HF 853 — A bill for an act relating to interpretation of law in administrative and judicial proceedings under the Iowa administrative procedure Act.

House File 853 - IntroducedReprinted HOUSE FILE 853 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HF 36) (As Amended and Passed by the House March 17, 2026) A BILL FOR An Act relating to interpretation of law in administrative and judicial proceedings under the Iowa administrative procedure Act.

TLSBHF 1539HV853 (1)(2) 91 je/koje/ko/md H.F.

Section 17A.19, subsection 10, paragraphparagraphs c,c and l, Code 2025,2026, isare amended to read as follows:

Based upon an erroneous interpretation of a provision of law whose interpretation has not clearly been vested by a provision of law in the discretion of the by an agency that is not a licensing board as defined in section 272C.1 .

l.

(1) Based upon an erroneous interpretation of a provision of law by a licensing board as defined in section 272C.1 if interpretation of the provision of law has not clearly been vested by a provision of law in the discretion of the licensing board.

(2) Based upon an irrational, illogical, or wholly unjustifiable interpretation of a provision of law whose by a licensing board as defined in section 272C.1 if interpretation of the provision of law has clearly been vested by a provision of law in the discretion of the agency licensing board.

Section 17A.19, subsection 10,11, paragraph l, Code 2025,2026, is amended byto strikingread theas paragraph.follows:

11.

In making the determinations required by subsection 10, paragraphs “a” through “n” paragraph “l”, the court shall do all of the following:

a.

Shall not give any deference to the view of the agency licensing board with respect to whether particular matters have been vested by a provision of law in the discretion of the agency licensing board.

b.

Should Shall not give any deference to the view of the agency licensing board with respect to particular matters that have not been vested by a provision of law in the discretion of the agency licensing board.

c.

Shall give appropriate deference to the view of the agency licensing board with respect to particular matters that have been vested by a provision of law in the discretion of the agency licensing board.

Section 17A.19,17A.23, subsection 11, Code 2025,2026, is amended by strikingadding the subsection.following new subsection:

Sec.HF 853 (2) 91 -1- je/ko/md 1/2 H.F.

4.853 NEW SUBSECTION.

Section 17A.23, Code 2025, is amended by adding the following new subsection:

NEW SUBSECTION .

Notwithstandinga. any provision of the Code to the contrary, a court, or a presiding officer in a contested case or other administrative action subject to this chapter, when interpreting a state statute or a rule or other agency document subject to this chapter, shall not defer to an agency’s interpretation of the statute, rule, or document, and must instead interpret its meaning and effect de novo.

InNotwithstanding anany provision of the Code or Acts to the contrary, a court, or a presiding officer in a contested case or other administrative action broughtsubject byto this chapter, when interpreting a state statute or againsta rule or other agency document subject to this chapter, shall not defer to an agency,interpretation of the courtstatute, rule, or officer,document afterby applyingan allagency customarythat toolsis ofnot interpretation,a licensing board as defined in section 272.1, and must exerciseinstead anyinterpret remainingthe doubtmeaning inand favoreffect of athe reasonablestatute, interpretationrule, thator limitsdocument agencyde authority.novo.

EXPLANATIONb. The inclusion of this explanation does not constitute agreement with the explanation’s substance by the members of the general assembly.

ThisIn billan concernsaction brought by or against an agency that is not a licensing board as defined in section 272C.1, the interpretationcourt or officer, after applying all customary tools of lawinterpretation, inmust administrativeexercise andany judicialremaining proceedingsdoubt underin Codefavor chapterof 17A,a thereasonable Iowainterpretation administrativethat procedurelimits Act.agency authority.

UnderHF current853 law,(2) a91 court-2- mustje/ko/md reverse,2/2 modify, or grant other appropriate relief from agency action in specified circumstances if it determines that substantial rights of the person seeking relief have been prejudiced.

Such circumstances include agency action based upon an irrational, illogical, or wholly unjustifiable interpretation of a provision of law whose interpretation has clearly been vested by a provision LSB 1539HV (1) 91 -1- je/ko 1/2 H.F.

853 of law in the discretion of the agency.

If interpretation of the provision of law has not been clearly vested in the discretion of the agency, the standard of review is instead whether the agency’s interpretation is erroneous.

Current law also provides standards for a court regarding the determination of the degree of deference to be given to the view of an agency, based on whether a provision of law has vested the agency with discretion over the matter in question.

The bill strikes these provisions and instead provides that a court must reverse, modify, or grant other appropriate relief from agency action based upon an erroneous interpretation of a provision of law.

The bill additionally prohibits a court, or a presiding officer in a contested case or other administrative action subject to Code chapter 17A, when interpreting a state statute or a rule or other agency document subject to Code chapter 17A, from deferring to an agency’s interpretation of the statute, rule, or document;

the bill instead requires the court or officer to interpret its meaning and effect de novo.

The bill requires the court or officer, in an action brought by or against an agency, after applying all customary tools of interpretation, to exercise any remaining doubt in favor of a reasonable interpretation that limits agency authority.

LSB 1539HV (1) 91 -2- je/ko 2/2