House File 415 - Introduced HOUSE FILE 415 BY GUSTOFF A BILL FOR An Act relating to interpretation of law in administrative and 1 judicial proceedings under the Iowa administrative procedure 2 Act. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2492YH (1) 90 je/rn

H.F. 415 Section 1. Section 17A.19, subsection 10, paragraph c, Code 1 2023, is amended to read as follows: 2 c. Based upon an erroneous interpretation of a provision 3 of law whose interpretation has not clearly been vested by a 4 provision of law in the discretion of the agency . 5 Sec. 2. Section 17A.19, subsection 10, paragraph l, Code 6 2023, is amended by striking the paragraph. 7 Sec. 3. Section 17A.19, subsection 11, Code 2023, is amended 8 by striking the subsection. 9 Sec. 4. Section 17A.23, Code 2023, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 5. Notwithstanding any provision of 12 the Code to the contrary, a court, or a presiding officer 13 in a contested case or other administrative action subject 14 to this chapter, when interpreting a state statute or a rule 15 or other agency document subject to this chapter, shall not 16 defer to an agency’s interpretation of the statute, rule, or 17 document, and must instead interpret its meaning and effect 18 de novo. In an action brought by or against an agency, the 19 court or officer, after applying all customary tools of 20 interpretation, must exercise any remaining doubt in favor 21 of a reasonable interpretation that limits agency power and 22 maximizes individual liberty. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 This bill concerns the interpretation of law in 27 administrative and judicial proceedings under Code chapter 17A, 28 the Iowa administrative procedure Act. 29 Under current law, a court must reverse, modify, or grant 30 other appropriate relief from agency action in specified 31 circumstances if it determines that substantial rights of the 32 person seeking relief have been prejudiced. Such circumstances 33 include agency action based upon an irrational, illogical, 34 or wholly unjustifiable interpretation of a provision of law 35 -1- LSB 2492YH (1) 90 je/rn 1/ 2

H.F. 415 whose interpretation has clearly been vested by a provision 1 of law in the discretion of the agency. If interpretation 2 of the provision of law has not been clearly vested in the 3 discretion of the agency, the standard of review is instead 4 whether the agency’s interpretation is erroneous. Current law 5 also provides guidance to a court regarding the determination 6 of the degree of deference to be given to the view of an agency, 7 based on whether a provision of law has vested the agency with 8 discretion over the matter in question. The bill strikes these 9 provisions and instead provides that a court must reverse, 10 modify, or grant other appropriate relief from agency action 11 based upon an erroneous interpretation of a provision of law. 12 The bill additionally prohibits a court, or a presiding 13 officer in a contested case or other administrative action 14 subject to Code chapter 17A, when interpreting a state statute 15 or a rule or other agency document subject to Code chapter 16 17A, from deferring to an agency’s interpretation of the 17 statute, rule, or document, and instead requires the court 18 or officer to interpret its meaning and effect de novo. The 19 bill requires the court or officer, in an action brought by 20 or against an agency, after applying all customary tools of 21 interpretation, to exercise any remaining doubt in favor of 22 a reasonable interpretation that limits agency power and 23 maximizes individual liberty. 24 -2- LSB 2492YH (1) 90 je/rn 2/ 2