House File 717 - Introduced HOUSE FILE 717 BY WILLS A BILL FOR An Act relating to procedures for, and judicial review of, 1 licensing and including effective date and applicability 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2665YH (2) 91 je/ko
H.F. 717 Section 1. Section 17A.18, subsection 1, Code 2025, is 1 amended to read as follows: 2 1. When the The grant, denial, or renewal of a license is 3 required by Constitution or statute to shall be preceded by 4 notice and opportunity for an evidentiary hearing, and the 5 provisions of this chapter concerning contested cases apply to 6 such action . 7 Sec. 2. NEW SECTION . 27D.1 Definitions. 8 As used in this chapter, unless the context otherwise 9 requires: 10 1. Agency means the same as defined in section 17A.2. 11 2. Agency action means the same as defined in section 12 17A.2. 13 3. Contested case means the same as defined in section 14 17A.2. 15 4. License means the same as defined in section 17A.2. 16 5. Licensing means the same as defined in section 17A.2. 17 Sec. 3. NEW SECTION . 27D.2 Criteria for licenses clear 18 and unambiguous language. 19 1. Any criterion in statute, rule, or other agency action 20 for licensing of a constitutionally protected activity shall be 21 specified in clear and unambiguous language. Any criterion in 22 violation of this section shall be void and unenforceable. 23 2. In determining whether language is clear and 24 unambiguous, a court shall not give any presumption in favor of 25 the validity of a criterion and shall not give any deference to 26 the view of an agency. 27 Sec. 4. NEW SECTION . 27D.3 Time period for license 28 applications. 29 When the time period for an agency to make a decision on an 30 application for a license is not specified in statute, the time 31 period shall be thirty days. An agency and an applicant for a 32 license may mutually agree to extend the thirty-day period. 33 Sec. 5. NEW SECTION . 27D.4 Contested cases on licensing 34 decisions requirements. 35 -1- LSB 2665YH (2) 91 je/ko 1/ 6
H.F. 717 1. This section shall apply to a contested case proceeding 1 on a licensing decision by an agency. 2 a. The rules of civil procedure and the rules of evidence 3 shall apply. 4 b. All proceedings shall be conducted orally and shall be 5 recorded at the agencys expense either by mechanized means or 6 by certified shorthand reporters. 7 c. On application of a party or the agency, an 8 administrative law judge may permit a deposition of a witness 9 to be taken if the witness cannot be subpoenaed or is unable 10 to attend a hearing. Such a deposition shall be taken in the 11 manner and on the terms designated by the administrative law 12 judge. 13 d. The agency shall have the burden of persuasion. The 14 agency shall have the burden of proof by a preponderance of the 15 evidence unless a higher burden of proof is provided by law. 16 e. In addition to the grounds specified in section 17A.11, 17 subsection 2, any person serving or designated to serve 18 alone or with others as a presiding officer is subject to 19 disqualification for lack of technical expertise necessary to 20 effectively preside at a hearing. 21 2. Chapter 17A and other provisions of law relating to 22 contested case hearings shall apply to a contested case 23 proceeding on a licensing decision by an agency where such 24 requirements are not in conflict with this section. However, 25 section 17A.10 shall apply to all of the requirements provided 26 in this section. 27 Sec. 6. NEW SECTION . 27D.5 Judicial review of licensing 28 decisions. 29 1. In any action for judicial review of final agency action 30 on a licensing decision, the parties shall be entitled to a 31 speedy and public determination by the court. If requested 32 by a party to such an action within thirty days after a 33 petition for judicial review is filed, the court shall hold an 34 evidentiary hearing, including testimony and argument, to the 35 -2- LSB 2665YH (2) 91 je/ko 2/ 6
H.F. 717 extent necessary to make the determination. The court shall 1 review de novo all relevant questions of law, including the 2 interpretation of constitutional, statutory, and regulatory 3 provisions, unless the parties stipulate otherwise. On demand 4 of any party, a determination of facts shall be made by a jury. 5 2. Relevant and admissible exhibits and testimony that 6 were not received during contested case proceedings shall be 7 admitted by the court if compliant with the rules of evidence. 8 An objection that a party failed to make to evidence offered 9 during contested case proceedings shall be considered by the 10 court unless either of the following is true: 11 a. The exhibit, testimony, or objection was withheld for 12 purposes of delay, harassment, or other improper purpose. 13 b. Allowing admission of the exhibit or testimony or 14 consideration of the objection would cause substantial 15 prejudice to another party. 16 3. Section 17A.19 and other provisions of law relating to 17 judicial review of agency action shall apply to judicial review 18 of a licensing decision by an agency where such requirements 19 are not in conflict with this section. 20 Sec. 7. NEW SECTION . 27D.6 Conflicts with other provisions 21 of state law. 22 Except as otherwise provided in this chapter, the provisions 23 of this chapter apply notwithstanding any other provision of 24 state law to the contrary, including but not limited to chapter 25 17A. 26 Sec. 8. REPORT TO GENERAL ASSEMBLY ON IMPACT TO 27 AGENCIES. Any agency, as defined in section 17A.2, may submit 28 a report to the governor and the general assembly by January 29 1, 2026, regarding the impact of this Act on the functions of 30 the agency. The report may include recommendations, proposed 31 legislation, and any other relevant information. An agency may 32 consult with interested stakeholders when preparing the report. 33 Sec. 9. EFFECTIVE DATE. This Act takes effect July 1, 2026. 34 Sec. 10. APPLICABILITY. This Act applies to agency action, 35 -3- LSB 2665YH (2) 91 je/ko 3/ 6
H.F. 717 as defined in section 17A.2, and judicial review thereof, 1 commenced on or after the effective date of this Act. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanations substance by the members of the general assembly. 5 This bill relates to procedures for, and judicial review of, 6 licensing. 7 The bill defines license as the same as provided in 8 Code chapter 17A: the whole or a part of any agency permit, 9 certificate, approval, registration, charter, or similar form 10 of permission required by statute. Additional definitions in 11 the bill are the same as defined in Code chapter 17A. 12 The bill requires that any criterion in statute, rule, 13 or other agency action for licensing of a constitutionally 14 protected activity be specified in clear and unambiguous 15 language. Any criterion in violation of this requirement shall 16 be void and unenforceable. In determining whether language is 17 clear and unambiguous, a court shall not give any presumption 18 in favor of the validity of a criterion and shall not give any 19 deference to the view of an agency. 20 The bill provides that when the time period for an agency 21 to make a decision on an application for a license is not 22 specified in statute, the time period shall be 30 days unless 23 an agency and an applicant for a license mutually agree to 24 extend the period. 25 The bill provides requirements that apply to a contested 26 case proceeding on a licensing decision by an agency. The bill 27 provides that the rules of civil procedure and the rules of 28 evidence shall apply. The bill provides that all proceedings 29 shall be conducted orally and shall be recorded at the agencys 30 expense. On application of a party or the agency, the bill 31 authorizes an administrative law judge to permit a deposition 32 of a witness to be taken if the witness cannot be subpoenaed 33 or is unable to attend a hearing. The bill provides that 34 the agency shall have the burden of persuasion. The bill 35 -4- LSB 2665YH (2) 91 je/ko 4/ 6
H.F. 717 provides that the agency shall have the burden of proof by a 1 preponderance of the evidence unless a higher burden of proof 2 is provided by law. The bill provides that any person serving 3 as a presiding officer is subject to disqualification for lack 4 of technical expertise necessary to effectively preside at a 5 hearing. The bill specifies that Code chapter 17A and other 6 provisions of law relating to contested case hearings shall 7 apply to a contested case proceeding on a licensing decision by 8 an agency where such requirements are not in conflict with the 9 bill. 10 The bill provides requirements that apply to an action 11 for judicial review of final agency action on a licensing 12 decision. The bill provides that the parties shall be entitled 13 to a speedy and public determination by the court. The bill 14 provides that the court shall hold an evidentiary hearing, to 15 the extent necessary to make the determination, if requested 16 by a party to such an action within 30 days after a petition 17 for judicial review is filed. The bill provides that the 18 court shall review de novo all relevant questions of law, 19 including the interpretation of constitutional, statutory, and 20 regulatory provisions, unless the parties stipulate otherwise. 21 The bill provides that a determination of facts shall be made 22 by a jury on demand of any party. The bill provides that 23 relevant and admissible exhibits and testimony that were not 24 received during contested case proceedings shall be admitted 25 by the court if compliant with the rules of evidence. The bill 26 provides procedures for consideration of objections that a 27 party failed to make to evidence offered during contested case 28 proceedings. The bill specifies that Code section 17A.19 and 29 other provisions of law relating to judicial review of agency 30 action shall apply to judicial review of a licensing decision 31 by an agency where such requirements are not in conflict with 32 the bill. 33 The provisions of the bill apply notwithstanding any other 34 provision of state law to the contrary. 35 -5- LSB 2665YH (2) 91 je/ko 5/ 6
H.F. 717 The bill strikes language in Code chapter 17A specifying 1 that the provisions of Code chapter 17A concerning contested 2 cases apply to licensing decisions by agencies only when notice 3 and opportunity for an evidentiary hearing are required by 4 Constitution or statute. The bill instead provides that the 5 provisions of Code chapter 17A concerning contested cases 6 always apply to such decisions. 7 The bill authorizes an agency to submit a report to the 8 governor and the general assembly by January 1, 2026, regarding 9 the impact of the bill on the functions of the agency. The 10 report may include recommendations, proposed legislation, and 11 any other relevant information. 12 The bill takes effect July 1, 2026, and applies to agency 13 action, and judicial review thereof, commenced on or after that 14 date. 15 -6- LSB 2665YH (2) 91 je/ko 6/ 6