Regulatory Reform

Legislators should consider methods of reducing state regulations to more reasonable levels to help Iowa grow and prosper, both for businesses and consumers.

Administrative rules serve to supplement law where interpretation is left in question. Some administrative rules are reasonable and necessary, but as the number of rules grows as the scope of government increases, these rules can become overly complex and burdensome. Too many regulations drive up the costs of doing business beyond what is reasonable to protect health and safety, and those costs hinder economic growth and increase prices for consumers.

Iowa does require legislative review of administrative rules, but as regulations continue to increase, the ability to thoroughly review every rule becomes extremely difficult. According to a 2019 Mercatus Center study, Iowa has 160,000 restrictive terms, such as “must,” “shall,” and “may not,” in state regulations. This is more than every neighboring state except Illinois, which is notorious for being a high regulation state.

Legislators should consider reforms that create an ongoing review of existing rules and regulations. Additionally, legislators should consider requiring all agency rules to be submitted with a sunset date, triggering an ongoing review of new rules into the future.