House File 2717 - Reprinted HOUSE FILE 2717 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HF 2413) (As Amended and Passed by the House April 20, 2026 ) A BILL FOR An Act relating to executive branch functions, including 1 legislative review, delay, and approval of administrative 2 rules and ratification of certain other actions, other 3 matters relating to the state rulemaking process, and terms 4 of service of certain appointed members of certain boards, 5 and including applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 HF 2717 (4) 91 je/ko/md

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

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

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

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

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

H.F. 2717 the classification differs from that included in the notice 1 of intended action pursuant to section 17A.4, subsection 1, 2 paragraph “a” . The updated classification shall include the 3 information required by section 17A.4, subsection 1, paragraph 4 “a” , subparagraph (4), as well as an explanation for the change 5 in classification. 6 Sec. 6. Section 17A.8, subsections 1, 5, and 6, Code 2026, 7 are amended to read as follows: 8 1. There is created the “Administrative Rules Review 9 Committee.” The committee shall be bipartisan and shall be 10 composed of the following members: 11 a. Three Five senators appointed by the majority leader of 12 the senate and two three senators appointed by the minority 13 leader of the senate. The members appointed by the majority 14 leader of the senate, other than the chairperson, shall be 15 chairpersons of standing committees of the senate. 16 b. Three Five representatives appointed by the 17 speaker of the house of representatives and two three 18 representatives appointed by the minority leader of the house 19 of representatives. The members appointed by the speaker of 20 the house, other than the chairperson, shall be chairpersons of 21 standing committees of the house of representatives. 22 5. a. A regular committee meeting shall be held at the 23 seat of government on the second Tuesday of each month or on an 24 alternative date established by the committee. An additional 25 committee meeting shall be held in each month in which the 26 general assembly is convened for a regular session. The 27 chairperson may waive the requirement for an additional meeting 28 in a month in which a regular session of the general assembly 29 adjourns. Unless impracticable, in advance of each such 30 meeting the subject matter to be considered shall be published 31 in the Iowa administrative bulletin. 32 b. A special committee meeting may be called by the 33 chairperson at any place in the state and at any time. Unless 34 impracticable, in advance of each special meeting notice of 35 -6- HF 2717 (4) 91 je/ko/md 6/ 15

H.F. 2717 the time and place of such meeting and the subject matter to 1 be considered shall be published in the Iowa administrative 2 bulletin. 3 6. The committee shall meet for the purpose of selectively 4 reviewing rules, whether proposed or in effect. The committee 5 shall review a notice of intended action classified as a major 6 rule pursuant to section 17A.4, subsection 1, paragraph “a” , 7 before the earliest date on which the proposed rule could 8 be adopted pursuant to that paragraph. The committee shall 9 review a rule adopted under section 17A.5, subsection 2, 10 paragraph “b” , and classified as a major rule pursuant to 11 section 17A.4, subsection 1, paragraph “a” , or section 17A.5, 12 subsection 3, within thirty-five days of the publication of 13 the adopted rule in the Iowa administrative bulletin. The 14 committee shall review any other adopted rule classified as a 15 major rule pursuant to section 17A.4, subsection 1, paragraph 16 “a” , or section 17A.5, subsection 3, before its effective 17 date. A regular or special committee meeting shall be open to 18 the public and an interested person may be heard and present 19 evidence. The committee may require a representative of an 20 agency whose rule or proposed rule is under consideration 21 to attend a committee meeting. The committee may request 22 additional information about a rule from an agency. 23 Sec. 7. Section 17A.8, subsection 4, Code 2026, is amended 24 by adding the following new paragraph: 25 NEW PARAGRAPH . c. The administrative rules review 26 committee may establish a subcommittee of three members of 27 the general assembly for the purpose of providing additional 28 review of a proposed or adopted major rule. The chairperson 29 of the subcommittee shall be a member of a standing committee 30 appropriate for the subject matter of the major rule. At 31 least two members of the subcommittee shall be members of the 32 administrative rules review committee. The subcommittee may 33 request additional information about the major rule from the 34 agency that proposed or adopted the major rule and require 35 -7- HF 2717 (4) 91 je/ko/md 7/ 15

H.F. 2717 a representative of the agency to attend a meeting of the 1 subcommittee or the committee and respond to questions from 2 subcommittee or committee members. The subcommittee may 3 provide recommendations and other information regarding the 4 major rule to the committee. 5 Sec. 8. Section 17A.8, Code 2026, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 11. a. Upon a vote of the majority of 8 its members, the administrative rules review committee may 9 delay the effective date of a rule for approval by the general 10 assembly, unless the rule is adopted under section 17A.5, 11 subsection 2, paragraph “b” . If the rule is adopted under 12 section 17A.5, subsection 2, paragraph “b” , the committee, 13 within thirty-five days of the publication of the rule in the 14 Iowa administrative bulletin and upon a vote of the majority 15 of its members, may suspend the applicability of the rule for 16 approval by the general assembly. The committee may delay the 17 effective date or suspend the applicability of a rule if it 18 determines any of the following: 19 (1) The rule lacks adequate statutory authority. 20 (2) The rule imposes costs, burdens, or mandates on the 21 private sector that are not justified by the regulatory 22 analysis required by section 17A.4A. 23 (3) The agency failed to comply with a requirement of this 24 chapter in its rulemaking process. 25 (4) The rule raises significant policy concerns that 26 warrant review by the general assembly. 27 b. The committee shall refer the rule to the speaker of the 28 house of representatives and the president of the senate. The 29 referral shall be in writing and shall include the committee’s 30 specific determination under paragraph “a” , subparagraphs 31 (1) through (4), the committee’s findings regarding the 32 determination, and any other information the committee deems 33 appropriate. The committee shall make the referral within ten 34 days of the vote under paragraph “a” . The administrative code 35 -8- HF 2717 (4) 91 je/ko/md 8/ 15

H.F. 2717 editor shall publish the referral in the Iowa administrative 1 bulletin. 2 c. The rule shall not become effective or applicable unless 3 it is approved by the general assembly. A rule that is not 4 approved shall not become effective or applicable. The general 5 assembly may approve a rule by passage of a joint resolution. 6 The rule shall become effective or applicable on the effective 7 date of the joint resolution. 8 d. (1) If the effective date of a rule is delayed or the 9 applicability of a rule is suspended under this subsection 10 while the general assembly is not in session, and the governor 11 determines that the rule must become effective or applicable 12 immediately due to a requirement of federal law, a condition of 13 federal funding, or a state of disaster emergency proclaimed 14 by the governor pursuant to section 29C.6, the governor may 15 request temporary approval of the rule by the legislative 16 council. The rule shall become effective or applicable 17 upon temporary approval by the legislative council. A rule 18 temporarily approved by the legislative council shall cease to 19 be effective or applicable upon the adjournment of the next 20 regular session of the general assembly unless the general 21 assembly approves the rule by passage of a joint resolution 22 before adjournment. A rule that ceases to be applicable shall 23 cease to be effective on the same date. The rule shall remain 24 effective or applicable if approved. 25 (2) As soon as practicable, but no sooner than two weeks 26 after publication of notice pursuant to paragraph “e” , the 27 administrative code editor shall remove a rule that has ceased 28 to be effective or applicable from the Iowa administrative 29 code. 30 e. The administrative code editor shall publish notice of a 31 delayed effective date or of applicability that was suspended, 32 and that a rule has been approved or ceased to be effective, in 33 the Iowa administrative code and bulletin. 34 f. Action by the committee under this subsection shall not 35 -9- HF 2717 (4) 91 je/ko/md 9/ 15

H.F. 2717 be construed to preclude any of the following: 1 (1) Any other action on a rule by the committee authorized 2 by this chapter, including but not limited to subsections 9 and 3 10. 4 (2) Enactment of legislation relating to a rule by the 5 general assembly. 6 (3) Further rulemaking by an agency. 7 Sec. 9. NEW SECTION . 17A.19A Judicial review —— major 8 rules. 9 1. In addition to any other action permitted under section 10 17A.19, an aggrieved or adversely affected person or party may 11 bring an action in district court concerning a major rule. 12 The district court shall have jurisdiction to do all of the 13 following: 14 a. Engage in de novo review of whether a rule is a major 15 rule. 16 b. Determine whether an agency complied with the 17 requirements of this chapter relating to major rules. 18 c. Determine when or if a rule alleged to be a major rule 19 became effective. 20 2. The approval of a major rule by the general assembly 21 pursuant to section 17A.8, subsection 11, shall not do any of 22 the following: 23 a. Extinguish or otherwise affect any legal claim, whether 24 substantive or procedural, concerning any alleged legal defect 25 of the major rule. 26 b. Be construed as a grant or modification of statutory 27 authority by the general assembly for the adoption of the major 28 rule. 29 c. Be part of the record before the district court in any 30 judicial proceeding concerning a major rule except for purposes 31 of a proceeding under subsection 1. 32 Sec. 10. APPLICABILITY. This division of this Act applies 33 to rulemaking commencing with a regulatory analysis pursuant to 34 section 17A.4A, as amended by this Act, published in the Iowa 35 -10- HF 2717 (4) 91 je/ko/md 10/ 15

H.F. 2717 administrative bulletin on or after October 1, 2026, or with 1 a rule adopted under section 17A.4, subsection 3, and section 2 17A.5, subsection 2, paragraph “b”, on or after October 1, 3 2026. 4 DIVISION II 5 RATIFICATION OF PROPOSED AMENDMENTS TO STATE IMPLEMENTATION 6 PLAN —— FEDERAL CLEAN AIR ACT 7 Sec. 11. Section 455B.133, subsection 2, Code 2026, is 8 amended to read as follows: 9 2. a. Adopt, amend, or repeal rules pertaining to 10 the evaluation, abatement, control, and prevention of air 11 pollution. The rules may include those that are necessary 12 to obtain approval of the state implementation plan under 13 section 110 of the federal Clean Air Act as amended through 14 January 1, 1991. The commission is not required to adopt rules 15 that use air dispersion modeling for a minor source or minor 16 modification of a major stationary source unless modeling is 17 specifically required by the federal Clean Air Act as amended 18 through January 1, 1991, or a federal or state agreement. 19 b. (1) A proposal to amend the state implementation plan 20 under section 110 of the federal Clean Air Act as amended 21 through January 1, 1991, shall not be submitted for federal 22 approval until it is ratified by the general assembly. A 23 proposal that is not ratified shall not be submitted for 24 federal approval. The general assembly may ratify a proposal 25 by passage of a joint resolution that requires approval of the 26 governor. 27 (2) Notwithstanding subparagraph (1), a proposal to amend 28 the state implementation plan under section 110 of the federal 29 Clean Air Act as amended through January 1, 1991, may be 30 submitted for federal approval without ratification by the 31 general assembly if any of the following apply: 32 (a) The proposal is an exercise of authority granted to the 33 governor pursuant to section 211(h)(5) of the federal Clean Air 34 Act, 42 U.S.C. §7545(h)(5). 35 -11- HF 2717 (4) 91 je/ko/md 11/ 15

H.F. 2717 (b) The proposal authorizes action by the governor or an 1 agency regarding ethanol blended gasoline, including but not 2 limited to standard ethanol blended gasoline, E-85 gasoline, or 3 any other ethanol blended gasoline, that meets the standards 4 and classifications required in section 214A.2, and that also 5 relates to one or more of the following subjects: 6 (i) Reid vapor pressure regulation. 7 (ii) Ensuring commercial availability. 8 (3) If the governor determines that the proposal must be 9 submitted while the general assembly is not in session and 10 subparagraph divisions (a) and (b) do not apply, the governor 11 may request approval of the proposal by the legislative 12 council. The governor may submit the proposal upon approval by 13 the legislative council. 14 DIVISION III 15 EXECUTIVE BRANCH BOARDS —— TERMS OF OFFICE 16 Sec. 12. Section 16.2, subsection 2, Code 2026, is amended 17 to read as follows: 18 2. a. The members of the authority appointed by the 19 governor on or before June 30, 2026, shall serve for staggered 20 terms of six years beginning and ending as provided in section 21 69.19 . 22 b. The members of the authority appointed by the governor on 23 or after July 1, 2026, shall serve for staggered terms of four 24 years beginning and ending as provided in section 69.19. 25 c. A person appointed by the governor to fill a vacancy 26 shall serve only for the unexpired portion of the term. A 27 member is eligible for reappointment. The ex officio voting 28 member designated by the agricultural development board shall 29 serve at the pleasure of that board. A member of the authority 30 may be removed from office by the governor for misfeasance, 31 malfeasance, or willful neglect of duty or other just cause, 32 after notice and hearing, unless the notice and hearing is 33 expressly waived in writing. 34 Sec. 13. Section 16.2C, subsection 4, paragraph c, Code 35 -12- HF 2717 (4) 91 je/ko/md 12/ 15

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

H.F. 2717 for one of the members appointed by the governor, the governor 1 has the power of appointment. Gubernatorial appointees to this 2 board are subject to confirmation by the senate. 3 Sec. 16. Section 256.3, subsection 3, Code 2026, is amended 4 to read as follows: 5 3. a. The terms of office for voting members appointed on 6 or before June 30, 2026, are for six years beginning and ending 7 as provided in section 69.19 . 8 b. The terms of office for voting members appointed on or 9 after July 1, 2026, are for four years beginning and ending as 10 provided in section 69.19. 11 Sec. 17. Section 262.2, Code 2026, is amended to read as 12 follows: 13 262.2 Appointment —— term of office. 14 1. The members shall be appointed by the governor subject 15 to confirmation by the senate. Prior to appointing the ninth 16 member as specified in section 262.1 , the governor shall 17 consult with the appropriate student body government at the 18 institution at which the proposed appointee is enrolled. 19 2. Subject to subsection 3: 20 a. The term of each member of the board appointed on or 21 before June 30, 2026, shall be for six years , unless . 22 b. The term of each member of the board appointed on or 23 after July 1, 2026, shall be for four years. 24 3. If the ninth member, appointed in accordance with section 25 262.1 , graduates or is no longer enrolled at an institution of 26 higher education under the board’s control more than one year 27 before the expiration of the term , at which time the term of 28 the ninth member shall expire one year from the date on which 29 the member graduates or is no longer enrolled in an institution 30 of higher education under the board’s control. However, if 31 within that year the ninth member reenrolls in any institution 32 of higher education under the board’s control on a full-time 33 basis and is a student in good standing at either the graduate 34 or undergraduate level, the term of the ninth member shall 35 -14- HF 2717 (4) 91 je/ko/md 14/ 15