House File 254 - IntroducedA Bill ForAn Act 1requiring rescission of existing regulations by state
2agencies when new regulations are adopted, providing for
3approval by the department of management of rulemaking,
4providing related procedures, and including effective date
5and applicability provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  NEW SECTION.  17A.24  Required rescission
2of regulations — approval of rule filings by department of
3management — report.
   41.  Definitions.  For purposes of this section:
   5a.  “Department” means the department of management.
   6b.  “Notice of intended action” includes an amended notice
7of intended action.
   8c.  “Regulation” means a rule as described in the preface
9to the Iowa administrative bulletin and does not include a
10subrule or other subunit or an entry designated in the Iowa
11administrative code as reserved or rescinded.
   12d.  “Rule filing” means a notice of intended action pursuant
13to section 17A.4, subsection 1, paragraph “a”, a rule filed
14without notice pursuant to section 17A.4, subsection 3, or a
15rule adopted pursuant to section 17A.5.
   162.  Required rescission of regulations.
   17a.  A rule filing that would add one or more regulations to
18the Iowa administrative code shall also rescind a number of
19regulations equal to at least twice the number of regulations
20added. If a regulation is rescinded and adopted anew in the
21same rule filing, the rescission of the prior rule shall count
22as one of the two required rescissions for purposes of this
23paragraph.
   24b.  The department shall ensure that compliance with
25paragraph “a” is not accomplished solely by reorganizing or
26redesignating existing regulations by combining regulations or
27redesignating regulations as subrules or other subunits of the
28Iowa administrative code. The department may disapprove any
29rule filing submitted pursuant to subjection 3 that appears to
30be drafted so as to circumvent the requirements of paragraph
31“a”.
   32c.  This subsection does not apply to rule filings submitted
33to the department pursuant to subsection 3 by an agency
34within three years of the effective date of the statute that
35established the agency.
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   13.  Submission of rules to department of management.  Before
2an agency submits a rule filing to the administrative rules
3coordinator and the administrative code editor pursuant to
4section 17A.4 or 17A.5, the agency shall submit the rule filing
5to the department for approval. The department shall prescribe
6procedures for making such submissions. The agency may include
7with the submission any additional information that may assist
8the department in making a determination pursuant to subsection
95.
   104.  Regulatory baseline statement.  The agency shall include
11a regulatory baseline statement with a rule filing submitted to
12the department pursuant to subsection 3. The department shall
13not approve a rule filing that does not include a regulatory
14baseline statement. The department shall post all regulatory
15baseline statements received on the department’s internet
16site. A regulatory baseline statement shall contain all of the
17following information:
   18a.  The applicable portion of the statute that provides
19specific legal authority for the agency to adopt the rule
20filing.
   21b.  The purpose of the rule filing.
   22c.  If the rule filing would add one or more regulations to
23the Iowa administrative code, a list of the regulations to be
24added as well as the regulations to be rescinded in compliance
25with subsection 2. In lieu of such a list, the agency may
26include a request for exemption from subsection 2 pursuant to
27subsection 7.
   285.  Evaluation by department of management.  In determining
29whether to approve a rule filing, the department, in
30consultation with the administrative rules coordinator, shall
31evaluate the rule filing and included regulatory baseline
32statement using all of the following criteria:
   33a.  Whether the rule filing is the only effective and
34necessary means to achieve the desired outcome, including an
35analysis of all of the following:
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   1(1)  Whether the rule filing complements and does not
2duplicate existing rules.
   3(2)  Whether the rule filing would be simple to administer
4in terms of both enforcement by the agency and compliance by
5any regulated persons.
   6b.  The degree to which the rule filing or related rules
7or agency procedures include performance measures that are
8directly related to the desired outcome, including but not
9limited to a provision establishing periodic review to ensure
10intended outcomes or a provision providing for the rescission
11of the rule filing or related rules upon a determination that
12the rule filing or related rules no longer achieve the desired
13original outcomes.
   14c.  The inclusion of clear justifications for the
15implementation of the rule filing, including the development
16or existence of implementation processes for the rule filing,
17which processes:
   18(1)  Are transparent and easily accessible by the public.
   19(2)  Contain appropriate, modern methods of public
20notification.
   21(3)  Are written in plain language.
   22(4)  Are designed to allow citizens and businesses to clearly
23understand their rights and obligations under the rule filing.
   24d.  Whether the rule filing is the most cost-effective means
25to achieve the desired outcome and to what extent the benefits
26of the rule filing are greater than the burdens it imposes.
   27e.  A determination that the rule filing does not have
28a detrimental effect on the state’s economy, including a
29determination that all of the following apply to the rule
30filing:
   31(1)  The rule filing does not have a negative effect on the
32economic competitiveness of the state.
   33(2)  The rule filing is not more difficult to comply with
34than similar regulatory requirements in similarly situated
35states.
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   1(3)  The rule filing is compatible with the following
2strategic goals for this state:
   3(a)  Promoting equal application of regulatory requirements
4for all affected businesses and industries.
   5(b)  Increased job creation.
   6(c)  Increased economic growth.
   7f.  Whether the rule filing is specifically required by a
8provision of law.
   96.  Approval by department of management.  If the department
10approves a rule filing, the agency shall submit the rule filing
11to the administrative rules coordinator and the administrative
12code editor pursuant to section 17A.4 or 17A.5, as applicable.
13If the department does not approve a rule filing, the
14department shall provide the agency with a written explanation
15for its disapproval.
   167.  Exemptions.
   17a.  An agency may include a request for exemption from the
18requirements of subsection 2 or 5 or both with its submission
19to the department pursuant to subsection 3. The request shall
20include a detailed justification for the exemption. The
21department shall only grant an exemption if the department
22determines that the exemption is necessary to protect the
23health, safety, or welfare of the citizens of this state.
   24b.  An agency that receives an exemption from subsection 2
25for a rule filing that is not a notice of intended action shall
26subsequently adopt rules that rescind regulations sufficient
27to meet the requirements of subsection 2 for the exempted rule
28filing. If an agency does not do so, all regulations added to
29the Iowa administrative code in the exempted rule filing are
30void three years from the date of publication of the exempted
31filing in the Iowa administrative bulletin. An agency shall
32designate in the regulatory baseline statement included with a
33subsequent rule filing the regulations rescinded in compliance
34with this paragraph.
   35c.  If the department grants an exemption from subsection 5
-4-1for a rule filing, the department shall complete a subsequent
2review of the rule filing based on the criteria provided in
3subsection 5 within two weeks. If the department determines
4that the rule filing did not satisfy the criteria provided in
5subsection 5, all regulations added to the Iowa administrative
6code in the exempted rule filing are void three years from
7the date of publication of the exempted filing in the Iowa
8administrative bulletin.
   9d.  If a rule filing receives an exemption pursuant to
10this section, the department shall provide the agency’s
11request for exemption and the department’s determination to
12the administrative rules coordinator and the administrative
13code editor. The exemption and determination shall be
14published as part of the preamble to the rule filing in the
15Iowa administrative bulletin unless the administrative code
16editor determines that publication of the entire exemption and
17determination would be unnecessary or impractical.
   188.  Report.  The department shall by November 1 each year,
19beginning in 2022, submit a report to the general assembly and
20the governor on the total number of regulations included in
21the Iowa administrative code, including a calculation of the
22change in the total from November 1 of the previous year. The
23report shall include any recommendations for amendments to this
24section.
   259.  Technical assistance by legislative services agency.  The
26legislative services agency shall provide the department
27with information regarding the Iowa administrative code
28and technical assistance as necessary to facilitate the
29implementation of this section.
30   Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of immediate
31importance, takes effect upon enactment.
32   Sec. 3.  APPLICABILITY.  This Act applies to rule filings,
33as defined in section 17A.24, subsection 1, as enacted by this
34Act, submitted for publication in the Iowa administrative
35bulletin beginning in volume XLIV, number 7, dated October 6,
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2EXPLANATION
3The inclusion of this explanation does not constitute agreement with
4the explanation’s substance by the members of the general assembly.
   5This bill relates to procedures for rulemaking by executive
6branch agencies under Code chapter 17A, the Iowa administrative
7procedure Act.
   8The bill provides that a rule filing that would add one
9or more regulations to the Iowa administrative code shall
10also rescind a number of regulations equal to at least twice
11the number of regulations added. The bill specifies that if
12a regulation is rescinded and adopted anew in the same rule
13filing, the rescission of the prior rule shall count as one
14of the two required rescissions. This requirement does not
15apply to rule filings by an agency within three years of the
16effective date of the statute that established the agency.
   17The bill defines “regulation” as a rule as described in the
18preface to the Iowa administrative bulletin, not including a
19subrule or other subunit or an entry designated in the Iowa
20administrative code as reserved or rescinded. The bill defines
21“rule filing” as a notice of intended action, a rule filed
22without notice, or an adopted rule.
   23The bill requires that an agency, before submitting a
24rule filing to the administrative rules coordinator and the
25administrative code editor as required under current law,
26to submit the rule filing to the department of management
27for approval. The bill requires that the department ensure
28compliance with the requirement to rescind a number of
29regulations equal to at least twice the number of regulations
30added in a rule filing is not accomplished solely by
31reorganizing or redesignating existing regulations. The bill
32authorizes the department to disapprove any rule filing that
33appears to be drafted so as to circumvent the requirement.
   34The bill requires an agency to include a regulatory
35baseline statement with the submission. The bill prohibits
-6-1the department from approving a rule filing that does not
2include such a statement. The statement shall include the
3applicable portion of the statute that provides specific legal
4authority for the agency to adopt the rule filing, the purpose
5of the rule filing, and, if the rule filing would add one or
6more regulations to the Iowa administrative code, a list of
7the regulations to be added as well as the regulations to be
8rescinded in compliance with the bill. In lieu of such a list,
9the agency may include a request for exemption as provided in
10the bill.
   11The bill provides criteria for evaluation of rule filings by
12the department, in consultation with the administrative rules
13coordinator, in determining whether to provide approval. The
14criteria relate to effectiveness and necessity, performance
15measures, clear justifications, cost effectiveness, economic
16impact, and whether the regulations are specifically required
17by a provision of law.
   18If the department approves a rule filing, the agency shall
19submit the rule filing to the administrative rules coordinator
20and the administrative code editor as required under current
21law. If the department does not approve a rule filing, the
22department shall provide the agency with a written explanation
23for its disapproval.
   24The bill provides a process for an agency to request an
25exemption from the department from the requirement to rescind
26a number of regulations equal to at least twice the number
27of regulations added in a rule filing, the requirement for
28an evaluation of the rule filing by the department, or both.
29The request shall include a detailed justification for the
30exemption. The department shall only grant an exemption if
31the department determines that the exemption is necessary to
32protect the health, safety, or welfare of the citizens of
33Iowa. The bill provides additional procedural requirements for
34rule filings that receive such exemptions. If the additional
35procedural requirements are not met, regulations contained in
-7-1such rule filings are void three years after publication in
2the Iowa administrative bulletin. The exemption request and
3the department’s determination regarding the request shall be
4published in the Iowa administrative bulletin.
   5The bill requires the department to submit an annual
6report to the general assembly and the governor by November 1
7beginning in 2022 on the total number of regulations included
8in the Iowa administrative code, including a calculation of the
9change in the total from November 1 of the previous year. The
10report shall include any recommendations regarding changes to
11the bill.
   12The report requires the legislative services agency to
13provide the department with information regarding the Iowa
14administrative code and technical assistance as necessary to
15facilitate the implementation of the bill.
   16The bill takes effect upon enactment. The bill applies to
17rule filings, as defined in the bill, submitted for publication
18in the Iowa administrative bulletin beginning in volume XLIV,
19number 7, dated October 6, 2021.
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