HF 2717 (LSB 5186HV (4) 91)

HOUSE FILE 2717

BY  COMMITTEE ON JUDICIARY

(SUCCESSOR TO HF 2413)

(As Amended and Passed by the House 2026-04-20)

A BILL FOR

An Act relating to executive branch functions, including legislative review, delay, and approval of administrative rules and ratification of certain other actions, other matters relating to the state rulemaking process, and terms of service of certain appointed members of certain boards, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
RULEMAKING PROCESS —— LEGISLATIVE REVIEW, DELAY, AND APPROVAL OF RULES

    Section 1.  Section 17A.2, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  7A.  a.  “Major rule” means a rule that does any of the following:
   (1)  Requires annual expenditures of at least one million dollars, or combined expenditures of at least five million dollars within five years, by all affected persons including the agency itself. An express appropriation, allocation, or transfer of moneys enacted by the general assembly shall not be considered an expenditure for purposes of this paragraph.
   (2)  Has significant adverse effects on competition, employment, investment, productivity, or innovation, including significant adverse effects on individual industries or regions.
   (3)  Amends the state implementation plan under section 110 of the federal Clean Air Act as amended through January 1, 1991.
   b.  “Major rule” does not include a rule adopted by the Iowa public employees’ retirement system that establishes or amends a rate of contribution to the system pursuant to section 97B.11.
    Sec. 2.  Section 17A.4, subsection 1, paragraph a, Code 2026, is amended to read as follows:
   a.  Give notice of its the agency’s intended action by submitting the notice to the administrative rules coordinator and the administrative code editor. The administrative rules coordinator shall assign an ARC number to each rulemaking document. The administrative code editor shall publish each notice meeting the requirements of this chapter in the Iowa administrative bulletin created pursuant to section 2B.5A. The legislative services agency shall provide the chairpersons and ranking members of the appropriate standing committees of the general assembly a means to receive an electronic copy of the notice for additional study. Any notice of intended action shall be published at least thirty-five days in advance of the action. The notice shall include a statement of either the terms or substance of the intended action or a description of the subjects and issues involved, and the all of the following:
   (1)  The text of the proposed rule.
   (2)  The time when, the place where, and the manner in which interested persons may present their views.
   (3)  A concise description of the purpose and summary of the proposed rule.
   (4)  A classification stating whether the proposed rule is a major rule and an explanation for the agency’s classification. The classification shall encompass all rulemaking actions included in the notice and shall expressly and unambiguously state whether the proposed rule is a major rule.
   (5)  A list of all other related regulatory actions by the agency intended to implement the same statutory provision or regulatory objective, as well as the individual and aggregate economic effects of those actions.
   (6)  The tentative effective date of the proposed rule.
    Sec. 3.  Section 17A.4A, subsection 2, paragraph a, Code 2026, is amended to read as follows:
   a.  The regulatory analysis must contain all of the following:
   (1)  A description of the classes of persons who probably will be affected by the proposed rule, including classes that will bear the costs of the proposed rule and classes that will benefit from the proposed rule.
   (2)  A description of the probable quantitative and qualitative impact of the proposed rule, economic or otherwise, upon affected classes of persons, including a description of the nature and amount of all of the different kinds of costs that would be incurred in complying with the proposed rule.
   (3)  The probable costs to the agency and to any other agency of the implementation and enforcement of the proposed rule and any anticipated effect on state revenues.
   (4)  A comparison of the probable costs and benefits of the proposed rule to the probable costs and benefits of inaction.  The comparison shall include all of the following:
   (a)  The estimated primary or direct benefits of the proposed rule.
   (b)  The estimated cost savings or financial benefits to society of the proposed rule.
   (c)  The estimated compliance costs to be incurred by entities subject to regulation by the proposed rule.
   (d)  The estimated secondary or indirect costs of the proposed rule.
   (e)  The estimated opportunity cost of the proposed rule. The comparison must identify the opportunity cost of compliance with the proposed rule resulting from the potential exit of private capital from the market due to the proposed rule.
   (5)  A determination of whether less costly methods or less intrusive methods exist for achieving the purpose of the proposed rule.
   (6)  A description of any alternative methods for achieving the purpose of the proposed rule that were seriously considered by the agency and the reasons why they were rejected in favor of the proposed rule.
   (7)  A description of any actions taken by the agency to minimize the cost and impact of the rule on regulated entities.
   (8)  The legal authority for the proposed rule.
   (9)  All sources consulted by the agency during formulation of the proposed rule.
   (10)  All key assumptions made by the agency during formulation of the proposed rule.
   (11)  All sources of uncertainty identified by the agency regarding the most effective and economical means of achieving the purposes of the proposed rule.
   (12)  A statement of the need for the proposed rule as determined by the agency.
   (13)  A classification stating whether the proposed rule is a major rule and an explanation for the agency’s classification. The classification shall encompass all rulemaking actions included in the regulatory analysis and shall expressly and unambiguously state whether the proposed rule is a major rule.
    Sec. 4.  NEW SECTION.  17A.4C  Legislative regulatory analysis.
   1.  a.  Upon receipt of the notice of an agency’s intended action under section 17A.4, subsection 1, paragraph “a”, or an adopted rule under section 17A.5, the legislative services agency shall conduct a legislative regulatory analysis of a proposed or adopted rule classified by the proposing or adopting agency as a major rule.
   b.  The regulatory analysis must contain all of the following:
   (1)  A summary of the rule.
   (2)  The state or federal law implemented by the rule.
   (3)  A review of any actions taken by the agency to minimize the cost and impact of the rule on regulated entities.
   (4)  An evaluation of the costs of the rule, including all of the following:
   (a)  The estimated implementation and compliance costs of the rule to be incurred by regulated entities, which shall include both initial and ongoing costs.
   (b)  The number or estimated number of regulated entities in the state affected by the rule, and an estimate based on available regulatory history, of how many newly regulated entities may be affected or deterred by the costs of the rule each year.
   (c)  Information on specific industries or regions of the state that may be affected by the rule, if applicable.
   (d)  Estimated effects of the rule on state revenue.
   (e)  Estimated effects of the rule on state expenditures including estimated administrative expenses.
   (5)  All sources consulted by the legislative services agency during formulation of the regulatory analysis.
   (6)  All key assumptions made by the legislative services agency during formulation of the regulatory analysis.
   (7)  All sources of uncertainty identified by the legislative services agency regarding the determinations made in the regulatory analysis.
   c.  The legislative services agency shall submit a report including the legislative regulatory analysis to the administrative code editor, who shall publish it in the Iowa administrative bulletin, and the administrative rules review committee. The report shall include an assessment of whether the agency’s rulemaking process complied with the requirements of this chapter governing major rules, and an assessment of whether the major rule imposes any new limits or mandates on private-sector activity.
   d.  An agency shall not adopt a rule classified as a major rule pursuant to section 17A.4, subsection 1, paragraph “a”, less than thirty-five days after the report required by paragraph “c” is published in the Iowa administrative bulletin.
   2.  To the extent resources are available, the legislative services agency shall conduct legislative regulatory analyses of specified existing rules and proposed or adopted rules that are not major rules when requested by a chair or ranking member of a standing committee of the general assembly relating to matters within the committee’s jurisdiction. The legislative services agency shall undertake such reviews in the order requested unless directed otherwise by the legislative council.
   3.  The legislative services agency may request information relevant to a legislative regulatory analysis from an agency. The agency shall promptly comply with such a request.
    Sec. 5.  Section 17A.5, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  3.  An adopted rule shall include an updated classification stating whether the rule is a major rule if the classification differs from that included in the notice of intended action pursuant to section 17A.4, subsection 1, paragraph “a”. The updated classification shall include the information required by section 17A.4, subsection 1, paragraph “a”, subparagraph (4), as well as an explanation for the change in classification.
    Sec. 6.  Section 17A.8, subsections 1, 5, and 6, Code 2026, are amended to read as follows:
   1.  There is created the “Administrative Rules Review Committee.” The committee shall be bipartisan and shall be composed of the following members:
   a.  Three Five senators appointed by the majority leader of the senate and two three senators appointed by the minority leader of the senate.  The members appointed by the majority leader of the senate, other than the chairperson, shall be chairpersons of standing committees of the senate.
   b.  Three Five representatives appointed by the speaker of the house of representatives and two three representatives appointed by the minority leader of the house of representatives.  The members appointed by the speaker of the house, other than the chairperson, shall be chairpersons of standing committees of the house of representatives.
   5.  a.  A regular committee meeting shall be held at the seat of government on the second Tuesday of each month or on an alternative date established by the committee.  An additional committee meeting shall be held in each month in which the general assembly is convened for a regular session. The chairperson may waive the requirement for an additional meeting in a month in which a regular session of the general assembly adjourns. Unless impracticable, in advance of each such meeting the subject matter to be considered shall be published in the Iowa administrative bulletin.
   b.  A special committee meeting may be called by the chairperson at any place in the state and at any time. Unless impracticable, in advance of each special meeting notice of the time and place of such meeting and the subject matter to be considered shall be published in the Iowa administrative bulletin.
   6.  The committee shall meet for the purpose of selectively reviewing rules, whether proposed or in effect.  The committee shall review a notice of intended action classified as a major rule pursuant to section 17A.4, subsection 1, paragraph “a”, before the earliest date on which the proposed rule could be adopted pursuant to that paragraph. The committee shall review a rule adopted under section 17A.5, subsection 2, paragraph “b”, and classified as a major rule pursuant to section 17A.4, subsection 1, paragraph “a”, or section 17A.5, subsection 3, within thirty-five days of the publication of the adopted rule in the Iowa administrative bulletin. The committee shall review any other adopted rule classified as a major rule pursuant to section 17A.4, subsection 1, paragraph “a”, or section 17A.5, subsection 3, before its effective date. A regular or special committee meeting shall be open to the public and an interested person may be heard and present evidence. The committee may require a representative of an agency whose rule or proposed rule is under consideration to attend a committee meeting.  The committee may request additional information about a rule from an agency.
    Sec. 7.  Section 17A.8, subsection 4, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  The administrative rules review committee may establish a subcommittee of three members of the general assembly for the purpose of providing additional review of a proposed or adopted major rule. The chairperson of the subcommittee shall be a member of a standing committee appropriate for the subject matter of the major rule. At least two members of the subcommittee shall be members of the administrative rules review committee. The subcommittee may request additional information about the major rule from the agency that proposed or adopted the major rule and require a representative of the agency to attend a meeting of the subcommittee or the committee and respond to questions from subcommittee or committee members. The subcommittee may provide recommendations and other information regarding the major rule to the committee.
    Sec. 8.  Section 17A.8, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  11.  a.  Upon a vote of the majority of its members, the administrative rules review committee may delay the effective date of a rule for approval by the general assembly, unless the rule is adopted under section 17A.5, subsection 2, paragraph “b”. If the rule is adopted under section 17A.5, subsection 2, paragraph “b”, the committee, within thirty-five days of the publication of the rule in the Iowa administrative bulletin and upon a vote of the majority of its members, may suspend the applicability of the rule for approval by the general assembly. The committee may delay the effective date or suspend the applicability of a rule if it determines any of the following:
   (1)  The rule lacks adequate statutory authority.
   (2)  The rule imposes costs, burdens, or mandates on the private sector that are not justified by the regulatory analysis required by section 17A.4A.
   (3)  The agency failed to comply with a requirement of this chapter in its rulemaking process.
   (4)  The rule raises significant policy concerns that warrant review by the general assembly.
   b.  The committee shall refer the rule to the speaker of the house of representatives and the president of the senate. The referral shall be in writing and shall include the committee’s specific determination under paragraph “a”, subparagraphs (1) through (4), the committee’s findings regarding the determination, and any other information the committee deems appropriate. The committee shall make the referral within ten days of the vote under paragraph “a”. The administrative code editor shall publish the referral in the Iowa administrative bulletin.
   c.  The rule shall not become effective or applicable unless it is approved by the general assembly. A rule that is not approved shall not become effective or applicable. The general assembly may approve a rule by passage of a joint resolution. The rule shall become effective or applicable on the effective date of the joint resolution.
   d.  (1)  If the effective date of a rule is delayed or the applicability of a rule is suspended under this subsection while the general assembly is not in session, and the governor determines that the rule must become effective or applicable immediately due to a requirement of federal law, a condition of federal funding, or a state of disaster emergency proclaimed by the governor pursuant to section 29C.6, the governor may request temporary approval of the rule by the legislative council. The rule shall become effective or applicable upon temporary approval by the legislative council. A rule temporarily approved by the legislative council shall cease to be effective or applicable upon the adjournment of the next regular session of the general assembly unless the general assembly approves the rule by passage of a joint resolution before adjournment. A rule that ceases to be applicable shall cease to be effective on the same date. The rule shall remain effective or applicable if approved.
   (2)  As soon as practicable, but no sooner than two weeks after publication of notice pursuant to paragraph “e”, the administrative code editor shall remove a rule that has ceased to be effective or applicable from the Iowa administrative code.
   e.  The administrative code editor shall publish notice of a delayed effective date or of applicability that was suspended, and that a rule has been approved or ceased to be effective, in the Iowa administrative code and bulletin.
   f.  Action by the committee under this subsection shall not be construed to preclude any of the following:
   (1)  Any other action on a rule by the committee authorized by this chapter, including but not limited to subsections 9 and 10.
   (2)  Enactment of legislation relating to a rule by the general assembly.
   (3)  Further rulemaking by an agency.
    Sec. 9.  NEW SECTION.  17A.19A  Judicial review —— major rules.
   1.  In addition to any other action permitted under section 17A.19, an aggrieved or adversely affected person or party may bring an action in district court concerning a major rule. The district court shall have jurisdiction to do all of the following:
   a.  Engage in de novo review of whether a rule is a major rule.
   b.  Determine whether an agency complied with the requirements of this chapter relating to major rules.
   c.  Determine when or if a rule alleged to be a major rule became effective.
   2.  The approval of a major rule by the general assembly pursuant to section 17A.8, subsection 11, shall not do any of the following:
   a.  Extinguish or otherwise affect any legal claim, whether substantive or procedural, concerning any alleged legal defect of the major rule.
   b.  Be construed as a grant or modification of statutory authority by the general assembly for the adoption of the major rule.
   c.  Be part of the record before the district court in any judicial proceeding concerning a major rule except for purposes of a proceeding under subsection 1.
    Sec. 10.  APPLICABILITY.  This division of this Act applies to rulemaking commencing with a regulatory analysis pursuant to section 17A.4A, as amended by this Act, published in the Iowa administrative bulletin on or after October 1, 2026, or with a rule adopted under section 17A.4, subsection 3, and section 17A.5, subsection 2, paragraph “b”, on or after October 1, 2026.
DIVISION II
RATIFICATION OF PROPOSED AMENDMENTS TO STATE IMPLEMENTATION PLAN —— FEDERAL CLEAN AIR ACT

    Sec. 11.  Section 455B.133, subsection 2, Code 2026, is amended to read as follows:
   2.  a.  Adopt, amend, or repeal rules pertaining to the evaluation, abatement, control, and prevention of air pollution. The rules may include those that are necessary to obtain approval of the state implementation plan under section 110 of the federal Clean Air Act as amended through January 1, 1991. The commission is not required to adopt rules that use air dispersion modeling for a minor source or minor modification of a major stationary source unless modeling is specifically required by the federal Clean Air Act as amended through January 1, 1991, or a federal or state agreement.
   b.  (1)  A proposal to amend the state implementation plan under section 110 of the federal Clean Air Act as amended through January 1, 1991, shall not be submitted for federal approval until it is ratified by the general assembly. A proposal that is not ratified shall not be submitted for federal approval. The general assembly may ratify a proposal by passage of a joint resolution that requires approval of the governor.
   (2)  Notwithstanding subparagraph (1), a proposal to amend the state implementation plan under section 110 of the federal Clean Air Act as amended through January 1, 1991, may be submitted for federal approval without ratification by the general assembly if any of the following apply:
   (a)  The proposal is an exercise of authority granted to the governor pursuant to section 211(h)(5) of the federal Clean Air Act, 42 U.S.C. §7545(h)(5).
   (b)  The proposal authorizes action by the governor or an agency regarding ethanol blended gasoline, including but not limited to standard ethanol blended gasoline, E-85 gasoline, or any other ethanol blended gasoline, that meets the standards and classifications required in section 214A.2, and that also relates to one or more of the following subjects:
   (i)  Reid vapor pressure regulation.
   (ii)  Ensuring commercial availability.
   (3)  If the governor determines that the proposal must be submitted while the general assembly is not in session and subparagraph divisions (a) and (b) do not apply, the governor may request approval of the proposal by the legislative council. The governor may submit the proposal upon approval by the legislative council.
DIVISION III
EXECUTIVE BRANCH BOARDS —— TERMS OF OFFICE

    Sec. 12.  Section 16.2, subsection 2, Code 2026, is amended to read as follows:
   2.  a.  The members of the authority appointed by the governor on or before June 30, 2026, shall serve for staggered terms of six years beginning and ending as provided in section 69.19.
   b.  The members of the authority appointed by the governor on or after July 1, 2026, shall serve for staggered terms of four years beginning and ending as provided in section 69.19.
   c.  A person appointed by the governor to fill a vacancy shall serve only for the unexpired portion of the term. A member is eligible for reappointment. The ex officio voting member designated by the agricultural development board shall serve at the pleasure of that board. A member of the authority may be removed from office by the governor for misfeasance, malfeasance, or willful neglect of duty or other just cause, after notice and hearing, unless the notice and hearing is expressly waived in writing.
    Sec. 13.  Section 16.2C, subsection 4, paragraph c, Code 2026, is amended to read as follows:
   c.  (1)  Members appointed on or before June 30, 2026, shall serve for staggered terms of six years beginning and ending as provided in section 69.19.
   (2)  Members appointed on or after July 1, 2026, shall serve for staggered terms of four years beginning and ending as provided in section 69.19.
   (3)  A person appointed to fill a vacancy shall serve only for the unexpired portion of the member’s term. A member is eligible for reappointment. An appointed member may be removed from office by the governor for misfeasance, malfeasance, willful neglect of duty, or other just cause, after notice and hearing, unless the notice and hearing is expressly waived in writing.
    Sec. 14.  Section 52.4, subsection 1, Code 2026, is amended to read as follows:
   1.  The state commissioner of elections shall appoint three members to a board of examiners for voting systems, not more than two of whom shall be from the same political party. The examiners Examiners appointed on or before June 30, 2026, shall hold office for staggered terms of six years, subject to removal at the pleasure of the state commissioner of elections.  Examiners appointed on or after July 1, 2026, shall hold office for staggered terms of four years beginning and ending as provided in section 69.19, subject to removal at the pleasure of the state commissioner of elections.
    Sec. 15.  Section 97B.8A, subsection 4, paragraph d, Code 2026, is amended to read as follows:
   d.  (1)  The appointive terms of the members appointed by the governor on or before June 30, 2026, are for a period of six years beginning and ending as provided in section 69.19.
   (2)  The appointive terms of the members appointed by the governor on or after July 1, 2026, are for a period of four years beginning and ending as provided in section 69.19.
   (3)  If there is a vacancy in the membership of the board for one of the members appointed by the governor, the governor has the power of appointment. Gubernatorial appointees to this board are subject to confirmation by the senate.
    Sec. 16.  Section 256.3, subsection 3, Code 2026, is amended to read as follows:
   3.  a.  The terms of office for voting members appointed on or before June 30, 2026, are for six years beginning and ending as provided in section 69.19.
   b.  The terms of office for voting members appointed on or after July 1, 2026, are for four years beginning and ending as provided in section 69.19.
    Sec. 17.  Section 262.2, Code 2026, is amended to read as follows:
   262.2  Appointment —— term of office.
   1.  The members shall be appointed by the governor subject to confirmation by the senate. Prior to appointing the ninth member as specified in section 262.1, the governor shall consult with the appropriate student body government at the institution at which the proposed appointee is enrolled.
   2.  Subject to subsection 3:
   a.  The term of each member of the board appointed on or before June 30, 2026, shall be for six years, unless. 
   b.  The term of each member of the board appointed on or after July 1, 2026, shall be for four years.
   3.  If the ninth member, appointed in accordance with section 262.1, graduates or is no longer enrolled at an institution of higher education under the board’s control more than one year before the expiration of the term, at which time the term of the ninth member shall expire one year from the date on which the member graduates or is no longer enrolled in an institution of higher education under the board’s control. However, if within that year the ninth member reenrolls in any institution of higher education under the board’s control on a full-time basis and is a student in good standing at either the graduate or undergraduate level, the term of the ninth member shall continue in effect.
   4.  The terms of three members of the board shall begin and expire in each odd-numbered year as provided in section 69.19.