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Bill > HF718
IA HF718
IA HF718A bill for an act establishing processes for delay, rescission, and approval of certain administrative rules based on fiscal impact and including applicability provisions.
summary
Introduced
03/03/2025
03/03/2025
In Committee
03/03/2025
03/03/2025
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill establishes processes for delay, rescission, and approval of certain administrative rules (rules) based on fiscal impact statements prepared by agencies as required under Code section 17A.4, subsection 4. The bill provides that if the fiscal impact statement prepared by an agency for an adopted rule indicates the rule will necessitate additional annual expenditures of at least $1 million, or combined expenditures of at least $5 million within five years, by all affected persons, including the agency itself, the effective date of the rule shall be delayed until the adjournment of the next regular session of the general assembly that convenes after the rule is published in the Iowa administrative bulletin (bulletin). The bill provides that upon the adjournment of the specified regular session of the general assembly, a rule delayed in this manner is rescinded and shall not become effective. The bill authorizes an agency, during the period of a delay, to engage in further rulemaking that will amend or repeal a rule subject to the delay. However, any rule that amends or repeals a rule subject to a delay, and that will become effective during the delay, shall be subject to that delay as though it were included in the initially delayed rule. The bill authorizes an agency, during the period of a delay, to submit a notice of rescission for publication in the bulletin that rescinds the rule. Upon publication of the notice, if the rule has not already become effective or been rescinded, the rule is rescinded and shall not become effective. The bill provides that the general assembly may, by a joint resolution approved by the governor, approve a rule delayed in this manner prior to its rescission. Upon approval of the joint resolution by the governor, the rule shall not be rescinded and shall become effective upon the date of approval of the joint resolution by the governor, or another date specified in the resolution. The bill shall not be construed to prohibit the general assembly from enacting other legislation relating to a delayed rule, including but not limited to a joint resolution to nullify the rule. For purposes of the bill, “additional annual expenditures” includes expenditures by political subdivisions or agencies, and entities which contract with political subdivisions, to provide services as described under current law, but does not include an expenditure of funds by the agency that adopted a rule if the funds were appropriated to the agency for the purpose of the agency program or other function implemented by the rule. The bill addresses how the procedures provided in the bill apply to rules adopted pursuant to Code section 17A.4, subsection 3, and Code section 17A.5, subsection 2, paragraph “b” (emergency rules). Under current law, a fiscal impact statement that is required for a noticed or adopted rule must be promptly delivered to the legislative services agency. The bill provides that the statement must be included with a rule when it is filed. The bill applies to rules adopted by agencies on or after July 1, 2026.
AI Summary
This bill establishes a new process for delaying and potentially rescinding administrative rules with significant fiscal impacts in Iowa. If a state agency creates a rule that would require additional annual expenditures of at least $1 million, or combined expenditures of at least $5 million within five years, the rule's effective date will be automatically delayed until the adjournment of the next regular legislative session. At that point, the rule will be automatically rescinded unless the general assembly approves it through a joint resolution signed by the governor. During the delay period, the agency can modify the rule or choose to rescind it voluntarily. The bill also modifies existing requirements for fiscal impact statements, mandating that they be filed directly with the legislative services agency along with the rule. The new provisions will apply to rules adopted by agencies on or after July 1, 2026, and are designed to provide increased legislative oversight of administrative rules with substantial financial implications. The bill defines "additional annual expenditures" to include costs to political subdivisions and contracted entities, but excludes funds already appropriated to the agency for its specific program or function.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
Introduced, referred to State Government. H.J. 485. (on 03/03/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF718 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HF718.html |
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