6 an appeal of a review panel’s decision. The state board shall 7 adopt rules to administer this section . 8 Sec. 21. Section 331.394, subsection 5, paragraph c, Code 9 2013, is amended to read as follows: 10 c. The department, county, or region that received the 11 notification, as applicable, shall respond to the party that 12 provided the notification within forty-five days of receiving 13 the notification. If the parties cannot agree to a settlement 14 as to the person’s residency status within ninety days of the 15 date of notification, on motion of any of the parties, the 16 matter shall be referred to the department of inspections and 17 appeals management for a contested case hearing under chapter 18 17A before an administrative law judge assigned in accordance 19 with section 10A.801 8.71 to determine the person’s residency 20 status. 21 Sec. 22. Section 331.394, subsection 6, paragraph c, Code 22 2013, is amended to read as follows: 23 c. The department, county, or region that received the 24 notification, as applicable, shall respond to the party 25 that provided the notification within forty-five days of 26 receiving the notification. If the parties cannot agree to a 27 settlement as to the dispute within ninety days of the date 28 of notification, on motion of any of the parties, the matter 29 shall be referred to the department of inspections and appeals 30 for a contested case hearing under chapter 17A before an 31 administrative law judge assigned in accordance with section 32 10A.801 8.71 to determine facts and issue a decision to resolve 33 the dispute. 34 Sec. 23. Section 453A.2, subsection 6, Code 2013, is amended 35 -13- LSB 1655YH (3) 85 ec/nh 13/ 18

H.F. 262 to read as follows: 1 6. If a county or a city has not assessed a penalty pursuant 2 to section 453A.22, subsection 2 , for a violation of subsection 3 1 , within sixty days of the adjudication of the violation, 4 the matter shall be transferred to and be the exclusive 5 responsibility of the alcoholic beverages division of the 6 department of commerce. Following transfer of the matter, if 7 the violation is contested, the alcoholic beverages division 8 of the department of commerce shall request an administrative 9 hearing before an administrative law judge, assigned by the 10 division office of administrative hearings of the department 11 of inspections and appeals management in accordance with the 12 provisions of section 10A.801 8.71 , to adjudicate the matter 13 pursuant to chapter 17A . 14 Sec. 24. Section 455B.174, subsection 4, paragraph b, Code 15 2013, is amended to read as follows: 16 b. In addition to the requirements of paragraph “a” , a 17 permit shall not be issued to operate or discharge from any 18 disposal system unless the conditions of the permit assure 19 that any discharge from the disposal system meets or will 20 meet all applicable state and federal water quality standards 21 and effluent standards and the issuance of the permit is not 22 otherwise prohibited by the federal Water Pollution Control 23 Act. All applications for discharge permits are subject 24 to public notice and opportunity for public participation 25 including public hearing as the department may by rule require. 26 The director shall promptly notify the applicant in writing 27 of the director’s action and, if the permit is denied, state 28 the reasons for denial. A person who is an applicant or 29 permittee may contest the denial of a permit or any condition 30 of a permit issued by the director if the person notifies the 31 director within thirty days of the director’s notice of denial 32 or issuance of the permit. Notwithstanding section 17A.11, 33 subsection 1 , if the applicant or permittee timely contests 34 the director’s action, the presiding officer in the resulting 35 -14- LSB 1655YH (3) 85 ec/nh 14/ 18

H.F. 262 contested case proceeding shall be an administrative law judge 1 assigned by the division office of administrative hearings 2 pursuant to sections 10A.801 8.71 and 17A.11 . 3 Sec. 25. Section 505.29, Code 2013, is amended to read as 4 follows: 5 505.29 Administrative hearings. 6 The commissioner of insurance shall have the authority 7 to appoint as a hearing officer a designee or an independent 8 administrative law judge. Duties of a hearing officer shall 9 include hearing contested cases arising from conduct governed 10 by chapters 502 , 502A , this chapter , chapters 505A through 11 523G , and 523I . Sections 10A.801 8.71 and 17A.11 do not apply 12 to the appointment of a designee or an administrative law judge 13 pursuant to this section . 14 Sec. 26. Section 724.21A, subsection 1, Code 2013, is 15 amended to read as follows: 16 1. In any case where the sheriff or the commissioner of 17 public safety denies an application for or suspends or revokes 18 a permit to carry weapons or an annual permit to acquire 19 pistols or revolvers, the sheriff or commissioner shall provide 20 a written statement of the reasons for the denial, suspension, 21 or revocation and the applicant or permit holder shall have 22 the right to appeal the denial, suspension, or revocation 23 to an administrative law judge employed by the office of 24 administrative hearings created in section 8.71 in the 25 department of inspections and appeals management within thirty 26 days of receiving written notice of the denial, suspension, or 27 revocation. 28 Sec. 27. Section 903A.1, Code 2013, is amended to read as 29 follows: 30 903A.1 Conduct review. 31 The director of the Iowa department of corrections shall 32 appoint independent administrative law judges whose duties 33 shall include but are not limited to review, as provided in 34 section 903A.3 , of the conduct of inmates in institutions 35 -15- LSB 1655YH (3) 85 ec/nh 15/ 18

H.F. 262 under the department. Sections 10A.801 8.71 and 17A.11 do not 1 apply to administrative law judges appointed pursuant to this 2 section . 3 Sec. 28. REPEAL. Section 10A.801, Code 2013, is repealed. 4 Sec. 29. ADMINISTRATIVE RULES —— TRANSITION PROVISIONS. 5 1. Any rule, regulation, form, order, or directive 6 promulgated by the department of inspections and appeals and 7 the division of administrative hearings as it relates to the 8 division of administrative hearings which is in effect on the 9 effective date of this Act shall continue in full force and 10 effect until amended, repealed, or supplemented by affirmative 11 action of the office of administrative hearings as established 12 in this Act. 13 2. Any personnel in the state merit system of employment 14 who are mandatorily transferred due to the effect of this Act 15 shall be so transferred without any loss in salary, benefits, 16 or accrued years of service. 17 EXPLANATION 18 This bill establishes an office of administrative hearings 19 within the department of management headed by a chief 20 administrative law judge subject to appointment by the governor 21 and confirmation by the senate. 22 Current law provides for a division of administrative 23 hearings within the department of inspections and appeals 24 headed by an administrator appointed by the director of the 25 department. 26 Current duties and authority of the division are transferred 27 to the new office. 28 In addition to moving the division of administrative 29 hearings of the department of inspections and appeals to 30 the new office of administrative hearings in the department 31 of management, the bill also modifies the authority of 32 various governmental entities relative to the appointment of 33 administrative law judges. 34 Code section 20.6, concerning the powers of the public 35 -16- LSB 1655YH (3) 85 ec/nh 16/ 18

H.F. 262 employment relations board, is amended to eliminate the ability 1 of the board to appoint administrative law judges employed by 2 the board. 3 Code section 68B.32C, concerning the ethics and campaign 4 disclosure board, is amended to provide that any administrative 5 law judge used by the board shall be employed by the office 6 created in the bill. 7 Code section 96.6, concerning the filing of unemployment 8 compensation claims, is amended to provide that appeals shall 9 be heard by an administrative law judge employed by the new 10 office and not by the department of workforce development. 11 Code section 261.15, concerning the civil rights commission, 12 is amended to require that an administrative law judge be 13 employed by the new office created in the bill. 14 Code section 256B.6, concerning the department of education 15 and special education, is amended to provide that the 16 appointment of an administrative law judge by the state board 17 of education shall be through the new office of administrative 18 hearings created in the bill. 19 Code sections 272.14 and 279.24, concerning the educational 20 examiners board, are amended to provide that administrative 21 law judges utilized by the board be administrative law judges 22 employed by the new office of administrative hearings created 23 in the bill. 24 Code section 505.29, concerning administrative hearings by 25 the commissioner of insurance, is amended to require that the 26 appointment of an administrative law judge be done consistent 27 with the requirements of the new office of administrative 28 hearings and Code section 17A.11. 29 Code section 903A.1, concerning the appointment of 30 administrative law judges by the department of corrections, is 31 amended to require that the appointment of an administrative 32 law judge be done consistent with the requirements of the new 33 office of administrative hearings and Code section 17A.11. 34 The bill also includes transition provisions governing 35 -17- LSB 1655YH (3) 85 ec/nh 17/ 18