S.F. 149 Section 1. Section 7.17, Code 2017, 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 members of the general assembly, 13 to advise the administrative rules coordinator on rulemaking 14 issues. 15 b. The members of the committee shall not be paid a per diem 16 but shall be reimbursed for travel expenses. 17 Sec. 2. Section 17A.4, subsection 1, paragraph b, Code 2017, 18 is amended to read as follows: 19 b. (1) Afford all interested persons not less than twenty 20 days to submit data, views, or arguments in writing , including 21 in an electronic format . If timely requested in writing by 22 twenty-five interested persons, by a governmental subdivision, 23 by the administrative rules review committee, by an agency, or 24 by an association having not less than twenty-five members, the 25 agency must give interested persons an opportunity to make oral 26 presentation. 27 (2) To the extent practicable, the agency shall provide an 28 opportunity to make these oral presentations using the Iowa 29 communications network or other electronic means and provide 30 public access at multiple sites throughout the state. If 31 a request is received from twenty-five interested persons 32 residing in the same city or county, the agency shall provide 33 an opportunity for oral presentation in that city or county. 34 (3) The opportunity for oral presentation must be held 35 -1- LSB 1579XS (4) 87 je/rj 1/ 11

S.F. 149 at least twenty days after publication of the notice of its 1 time and place in the Iowa administrative bulletin. The 2 agency shall consider fully all written and oral submissions 3 respecting the proposed rule. Within one hundred eighty 4 days following either the notice published according to the 5 provisions of paragraph “a” or within one hundred eighty 6 days after the last date of the oral presentations on the 7 proposed rule, whichever is later, the agency shall adopt a 8 rule pursuant to the rulemaking proceeding or shall terminate 9 the proceeding by publishing notice of termination in the Iowa 10 administrative bulletin. 11 Sec. 3. Section 17A.4, subsection 2, Code 2017, is amended 12 to read as follows: 13 2. An agency shall include in a preamble to each rule 14 it adopts a brief explanation of the principal reasons for 15 its action pursuant to section 17A.5 a concise statement 16 of the principal reasons for and against the rule adopted, 17 incorporating in the statement the reasons for overruling 18 considerations urged against the rule and, if applicable, a 19 brief explanation of the principal reasons for its failure 20 to provide in that the rule for the waiver of the rule in 21 specified situations if no such waiver provision is included 22 in the rule. This explanatory requirement does not apply when 23 the agency adopts a rule that only defines the meaning of a 24 provision of law if the agency does not possess delegated 25 authority to bind the courts to any extent with its definition. 26 In addition, if requested to do so by an interested person, 27 either prior to adoption or within thirty days thereafter, the 28 agency shall issue a concise statement of the principal reasons 29 for and against the rule adopted, incorporating therein the 30 reasons for overruling considerations urged against the rule. 31 This concise statement shall be issued either at the time of 32 the adoption of the rule or within thirty-five days after the 33 agency receives the request. 34 Sec. 4. NEW SECTION . 17A.4B Job impact statement. 35 -2- LSB 1579XS (4) 87 je/rj 2/ 11

S.F. 149 1. a. “Benefit” means the reasonably identifiable and 1 quantifiable positive effect or outcome that is expected to 2 result from implementation of a rule. 3 b. “Cost” means reasonably identifiable, significant, direct 4 or indirect, economic impact that is expected to result from 5 implementation of and compliance with a rule. 6 c. “Cost-benefit analysis” means regulatory analysis 7 to provide the public with transparency regarding the 8 cost-effectiveness of a rule, including the economic costs 9 and benefits and the effectiveness weighed by the agency 10 in adopting the rule. “Cost-benefit analysis” includes a 11 comparison of the probable costs and benefits of a rule to the 12 probable costs and benefits of less intrusive or less expensive 13 methods that exist for achieving the purpose of the rule. 14 d. “Jobs” means private sector employment including 15 self-employment and areas for potential for employment growth. 16 e. “Jobs impact statement” means a statement that does all 17 of the following: 18 (1) Identifies the purpose of a rule and the applicable 19 section of the statute that provides specific legal authority 20 for the agency to adopt the rule. 21 (2) Identifies and describes the cost that the agency 22 anticipates state agencies, local governments, the public, and 23 the regulated entities, including regulated businesses and 24 self-employed individuals, will incur due to implementing and 25 complying with a rule. 26 (3) Determines whether a rule would have a positive 27 or negative impact on private sector jobs and employment 28 opportunities in Iowa. 29 (4) Describes and quantifies the nature of the impact a rule 30 will have on private sector jobs and employment opportunities 31 including the categories of jobs and employment opportunities 32 that are affected by the rule, and the number of jobs or 33 potential job opportunities and the regions of the state 34 affected by the rule. 35 -3- LSB 1579XS (4) 87 je/rj 3/ 11

S.F. 149 (5) Identifies, where possible, the additional costs to 1 employers per employee due to implementing and complying with 2 a rule. 3 (6) Includes other relevant analysis requested by the 4 administrative rules coordinator. 5 2. Prior to implementation of a rule, an agency shall 6 take steps to minimize the adverse impact on jobs and 7 the development of new employment opportunities due to 8 implementation of the rule. 9 3. An agency shall provide a jobs impact statement to the 10 administrative rules coordinator prior to publication of a 11 notice of intended action or the publication of a rule filed 12 without notice pursuant to section 17A.4, subsection 3. 13 4. The jobs impact statement shall be published as part 14 of the preamble to the notice of rulemaking in the Iowa 15 administrative bulletin, unless the administrative rules 16 coordinator determines that publication of the entire jobs 17 impact statement would be unnecessary or impractical. 18 5. An agency shall accept comments and information 19 from stakeholders prior to final preparation of the jobs 20 impact statement. Any concerned private sector employer or 21 self-employed individual, potential employer, potential small 22 business, or member of the public may submit information 23 relating to a jobs impact statement prior to publication of 24 a notice of intended action or publication of a rule filed 25 without notice pursuant to section 17A.4, subsection 3. An 26 agency may request that such information be submitted to the 27 agency. 28 6. If a jobs impact statement is revised after a notice 29 of intended action or a rule filed without notice pursuant to 30 section 17A.4, subsection 3, is published, the revised jobs 31 impact statement shall be published as part of the preamble 32 to the adopted version of the rule, unless the administrative 33 rules coordinator determines that publication of the entire 34 jobs impact statement would be unnecessary or impractical. 35 -4- LSB 1579XS (4) 87 je/rj 4/ 11

S.F. 149 7. The analysis in the jobs impact statement shall give 1 particular weight to jobs in production sectors of the economy 2 which includes the manufacturing and agricultural sectors of 3 the economy and shall include analysis, where applicable, of 4 the impact of the rule on expansion of existing businesses or 5 facilities. 6 8. The administrative rules coordinator may waive the jobs 7 impact statement requirement for rules proposed under section 8 17A.4, subsection 3, or section 17A.5, subsection 2, paragraph 9 “b” , or if unnecessary or impractical. 10 9. By July 1, 2018, and every five years thereafter, an 11 agency shall prepare a comprehensive jobs impact statement 12 for all of the agency’s rules. An agency shall transmit 13 each five-year comprehensive jobs impact statement to the 14 administrative rules coordinator and the administrative rules 15 review committee. An agency shall publish the statement, or a 16 summary, on the internet site established pursuant to section 17 17A.6A. 18 Sec. 5. NEW SECTION . 17A.4C Negotiated rulemaking. 19 1. An agency shall create a negotiated rulemaking group if 20 required by statute. An agency may, on its own motion or upon 21 request, create a negotiated rulemaking group if the agency 22 determines that a negotiated rulemaking group can adequately 23 represent the interests that will be significantly affected by 24 a draft rule proposal and that it is feasible and appropriate 25 in the particular rulemaking. Notice of the creation of a 26 negotiated rulemaking group shall be published in the Iowa 27 administrative bulletin. Upon establishing a negotiated 28 rulemaking group, the agency shall also specify a time frame 29 for group deliberations. 30 2. Unless otherwise provided by statute, the agency shall 31 appoint a sufficient number of members to the group so that 32 a fair cross section of interests and opinions regarding the 33 draft rule proposal is represented. One person shall be 34 appointed to represent the agency. The group shall select its 35 -5- LSB 1579XS (4) 87 je/rj 5/ 11

S.F. 149 own chairperson and adopt its rules of procedure. All meetings 1 of the group shall be open to the public. A majority of the 2 membership constitutes a quorum. Members shall not receive 3 any per diem payment but shall be reimbursed for all necessary 4 expenses. Any vacancy shall be filled in the same manner as 5 the initial appointment. 6 3. Prior to the submission of a notice of intended action 7 to the administrative rules coordinator and the administrative 8 code editor pursuant to section 17A.4, subsection 1, the group 9 shall consider the terms or substance of the rule proposed 10 by the agency and shall attempt to reach a consensus on the 11 advisability of adopting the draft rule proposal. 12 4. If a group reaches a consensus on a draft rule proposal, 13 the group shall transmit to the agency a report containing the 14 consensus on the draft rule proposal. If the group does not 15 reach a consensus on a draft rule proposal within the specified 16 time frame, the group shall transmit to the agency a report 17 stating that inability to reach a consensus and specifying any 18 areas in which the group reached a consensus. The group may 19 include in a report any other information, recommendations, 20 or materials that the group considers appropriate. Any group 21 member may include as an addendum to the report additional 22 information, recommendations, or materials. A report issued 23 under this subsection shall not be considered final agency 24 action for purposes of judicial review. 25 5. Unless otherwise provided by statute, following 26 consideration of a draft rule proposal by a negotiated 27 rulemaking group, the agency may commence rulemaking as 28 provided in section 17A.4. The group is automatically 29 abolished upon the agency’s adoption of the rule pursuant to 30 the provisions of section 17A.5. 31 Sec. 6. Section 17A.7, subsection 2, Code 2017, is amended 32 to read as follows: 33 2. Beginning July 1, 2012, over each five-year period of 34 time, an agency shall conduct an ongoing and comprehensive 35 -6- LSB 1579XS (4) 87 je/rj 6/ 11

S.F. 149 review of all of the agency’s rules. The goal of the review 1 is the identification and elimination of all rules of the 2 agency that are outdated, redundant, or overbroad, ineffective, 3 unnecessary, inconsistent or incompatible with statute or its 4 own rules or those of other agencies , or otherwise undesirable . 5 An agency shall commence its review by developing a plan of 6 review in consultation with major stakeholders and constituent 7 groups. As part of its review, an agency shall review existing 8 policy and interpretive statements or similar documents to 9 determine whether it would be necessary or appropriate to adopt 10 these statements or documents as rules. 11 a. An agency shall establish its five-year plan for 12 review of its rules and publish the plan on the internet site 13 established pursuant to section 17A.6A. 14 b. An agency’s plan for review shall do all of the 15 following: 16 (1) Contain a schedule that lists when the review of each 17 rule or group of rules will occur. 18 (2) State the method by which the agency will analyze 19 the rule under review regarding the considerations listed in 20 paragraph “c” . 21 (3) Provide a means for public participation in the review 22 process and specify how interested persons may participate in 23 the review. 24 (4) Identify instances where the agency may require an 25 exception to the review requirements. 26 (5) Provide a process for ongoing review of rules after the 27 initial five-year review period has expired. 28 c. An agency shall analyze its rules under review by 29 considering all of the following: 30 (1) The need for the rule. 31 (2) The clarity of the rule. 32 (3) The intent and legal authority for the rule. 33 (4) The qualitative and quantitative benefits and costs of 34 the rule. 35 -7- LSB 1579XS (4) 87 je/rj 7/ 11

S.F. 149 (5) The fairness of the rule. 1 d. When the agency completes the five-year review of the 2 agency’s own rules, the agency shall provide a summary of 3 the results to the administrative rules coordinator and the 4 administrative rules review committee. 5 Sec. 7. NEW SECTION . 17A.24 Rule implementation of federal 6 statute, regulation, or policy. 7 1. Except as otherwise explicitly authorized by state law, 8 an agency charged with the implementation of a federal statute, 9 regulation, or policy shall not implement the federal statute, 10 regulation, or policy in a manner that exceeds the specific 11 requirements of the federal statute, regulation, or policy. 12 2. Any portion of an agency rule or policy that implements 13 a federal statute, regulation, or policy and that exceeds the 14 specific requirements of the federal statute, regulation, or 15 policy is automatically superseded by the specific requirements 16 of that federal statute, regulation, or policy. 17 Sec. 8. ENVIRONMENTAL REGULATION STUDY. 18 1. The legislative council, in consultation with the 19 department of natural resources, shall establish a study to 20 analyze the projected financial effects of current and proposed 21 United States environmental protection agency regulations and 22 Iowa department of natural resources rules on Iowa cities over 23 a ten-year period. 24 2. The study should include an analysis of projected 25 financial costs of such regulations and rules on a hypothetical 26 small Iowa community, medium-sized Iowa community, and large 27 Iowa community. 28 3. The study shall be concluded by June 30, 2018, and a 29 report shall be provided to the members of the general assembly 30 and to the governor. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill relates to the review of administrative rules and 35 -8- LSB 1579XS (4) 87 je/rj 8/ 11

S.F. 149 the rulemaking process. 1 CITIZENS’ ADVISORY COMMITTEE. The bill requires that the 2 administrative rules coordinator create a citizens’ committee, 3 to advise the administrative rules coordinator on rulemaking 4 issues. The members of the committee shall not be paid a per 5 diem but shall be reimbursed for travel expenses. 6 RULEMAKING HEARINGS THROUGHOUT STATE. The bill requires 7 administrative agencies, to the extent practicable, to hold 8 rulemaking hearings in varied locations throughout the state 9 via the Iowa communications network or other electronic means. 10 The bill provides that a hearing must be held in a particular 11 city or county when 25 interested persons from that city or 12 county so request. 13 PRINCIPAL REASONS FOR AND AGAINST RULE. The bill requires 14 that every adopted rule must be accompanied by a concise 15 statement of the principal reasons for and against the rule 16 adopted. Under current law such a statement is only provided 17 on request. 18 JOBS IMPACT STATEMENTS. The bill requires that every 19 proposed rule under a notice of intended action or publication 20 without notice contain a jobs impact statement which outlines 21 the purpose and statutory authority of the rule and analyzes 22 and sets out in detail the impact of the proposed rule on state 23 agencies, local governments, the public, and the regulated 24 entities, including regulated businesses and self-employed 25 individuals affected by the rule. The statement must also 26 determine whether a proposed rule would have a positive 27 or negative impact on private sector jobs and employment 28 opportunities. 29 Commencing July 1, 2018, and every five years thereafter, 30 each agency shall prepare a jobs impact statement for all of 31 the agency’s rules. 32 As part of this requirement, an agency is required to 33 takes steps to minimize the adverse impact on jobs and the 34 development of new employment opportunities before proposing 35 -9- LSB 1579XS (4) 87 je/rj 9/ 11

S.F. 149 a rule. 1 The administrative rules coordinator may waive the jobs 2 impact statement requirement for rules filed using emergency 3 rulemaking procedures or if unnecessary or impractical. 4 NEGOTIATED RULEMAKING GROUPS. If required by statute, this 5 bill requires an agency to create a negotiated rulemaking group 6 to review draft rule proposals prior to filing a notice of 7 intended action pursuant to Code section 17A.4, subsection 1. 8 Where a statute does not require this review, the bill allows 9 an agency to create such a review group. Members are appointed 10 by the agency and the composition must adequately represent 11 a fair cross section of interests and opinions regarding the 12 rule. Once such a group is created, the agency may only 13 commence rulemaking after the group has considered the draft 14 rule proposal in question. 15 FIVE-YEAR CYCLE OF AGENCY REVIEW OF RULES. Current 16 law requires that each state agency review all of its 17 administrative rules on a five-year cycle. The bill provides 18 additional procedures and criteria for such reviews. 19 FEDERAL LAW IMPLEMENTATION. The bill also provides that 20 state implementation of a federal statute, regulation, 21 or policy by a state agency shall not exceed the specific 22 requirements of the federal statute, regulation, or 23 policy, except as specifically allowed by state law. Any 24 portion of a state rule or policy that implements a federal 25 statute, regulation, or policy and that exceeds the specific 26 requirements of the federal statute, regulation, or policy is 27 automatically superseded by the specific requirements of that 28 federal statute, regulation, or policy. 29 ENVIRONMENTAL RULES STUDY. The bill provides that the 30 legislative council, in consultation with the department of 31 natural resources, shall establish a study to analyze the 32 projected financial effects of current and proposed United 33 States environmental protection agency regulations and Iowa 34 department of natural resources rules on Iowa cities over a 35 -10- LSB 1579XS (4) 87 je/rj 10/ 11