Iowa House Bill HF718

Iowa 2025-2026 Regular Session

• Introduced: 3/3/25
• Refer: 3/3/25

Caption

A bill for an act establishing processes for delay, rescission, and approval of certain administrative rules based on fiscal impact and including applicability provisions.

Impact

Upon the adjournment of the applicable legislative session, any rule subjected to this delay is automatically rescinded and cannot be enacted. The agency responsible for the rule may engage in further rulemaking during this delay period, permitting them to amend or entirely repeal the rule in question. This process is designed to ensure transparency and legislative oversight regarding significant administrative rules that might impact public funding and resources significantly.

Summary

House File 718 is a legislative proposal that seeks to create structured processes for delaying, rescinding, and approving certain administrative rules based on their fiscal impact. The bill stipulates that if a fiscal impact statement indicates that a rule would necessitate additional expenditures exceeding one million dollars annually or five million dollars over five years, the effective date of that rule is postponed until after the next regular session of the Iowa General Assembly concludes. This provision aims to ensure a more thorough review of significant financial implications before rules can take effect.

Contention

The introduction of this bill is likely to stir debate among lawmakers regarding the balance between efficient governance and thorough oversight. Proponents may argue that this bill enhances state control over significant financial decisions relating to administrative rules, fostering a more judicious allocation of state resources. However, opponents might contend that it could lead to unnecessary bureaucratic delays in the implementation of crucial regulations, stifling agencies' ability to act swiftly in response to pressing issues.

Fiscal considerations

Under current law, a fiscal impact statement is required for rules expecting significant expenditures, but HF718 intensifies this requirement to ensure direct legislative involvement when substantial spending is anticipated. It establishes clearer accountability, as any rule accompanied by a fiscal impact determination must be filed promptly and analyzed. This step is intended to empower the legislative services agency to summarize the potential financial impact, helping legislators make informed decisions.