Senate File 471 - Reprinted SENATE FILE 471 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO SF 179) (As Amended and Passed by the Senate March 21, 2011 ) A BILL FOR An Act relating to the review of administrative rules and 1 application processes. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 SF 471 (4) 84 jr/nh

S.F. 471 Section 1. NEW SECTION . 17A.4B Negotiated rulemaking. 1 1. An agency shall create a negotiated rulemaking group if 2 required by statute. An agency may, on its own motion or upon 3 request, create a negotiated rulemaking group if the agency 4 determines that a negotiated rulemaking group can adequately 5 represent the interests that will be significantly affected by 6 a draft rule proposal and that it is feasible and appropriate 7 in the particular rulemaking. Notice of the creation of a 8 negotiated rulemaking group shall be published in the Iowa 9 administrative bulletin. Upon establishing a negotiated 10 rulemaking group, the agency shall also specify a time frame 11 for group deliberations. 12 2. Unless otherwise provided by statute, the agency shall 13 appoint a sufficient number of members to the group so that 14 a fair cross section of opinions and interests regarding the 15 draft rule proposal is represented. One person shall be 16 appointed to represent the agency. The group shall select its 17 own chairperson and adopt its rules of procedure. All meetings 18 of the group shall be open to the public. A majority of the 19 membership constitutes a quorum. Members shall not receive 20 any per diem payment but shall be reimbursed for all necessary 21 expenses. Any vacancy shall be filled in the same manner as 22 the initial appointment. 23 3. Prior to the publication of a notice of intended action, 24 the group shall consider the terms or substance of the rule 25 drafted by the agency and shall attempt to reach a consensus 26 concerning the draft rule proposal. 27 4. If a group reaches a consensus on a draft rule proposal, 28 the group shall transmit to the agency a report containing the 29 consensus on the draft rule proposal. If the group does not 30 reach a consensus on a draft rule proposal within the specified 31 time frame, the group shall transmit to the agency a report 32 stating that inability to reach a consensus and specifying any 33 areas in which the group reached a consensus. The group may 34 include in a report any other information, recommendations, 35 -1- SF 471 (4) 84 jr/nh 1/ 3

S.F. 471 or materials that the group considers appropriate. Any group 1 member may include as an addendum to the report additional 2 information, recommendations, or materials. A report issued 3 under this subsection shall not be considered final agency 4 action for purposes of judicial review. 5 5. Unless otherwise provided by statute, following a 6 negotiated rulemaking group consideration of a draft rule 7 proposal, the agency may commence rulemaking as provided in 8 section 17A.4. The group is automatically abolished upon the 9 agency’s adoption of the rule pursuant to the provisions of 10 section 17A.5. 11 Sec. 2. Section 17A.7, subsection 2, Code 2011, is amended 12 by striking the subsection and inserting in lieu thereof the 13 following: 14 2. Over a five-year period of time, an agency shall conduct 15 an ongoing and comprehensive review of all of the agency’s 16 rules. The goal of the review is the identification and 17 elimination of all rules of the agency that are outdated, 18 redundant, overbroad, ineffective, unnecessary, or otherwise 19 undesirable. An agency shall commence its review by developing 20 a plan of review in consultation with major stakeholders and 21 constituent groups. As part of its review, an agency shall 22 review existing policy and interpretive statements or similar 23 documents to determine whether it would be necessary or 24 appropriate to adopt these statements or documents as rules. 25 a. An agency shall establish its five-year plan for review 26 of its rules and publish the plan in the Iowa administrative 27 bulletin. 28 b. An agency’s plan for review shall do all of the 29 following: 30 (1) Contain a schedule that lists when the review of each 31 rule or rule group will occur. 32 (2) State the method by which the agency will determine 33 whether the rule under review meets the criteria listed in this 34 section. 35 -2- SF 471 (4) 84 jr/nh 2/ 3

S.F. 471 (3) Provide a means for public participation in the review 1 process and specify how interested persons may participate in 2 the review. 3 (4) Identify instances where the agency may require an 4 exception to the review requirements. 5 (5) Provide a process for ongoing review of rules after the 6 initial five-year review period has expired. 7 c. An agency shall consider all of the following criteria 8 when reviewing its rules: 9 (1) The need for the rule. 10 (2) The clarity of the rule. 11 (3) The intent and legal authority for the rule. 12 (4) The qualitative and quantitative benefits and costs of 13 the rule. 14 (5) The fairness of the rule. 15 d. When an agency completes its five-year review of its 16 rules, the agency shall provide a summary of the results to the 17 administrative rules coordinator and the administrative rules 18 review committee. 19 Sec. 3. RED TAPE INTERIM STUDY COMMISSION. 20 1. The legislative council is requested to establish an 21 interim study commission to comprehensively review all rules 22 and regulations in order to assess the effects of such rules 23 and regulations on Iowa’s economy and to determine whether the 24 resulting burdens on small businesses and workers outweigh the 25 intended benefits. The study commission shall also review the 26 application processes for permits, grants, and tax credits to 27 ensure the processes are streamlined. 28 2. The study commission should submit a report to the 29 general assembly by December 15, 2011. 30 -3- SF 471 (4) 84 jr/nh 3/ 3