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Senate File 149 - IntroducedA Bill ForAn Act 1relating to the review of administrative rules and the
2rulemaking process.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 7.17, Code 2017, is amended to read as
2follows:
37.17 Office of administrative rules coordinator.
41. The governor shall establish the office of the
5administrative rules coordinator, and appoint its staff, which
6shall be a part of the governor’s office.
72. The administrative rules coordinator shall receive all
8notices and rules adopted pursuant to chapter 17A and provide
9the governor with an opportunity to review and object to any
10rule as provided in chapter 17A.
113. a. The administrative rules coordinator shall create a
12citizens’ committee, consisting of regulators, stakeholders,
13members of the public, and members of the general assembly,
14to advise the administrative rules coordinator on rulemaking
15issues.
16b. The members of the committee shall not be paid a per diem
17but shall be reimbursed for travel expenses.
18 Sec. 2. Section 17A.4, subsection 1, paragraph b, Code 2017,
19is amended to read as follows:
20b. (1) Afford all interested persons not less than twenty
21days to submit data, views, or arguments in writing, including
22in an electronic format. If timely requested in writing by
23twenty-five interested persons, by a governmental subdivision,
24by the administrative rules review committee, by an agency, or
25by an association having not less than twenty-five members, the
26agency must give interested persons an opportunity to make oral
27presentation.
28(2) To the extent practicable, the agency shall provide an
29opportunity to make these oral presentations using the Iowa
30communications network or other electronic means and provide
31public access at multiple sites throughout the state. If
32a request is received from twenty-five interested persons
33residing in the same city or county, the agency shall provide
34an opportunity for oral presentation in that city or county.
35(3) The opportunity for oral presentation must be held
-1-1at least twenty days after publication of the notice of its
2time and place in the Iowa administrative bulletin. The
3agency shall consider fully all written and oral submissions
4respecting the proposed rule. Within one hundred eighty
5days following either the notice published according to the
6provisions of paragraph “a” or within one hundred eighty
7days after the last date of the oral presentations on the
8proposed rule, whichever is later, the agency shall adopt a
9rule pursuant to the rulemaking proceeding or shall terminate
10the proceeding by publishing notice of termination in the Iowa
11administrative bulletin.
12 Sec. 3. Section 17A.4, subsection 2, Code 2017, is amended
13to read as follows:
142. An agency shall include in a preamble to each rule
15it adopts a brief explanation of the principal reasons for
16its action pursuant to section 17A.5 a concise statement
17of the principal reasons for and against the rule adopted,
18incorporating in the statement the reasons for overruling
19considerations urged against the rule and, if applicable, a
20brief explanation of the principal reasons for its failure
21to provide in that the rule for the waiver of the rule in
22specified situations if no such waiver provision is included
23in the rule. This explanatory requirement does not apply when
24the agency adopts a rule that only defines the meaning of a
25provision of law if the agency does not possess delegated
26authority to bind the courts to any extent with its definition.
27In addition, if requested to do so by an interested person,
28either prior to adoption or within thirty days thereafter, the
29agency shall issue a concise statement of the principal reasons
30for and against the rule adopted, incorporating therein the
31reasons for overruling considerations urged against the rule.
32This concise statement shall be issued either at the time of
33the adoption of the rule or within thirty-five days after the
34agency receives the request.
35 Sec. 4. NEW SECTION. 17A.4B Job impact statement.
-2- 11. a. “Benefit” means the reasonably identifiable and
2quantifiable positive effect or outcome that is expected to
3result from implementation of a rule.
4b. “Cost” means reasonably identifiable, significant, direct
5or indirect, economic impact that is expected to result from
6implementation of and compliance with a rule.
7c. “Cost-benefit analysis” means regulatory analysis
8to provide the public with transparency regarding the
9cost-effectiveness of a rule, including the economic costs
10and benefits and the effectiveness weighed by the agency
11in adopting the rule. “Cost-benefit analysis” includes a
12comparison of the probable costs and benefits of a rule to the
13probable costs and benefits of less intrusive or less expensive
14methods that exist for achieving the purpose of the rule.
15d. “Jobs” means private sector employment including
16self-employment and areas for potential for employment growth.
17e. “Jobs impact statement” means a statement that does all
18of the following:
19(1) Identifies the purpose of a rule and the applicable
20section of the statute that provides specific legal authority
21for the agency to adopt the rule.
22(2) Identifies and describes the cost that the agency
23anticipates state agencies, local governments, the public, and
24the regulated entities, including regulated businesses and
25self-employed individuals, will incur due to implementing and
26complying with a rule.
27(3) Determines whether a rule would have a positive
28or negative impact on private sector jobs and employment
29opportunities in Iowa.
30(4) Describes and quantifies the nature of the impact a rule
31will have on private sector jobs and employment opportunities
32including the categories of jobs and employment opportunities
33that are affected by the rule, and the number of jobs or
34potential job opportunities and the regions of the state
35affected by the rule.
-3- 1(5) Identifies, where possible, the additional costs to
2employers per employee due to implementing and complying with
3a rule.
4(6) Includes other relevant analysis requested by the
5administrative rules coordinator.
62. Prior to implementation of a rule, an agency shall
7take steps to minimize the adverse impact on jobs and
8the development of new employment opportunities due to
9implementation of the rule.
103. An agency shall provide a jobs impact statement to the
11administrative rules coordinator prior to publication of a
12notice of intended action or the publication of a rule filed
13without notice pursuant to section 17A.4, subsection 3.
144. The jobs impact statement shall be published as part
15of the preamble to the notice of rulemaking in the Iowa
16administrative bulletin, unless the administrative rules
17coordinator determines that publication of the entire jobs
18impact statement would be unnecessary or impractical.
195. An agency shall accept comments and information
20from stakeholders prior to final preparation of the jobs
21impact statement. Any concerned private sector employer or
22self-employed individual, potential employer, potential small
23business, or member of the public may submit information
24relating to a jobs impact statement prior to publication of
25a notice of intended action or publication of a rule filed
26without notice pursuant to section 17A.4, subsection 3. An
27agency may request that such information be submitted to the
28agency.
296. If a jobs impact statement is revised after a notice
30of intended action or a rule filed without notice pursuant to
31section 17A.4, subsection 3, is published, the revised jobs
32impact statement shall be published as part of the preamble
33to the adopted version of the rule, unless the administrative
34rules coordinator determines that publication of the entire
35jobs impact statement would be unnecessary or impractical.
-4- 17. The analysis in the jobs impact statement shall give
2particular weight to jobs in production sectors of the economy
3which includes the manufacturing and agricultural sectors of
4the economy and shall include analysis, where applicable, of
5the impact of the rule on expansion of existing businesses or
6facilities.
78. The administrative rules coordinator may waive the jobs
8impact statement requirement for rules proposed under section
917A.4, subsection 3, or section 17A.5, subsection 2, paragraph
10“b”, or if unnecessary or impractical.
119. By July 1, 2018, and every five years thereafter, an
12agency shall prepare a comprehensive jobs impact statement
13for all of the agency’s rules. An agency shall transmit
14each five-year comprehensive jobs impact statement to the
15administrative rules coordinator and the administrative rules
16review committee. An agency shall publish the statement, or a
17summary, on the internet site established pursuant to section
1817A.6A.
19 Sec. 5. NEW SECTION. 17A.4C Negotiated rulemaking.
201. An agency shall create a negotiated rulemaking group if
21required by statute. An agency may, on its own motion or upon
22request, create a negotiated rulemaking group if the agency
23determines that a negotiated rulemaking group can adequately
24represent the interests that will be significantly affected by
25a draft rule proposal and that it is feasible and appropriate
26in the particular rulemaking. Notice of the creation of a
27negotiated rulemaking group shall be published in the Iowa
28administrative bulletin. Upon establishing a negotiated
29rulemaking group, the agency shall also specify a time frame
30for group deliberations.
312. Unless otherwise provided by statute, the agency shall
32appoint a sufficient number of members to the group so that
33a fair cross section of interests and opinions regarding the
34draft rule proposal is represented. One person shall be
35appointed to represent the agency. The group shall select its
-5-1own chairperson and adopt its rules of procedure. All meetings
2of the group shall be open to the public. A majority of the
3membership constitutes a quorum. Members shall not receive
4any per diem payment but shall be reimbursed for all necessary
5expenses. Any vacancy shall be filled in the same manner as
6the initial appointment.
73. Prior to the submission of a notice of intended action
8to the administrative rules coordinator and the administrative
9code editor pursuant to section 17A.4, subsection 1, the group
10shall consider the terms or substance of the rule proposed
11by the agency and shall attempt to reach a consensus on the
12advisability of adopting the draft rule proposal.
134. If a group reaches a consensus on a draft rule proposal,
14the group shall transmit to the agency a report containing the
15consensus on the draft rule proposal. If the group does not
16reach a consensus on a draft rule proposal within the specified
17time frame, the group shall transmit to the agency a report
18stating that inability to reach a consensus and specifying any
19areas in which the group reached a consensus. The group may
20include in a report any other information, recommendations,
21or materials that the group considers appropriate. Any group
22member may include as an addendum to the report additional
23information, recommendations, or materials. A report issued
24under this subsection shall not be considered final agency
25action for purposes of judicial review.
265. Unless otherwise provided by statute, following
27consideration of a draft rule proposal by a negotiated
28rulemaking group, the agency may commence rulemaking as
29provided in section 17A.4. The group is automatically
30abolished upon the agency’s adoption of the rule pursuant to
31the provisions of section 17A.5.
32 Sec. 6. Section 17A.7, subsection 2, Code 2017, is amended
33to read as follows:
342. Beginning July 1, 2012, over each five-year period of
35time, an agency shall conduct an ongoing and comprehensive
-6-1review of all of the agency’s rules. The goal of the review
2is the identification and elimination of all rules of the
3agency that are outdated, redundant, or overbroad, ineffective,
4unnecessary, inconsistent or incompatible with statute or its
5own rules or those of other agencies, or otherwise undesirable.
6An agency shall commence its review by developing a plan of
7review in consultation with major stakeholders and constituent
8groups. As part of its review, an agency shall review existing
9policy and interpretive statements or similar documents to
10determine whether it would be necessary or appropriate to adopt
11these statements or documents as rules.
12a. An agency shall establish its five-year plan for
13review of its rules and publish the plan on the internet site
14established pursuant to section 17A.6A.
15b. An agency’s plan for review shall do all of the
16following:
17(1) Contain a schedule that lists when the review of each
18rule or group of rules will occur.
19(2) State the method by which the agency will analyze
20the rule under review regarding the considerations listed in
21paragraph “c”.
22(3) Provide a means for public participation in the review
23process and specify how interested persons may participate in
24the review.
25(4) Identify instances where the agency may require an
26exception to the review requirements.
27(5) Provide a process for ongoing review of rules after the
28initial five-year review period has expired.
29c. An agency shall analyze its rules under review by
30considering all of the following:
31(1) The need for the rule.
32(2) The clarity of the rule.
33(3) The intent and legal authority for the rule.
34(4) The qualitative and quantitative benefits and costs of
35the rule.
-7- 1(5) The fairness of the rule.
2d. When the agency completes the five-year review of the
3agency’s own rules, the agency shall provide a summary of
4the results to the administrative rules coordinator and the
5administrative rules review committee.
6 Sec. 7. NEW SECTION. 17A.24 Rule implementation of federal
7statute, regulation, or policy.
81. Except as otherwise explicitly authorized by state law,
9an agency charged with the implementation of a federal statute,
10regulation, or policy shall not implement the federal statute,
11regulation, or policy in a manner that exceeds the specific
12requirements of the federal statute, regulation, or policy.
132. Any portion of an agency rule or policy that implements
14a federal statute, regulation, or policy and that exceeds the
15specific requirements of the federal statute, regulation, or
16policy is automatically superseded by the specific requirements
17of that federal statute, regulation, or policy.
18 Sec. 8. ENVIRONMENTAL REGULATION STUDY.
191. The legislative council, in consultation with the
20department of natural resources, shall establish a study to
21analyze the projected financial effects of current and proposed
22United States environmental protection agency regulations and
23Iowa department of natural resources rules on Iowa cities over
24a ten-year period.
252. The study should include an analysis of projected
26financial costs of such regulations and rules on a hypothetical
27small Iowa community, medium-sized Iowa community, and large
28Iowa community.
293. The study shall be concluded by June 30, 2018, and a
30report shall be provided to the members of the general assembly
31and to the governor.
32EXPLANATION
33The inclusion of this explanation does not constitute agreement with
34the explanation’s substance by the members of the general assembly.
35This bill relates to the review of administrative rules and
-8-1the rulemaking process.
2CITIZENS’ ADVISORY COMMITTEE. The bill requires that the
3administrative rules coordinator create a citizens’ committee,
4to advise the administrative rules coordinator on rulemaking
5issues. The members of the committee shall not be paid a per
6diem but shall be reimbursed for travel expenses.
7RULEMAKING HEARINGS THROUGHOUT STATE. The bill requires
8administrative agencies, to the extent practicable, to hold
9rulemaking hearings in varied locations throughout the state
10via the Iowa communications network or other electronic means.
11The bill provides that a hearing must be held in a particular
12city or county when 25 interested persons from that city or
13county so request.
14PRINCIPAL REASONS FOR AND AGAINST RULE. The bill requires
15that every adopted rule must be accompanied by a concise
16statement of the principal reasons for and against the rule
17adopted. Under current law such a statement is only provided
18on request.
19JOBS IMPACT STATEMENTS. The bill requires that every
20proposed rule under a notice of intended action or publication
21without notice contain a jobs impact statement which outlines
22the purpose and statutory authority of the rule and analyzes
23and sets out in detail the impact of the proposed rule on state
24agencies, local governments, the public, and the regulated
25entities, including regulated businesses and self-employed
26individuals affected by the rule. The statement must also
27determine whether a proposed rule would have a positive
28or negative impact on private sector jobs and employment
29opportunities.
30Commencing July 1, 2018, and every five years thereafter,
31each agency shall prepare a jobs impact statement for all of
32the agency’s rules.
33As part of this requirement, an agency is required to
34takes steps to minimize the adverse impact on jobs and the
35development of new employment opportunities before proposing
-9-1a rule.
2The administrative rules coordinator may waive the jobs
3impact statement requirement for rules filed using emergency
4rulemaking procedures or if unnecessary or impractical.
5NEGOTIATED RULEMAKING GROUPS. If required by statute, this
6bill requires an agency to create a negotiated rulemaking group
7to review draft rule proposals prior to filing a notice of
8intended action pursuant to Code section 17A.4, subsection 1.
9Where a statute does not require this review, the bill allows
10an agency to create such a review group. Members are appointed
11by the agency and the composition must adequately represent
12a fair cross section of interests and opinions regarding the
13rule. Once such a group is created, the agency may only
14commence rulemaking after the group has considered the draft
15rule proposal in question.
16FIVE-YEAR CYCLE OF AGENCY REVIEW OF RULES. Current
17law requires that each state agency review all of its
18administrative rules on a five-year cycle. The bill provides
19additional procedures and criteria for such reviews.
20FEDERAL LAW IMPLEMENTATION. The bill also provides that
21state implementation of a federal statute, regulation,
22or policy by a state agency shall not exceed the specific
23requirements of the federal statute, regulation, or
24policy, except as specifically allowed by state law. Any
25portion of a state rule or policy that implements a federal
26statute, regulation, or policy and that exceeds the specific
27requirements of the federal statute, regulation, or policy is
28automatically superseded by the specific requirements of that
29federal statute, regulation, or policy.
30ENVIRONMENTAL RULES STUDY. The bill provides that the
31legislative council, in consultation with the department of
32natural resources, shall establish a study to analyze the
33projected financial effects of current and proposed United
34States environmental protection agency regulations and Iowa
35department of natural resources rules on Iowa cities over a
-10-110-year period. The report of the study must be completed by
2June 30, 2018.
-11-je/rj
2rulemaking process.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 7.17, Code 2017, is amended to read as
2follows:
37.17 Office of administrative rules coordinator.
41. The governor shall establish the office of the
5administrative rules coordinator, and appoint its staff, which
6shall be a part of the governor’s office.
72. The administrative rules coordinator shall receive all
8notices and rules adopted pursuant to chapter 17A and provide
9the governor with an opportunity to review and object to any
10rule as provided in chapter 17A.
113. a. The administrative rules coordinator shall create a
12citizens’ committee, consisting of regulators, stakeholders,
13members of the public, and members of the general assembly,
14to advise the administrative rules coordinator on rulemaking
15issues.
16b. The members of the committee shall not be paid a per diem
17but shall be reimbursed for travel expenses.
18 Sec. 2. Section 17A.4, subsection 1, paragraph b, Code 2017,
19is amended to read as follows:
20b. (1) Afford all interested persons not less than twenty
21days to submit data, views, or arguments in writing, including
22in an electronic format. If timely requested in writing by
23twenty-five interested persons, by a governmental subdivision,
24by the administrative rules review committee, by an agency, or
25by an association having not less than twenty-five members, the
26agency must give interested persons an opportunity to make oral
27presentation.
28(2) To the extent practicable, the agency shall provide an
29opportunity to make these oral presentations using the Iowa
30communications network or other electronic means and provide
31public access at multiple sites throughout the state. If
32a request is received from twenty-five interested persons
33residing in the same city or county, the agency shall provide
34an opportunity for oral presentation in that city or county.
35(3) The opportunity for oral presentation must be held
-1-1at least twenty days after publication of the notice of its
2time and place in the Iowa administrative bulletin. The
3agency shall consider fully all written and oral submissions
4respecting the proposed rule. Within one hundred eighty
5days following either the notice published according to the
6provisions of paragraph “a” or within one hundred eighty
7days after the last date of the oral presentations on the
8proposed rule, whichever is later, the agency shall adopt a
9rule pursuant to the rulemaking proceeding or shall terminate
10the proceeding by publishing notice of termination in the Iowa
11administrative bulletin.
12 Sec. 3. Section 17A.4, subsection 2, Code 2017, is amended
13to read as follows:
142. An agency shall include in a preamble to each rule
15it adopts a brief explanation of the principal reasons for
16its action pursuant to section 17A.5 a concise statement
17of the principal reasons for and against the rule adopted,
18incorporating in the statement the reasons for overruling
19considerations urged against the rule and, if applicable, a
20brief explanation of the principal reasons for its failure
21to provide in that the rule for the waiver of the rule in
22specified situations if no such waiver provision is included
23in the rule. This explanatory requirement does not apply when
24the agency adopts a rule that only defines the meaning of a
25provision of law if the agency does not possess delegated
26authority to bind the courts to any extent with its definition.
27In addition, if requested to do so by an interested person,
28either prior to adoption or within thirty days thereafter, the
29agency shall issue a concise statement of the principal reasons
30for and against the rule adopted, incorporating therein the
31reasons for overruling considerations urged against the rule.
32This concise statement shall be issued either at the time of
33the adoption of the rule or within thirty-five days after the
34agency receives the request.
35 Sec. 4. NEW SECTION. 17A.4B Job impact statement.
-2- 11. a. “Benefit” means the reasonably identifiable and
2quantifiable positive effect or outcome that is expected to
3result from implementation of a rule.
4b. “Cost” means reasonably identifiable, significant, direct
5or indirect, economic impact that is expected to result from
6implementation of and compliance with a rule.
7c. “Cost-benefit analysis” means regulatory analysis
8to provide the public with transparency regarding the
9cost-effectiveness of a rule, including the economic costs
10and benefits and the effectiveness weighed by the agency
11in adopting the rule. “Cost-benefit analysis” includes a
12comparison of the probable costs and benefits of a rule to the
13probable costs and benefits of less intrusive or less expensive
14methods that exist for achieving the purpose of the rule.
15d. “Jobs” means private sector employment including
16self-employment and areas for potential for employment growth.
17e. “Jobs impact statement” means a statement that does all
18of the following:
19(1) Identifies the purpose of a rule and the applicable
20section of the statute that provides specific legal authority
21for the agency to adopt the rule.
22(2) Identifies and describes the cost that the agency
23anticipates state agencies, local governments, the public, and
24the regulated entities, including regulated businesses and
25self-employed individuals, will incur due to implementing and
26complying with a rule.
27(3) Determines whether a rule would have a positive
28or negative impact on private sector jobs and employment
29opportunities in Iowa.
30(4) Describes and quantifies the nature of the impact a rule
31will have on private sector jobs and employment opportunities
32including the categories of jobs and employment opportunities
33that are affected by the rule, and the number of jobs or
34potential job opportunities and the regions of the state
35affected by the rule.
-3- 1(5) Identifies, where possible, the additional costs to
2employers per employee due to implementing and complying with
3a rule.
4(6) Includes other relevant analysis requested by the
5administrative rules coordinator.
62. Prior to implementation of a rule, an agency shall
7take steps to minimize the adverse impact on jobs and
8the development of new employment opportunities due to
9implementation of the rule.
103. An agency shall provide a jobs impact statement to the
11administrative rules coordinator prior to publication of a
12notice of intended action or the publication of a rule filed
13without notice pursuant to section 17A.4, subsection 3.
144. The jobs impact statement shall be published as part
15of the preamble to the notice of rulemaking in the Iowa
16administrative bulletin, unless the administrative rules
17coordinator determines that publication of the entire jobs
18impact statement would be unnecessary or impractical.
195. An agency shall accept comments and information
20from stakeholders prior to final preparation of the jobs
21impact statement. Any concerned private sector employer or
22self-employed individual, potential employer, potential small
23business, or member of the public may submit information
24relating to a jobs impact statement prior to publication of
25a notice of intended action or publication of a rule filed
26without notice pursuant to section 17A.4, subsection 3. An
27agency may request that such information be submitted to the
28agency.
296. If a jobs impact statement is revised after a notice
30of intended action or a rule filed without notice pursuant to
31section 17A.4, subsection 3, is published, the revised jobs
32impact statement shall be published as part of the preamble
33to the adopted version of the rule, unless the administrative
34rules coordinator determines that publication of the entire
35jobs impact statement would be unnecessary or impractical.
-4- 17. The analysis in the jobs impact statement shall give
2particular weight to jobs in production sectors of the economy
3which includes the manufacturing and agricultural sectors of
4the economy and shall include analysis, where applicable, of
5the impact of the rule on expansion of existing businesses or
6facilities.
78. The administrative rules coordinator may waive the jobs
8impact statement requirement for rules proposed under section
917A.4, subsection 3, or section 17A.5, subsection 2, paragraph
10“b”, or if unnecessary or impractical.
119. By July 1, 2018, and every five years thereafter, an
12agency shall prepare a comprehensive jobs impact statement
13for all of the agency’s rules. An agency shall transmit
14each five-year comprehensive jobs impact statement to the
15administrative rules coordinator and the administrative rules
16review committee. An agency shall publish the statement, or a
17summary, on the internet site established pursuant to section
1817A.6A.
19 Sec. 5. NEW SECTION. 17A.4C Negotiated rulemaking.
201. An agency shall create a negotiated rulemaking group if
21required by statute. An agency may, on its own motion or upon
22request, create a negotiated rulemaking group if the agency
23determines that a negotiated rulemaking group can adequately
24represent the interests that will be significantly affected by
25a draft rule proposal and that it is feasible and appropriate
26in the particular rulemaking. Notice of the creation of a
27negotiated rulemaking group shall be published in the Iowa
28administrative bulletin. Upon establishing a negotiated
29rulemaking group, the agency shall also specify a time frame
30for group deliberations.
312. Unless otherwise provided by statute, the agency shall
32appoint a sufficient number of members to the group so that
33a fair cross section of interests and opinions regarding the
34draft rule proposal is represented. One person shall be
35appointed to represent the agency. The group shall select its
-5-1own chairperson and adopt its rules of procedure. All meetings
2of the group shall be open to the public. A majority of the
3membership constitutes a quorum. Members shall not receive
4any per diem payment but shall be reimbursed for all necessary
5expenses. Any vacancy shall be filled in the same manner as
6the initial appointment.
73. Prior to the submission of a notice of intended action
8to the administrative rules coordinator and the administrative
9code editor pursuant to section 17A.4, subsection 1, the group
10shall consider the terms or substance of the rule proposed
11by the agency and shall attempt to reach a consensus on the
12advisability of adopting the draft rule proposal.
134. If a group reaches a consensus on a draft rule proposal,
14the group shall transmit to the agency a report containing the
15consensus on the draft rule proposal. If the group does not
16reach a consensus on a draft rule proposal within the specified
17time frame, the group shall transmit to the agency a report
18stating that inability to reach a consensus and specifying any
19areas in which the group reached a consensus. The group may
20include in a report any other information, recommendations,
21or materials that the group considers appropriate. Any group
22member may include as an addendum to the report additional
23information, recommendations, or materials. A report issued
24under this subsection shall not be considered final agency
25action for purposes of judicial review.
265. Unless otherwise provided by statute, following
27consideration of a draft rule proposal by a negotiated
28rulemaking group, the agency may commence rulemaking as
29provided in section 17A.4. The group is automatically
30abolished upon the agency’s adoption of the rule pursuant to
31the provisions of section 17A.5.
32 Sec. 6. Section 17A.7, subsection 2, Code 2017, is amended
33to read as follows:
342. Beginning July 1, 2012, over each five-year period of
35time, an agency shall conduct an ongoing and comprehensive
-6-1review of all of the agency’s rules. The goal of the review
2is the identification and elimination of all rules of the
3agency that are outdated, redundant, or overbroad, ineffective,
4unnecessary, inconsistent or incompatible with statute or its
5own rules or those of other agencies, or otherwise undesirable.
6An agency shall commence its review by developing a plan of
7review in consultation with major stakeholders and constituent
8groups. As part of its review, an agency shall review existing
9policy and interpretive statements or similar documents to
10determine whether it would be necessary or appropriate to adopt
11these statements or documents as rules.
12a. An agency shall establish its five-year plan for
13review of its rules and publish the plan on the internet site
14established pursuant to section 17A.6A.
15b. An agency’s plan for review shall do all of the
16following:
17(1) Contain a schedule that lists when the review of each
18rule or group of rules will occur.
19(2) State the method by which the agency will analyze
20the rule under review regarding the considerations listed in
21paragraph “c”.
22(3) Provide a means for public participation in the review
23process and specify how interested persons may participate in
24the review.
25(4) Identify instances where the agency may require an
26exception to the review requirements.
27(5) Provide a process for ongoing review of rules after the
28initial five-year review period has expired.
29c. An agency shall analyze its rules under review by
30considering all of the following:
31(1) The need for the rule.
32(2) The clarity of the rule.
33(3) The intent and legal authority for the rule.
34(4) The qualitative and quantitative benefits and costs of
35the rule.
-7- 1(5) The fairness of the rule.
2d. When the agency completes the five-year review of the
3agency’s own rules, the agency shall provide a summary of
4the results to the administrative rules coordinator and the
5administrative rules review committee.
6 Sec. 7. NEW SECTION. 17A.24 Rule implementation of federal
7statute, regulation, or policy.
81. Except as otherwise explicitly authorized by state law,
9an agency charged with the implementation of a federal statute,
10regulation, or policy shall not implement the federal statute,
11regulation, or policy in a manner that exceeds the specific
12requirements of the federal statute, regulation, or policy.
132. Any portion of an agency rule or policy that implements
14a federal statute, regulation, or policy and that exceeds the
15specific requirements of the federal statute, regulation, or
16policy is automatically superseded by the specific requirements
17of that federal statute, regulation, or policy.
18 Sec. 8. ENVIRONMENTAL REGULATION STUDY.
191. The legislative council, in consultation with the
20department of natural resources, shall establish a study to
21analyze the projected financial effects of current and proposed
22United States environmental protection agency regulations and
23Iowa department of natural resources rules on Iowa cities over
24a ten-year period.
252. The study should include an analysis of projected
26financial costs of such regulations and rules on a hypothetical
27small Iowa community, medium-sized Iowa community, and large
28Iowa community.
293. The study shall be concluded by June 30, 2018, and a
30report shall be provided to the members of the general assembly
31and to the governor.
32EXPLANATION
33The inclusion of this explanation does not constitute agreement with
34the explanation’s substance by the members of the general assembly.
35This bill relates to the review of administrative rules and
-8-1the rulemaking process.
2CITIZENS’ ADVISORY COMMITTEE. The bill requires that the
3administrative rules coordinator create a citizens’ committee,
4to advise the administrative rules coordinator on rulemaking
5issues. The members of the committee shall not be paid a per
6diem but shall be reimbursed for travel expenses.
7RULEMAKING HEARINGS THROUGHOUT STATE. The bill requires
8administrative agencies, to the extent practicable, to hold
9rulemaking hearings in varied locations throughout the state
10via the Iowa communications network or other electronic means.
11The bill provides that a hearing must be held in a particular
12city or county when 25 interested persons from that city or
13county so request.
14PRINCIPAL REASONS FOR AND AGAINST RULE. The bill requires
15that every adopted rule must be accompanied by a concise
16statement of the principal reasons for and against the rule
17adopted. Under current law such a statement is only provided
18on request.
19JOBS IMPACT STATEMENTS. The bill requires that every
20proposed rule under a notice of intended action or publication
21without notice contain a jobs impact statement which outlines
22the purpose and statutory authority of the rule and analyzes
23and sets out in detail the impact of the proposed rule on state
24agencies, local governments, the public, and the regulated
25entities, including regulated businesses and self-employed
26individuals affected by the rule. The statement must also
27determine whether a proposed rule would have a positive
28or negative impact on private sector jobs and employment
29opportunities.
30Commencing July 1, 2018, and every five years thereafter,
31each agency shall prepare a jobs impact statement for all of
32the agency’s rules.
33As part of this requirement, an agency is required to
34takes steps to minimize the adverse impact on jobs and the
35development of new employment opportunities before proposing
-9-1a rule.
2The administrative rules coordinator may waive the jobs
3impact statement requirement for rules filed using emergency
4rulemaking procedures or if unnecessary or impractical.
5NEGOTIATED RULEMAKING GROUPS. If required by statute, this
6bill requires an agency to create a negotiated rulemaking group
7to review draft rule proposals prior to filing a notice of
8intended action pursuant to Code section 17A.4, subsection 1.
9Where a statute does not require this review, the bill allows
10an agency to create such a review group. Members are appointed
11by the agency and the composition must adequately represent
12a fair cross section of interests and opinions regarding the
13rule. Once such a group is created, the agency may only
14commence rulemaking after the group has considered the draft
15rule proposal in question.
16FIVE-YEAR CYCLE OF AGENCY REVIEW OF RULES. Current
17law requires that each state agency review all of its
18administrative rules on a five-year cycle. The bill provides
19additional procedures and criteria for such reviews.
20FEDERAL LAW IMPLEMENTATION. The bill also provides that
21state implementation of a federal statute, regulation,
22or policy by a state agency shall not exceed the specific
23requirements of the federal statute, regulation, or
24policy, except as specifically allowed by state law. Any
25portion of a state rule or policy that implements a federal
26statute, regulation, or policy and that exceeds the specific
27requirements of the federal statute, regulation, or policy is
28automatically superseded by the specific requirements of that
29federal statute, regulation, or policy.
30ENVIRONMENTAL RULES STUDY. The bill provides that the
31legislative council, in consultation with the department of
32natural resources, shall establish a study to analyze the
33projected financial effects of current and proposed United
34States environmental protection agency regulations and Iowa
35department of natural resources rules on Iowa cities over a
-10-110-year period. The report of the study must be completed by
2June 30, 2018.
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