S.F. 2396 Section 1. Section 2B.13, subsection 2, Code 2020, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . 0f. Update the address, telephone number, 3 facsimile number, or electronic mail address of an agency, 4 officer, or other entity. 5 Sec. 2. Section 17A.4, subsections 4 and 6, Code 2020, are 6 amended to read as follows: 7 4. Any notice of intended action or rule filed without 8 notice pursuant to subsection 3 this section or section 17A.5 , 9 which that necessitates additional annual expenditures of at 10 least one hundred thousand dollars or combined expenditures 11 of at least five hundred thousand dollars within five years 12 by all affected persons, including the agency itself, shall 13 be accompanied by a fiscal impact statement outlining the 14 expenditures. The agency shall promptly deliver a copy of 15 the statement to the legislative services agency. To the 16 extent feasible, the legislative services agency shall analyze 17 the statement and provide a summary of that analysis to the 18 administrative rules review committee. If the agency has 19 made a good-faith effort to comply with the requirements of 20 this subsection , the rule shall not be invalidated on the 21 ground that the contents of the statement are insufficient or 22 inaccurate. 23 6. a. If the administrative rules review committee created 24 by section 17A.8 , the governor, or the attorney general finds 25 objection to all or some portion of a proposed or adopted rule 26 because that rule is deemed to be unreasonable, arbitrary, 27 capricious, or otherwise beyond the authority delegated to the 28 agency, the committee, governor, or attorney general may, in 29 writing, notify the agency of the objection. In the case of a 30 rule issued under filed without notice pursuant to subsection 31 3 , or a rule made effective under section 17A.5, subsection 2 , 32 paragraph “b” , the committee, governor, or attorney general 33 may notify the agency of such an objection. The committee, 34 governor, or attorney general shall also file a certified 35 -1- LSB 5495SV (2) 88 je/rn 1/ 10

S.F. 2396 copy of such an objection in the office of the administrative 1 code editor and a notice to the effect that an objection has 2 been filed shall be published in the next issue of the Iowa 3 administrative bulletin and in the Iowa administrative code 4 when that rule is printed in it. The burden of proof shall 5 then be on the agency in any proceeding for judicial review or 6 for enforcement of the rule heard subsequent to the filing to 7 establish that the rule or portion of the rule timely objected 8 to according to the above procedure is not unreasonable, 9 arbitrary, capricious, or otherwise beyond the authority 10 delegated to it. 11 b. If the agency fails to meet the burden of proof 12 prescribed for a rule objected to according to the provisions 13 of paragraph “a” , the court shall declare the rule or portion 14 of the rule objected to invalid and judgment shall be rendered 15 against the agency for court costs. Such court costs shall 16 include a reasonable attorney fee and shall be payable by the 17 director of the department of administrative services from the 18 support appropriations of the agency which issued adopted the 19 rule in question. 20 Sec. 3. Section 17A.4, subsection 7, Code 2020, is amended 21 by striking the subsection. 22 Sec. 4. Section 17A.5, subsection 2, paragraph b, 23 subparagraph (2), Code 2020, is amended to read as follows: 24 (2) In any subsequent action contesting the effective date 25 of a rule promulgated adopted under this paragraph “b” , the 26 burden of proof shall be on the agency to justify its finding. 27 The agency’s finding and a brief statement of the reasons 28 therefor shall be filed with and made a part of the rule. Prior 29 to indexing and publication, the agency shall make reasonable 30 efforts to make known to the persons who may be affected by it a 31 rule made effective under the terms of this paragraph “b” . 32 Sec. 5. Section 17A.6, Code 2020, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 3. In lieu of the procedures established in 35 -2- LSB 5495SV (2) 88 je/rn 2/ 10

S.F. 2396 subsection 2, an agency may establish alternative procedures 1 providing for public access to an electronic or printed copy of 2 a publication containing standards adopted by reference if the 3 publication is proprietary or contains proprietary information. 4 Sec. 6. Section 17A.6A, subsection 2, paragraph c, Code 5 2020, is amended to read as follows: 6 c. Process forms and instructions for filing a petition 7 for rulemaking pursuant to section 17A.7 , a petition for a 8 declaratory order pursuant to section 17A.9 , or a petition for 9 a waiver or variance of an administrative rule pursuant to 10 section 17A.9A . 11 Sec. 7. Section 17A.7, subsection 1, Code 2020, is amended 12 to read as follows: 13 1. An interested person may petition an agency requesting 14 the adoption, amendment, or repeal of a rule. Each agency 15 shall prescribe by rule the form for petitions and the 16 procedure for their submission, consideration, and disposition. 17 Within sixty days after submission of a petition, the agency 18 either shall deny the petition in writing on the merits, 19 stating its reasons for the denial, or initiate rulemaking 20 proceedings in accordance with section 17A.4 , or issue adopt a 21 rule if it is not required to be issued filed according to the 22 procedures of section 17A.4, subsection 1 . The agency shall 23 submit the petition and the disposition of the petition to the 24 administrative rules review committee. 25 Sec. 8. Section 17A.8, subsections 2, 5, and 9, Code 2020, 26 are amended to read as follows: 27 2. A committee member shall be appointed prior to as of 28 the adjournment convening of a regular session convened in an 29 odd-numbered year. The term of office for a member of the 30 house of representatives shall be for four years beginning May 31 1 end upon the convening of the year of appointment general 32 assembly following the appointment . The term of office 33 for a member of the senate shall end upon the convening of 34 the general assembly after the general assembly following 35 -3- LSB 5495SV (2) 88 je/rn 3/ 10

S.F. 2396 appointment. However, a member shall serve until a successor 1 is appointed. A vacancy on the committee shall be filled 2 by the original appointing authority for the remainder of 3 the term. A vacancy shall exist whenever a committee member 4 ceases to be a member of the house from which the member was 5 appointed. 6 5. A regular committee meeting shall be held at the seat 7 of government on the second Tuesday of each month or on 8 an alternative date established by the committee . Unless 9 impracticable, in advance of each such meeting the subject 10 matter to be considered shall be published in the Iowa 11 administrative bulletin. A special committee meeting may be 12 called by the chairperson at any place in the state and at 13 any time. Unless impracticable, in advance of each special 14 meeting notice of the time and place of such meeting and the 15 subject matter to be considered shall be published in the Iowa 16 administrative bulletin. 17 9. a. Upon a vote of two-thirds of its members, the 18 administrative rules review committee may delay the effective 19 date of a rule or portion of a rule until the adjournment 20 of the next regular session of the general assembly, unless 21 the rule was promulgated adopted under section 17A.5, 22 subsection 2 , paragraph “b” . If the rule was promulgated 23 adopted under section 17A.5, subsection 2 , paragraph “b” , the 24 administrative rules review committee, within thirty-five days 25 of the effective date publication of the rule in the Iowa 26 administrative bulletin and upon the vote of two-thirds of its 27 members, may suspend the applicability of the rule or portion 28 of the rule until the adjournment of the next regular session 29 of the general assembly. 30 b. The committee shall refer a rule or portion of a rule 31 whose effective date has been delayed or applicability has 32 been suspended to the speaker of the house of representatives 33 and the president of the senate who shall refer the delayed 34 or suspended rule or portion of the rule to the appropriate 35 -4- LSB 5495SV (2) 88 je/rn 4/ 10

S.F. 2396 standing committees of the general assembly. A standing 1 committee shall review the rule within twenty-one days after 2 the rule is referred to the committee by the speaker of the 3 house of representatives or the president of the senate and 4 shall take formal committee action by sponsoring a joint 5 resolution to disapprove nullify the rule, by proposing 6 legislation relating to the rule, or by refusing to propose 7 a joint resolution or legislation concerning the rule. The 8 standing committee shall inform the administrative rules review 9 committee of the committee action taken concerning the rule. 10 If the general assembly has not disapproved of nullified the 11 rule by a joint resolution, the rule shall become effective 12 upon the adjournment of the session of the general assembly . 13 The speaker of the house of representatives and the president 14 of the senate shall notify the administrative code editor of 15 the final disposition of each rule or portion of a rule whose 16 effective date has been delayed or whose applicability has 17 been suspended pursuant to this subsection . If the rule is 18 disapproved, the rule shall not be effective and the agency 19 shall rescind the rule. 20 Sec. 9. Section 17A.8, Code 2020, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 10. a. Upon the vote of two-thirds of 23 its members, the administrative rules review committee may 24 delay the effective date of a rule or portion of a rule seventy 25 days beyond that permitted in section 17A.5, unless the rule 26 was adopted under section 17A.5, subsection 2, paragraph “b” . 27 If the rule was adopted under section 17A.5, subsection 2, 28 paragraph “b” , the administrative rules review committee, 29 within thirty-five days of the publication of the rule in the 30 Iowa administrative bulletin and upon the vote of two-thirds 31 of its members, may suspend the applicability of the rule or 32 portion of the rule for seventy days. 33 b. Notice of an effective date that was delayed under this 34 provision shall be published in the Iowa administrative code 35 -5- LSB 5495SV (2) 88 je/rn 5/ 10

S.F. 2396 and bulletin. 1 Sec. 10. Section 17A.9A, Code 2020, is amended to read as 2 follows: 3 17A.9A Waivers and variances . 4 1. Any person may petition an agency for a waiver or 5 variance from the requirements of a rule, pursuant to the 6 requirements of this section , if the agency has established 7 by rule an application, evaluation, and issuance procedure 8 permitting waivers and variances . An agency shall not grant a 9 petition for waiver or a variance of a rule unless the agency 10 has jurisdiction over the rule and the waiver or variance 11 is consistent with any applicable statute, constitutional 12 provision, or other provision of law. In addition, this 13 section does not authorize an agency to waive or vary any 14 requirement created or duty imposed by statute. 15 2. Upon petition of a person, an agency may in its sole 16 discretion issue a waiver or variance from the requirements 17 of a rule if the agency finds, based on clear and convincing 18 evidence, all of the following: 19 a. The application of the rule would pose an undue hardship 20 on the person for whom the waiver or variance is requested. 21 b. The waiver or variance from the requirements of a rule 22 in the specific case would not prejudice the substantial legal 23 rights of any person. 24 c. The provisions of a rule subject to a petition for a 25 waiver or variance are not specifically mandated by statute or 26 another provision of law. 27 d. Substantially equal protection of public health, 28 safety, and welfare will be afforded by a means other than 29 that prescribed in the particular rule for which the waiver or 30 variance is requested. 31 3. The burden of persuasion rests with the person who 32 petitions an agency for the waiver or variance of a rule. Each 33 petition for a waiver or variance shall be evaluated by the 34 agency based on the unique, individual circumstances set out 35 -6- LSB 5495SV (2) 88 je/rn 6/ 10

S.F. 2396 in the petition. A waiver or variance , if granted, shall be 1 drafted by the agency so as to provide the narrowest exception 2 possible to the provisions of the rule. The agency may 3 place any condition on a waiver or a variance that the agency 4 finds desirable to protect the public health, safety, and 5 welfare. A waiver or variance shall not be permanent, unless 6 the petitioner can show that a temporary waiver or variance 7 would be impracticable. If a temporary waiver or variance is 8 granted, there is no automatic right to renewal. At the sole 9 discretion of the agency, a waiver or variance may be renewed 10 if the agency finds all of the factors set out in subsection 2 11 remain valid. 12 4. A grant or denial of a waiver or variance petition shall 13 be indexed, filed, and available for public inspection as 14 provided in section 17A.3 . The administrative code editor and 15 the administrative rules coordinator shall devise a mechanism 16 an internet site to identify rules for which a petition for a 17 waiver or variance has been granted or denied and make this 18 information available to the public. When an agency grants a 19 waiver, the agency shall submit the information required by 20 this subsection on the internet site within sixty days. The 21 internet site 22 5. Semiannually, each agency which permits the granting 23 of petitions for waivers or variances shall prepare a report 24 of these actions identifying identify the rules for which a 25 waiver or variance has been granted or denied, the number of 26 times a waiver or variance was granted or denied for each rule, 27 a citation to the statutory provisions implemented by these 28 rules, and a general summary of the reasons justifying the 29 agencies’ actions on the waiver or variance request. To the 30 extent practicable, this report the agency shall detail include 31 information detailing the extent to which the granting of a 32 waiver or variance has established a precedent for additional 33 waivers or variances and the extent to which the granting of 34 a waiver or variance has affected the general applicability 35 -7- LSB 5495SV (2) 88 je/rn 7/ 10

S.F. 2396 of the rule itself. Copies of this report shall be provided 1 semiannually to the administrative rules coordinator and the 2 administrative rules review committee. 3 6. 5. For purposes of this section , “a waiver or variance ” 4 means an agency action which suspends in whole or in part 5 the requirements or provisions of a rule as applied to an 6 identified person on the basis of the particular circumstances 7 of that person. 8 Sec. 11. Section 17A.22, Code 2020, is amended to read as 9 follows: 10 17A.22 Agency authority to implement chapter. 11 Agencies shall have all the authority necessary to comply 12 with the requirements of this chapter through the issuance 13 adoption of rules or otherwise. 14 Sec. 12. TRANSITION PROVISIONS —— MEMBERSHIP OF 15 ADMINISTRATIVE RULES REVIEW COMMITTEE. Notwithstanding section 16 17A.8, subsection 2, as amended by this Act, the terms of 17 members of the administrative rules review committee as of the 18 effective date of this Act shall continue until the convening 19 of the 2021 regular session of the general assembly. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill relates to the administrative rulemaking process 24 under Code chapter 17A, the Iowa administrative procedure Act. 25 The bill allows the administrative code editor to update the 26 address, telephone number, facsimile number, or electronic mail 27 address of an agency, officer, or other entity when preparing 28 the copy for an edition of the Iowa administrative code or Iowa 29 administrative bulletin. 30 The bill provides that all rule filings that necessitate 31 additional annual expenditures of at least $100,000 or 32 combined expenditures of at least $500,000 within five years 33 by all affected persons, including the agency itself, shall 34 be accompanied by a fiscal impact statement outlining the 35 -8- LSB 5495SV (2) 88 je/rn 8/ 10

S.F. 2396 expenditures, which is then analyzed by the legislative 1 services agency. Current law provides that only notices of 2 intended action and rules filed without notice are subject to 3 this requirement. 4 The bill authorizes an agency to establish alternative 5 procedures for providing public access to an electronic or 6 printed copy of a publication containing standards adopted by 7 reference in rulemaking if the publication is proprietary or 8 contains proprietary information. Current statutory procedures 9 provide for publication on the general assembly’s internet site 10 or depositing a printed copy in the state law library. 11 The bill requires agencies to submit petitions for 12 rulemaking and the disposition of such petitions to the 13 administrative rules review committee (ARRC). 14 The bill modifies the terms of office of ARRC members 15 by providing that terms for members of the house of 16 representatives commence at the convening of a regular session 17 convened in an odd-numbered year and end at the convening of 18 the following general assembly. Terms for members of the 19 senate commence at the convening of a regular session convened 20 in an odd-numbered year and end at the convening of the general 21 assembly after the following general assembly. Under current 22 law terms of office for all members last four years commencing 23 on May 1 with appointments made prior to the adjournment of a 24 regular session convened in an odd-numbered year. The bill 25 provides that current terms of ARRC members continue until the 26 convening of the 2021 regular session of the general assembly. 27 The bill provides that the ARRC may establish an alternative 28 date for its regular monthly meeting. 29 The bill authorizes the ARRC to suspend the applicability 30 of emergency rules filed using the procedure provided in Code 31 section 17A.5, subsection 2, paragraph “b”, subparagraph 1, 32 within 35 days of the publication of the rule in the Iowa 33 administrative bulletin. Under current law, the ARRC may do so 34 within 35 days of the rule’s effective date. 35 -9- LSB 5495SV (2) 88 je/rn 9/ 10

S.F. 2396 The bill revises language on procedures relating to delays 1 of effective dates of rules and suspension of applicability of 2 rules by the ARRC until the adjournment of the next regular 3 session of the general assembly by replacing references to 4 joint resolutions disapproving of rules with references to 5 nullification of rules. 6 The bill transfers language authorizing the delay of 7 effective dates of rules and suspension of applicability of 8 rules by the ARRC for 70 days from Code section 17A.4 to Code 9 section 17A.8. 10 The bill modifies requirements for waiver or variance of 11 rules by agencies by striking references to variances. The 12 bill strikes a requirement that agencies submit semiannual 13 reports on waivers of rules to the administrative rules 14 coordinator and the administrative rules review committee. The 15 bill requires that agencies submit information regarding a 16 waiver on an internet site devised by the administrative rules 17 coordinator within 60 days of granting or denying the waiver. 18 The bill standardizes terminology referring to adoption of 19 rules throughout Code chapter 17A. 20 -10- LSB 5495SV (2) 88 je/rn 10/ 10