House File 688 - Reprinted HOUSE FILE 688 BY ADMINISTRATIVE RULES REVIEW COMMITTEE (SUCCESSOR TO HSB 81) (As Amended and Passed by the House April 12, 2023 ) A BILL FOR An Act concerning the state rulemaking process, related matters 1 pertaining to agency functions, and including effective date 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 HF 688 (2) 90 je/rn/md
H.F. 688 DIVISION I 1 RULEMAKING PROCEDURES AND RELATED MATTERS 2 Section 1. Section 2B.13, subsection 2, paragraphs b, d, and 3 f, Code 2023, are amended to read as follows: 4 b. Correct references to rules or Code sections , or 5 chapters or subunits of rules or Code sections, which are cited 6 erroneously or have been repealed, amended, or renumbered. 7 d. Transfer, divide, or combine rules or parts of rules 8 and add or amend catchwords to rules and subrules or parts of 9 rules . 10 f. Update the address, telephone number, facsimile number, 11 or electronic mail address , or internet site address of an 12 agency, officer, or other entity. 13 Sec. 2. Section 2B.17, subsection 5, paragraph a, Code 2023, 14 is amended to read as follows: 15 a. The Iowa Administrative Bulletin shall be cited as the 16 IAB, with references identifying the volume number which may be 17 based on a fiscal year cycle, the issue number, the publication 18 date, and the ARC number assigned to the rulemaking document by 19 the administrative rules coordinator pursuant to section 17A.4 20 or 17A.5 . Subject to the legislative services agency style 21 manual, the citation may also include the publication’s page 22 number. 23 Sec. 3. Section 17A.2, subsection 1, Code 2023, is amended 24 to read as follows: 25 1. “Agency” means each board, commission, department, 26 officer or other administrative office or unit of the state. 27 “Agency” does not mean the general assembly or any of its 28 components , the judicial branch or any of its components, the 29 office of consumer advocate, the governor, or a political 30 subdivision of the state or its offices and units. Unless 31 provided otherwise by statute, no less than two-thirds of the 32 members eligible to vote of a multimember agency constitute a 33 quorum authorized to act in the name of the agency. 34 Sec. 4. Section 17A.2, subsection 11, paragraph g, Code 35 -1- HF 688 (2) 90 je/rn/md 1/ 7
H.F. 688 2023, is amended to read as follows: 1 g. A specification of the prices to be charged for goods or 2 services sold by an agency as distinguished from a license fee, 3 application fee, or other fees as described in section 17A.6C . 4 Sec. 5. Section 17A.4, subsection 1, paragraph a, Code 2023, 5 is amended to read as follows: 6 a. Give notice of its intended action by submitting 7 the notice to the administrative rules coordinator and 8 the administrative code editor. The administrative rules 9 coordinator shall assign an ARC number to each rulemaking 10 document. The administrative code editor shall publish each 11 notice meeting the requirements of this chapter in the Iowa 12 administrative bulletin created pursuant to section 2B.5A . The 13 legislative services agency shall also submit a copy of the 14 notice to provide the chairpersons and ranking members of the 15 appropriate standing committees of the general assembly a means 16 to receive an electronic copy of the notice for additional 17 study. Any notice of intended action shall be published at 18 least thirty-five days in advance of the action. The notice 19 shall include a statement of either the terms or substance of 20 the intended action or a description of the subjects and issues 21 involved, and the time when, the place where, and the manner in 22 which interested persons may present their views. 23 Sec. 6. Section 17A.4, subsection 8, Code 2023, is amended 24 to read as follows: 25 8. Upon the vote of two-thirds of its members, the 26 administrative rules review committee, following notice of 27 intended action as provided in subsection 1 and prior to 28 adoption of a rule pursuant to that notice, may suspend further 29 action relating to the agency from adopting that notice for 30 seventy days. Notice that adoption of a notice of intended 31 action was suspended under this provision shall be published in 32 the Iowa administrative code and bulletin. 33 Sec. 7. Section 17A.5, subsection 1, Code 2023, is amended 34 to read as follows: 35 -2- HF 688 (2) 90 je/rn/md 2/ 7
H.F. 688 1. Each agency shall file each rule adopted by the agency 1 with the office of the administrative rules coordinator and 2 provide an exact copy to the administrative code editor. The 3 administrative rules coordinator shall assign an ARC number to 4 each rulemaking document. The administrative rules coordinator 5 code editor shall keep a permanent electronic register of the 6 rules open to public inspection. The administrative code 7 editor shall publish each rule adopted in accordance with this 8 chapter in the Iowa administrative code. 9 Sec. 8. Section 17A.6, Code 2023, is amended to read as 10 follows: 11 17A.6 Publications —— copy of standards adopted by reference. 12 01. For purposes of subsections 2 through 5, unless the 13 context otherwise requires: 14 a. “Adopt by reference” or “adoption by reference” means 15 incorporating the text of a cited publication, or a part 16 thereof, into a rule without including the text of the 17 publication in the rule. 18 b. “Publication” does not include the Iowa Code, Iowa Acts, 19 Iowa administrative code, Iowa court rules, or uniform rules on 20 agency procedure. 21 1. The administrative code editor shall publish the Iowa 22 administrative bulletin and the Iowa administrative code as 23 provided in section 2B.5A . 24 2. An agency which that adopts standards by reference to 25 another publication shall deliver an electronic a printed copy 26 of the publication, or the relevant part of the publication, 27 containing the standards to the administrative code editor 28 who shall publish it on the general assembly’s internet site. 29 If an electronic copy of the publication is not available, 30 the agency shall deliver a printed copy of the publication to 31 the administrative code editor who shall deposit the copy in 32 the state law library where it which shall be made make it 33 available for inspection and reference. The agency may instead 34 deposit a printed copy of the publication, or the relevant part 35 -3- HF 688 (2) 90 je/rn/md 3/ 7
H.F. 688 of the publication, in the state law library directly. This 1 subsection does not apply to a publication that is a federal 2 statute or regulation. 3 3. In lieu of the procedures established in subsection 2 , 4 an agency may establish alternative procedures providing for 5 public access to an electronic or printed copy of a publication 6 containing standards adopted by reference if the publication is 7 proprietary or contains proprietary information. 8 4. An agency that adopts standards by reference to another 9 publication or a part thereof shall include as part of the 10 reference a date certain, edition or amendment number, or other 11 information identifying the specific version of the publication 12 or the specific point in time from which the text of the 13 publication can be determined. The adoption of standards by 14 reference to another publication or a part thereof shall not 15 include adoption of any amendment, edition, or version of the 16 publication subsequent to the effective date of the adoption. 17 5. An agency shall include in the preamble to each rule 18 submitted pursuant to section 17A.4 or 17A.5 that adopts 19 standards by reference to another publication or part thereof a 20 brief explanation of the content of the publication or part. 21 If such a rule updates a reference to a publication previously 22 adopted by reference, the agency shall include in the preamble 23 a brief explanation of any significant changes in the content 24 of the publication or part. 25 Sec. 9. NEW SECTION . 17A.6C Agency fees —— rules. 26 When an agency establishes the amount of a license fee, 27 application fee, or other fee, including any subsequent 28 increase or decrease in the amount, the amount shall be 29 specified in a notice of intended action and a rule adopted 30 by the agency. This section does not apply when the amount 31 of a fee is specifically established or described in the Iowa 32 Code, Iowa Acts, or Iowa court rules, or by federal law. This 33 section shall not be construed to authorize an agency to 34 establish a fee without statutory authority. 35 -4- HF 688 (2) 90 je/rn/md 4/ 7
H.F. 688 Sec. 10. Section 17A.8, subsection 9, Code 2023, is amended 1 by adding the following new paragraph: 2 NEW PARAGRAPH . c. Notice of an effective date that was 3 delayed or of applicability that was suspended under this 4 provision shall be published in the Iowa administrative code 5 and bulletin. 6 Sec. 11. Section 17A.8, subsection 10, paragraph b, Code 7 2023, is amended to read as follows: 8 b. Notice of an effective date that was delayed or of 9 applicability that was suspended under this provision shall be 10 published in the Iowa administrative code and bulletin. 11 Sec. 12. Section 256.54, subsection 2, paragraph b, Code 12 2023, is amended to read as follows: 13 b. Maintain, as an integral part of the law library, 14 reports of various boards and agencies, copies of bills, 15 journals, other information relating to current or proposed 16 legislation, and copies of the Iowa administrative bulletin 17 and Iowa administrative code and , consistent with section 18 17A.6, subsection 2, copies of any publications incorporated by 19 reference in the bulletin or code. 20 Sec. 13. NEW SECTION . 505.35 Adoption of standards by 21 reference —— rules. 22 Rules adopted by the commissioner pursuant to chapter 17A 23 that adopt a standard by reference to another publication or 24 portion thereof are exempt from the requirements of section 25 17A.6, subsection 4, with respect to the following: 26 1. Professional standards of practice and membership 27 requirements established by the actuarial standards board, 28 the American academy of actuaries, the American institute of 29 certified public accountants, or their successor organizations. 30 2. The following publications of the national association 31 of insurance commissioners: 32 a. Valuation manual used to establish principle-based 33 reserves for the life insurance industry. 34 b. Accounting practices and procedures manual. 35 -5- HF 688 (2) 90 je/rn/md 5/ 7
H.F. 688 c. Financial examiners handbook. 1 d. Financial analysis handbook. 2 e. Annual/quarterly financial statement blank and 3 instructions. 4 Sec. 14. EFFECTIVE DATE. This division of this Act takes 5 effect January 1, 2024. 6 DIVISION II 7 AGENCY STATUTES AND RULES 8 Sec. 15. Section 7E.7, subsection 2, Code 2023, is amended 9 by striking the subsection. 10 Sec. 16. Section 12.28, subsection 1, paragraph b, Code 11 2023, is amended to read as follows: 12 b. “State agency” means a board, commission, bureau, 13 division, office, department, or branch of state government. 14 However, state agency does not mean the state board of regents, 15 institutions governed by the board of regents, or authorities 16 created under chapter 16 , 257C , or 261A . 17 Sec. 17. Section 12.30, subsection 1, paragraph a, Code 18 2023, is amended to read as follows: 19 a. “Authority” means a department, or public or quasi-public 20 instrumentality of the state including but not limited to the 21 authority created under chapter 12E , 16 , 257C , or 261A , which 22 has the power to issue obligations, except that “authority” 23 does not include the state board of regents or the Iowa 24 finance authority to the extent the Iowa finance authority acts 25 pursuant to chapter 260C . “Authority” also includes a port 26 authority created under chapter 28J . 27 Sec. 18. Section 15E.63, subsection 11, Code 2023, is 28 amended to read as follows: 29 11. The board shall adopt rules pursuant to chapter 30 17A necessary to administer the duties of the board. The 31 department of revenue may adopt rules pursuant to chapter 17A 32 related to the duties of the board or this chapter. 33 Sec. 19. REPEAL. Chapter 257C, Code 2023, is repealed. 34 Sec. 20. RESCISSION OF ADMINISTRATIVE RULES. 35 -6- HF 688 (2) 90 je/rn/md 6/ 7
H.F. 688 1. The following Iowa administrative rules are rescinded as 1 of July 1, 2023: 2 a. 285 Iowa administrative code, chapter 1. 3 b. 791 Iowa administrative code, chapter 1. 4 2. As soon as practicable after July 1, 2023, the Iowa 5 administrative code editor shall remove the language of the 6 Iowa administrative rules referenced in subsection 1 of this 7 section from the Iowa administrative code. 8 -7- HF 688 (2) 90 je/rn/md 7/ 7