SF 2370 (LSB 5103SV (1) 90)

SENATE FILE 2370

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO SSB 3119)

A BILL FOR

An Act concerning the executive branch rulemaking process and other agency functions and related matters.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
RULEMAKING AND RELATED MATTERS

    Section 1.  Section 2B.5A, subsection 4, Code 2024, is amended by striking the subsection.
    Sec. 2.  Section 8A.206, subsection 2, paragraph b, Code 2024, is amended to read as follows:
   b.  Maintain, as an integral part of the law library, reports of various boards and agencies,; copies of journals of the senate and house of representatives; electronic access to bills, journals, and other information relating to current or proposed legislation, copies of; and electronic access to the Iowa administrative bulletin and Iowa administrative code and, consistent with section 17A.6, subsection 3, copies of any publications incorporated by reference in the bulletin or code.
    Sec. 3.  Section 10A.506, subsection 10, Code 2024, is amended by striking the subsection.
    Sec. 4.  Section 17A.3, subsection 1, paragraphs a, b, and c, Code 2024, are amended by striking the paragraphs.
    Sec. 5.  Section 17A.4, subsection 1, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   Prior to the adoption, amendment, or repeal of any rule an agency shall submit the proposed rulemaking for preclearance to the administrative rules coordinator in the manner prescribed by the administrative rules coordinator and do all of the following:
    Sec. 6.  Section 17A.4, subsection 3, paragraph a, Code 2024, is amended to read as follows:
   a.  When the statute so provides, or with the approval of the administrative rules review committee, if the committee finds good cause that notice and public participation would be unnecessary, impracticable, or contrary to the public interest, the provisions of subsection 1 shall be inapplicable.  However, the requirement for prior submission to the administrative rules coordinator for preclearance shall remain applicable.
    Sec. 7.  Section 17A.4A, subsections 1 and 5, Code 2024, are amended to read as follows:
   1.  An agency shall issue a regulatory analysis of a proposed rule that complies with subsection 2, paragraph paragraphs “a” and “b”, if, within thirty-two days after the published notice of proposed rule adoption, a written request for the analysis is submitted to the agency by the administrative rules review committee or the administrative rules coordinator. An agency shall issue a regulatory analysis of a proposed rule that complies with subsection 2, paragraph “b”, if the rule would have a substantial impact on small business and if, within thirty-two days after the published notice of proposed rule adoption, a written request for analysis is submitted to the agency by the administrative rules review committee, the administrative rules coordinator, at least twenty-five persons signing that request who each qualify as a small business or by an organization representing at least twenty-five such persons. If a rule has been adopted without prior notice and an opportunity for public participation in reliance upon prior to submitting a notice of intended action to the administrative rules coordinator and the administrative code editor pursuant to section 17A.4, subsection 3 1, the written request for an analysis that complies with subsection 2, paragraph “a” or “b”, may be made within seventy days of publication of the rule.
   5.  The agency shall not submit a notice of intended action to the administrative rules coordinator and the administrative code editor pursuant to section 17A.4, subsection 1, paragraph “a”, for a proposed rule until the conclusion of the opportunity for oral presentation required by subsection 4 and preclearance by the administrative rules coordinator as required by section 17A.4, subsection 1.  In the case of a rule adopted without prior notice and an opportunity for public participation in reliance upon section 17A.4, subsection 3, the summary must be published within agency shall have until seventy days of after the request adoption to submit a regulatory analysis as described in subsection 4 for publication in the Iowa administrative bulletin.  If a rule adopted in reliance upon section 17A.4, subsection 3, will be published in the Iowa administrative bulletin concurrently with a corresponding notice of intended action, a separate regulatory analysis for the notice of intended action is not required.
    Sec. 8.  Section 17A.4A, subsection 2, paragraph a, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   Except to the extent that a written request for a regulatory analysis expressly waives one or more of the following, the The regulatory analysis must contain all of the following:
    Sec. 9.  Section 17A.4A, subsection 4, Code 2024, is amended by striking the subsection and inserting in lieu thereof the following:
   4.  The agency shall submit the regulatory analysis to the administrative code editor, who shall publish it in the Iowa administrative bulletin. The regulatory analysis shall include a statement of either the terms or substance of the agency’s intended action or a description of the subjects and issues involved. The agency shall afford all interested persons not less than twenty days to submit data, views, or arguments in writing, and the regulatory analysis shall include the time when, the place where, and the manner in which interested persons may do so. The agency shall give interested persons an opportunity to make oral presentation on the regulatory analysis. The opportunity for oral presentation shall be held at least twenty days after publication of its time and place in the Iowa administrative bulletin.
    Sec. 10.  Section 17A.4A, subsection 6, Code 2024, is amended by striking the subsection.
    Sec. 11.  Section 17A.6, subsection 3, Code 2024, is amended to read as follows:
   3.  An agency that adopts standards by reference to another publication shall deliver a printed copy of post the publication, or the relevant part of the publication, containing the standards to the administrative code editor who shall deposit the copy in the state law library which shall make it available for inspection and reference on the agency’s internet site. The agency may instead deposit a printed copy of the publication, or the relevant part of the publication, in the state law library directly An agency shall not post a link for this purpose to an internet site that is not maintained by the agency.  If a posted publication or part of a publication varies from the publication or part adopted by reference as described in subsection 5, the adoption by reference described in subsection 5 shall control. This subsection does not apply to a publication that is a federal statute or regulation.
    Sec. 12.  Section 17A.7, subsection 2, Code 2024, is amended to read as follows:
   2.  Beginning July January 1, 2012 2027, over each five-year period of time, an each agency shall conduct an ongoing and comprehensive review of all of the agency’s rules. The goal of the review is the identification and elimination of all rules of the agency that are outdated, redundant, or inconsistent or incompatible with statute or its own rules or those of other agencies. An Over each five-year period of time, an agency shall commence its review by developing a plan of review in consultation with major stakeholders and constituent groups perform a retrospective analysis that includes a comprehensive evaluation and rigorous cost-benefit analysis of each existing chapter of rules to determine whether the benefits the rules are intended to achieve are being realized, whether those benefits justify the costs imposed by the rules, and whether there are less restrictive alternatives to accomplish those benefits. When the agency completes the five-year review of the agency’s own rules, the agency shall provide a written summary of the results to the administrative rules coordinator and the administrative rules review committee.  The summary shall include all of the following for each chapter of rules:
   a.  The intended benefits of the rules and if the benefits are being achieved.
   b.  The costs imposed by the rules and if the costs are justified by the benefits identified in paragraph “a”.
   c.  Less restrictive alternatives to the rules and an analysis of how other states regulate the activities addressed by the chapter.
    Sec. 13.  Section 17A.7, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  3.  a.  Each chapter of rules is rescinded five years after the date on which the chapter as a whole became effective. A chapter rescinded in this manner ceases to be effective as of the date of rescission. Before or after such rescission occurs, the agency that adopted the chapter may adopt the chapter anew after completing a retrospective analysis as described in subsection 2. Such adoption shall be subject to this chapter. An agency adopting a chapter anew as described in this subsection shall do so from a zero base. Adoption of a chapter anew as described in this subsection shall not include notation in a rulemaking document published in the Iowa administrative bulletin of additions to or deletions from the language of the prior chapter. For purposes of this subsection, “zero base” means adoption of a chapter anew without merely adopting the prior language of the chapter and without any presumption in favor of utilizing the prior language when the chapter is adopted anew.
   b.  The effective date of adoption, amendment, or rescission of individual rules or portions of rules in a chapter, and the date of any changes to the chapter or rules or portions of rules in the chapter pursuant to section 2B.13, shall not be considered when determining the effective date of the chapter as a whole for purposes of this subsection. The date of rescission of a chapter under paragraph “a” shall not be altered if such date falls on a Saturday, Sunday, or holiday.
   c.  (1)  If a chapter has been rescinded under this subsection, the agency that adopted the chapter shall notify the administrative code editor in writing of the rescission. The administrative rules coordinator may notify the administrative code editor in writing on behalf of the agency. 
   (2)  As soon as practicable after receiving such notification, the administrative code editor shall publish notice of the rescission in the Iowa administrative bulletin and, no sooner than two weeks after such publication, remove the chapter from the Iowa administrative code.
   d.  When a chapter of rules becoming effective as a whole is published in the Iowa administrative code, the administrative code editor shall include the next rescission date of the chapter, as provided in this subsection, with the chapter.
   e.  For a chapter of rules that most recently became effective as a whole prior to January 1, 2023, the effective date of the chapter shall be deemed January 1, 2023, for purposes of this subsection. For a chapter that most recently became effective as a whole on or after January 1, 2023, the date of rescission pursuant to this subsection shall be based on the most recent effective date of the chapter as a whole.
    Sec. 14.  Section 17A.19, subsection 10, paragraphs b, c, l, and m, Code 2024, are amended to read as follows:
   b.  Beyond the authority explicitly delegated to the agency by any provision of law or in violation of any provision of law.
   c.  Based upon an erroneous interpretation of a provision of law whose interpretation has not clearly explicitly been vested by a provision of law in the discretion of the agency.
   l.  Based upon an irrational, illogical, or wholly unjustifiable interpretation of a provision of law whose interpretation has clearly explicitly been vested by a provision of law in the discretion of the agency.
   m.  Based upon an irrational, illogical, or wholly unjustifiable application of law to fact that has clearly explicitly been vested by a provision of law in the discretion of the agency.
    Sec. 15.  Section 17A.19, subsection 11, paragraphs a, b, and c, Code 2024, are amended to read as follows:
   a.  Shall not give any deference to the view of the agency with respect to whether particular matters have been explicitly vested by a provision of law in the discretion of the agency.
   b.  Should not give any deference to the view of the agency with respect to particular matters that have not been explicitly vested by a provision of law in the discretion of the agency.
   c.  Shall give appropriate deference to the view of the agency with respect to particular matters that have been explicitly vested by a provision of law in the discretion of the agency.
    Sec. 16.  Section 17A.23, subsections 3 and 4, Code 2024, are amended to read as follows:
   3.  a.  An agency shall have only that authority or discretion explicitly delegated to or explicitly conferred upon the agency by law and shall not expand or enlarge its authority or discretion beyond the powers explicitly delegated to or explicitly conferred upon the agency. Unless otherwise specifically explicitly provided in statute, a grant of rulemaking authority shall be construed narrowly.
   b.  Rulemaking authority is explicitly delegated to or explicitly conferred on an agency as follows:
   (1)  An agency may adopt rules interpreting the provisions of any statute enforced or administered by the agency if a statute explicitly grants the agency rulemaking authority over the statutory provision; however, a rule is not valid if the rule exceeds the bounds of correct interpretation. All of the following apply to the adoption of a rule interpreting the provisions of a statute enforced or administered by an agency:
   (a)  A statutory or nonstatutory provision containing a statement or declaration of legislative intent, purpose, findings, or policy does not delegate rulemaking authority to or confer rulemaking authority on the agency, or augment the agency’s rulemaking authority, beyond the rulemaking authority that is explicitly delegated to or explicitly conferred on the agency by a statute.
   (b)  A statutory provision describing the agency’s general powers or duties does not delegate rulemaking authority to or confer rulemaking authority on the agency, or augment the agency’s rulemaking authority, beyond the rulemaking authority that is explicitly delegated to or explicitly conferred on the agency by a statute.
   (c)  A statutory provision containing a specific standard, requirement, or threshold does not delegate to or confer on the agency the authority to adopt, enforce, or administer a rule that contains a standard, requirement, or threshold that is more restrictive than the standard, requirement, or threshold contained in the statutory provision.
   (2)  An agency may prescribe forms and procedures in connection with any statute enforced or administered by the agency if the agency considers such prescription necessary to effectuate the purpose of the statute, but this subparagraph does not authorize the imposition of a substantive requirement in connection with a form or procedure.
   (3)  An agency authorized to exercise discretion in deciding individual cases may formalize the general policies evolving from the agency’s decisions by adopting the general policies as rules that the agency shall follow until such rules are amended or repealed. A rule adopted in accordance with this subparagraph is valid only to the extent that the agency has discretion to base an individual decision on the policy expressed in the rule.
   (4)  An agency may adopt rules implementing or interpreting a statute that the agency will enforce or administer after enactment of the statute but prior to the statute’s effective date. A rule adopted under this subparagraph shall not take effect prior to the effective date of the statute that the rule implements or interprets.
   4.  An agency shall not implement or enforce any standard, requirement, or threshold, including any term or condition of a permit or license issued by the agency, unless that standard, requirement, or threshold is clearly explicitly required or clearly explicitly permitted by a state statute, rule adopted pursuant to this chapter, or a federal statute or regulation, or is explicitly required by a court ruling, a state or federal executive order, a state or federal directive that would result in the gain or loss of specific funding, or a federal waiver.
    Sec. 17.  NEW SECTION.  17A.24  Uniform rules on agency procedure.
   1.  The administrative rules coordinator may adopt uniform rules on agency procedure that are suitable for general applicability to agencies. Such adoption and such rules shall be subject to this chapter. Such rules may address the subjects of agency procedures for rulemaking, petitions for rulemaking, waiver of rules, declaratory orders, contested cases, and fair information practices.
   2.  If an agency does not have rules in effect that address a subject provided in subsection 1, and uniform rules on agency procedure addressing the subject are in effect, such uniform rules shall apply to the agency as though the agency had adopted them.
   3.  An agency may adopt rules providing for additions, exceptions, or amendments to a uniform rule on agency procedure that, pursuant to subsection 2, is applicable to the agency.
   4.  This section does not apply to uniform rules on agency procedure published prior to January 1, 2024, and does not affect the validity of rules that have adopted such uniform rules by reference.
   5.  The attorney general shall assist the administrative rules coordinator in implementation of this section upon request.
    Sec. 18.  Section 89.5, subsection 3, Code 2024, is amended by striking the subsection.
    Sec. 19.  Section 89A.3, subsection 5, Code 2024, is amended by striking the subsection.
    Sec. 20.  Section 455B.173, subsection 2, Code 2024, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  Rules adopted to implement this subsection are not subject to section 17A.7, subsection 2 or 3.
    Sec. 21.  Section 543D.5, subsection 5, Code 2024, is amended to read as follows:
   5.  Notwithstanding any provision to the contrary, the provisions in section 10A.506, subsections 6 through 9, 11, and 12, shall apply to the board and to activities governed under this chapter.
DIVISION II
EXECUTIVE BRANCH AGENCY FUNCTIONS

    Sec. 22.  Section 7D.29, subsection 2, paragraph b, Code 2024, is amended to read as follows:
   b.  The notification requirement specified in paragraph “a” is not applicable to a request for the expenditure of disaster aid from the contingent fund created in section 29C.20 or to a request for the expenditure of disaster aid individual assistance grant funds pursuant to section 29C.20A.
    Sec. 23.  Section 29A.27, subsection 6, paragraph a, Code 2024, is amended to read as follows:
   a.  All payments provided for under this section shall be paid on the approval of the adjutant general from the contingent fund of the executive council department created in section 29C.20.
    Sec. 24.  Section 29C.20, subsection 1, paragraph a, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   A contingent fund is created in the state treasury for the use of the executive council department. Funding for the contingent fund, if authorized by the executive council, shall be paid from the appropriations addressed in section 7D.29. Moneys in the contingent fund may be expended for the following purposes:
    Sec. 25.  Section 29C.20, subsection 1, paragraph a, subparagraph (6), subparagraph division (b), Code 2024, is amended to read as follows:
   (b)  Upon application by a governmental subdivision in such an area, accompanied by a showing of obligations and expenditures necessitated by an actual or potential disaster in a form and with further information the executive council department requires, the aid may be made in the discretion of the executive council department and, if made, shall be in the nature of a loan up to a limit of seventy-five percent of the showing of obligations and expenditures. The loan, without interest, shall be repaid by the maximum annual emergency levy authorized by section 24.6, or by the appropriate levy authorized for a governmental subdivision not covered by section 24.6. The aggregate total of loans shall not exceed one million dollars during a fiscal year. A loan shall not be for an obligation or expenditure occurring more than two years previous to the application.
    Sec. 26.  Section 29C.20, subsection 1, paragraph b, Code 2024, is amended to read as follows:
   b.  When a state department or agency requests that moneys from the contingent fund be expended to repair, rebuild, or restore state property injured, destroyed, or lost by fire, storm, theft, or unavoidable cause, or to repair, rebuild, or restore state property that is fiberoptic cable and that is injured or destroyed by a wild animal, or to purchase a police service dog for the department of corrections when such a dog is injured or destroyed, or for payment of the expenses incurred by and claims of a homeland security and emergency response team when acting under the authority of section 29C.8, the executive council department shall consider the original source of the funds for acquisition of the property before authorizing the expenditure. If the original source was other than the general fund of the state, the department or agency shall be directed to utilize moneys from the original source if possible. The executive council department shall not authorize the repairing, rebuilding, or restoring of the property from the disaster aid contingent fund if it determines that moneys from the original source are available to finance the project.
    Sec. 27.  Section 29C.20, subsections 2, 3, 4, and 5, Code 2024, are amended to read as follows:
   2.  The proceeds of such loan shall be applied toward the payment of costs and obligations necessitated by such actual or potential disaster and the reimbursement of local funds from which such expenditures have been made. Any such project for repair, rebuilding, or restoration of state property for which no specific appropriation has been made, shall, before work is begun, be subject to approval or rejection by the executive council department.
   3.  If the president of the United States, at the request of the governor, has declared a major disaster to exist in this state, the executive council department may make financial grants to meet disaster-related necessary expenses, serious needs, or hazard mitigation projects of local governments and eligible private nonprofit agencies adversely affected by the major disaster if those expenses or needs cannot otherwise be met from other means of assistance. The amount of the grant shall not exceed ten percent of the total eligible expenses and is conditional upon the federal government providing at least seventy-five percent for public assistance grants and at least fifty percent for hazard mitigation grants of the eligible expenses.
   4.  If the president, at the request of the governor, has declared a major disaster to exist in this state, the executive council department may make financial grants to meet disaster-related necessary expenses or serious needs of individuals or families adversely affected by a major disaster which cannot otherwise adequately be met from other means of assistance. The amount of a financial grant shall not exceed the maximum federal authorization in the aggregate to an individual or family in any single major disaster declared by the president. All grants authorized to individuals and families will be subject to the federal government providing no less than seventy-five percent of each grant and the declaration of a major disaster in the state by the president of the United States.
   5.  If the president, at the request of the governor, has declared a major disaster to exist in this state, the executive council department may lease or purchase sites and develop such sites to accommodate temporary housing units for disaster victims.
    Sec. 28.  Section 103.31, subsection 6, Code 2024, is amended to read as follows:
   6.  The board shall establish an internet-based licensure verification database for access by a state or local inspector for verification of licensee status. The database shall include the name of every person licensed under this chapter and a corresponding licensure number.  However, the licensee’s home address, home telephone number, and other personal information as determined by rule shall be confidential. Inspectors shall be authorized to request the name and license number of any person working at a job site subject to inspection for verification of licensee status. Licensees under this chapter shall be required to carry a copy of their current license and photo identification at all times when employed on a job site for compliance with this subsection.
    Sec. 29.  Section 105.20, subsection 5, paragraph a, Code 2024, is amended to read as follows:
   a.  The board shall establish continuing education requirements pursuant to section 272C.2. The basic continuing education requirement for renewal of a license shall be the completion, during the immediately preceding license term, of the number of classroom hours of instruction required by the board in courses or seminars which have been approved by the board. The board shall require at least eight classroom hours of instruction during each three-year licensing term.
    Sec. 30.  Section 256.7, subsection 6, Code 2024, is amended to read as follows:
   6.  Hear appeals of persons aggrieved by decisions of boards of directors of school corporations under chapter 290 and other appeals prescribed by law in a manner consistent with chapter 17A. The state board may review the record and shall review the proposed decision of the director of the department of education or the administrative law judge employed by the division of administrative hearings created by section 10A.801 and designated for any appeals heard and decided by the director under chapter 290 pursuant to section 17A.15, subsection 3, and may affirm, modify, or vacate the decision, or may direct a rehearing before the director.
    Sec. 31.  Section 272C.1, subsection 6, Code 2024, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  ag.  The real estate appraiser examining board, created pursuant to chapter 543D.
    Sec. 32.  Section 272C.2, subsection 1, Code 2024, is amended to read as follows:
   1.  Each licensing board shall may require and issue rules for continuing education requirements as a condition to license renewal.
    Sec. 33.  Section 272C.2, subsection 2, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   The rules shall may create continuing education requirements at a minimum level prescribed by each licensing board. These boards may also establish continuing education programs to assist a licensee in meeting such continuing education requirements. Such If adopted, such rules shall also:
    Sec. 34.  Section 290.5, Code 2024, is amended to read as follows:
   290.5  Decision of state board —— rules for appeals.
   The decision of the state board shall be final. The state board may adopt rules of procedure for hearing appeals which shall include the power to delegate the actual hearing of the appeal to the director of the department of education or the director’s designee, and members of the director’s staff designated by the director. The record of appeal so heard shall be available to the state board, and, if required by section 256.7, subsection 6, the decision recommended by the director of the department of education or the designated administrative law judge shall be approved by the state board in the manner provided in section 256.7, subsection 6 therein.
    Sec. 35.  Section 450.6, subsection 2, Code 2024, is amended by striking the subsection.
    Sec. 36.  Section 455B.133, subsections 1 and 2, Code 2024, are amended to read as follows:
   1.  Develop comprehensive plans and programs for the abatement, control, and prevention of air pollution in this state, recognizing varying requirements for different areas in the state. The plans may include emission limitations, schedules and timetables for compliance with the limitations, measures to prevent the significant deterioration of air quality and other measures as necessary to assure attainment and maintenance of ambient air quality standards.  The commission is not required to use air dispersion modeling as a basis for making its findings under this subsection for a minor source or minor modification of a major stationary source unless modeling is specifically provided for under the federal Clean Air Act as amended through January 1, 1991, rules adopted under this chapter, or a federal or state agreement.
   2.  Adopt, amend, or repeal rules pertaining to the evaluation, abatement, control, and prevention of air pollution. The rules may include those that are necessary to obtain approval of the state implementation plan under section 110 of the federal Clean Air Act as amended through January 1, 1991.  The commission is not required to adopt rules that use air dispersion modeling for a minor source or minor modification of a major stationary source unless modeling is specifically required by the federal Clean Air Act as amended through January 1, 1991, or a federal or state agreement.
    Sec. 37.  Section 455B.134, subsection 3, Code 2024, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  g.  The department is not required to use air dispersion modeling as a basis for making its findings under this subsection for a minor source or minor modification of a major stationary source unless modeling is specifically provided for under the federal Clean Air Act as amended through January 1, 1991, rules adopted under this chapter, or a federal or state agreement.
    Sec. 38.  Section 509A.5, subsection 2, Code 2024, is amended to read as follows:
   2.  Any interest earnings from investments or time deposits of the funds under the control of the state executive council department of administrative services shall be deposited to the credit of these funds.
    Sec. 39.  Section 509A.11, subsection 1, Code 2024, is amended to read as follows:
   1.  “Governing body” means the executive council of the state director of the department of administrative services, the school boards of school districts, and the superintendent or other person in charge of an institution supported in whole or in part by public funds.
    Sec. 40.  Section 543D.7, Code 2024, is amended to read as follows:
   543D.7  Certification process.
   Applications for original certification, renewal certification, and examinations shall be made in writing to the board on forms approved by through the board board’s electronic system.
    Sec. 41.  Section 543D.9, Code 2024, is amended to read as follows:
   543D.9  Education and experience requirement.
   The board shall determine what real estate appraisal or real estate appraisal review experience and what education shall be required to provide appropriate assurance that an applicant for certification is competent to perform the certified appraisal work which is within the scope of practice defined by the board. All experience required for initial certification shall be performed as a registered associate real estate appraiser acting under the direct supervision of a certified real estate appraiser who meets the supervisory requirements established by applicable federal authorities or federal law, rule, or policy in effect at the time the hours of experience are claimed, except as the board may provide by rule. Subject to requirements or limitations established by applicable federal authorities or federal law, rule, or policy, hours qualifying for experience in a bordering state will be considered qualifying hours for experience in this state without requiring a waiver or authorization from the board in accordance with rules and standards adopted by the board, as long as a majority of qualifying hours are completed in this state. Qualifying hours completed in a bordering state shall be under the direct supervision of a certified real estate appraiser with active certification in that bordering state. The board shall prescribe a required minimum number of tested hours of education relating to the provisions of this chapter, the uniform appraisal standards, and other rules issued in accordance with this chapter.
    Sec. 42.  Section 543D.13, Code 2024, is amended to read as follows:
   543D.13  Principal place of business.
   1.  Each certified real estate appraiser shall advise the board of the address of the appraiser’s principal place of business and all other addresses at which the appraiser is currently engaged in the business of preparing real estate appraisal reports.
   2.  When a certified real estate appraiser changes the appraiser’s principal place of business, the appraiser shall immediately give written notification of the submit an application for a change to the board and apply for an amended certificate of address through the board’s electronic system.
   3.  Each certified real estate appraiser shall notify the board of the appraiser’s current residence address. Residence addresses on file with the board are exempt from disclosure as public records unless the residence address is the address of the appraiser’s principal place of business.
    Sec. 43.  Section 543D.14, Code 2024, is amended to read as follows:
   543D.14  Certificate.
   A certificate issued under this chapter shall bear the signature or facsimile signature name of the member or names of the members of the board as designated by the board and a certificate number assigned by the board.
    Sec. 44.  Section 543D.16, subsections 2 and 3, Code 2024, are amended to read as follows:
   2.  The basic continuing education requirement for renewal of certification shall be the completion, before June 30 of the year in which the appraiser’s certificate expires, of the number of hours of instruction required by the appraiser qualifications board of the appraisal foundation in courses or seminars which have received the preapproval of the board. 
   3.  The provisions of section 272C.2, subsection 4, shall only apply to a certified real estate appraiser or an associate real estate appraiser to the extent consistent with the policies adopted by the appraisal appraiser qualifications board of the appraisal foundation.
    Sec. 45.  Section 543D.20, subsection 1, paragraph c, Code 2024, is amended to read as follows:
   c.  The person is solely providing administrative services, such as taking photographs, preparing charts, or typing reports, and is not providing real estate appraisal assistance in developing the analysis, valuation, opinions, or conclusions associated with the appraisal assignment.  Such a person shall only enter a dwelling if supervised by the appraiser.
    Sec. 46.  Section 543D.20, subsection 2, Code 2024, is amended to read as follows:
   2.  The board shall establish by rule the terms and conditions of the registration of associate real estate appraisers, including the educational and other prerequisites to registration, the fees for registration and the renewal of registration, and the continuing education requirements for renewal of registration. The board shall consider and may incorporate any guidelines recommended by the appraisal appraiser qualifications board of the appraisal foundation relating to associate real estate appraisers.
    Sec. 47.  Section 543D.22, subsection 1, paragraph a, Code 2024, is amended to read as follows:
   a.  Subject to paragraphs “b” and “c”, the board may require a national criminal history check through the federal bureau of investigation for applicants for certification or registration, or for persons certified or registered under this chapter, if needed for credibility, to comply with federal law or regulation, or the policies of the appraisal qualification appraiser qualifications board of the appraisal foundation. The board may alternatively require a national criminal history check through the nationwide mortgage licensing system and registry, as defined in section 535D.3, when conducting background investigations under this section, if authorized by applicable federal law or regulation.
    Sec. 48.  Section 668A.1, subsection 2, paragraph b, Code 2024, is amended to read as follows:
   b.  If the answer or finding pursuant to subsection 1, paragraph “b”, is negative, and if the claim is not against any physician and surgeon, osteopathic physician and surgeon, dentist, podiatric physician, optometrist, pharmacist, chiropractor, physician assistant, or nurse, licensed under chapter 147, or a hospital licensed under chapter 135B, arising out of patient care, and if the claim is not part of a civil action involving the operation of a commercial motor vehicle, then after payment of all applicable costs and fees, an amount not to exceed twenty-five percent of the punitive or exemplary damages awarded may be ordered paid to the claimant, with the remainder of the award to be ordered paid into a civil reparations trust fund administered by the state court administrator. Funds placed in the civil reparations trust shall be under the control and supervision of the executive council equally distributed each fiscal year to the department of health and human services and the department of insurance and financial services, and shall be disbursed only for purposes of indigent civil litigation programs or insurance assistance programs.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill concerns the executive branch rulemaking process and other agency functions and related matters.
   DIVISION I —— EXECUTIVE BRANCH RULEMAKING AND RELATED MATTERS.
   PRECLEARANCE OF RULEMAKING. The division requires that agencies submit proposed rulemaking to the administrative rules coordinator for preclearance in the manner prescribed by the administrative rules coordinator before the rulemaking is submitted for publication in the Iowa administrative bulletin (bulletin) as a notice of intended action. This requirement also applies to rules adopted without prior notice and an opportunity for public participation (emergency rules).
   REGULATORY ANALYSIS OF RULES. The division modifies procedures and requirements for regulatory analyses of proposed rules under Code section 17A.4A. The division requires that agencies issue regulatory analyses of all proposed rules, rather than upon request of specified entities as required under current law. The division requires that before a notice of intended action is published in the bulletin, the agency shall submit a regulatory analysis of the content of the notice for publication in the bulletin. The regulatory analysis must include a statement of either the terms or substance of the agency’s intended action or a description of the subjects and issues involved. The regulatory analysis must also provide 20 days for interested persons to submit data, views, or arguments in writing and give interested persons an opportunity to make oral presentation that is held at least 20 days after publication of the time and place in the bulletin.
   An agency shall not submit a notice of intended action for publication in the bulletin until the conclusion of the opportunity for oral presentation and preclearance by the administrative rules coordinator. In the case of an emergency rule, the agency shall have until 70 days after the adoption to submit a regulatory analysis for publication in the bulletin. If an emergency rule will be published in the bulletin concurrently with a corresponding notice of intended action, a separate regulatory analysis for the notice is not required.
   MATERIALS IN STATE LAW LIBRARY —— ADOPTIONS BY REFERENCE.  The division strikes a requirement that printed copies of publications containing standards adopted by reference by agencies, other than federal statutes and regulations, be deposited in the state law library. The division instead requires an agency to post such materials on the agency’s internet site. The division prohibits posting a link for this purpose to an internet site that is not maintained by the agency. If a posted publication or part of a publication varies from the publication or part as adopted by reference by an agency under current law, the adoption by reference shall control, rather than the post by the agency.
   The division additionally provides that the state law library shall maintain electronic access to the Iowa administrative bulletin, Iowa administrative code, bills, and other information relating to current or proposed legislation, rather than paper copies of such materials as required by current law.
   FIVE-YEAR REVIEW AND RESCISSION OF RULES. The division modifies the ongoing five-year review of rules required under Code section 17A.7, subsection 2. The division changes the beginning of the review period from July 1 to January 1. The division requires that the review include a retrospective analysis that includes a comprehensive evaluation and rigorous cost-benefit analysis of each existing chapter of rules as specified in the division. The division specifies content that must be included in review summaries, which relates to costs, benefits, and less restrictive alternatives to the rules. The division strikes a requirement that agencies commence the review by developing a plan of review in consultation with major stakeholders and constituent groups.
   The division establishes a process for ongoing rescission of rules in the Iowa administrative code. The division provides that each chapter of rules is rescinded five years after the date on which the chapter as a whole became effective. A chapter rescinded in this manner ceases to be effective as of the date of rescission. Before or after the rescission, the agency that adopted the chapter may adopt the chapter anew after completing a retrospective analysis as described in the division. An agency adopting a chapter anew shall do so from a zero base, which is defined as adoption of a chapter anew without merely adopting the prior language of the chapter and without any presumption in favor of utilizing the prior language when the chapter is adopted anew. Adoption of a chapter anew shall not include notation in a rulemaking document published in the bulletin of additions to or deletions from the language of the prior chapter.
   The division provides that the effective date of adoption, amendment, or rescission of individual rules or portions of rules in a chapter shall not be considered when determining the effective date of the chapter as a whole for purposes of the ongoing rescission process. 
   If a chapter has been rescinded under this process, the agency that adopted the chapter shall notify the administrative code editor in writing of the rescission. The administrative rules coordinator may notify the administrative code editor in writing on behalf of the agency. As soon as practicable after receiving such notification, the administrative code editor shall publish notice of the rescission in the bulletin and, no sooner than two weeks after such publication, remove the chapter from the Iowa administrative code. When a chapter of rules becoming effective as a whole is published in the Iowa administrative code, the division requires the administrative code editor to include the next rescission date of the chapter.
   For a chapter of rules that most recently became effective as a whole prior to January 1, 2023, the effective date of the chapter shall be deemed January 1, 2023, for purposes of the ongoing rescission process. For a chapter that most recently became effective as a whole on or after January 1, 2023, the date of rescission shall be based on the most recent effective date of the chapter as a whole.
   The division exempts certain rules adopted by the environmental protection commission relating to water quality standards, pretreatment standards, and effluent standards from the ongoing five-year rules review and rescission processes.
   DELEGATION OF AUTHORITY TO AGENCIES. The division provides standards for agency rulemaking authority. Rulemaking authority is explicitly delegated to or explicitly conferred on an agency as provided in the division. The division provides that an agency may adopt rules interpreting the provisions of any statute enforced or administered by the agency if a statute explicitly grants the agency rulemaking authority over the statutory provision, but a rule is not valid if the rule exceeds the bounds of correct interpretation. The division provides standards for adoption of a rule interpreting the provisions of a statute enforced or administered by an agency.
   The division provides that a statutory or nonstatutory provision containing a statement or declaration of legislative intent, purpose, findings, or policy does not delegate rulemaking authority to or confer rulemaking authority on an agency, or augment the agency’s rulemaking authority, beyond the rulemaking authority that is explicitly delegated to or explicitly conferred on the agency by a statute.
   The division provides that a statutory provision describing an agency’s general powers or duties does not delegate rulemaking authority to or confer rulemaking authority on the agency, or augment the agency’s rulemaking authority, beyond the rulemaking authority that is explicitly delegated to or explicitly conferred on the agency by a statute.
   The division provides that a statutory provision containing a specific standard, requirement, or threshold does not delegate to or confer on an agency the authority to adopt, enforce, or administer a rule that contains a standard, requirement, or threshold that is more restrictive than the standard, requirement, or threshold contained in the statutory provision.
   The division authorizes an agency to prescribe forms and procedures in connection with any statute enforced or administered by the agency if the agency considers it necessary to effectuate the purpose of the statute, but this provision does not authorize the imposition of a substantive requirement in connection with a form or procedure.
   The division provides that an agency authorized to exercise discretion in deciding individual cases may formalize the general policies evolving from its decisions by adopting the policies as rules that the agency shall follow until such rules are amended or repealed. A rule adopted in this manner is valid only to the extent that the agency has discretion to base an individual decision on the policy expressed in the rule.
   The division authorizes an agency to adopt rules implementing or interpreting a statute that it will enforce or administer after enactment of the statute but prior to the statute’s effective date. Such a rule shall not take effect prior to the effective date of the statute that it implements or interprets.
   The division modifies various references in Code chapter 17A to delegations of authority to agencies and judicial review thereof to specify that such delegations are only valid if the delegation is explicit.
   The division strikes language requiring agencies to adopt rules providing a description of the organization of the agency, the methods by which and location where the public may obtain information or make submissions or requests, and related matters; rules of practice setting forth the nature and requirements of all formal and informal procedures available to the public; and rules embodying appropriate standards, principles, and procedural safeguards that the agency will apply to the law it administers.
   UNIFORM RULES ON AGENCY PROCEDURE. The division authorizes the administrative rules coordinator to adopt uniform rules on agency procedure that are suitable for general applicability to agencies. Such adoption and such rules shall be subject to Code chapter 17A. Such rules may address the subjects of agency procedures for rulemaking, petitions for rulemaking, waiver of rules, declaratory orders, contested cases, and fair information practices.
   If an agency does not have rules in effect that address these subjects, and uniform rules on agency procedure addressing the subject are in effect, such uniform rules shall apply to the agency as though the agency had adopted them. The division authorizes an agency to adopt rules providing for additions, exceptions, or amendments to a uniform rule on agency procedure applicable to the agency.
   The portions of the division addressing uniform rules on agency procedure do not apply to uniform rules on agency procedure published prior to January 1, 2024, and do not affect the validity of rules that have adopted such uniform rules by reference. Uniform rules on agency procedure were originally published in 1985 and updates were published in 1999. The division requires the attorney general to assist the administrative rules coordinator in implementation of the uniform rules on agency procedure as provided in the division upon request.
   DIVISION II —— EXECUTIVE BRANCH AGENCY FUNCTIONS.
   DUTIES OF EXECUTIVE COUNCIL. The division modifies various duties carried out by the executive council. Duties relating to the contingent fund for disaster aid shall instead be carried out by the department of homeland security and emergency management. For purposes of group insurance for state employees, the director of the department of administrative services is designated as a governing body under Code chapter 509A rather than the executive council. Funds in the civil reparations trust fund shall be equally distributed each fiscal year to the department of health and human services and the department of insurance and financial services rather than under the control and supervision of the executive council. The division strikes a provision authorizing the tax liability of a beneficiary, heir, surviving joint tenant, or other transferee to be paid in whole or in part by the transfer of real property or tangible personal property to the state or a political subdivision of the state to be used for public purposes upon the approval of the executive council.
   APPEALS TO STATE BOARD OF EDUCATION. The division provides that administrative appeals heard by the state board of education shall be heard in a manner consistent with Code chapter 17A, including that the state board will only review a proposed decision by the director of the department of education or an administrative law judge on the board's own motion or if the decision is appealed.
   ELECTRICAL EXAMINING BOARD —— CONFIDENTIALITY OF LICENSEE PERSONAL INFORMATION. The division provides that the home address, home telephone number, and other personal information, as determined by rule, of licensees of the electrical examining board shall be confidential for purposes of the board’s licensure verification database.
   LICENSING BOARDS —— CONTINUING EDUCATION. The division strikes a requirement that licensing boards subject to Code chapter 272C require and issue rules for continuing education requirements as a condition to license renewal. The division makes such rulemaking discretionary.
   DIRECTOR OF THE DEPARTMENT OF NATURAL RESOURCES —— ENVIRONMENTAL PROTECTION COMMISSION —— AIR QUALITY —— AIR DISPERSION MODELING. For purposes of plans, programs, and rules of the environmental protection commission relating to the evaluation, abatement, control, and prevention of air pollution, and permits for the construction or operation of new, modified, or existing air contaminant sources and for related control equipment, the division provides that the commission is not required to use air dispersion modeling unless modeling is specifically provided for under the federal Clean Air Act as amended through January 1, 1991, rules adopted by the commission, or a federal or state agreement.
   REAL ESTATE APPRAISER EXAMINING BOARD FUNCTIONS. The division specifies that the real estate appraiser examining board is a licensing board for purposes of Code chapter 272C, relating to regulation of licensed professions and occupations. The division modifies various requirements relating to regulation of real estate appraisers by the board under Code chapter 543D.
   The division provides that specified matters required to be carried out in writing shall be carried out through the board’s electronic system.
   The division strikes a requirement that a majority of qualifying hours be completed in Iowa for purposes of hours of qualifying experience in a bordering state for certification as a real estate appraiser that will be considered qualifying hours for experience in Iowa without requiring a waiver or authorization from the board.
   The division strikes a requirement that a certified real estate appraiser advise the board of addresses at which the appraiser is currently engaged in the business of preparing real estate appraisal reports other than the appraiser’s principal place of business.
   The division provides that a certified real estate appraiser’s residence address is not exempt from disclosure as a public record if the residence address is the address of the appraiser’s principal place of business.
   The division strikes a requirement that a certificate issued under Code chapter 543D bear the signature or facsimile signature of the member or members of the board and instead provides that a certificate need only include the name of the member or members.
   The division specifies that the number of hours of instruction that satisfy the basic continuing education requirement for renewal of a real estate appraiser certification is the number of hours required by the appraiser qualifications board of the appraisal foundation rather than the real estate appraiser examining board.
   The division provides that a person who assists a certified real estate appraiser in the development or reporting of an appraisal assignment that is required to be performed by a certified real estate appraiser by providing administrative services, and not providing real estate appraisal assistance, shall only enter a dwelling if supervised by the appraiser.
   The division corrects erroneous references to the name of the appraiser qualifications board of the appraisal foundation.