Senate File 2395 - Introduced SENATE FILE 2395 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO SF 2314) (COMPANION TO HF 2413 BY WILLS) 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 5186SV (1) 91 je/ko

S.F. 2395 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. “Major rule” means a rule that does any 5 of the following: 6 a. 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 b. Has significant adverse effects on competition, 13 employment, investment, productivity, or innovation, including 14 significant adverse effects on individual industries or 15 regions. 16 c. Amends the state implementation plan under section 110 of 17 the federal Clean Air Act as amended through January 1, 1991. 18 Sec. 2. Section 17A.4, subsection 1, paragraph a, Code 2026, 19 is amended to read as follows: 20 a. Give notice of its the agency’s intended action by 21 submitting the notice to the administrative rules coordinator 22 and the administrative code editor. The administrative rules 23 coordinator shall assign an ARC number to each rulemaking 24 document. The administrative code editor shall publish each 25 notice meeting the requirements of this chapter in the Iowa 26 administrative bulletin created pursuant to section 2B.5A . The 27 legislative services agency shall provide the chairpersons and 28 ranking members of the appropriate standing committees of the 29 general assembly a means to receive an electronic copy of the 30 notice for additional study. Any A notice of intended action 31 shall be published at least thirty-five days in advance of the 32 action. The notice shall include a statement of either the 33 terms or substance of the intended action or a description of 34 the subjects and issues involved, and the all of the following: 35 -1- LSB 5186SV (1) 91 je/ko 1/ 17

S.F. 2395 (1) The text of the proposed rule. 1 (2) The time when , the place where , and the manner in which 2 interested persons may present their views. 3 (3) A concise description of the purpose and summary of the 4 proposed rule. 5 (4) A classification stating whether the proposed rule is a 6 major rule and an explanation for the agency’s classification. 7 The classification shall encompass all rulemaking actions 8 included in the notice and shall expressly and unambiguously 9 state whether the proposed rule is a major rule. 10 (5) A list of all other related regulatory actions by the 11 agency intended to implement the same statutory provision or 12 regulatory objective, as well as the individual and aggregate 13 economic effects of those actions. 14 (6) The tentative effective date of the proposed rule. 15 Sec. 3. Section 17A.4A, subsection 2, paragraph a, Code 16 2026, is amended to read as follows: 17 a. The regulatory analysis must contain all of the 18 following: 19 (1) A description of the classes of persons who probably 20 will be affected by the proposed rule, including classes that 21 will bear the costs of the proposed rule and classes that will 22 benefit from the proposed rule. 23 (2) A description of the probable quantitative and 24 qualitative impact of the proposed rule, economic or otherwise, 25 upon affected classes of persons, including a description of 26 the nature and amount of all of the different kinds of costs 27 that would be incurred in complying with the proposed rule. 28 (3) The probable costs to the agency and to any other agency 29 of the implementation and enforcement of the proposed rule and 30 any anticipated effect on state revenues. 31 (4) A comparison of the probable costs and benefits of the 32 proposed rule to the probable costs and benefits of inaction. 33 The comparison shall include all of the following: 34 (a) The estimated primary or direct benefits of the proposed 35 -2- LSB 5186SV (1) 91 je/ko 2/ 17

S.F. 2395 rule. 1 (b) The estimated cost savings or financial benefits to 2 society of the proposed rule. 3 (c) The estimated compliance costs to be incurred by 4 entities subject to regulation by the proposed rule. 5 (d) The estimated secondary or indirect costs of the 6 proposed rule. 7 (e) The estimated opportunity cost of the proposed rule. 8 The comparison must identify the opportunity cost of compliance 9 with the proposed rule resulting from the potential exit of 10 private capital from the market due to the proposed rule. 11 (5) A determination of whether less costly methods or 12 less intrusive methods exist for achieving the purpose of the 13 proposed rule. 14 (6) A description of any alternative methods for achieving 15 the purpose of the proposed rule that were seriously considered 16 by the agency and the reasons why they were rejected in favor 17 of the proposed rule. 18 (7) A description of any actions taken by the agency to 19 minimize the cost and impact of the rule on regulated entities. 20 (8) The legal authority for the proposed rule. 21 (9) All sources consulted by the agency during formulation 22 of the proposed rule. 23 (10) All key assumptions made by the agency during 24 formulation of the proposed rule. 25 (11) All sources of uncertainty identified by the agency 26 regarding the most effective and economical means of achieving 27 the purposes of the proposed rule. 28 (12) A statement of the need for the proposed rule as 29 determined by the agency. 30 (13) A classification stating whether the proposed rule is a 31 major rule and an explanation for the agency’s classification. 32 The classification shall encompass all rulemaking actions 33 included in the regulatory analysis and shall expressly and 34 unambiguously state whether the proposed rule is a major rule. 35 -3- LSB 5186SV (1) 91 je/ko 3/ 17

S.F. 2395 Sec. 4. NEW SECTION . 17A.4C Legislative regulatory 1 analysis. 2 1. a. Upon receipt of the notice of an agency’s intended 3 action under section 17A.4, subsection 1, paragraph “a” , or 4 an adopted rule under section 17A.5, the legislative services 5 agency shall conduct a legislative regulatory analysis of 6 a proposed or adopted rule classified by the proposing or 7 adopting agency as a major rule. 8 b. The regulatory analysis must contain all of the 9 following: 10 (1) A summary of the rule. 11 (2) The state or federal law implemented by the rule. 12 (3) A review of any actions taken by the agency to minimize 13 the cost and impact of the rule on regulated entities. 14 (4) An evaluation of the costs of the rule, including all 15 of the following: 16 (a) The estimated implementation and compliance costs of 17 the rule to be incurred by regulated entities, which shall 18 include both initial and ongoing costs. 19 (b) The number or estimated number of regulated entities 20 in the state affected by the rule, and an estimate based on 21 available regulatory history, of how many newly regulated 22 entities may be affected or deterred by the costs of the rule 23 each year. 24 (c) Information on specific industries or regions of the 25 state that may be affected by the rule, if applicable. 26 (d) Estimated effects of the rule on state revenue. 27 (e) Estimated effects of the rule on state expenditures 28 including estimated administrative expenses. 29 (5) All sources consulted by the legislative services 30 agency during formulation of the regulatory analysis. 31 (6) All key assumptions made by the legislative services 32 agency during formulation of the regulatory analysis. 33 (7) All sources of uncertainty identified by the 34 legislative services agency regarding the determinations made 35 -4- LSB 5186SV (1) 91 je/ko 4/ 17

S.F. 2395 in the regulatory analysis. 1 c. The legislative services agency shall submit a 2 report including the legislative regulatory analysis to the 3 administrative code editor, who shall publish it in the Iowa 4 administrative bulletin, and the administrative rules review 5 committee. The report shall include an assessment of whether 6 the agency’s rulemaking process complied with the requirements 7 of this chapter governing major rules, and an assessment of 8 whether the major rule imposes any new limits or mandates on 9 private-sector activity. 10 d. An agency shall not adopt a rule classified as a major 11 rule pursuant to section 17A.4, subsection 1, paragraph 12 “a” , less than thirty-five days after the report required by 13 paragraph “c” is published in the Iowa administrative bulletin. 14 2. To the extent resources are available, the legislative 15 services agency shall conduct legislative regulatory analyses 16 of specified existing rules and proposed or adopted rules that 17 are not major rules when requested by a chair or ranking member 18 of a standing committee of the general assembly relating to 19 matters within the committee’s jurisdiction. The legislative 20 services agency shall undertake such reviews in the order 21 requested unless directed otherwise by the legislative council. 22 3. The legislative services agency may request information 23 relevant to a legislative regulatory analysis from an agency. 24 The agency shall promptly comply with such a request. 25 Sec. 5. Section 17A.5, subsection 2, Code 2026, is amended 26 by adding the following new paragraph: 27 NEW PARAGRAPH . c. The effective date of a major rule, 28 including a rule filed under paragraph “b” , shall be subject to 29 section 17A.5A. 30 Sec. 6. Section 17A.5, Code 2026, is amended by adding the 31 following new subsection: 32 NEW SUBSECTION . 3. An adopted rule shall include an updated 33 classification stating whether the rule is a major rule if 34 the classification differs from that included in the notice 35 -5- LSB 5186SV (1) 91 je/ko 5/ 17

S.F. 2395 of intended action pursuant to section 17A.4, subsection 1, 1 paragraph “a” . The updated classification shall include the 2 information required by section 17A.4, subsection 1, paragraph 3 “a” , subparagraph (4), as well as an explanation for the change 4 in classification. 5 Sec. 7. NEW SECTION . 17A.5A Ratification of major rules. 6 1. Except as provided in subsection 2, a major rule shall 7 not become effective until it is ratified by the general 8 assembly. A major rule that is not ratified shall not become 9 effective. The general assembly may ratify a major rule by 10 passage of a joint resolution that requires approval of the 11 governor. 12 2. a. If the governor determines that a major rule must 13 become effective while the general assembly is not in session, 14 the governor may request temporary approval of the major rule 15 by the legislative council. The governor shall only make such 16 a request if federal law, a condition of federal funding, or 17 response to a state of disaster emergency proclaimed by the 18 governor pursuant to section 29C.6 requires that the major 19 rule become effective while the general assembly is not in 20 session. The major rule shall become effective upon temporary 21 approval by the legislative council. If a major rule is so 22 approved, the governor shall submit a statement for publication 23 in the Iowa administrative bulletin explaining why federal 24 law, a condition of federal funding, or response to a state of 25 disaster emergency requires the rule to become effective while 26 the general assembly is not in session. 27 b. A major rule temporarily approved by the legislative 28 council pursuant to paragraph “a” shall cease to be effective 29 upon the adjournment of the next regular session of the general 30 assembly following the effective date of the major rule unless 31 the general assembly ratifies the rule pursuant to subsection 32 1 before adjournment. The administrative code editor shall 33 publish a notice that the rule has ceased to be effective in 34 the Iowa administrative bulletin. As soon as practicable, 35 -6- LSB 5186SV (1) 91 je/ko 6/ 17

S.F. 2395 but no sooner than two weeks after such publication, the 1 administrative code editor shall remove the major rule from the 2 Iowa administrative code. 3 3. When the administrative code editor publishes a major 4 rule adopted in accordance with this chapter in the Iowa 5 administrative code, the administrative code editor shall 6 include a notice with the rule indicating whether the major 7 rule has been ratified by the general assembly or temporarily 8 approved by the legislative council. If the major rule is 9 ratified or temporarily approved subsequent to the publication, 10 the administrative code editor shall update the notice 11 accordingly. 12 4. An agency may submit a notice of rescission that rescinds 13 a major rule that has not been ratified by the general assembly 14 to the administrative rules coordinator and the administrative 15 code editor for publication in the Iowa administrative 16 bulletin. Upon publication of the notice of rescission, if 17 the major rule has not already been ratified, the major rule 18 is rescinded and shall not become effective. If the rule has 19 been temporarily approved pursuant to subsection 2, paragraph 20 “a” , and not ratified, the rule shall cease to be effective. 21 In either case, as soon as practicable, but no sooner than two 22 weeks after such publication, the administrative code editor 23 shall remove the major rule from the Iowa administrative code. 24 5. a. An agency may engage in additional rulemaking that 25 amends a major rule that has not been ratified by the general 26 assembly. An agency’s classification stating whether the 27 additional rulemaking is a major rule shall also expressly 28 and unambiguously state whether the major rule being amended 29 remains a major rule after the amendment, and include an 30 explanation for the agency’s determination. 31 b. If the additional rulemaking is not itself a major 32 rule, and if the result of the additional rulemaking is that 33 the major rule that has not been ratified no longer meets the 34 definition of a major rule, the former major rule shall be 35 -7- LSB 5186SV (1) 91 je/ko 7/ 17

S.F. 2395 considered part of the additional rulemaking and shall have 1 the same effective date as the additional rulemaking. If the 2 former major rule has been temporarily approved, the former 3 major rule shall remain in effect until either the effective 4 date of the additional rulemaking or the former major rule 5 ceases to be effective pursuant to subsection 2, paragraph “b” , 6 whichever is sooner. 7 c. If the additional rulemaking is not itself a major 8 rule, and if the result of the additional rulemaking is that 9 the major rule that has not been ratified still meets the 10 definition of a major rule, the additional rulemaking shall 11 be considered part of the major rule and shall have the same 12 effective date as the major rule. If the major rule has 13 been temporarily approved and has not ceased to be effective 14 pursuant to subsection 2, paragraph “b” , the additional 15 rulemaking shall become effective on the date specified in 16 the additional rulemaking pursuant to section 17A.5 and shall 17 be considered part of the major rule. If the major rule has 18 ceased to be effective pursuant to subsection 2, paragraph “b” , 19 the additional rulemaking shall not become effective and the 20 administrative code editor shall publish notice in the Iowa 21 administrative bulletin and remove the additional rulemaking 22 from the Iowa administrative code as provided in subsection 2, 23 paragraph “b” . 24 d. If the additional rulemaking is itself a major rule, 25 and the first major rule has not been ratified or temporarily 26 approved, the first major rule shall be considered part of the 27 additional rulemaking and shall only become effective when the 28 additional rulemaking is ratified or temporarily approved. 29 If the first major rule has not been ratified but has been 30 temporarily approved, whichever of the following occurs first 31 shall apply: 32 (1) The first major rule ceases to be effective pursuant to 33 subsection 2, paragraph “b” . 34 (2) The additional rulemaking is ratified or temporarily 35 -8- LSB 5186SV (1) 91 je/ko 8/ 17

S.F. 2395 approved, in which case the first major rule shall be 1 considered part of the additional rulemaking and shall have the 2 same effective date as the additional rulemaking. 3 6. If the effective date of a major rule is subject to 4 delay by the administrative rules review committee pursuant 5 to section 17A.8, subsection 9 or 10, and the major rule is 6 ratified or temporarily approved during the period of the 7 delay, the major rule shall not become effective until the 8 conclusion of the period of the delay. If the period of such 9 a delay concludes and the major rule has not been ratified or 10 temporarily approved, the major rule shall not become effective 11 until it is ratified or temporarily approved. 12 Sec. 8. Section 17A.6, subsection 2, Code 2026, is amended 13 to read as follows: 14 2. The administrative code editor shall publish the Iowa 15 administrative bulletin and the Iowa administrative code as 16 provided in section 2B.5A . The legislative services agency 17 shall provide the members and staff of the general assembly a 18 means to receive an electronic copy of the Iowa administrative 19 bulletin and rulemaking documents published therein. 20 Sec. 9. Section 17A.8, subsection 6, Code 2026, is amended 21 to read as follows: 22 6. The committee shall meet for the purpose of selectively 23 reviewing rules, whether proposed or in effect. The committee 24 shall review a notice of intended action classified as a major 25 rule pursuant to section 17A.4, subsection 1, paragraph “a” , 26 before the earliest date on which the proposed rule could be 27 adopted pursuant to that paragraph. A regular or special 28 committee meeting shall be open to the public and an interested 29 person may be heard and present evidence. The committee may 30 require a representative of an agency whose rule or proposed 31 rule is under consideration to attend a committee meeting. 32 Sec. 10. NEW SECTION . 17A.19A Judicial review —— major 33 rules. 34 1. In addition to any other action permitted under section 35 -9- LSB 5186SV (1) 91 je/ko 9/ 17

S.F. 2395 17A.19, an aggrieved or adversely affected person or party may 1 bring an action in district court concerning a major rule. 2 The district court shall have jurisdiction to do all of the 3 following: 4 a. Engage in de novo review of whether a rule is a major 5 rule. 6 b. Determine whether an agency, the general assembly, the 7 legislative council, or the governor completed the requirements 8 for a major rule to become effective. 9 c. Determine when or if a rule alleged to be a major rule 10 became effective. 11 2. The ratification of a major rule by the general assembly 12 shall not do any of the following: 13 a. Extinguish or otherwise affect any legal claim, whether 14 substantive or procedural, concerning any alleged legal defect 15 of the major rule. 16 b. Be construed as a grant or modification of statutory 17 authority by the general assembly for the adoption of the major 18 rule. 19 c. Be part of the record before the district court in any 20 judicial proceeding concerning a major rule except for purposes 21 of a proceeding under subsection 1. 22 Sec. 11. APPLICABILITY. This division of this Act applies 23 to rulemaking commencing with a regulatory analysis pursuant 24 to section 17A.4A, as amended by this Act, published in the 25 Iowa administrative bulletin on or after July 1, 2027, or with 26 a rule adopted under section 17A.4, subsection 3, on or after 27 July 1, 2027. 28 DIVISION II 29 RATIFICATION OF PROPOSED AMENDMENTS TO STATE IMPLEMENTATION 30 PLAN —— FEDERAL CLEAN AIR ACT 31 Sec. 12. Section 455B.133, subsection 2, Code 2026, is 32 amended to read as follows: 33 2. a. Adopt, amend, or repeal rules pertaining to 34 the evaluation, abatement, control, and prevention of air 35 -10- LSB 5186SV (1) 91 je/ko 10/ 17

S.F. 2395 pollution. The rules may include those that are necessary 1 to obtain approval of the state implementation plan under 2 section 110 of the federal Clean Air Act as amended through 3 January 1, 1991. The commission is not required to adopt rules 4 that use air dispersion modeling for a minor source or minor 5 modification of a major stationary source unless modeling is 6 specifically required by the federal Clean Air Act as amended 7 through January 1, 1991, or a federal or state agreement. 8 b. A proposal to amend the state implementation plan under 9 section 110 of the federal Clean Air Act as amended through 10 January 1, 1991, shall not be submitted for federal approval 11 until it is ratified by the general assembly. A proposal that 12 is not ratified shall not be submitted for federal approval. 13 The general assembly may ratify a proposal by passage of a 14 joint resolution that requires approval of the governor. 15 DIVISION III 16 EXECUTIVE BRANCH BOARDS —— TERMS OF OFFICE 17 Sec. 13. Section 16.2, subsection 2, Code 2026, is amended 18 to read as follows: 19 2. a. The members of the authority appointed by the 20 governor on or before June 30, 2026, shall serve for staggered 21 terms of six years beginning and ending as provided in section 22 69.19 . 23 b. The members of the authority appointed by the governor on 24 or after July 1, 2026, shall serve for staggered terms of four 25 years beginning and ending as provided in section 69.19. 26 c. A person appointed by the governor to fill a vacancy 27 shall serve only for the unexpired portion of the term. A 28 member is eligible for reappointment. The ex officio voting 29 member designated by the agricultural development board shall 30 serve at the pleasure of that board. A member of the authority 31 may be removed from office by the governor for misfeasance, 32 malfeasance, or willful neglect of duty or other just cause, 33 after notice and hearing, unless the notice and hearing is 34 expressly waived in writing. 35 -11- LSB 5186SV (1) 91 je/ko 11/ 17

S.F. 2395 Sec. 14. Section 16.2C, subsection 4, paragraph c, Code 1 2026, is amended to read as follows: 2 c. (1) Members appointed on or before June 30, 2026, shall 3 serve for staggered terms of six years beginning and ending as 4 provided in section 69.19 . 5 (2) Members appointed on or after July 1, 2026, shall serve 6 for staggered terms of four years beginning and ending as 7 provided in section 69.19. 8 (3) A person appointed to fill a vacancy shall serve only 9 for the unexpired portion of the member’s term. A member is 10 eligible for reappointment. An appointed member may be removed 11 from office by the governor for misfeasance, malfeasance, 12 willful neglect of duty, or other just cause, after notice and 13 hearing, unless the notice and hearing is expressly waived in 14 writing. 15 Sec. 15. Section 52.4, subsection 1, Code 2026, is amended 16 to read as follows: 17 1. The state commissioner of elections shall appoint three 18 members to a board of examiners for voting systems, not more 19 than two of whom shall be from the same political party. The 20 examiners Examiners appointed on or before June 30, 2026, 21 shall hold office for staggered terms of six years, subject to 22 removal at the pleasure of the state commissioner of elections. 23 Examiners appointed on or after July 1, 2026, shall hold office 24 for staggered terms of four years beginning and ending as 25 provided in section 69.19, subject to removal at the pleasure 26 of the state commissioner of elections. 27 Sec. 16. Section 97B.8A, subsection 4, paragraph d, Code 28 2026, is amended to read as follows: 29 d. (1) The appointive terms of the members appointed by the 30 governor on or before June 30, 2026, are for a period of six 31 years beginning and ending as provided in section 69.19 . 32 (2) The appointive terms of the members appointed by the 33 governor on or after July 1, 2026, are for a period of four 34 years beginning and ending as provided in section 69.19. 35 -12- LSB 5186SV (1) 91 je/ko 12/ 17

S.F. 2395 (3) If there is a vacancy in the membership of the board 1 for one of the members appointed by the governor, the governor 2 has the power of appointment. Gubernatorial appointees to this 3 board are subject to confirmation by the senate. 4 Sec. 17. Section 256.3, subsection 3, Code 2026, is amended 5 to read as follows: 6 3. a. The terms of office for voting members appointed on 7 or before June 30, 2026, are for six years beginning and ending 8 as provided in section 69.19 . 9 b. The terms of office for voting members appointed on or 10 after July 1, 2026, are for four years beginning and ending as 11 provided in section 69.19. 12 Sec. 18. Section 262.2, Code 2026, is amended to read as 13 follows: 14 262.2 Appointment —— term of office. 15 1. The members shall be appointed by the governor subject 16 to confirmation by the senate. Prior to appointing the ninth 17 member as specified in section 262.1 , the governor shall 18 consult with the appropriate student body government at the 19 institution at which the proposed appointee is enrolled. 20 2. Subject to subsection 3: 21 a. The term of each member of the board appointed on or 22 before June 30, 2026, shall be for six years , unless . 23 b. The term of each member of the board appointed on or 24 after July 1, 2026, shall be for four years. 25 3. If the ninth member, appointed in accordance with section 26 262.1 , graduates or is no longer enrolled at an institution of 27 higher education under the board’s control more than one year 28 before the expiration of the term , at which time the term of 29 the ninth member shall expire one year from the date on which 30 the member graduates or is no longer enrolled in an institution 31 of higher education under the board’s control. However, if 32 within that year the ninth member reenrolls in any institution 33 of higher education under the board’s control on a full-time 34 basis and is a student in good standing at either the graduate 35 -13- LSB 5186SV (1) 91 je/ko 13/ 17

S.F. 2395 or undergraduate level, the term of the ninth member shall 1 continue in effect. 2 4. The terms of three members of the board shall begin and 3 expire in each odd-numbered year as provided in section 69.19 . 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanation’s substance by the members of the general assembly. 7 This bill relates to executive branch functions, including 8 ratification of major administrative rules and certain other 9 actions, other matters relating to the state rulemaking 10 process, and terms of service of certain appointed members of 11 certain boards. 12 RATIFICATION OF MAJOR RULES. The bill provides for 13 ratification of major administrative rules and other matters 14 relating to the executive branch rulemaking process. 15 The bill defines “major rule” as a rule that does at least 16 one of three things. A major rule requires annual expenditures 17 of at least $200,000 or combined expenditures of at least $1 18 million within five years by all affected persons including the 19 agency itself. An express appropriation of funds enacted by 20 the general assembly shall not be considered an expenditure. 21 A major rule has significant adverse effects on competition, 22 employment, investment, productivity, or innovation, including 23 significant adverse effects on individual industries or 24 regions. Finally, a major rule amends the state implementation 25 plan under section 110 of the federal Clean Air Act as amended 26 through January 1, 1991. 27 The bill provides that a major rule shall not become 28 effective until it is ratified by the general assembly. The 29 bill authorizes the general assembly to ratify a major rule by 30 passage of a joint resolution that requires approval of the 31 governor. 32 The bill authorizes the governor to request temporary 33 approval of a major rule by the legislative council if the 34 governor determines that a major rule must become effective 35 -14- LSB 5186SV (1) 91 je/ko 14/ 17

S.F. 2395 while the general assembly is not in session. The governor 1 shall only make such a request if federal law, a condition of 2 federal funding, or response to a state of disaster emergency 3 proclaimed by the governor requires that the major rule become 4 effective while the general assembly is not in session. The 5 major rule shall become effective upon temporary approval by 6 the legislative council. If a major rule is so approved, 7 the governor must submit a statement for publication in the 8 Iowa administrative bulletin explaining why federal law, 9 a condition of federal funding, or response to a state of 10 disaster emergency requires the rule to become effective while 11 the general assembly is not in session. 12 The bill provides that a major rule temporarily approved 13 by the legislative council shall cease to be effective upon 14 the adjournment of the next regular session of the general 15 assembly following the effective date of the major rule unless 16 the general assembly ratifies the rule as provided in the bill 17 before adjournment. 18 The bill provides procedures for an agency to rescind a 19 major rule that has not been ratified and to engage in further 20 rulemaking relating to a major rule that has not been ratified. 21 The bill requires an agency to classify whether a proposed 22 or adopted rule is a major rule at each of the three stages of 23 the rulemaking process (regulatory analysis, notice of intended 24 action, and adoption). The agency must include an explanation 25 for the agency’s classification. The classification must 26 encompass all rulemaking actions included in a rulemaking 27 document and expressly and unambiguously state whether the rule 28 is a major rule. 29 The bill requires the legislative services agency to conduct 30 a legislative regulatory analysis of each notice of intended 31 action and adoption classified by an agency as a major rule. 32 The bill specifies the content of the legislative regulatory 33 analysis. The bill requires the legislative services agency to 34 submit a report including the legislative regulatory analysis 35 -15- LSB 5186SV (1) 91 je/ko 15/ 17

S.F. 2395 for publication in the Iowa administrative bulletin and to 1 the administrative rules review committee. The report shall 2 include an assessment of whether the agency’s rulemaking 3 process complied with the requirements of Code chapter 17A 4 governing major rules and an assessment of whether the major 5 rule imposes any new limits or mandates on private-sector 6 activity. The bill prohibits adoption of a notice of intended 7 action classified as a major rule less than 35 days after the 8 report is published. 9 The bill requires the legislative services agency, to 10 the extent resources are available, to conduct legislative 11 regulatory analyses of existing rules and proposed or adopted 12 rules that are not major rules when requested by a chair or 13 ranking member of a standing committee of the general assembly. 14 The bill requires agencies to promptly comply with requests 15 for information relevant to a legislative regulatory analysis 16 from the legislative services agency. 17 The bill requires the administrative rules review committee 18 to review a notice of intended action classified as a major 19 rule before the earliest date on which the proposed rule could 20 be adopted. 21 The bill authorizes an aggrieved or adversely affected 22 person or party to bring an action in district court concerning 23 a major rule. The bill provides that the district court shall 24 have jurisdiction to engage in de novo review of whether a 25 rule is a major rule; determine whether an agency, the general 26 assembly, the legislative council, or the governor completed 27 the requirements for a major rule to become effective; and 28 determine when or if a rule alleged to be a major rule became 29 effective. 30 The bill provides that ratification of a major rule shall not 31 extinguish or otherwise affect any legal claim concerning any 32 alleged legal defect of the major rule, be construed as a grant 33 or modification of statutory authority by the general assembly 34 for the adoption of the major rule, or be part of the record 35 -16- LSB 5186SV (1) 91 je/ko 16/ 17

S.F. 2395 before the district court in any judicial proceeding concerning 1 a major rule except for purposes of a proceeding authorized by 2 the bill. 3 The bill requires that rulemaking documents include 4 additional specified information such as related regulatory 5 actions by the agency, more detailed comparisons of costs and 6 benefits of the rule, sources consulted by the agency, key 7 assumptions made by the agency, and sources of uncertainty 8 identified by the agency. 9 This division of the bill applies to rulemaking commencing 10 with a regulatory analysis published in the Iowa administrative 11 bulletin on or after July 1, 2027, or with a rule adopted under 12 Code section 17A.4, subsection 3 (emergency rule), on or after 13 July 1, 2027. 14 RATIFICATION OF PROPOSED AMENDMENTS TO STATE IMPLEMENTATION 15 PLAN —— FEDERAL CLEAN AIR ACT. The bill provides that a 16 proposal to amend the state implementation plan under section 17 110 of the federal Clean Air Act shall not be submitted for 18 federal approval until it is ratified by the general assembly. 19 The bill authorizes the general assembly to ratify such 20 a proposal by passage of a joint resolution that requires 21 approval of the governor. 22 EXECUTIVE BRANCH BOARDS —— TERMS OF OFFICE. The bill changes 23 the terms of service for members of the Iowa finance authority 24 board of directors, agricultural development board, board of 25 examiners for voting systems, investment board of the Iowa 26 public employees’ retirement system, state board of education, 27 and state board of regents from six years to four years. This 28 change in terms of service applies to members appointed by the 29 governor on or after July 1, 2026. 30 -17- LSB 5186SV (1) 91 je/ko 17/ 17