Opinion ID: 2007410
Heading Depth: 1
Heading Rank: 1

Heading: Scope of review. We first consider two preliminary issues.

Text: A. This court will make anew the determinations which the district court may make under section 17A.19 of the Code. Temple v. Vermeer Manufacturing Co., 285 N.W.2d 157, 159 (Iowa 1979). In reviewing agency rule making, we can properly consider both the record made before the agency and before the district court. Security Savings Bank v. Huston, 293 N.W.2d 249, 251 (Iowa 1980); Community Action Research Group v. Iowa State Commerce Comm'n, 275 N.W.2d 217, 219 (1979). B. An agency rule is presumed valid and the burden is on the party challenging it to demonstrate that a rational agency could not conclude the rule was within the agency's delegated authority. Milholin v. Vorhies, 320 N.W.2d 552, 554 (1982); Iowa Auto Dealers Ass'n v. Iowa Department of Revenue, 301 N.W.2d 760, 762 (Iowa 1981); Hiserote Homes, Inc. v. Riedemann, 277 N.W.2d 911, 913 (Iowa 1979); Davenport Community School District v. Iowa Civil Rights Comm'n, 277 N.W.2d 907, 910 (Iowa 1979). Once the Administrative Rules Review Committee objects to the contested rule, however, the burden shifts to the agency in a judicial review proceeding to prove the validity of the rule. Iowa Auto Dealers Ass'n, 301 N.W.2d at 762; Iowa Code § 17A.4(4)( a ) (1981). The committee objected that the rule was unreasonable. It did not object, however, with respect to the agency's delegated authority to promulgate such a rule. We find, therefore, that the district court correctly retained the burden on the utilities to prove promulgation of the rule was beyond the commission's statutory authority.