House File 2717 - Introduced HOUSE FILE 2717 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HF 2413) A BILL FOR An Act relating to executive branch functions, including 1 ratification of major administrative rules and certain other 2 actions, other matters relating to the state rulemaking 3 process, and terms of service of certain appointed members 4 of certain boards, and including applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5186HV (3) 91 je/ko

H.F. 2717 DIVISION I 1 RATIFICATION OF MAJOR RULES 2 Section 1. Section 17A.2, Code 2026, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 7A. a. “Major rule” means a rule that does 5 any of the following: 6 (1) Requires annual expenditures of at least two hundred 7 thousand dollars, or combined expenditures of at least one 8 million dollars within five years, by all affected persons 9 including the agency itself. An express appropriation of funds 10 enacted by the general assembly shall not be considered an 11 expenditure for purposes of this paragraph. 12 (2) Has significant adverse effects on competition, 13 employment, investment, productivity, or innovation, including 14 significant adverse effects on individual industries or 15 regions. 16 (3) Amends the state implementation plan under section 110 17 of the federal Clean Air Act as amended through January 1, 18 1991. 19 b. “Major rule” does not include a rule adopted by the 20 Iowa public employees’ retirement system that establishes or 21 amends a rate of contribution to the system pursuant to section 22 97B.11. 23 Sec. 2. Section 17A.4, subsection 1, paragraph a, Code 2026, 24 is amended to read as follows: 25 a. Give notice of its the agency’s intended action by 26 submitting the notice to the administrative rules coordinator 27 and the administrative code editor. The administrative rules 28 coordinator shall assign an ARC number to each rulemaking 29 document. The administrative code editor shall publish each 30 notice meeting the requirements of this chapter in the Iowa 31 administrative bulletin created pursuant to section 2B.5A . The 32 legislative services agency shall provide the chairpersons and 33 ranking members of the appropriate standing committees of the 34 general assembly a means to receive an electronic copy of the 35 -1- LSB 5186HV (3) 91 je/ko 1/ 18

H.F. 2717 notice for additional study. Any A notice of intended action 1 shall be published at least thirty-five days in advance of the 2 action. The notice shall include a statement of either the 3 terms or substance of the intended action or a description of 4 the subjects and issues involved, and the all of the following: 5 (1) The text of the proposed rule. 6 (2) The time when , the place where , and the manner in which 7 interested persons may present their views. 8 (3) A concise description of the purpose and summary of the 9 proposed rule. 10 (4) A classification stating whether the proposed rule is a 11 major rule and an explanation for the agency’s classification. 12 The classification shall encompass all rulemaking actions 13 included in the notice and shall expressly and unambiguously 14 state whether the proposed rule is a major rule. 15 (5) A list of all other related regulatory actions by the 16 agency intended to implement the same statutory provision or 17 regulatory objective, as well as the individual and aggregate 18 economic effects of those actions. 19 (6) The tentative effective date of the proposed rule. 20 Sec. 3. Section 17A.4A, subsection 2, paragraph a, Code 21 2026, is amended to read as follows: 22 a. The regulatory analysis must contain all of the 23 following: 24 (1) A description of the classes of persons who probably 25 will be affected by the proposed rule, including classes that 26 will bear the costs of the proposed rule and classes that will 27 benefit from the proposed rule. 28 (2) A description of the probable quantitative and 29 qualitative impact of the proposed rule, economic or otherwise, 30 upon affected classes of persons, including a description of 31 the nature and amount of all of the different kinds of costs 32 that would be incurred in complying with the proposed rule. 33 (3) The probable costs to the agency and to any other agency 34 of the implementation and enforcement of the proposed rule and 35 -2- LSB 5186HV (3) 91 je/ko 2/ 18

H.F. 2717 any anticipated effect on state revenues. 1 (4) A comparison of the probable costs and benefits of the 2 proposed rule to the probable costs and benefits of inaction. 3 The comparison shall include all of the following: 4 (a) The estimated primary or direct benefits of the proposed 5 rule. 6 (b) The estimated cost savings or financial benefits to 7 society of the proposed rule. 8 (c) The estimated compliance costs to be incurred by 9 entities subject to regulation by the proposed rule. 10 (d) The estimated secondary or indirect costs of the 11 proposed rule. 12 (e) The estimated opportunity cost of the proposed rule. 13 The comparison must identify the opportunity cost of compliance 14 with the proposed rule resulting from the potential exit of 15 private capital from the market due to the proposed rule. 16 (5) A determination of whether less costly methods or 17 less intrusive methods exist for achieving the purpose of the 18 proposed rule. 19 (6) A description of any alternative methods for achieving 20 the purpose of the proposed rule that were seriously considered 21 by the agency and the reasons why they were rejected in favor 22 of the proposed rule. 23 (7) A description of any actions taken by the agency to 24 minimize the cost and impact of the rule on regulated entities. 25 (8) The legal authority for the proposed rule. 26 (9) All sources consulted by the agency during formulation 27 of the proposed rule. 28 (10) All key assumptions made by the agency during 29 formulation of the proposed rule. 30 (11) All sources of uncertainty identified by the agency 31 regarding the most effective and economical means of achieving 32 the purposes of the proposed rule. 33 (12) A statement of the need for the proposed rule as 34 determined by the agency. 35 -3- LSB 5186HV (3) 91 je/ko 3/ 18

H.F. 2717 (13) A classification stating whether the proposed rule is a 1 major rule and an explanation for the agency’s classification. 2 The classification shall encompass all rulemaking actions 3 included in the regulatory analysis and shall expressly and 4 unambiguously state whether the proposed rule is a major rule. 5 Sec. 4. NEW SECTION . 17A.4C Legislative regulatory 6 analysis. 7 1. a. Upon receipt of the notice of an agency’s intended 8 action under section 17A.4, subsection 1, paragraph “a” , or 9 an adopted rule under section 17A.5, the legislative services 10 agency shall conduct a legislative regulatory analysis of 11 a proposed or adopted rule classified by the proposing or 12 adopting agency as a major rule. 13 b. The regulatory analysis must contain all of the 14 following: 15 (1) A summary of the rule. 16 (2) The state or federal law implemented by the rule. 17 (3) A review of any actions taken by the agency to minimize 18 the cost and impact of the rule on regulated entities. 19 (4) An evaluation of the costs of the rule, including all 20 of the following: 21 (a) The estimated implementation and compliance costs of 22 the rule to be incurred by regulated entities, which shall 23 include both initial and ongoing costs. 24 (b) The number or estimated number of regulated entities 25 in the state affected by the rule, and an estimate based on 26 available regulatory history, of how many newly regulated 27 entities may be affected or deterred by the costs of the rule 28 each year. 29 (c) Information on specific industries or regions of the 30 state that may be affected by the rule, if applicable. 31 (d) Estimated effects of the rule on state revenue. 32 (e) Estimated effects of the rule on state expenditures 33 including estimated administrative expenses. 34 (5) All sources consulted by the legislative services 35 -4- LSB 5186HV (3) 91 je/ko 4/ 18

H.F. 2717 agency during formulation of the regulatory analysis. 1 (6) All key assumptions made by the legislative services 2 agency during formulation of the regulatory analysis. 3 (7) All sources of uncertainty identified by the 4 legislative services agency regarding the determinations made 5 in the regulatory analysis. 6 c. The legislative services agency shall submit a 7 report including the legislative regulatory analysis to the 8 administrative code editor, who shall publish it in the Iowa 9 administrative bulletin, and the administrative rules review 10 committee. The report shall include an assessment of whether 11 the agency’s rulemaking process complied with the requirements 12 of this chapter governing major rules, and an assessment of 13 whether the major rule imposes any new limits or mandates on 14 private-sector activity. 15 d. An agency shall not adopt a rule classified as a major 16 rule pursuant to section 17A.4, subsection 1, paragraph 17 “a” , less than thirty-five days after the report required by 18 paragraph “c” is published in the Iowa administrative bulletin. 19 2. To the extent resources are available, the legislative 20 services agency shall conduct legislative regulatory analyses 21 of specified existing rules and proposed or adopted rules that 22 are not major rules when requested by a chair or ranking member 23 of a standing committee of the general assembly relating to 24 matters within the committee’s jurisdiction. The legislative 25 services agency shall undertake such reviews in the order 26 requested unless directed otherwise by the legislative council. 27 3. The legislative services agency may request information 28 relevant to a legislative regulatory analysis from an agency. 29 The agency shall promptly comply with such a request. 30 Sec. 5. Section 17A.5, subsection 2, Code 2026, is amended 31 by adding the following new paragraph: 32 NEW PARAGRAPH . c. The effective date of a major rule, 33 including a rule filed under paragraph “b” , shall be subject to 34 section 17A.5A. 35 -5- LSB 5186HV (3) 91 je/ko 5/ 18

H.F. 2717 Sec. 6. Section 17A.5, Code 2026, is amended by adding the 1 following new subsection: 2 NEW SUBSECTION . 3. An adopted rule shall include an updated 3 classification stating whether the rule is a major rule if 4 the classification differs from that included in the notice 5 of intended action pursuant to section 17A.4, subsection 1, 6 paragraph “a” . The updated classification shall include the 7 information required by section 17A.4, subsection 1, paragraph 8 “a” , subparagraph (4), as well as an explanation for the change 9 in classification. 10 Sec. 7. NEW SECTION . 17A.5A Ratification of major rules. 11 1. Except as provided in subsection 2, a major rule shall 12 not become effective until it is ratified by the general 13 assembly. A major rule that is not ratified shall not become 14 effective. The general assembly may ratify a major rule by 15 passage of a joint resolution that requires approval of the 16 governor. 17 2. a. If the governor determines that a major rule must 18 become effective while the general assembly is not in session, 19 the governor may request temporary approval of the major rule 20 by the legislative council. The governor shall only make such 21 a request if federal law, a condition of federal funding, or 22 response to a state of disaster emergency proclaimed by the 23 governor pursuant to section 29C.6 requires that the major 24 rule become effective while the general assembly is not in 25 session. The major rule shall become effective upon temporary 26 approval by the legislative council. If a major rule is so 27 approved, the governor shall submit a statement for publication 28 in the Iowa administrative bulletin explaining why federal 29 law, a condition of federal funding, or response to a state of 30 disaster emergency requires the rule to become effective while 31 the general assembly is not in session. 32 b. A major rule temporarily approved by the legislative 33 council pursuant to paragraph “a” shall cease to be effective 34 upon the adjournment of the next regular session of the general 35 -6- LSB 5186HV (3) 91 je/ko 6/ 18

H.F. 2717 assembly following the effective date of the major rule unless 1 the general assembly ratifies the rule pursuant to subsection 2 1 before adjournment. The administrative code editor shall 3 publish a notice that the rule has ceased to be effective in 4 the Iowa administrative bulletin. As soon as practicable, 5 but no sooner than two weeks after such publication, the 6 administrative code editor shall remove the major rule from the 7 Iowa administrative code. 8 3. When the administrative code editor publishes a major 9 rule adopted in accordance with this chapter in the Iowa 10 administrative code, the administrative code editor shall 11 include a notice with the rule indicating whether the major 12 rule has been ratified by the general assembly or temporarily 13 approved by the legislative council. If the major rule is 14 ratified or temporarily approved subsequent to the publication, 15 the administrative code editor shall update the notice 16 accordingly. 17 4. An agency may submit a notice of rescission that rescinds 18 a major rule that has not been ratified by the general assembly 19 to the administrative rules coordinator and the administrative 20 code editor for publication in the Iowa administrative 21 bulletin. Upon publication of the notice of rescission, if 22 the major rule has not already been ratified, the major rule 23 is rescinded and shall not become effective. If the rule has 24 been temporarily approved pursuant to subsection 2, paragraph 25 “a” , and not ratified, the rule shall cease to be effective. 26 In either case, as soon as practicable, but no sooner than two 27 weeks after such publication, the administrative code editor 28 shall remove the major rule from the Iowa administrative code. 29 5. a. An agency may engage in additional rulemaking that 30 amends a major rule that has not been ratified by the general 31 assembly. An agency’s classification stating whether the 32 additional rulemaking is a major rule shall also expressly 33 and unambiguously state whether the major rule being amended 34 remains a major rule after the amendment, and include an 35 -7- LSB 5186HV (3) 91 je/ko 7/ 18

H.F. 2717 explanation for the agency’s determination. 1 b. If the additional rulemaking is not itself a major 2 rule, and if the result of the additional rulemaking is that 3 the major rule that has not been ratified no longer meets the 4 definition of a major rule, the former major rule shall be 5 considered part of the additional rulemaking and shall have 6 the same effective date as the additional rulemaking. If the 7 former major rule has been temporarily approved, the former 8 major rule shall remain in effect until either the effective 9 date of the additional rulemaking or the former major rule 10 ceases to be effective pursuant to subsection 2, paragraph “b” , 11 whichever is sooner. 12 c. If the additional rulemaking is not itself a major 13 rule, and if the result of the additional rulemaking is that 14 the major rule that has not been ratified still meets the 15 definition of a major rule, the additional rulemaking shall 16 be considered part of the major rule and shall have the same 17 effective date as the major rule. If the major rule has 18 been temporarily approved and has not ceased to be effective 19 pursuant to subsection 2, paragraph “b” , the additional 20 rulemaking shall become effective on the date specified in 21 the additional rulemaking pursuant to section 17A.5 and shall 22 be considered part of the major rule. If the major rule has 23 ceased to be effective pursuant to subsection 2, paragraph “b” , 24 the additional rulemaking shall not become effective and the 25 administrative code editor shall publish notice in the Iowa 26 administrative bulletin and remove the additional rulemaking 27 from the Iowa administrative code as provided in subsection 2, 28 paragraph “b” . 29 d. If the additional rulemaking is itself a major rule, 30 and the first major rule has not been ratified or temporarily 31 approved, the first major rule shall be considered part of the 32 additional rulemaking and shall only become effective when the 33 additional rulemaking is ratified or temporarily approved. 34 If the first major rule has not been ratified but has been 35 -8- LSB 5186HV (3) 91 je/ko 8/ 18

H.F. 2717 temporarily approved, whichever of the following occurs first 1 shall apply: 2 (1) The first major rule ceases to be effective pursuant to 3 subsection 2, paragraph “b” . 4 (2) The additional rulemaking is ratified or temporarily 5 approved, in which case the first major rule shall be 6 considered part of the additional rulemaking and shall have the 7 same effective date as the additional rulemaking. 8 6. If the effective date of a major rule is subject to 9 delay by the administrative rules review committee pursuant 10 to section 17A.8, subsection 9 or 10, and the major rule is 11 ratified or temporarily approved during the period of the 12 delay, the major rule shall not become effective until the 13 conclusion of the period of the delay. If the period of such 14 a delay concludes and the major rule has not been ratified or 15 temporarily approved, the major rule shall not become effective 16 until it is ratified or temporarily approved. 17 Sec. 8. Section 17A.6, subsection 2, Code 2026, is amended 18 to read as follows: 19 2. The administrative code editor shall publish the Iowa 20 administrative bulletin and the Iowa administrative code as 21 provided in section 2B.5A . The legislative services agency 22 shall provide the members and staff of the general assembly a 23 means to receive an electronic copy of the Iowa administrative 24 bulletin and rulemaking documents published therein. 25 Sec. 9. Section 17A.8, subsection 6, Code 2026, is amended 26 to read as follows: 27 6. The committee shall meet for the purpose of selectively 28 reviewing rules, whether proposed or in effect. The committee 29 shall review a notice of intended action classified as a major 30 rule pursuant to section 17A.4, subsection 1, paragraph “a” , 31 before the earliest date on which the proposed rule could be 32 adopted pursuant to that paragraph. A regular or special 33 committee meeting shall be open to the public and an interested 34 person may be heard and present evidence. The committee may 35 -9- LSB 5186HV (3) 91 je/ko 9/ 18

H.F. 2717 require a representative of an agency whose rule or proposed 1 rule is under consideration to attend a committee meeting. 2 Sec. 10. NEW SECTION . 17A.19A Judicial review —— major 3 rules. 4 1. In addition to any other action permitted under section 5 17A.19, an aggrieved or adversely affected person or party may 6 bring an action in district court concerning a major rule. 7 The district court shall have jurisdiction to do all of the 8 following: 9 a. Engage in de novo review of whether a rule is a major 10 rule. 11 b. Determine whether an agency, the general assembly, the 12 legislative council, or the governor completed the requirements 13 for a major rule to become effective. 14 c. Determine when or if a rule alleged to be a major rule 15 became effective. 16 2. The ratification of a major rule by the general assembly 17 shall not do any of the following: 18 a. Extinguish or otherwise affect any legal claim, whether 19 substantive or procedural, concerning any alleged legal defect 20 of the major rule. 21 b. Be construed as a grant or modification of statutory 22 authority by the general assembly for the adoption of the major 23 rule. 24 c. Be part of the record before the district court in any 25 judicial proceeding concerning a major rule except for purposes 26 of a proceeding under subsection 1. 27 Sec. 11. APPLICABILITY. This division of this Act applies 28 to rulemaking commencing with a regulatory analysis pursuant 29 to section 17A.4A, as amended by this Act, published in the 30 Iowa administrative bulletin on or after July 1, 2027, or with 31 a rule adopted under section 17A.4, subsection 3, on or after 32 July 1, 2027. 33 DIVISION II 34 RATIFICATION OF PROPOSED AMENDMENTS TO STATE IMPLEMENTATION 35 -10- LSB 5186HV (3) 91 je/ko 10/ 18

H.F. 2717 PLAN —— FEDERAL CLEAN AIR ACT 1 Sec. 12. Section 455B.133, subsection 2, Code 2026, is 2 amended to read as follows: 3 2. a. Adopt, amend, or repeal rules pertaining to 4 the evaluation, abatement, control, and prevention of air 5 pollution. The rules may include those that are necessary 6 to obtain approval of the state implementation plan under 7 section 110 of the federal Clean Air Act as amended through 8 January 1, 1991. The commission is not required to adopt rules 9 that use air dispersion modeling for a minor source or minor 10 modification of a major stationary source unless modeling is 11 specifically required by the federal Clean Air Act as amended 12 through January 1, 1991, or a federal or state agreement. 13 b. (1) A proposal to amend the state implementation plan 14 under section 110 of the federal Clean Air Act as amended 15 through January 1, 1991, shall not be submitted for federal 16 approval until it is ratified by the general assembly. A 17 proposal that is not ratified shall not be submitted for 18 federal approval. The general assembly may ratify a proposal 19 by passage of a joint resolution that requires approval of the 20 governor. 21 (2) Notwithstanding subparagraph (1), a proposal to amend 22 the state implementation plan under section 110 of the federal 23 Clean Air Act as amended through January 1, 1991, may be 24 submitted for federal approval without ratification by the 25 general assembly if any of the following apply: 26 (a) The proposal is an exercise of authority granted to the 27 governor pursuant to section 211(h)(5) of the federal Clean Air 28 Act, 42 U.S.C. §7545(h)(5). 29 (b) The proposal authorizes action by the governor or an 30 agency regarding ethanol blended gasoline, including but not 31 limited to standard ethanol blended gasoline, E-85 gasoline, or 32 any other ethanol blended gasoline, that meets the standards 33 and classifications required in section 214A.2, and that also 34 relates to one or more of the following subjects: 35 -11- LSB 5186HV (3) 91 je/ko 11/ 18

H.F. 2717 (i) Reid vapor pressure regulation. 1 (ii) Ensuring commercial availability. 2 (3) If the governor determines that the proposal must be 3 submitted while the general assembly is not in session and 4 subparagraph divisions (a) and (b) do not apply, the governor 5 may request approval of the proposal by the legislative 6 council. The governor may submit the proposal upon approval by 7 the legislative council. 8 DIVISION III 9 EXECUTIVE BRANCH BOARDS —— TERMS OF OFFICE 10 Sec. 13. Section 16.2, subsection 2, Code 2026, is amended 11 to read as follows: 12 2. a. The members of the authority appointed by the 13 governor on or before June 30, 2026, shall serve for staggered 14 terms of six years beginning and ending as provided in section 15 69.19 . 16 b. The members of the authority appointed by the governor on 17 or after July 1, 2026, shall serve for staggered terms of four 18 years beginning and ending as provided in section 69.19. 19 c. A person appointed by the governor to fill a vacancy 20 shall serve only for the unexpired portion of the term. A 21 member is eligible for reappointment. The ex officio voting 22 member designated by the agricultural development board shall 23 serve at the pleasure of that board. A member of the authority 24 may be removed from office by the governor for misfeasance, 25 malfeasance, or willful neglect of duty or other just cause, 26 after notice and hearing, unless the notice and hearing is 27 expressly waived in writing. 28 Sec. 14. Section 16.2C, subsection 4, paragraph c, Code 29 2026, is amended to read as follows: 30 c. (1) Members appointed on or before June 30, 2026, shall 31 serve for staggered terms of six years beginning and ending as 32 provided in section 69.19 . 33 (2) Members appointed on or after July 1, 2026, shall serve 34 for staggered terms of four years beginning and ending as 35 -12- LSB 5186HV (3) 91 je/ko 12/ 18

H.F. 2717 provided in section 69.19. 1 (3) A person appointed to fill a vacancy shall serve only 2 for the unexpired portion of the member’s term. A member is 3 eligible for reappointment. An appointed member may be removed 4 from office by the governor for misfeasance, malfeasance, 5 willful neglect of duty, or other just cause, after notice and 6 hearing, unless the notice and hearing is expressly waived in 7 writing. 8 Sec. 15. Section 52.4, subsection 1, Code 2026, is amended 9 to read as follows: 10 1. The state commissioner of elections shall appoint three 11 members to a board of examiners for voting systems, not more 12 than two of whom shall be from the same political party. The 13 examiners Examiners appointed on or before June 30, 2026, 14 shall hold office for staggered terms of six years, subject to 15 removal at the pleasure of the state commissioner of elections. 16 Examiners appointed on or after July 1, 2026, shall hold office 17 for staggered terms of four years beginning and ending as 18 provided in section 69.19, subject to removal at the pleasure 19 of the state commissioner of elections. 20 Sec. 16. Section 97B.8A, subsection 4, paragraph d, Code 21 2026, is amended to read as follows: 22 d. (1) The appointive terms of the members appointed by the 23 governor on or before June 30, 2026, are for a period of six 24 years beginning and ending as provided in section 69.19 . 25 (2) The appointive terms of the members appointed by the 26 governor on or after July 1, 2026, are for a period of four 27 years beginning and ending as provided in section 69.19. 28 (3) If there is a vacancy in the membership of the board 29 for one of the members appointed by the governor, the governor 30 has the power of appointment. Gubernatorial appointees to this 31 board are subject to confirmation by the senate. 32 Sec. 17. Section 256.3, subsection 3, Code 2026, is amended 33 to read as follows: 34 3. a. The terms of office for voting members appointed on 35 -13- LSB 5186HV (3) 91 je/ko 13/ 18

H.F. 2717 or before June 30, 2026, are for six years beginning and ending 1 as provided in section 69.19 . 2 b. The terms of office for voting members appointed on or 3 after July 1, 2026, are for four years beginning and ending as 4 provided in section 69.19. 5 Sec. 18. Section 262.2, Code 2026, is amended to read as 6 follows: 7 262.2 Appointment —— term of office. 8 1. The members shall be appointed by the governor subject 9 to confirmation by the senate. Prior to appointing the ninth 10 member as specified in section 262.1 , the governor shall 11 consult with the appropriate student body government at the 12 institution at which the proposed appointee is enrolled. 13 2. Subject to subsection 3: 14 a. The term of each member of the board appointed on or 15 before June 30, 2026, shall be for six years , unless . 16 b. The term of each member of the board appointed on or 17 after July 1, 2026, shall be for four years. 18 3. If the ninth member, appointed in accordance with section 19 262.1 , graduates or is no longer enrolled at an institution of 20 higher education under the board’s control more than one year 21 before the expiration of the term , at which time the term of 22 the ninth member shall expire one year from the date on which 23 the member graduates or is no longer enrolled in an institution 24 of higher education under the board’s control. However, if 25 within that year the ninth member reenrolls in any institution 26 of higher education under the board’s control on a full-time 27 basis and is a student in good standing at either the graduate 28 or undergraduate level, the term of the ninth member shall 29 continue in effect. 30 4. The terms of three members of the board shall begin and 31 expire in each odd-numbered year as provided in section 69.19 . 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -14- LSB 5186HV (3) 91 je/ko 14/ 18

H.F. 2717 This bill relates to executive branch functions, including 1 ratification of major administrative rules and certain other 2 actions, other matters relating to the state rulemaking 3 process, and terms of service of certain appointed members of 4 certain boards. 5 RATIFICATION OF MAJOR RULES. The bill provides for 6 ratification of major administrative rules and other matters 7 relating to the executive branch rulemaking process. 8 The bill defines “major rule” as a rule that does at least 9 one of three things. A major rule requires annual expenditures 10 of at least $200,000 or combined expenditures of at least $1 11 million within five years by all affected persons including the 12 agency itself. An express appropriation of funds enacted by 13 the general assembly shall not be considered an expenditure. 14 A major rule has significant adverse effects on competition, 15 employment, investment, productivity, or innovation, including 16 significant adverse effects on individual industries or 17 regions. Finally, a major rule amends the state implementation 18 plan under section 110 of the federal Clean Air Act as amended 19 through January 1, 1991. A “major rule” does not include a 20 rule adopted by the Iowa public employees’ retirement system 21 that establishes or amends a rate of contribution to the 22 system. 23 The bill provides that a major rule shall not become 24 effective until it is ratified by the general assembly. The 25 bill authorizes the general assembly to ratify a major rule by 26 passage of a joint resolution that requires approval of the 27 governor. 28 The bill authorizes the governor to request temporary 29 approval of a major rule by the legislative council if the 30 governor determines that a major rule must become effective 31 while the general assembly is not in session. The governor 32 shall only make such a request if federal law, a condition of 33 federal funding, or response to a state of disaster emergency 34 proclaimed by the governor requires that the major rule become 35 -15- LSB 5186HV (3) 91 je/ko 15/ 18

H.F. 2717 effective while the general assembly is not in session. The 1 major rule shall become effective upon temporary approval by 2 the legislative council. If a major rule is so approved, 3 the governor must submit a statement for publication in the 4 Iowa administrative bulletin explaining why federal law, 5 a condition of federal funding, or response to a state of 6 disaster emergency requires the rule to become effective while 7 the general assembly is not in session. 8 The bill provides that a major rule temporarily approved 9 by the legislative council shall cease to be effective upon 10 the adjournment of the next regular session of the general 11 assembly following the effective date of the major rule unless 12 the general assembly ratifies the rule as provided in the bill 13 before adjournment. 14 The bill provides procedures for an agency to rescind a 15 major rule that has not been ratified and to engage in further 16 rulemaking relating to a major rule that has not been ratified. 17 The bill requires an agency to classify whether a proposed 18 or adopted rule is a major rule at each of the three stages of 19 the rulemaking process (regulatory analysis, notice of intended 20 action, and adoption). The agency must include an explanation 21 for the agency’s classification. The classification must 22 encompass all rulemaking actions included in a rulemaking 23 document and expressly and unambiguously state whether the rule 24 is a major rule. 25 The bill requires the legislative services agency to conduct 26 a legislative regulatory analysis of each notice of intended 27 action and adoption classified by an agency as a major rule. 28 The bill specifies the content of the legislative regulatory 29 analysis. The bill requires the legislative services agency to 30 submit a report including the legislative regulatory analysis 31 for publication in the Iowa administrative bulletin and to 32 the administrative rules review committee. The report shall 33 include an assessment of whether the agency’s rulemaking 34 process complied with the requirements of Code chapter 17A 35 -16- LSB 5186HV (3) 91 je/ko 16/ 18

H.F. 2717 governing major rules and an assessment of whether the major 1 rule imposes any new limits or mandates on private-sector 2 activity. The bill prohibits adoption of a notice of intended 3 action classified as a major rule less than 35 days after the 4 report is published. 5 The bill requires the legislative services agency, to 6 the extent resources are available, to conduct legislative 7 regulatory analyses of existing rules and proposed or adopted 8 rules that are not major rules when requested by a chair or 9 ranking member of a standing committee of the general assembly. 10 The bill requires agencies to promptly comply with requests 11 for information relevant to a legislative regulatory analysis 12 from the legislative services agency. 13 The bill requires the administrative rules review committee 14 to review a notice of intended action classified as a major 15 rule before the earliest date on which the proposed rule could 16 be adopted. 17 The bill authorizes an aggrieved or adversely affected 18 person or party to bring an action in district court concerning 19 a major rule. The bill provides that the district court shall 20 have jurisdiction to engage in de novo review of whether a 21 rule is a major rule; determine whether an agency, the general 22 assembly, the legislative council, or the governor completed 23 the requirements for a major rule to become effective; and 24 determine when or if a rule alleged to be a major rule became 25 effective. 26 The bill provides that ratification of a major rule shall not 27 extinguish or otherwise affect any legal claim concerning any 28 alleged legal defect of the major rule, be construed as a grant 29 or modification of statutory authority by the general assembly 30 for the adoption of the major rule, or be part of the record 31 before the district court in any judicial proceeding concerning 32 a major rule except for purposes of a proceeding authorized by 33 the bill. 34 The bill requires that rulemaking documents include 35 -17- LSB 5186HV (3) 91 je/ko 17/ 18

H.F. 2717 additional specified information such as related regulatory 1 actions by the agency, more detailed comparisons of costs and 2 benefits of the rule, sources consulted by the agency, key 3 assumptions made by the agency, and sources of uncertainty 4 identified by the agency. 5 This division of the bill applies to rulemaking commencing 6 with a regulatory analysis published in the Iowa administrative 7 bulletin on or after July 1, 2027, or with a rule adopted under 8 Code section 17A.4, subsection 3 (emergency rule), on or after 9 July 1, 2027. 10 RATIFICATION OF PROPOSED AMENDMENTS TO STATE IMPLEMENTATION 11 PLAN —— FEDERAL CLEAN AIR ACT. The bill prohibits submission 12 of a proposal to amend the state implementation plan under 13 section 110 of the federal Clean Air Act for federal approval 14 until it is ratified by the general assembly. The bill 15 authorizes the general assembly to ratify such a proposal by 16 passage of a joint resolution that requires approval of the 17 governor. 18 The bill authorizes submission of such a proposal without 19 ratification by the general assembly if the proposal carries 20 out specified actions or if the governor determines that the 21 proposal must be submitted while the general assembly is not 22 in session and the proposal is approved by the legislative 23 council. 24 EXECUTIVE BRANCH BOARDS —— TERMS OF OFFICE. The bill changes 25 the terms of service for members of the Iowa finance authority 26 board of directors, agricultural development board, board of 27 examiners for voting systems, investment board of the Iowa 28 public employees’ retirement system, state board of education, 29 and state board of regents from six years to four years. This 30 change in terms of service applies to members appointed by the 31 governor on or after July 1, 2026. 32 -18- LSB 5186HV (3) 91 je/ko 18/ 18