Bill Text: IA SF487 | 2021-2022 | 89th General Assembly | Amended


Bill Title: A bill for an act relating to the operation of state government, including the review of state boards and the regulation of professions and occupations, and including effective date and applicability provisions. (Formerly SSB 1046.)

Spectrum: Committee Bill

Status: (Engrossed - Dead) 2022-03-28 - Fiscal note. [SF487 Detail]

Download: Iowa-2021-SF487-Amended.html
Senate File 487 - Reprinted SENATE FILE 487 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO SSB 1046) (As Amended and Passed by the Senate March 17, 2021 ) A BILL FOR An Act relating to the operation of state government, 1 including the review of state boards and the regulation of 2 professions and occupations, and including effective date 3 and applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 SF 487 (4) 89 ss/rh/mb
S.F. 487 DIVISION I 1 REGULATION OF PROFESSIONS 2 Section 1. NEW SECTION . 272C.16 Definitions. 3 For the purposes of this subchapter: 4 1. “Health profession board” means an entity regulating, 5 licensing, or certifying a profession regulated pursuant to 6 Title IV, subtitle 3. 7 2. “Nonhealth profession” means a profession regulated by 8 this state other than provided in Title IV, subtitle 3. 9 3. “Regulated health profession” means a profession 10 regulated pursuant to Title IV, subtitle 3. 11 4. “Unregulated health profession” means a profession 12 pursuant to Title IV, subtitle 3, that is not currently 13 regulated by any entity of this state. 14 5. “Unregulated nonhealth profession” means a profession 15 that is not currently regulated by any entity of this state 16 that is not an unregulated health profession. 17 Sec. 2. NEW SECTION . 272C.17 Regulation of unregulated 18 health professions. 19 1. An unregulated health profession shall not be subject 20 to regulation by any entity of this state for the purpose of 21 prohibiting competition but only for the exclusive purpose 22 of protecting the public health or safety. All proposed 23 legislation to regulate an unregulated health profession shall 24 be reviewed by the general assembly to determine that all of 25 the following conditions are met: 26 a. There is credible evidence that the unregulated practice 27 of the unregulated health profession will clearly harm or 28 endanger the public health or safety and the potential for harm 29 is easily recognizable and not remote. 30 b. The public needs and can reasonably be expected 31 to benefit from an assurance of initial and continuing 32 professional ability. 33 c. The public cannot be effectively protected by other means 34 in a more cost-efficient manner. 35 -1- SF 487 (4) 89 ss/rh/mb 1/ 20
S.F. 487 2. Prior to considering proposed legislation to regulate an 1 unregulated health profession for passage to the floor of the 2 senate or the house of representatives, a legislative committee 3 to which proposed legislation to regulate an unregulated 4 health profession has been referred shall consider whether the 5 conditions in subsection 1 have been met. If the committee 6 finds that the conditions in subsection 1 have been met, the 7 committee shall consider whether the legislation is the least 8 restrictive method of regulation, as defined in section 4B.1, 9 to address the specific harm or danger identified in this 10 subsection. 11 3. The legislative committee shall submit its findings 12 regarding whether the proposed legislation meets the conditions 13 in subsections 1 and 2 to the president of the senate or the 14 speaker of the house of representatives, who shall make the 15 findings available to each member of the general assembly on 16 the internet site of the general assembly. 17 4. This section does not allow a person to practice an 18 unregulated health profession if the profession includes 19 practices within the scope of practice of an existing regulated 20 health profession. 21 Sec. 3. NEW SECTION . 272C.18 Proposed regulation of 22 unregulated health professions —— written reports. 23 1. A member of the general assembly introducing proposed 24 legislation to regulate an unregulated health profession 25 shall submit with the legislation a report, prepared by the 26 legislative services agency, addressing the requirements 27 contained in subsection 2. The report shall be submitted to 28 the president of the senate or the speaker of the house of 29 representatives prior to full consideration of the legislation 30 by the senate or the house of representatives and made 31 available on the internet site of the general assembly. 32 2. The report shall address all of the following and 33 identify the source of all information contained in the report: 34 a. Why regulation is necessary including all of the 35 -2- SF 487 (4) 89 ss/rh/mb 2/ 20
S.F. 487 following: 1 (1) The nature of the proven harm to the public if the 2 unregulated health profession is not regulated and the extent 3 to which there is a threat to the public health or safety. 4 (2) The extent of autonomy a practitioner has, as indicated 5 by the extent to which the profession calls for the exercise 6 of independent judgment and the extent to which a practitioner 7 is supervised. 8 b. The efforts made to address the problem addressed by the 9 legislation including all of the following: 10 (1) Voluntary efforts, if any, undertaken by members of the 11 profession. 12 (2) Recourse to, and the extent of use of, applicable law 13 and whether the law could be amended to control the problem. 14 c. The alternatives considered including all of the 15 following: 16 (1) Regulation of business employers or practitioners 17 rather than employee practitioners. 18 (2) Regulation of the program or service rather than 19 individual practitioners. 20 (3) Registration of all practitioners. 21 (4) Certification of all practitioners. 22 (5) Other viable alternatives. 23 (6) If licensing is sought, why licensing would serve to 24 protect the public health or safety. 25 d. The benefit to the public health or safety if regulation 26 is granted including all of the following: 27 (1) The extent to which the incidence of specific problems 28 present in the unregulated health profession can reasonably be 29 expected to be reduced by regulation. 30 (2) Whether the public can identify qualified 31 practitioners. 32 (3) The extent to which qualified practitioners are 33 competent including all of the following: 34 (a) The composition, powers, duties, and practices of the 35 -3- SF 487 (4) 89 ss/rh/mb 3/ 20
S.F. 487 proposed regulatory entity. 1 (b) Whether current practitioners of an unregulated health 2 profession will be allowed to continue to practice and whether 3 they will be required to meet the qualifications for the 4 regulated health profession. 5 (c) The nature of the standards proposed for registration, 6 certification, or licensure as compared with the standards in 7 other jurisdictions. 8 (d) Whether the proposed regulatory entity would be 9 authorized to enter into reciprocity agreements with other 10 jurisdictions. 11 (e) The nature and duration of any training and experience 12 required, whether applicants will be required to pass an 13 examination, and whether there will be alternative methods to 14 enter the health profession. 15 (4) Assurances to the public that practitioners have 16 maintained their competence including all of the following: 17 (a) Whether a registration, certificate, or license will 18 include an expiration date. 19 (b) Whether the renewal of a registration, certificate, 20 or license will be based only on payment of a fee or whether 21 renewal will involve reexamination, peer review, or other 22 enforcement. 23 e. The extent to which regulation might harm the public 24 including all of the following: 25 (1) The extent to which regulation will restrict entry into 26 the profession, including whether the proposed standards are 27 more restrictive than necessary to ensure a practitioner’s safe 28 and effective performance in the practice of the profession. 29 (2) Whether there are professions similar to the 30 unregulated health profession that should be included in, or 31 portions of the unregulated health profession that should be 32 excluded from, the proposed legislation. 33 f. The maintenance of professional standards including all 34 of the following: 35 -4- SF 487 (4) 89 ss/rh/mb 4/ 20
S.F. 487 (1) Whether effective quality assurance standards exist 1 in the profession such as legal requirements associated with 2 specific programs that define or enforce standards or a code 3 of ethics. 4 (2) How the proposed legislation will ensure quality, 5 including whether a code of ethics will be adopted and the 6 grounds for suspension or revocation of a registration, 7 certificate, or license. 8 g. A description of the group proposed for regulation, 9 including a list of associations, organizations, and other 10 professional groups representing practitioners in this state, 11 an estimate of the number of practitioners in each professional 12 group, and whether the professional groups represent different 13 levels of practice. 14 h. The expected costs of regulation, including the impact of 15 costs on the public and costs imposed on this state. 16 Sec. 4. NEW SECTION . 272C.19 Proposed increased regulation 17 of regulated health professions —— written reports. 18 1. A member of the general assembly introducing proposed 19 legislation to expand the scope of practice of a regulated 20 health profession shall submit with the legislation a report, 21 prepared by the legislative services agency, addressing the 22 requirements contained in subsection 2. The report shall be 23 submitted to the president of the senate or the speaker of the 24 house of representatives prior to full consideration of the 25 legislation by the senate or the house of representatives and 26 made available on the internet site of the general assembly. 27 2. The report shall address all of the following and 28 identify the source of all information contained in the report: 29 a. Why an expanded scope of practice for the regulated 30 health profession is beneficial, including the extent to which 31 health care consumers need and will benefit from safe, quality 32 health care from practitioners within the expanded scope of 33 practice. 34 b. Whether expanding the scope of practice of practitioners 35 -5- SF 487 (4) 89 ss/rh/mb 5/ 20
S.F. 487 in the regulated health profession will require practitioners 1 to have didactic and clinical education from accredited 2 professional schools or training from recognized programs that 3 prepare them to perform within the proposed expanded scope of 4 practice, and specific educational or training requirements for 5 that proposed expanded scope of practice. 6 c. Whether the subject matter of the proposed expanded scope 7 of practice is currently tested by nationally recognized and 8 accepted examinations for applicants for professional licensure 9 and the details of the examination relating to the expanded 10 scope of practice. 11 d. The extent to which implementing the proposed expanded 12 scope of practice may result in savings or a cost to this state 13 and to the public. 14 e. The relevant regulated health profession licensure laws, 15 if any, in this state and other states. 16 f. Recommendations, if any, the applicable regulatory entity 17 or entities, the department of public health, and accredited 18 educational or training programs. 19 3. a. Prior to considering proposed legislation to 20 expand the scope of practice of a regulated health profession 21 for passage to the floor of the senate or the house of 22 representatives, a legislative committee to which proposed 23 legislation has been referred shall consider all of the 24 following: 25 (1) Whether the expansion of a regulated health 26 profession’s scope of practice is only for the purpose of 27 protecting the public from a specific harm or danger. 28 (2) Whether the addition of adequately trained 29 practitioners providing an expanded range of health care 30 services will have a beneficial effect on the public and 31 increase access to safe, quality health care. 32 (3) Whether any changes in the entity regulating the 33 regulated health profession are necessary to protect the public 34 health or safety. 35 -6- SF 487 (4) 89 ss/rh/mb 6/ 20
S.F. 487 b. The legislative committee shall not consider competition 1 with or from other regulated health professions or whether a 2 practitioner will be able to obtain health insurance coverage 3 for the proposed expanded scope of practice. 4 Sec. 5. NEW SECTION . 272C.20 Continuing education 5 requirements —— evidence of efficacy. 6 A member of the general assembly introducing proposed 7 legislation to impose or increase a continuing education 8 requirement on a regulated health profession shall submit with 9 the legislation evidence that such a requirement has proven 10 effective for the health profession. The evidence shall be 11 submitted to the president of the senate or the speaker of the 12 house of representatives prior to full consideration of the 13 legislation by the senate or the house of representatives and 14 made available on the internet site of the general assembly. 15 Sec. 6. NEW SECTION . 272C.21 Regulation of unregulated 16 nonhealth professions. 17 1. An unregulated nonhealth profession shall not be 18 regulated except for the exclusive purpose of protecting the 19 public health or safety. All proposed legislation to regulate 20 an unregulated nonhealth profession shall be reviewed by the 21 legislative committee to which the proposed legislation is 22 referred to ensure that all of the following requirements are 23 met: 24 a. The unregulated practice of the nonhealth profession can 25 clearly harm the public health or safety. 26 b. The actual or anticipated public benefit of the 27 regulation clearly exceeds the costs imposed by the regulation 28 on consumers, businesses, and individuals. 29 c. The public needs and can reasonably be expected 30 to benefit from an assurance of initial and continuing 31 professional ability. 32 d. The public cannot be effectively protected by private 33 certification or other alternatives. 34 2. If a legislative committee finds that the proposed 35 -7- SF 487 (4) 89 ss/rh/mb 7/ 20
S.F. 487 legislation satisfies the conditions in subsection 1, the 1 committee shall examine data from multiple sources and shall 2 consider evidence of actual harm to the public related to 3 the unregulated nonhealth profession being considered for 4 regulation. The evidence may include industry association 5 data; federal, state, and local government data; business 6 reports; complaints to law enforcement, relevant state 7 agencies, and the better business bureau; and data from 8 agencies in other states with and without similar systems of 9 regulation. 10 3. If, after consideration of evidence pursuant to 11 subsection 2, the legislative committee finds that it is 12 necessary to regulate an unregulated nonhealth profession, the 13 committee shall review the proposed legislation to determine 14 whether it is the least restrictive regulation, as defined in 15 section 4B.1, necessary and whether the regulation protects a 16 discrete interest group from economic competition. 17 4. The legislative committee shall submit its findings 18 regarding whether the proposed legislation meets the 19 requirements of subsections 1, 2, and 3 to the president of 20 the senate or the speaker of the house of representatives, who 21 shall make the findings available to each member of the general 22 assembly on the internet site of the general assembly. 23 5. This section does not allow a person to practice an 24 unregulated nonhealth profession if the profession includes 25 practices within the scope of practice of an existing regulated 26 nonhealth profession. 27 Sec. 7. NEW SECTION . 272C.22 Proposed regulation of 28 unregulated nonhealth professions —— written reports. 29 1. A member of the general assembly introducing legislation 30 to regulate an unregulated nonhealth profession shall submit 31 with the legislation a report, prepared by the legislative 32 services agency, addressing the requirements contained in 33 subsection 2. The report shall be submitted to the president 34 of the senate or the speaker of the house of representatives 35 -8- SF 487 (4) 89 ss/rh/mb 8/ 20
S.F. 487 prior to full consideration of the legislation by the senate or 1 the house of representatives and made available on the internet 2 site of the general assembly. 3 2. The report shall address all of the following and 4 identify the source of all information contained in the report: 5 a. Why regulation is necessary including what particular 6 problem regulation would address. 7 b. The efforts made to address the problem. 8 c. The alternatives considered. 9 d. The benefit to the public health or safety of regulating 10 the profession. 11 e. The extent to which regulation might harm the public. 12 f. The maintenance of professional standards including all 13 of the following: 14 (1) Whether effective quality assurance standards exist 15 in the profession such as legal requirements associated with 16 specific programs that define or enforce standards or a code 17 of ethics. 18 (2) How the proposed legislation will assure quality 19 including the extent to which a code of ethics will be 20 adopted and the grounds for the suspension or revocation of a 21 registration, certificate, or license. 22 g. A description of the profession proposed for regulation, 23 including a list of associations, organizations, and other 24 professional groups representing practitioners in this state, 25 an estimate of the number of practitioners in each profession, 26 and whether the professional groups represent different levels 27 of practice. 28 h. The expected costs of regulation, including the impact of 29 costs on the public and costs imposed on this state. 30 Sec. 8. REPEAL. Section 3.20, Code 2021, is repealed. 31 DIVISION II 32 BOARD REVIEWS 33 Sec. 9. Section 2.69, subsection 1, Code 2021, is amended 34 to read as follows: 35 -9- SF 487 (4) 89 ss/rh/mb 9/ 20
S.F. 487 1. A state government efficiency review committee is 1 established which shall meet at least every two years to review 2 the operations of state government monthly, as necessary, 3 to efficiently review all boards according to the schedule 4 established by the legislative services agency pursuant to 5 section 4A.5 . The committee shall meet as directed by the 6 legislative council. 7 Sec. 10. Section 2.69, subsection 2, paragraph a, Code 2021, 8 is amended to read as follows: 9 a. The committee shall consist of three members of the 10 senate appointed by the majority leader of the senate, two 11 members of the senate appointed by the minority leader of the 12 senate, three members of the house of representatives appointed 13 by the speaker of the house of representatives, and two members 14 of the house of representatives appointed by the minority 15 leader of the house of representatives , and one ex officio, 16 nonvoting member appointed by the governor . 17 Sec. 11. Section 2.69, subsections 4, 5, and 6, Code 2021, 18 are amended by striking the subsections. 19 Sec. 12. NEW SECTION . 4A.1 Definitions. 20 As used in this chapter, unless the context otherwise 21 requires: 22 1. “Board” means any board, council, commission, committee, 23 panel, review team, or foundation of this state, except that 24 “board” does not include a pension board or the Iowa ethics and 25 campaign disclosure board created in section 68B.32. 26 2. “Board review criteria” means the criteria required to be 27 considered under section 4A.3. 28 3. “Committee” means the state government efficiency review 29 committee created pursuant to section 2.69. 30 Sec. 13. NEW SECTION . 4A.2 Committee —— review of boards. 31 1. The committee shall carry out the functions provided in 32 this chapter. 33 2. Administrative assistance shall be provided by the 34 legislative services agency and by staff of each caucus of the 35 -10- SF 487 (4) 89 ss/rh/mb 10/ 20
S.F. 487 general assembly. 1 Sec. 14. NEW SECTION . 4A.3 Board reviews. 2 1. The committee shall review the usefulness, performance, 3 and efficacy of each board as provided in subsection 2. The 4 committee shall hold hearings to receive the testimony of the 5 public and of the chief executive officer of the board. After 6 completing a review, the committee shall prepare and publish 7 a report of its findings and recommendations as provided in 8 section 4A.4. 9 2. The legislative services agency shall establish a 10 schedule for the committee to review each board such that the 11 committee reviews approximately one-fifth of all boards each 12 calendar year and each board has been reviewed once between 13 the calendar years 2022 and 2027, and once every five years 14 thereafter. The committee may modify the schedule as necessary 15 to facilitate the efficient administration of the committee. 16 3. A board that is scheduled for review shall submit a 17 report to the committee thirty days prior to the date that it 18 is scheduled for review that includes all of the following 19 information: 20 a. The board’s primary purpose and its goals and objectives. 21 b. The board’s past and anticipated workload, the number of 22 staff required to complete that workload, and the board’s total 23 number of staff. 24 c. The board’s past and anticipated budgets and its sources 25 of funding. 26 d. The number of members that compose the governing board or 27 other governing entity of the board and member compensation, 28 if any. 29 4. A board subject to review shall bear the burden of 30 demonstrating to the committee a public need for its continued 31 existence. In determining whether a board has met that 32 burden, the committee shall consider all of the following, as 33 applicable: 34 a. Whether continuation of the board is necessary to protect 35 -11- SF 487 (4) 89 ss/rh/mb 11/ 20
S.F. 487 the health or safety of the public, and if so, whether the 1 board’s authority is narrowly tailored to protect against 2 present, recognizable, and significant harms to the health or 3 safety of the public. 4 b. Whether the public could be protected or served in an 5 alternate or less restrictive manner. 6 c. Whether the board serves a specific private interest. 7 d. Whether rules adopted by the board are consistent with 8 the legislative mandate of the board as expressed in the 9 statutes that created and empowered the board. 10 e. The extent to which the board’s jurisdiction and programs 11 overlap or duplicate those of other boards, the extent to which 12 the board coordinates with those other boards, and the extent 13 to which the board’s programs could be consolidated with the 14 programs of other state departments or boards. 15 f. The number of other states that regulate the occupation, 16 whether a license is required to engage in the occupation in 17 other states, whether the initial licensing and license renewal 18 requirements for the occupation are substantially equivalent 19 in every state, and the amount of regulation exercised by the 20 board compared to the regulation, if any, in other states. 21 g. Whether the board recognizes national uniform licensure 22 requirements for the occupation. 23 h. Whether private contractors could be used, in an 24 effective and efficient manner, either to assist the board in 25 the performance of its duties or to perform the board’s duties 26 in place of the board. 27 i. Whether the operation of the board has inhibited economic 28 growth, reduced efficiency, or increased government costs. 29 j. An assessment of the authority of the board regarding 30 fees, inspections, enforcement, and penalties. 31 k. The extent to which the board has permitted qualified 32 applicants to serve the public. 33 l. The extent to which the board has allowed individuals to 34 practice elements of the occupation without a license. 35 -12- SF 487 (4) 89 ss/rh/mb 12/ 20
S.F. 487 m. The cost-effectiveness of the board in terms of the 1 number of employees, services rendered, and administrative 2 costs incurred, both past and present. 3 n. Whether the board’s operation has been impeded or 4 enhanced by existing statutes and procedures and by budgetary, 5 resource, and personnel practices. 6 o. Whether the board has recommended statutory changes to 7 the general assembly that would benefit the public rather than 8 the individuals regulated by the board, if any, and whether the 9 board’s recommendations and other policies have been adopted 10 and implemented. 11 p. Whether the board has required any individuals subject to 12 the board’s regulations to report to the board the impact of 13 board rules and decisions on the public as they affect service 14 costs and service delivery. 15 q. Whether individuals regulated by the board, if any, have 16 been required to assess problems in their business operations 17 that affect the public. 18 r. Whether the board has encouraged public participation in 19 its rulemaking and decision making. 20 s. The efficiency with which formal public complaints filed 21 with the board have been processed to completion. 22 t. Whether the purpose for which the board was created has 23 been fulfilled, has changed, or no longer exists. 24 u. Whether federal law requires that the board exist in some 25 form. 26 v. An assessment of the administrative hearing process of 27 the board if the board has an administrative hearing process, 28 and whether the hearing process is consistent with due process 29 rights. 30 w. Whether the requirement for an occupational license 31 is consistent with the principles expressed in section 4B.2, 32 serves the public health or safety, and provides the least 33 restrictive form of regulation that adequately protects the 34 public health or safety. 35 -13- SF 487 (4) 89 ss/rh/mb 13/ 20
S.F. 487 x. The extent to which licensing ensures that practitioners 1 have occupational skill sets or competencies that are 2 substantially related to protecting consumers from present, 3 significant, and substantiated harms that threaten the public 4 health or safety, and the impact that those criteria have on 5 applicants for a license, particularly those with moderate or 6 low incomes, seeking to enter the occupation or profession. 7 y. The extent to which the requirement for the occupational 8 license stimulates or restricts competition, affects consumer 9 choice, and affects the cost of services. 10 z. An assessment of whether changes are needed in the 11 enabling laws of the board in order for the board to comply 12 with the criteria listed in this subsection. 13 Sec. 15. NEW SECTION . 4A.4 Reports of the committee. 14 1. After completing a review of a board pursuant to section 15 4A.3, the committee shall prepare and submit a report of its 16 findings and recommendations by December 21 of each year. 17 A report may include findings and recommendations for more 18 than one board. Copies of the report shall be submitted 19 to the president of the senate, the speaker of the house 20 of representatives, the governor, and each affected board, 21 and shall be made publicly available on the internet site 22 of the general assembly. The committee shall present its 23 recommendations to the general assembly in the form of a bill. 24 2. Recommendations of the committee shall indicate how or 25 whether implementation of the recommendations would do each of 26 the following: 27 a. Improve efficiency in the management of state government. 28 b. Improve services rendered to citizens of the state. 29 c. Simplify and improve preparation of the state budget. 30 d. Conserve the natural resources of the state. 31 e. Promote the orderly growth of the state and its 32 government. 33 f. Promote occupational regulations to increase economic 34 opportunities, encourage competition, and encourage innovation. 35 -14- SF 487 (4) 89 ss/rh/mb 14/ 20
S.F. 487 g. Provide for the least restrictive regulations by 1 repealing current regulations and replacing them with less 2 restrictive regulations that are consistent with the principles 3 expressed in section 4B.2. 4 h. Improve the effectiveness of the services performed by 5 the boards of the state. 6 i. Avoid duplication of effort by state agencies or boards. 7 j. Improve the organization and coordination of the state 8 government. 9 Sec. 16. NEW SECTION . 4A.5 Activities of the general 10 assembly not restricted. 11 This chapter shall not be construed to restrict the general 12 assembly from considering any legislation concerning a board 13 subject to this chapter. 14 Sec. 17. NEW SECTION . 4A.6 Boards and governmental entities 15 —— dissolution. 16 1. An Act of the general assembly establishing a board after 17 the effective date of this Act shall include a dissolution date 18 for the board not more than five years after the establishment 19 of the board. 20 2. An executive order of the governor establishing a 21 governmental entity including but not limited to a board shall 22 provide for the dissolution of the entity within one year of 23 the establishment of the entity or upon the submission of a 24 report required by the executive order, whichever is later. 25 Sec. 18. NEW SECTION . 4B.1 Definitions. 26 For the purposes of this chapter: 27 1. “Certification” means a voluntary program in which 28 a private organization or the state grants nontransferable 29 recognition to an individual who meets personal qualifications 30 established by the private organization or state law. 31 2. “Lawful occupation” means a course of conduct, pursuit, 32 or profession that includes the sale of goods or services that 33 are not themselves illegal to sell irrespective of whether 34 the individual selling the goods or services is subject to an 35 -15- SF 487 (4) 89 ss/rh/mb 15/ 20
S.F. 487 occupational regulation. 1 3. “Least restrictive regulation” means the public policy of 2 relying on one of the following, listed from the least to the 3 most restrictive, as a means of consumer protection: 4 a. Market competition. 5 b. Third-party or consumer-created ratings and reviews. 6 c. Private certifications. 7 d. Actions under section 714H.5. 8 e. Actions under section 714.16. 9 f. Regulation of the process of providing the specific goods 10 or services to consumers. 11 g. Inspections. 12 h. Bonding or insurance. 13 i. Registrations. 14 j. Government certifications. 15 k. Occupational licenses, including specialty occupational 16 licenses for medical reimbursement. 17 4. “Occupational license” means a government permission slip 18 to work that is a nontransferable authorization in law that an 19 individual must possess in order to perform a lawful occupation 20 for compensation based on meeting personal qualifications 21 established by statute or by a rule authorized by statute. 22 “Occupational license” does not include a commercial or other 23 driver’s license. 24 5. “Occupational licensing board” means any board, 25 commission, committee, or council, or any other similar state 26 public body, and any agency, division, or office of state 27 government, that issues an occupational license. 28 6. “Occupational regulation” means a statute, policy, rule, 29 practice, or other state law requiring an individual to possess 30 certain personal qualifications to use an occupational title or 31 work in a lawful occupation. “Occupational regulation” includes 32 a registration, certification, and occupational license. 33 “Occupational regulation” excludes a business license, facility 34 license, building permit, or zoning and land use regulation, 35 -16- SF 487 (4) 89 ss/rh/mb 16/ 20
S.F. 487 except to the extent those laws regulate an individual’s 1 personal qualifications to perform a lawful occupation, and 2 excludes a commercial or other driver’s license. 3 7. “Personal qualifications” means criteria related to an 4 individual’s personal background and characteristics including 5 completion of an approved educational program, satisfactory 6 performance on an examination, work experience, other evidence 7 of attainment of requisite skills or knowledge, moral standing, 8 criminal history, and completion of continuing education. 9 8. “Registration” means a requirement to give notice to the 10 government that may include the individual’s name and address, 11 the individual’s agent for service of process, the location of 12 the activity to be performed, and a description of the service 13 the individual provides. “Registration” does not include 14 personal qualifications but may require a bond or insurance. 15 9. “Specialty occupational license for medical reimbursement” 16 is a nontransferable authorization in law for an individual 17 to qualify for payment or reimbursement from a government 18 agency for providing identified medical services based on 19 meeting personal qualifications established in law which may be 20 recognized by a private company. 21 Sec. 19. NEW SECTION . 4B.2 Occupational regulation 22 principles. 23 With respect to the occupational regulation of individuals, 24 all of the following shall be policies of this state: 25 1. Occupational regulations shall be construed and applied 26 to increase economic opportunities, promote competition, and 27 encourage innovation. 28 2. If the state finds it is necessary to displace 29 competition, the state shall use the least restrictive 30 regulation to protect consumers from present, significant, and 31 substantiated harms that threaten public health or safety. The 32 policy of employing the least restrictive regulation shall 33 presume that market competition and private remedies are 34 sufficient to protect consumers. If necessary, regulations 35 -17- SF 487 (4) 89 ss/rh/mb 17/ 20
S.F. 487 shall be tailored to meet the predominate identified need to 1 protect consumers as follows: 2 a. If a regulation is intended to protect consumers against 3 fraud, the appropriate state action shall be to strengthen 4 powers under deceptive trade practices acts. 5 b. If a regulation is intended to protect consumers against 6 unsanitary facilities and general health or safety concerns, 7 the appropriate state action shall be to require periodic 8 inspections. 9 c. If a regulation is intended to protect a consumer against 10 potential damages to a third party who is not a party to a 11 contract between the seller and buyer, and other types of 12 externalities, the appropriate state action shall be to require 13 bonding or insurance. 14 d. If a regulation is intended to protect a consumer against 15 potential damages by transient providers, the appropriate state 16 action shall be to require registration with the secretary of 17 state. 18 e. If a regulation is intended to protect a consumer 19 against asymmetrical information between the seller and buyer, 20 the appropriate state action shall be to offer voluntary 21 certification, unless appropriate, privately offered voluntary 22 certification for the relevant occupation is available. 23 f. If a regulation is intended to facilitate governmental 24 reimbursement for providing medical services for an emerging 25 medical specialty, the appropriate state action shall be 26 to require a specialty occupational license for medical 27 reimbursement. A person shall not be required to hold a 28 specialty occupational license for medical reimbursement in 29 order to lawfully provide a medical service for an emerging 30 medical specialty; however, a person providing a medical 31 service for an emerging medical specialty without a specialty 32 occupational license for medical reimbursement shall not 33 receive governmental reimbursement for providing that service. 34 A specialty occupational license for medical reimbursement 35 -18- SF 487 (4) 89 ss/rh/mb 18/ 20
S.F. 487 shall not restrict governmental reimbursement for services 1 similar to the regulated service that may be provided by other 2 regulated persons. 3 g. If a regulation is required to perform services 4 regulated by both federal laws and the laws of this state, 5 the appropriate state action shall be to require the state 6 to recognize an individual’s occupational license from 7 another state or territory of the United States to allow that 8 individual to practice in this state. 9 3. An occupational regulation may be enforced against an 10 individual only to the extent the individual sells goods and 11 services that are included explicitly in the statute that 12 defines the occupation’s scope of practice. 13 4. This chapter shall not restrict an occupational 14 licensing board from requiring, as a condition of licensure 15 or renewal of licensure, that an individual’s personal 16 qualifications include obtaining or maintaining certification 17 from a private organization that credentials individuals in the 18 relevant occupation. 19 Sec. 20. NEW SECTION . 4B.3 Local licensing —— preemption. 20 1. This chapter preempts any ordinance or other local law 21 or regulation which conflicts with or is inconsistent with any 22 policy of the state expressed in this chapter by any political 23 subdivision that regulates an occupation or profession that is 24 not regulated by the state. 25 2. This chapter does not apply to the regulation of a place 26 of business by an ordinance, permit, or license. 27 DIVISION III 28 ACCOUNTABLE GOVERNMENT ACT REPORTS 29 Sec. 21. Section 8E.210, Code 2021, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 1A. In addition to the requirements 32 of subsection 1, an agency’s annual performance report 33 shall include a description of how the agency improved 34 efficiency, modernized processes, eliminated duplication and 35 -19- SF 487 (4) 89 ss/rh/mb 19/ 20
S.F. 487 outdated processes, reduced costs, increased accountability, 1 expanded the use of technology, and incorporated productivity 2 improvement measures. The section of the annual performance 3 report addressing the factors listed in this subsection shall 4 be submitted to the state government committee of each chamber 5 of the general assembly and made publicly available on the 6 internet site of the general assembly. 7 DIVISION IV 8 PROFESSIONAL LICENSING BOARD EXAMINATIONS 9 Sec. 22. Section 272C.12, subsection 3, paragraph c, Code 10 2021, is amended to read as follows: 11 c. The ability of a licensing board, agency, or department 12 to require a person to take and pass an examination specific to 13 the laws of this state prior to issuing a license. A licensing 14 board, agency, or department that requires an applicant to take 15 and pass an examination specific to the laws of this state 16 shall issue an applicant a temporary license that is valid 17 for a period of three months and may be renewed once for an 18 additional period of three months , except that a licensing 19 board, agency, or department shall not issue a temporary 20 license if the applicant can take the examination within thirty 21 days of submitting an application . 22 DIVISION V 23 EFFECTIVE DATE 24 Sec. 23. EFFECTIVE DATE. This Act, being deemed of 25 immediate importance, takes effect upon enactment. 26 -20- SF 487 (4) 89 ss/rh/mb 20/ 20
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