House File 254 - Introduced HOUSE FILE 254 BY JACOBSEN and BACON A BILL FOR An Act requiring rescission of existing regulations by state 1 agencies when new regulations are adopted, providing for 2 approval by the department of management of rulemaking, 3 providing related procedures, and including effective date 4 and applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1483YH (3) 89 je/rn

H.F. 254 Section 1. NEW SECTION . 17A.24 Required rescission 1 of regulations —— approval of rule filings by department of 2 management —— report. 3 1. Definitions. For purposes of this section: 4 a. “Department” means the department of management. 5 b. “Notice of intended action” includes an amended notice 6 of intended action. 7 c. “Regulation” means a rule as described in the preface 8 to the Iowa administrative bulletin and does not include a 9 subrule or other subunit or an entry designated in the Iowa 10 administrative code as reserved or rescinded. 11 d. “Rule filing” means a notice of intended action pursuant 12 to section 17A.4, subsection 1, paragraph “a” , a rule filed 13 without notice pursuant to section 17A.4, subsection 3, or a 14 rule adopted pursuant to section 17A.5. 15 2. Required rescission of regulations. 16 a. A rule filing that would add one or more regulations to 17 the Iowa administrative code shall also rescind a number of 18 regulations equal to at least twice the number of regulations 19 added. If a regulation is rescinded and adopted anew in the 20 same rule filing, the rescission of the prior rule shall count 21 as one of the two required rescissions for purposes of this 22 paragraph. 23 b. The department shall ensure that compliance with 24 paragraph “a” is not accomplished solely by reorganizing or 25 redesignating existing regulations by combining regulations or 26 redesignating regulations as subrules or other subunits of the 27 Iowa administrative code. The department may disapprove any 28 rule filing submitted pursuant to subjection 3 that appears to 29 be drafted so as to circumvent the requirements of paragraph 30 “a” . 31 c. This subsection does not apply to rule filings submitted 32 to the department pursuant to subsection 3 by an agency 33 within three years of the effective date of the statute that 34 established the agency. 35 -1- LSB 1483YH (3) 89 je/rn 1/ 8

H.F. 254 3. Submission of rules to department of management. Before 1 an agency submits a rule filing to the administrative rules 2 coordinator and the administrative code editor pursuant to 3 section 17A.4 or 17A.5, the agency shall submit the rule filing 4 to the department for approval. The department shall prescribe 5 procedures for making such submissions. The agency may include 6 with the submission any additional information that may assist 7 the department in making a determination pursuant to subsection 8 5. 9 4. Regulatory baseline statement. The agency shall include 10 a regulatory baseline statement with a rule filing submitted to 11 the department pursuant to subsection 3. The department shall 12 not approve a rule filing that does not include a regulatory 13 baseline statement. The department shall post all regulatory 14 baseline statements received on the department’s internet 15 site. A regulatory baseline statement shall contain all of the 16 following information: 17 a. The applicable portion of the statute that provides 18 specific legal authority for the agency to adopt the rule 19 filing. 20 b. The purpose of the rule filing. 21 c. If the rule filing would add one or more regulations to 22 the Iowa administrative code, a list of the regulations to be 23 added as well as the regulations to be rescinded in compliance 24 with subsection 2. In lieu of such a list, the agency may 25 include a request for exemption from subsection 2 pursuant to 26 subsection 7. 27 5. Evaluation by department of management. In determining 28 whether to approve a rule filing, the department, in 29 consultation with the administrative rules coordinator, shall 30 evaluate the rule filing and included regulatory baseline 31 statement using all of the following criteria: 32 a. Whether the rule filing is the only effective and 33 necessary means to achieve the desired outcome, including an 34 analysis of all of the following: 35 -2- LSB 1483YH (3) 89 je/rn 2/ 8

H.F. 254 (1) Whether the rule filing complements and does not 1 duplicate existing rules. 2 (2) Whether the rule filing would be simple to administer 3 in terms of both enforcement by the agency and compliance by 4 any regulated persons. 5 b. The degree to which the rule filing or related rules 6 or agency procedures include performance measures that are 7 directly related to the desired outcome, including but not 8 limited to a provision establishing periodic review to ensure 9 intended outcomes or a provision providing for the rescission 10 of the rule filing or related rules upon a determination that 11 the rule filing or related rules no longer achieve the desired 12 original outcomes. 13 c. The inclusion of clear justifications for the 14 implementation of the rule filing, including the development 15 or existence of implementation processes for the rule filing, 16 which processes: 17 (1) Are transparent and easily accessible by the public. 18 (2) Contain appropriate, modern methods of public 19 notification. 20 (3) Are written in plain language. 21 (4) Are designed to allow citizens and businesses to clearly 22 understand their rights and obligations under the rule filing. 23 d. Whether the rule filing is the most cost-effective means 24 to achieve the desired outcome and to what extent the benefits 25 of the rule filing are greater than the burdens it imposes. 26 e. A determination that the rule filing does not have 27 a detrimental effect on the state’s economy, including a 28 determination that all of the following apply to the rule 29 filing: 30 (1) The rule filing does not have a negative effect on the 31 economic competitiveness of the state. 32 (2) The rule filing is not more difficult to comply with 33 than similar regulatory requirements in similarly situated 34 states. 35 -3- LSB 1483YH (3) 89 je/rn 3/ 8

H.F. 254 (3) The rule filing is compatible with the following 1 strategic goals for this state: 2 (a) Promoting equal application of regulatory requirements 3 for all affected businesses and industries. 4 (b) Increased job creation. 5 (c) Increased economic growth. 6 f. Whether the rule filing is specifically required by a 7 provision of law. 8 6. Approval by department of management. If the department 9 approves a rule filing, the agency shall submit the rule filing 10 to the administrative rules coordinator and the administrative 11 code editor pursuant to section 17A.4 or 17A.5, as applicable. 12 If the department does not approve a rule filing, the 13 department shall provide the agency with a written explanation 14 for its disapproval. 15 7. Exemptions. 16 a. An agency may include a request for exemption from the 17 requirements of subsection 2 or 5 or both with its submission 18 to the department pursuant to subsection 3. The request shall 19 include a detailed justification for the exemption. The 20 department shall only grant an exemption if the department 21 determines that the exemption is necessary to protect the 22 health, safety, or welfare of the citizens of this state. 23 b. An agency that receives an exemption from subsection 2 24 for a rule filing that is not a notice of intended action shall 25 subsequently adopt rules that rescind regulations sufficient 26 to meet the requirements of subsection 2 for the exempted rule 27 filing. If an agency does not do so, all regulations added to 28 the Iowa administrative code in the exempted rule filing are 29 void three years from the date of publication of the exempted 30 filing in the Iowa administrative bulletin. An agency shall 31 designate in the regulatory baseline statement included with a 32 subsequent rule filing the regulations rescinded in compliance 33 with this paragraph. 34 c. If the department grants an exemption from subsection 5 35 -4- LSB 1483YH (3) 89 je/rn 4/ 8

H.F. 254 for a rule filing, the department shall complete a subsequent 1 review of the rule filing based on the criteria provided in 2 subsection 5 within two weeks. If the department determines 3 that the rule filing did not satisfy the criteria provided in 4 subsection 5, all regulations added to the Iowa administrative 5 code in the exempted rule filing are void three years from 6 the date of publication of the exempted filing in the Iowa 7 administrative bulletin. 8 d. If a rule filing receives an exemption pursuant to 9 this section, the department shall provide the agency’s 10 request for exemption and the department’s determination to 11 the administrative rules coordinator and the administrative 12 code editor. The exemption and determination shall be 13 published as part of the preamble to the rule filing in the 14 Iowa administrative bulletin unless the administrative code 15 editor determines that publication of the entire exemption and 16 determination would be unnecessary or impractical. 17 8. Report. The department shall by November 1 each year, 18 beginning in 2022, submit a report to the general assembly and 19 the governor on the total number of regulations included in 20 the Iowa administrative code, including a calculation of the 21 change in the total from November 1 of the previous year. The 22 report shall include any recommendations for amendments to this 23 section. 24 9. Technical assistance by legislative services agency. The 25 legislative services agency shall provide the department 26 with information regarding the Iowa administrative code 27 and technical assistance as necessary to facilitate the 28 implementation of this section. 29 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 30 importance, takes effect upon enactment. 31 Sec. 3. APPLICABILITY. This Act applies to rule filings, 32 as defined in section 17A.24, subsection 1, as enacted by this 33 Act, submitted for publication in the Iowa administrative 34 bulletin beginning in volume XLIV, number 7, dated October 6, 35 -5- LSB 1483YH (3) 89 je/rn 5/ 8

H.F. 254 2021. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 This bill relates to procedures for rulemaking by executive 5 branch agencies under Code chapter 17A, the Iowa administrative 6 procedure Act. 7 The bill provides that a rule filing that would add one 8 or more regulations to the Iowa administrative code shall 9 also rescind a number of regulations equal to at least twice 10 the number of regulations added. The bill specifies that if 11 a regulation is rescinded and adopted anew in the same rule 12 filing, the rescission of the prior rule shall count as one 13 of the two required rescissions. This requirement does not 14 apply to rule filings by an agency within three years of the 15 effective date of the statute that established the agency. 16 The bill defines “regulation” as a rule as described in the 17 preface to the Iowa administrative bulletin, not including a 18 subrule or other subunit or an entry designated in the Iowa 19 administrative code as reserved or rescinded. The bill defines 20 “rule filing” as a notice of intended action, a rule filed 21 without notice, or an adopted rule. 22 The bill requires that an agency, before submitting a 23 rule filing to the administrative rules coordinator and the 24 administrative code editor as required under current law, 25 to submit the rule filing to the department of management 26 for approval. The bill requires that the department ensure 27 compliance with the requirement to rescind a number of 28 regulations equal to at least twice the number of regulations 29 added in a rule filing is not accomplished solely by 30 reorganizing or redesignating existing regulations. The bill 31 authorizes the department to disapprove any rule filing that 32 appears to be drafted so as to circumvent the requirement. 33 The bill requires an agency to include a regulatory 34 baseline statement with the submission. The bill prohibits 35 -6- LSB 1483YH (3) 89 je/rn 6/ 8

H.F. 254 the department from approving a rule filing that does not 1 include such a statement. The statement shall include the 2 applicable portion of the statute that provides specific legal 3 authority for the agency to adopt the rule filing, the purpose 4 of the rule filing, and, if the rule filing would add one or 5 more regulations to the Iowa administrative code, a list of 6 the regulations to be added as well as the regulations to be 7 rescinded in compliance with the bill. In lieu of such a list, 8 the agency may include a request for exemption as provided in 9 the bill. 10 The bill provides criteria for evaluation of rule filings by 11 the department, in consultation with the administrative rules 12 coordinator, in determining whether to provide approval. The 13 criteria relate to effectiveness and necessity, performance 14 measures, clear justifications, cost effectiveness, economic 15 impact, and whether the regulations are specifically required 16 by a provision of law. 17 If the department approves a rule filing, the agency shall 18 submit the rule filing to the administrative rules coordinator 19 and the administrative code editor as required under current 20 law. If the department does not approve a rule filing, the 21 department shall provide the agency with a written explanation 22 for its disapproval. 23 The bill provides a process for an agency to request an 24 exemption from the department from the requirement to rescind 25 a number of regulations equal to at least twice the number 26 of regulations added in a rule filing, the requirement for 27 an evaluation of the rule filing by the department, or both. 28 The request shall include a detailed justification for the 29 exemption. The department shall only grant an exemption if 30 the department determines that the exemption is necessary to 31 protect the health, safety, or welfare of the citizens of 32 Iowa. The bill provides additional procedural requirements for 33 rule filings that receive such exemptions. If the additional 34 procedural requirements are not met, regulations contained in 35 -7- LSB 1483YH (3) 89 je/rn 7/ 8

H.F. 254 such rule filings are void three years after publication in 1 the Iowa administrative bulletin. The exemption request and 2 the department’s determination regarding the request shall be 3 published in the Iowa administrative bulletin. 4 The bill requires the department to submit an annual 5 report to the general assembly and the governor by November 1 6 beginning in 2022 on the total number of regulations included 7 in the Iowa administrative code, including a calculation of the 8 change in the total from November 1 of the previous year. The 9 report shall include any recommendations regarding changes to 10 the bill. 11 The report requires the legislative services agency to 12 provide the department with information regarding the Iowa 13 administrative code and technical assistance as necessary to 14 facilitate the implementation of the bill. 15 The bill takes effect upon enactment. The bill applies to 16 rule filings, as defined in the bill, submitted for publication 17 in the Iowa administrative bulletin beginning in volume XLIV, 18 number 7, dated October 6, 2021. 19 -8- LSB 1483YH (3) 89 je/rn 8/ 8