Bulletin 02-22-2023

Front matter not included
ARC 6907CAgriculture and Land Stewardship Department[21]Notice of Intended Action

Proposing rule making related to marketing programs and providing an opportunity for public comment

    The Agriculture and Land Stewardship Department hereby proposes to amend Chapter 52, “Marketing,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 159.27.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 159.28 and 2022 Iowa Acts, House File 2560.Purpose and Summary    This proposed rule making makes a number of changes to the Choose Iowa Promotional Program and Value-Added Agriculture Grant Program rules.    Updates to the promotional program include:

  • Providing a definition for the “supporting organization” membership classification;
  • Providing product qualifications for an Iowa cider;
  • Revising the duration of membership in the program to coincide with the anniversary date of the participant’s registration as opposed to the current calendar basis.
  •     Updates to the grant program include:
  • Clarifying that in-kind contributions do not qualify as part of the private match requirement;
  • Limiting grant applicants to one project application per grant cycle;
  • Clarifying that priority will be given to applicants who were not awarded grant funding in the previous fiscal year;
  • Revising the scoring criteria for grant applications;
  • Clarifying that grant funds will be disbursed by reimbursement once a project is fully completed.
  • Fiscal Impact    This rule making has no fiscal impact to the State of Iowa.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 21—Chapter 8. Public Comment     Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on March 14, 2023. Comments should be directed to: Colin Tadlock Iowa Department of Agriculture and Land Stewardship Wallace State Office Building 502 East 9th Street Des Moines, Iowa 50319 Phone: 515.518.7609 Email: colin.tadlock@iowaagriculture.govPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Adopt the following new definition of “Supporting organization” in rule 21—52.1(159):        "Supporting organization" is a membership classification that means a person, unified group, association, or business supporting the efforts of the choose Iowa promotional program.

        ITEM 2.    Amend paragraph 52.2(2)"f" as follows:    f.    Beeror cider bearing the choose Iowa logo shall be brewedproduced in Iowa and contain at least one Iowa agricultural product, such as Iowa malt, hops,apples, corn, or soluble remnant, excluding water.

        ITEM 3.    Amend subrule 52.3(3) as follows:    52.3(3) Duration of membership.  Membership is on an annual basis, coinciding with the calendar year beginning January 1 and ending December 31member’s anniversary date of original registration.

        ITEM 4.    Amend rule 21—52.4(159) as follows:

    21—52.4(159) FeesMembership fees.  Membership fees. Membership fees will be listed in the membership application and will be charged at the following rates:Producer$100Processor$100Wholesaler/distributor$100Retailer$100Supporting organization$100    52.4(2) New member fees.  New member agreements issued during the program year will be assessed at 100 percent of the annual fee regardless of when an application for membership is submitted.

        ITEM 5.    Amend subrule 52.22(2) as follows:    52.22(2)   Applications will only be accepted during the times established by the department. Late submissions will not be accepted.An individual, business, agricultural cooperative, nonprofit organization, or local government may only apply for one project per grant cycle.

        ITEM 6.    Adopt the following new subrule 52.22(5):    52.22(5)   Priority will be given to applicants who were not awarded a grant in the previous fiscal year.

        ITEM 7.    Amend paragraph 52.23(2)"a" as follows:    a.    The extent to which the project addresses the goals of the program to increase the sale of Iowa agricultural products, increase market access, diversify markets, or increase processing capacity: 2520 points.

        ITEM 8.    Amend paragraph 52.23(2)"d" as follows:    d.    The sufficiency of the project’s budget and financing structure: 1520 points.

        ITEM 9.    Amend rule 21—52.24(159) as follows:

    21—52.24(159) Disbursement of funds.  The department will disburse funds for a project only after an agreement has been executed between the applicant and the department and all applicable conditions for disbursement have been met, including the submission of documentation pertaining to the eligible expenditures. Disbursement of funds under the agreement will be on a reimbursement basis for expenses incurred by the applicantupon completion of a project.
    ARC 6915CCorrections Department[201]Notice of Intended Action

    Proposing rule making related to Iowa state industries and providing an opportunity for public comment

        The Corrections Department hereby proposes to amend Chapter 37, “Iowa State Industries,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 904.804.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 904.815.Purpose and Summary    This proposed rule making removes the language that allows Iowa State Industries to sell products to employees of nonprofit organizations and allows Iowa State Industries to provide limited public sales when the sales to political subdivisions are insufficient to justify continued operation of a shop. This language is inconsistent with statute.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Pursuant to the provisions of the statute, the Department does not have authority to waive requirements established by statute.Public Comment    Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on March 14, 2023. Comments should be directed to:Michael Savala Department of Corrections Jessie Parker Building 510 East 12th Street Des Moines, Iowa 50319 Email: michael.savala@iowa.gov Public Hearing    If requested, a public hearing to hear oral presentations will be held as follows:March 14, 2023 9 to 10 a.m.Via conference call    Persons who wish to participate in the conference call should contact Michael Savala by 8 a.m. on March 14, 2023, to facilitate an orderly hearing. A conference call number will be provided to participants prior to the hearing. The public hearing will be canceled without further notice if no public hearing is requested by March 14, 2023.    Persons who wish to make oral comments at a public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing impairments, should contact the Department and advise of specific needs.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

        ITEM 1.    Amend rule 201—37.2(904) as follows:

    201—37.2(904) Sale of products.      37.2(1)   Iowa state industries shall sell products to any tax-supported institution or governmental subdivision in any level of government, including state, county, city or school. Iowa state industries may sell products to employees of such entities.    37.2(2)   Iowa state industries may sell products to nonprofit organizations such as parochial schools, churches, or fraternal organizations and employees of such nonprofit organizations.    37.2(3)   Iowa state industries may sell products to nonprofit health care facilities serving Medicaid or social security patients.    37.2(4)   Sales will not generally be solicited from the general public. However, the state director of Iowa state industries may determine with the advice of the prison industries advisory board that limited public sales will be made when the sales to political subdivisions are insufficient to justify continued operation of a shop.    37.(5) 37.2(4)   Iowa state industries may sell products to a general contractor when the products purchased will be sold to a public entity as provided in subrules 37.2(1) to 37.2(3). The public entity shall submit a written request to Iowa state industries specifying the products and quantities to be purchased. Such sales shall be limited to contractors involved in construction, renovation, and remodeling projects. Sales to a general contractor shall be approved by the Iowa prison industries advisory board.       This rule is intended to implement Iowa Code section 904.815.
    ARC 6914CCorrections Department[201]Notice of Intended Action

    Proposing rule making related to parole and providing an opportunity for public comment

        The Corrections Department hereby proposes to amend Chapter 45, “Parole,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 904.108.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 906.3.Purpose and Summary    This proposed amendment eliminates a rule that is inconsistent with, and is more efficiently handled by, the Board of Parole. The proposed amendments to Chapter 45 remove a rule pertaining to conditions of parole and remove cross-references to the rule.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    This rule making is not subject to waiver, since the subject matter of rule 201—45.2(906) is handled by the Board.Public Comment    Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Department no later than 4:30 p.m. on March 14, 2023. Comments should be directed to:Michael Savala Department of Corrections Jessie Parker Building 510 East 12th Street Des Moines, Iowa 50319 Email: michael.savala@iowa.govPublic Hearing    If requested, a public hearing to hear oral presentations will be held as follows: March 14, 2023 9 to 10 a.m. Via conference call    Persons who wish to participate in the conference call should contact Michael Savala by 8 a.m. on March 14, 2023, to facilitate an orderly hearing. A conference call number will be provided to participants prior to the hearing. The public hearing will be canceled without further notice if no public hearing is requested by March 14, 2023.    Persons who wish to make oral comments at a public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing impairments, should contact the Department and advise of specific needs.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Amend subrules 45.1(1) and 45.1(2) as follows:    45 45.1 1(1) Supervision.  Persons committed to the director of the department of corrections and granted parole by the Iowa board of parole shall be supervised by the judicial district departments of correctional services. The district departments shall impose conditions of parole as contained in rule 201—45.2(906)established and approved by the board of parole.    45 45.1 1(2) Effective date/parole agreement.      a.    Parole is effective only upon the acceptance of the terms of parole as evidenced by the signing of the standard parole agreement form by the parolee before a district department employee. The parole agreement shall be issued only upon the written order of the board of parole and shall not be issued prior to the establishment of an approved parole plan. The parolee may not be released on parole prior to the execution of the parole agreement. The parole agreement shall contain the conditions of parole pursuant to rule 201—45.2(906) and shall contain the parolee’s reporting instructions.    b.     Districts shall have statewide approved written policies and procedures which ensure the use of the statewide case management system. Districts will use the statewide approved and validated risk/needs instrument that assesses and addresses client risk, criminogenic needs and protective factors in an effort to mitigate the probability for future violence, criminal behavior and victimization. By stratifying risk using the risk-need-responsivity model, districts will focus the majority of their resources on clients who pose a greater risk to reoffend ensuring that all moderate-high risk clients receive evidence-based case planning and case management using the risk-need-responsivity model and core correctional practices to include: ongoing risk needs assessment, case plan follow-up and documentation, transfer of records, staff training, and continuous quality improvement.     c.    The district department shall have written policies and procedures to ensure the delivery of parole services which are consistent with statewide policy and expectations.

        ITEM 2.    Rescind and reserve rule 201—45.2(906).
    ARC 6916CEconomic Development Authority[261]Notice of Intended Action

    Proposing rule making related to Iowa jobs training program and providing an opportunity for public comment

        The Director of the Workforce Development Department (Department) hereby proposes to amend Chapter 7, “Iowa Jobs Training Program,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 96.11.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapters 7, 260F and 261.Purpose and Summary    The Economic Development Authority has entered into an agreement under Iowa Code chapter 28E with the Department to administer the Iowa Jobs Training Program (260F Program). These proposed amendments clarify opportunities for small businesses and cross-entity businesses to take advantage of 260F Program funding opportunities.    Community colleges have consistently voiced concerns on behalf of small businesses that 260F Program training is unavailable for small business leadership because small business executives often run or have day-to-day tasks that involve employee functions. When these small business executives are excluded from 260F Program training, the business loses an essential opportunity for improvement.     Community colleges have also pointed out that many businesses have multiple divisions (such as a retail business also having a manufacturing arm), which similarly precludes these cross-entity businesses from benefitting from 260F Program funding opportunities.     The proposed amendment aims to reduce barriers to receiving 260F Program funding.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any. Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Department no later than 4:30 p.m. on March 14, 2023. Comments should be directed to: Ryan West Economic Development Authority 1000 East Grand Avenue Des Moines, Iowa 50319-0209 Email: ryan.west@iwd.iowa.govPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

        ITEM 1.    Amend rule 261—7.3(260F), definitions of “Eligible business” and “Employee,” as follows:        "Eligible business" "business" means a business training employees which is engaged in interstate or intrastate commerce for the purpose of manufacturing, processing, or assembling products, warehousing or wholesaling products, conducting research and development, or providing services in interstate commerce, but excludessolely retail, health, or professional services and which meets the other criteria established by the authority. A business engaged in the provision of services must have customers outside of Iowa to be eligible. The business site to receive training must be located in Iowa. “Eligible business” does not include a business whose training costs can be economically funded under Iowa Code chapter 260E, a business which closes or substantially reduces its workforce by more than 20 percent at existing operations in order to relocate substantially the same operation to another area of the state, or a business which is involved in a strike, lockout, or other labor dispute in Iowa. If a business closes or substantially reduces its workforce by more than 20 percent at existing operations in order to relocate substantially the same operation to another area of the state, then the business is ineligible for 36 consecutive months at any of its Iowa sites from the date the new establishment opens.        "Employee" means a person currently employed by a business who is to be trained. An employee for whom training is planned must hold a current position intended by the employer to exist on an ongoing basis with no planned termination date. Training is available only to an employee who is hired by the business,who is currently employed by the business, and for whom the business pays withholding tax. However, “employee” does not include a person with executive responsibilities, a replacement worker who is hired as a result of a strike, lockout, or other labor dispute in Iowa, or an employee hired as a temporary worker.“Employee” does include a person with executive responsibilities if such person works in both an executive- and employee-based capacity for a small business with a total labor force of fewer than 50 persons.
    ARC 6911CInspections and Appeals Department[481]Notice of Intended Action

    Proposing rule making related to health care facilities administration and providing an opportunity for public comment

        The Inspections and Appeals Department hereby proposes to amend Chapter 50, “Health Care Facilities Administration,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 10A.104 and 135C.2.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 10A.104, 17A.7(2) and 135C.2.Purpose and Summary    The Department completed a comprehensive review of Chapter 50 in accordance with the requirement in Iowa Code section 17A.7(2). This proposed rule making updates citations and removes outdated, unnecessary, and redundant content. It also updates rules related to background checks in accordance with Iowa Code chapter 135Q.     The Department does not believe that the proposed amendments pose a financial hardship on any regulated entity or individual. Rather, the proposed amendments eliminate redundant language from the Iowa Administrative Code.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 481—Chapter 6.Public Comment    Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Department no later than 4:30 p.m. on March 14, 2023. Comments should be directed to:Ashleigh Hackel Iowa Department of Inspections and Appeals Lucas State Office Building 321 East 12th Street Des Moines, Iowa 50319 Email: ashleigh.hackel@dia.iowa.govPublic Hearing    No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Amend paragraph 50.3(3)"f" as follows:    f.    Residential care facilities for the intellectually disabled, three- to five-bed license, 481—Chapters 60 and 63481—Chapter 63;

        ITEM 2.    Amend rule 481—50.6(10A) as follows:

    481—50.6(10A) Formal hearing.  All decisions of the division may be contested. Appeals and hearings are controlled by 481—Chapter 9, “Contested Cases.,and 481—Chapter 10, “Rules of Procedure and Practice Before the Administrative Hearings Division.”    50.6(1)   The proposed decision of the hearing officer becomes final ten15 days after it is mailed.    50.6(2)   Any request for administrative review of a proposed decision must:
    1. Be made in writing,
    2. Be mailed by certified mail to the director, within ten15 days after the proposed decision was mailed to the aggrieved party,
    3. State the reason(s) for the request.
    A copy shall also be sent to the hearing officer at the Department of Inspections and Appeals, Lucas State Office Building, Des Moines, Iowa 50319.
        50.6(3)   The decision of the director shall be based upon the record and becomes final agency action upon mailing by certified mail.    50.6(4)   The fees of witnesses for attendance and travel shall be the same as the fees for witnesses before the district court and shall be paid by the party to the proceeding at whose request the subpoena is issued.

        ITEM 3.    Amend rule 481—50.7(10A,135C) as follows:

    481—50.7(10A,135C) Additional notification.   The director or the director’s designeeA health care facility shall be notifiednotify the department within 24 hours, or the next business day, by the most expeditious means available (I,II,III):    50.7(1)   Of any accident causing major injury.    a.    “Major injury” shall be defined as any injury which:    (1)   Results in death; or    (2)   Requires admission to a higher level of care for treatment, other than for observation; or    (3)   Requires consultation with the attending physician, designee of the physician, or physician extender who determines, in writing on a form designated by the department, that an injury is a “major injury” based upon the circumstances of the accident, the previous functional ability of the resident, and the resident’s prognosis.    b.    The following are not reportable accidents:    (1)   An ambulatory resident, as defined in rules 481—57.1(135C), 481—58.1(135C), and 481—63.1(135C), who falls when neither the facility nor its employees have culpability related to the fall, even if the resident sustains a major injury; or    (2)   Spontaneous fractures; or    (3)   Hairline fractures.    50.7(2)   When damage to the facility is caused by a natural or other disaster, including physical impairments affecting operations (e.g., failure of a heating or cooling system, water heater failure).    50.7(3)   When there is an act that causes major injury to a resident or when a facility has knowledge of a pattern of acts committed by the same resident on another resident that results in any physical injury. For the purposes of this subrule, “pattern” means two or more times within a 30-day period.    50.7(4)   When a resident elopes from a facility. For the purposes of this subrule, “elopes” means when a resident who has impaired decision-making ability leaves the facility without the knowledge or authorization of staff.    50.7(5)   When a resident attempts suicide, regardless of injury.    50.7(6)   When a fire occurs in a facility and the fire requires the notification of emergency services, require full or partial evacuation of the facility, or causes physical injury to a resident.    50.7(7)   When a defect or failure occurs in the fire sprinkler or fire alarm system for more than 4 hours in a 24-hour period. (This reporting requirement is in addition to the requirement to notify the state fire marshal.)Note: Additional reporting requirements are created by other rules and statutes, including but not limited to Iowa Code chapter 235B and 2008 Iowa Acts, House File 2591235E, which requirerequires reporting of dependent adult abuse.

        ITEM 4.    Rescind rule 481—50.8(22,135B,135C) and adopt the following new rule in lieu thereof:

    481—50.8(22,135B,135C) Records.  The division collects and stores a variety of records in the course of licensing and inspecting hospitals and health care facilities, as described in 481—Chapter 5. The records contain both public and confidential information.    50.8(1) Public information.  The following are general categories of public information:    a.    The department’s final findings or the final findings of an accreditation organization with respect to compliance by a hospital or health care facility with requirements for licensing or accreditation, including any plan of correction;    b.    Applications for licensing or certification, accompanying materials, and status of any application;    c.    Reports from the state fire marshal;    d.    Information regarding complaints, unless otherwise confidential pursuant to subrule 50.8(2) or Iowa Code section 22.7;    e.    Waiver requests and responses;    f.    Official notices of licensing or certification sanctions.    50.8(2) Confidential information.  The following are general categories of confidential information:    a.    Information that does not comprise a final report resulting from a survey, investigation, or entity-reported incident investigation, except as set forth in Iowa Code section 135B.12 or 135C.19(1);     b.    Names of complainants;    c.    Names of patients or residents and any identifying medical information;    d.    The address of anyone other than an owner.    50.8(3) Redaction of confidential information.  If a record normally open for inspection contains confidential information, the confidential information shall be redacted before the records are provided for inspection.

        ITEM 5.    Amend subrule 50.9(1), definitions of “Employed in a facility” and “Employee,” as follows:        "Employed in a facility" "employment within a facility" means all of the following if the provider is regulated by the state or receives any federal or state funding:
    1. An employee of a health care facility licensed under Iowa Code chapter 135C if the employee provides direct or indirect services to residents;
    2. An employee of a home health agency if the employee provides direct services to consumers;
    3. An employee of a hospice if the employee provides direct services to consumers.;
    4. A health care employment agency worker as defined by Iowa Code section 135Q.1.
            "Employee" means any individual who is paid either by the facility or any other entity (i.e., temporaryhealth care employment agency, private duty, Medicare/Medicaid or independent contractors).

        ITEM 6.    Amend paragraph 50.9(3)"b" as follows:    b.    Conducting a background check.The facility shall either request that the department of public safety perform a criminal history check and that the department of human services perform child and dependent adult abuse record checks of the person in this state, or access the single contact repository (SING) to perform the required background check. If the SING is used, the facility shall submit the person’s maiden nameprior name(s), if applicable, with the background check request. (I, II, III)

        ITEM 7.    Amend subrule 50.9(11) as follows:    50.9(11) Proof of background checks for temporaryhealth care employment agencies and contractors.  Proof of background checks may be kept in the files maintained by temporaryhealth care employment agencies and contractors. Facilities may require temporaryHealth care employment agencies and contractors toshall provide a copy of the result of the background checks. Copies of such results shall be made available to thefacility or department upon request. (I, II, III)

        ITEM 8.    Amend paragraph 50.11(1)"a" as follows:    a.    Any person with concerns regarding a facility may file a complaint with the Department of Inspections and Appeals, Complaint/Incident Bureau, Lucas State Office Building, Third Floor, 321 E. 12th Street, Des Moines, Iowa 50319-0083; by use of the complaint hotline, 1-877-686-0027; by facsimile sent to (515)281-7106; or through the website address dia-hfd.iowa.gov/DIA_HFD/Home.dodia-hfd.iowa.gov.

        ITEM 9.    Amend paragraph 50.11(2)"a" as follows:    a.    The web-based reporting tool accessible from the following Internet site, dia-hfd.iowa.gov/DIA_HFD/Home.dodia-hfd.iowa.gov, under the “Login” tab and then access “Add self report”;
    ARC 6908CInspections and Appeals Department[481]Notice of Intended Action

    Proposing rule making related to nursing facilities and providing an opportunity for public comment

        The Inspections and Appeals Department hereby proposes to amend Chapter 58, “Nursing Facilities,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 10A.104 and 135C.2.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 10A.104, 17A.7(2) and 135C.2 and 2022 Iowa Acts, House File 803.Purpose and Summary    The Department completed a comprehensive review of Chapter 58 in accordance with the requirement in Iowa Code section 17A.7(2). This proposed rule making removes outdated, unnecessary, and redundant content by streamlining language, referencing pertinent state and federal law, and conforming rules with current and long-standing practices. The proposed amendments also update rules in accordance with changes included in 2022 Iowa Acts, House File 803, providing the same power, privilege, right, or duty to a physician assistant licensed under Iowa Code chapter 148C as to a physician, as is consistent with the scope of practice of the physician assistant as specified therein.     The Department does not believe that the proposed amendments pose a financial hardship to any regulated entity or individual. Rather, the proposed amendments eliminate unnecessary language from the Iowa Administrative Code.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 481—Chapter 6.Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Department no later than 4:30 p.m. on March 14, 2023. Comments should be directed to: Ashleigh Hackel Iowa Department of Inspections and Appeals Lucas State Office Building 321 East 12th Street. Des Moines, Iowa 50319 Email: ashleigh.hackel@dia.iowa.govPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Amend rule 481—58.1(135C), definitions of “Ambulatory” and “Qualified intellectual disabilities professional,” as follows:        "Ambulatory" means the condition of a person who immediately and without aid of another is physically or mentally capable of traveling a normal path to safety, including the ascent and descent of stairsif applicable to the facility.        "Qualified intellectual disabilities professional" means a psychologist, physician,physician assistant, registered nurse, educator, social worker, physical or occupational therapist, speech therapist or audiologist who meets the educational requirements for the profession, as required in the state of Iowa, and having one year’s experience working with persons with an intellectual disability.

        ITEM 2.    Rescind the definition of “Chairfast” in rule 481—58.1(135C).

        ITEM 3.    Amend rule 481—58.4(135C) as follows:

    481—58.4(135C) General requirements.      58.4(1)   The license shall be displayed in a conspicuous place in the facility which is viewed by the public. (III)    58.4(2)   The license shall be valid only in the possession of the licensee to whom it is issued.    58.4(3)   The posted license shall accurately reflect the current status of the nursing facility. (III)    58.4(4)   Licenses expire one year after the date of issuance or as indicated on the license.    58.4(5)   NoA nursing facility shallnot be licensed for more beds than have been approved by the health facilities construction review committeecouncil pursuant to Iowa Code chapter 135 or than the facility can accommodate pursuant to the minimum physical standards for nursing facilities as set forth in 481—Chapter 61.    58.4(6)   Each citation or a copy of each citation issued by the department for a class I or class II violation shall be prominently posted by the facility in plain view of the residents, visitors, and persons inquiring about placement in the facility. The citation or copy of the citation shall remain posted until the violation is corrected to the satisfaction of the departmentThe facility shall post in a place readily accessible to residents, visitors, and persons inquiring about placement in the facility the results of the most recent survey of the facility. The facility shall maintain any surveys, certifications, and complaint investigations made respecting the facility during the three preceding years, and any plan of correction in effect with respect to the facility, available for any individual to review upon request. (III)

        ITEM 4.    Amend rule 481—58.5(135C) as follows:

    481—58.5(135C) Notifications required by the department.  The department shall be notified:    58.5(1)   Within 48 hours, by letter, of any reduction or loss of nursing or dietary staff lasting more than seven days which places the staffing ratiorequirements below thatthose required for licensing. No additional residents shall be admitted until the minimum staffing requirements are achieved; (III)    58.5(2)   OfThirty days before any proposed change in the nursing facility’s functional operation or addition or deletion of required services; (III)    58.5(3)   Thirty days before addition, alteration, or new construction is begun in the nursing facility or on the premises; (III)    58.5(4)   Thirty days in advance of closure of the nursing facility; (III)    58.5(5)   Within two weeks of any change in administrator; (III)    58.5(6)   When any change in the category of license is sought; (III)    58.5(7)   Prior to the purchase, transfer, assignment, or lease of a nursing facility, the licensee shall:    a.    Inform the department of the pending sale, transfer, assignment, or lease of the facility; (III)    b.    Inform the department of the name and address of the prospective purchaser, transferee, assignee, or lessee at least 30 days before the sale, transfer, assignment, or lease is completed;. (III)    c.    Submit a written authorization to the department permitting the department to release all information of whatever kind from the department’s files concerning the licensee’s nursing facility to the named prospective purchaser, transferee, assignee, or lessee. (III)    58.5(8)   Pursuant to the authorization submitted to the department by the licensee prior to the purchase, transfer, assignment, or lease of a nursing facility, the department shall upon request send or give copies of all recent licensure surveys and of any other pertinent information relating to the facility’s licensure status to the prospective purchaser, transferee, assignee, or lessee; costs for such copies shall be paid by the prospective purchaser.

        ITEM 5.    Amend paragraph 58.8(2)"a" as follows:    a.    The distance between the two facilities shall be no greater than 5075 miles. (II)

        ITEM 6.    Amend paragraph 58.8(4)"b" as follows:    b.    The facility shall notify the department in writing within ten business14 days of the administrator’s appointment. The written notice shall include the estimated time frame for the appointment of the provisional administrator and the reason for the appointment of a provisional administrator. (III)

        ITEM 7.    Amend subrules 58.10(8) and 58.10(9) as follows:    58 58.10 10(8)   Infection control program. Each facility shall have a written and implemented infection control and exposure control program with policies and procedures based on the guidelines issued by the Centers for Disease Control and Prevention(CDC), U.S. Department of Health and Human Services. (I, II, III) CDC guidelines are available at www.cdc.gov/ncidod/dhqp/index.htmlwww.cdc.gov.    58 58.10 10(9)   Infection control committee. Each facility shall establish an infection control committee of representative professional staff responsible for overall infection control in the facility.The infection control committee may be part of or the same as another quality assurance committee as long as the following standards are met: (III)    a.    The committee shall annually review and revise the infection control policies and procedures to monitor effectiveness and suggest improvement. (III)    b.    The committee shall meet at least quarterly, submit reports to the administrator, and maintain minutes in sufficient detail to document its proceedings and actions. (III)    c.    The committee shall monitor the health aspect and the environment of the facility. (III)

        ITEM 8.    Amend subrule 58.11(1) as follows:    58.11(1) General qualifications.      a.    No person with a current record of habitual alcohol intoxication or addiction to the use of drugs shall serve in a managerial role of a nursing facility. (II)    b.    No person under the influence of alcohol or intoxicating drugs shall be permitted to provide services in a nursing facility. (II)    c.    No person shall be allowed to provide services in a facility if the person has a disease:    (1)   Which is transmissible through required workplace contact, (I, II, III)    (2)   Which presents a significant risk of infecting others, (I, II, III)    (3)   Which presents a substantial possibility of harming others, and (I, II, III)    (4)   For which no reasonable accommodation can eliminate the risk. (I, II, III)Refer to Guidelines for Infection Control in Hospital Personnel,guidelines issued by the Centers for Disease Controland Prevention, U.S. Department of Health and Human Services, PB85-923402 to determine (1), (2), (3) and (4).    d.    Reserved.    e.    d.    Individuals with either physical or mental disabilities may be employed for specific duties, but only if that disability is unrelated to that individual’s ability to perform the duties of the job. (III)    f.    e.    Persons employed in all departments, except the nursing department of a nursing facility, shall be qualified through formal training or through prior experience to perform the type of work for which they have been employed. Prior experience means at least 240 hours of full-time employment in a field related to their duties. Persons may be hired in laundry, housekeeping, activities and dietary without experience or training if the facility institutes a formal in-service training program to fit the job description in question and documents such as having taken place within 30 days after the initial hiring of such untrained employees. (III)    g.    Rescinded, effective 7/14/82.    h.    f.    The health services supervisor shall be a qualified nurse as defined in these regulations. (II)    i.    Those persons employed as nurse’s aides, orderlies, or attendants in a nursing facility who have not completed the state-approved 75-hour nurse’s aide program shall be required to participate in a structured on-the-job training program of 20 hours’ duration to be conducted prior to any resident contact, except that contact required by the training program. This educational program shall be in addition to facility orientation. Each individual shall demonstrate competencies covered by the curriculum. This shall be observed and documented by an R.N. and maintained in the personnel file. No aide shall work independently until this is accomplished, nor shall the aide’s hours count toward meeting the minimum hours of nursing care required by the department. The curriculum shall be approved by the department. An aide who has completed the state-approved 75-hour course may model skills to be learned.Further, such personnel shall be enrolled in a state-approved 75-hour nurse’s aide program to be completed no later than six months from the date of employment. If the state-approved 75-hour program has been completed prior to employment, the on-the-job training program requirement is waived. The 20-hour course is in addition to the 75-hour course and is not a substitute in whole or in part. The 75-hour program, approved by the department, may be provided by the facility or academic institution.Newly hired aides who have completed the state-approved 75-hour course shall demonstrate competencies taught in the 20-hour course upon hire. This shall be observed and documented by an R.N. and maintained in the personnel file.All personnel administering medications must have completed the state-approved training program in medication administration. (II)    j.    g.    There shall be an organized ongoing in-service educational and training program planned in advance for all personnel in all departments. (II, III)    k.    h.    Nurse aides may be utilized in accordance with the requirements in 441—subrule 81.13(19) and rule 441—81.16(249A).Nurse aides, orderlies or attendants in a nursing facility who have received training other than the Iowa state-approved program, must pass a challenge examinationcompetency evaluation approved by the department of inspections and appealsin accordance with 441—subrule 81.13(19) and rule 441—81.16(249A). Evidence of prior formal training in a nursing aide, orderly, attendant, or other comparable program must be presented to the facility or institution conducting the challenge examination before the examination is given. The approved facility or institution, following department of inspections and appeals guidelines, shall make the determination of who is qualified to take the examination. Documentation of the challenge examinations administered shall be maintained.

        ITEM 9.    Amend subrule 58.11(2) as follows:    58.11(2) Nursing supervision and staffing.      a.    Rescinded IAB 8/7/91, effective 7/19/91.    b.    a.    Where only part-time nurses are employed, one nurse shall be designated health service supervisor. (III)    c.    b.    A qualified nurse shall be employed to relieve the supervising nurses, including charge nurses, on holidays, vacation, sick leave, days off, absences or emergencies. Pertinent information for contacting such relief person shall be posted at the nurse’s stationreadily available to nurses. (III)    d.    c.    When the health service supervisor serves as the administrator of a facility 50 beds and over, a qualified nurse must be employed to relieve the health service supervisor of nursing responsibilities. (III)    e.    d.    The department may establish on an individual facility basis the numbers and qualifications of the staff required in the facility using as its criteria the services being offered and the needs of the residents. (III)    f.    Additional staffing, above the minimum ratio, may be required by the department commensurate with the needs of the individual residents. (III)    g.    The minimum hours of resident care personnel required for residents needing intermediate nursing care shall be 2.0 hours per resident day computed on a seven-day week. A minimum of 20 percent of this time shall be provided by qualified nurses. If the maximum medical assistance rate is reduced below the 74th percentile, the requirement will return to 1.7 hours per resident per day computed on a seven-day week. A minimum of 20 percent of this time shall be provided by qualified nurses. (II, III)    h.    The health service supervisor’s hours worked per week shall be included in computing the 20 percent requirement.    i.    e.    A nursing facility of 75 beds or more shall have a qualified nurse on duty 24 hours per day, seven days a week. (II, III)    j.    f.    In facilities under 75 beds, if the health service supervisor is a licensed practical nurse, the facility shall employ a registered nurse, for at least four hours each week for consultation, who must be on duty at the same time as the health service supervisor. (II, III)    (1)   This shall be an on-site consultation and documentation shall be made of the visit. (III)    (2)   The registered nurse-consultant shall have responsibilities clearly outlined in a written agreement with the facility. (III)    (3)   Consultation shall include but not be limited to the following: counseling the health service supervisor in the management of the health services; (III) reviewing and evaluating the health services in determining that the needs of the residents are met; (II, III) conducting a review of medications at least monthly if the facility does not employ a registered nurse part-time. (II, III)    k.    g.    Facilities with 75 or more beds must employ a health service supervisor who is a registered nurse. (II)    l.    h.    There shall be at least two people who shall be capable of rendering nursing service, awake, dressed, and on duty at all times. (II)    m.    i.    Physician’sand other qualified health care practitioner’s orders shall be implemented by qualified personnel. (II, III)

        ITEM 10.    Amend paragraph 58.12(1)"g" as follows:    g.    A nursing facility shall provide for the safekeeping of personal effects, funds, and other property of its residents. The facility may require that items of exceptional value or which would convey unreasonable responsibilities to the licensee be removed from the premises of the facility for safekeepingResidents have a right to retain and use personal possessions, including furnishings and clothing, as space permits, unless to do so would infringe upon the rights or health and safety of other residents. (III)

        ITEM 11.    Amend subrule 58.14(2) as follows:    58.14(2)   Each resident admitted to a nursing facility shall have had a physical examination prior to admission. If the resident is admitted directly from a hospital, a copy of the hospital admission physical and discharge summary may be made part of the record in lieu of an additional physical examination. A record of the examination, signed by the physicianor other qualifying health care practitioner, shall be a part of the resident’s record. (III)

        ITEM 12.    Amend subrule 58.14(6) as follows:    58.14(6)   A schedule listing the names and telephone numbers of the physicians shall be posted in each nursing stationreadily available to nursing staff. (III)

        ITEM 13.    Amend paragraph 58.15(2)"c" as follows:    c.    Physical examination: The record of the admission physical examination anddescribed in subrule 58.14(2). It shall include the resident’s name, sex, age, pertinent medical history, shall portray the current medical status of the resident and shall include the resident’s name, sex, age, medical history, tuberculosis status, physical examination, diagnosis, statement of chief complaints, estimation of restoration potential and results of any diagnostic procedures. The report of the physical examination shall be signed by the physician.and any other information required to adequately assess the resident and whether the facility is able to meet the resident’s needs; (III)

        ITEM 14.    Amend paragraph 58.15(2)"e" as follows:    e.    Physician’s ordersOrders for medication, treatment, and diet in writing and signed by the physicianan appropriate qualifying health care practitioner quarterly; (III)

        ITEM 15.    Amend paragraph 58.15(4)"b" as follows:    b.    Report of incidents shall be in detail on a printed incident report formor electronic form. (III)

        ITEM 16.    Amend subparagraph 58.21(6)"c" as follows:    (2)   Be employed in the same facility forand work at least six consecutive months480 hours prior to the start of the medication aide course. This requirement is not subject to waiver.

        ITEM 17.    Amend paragraph 58.21(6)"d" as follows:    d.    A person who is a nursing student or a graduate nurse may take the challenge examination in place of taking a medication aide course. This individual shall do all of the following before taking the medication aide challenge examination:    (1)   Complete a clinical or nursing theory course within six months before taking the challenge examination;    (2)   Successfully complete a nursing program pharmacology course within one year before taking the challenge examination;    (3)   Provide to the community college a written statement from the nursing program’s pharmacology or clinical instructor indicating the individual is competent in medication administration.    (4)   Successfully complete a department-approved nurse aide competency evaluation.

        ITEM 18.    Amend subrule 58.21(9) as follows:    58.21(9)   Records shall be kept of all Schedule II drug medications received and dispensed in accordance with the controlled drug and substance Act42 CFR 483.45(b)(2) and federal interpretive guidelines. (III)

        ITEM 19.    Amend paragraph 58.21(11)"b" as follows:    b.    Medication for residents on leave from a facility longer than 24 hours shall be obtained in accordance with requirements established by the Iowa board of pharmacy examiners.

        ITEM 20.    Amend paragraph 58.21(13)"a" as follows:    a.    Bulk supplies of prescription drugs shall not be kept in a nursing facility unless a licensed pharmacy is established in the facility under the direct supervision and control of a pharmacistor the prescription drugs are stored in an automated medication distribution system (AMDS) in compliance with standards established by the Iowa board of pharmacy. (III)

        ITEM 21.    Amend paragraph 58.21(14)"a" as follows:    a.    All prescribed medications shall be clearly labeled indicating the resident’s full name, physician’s name, prescription number, name and strength of drug, dosage, directions for use, date of issue, and name and address and telephone number of pharmacy or physician issuing the drug. Where unit dose is used, prescribed medications shall, as a minimum, indicate the resident’s full name, physician’s name, name and strength of drug, and directions for use. Standard containers shall be utilized for dispensing drugs. Paper envelopes shall not be considered standard containers.Prescription medications distributed from an AMDS shall follow any labeling standards established by the Iowa board of pharmacy. (III)

        ITEM 22.    Amend paragraphs 58.21(14)"j" and 58.21(14)"k" as follows:    j.    Instructions shall be requested of the Iowa board of pharmacy examiners concerning disposal of unused Schedule II drugs prescribed for residents who have died or for whom the Schedule II drug was discontinued. (III)    k.    There shall be a formal routine for the proper disposal of discontinued medications within a reasonable but specified time. These medications shall not be retained with the resident’s current medications. Discontinued drugs shall be destroyed by the responsible nurse with a witness and a notation made to that effect or returned to the pharmacist for destruction or resident credit. Drugs listed under the Schedule II drugs shall be disposed of in accordance with the provisions of the Iowa board of pharmacy examiners. (II, III)

        ITEM 23.    Amend paragraph 58.21(14)"r" as follows:    r.    A pharmacy operating in connection with a nursing facility shall comply with the provisions of the pharmacy law requiring registration of pharmacies and the regulations of the Iowa board of pharmacy examiners. (III)

        ITEM 24.    Amend subparagraph 58.22(1)"d" as follows:    (1)   The physician’s prescription for treatment; (III)

        ITEM 25.    Amend subparagraph 58.22(2)"d" as follows:    (1)   Develop the treatment plan and administer or direct treatment in accordance with the physician’s prescription and rehabilitation goals; (III)

        ITEM 26.    Amend subrules 58.24(2) to 58.24(4) as follows:    .(2) Dietary staffing.  The facility shall employ dietary staff in accordance with 42 CFR 483.60(a).    a.    The facility shall employ a qualified dietary supervisor who:    (1)   Is a qualified dietitian as defined in 58.24(2)“e”; or    (2)   Is a graduate of a dietetic technician training program approved by the Academy of Nutrition and Dietetics; or    (3)   Is a certified dietary manager certified by the certifying board for dietary managers of the Association of Nutrition and Foodservice Professionals and maintains that credential through 45 hours of ANFP-approved continuing education; or    (4)   Has completed an ANFP-approved course curriculum necessary to take the certification examination required to become a certified dietary manager; or    (5)   Has documented evidence of at least two years’ satisfactory work experience in food service supervision and who is in an approved dietary manager association program and will successfully complete the program within 24 months of the date of enrollment; or    (6)   Has completed the 90-hour training course approved by the department and is a certified food protection manager who has received training from and passed a test that is part of an American National Standards Institute (ANSI)-accredited Certified Food Protection Manager Program. (II, III)    b.    The supervisor shall have overall supervisory responsibility for dietetic services and shall be employed for a sufficient number of hours to complete management responsibilities that include:    (1)   Participating in regular conferences with the consultant dietitian, the administrator and other department heads; (III)    (2)   Writing menus with consultation from the dietitian and seeing that current menus are posted and followed and that menu changes are recorded; (III)    (3)   Establishing and maintaining standards for food preparation and service; (II, III)    (4)   Participating in selection, orientation, and in-service training of dietary personnel; (II, III)    (5)   Supervising activities of dietary personnel; (II, III)    (6)   Maintaining up-to-date records of residents identified by name, location and diet order; (III)    (7)   Visiting residents to learn individual needs and communicating with other members of the health care team regarding nutritional needs of residents when necessary; (II, III)    (8)   Keeping records of repairs of equipment in dietetic services. (III)    c.    A minimum of one person with supervisory and management responsibility and the authority to direct and control food preparation and service shall be a certified food protection manager who has received training from and passed a test that is part of an American National Standards Institute (ANSI)-accredited Certified Food Protection Manager Program.    d.    The facility shall employ sufficient supportive personnel to carry out the following functions:    (1)   Preparing and serving adequate amounts of food that are handled in a manner to be bacteriologically safe; (II, III)    (2)   Washing and sanitizing dishes, pots, pans and equipment at temperatures required by procedures described in the Food Code as defined in Iowa Code section 137F.2; (II, III)    (3)   Serving therapeutic diets as prescribed by the physicianor other qualified health care practitioner, including a licensed dietitian if delegated by the physician and within the dietician’s scope of practice, and following the planned menu. (II, III)    e.    The facility may assign simultaneous duties in the kitchen and laundry, housekeeping, or nursing service to appropriately trained personnel. Proper sanitary and personal hygiene procedures shall be followed as outlined under the rules pertaining to staff hygienein compliance with the Food and Drug Administration Food Code adopted pursuant to Iowa Code section 137F.2 and 481—Chapter 31. (II, III)    f.    If the dietetic service supervisor is not a licensed dietitian, a consultant dietitian is required. The consultant dietitian shall be licensed by the state of Iowa pursuant to Iowa Code chapter 152A.    g.    Consultants’ visits shall be scheduled to be of sufficient duration and at a time convenient to:    (1)   Record, in the resident’s medical record, any observations, assessments and information pertinent to medical nutrition therapy; (I, II, III)    (2)   Work with residents and staff on resident care plans; (III)    (3)   Consult with the administrator and others on developing and implementing policies and procedures; (III)    (4)   Write or approve general and therapeutic menus; (III)    (5)   Work with the dietetic supervisor on developing procedures, recipes and other management tools; (III)    (6)   Present planned in-service training and staff development for food service employees and others. Documentation of consultation shall be available for review in the facility by the department. (III)    h.    In facilities licensed for more than 15 beds, dietetic services shall be available for a minimum of a 12-hour span extending from the time of preparation of breakfast through supper. (III)    .(3) Nutrition and menu planning.      a.    Menus shall be planned and followed to meet the nutritional needs of each resident in accordance with the physician’sa qualified health care practitioner’s orders and in consideration of the resident’sallergies, intolerances, choices, and preferences. (II, III)    b.    Menus shall be planned to provide 100 percent of the daily recommended dietary allowances as established by the Food and Nutrition Board of the National Research Council of the National Academy of Sciences. A current copy of the Simplified Diet Manual or other suitable diet manual shall be available and used in the planning and serving of all meals. (II)    c.    At least three meals or their equivalent shall be served daily at regular hours. (II)    (1)   There shall be no more than a 14-hour span between a substantial evening meal and breakfast except as provided in subparagraph (3) below. (II, III)    (2)   The facility shall offer snacks at bedtime daily.Suitable, nourishing alternative meals and snacks must be provided to residents who want to eat at nontraditional times or outside of scheduled meal service times, consistent with the resident plan of care. (II, III)    (3)   When a nourishing snack is provided at bedtime, up to 16 hours may elapse between a substantial evening meal and breakfast of the following day. The current resident group must agree to this meal span and a nourishing snack must be served. (II)    d.    Menus shall include a variety of foods prepared in various ways. (III)    e.    Menus shall be written at least one week in advance. The current menu shall be located in an accessible place in the dietetic services department for easy use by persons purchasing, preparing and serving food. (III)    f.    Records of menus as served shall be filed and maintained for 30 days and shall be available for review by department personnel. When substitutions are necessary, they shall be of similar nutritive value and recorded. (III)    g.    A file of tested recipes adjusted to the number of people to be served in the facility shall be maintained. (III)    h.    Alternate foodsof similar nutritional value shall be offered to residents who refuse the food served. (II, III)    .(4) Therapeutic diets and nutritional status.      a.    The facility shall ensure that each resident has a nutritional assessment completed by the licensed dietitian within 14 days of admissionor after the facility determines there has been a significant change in the resident’s physical or mental condition that addresses the residents’ medical condition and therapeutic dietary needs, desires and rights in regard to their nutritional plan. (I, II, III)    b.    Therapeutic diets shall be prescribed by the resident’s physicianor other qualified health care practitioner. A current edition of the Simplified Diet Manual or other suitable diet manual shall be readily available to physicians, nurses and dietetic services personnel. A current diet manual shall be used as a guide for writing menus for therapeutic diets. A licensed dietitian shall be responsible for writing and approving the therapeutic menu and reviewing procedures for preparation and service of food. (II, III)    c.    Personnel responsible for planning, preparing and serving therapeutic diets shall receive instructions on those diets. (II, III)    d.    The facility shall ensure that each resident maintains acceptable parameters of nutritional status, such as body weight, unless the resident’s clinical condition demonstrates that this is not possible. (I, II, III)

        ITEM 27.    Amend subrule 58.26(2) as follows:    58.26(2) Coordination of activities program.      a.    Each nursing facility shall employ a person to direct the activities program. (III)    11Objection filed 2/14/79; see Objection at end of chapter.b.    Staffing for the activity program shall be provided on the minimum basis of 35 minutes per licensed bed per weeksufficient to meet the residents’ activity needs. (II, III)    c.    The activity coordinator shall have completed the activity coordinators’ orientation course offered through the department within six months of employment or have comparable training and experience as approved by the department. (III)    d.    c.    The activity coordinator shall attend workshops or educational programs which relate to activity programming. These shall total a minimum of ten contact hours per year. These programs shall be approved by the department. (III)    e.    d.    There shall be a written plan for personnel coverage when the activity coordinator is absent during scheduled working hours. (III)

        ITEM 28.    Rescind and reserve rule 481—58.27(135C).

        ITEM 29.    Amend paragraph 58.35(1)"b" as follows:    b.    Battery-operated, portablePortable emergency lights in good working condition shall be available at all times, at a ratio of one light per one employee on duty from 6 p.m. to 6 a.m. (III)

        ITEM 30.    Amend subrule 58.35(5) as follows:    58.35(5) Heating.  A centralized heating system capable of maintaining a minimum temperature of 78°F (26°C) shall be provided. Portable units or space heaters are prohibited from being used in the facility exceptas permitted in the governing Life Safety Code or in an emergency.In the event of emergency use, the facility shall provide notice to the state fire marshal’s office within 24 hours. (III)

        ITEM 31.    Amend paragraph 58.38(3)"b" as follows:    b.    There shall be disposable or one-time use items available with provisions for proper disposal to prevent reuse except as allowed by 58.10(8)“h,” 481—paragraph 59.12(10)“h,” or 481—paragraph 64.12(14)“h.”generally accepted infection control standards. (I, II, III)

        ITEM 32.    Amend paragraph 58.38(3)"f" as follows:    f.    Supplies and equipment for nursing and personal care sufficient in quantities to meet the needs of the residents shall be provided and, as a minimum, include the following:. (III)Bath basinsRectal tubesSoap containersCatheters and catheterization equipmentDenture cupsDouche nozzleEmesis basinsOxygen therapy equipmentMouthwash cupsNaso-gastric feeding equipmentBedpansWheelchairsUrinalsMoisture-proof draw sheetsEnema equipmentMoisture-proof pillow coversCommodesMoisture-proof mattress coversQuart graduate measureFoot tubsThermometer for measurement of bathMetal pitcher    water temperatureDisinfectant solutionsOral thermometerAlcoholRectal thermometerLubricating jellyBasins for sterilizing thermometersSkin lotionBasins for irrigationsApplicatorsAsepto syringesTongue bladesSphygmomanometerToilet paperPaper towelsRubber gloves or disposable glovesPaper handkerchiefsScales for nonambulatory patientsInsulin syringesTourniquet2 cc hypodermic syringesSuction machineWeight scalesMedicine dispensing containersHypodermic needlesBandagesStethoscopeAdhesiveIce capsPortable linen hampersHot water bottlesDenture identification equipmentTracheotomy care equipment

        ITEM 33.    Amend subrule 58.39(2) as follows:    58.39(2)   Policies and procedures shall address the admission and retention of persons with histories of dangerous or disturbing behavior. For the purposes of the subrule, persons with histories of dangerous or disturbing behavior are those persons who have been found to be seriously mentally impaired pursuant to Iowa Code section 229.13 or 812.1 within six months of the request for admission to the facility. In addition to establishing the criteria for admission and retention of persons so defined, the policies and procedures shall provide for:    a.    Reasonable precautions to prevent the resident from harming self, other residents, or employees of the facility.    b.    Treatment of persons with mental illness as defined in Iowa Code section 229.1(1) and which is provided in accordance with the individualized health care plan.    c.    Ongoing and documented staff training on individualized health care planning for persons with mental illness.

        ITEM 34.    Amend paragraphs 58.39(9)"d" and 58.39(9)"e" as follows:    d.    The resident’s plan of care shall be based, in part, on the physician’s orders. It shall be developed upon admission by appropriate facility staff and shall include participation by the resident if capable. Residents shall be advised of alternative courses of care and treatment and their consequences when such alternatives are available. The resident’s preference about alternatives shall be elicited and honored if feasible.    e.    Any clinical investigation involving residents must be under the sponsorship of an institution with a human subjects review board functioning in accordance with the requirements of Public Law 93-348, as implemented by Part 46 of Title 45 of the Code of Federal Regulations, as amended to December 1, 1981 (45 CFR 46). A resident being considered for participation in experimental research must be fully informed of the nature of the experiment, e.g., medication, treatment, and understand the possible consequences of participating or not participating. The resident’s (or responsible party’s) written informed consent must be received prior to participation. (II)

        ITEM 35.    Amend subparagraph 58.40(5)"a" as follows:    (3)   A statement, in not less than 12-point type, that reads as follows: (II)You have a right to appeal the facility’s decision to transfer or discharge you. If you think you should not have to leave this facility, you may request a hearing, in writing or verbally, with the Iowa department of inspections and appeals (hereinafter referred to as “department”) within 7 days after receiving this notice. You have a right to be represented at the hearing by an attorney or any other individual of your choice. If you request a hearing, it will be held no later than 14 days after the department’s receipt of your request and you will not be transferred before a final decision is rendered. Extension of the 14-day requirement may be permitted in emergency circumstances upon request to the department’s designee. If you lose the hearing, you will not be transferred before the expiration of either (1) 30 days following your receipt of the original notice of the discharge or transfer, or (2) 5 days following final decision of such hearing, including the exhaustion of all appeals, whichever occurs later. To request a hearing or receive further information, call the department at (515)281-4115, or write to the department to the attention of: Administrator, Division of Health Facilities, Department of Inspections and Appeals, Lucas State Office Building, Des Moines, Iowa 50319-0083. (II)

        ITEM 36.    Amend subparagraph 58.40(6)"a" as follows:    (3)   A statement, in not less than 12-point type, that reads as follows: (II)You have a right to appeal the facility’s decision to transfer or discharge you on an emergency basis. If you think you should not have to leave this facility, you may request a hearing, in writing or verbally, with the Iowa department of inspections and appeals (hereinafter referred to as “department”) within 7 days after receiving this notice. You have a right to be represented at the hearing by an attorney or any other individual of your choice. If you request a hearing, it will be held no later than 14 days after the department’s receipt of your request. You may be transferred or discharged before the hearing is held or before a final decision is rendered. If you win the hearing, you have the right to be transferred back into the facility. To request a hearing or receive further information, call the department at (515)281-4115, or write to the department to the attention of: Administrator, Division of Health Facilities, Department of Inspections and Appeals, Lucas State Office Building, Des Moines, Iowa 50319-0083. (II)

        ITEM 37.    Rescind paragraph 58.43(7)"j".

        ITEM 38.    Reletter paragraphs 58.43(7)"k" to 58.43(7)"m" as 58.43(7)"j" to 58.43(7)"l".

        ITEM 39.    Amend subrule 58.44(3) as follows:    58.44(3)   The resident, or the resident’s responsible party, shall be entitled to examine all information contained in the resident’s record and shall have the right to secure full copies of the record at reasonable cost upon request, unless the physician determines the disclosure of the record or section thereof is contraindicated in which case this information will be deleted prior to making the record available to the resident or responsible party. This determination and the reasons for it must be documented in the resident’s record. (II)

        ITEM 40.    Amend rule 481—58.46(135C) as follows:

    481—58.46(135C) Resident work.  No resident may be required to perform services for the facility, except as provided by Iowa Code sections 35D.14 and 347B.5.Residents may perform services for the facility if such services are performed in accordance with 42 CFR 483.10(f)(9). (II)    58.46(1)   Residents may not be used to provide a source of labor for the facility against their will. Physician’s approval is required for all work programs. (I, II)    58.46(2)   If the plan of care requires activities for therapeutic or training reasons, the plan for these activities shall be professionally developed and implemented. Therapeutic or training goals must be clearly stated and measurable and the plan shall be time limited and reviewed at least quarterly. (II)    58.46(3)   Residents who perform work for the facility must receive remuneration unless the work is part of their approved training program. Persons on the resident census performing work shall not be used to replace paid employees in fulfilling staffing requirements. (II)

        ITEM 41.    Amend rule 481—58.47(135C) as follows:

    481—58.47(135C) Communications.  Each resident may communicate, associate, and meet privately with persons of the resident’s choice, unless to do so would infringe upon the rights of other residents, and may send and receive personal mail unopened. (II)    58.47(1)   Subject to reasonable scheduling restrictions, visiting policies and procedures shall permit residents to receive visits from anyone they wish. Visiting hours shall be posted. (II)    58.(2) 58.47(1)   Reasonable, regular visiting hours shall not be less than 12 hours per day and shall take into consideration the special circumstances of each visitor. A particular visitor(s) may be restricted by the facility for one of the following reasons:Residents shall be permitted to receive visitors in accordance with 42 CFR 483.10(f)(4) and the federal interpretive guidelines. (II)    a.    The resident refuses to see the visitor(s). (II)    b.    The resident’s physician documents specific reasons why such a visit would be harmful to the resident’s health. (II)    c.    The visitor’s behavior is unreasonably disruptive to the functioning of the facility (this judgment must be made by the administrator and the reasons shall be documented and kept on file). (II)    58.(3) 58.47(2)   Decisions to restrict a visitor are reviewed and reevaluated: each time the medical orders are reviewed by the physician;, at least quarterly by the facility’s staff;, or at the resident’s request. (II)    58.(4) 58.47(3)   Space shall be provided for residents to receive visitors in reasonable comfort and privacy. (II)    58.(5) 58.47(4)   Telephones consistent with ANSI standards (405.1134(c)) shall be available and accessible for residents to make and receive calls with privacyin accordance with 42 CFR 483.10(g)(6) and (7). Residents who need help shall be assisted in using the telephone. (II)    58.(6) 58.47(5)   Arrangements shall be made to provide assistance to residents who require help in reading or sending mail. (II)    58.(7) 58.47(6)   Residents shall be permitted to leave the facility and environs at reasonable times unless there are justifiable reasons established in writing by the attending physician, qualified intellectual disabilities professional or facility administrator for refusing permission. (II)    58.(8) 58.47(7)   Residents shall not have their personal lives regulated beyond reasonable adherence to meal schedules, bedtime hours, and other written policies which may be necessary for the orderly management of the facility and as required by these rules. However, residents shall be encouraged to participate in recreational programs. (II)

        ITEM 42.    Rescind subrule 58.49(2).

        ITEM 43.    Renumber subrules 58.49(3) to 58.49(5) as 58.49(2) to 58.49(4).

        ITEM 44.    Amend subrules 58.50(2) and 58.50(3) as follows:    58 58.50 50(2)   Spouses who are residents in the same facility shall be permitted to share a room, if available, unless one of their attending physicians documents in the medical record those specific reasons why an arrangement would have an adverse effect on the health of the resident. (II)    58 58.50 50(3)   Family members shall be permitted to share a room, if available, if requested by both parties, unless one of their attending physicians documents in the medical record those specific reasons why such an agreement would have an adverse effect on the health of the resident. (II)

        ITEM 45.    Amend rule 481—58.51(135C) as follows:

    481—58.51(135C) Choice of physician and pharmacy.  Each resident shall be permitted free choice of a physician and a pharmacy, if accessible. TheEach resident shall have the right to choose the resident’s Medicare prescription drug benefit plan (Part D) pursuant to Section 1860D of the Social Security Act, and the facility shall utilize a pharmacy(ies) that recognizes the Part D plans chosen by that facility’s Medicare beneficiaries. Each resident shall have free choice of pharmacy as to medications purchased by the resident outside of Part D plan coverage, although the facility may require the pharmacy selected to utilize a drug distribution system compatible with the system currently used by the facility.A facility shall not require the repackaging of medications dispensed by the Veterans Administration or an institution operated by the Veterans Administration for the purpose of making the drug distribution system compatible with the system used by the facility. (II)

        ITEM 46.    Rescind and reserve rule 481—58.53(135C).

        ITEM 47.    Amend rule 481—58.54(73GA,ch 1016), parenthetical implementation statute, as follows:

    481—58.54(73GA,ch 1016135C) Special unit or facility dedicated to the care of persons with chronic confusion or a dementing illness (CCDI unit or facility).  

        ITEM 48.    Amend subrule 58.54(1) as follows:    58.54(1)   A nursing facility which chooses to care for residents in a distinct part shall obtain a license for a CCDI unit or facility. In the case of a distinct part, this license will be in addition to its ICFnursing facility license. The license shall state the number of beds in the unit or facility. (III)    a.    Application for this category of care shall be submitted on a form provided by the department. (III)    b.    Plans to modify the physical environment shall be submitted to the department. The plans shall be reviewed based on the requirements of 481—Chapter 61. (III)

        ITEM 49.    Rescind the implementation sentence in rule 481—58.54(73GA,ch 1016).

        ITEM 50.    Amend subrule 58.56(1) as follows:    58.56(1)   A nursing facility certified as a Medicaid nursing facility or Medicare skilled nursing facility must meet all Medicaid and Medicare requirements including42 CFR 483.12483.15, admission, transfer and discharge rights.

        ITEM 51.    Amend 481—Chapter 58, implementation sentence, as follows:       These rules are intended to implement Iowa Code sections 10A.202, 10A.402, 135C.6(1), 135C.14, 135C.25, 135C.32, 135C.36 and 227.4 and 1990 Iowa Acts, chapter 1016.
    ARC 6910CInspections and Appeals Department[481]Notice of Intended Action

    Proposing rule making related to minimum physical standards for residential care facilities and providing an opportunity for public comment

        The Inspections and Appeals Department hereby proposes to rescind Chapter 60, “Minimum Physical Standards for Residential Care Facilities,” Iowa Administrative Code, and to adopt a new Chapter 60 with the same title.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 10A.104 and 135C.2.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 10A.104, 17A.7 and 135C.2.Purpose and Summary    The Department completed a comprehensive review of Chapter 60 in accordance with the requirement in Iowa Code section 17A.7(2). This proposed rule making rescinds and adopts a new Chapter 60, which incorporates by reference generally accepted design and construction standards for the construction and renovation of health care facilities.     The Department requested the assistance of the Building Code Bureau of the State Fire Marshal’s office to review the rules pertaining to minimum physical standards for residential care facilities.  During the review process, the Building Code Bureau compared the provisions of existing Chapter 60 against other applicable building codes and standards and determined that many of the provisions of the current chapter were outdated, unenforceable, or irrelevant. The new Chapter 60 aligns more closely with the requirements for other health care facilities licensed pursuant to Iowa Code chapter 135C and incorporates the following pertinent standards:

  • 661—Chapter 205, Fire Safety Requirements for Hospitals and Health Care Facilities;
  • 661—Chapter 301, State Building Code—General Provisions, and State Building Code for I-1 Condition 2 occupancies;
  • 641—Chapter 25, State Plumbing Code; and
  • 661—Chapter 302, State Building Code—Accessibility of Buildings and Facilities Available to the Public.
  •     Consideration is given to existing residential care facilities, which are deemed to comply if the facilities followed prior versions of Chapter 60 at the time of their construction or renovation. Essentially, this rule making omits from new Chapter 60 design and construction standards contained within the administrative rules of the Department of Public Safety, State Building Code Bureau. The new Chapter 60, therefore, focuses on those physical standards directly related to the care of residential care facility residents, including the maintenance of specialized units or rooms.    The Department does not believe that the proposed amendment poses a financial hardship on any regulated entity or individual. Rather, adoption of the amendment will eliminate redundant language from the Iowa Administrative Code.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 481—Chapter 6 . Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Department no later than 4:30 p.m. on March 14, 2023. Comments should be directed to: Ashleigh Hackel Iowa Department of Inspections and Appeals Lucas State Office Building 321 East 12th Street Des Moines, Iowa 50319 Email: ashleigh.hackel@dia.iowa.gov Public Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

        ITEM 1.    Rescind 481—Chapter 60 and adopt the following new chapter in lieu thereof: CHAPTER 60MINIMUM PHYSICAL STANDARDS FOR RESIDENTIAL CARE FACILITIES

    481—60.1(135C) Definitions.  Definitions in rules 481—57.1(135C) and 481—63.1(135C) are incorporated by reference as part of this chapter. In addition, the following definition shall apply:        "Responsible design professional" means a registered architect or licensed professional engineer who signs the documents submitted pursuant to rule 481—60.3(135C).

    481—60.2(135C) General requirements.  Residential care facilities licensed under this chapter shall be built in accordance with the following construction standards:    60.2(1)   Construction shall be in conformance with 661—Chapter 201.    60.2(2)   Construction shall be in conformance with 661—Chapter 301. Projects meeting the local building code shall be deemed to be in compliance with the state building code provided that the local jurisdiction has established a building department, has adopted a building code by ordinance and enforces the local code through a system that includes both plan review and inspection.    60.2(3)   Nothing in these rules shall relieve a residential care facility from compliance with fire and building codes, ordinances and regulations that are enforced by a city, county, state or federal jurisdiction.    60.2(4)   Any alteration or installation of new equipment shall be accomplished as nearly as practical in conformance with all applicable codes, ordinances, regulations and standards required for new construction. Alteration or installation of new equipment shall not diminish the level of compliance with any codes, ordinances, regulations or standards below that existed prior to the alteration. Any feature that does not meet the requirement for new buildings but exceeds the requirement for existing buildings shall not be further diminished. Features that exceed requirements for new construction need not be maintained. In no case shall any feature be less than that required for existing buildings. (III)    60.2(5)   Existing residential care facilities built in compliance with prior versions of this chapter will be deemed in compliance, with the exception of any renovations, additions, functional alterations, changes of space utilization, or conversions to existing facilities for which construction documents are submitted pursuant to rule 481—60.3(135C) on or after July 1, 2023, which shall meet the standards specified in this chapter. Conversion of a building or any of the parts not currently licensed as a nursing facility must meet the rules governing construction of new facilities.    60.2(6)   Final plan approval and final occupancy shall be given by the state fire marshal’s office.

    481—60.3(135C) Submission of construction documents.      60.3(1)   Submissions of architectural technical documents, engineering documents, and plans and specifications to the state fire marshal’s office shall be as required by rule 661—300.4(103A) and are the responsibility of the owner of the building or facility, although the actual submission may be completed by an authorized agent of the owner or the responsible design professional.    60.3(2)   Plans, specifications and other supporting information shall be sufficiently clear and complete to show in detail that the proposed work will comply with the construction standards required by rule 481—60.2(135C).    60.3(3)   Submittals to the state fire marshal’s office shall be certified or stamped and signed as required by Iowa Code chapters 542B and 544A, unless the applicant has certified on the submittal to the applicability of a specific exception under Iowa Code section 544A.18 and the submittal does not constitute the practice of engineering as defined by Iowa Code section 542B.2.    60.3(4)   The responsible design professional shall certify that the building plans meet the requirements specified in this chapter, unless a waiver has been granted pursuant to rule 481—60.4(135C).

    481—60.4(135C) Waivers.      60.4(1)   Procedures in rule 481—57.2(135C) for requesting a waiver are incorporated by reference as part of this chapter.    60.4(2)   Waivers are limited to the specific project under consideration and do not establish a precedent for similar acceptance in other cases. The type of license, occupancy, and function of the building will be considered with respect to a request for waiver. In specific cases, waivers may be granted by the director after the following conditions are met:    a.    The design and planning for the specific property offer improved or compensating features that provide equivalent desirability and utility;    b.    Alternate or special construction methods, techniques, and mechanical equipment offer equivalent durability, utility, safety, structural strength and rigidity, sanitation, and odor control; protection from corrosion, decay and insect attack; and quality of workmanship; and    c.    The health, safety or welfare of any resident is not endangered.

    481—60.5(135C) Additional notification requirements.      60.5(1)   When new construction or renovation, addition, functional alteration, change of space utilization, or conversion of an existing building is contemplated, the licensee or applicant for a license shall:    a.    File a detailed and comprehensive program of care, as set forth in rule 481—57.3(135C), which includes a description of the specific needs of the residents to be served, and any other information the department may require. (III)    b.    Receive written approval from the state fire marshal’s office before starting construction. The applicant is responsible for ensuring that construction proceeds according to approved plans and specifications.     c.    Meet requirements for new construction if the project includes changes to structural and life safety components of the building or changes for accessibility of persons with disabilities. Only that portion of the building that is part of the project must meet requirements for new construction.    60.5(2)   For new construction or renovations, additions, functional alterations, change of space utilization or conversion of an existing building, it is the responsibility of the owner or an agent to notify the state fire marshal’s office at all of the following intervals and wait for inspection before proceeding. Inspections shall be conducted in accordance with the following schedule:    a.    Two days prior to the beginning of any construction or demolition.    b.    After installation of any under-slab plumbing and before covering is installed.    c.    After installation of electrical, mechanical and plumbing and prior to covering.    d.    Five days prior to a final occupancy inspection.    60.5(3)   The following must approve the project before final occupancy: the state fire inspector; the state building inspector; and, in jurisdictions without electrical code enforcement, the state electrical inspector. Approval of local or county jurisdictions is as required by those jurisdictions.

    481—60.6(135C) Construction requirements.       60.6(1) General provisions.      a.    Projects shall be constructed in compliance with 661—Chapter 201. Projects required to meet the provisions of the state building code shall be deemed to be in compliance with the fire safety requirements of the state building code if the residential care facility is in compliance with the provisions of 661—Chapter 205.    b.    Projects shall be constructed in compliance with 661—Chapter 301. Projects meeting the local building code shall be deemed to be in compliance with the state building code provided that the local jurisdiction has established a building department, has adopted a building code by ordinance and enforces the local code through a system that includes both plan review and inspection.    c.    Final plan approval and final occupancy shall be given by the state fire marshal’s office.    60.6(2) Mechanical requirements.      a.    Projects shall be constructed in compliance with 661—Chapter 201.    b.    Projects shall be constructed in compliance with the state mechanical code as provided in 661—Chapter 201. Projects meeting the local mechanical code shall be deemed to be in compliance with the state mechanical code provided that the local jurisdiction has established a building department, has adopted a building code by ordinance and enforces the local code through a system that includes both plan review and inspection.    c.    Final plan approval and final occupancy shall be given by the state fire marshal’s office.    60.6(3) Electrical requirements.      a.    Projects shall be constructed in compliance with standards referenced in 661—Chapter 205.    b.    Projects shall be constructed in compliance with the state electrical code as provided in 661—Chapter 504.    60.6(4) Plumbing requirements.  Projects shall be constructed in compliance with 641—Chapter 25.    60.6(5) Accessibility requirements.  Projects shall be constructed in compliance with 661—Chapter 302.

    481—60.7(135C) Typical construction.      60.7(1)   Details and finishes shall be designed to provide a high degree of safety for the occupants by minimizing the opportunity for accidents. Hazards such as sharp corners shall be avoided. (III)    60.7(2)   No door shall swing into the exit corridor except doors to spaces such as small closets that are not subject to occupancy. Each resident bedroom shall have a door that is a swing type and swings in, unless the door is fully recessed.    60.7(3)   All doors opening into corridors shall be swing-type doors, except elevator doors. (III)    60.7(4)   All sinks shall have towel dispensers that hold non-reusable towels. (III)    60.7(5)   Partition, floor, and ceiling construction in resident areas shall comply with noise reduction criteria in the following table. The requirements set forth in this table assume installation methods that will not appreciably reduce the efficiency of the assembly as tested. Location of electrical receptacles, grills, ductwork, and other mechanical items, and blocking and sealing of partitions at floors and ceilings shall not compromise the sound isolation required. (III)Table 1Airborne Sound Transmission Class (STC)*PartitionsFloorsResident’s room to resident’s room3535Corridor to resident’s room3535Public space to resident’s room**4040Service areas to resident’s room***5050 *STC shall be determined by tests in accordance with methods set forth in ASTM Standard E 90 and ASTM Standard E 413. **Public space includes lobbies, dining rooms, recreation rooms, treatment rooms, and similar places.***Service areas include kitchens, elevators, elevator machine rooms, laundries, garages, maintenance rooms, boiler and mechanical equipment rooms, and similar spaces of high noise. Mechanical equipment located on the same floor or above residents’ rooms, offices, nurses stations, and similar occupied spaces shall be effectively isolated from the floor.     60.7(6)   Doors, sidelights, borrowed lights, and windows in which the glazing extends below 31 inches from the floor shall have a horizontal mullion or railing at 31 to 34 inches above the finished floor and be glazed with safety glass, plastic glazing material, or wire glass where required by the state fire marshal. All replacement glass shall meet this code with no exception.

    481—60.8(135C) Sleeping, bathing, and medication rooms.      60.8(1) Facilities shall have a medication room that is well-lighted and has the following: (III)      a.    A drug cabinet;    b.    A work counter;    c.    Refrigerator storage;    d.    A chest or compartment with a lock for storage of Schedule II drugs as defined by Iowa Code chapter 124; and    e.    A sink.    60.8(2)   Facilities licensed for 15 beds or fewer need not have a medication room, but shall have space for the appropriate preparation and storage of medication, including locked medication storage as required in subrule 60.8(1).     60.8(3)   Resident rooms shall meet the following minimum requirements:    a.    Bedrooms shall open directly into a corridor or common living area and shall not be used as a thoroughfare. (III)    b.    The minimum room area, exclusive of closets, toilet rooms, lockers, wardrobes, vestibules, and corridor door swings, shall be 100 square feet in one-bed rooms and 80 square feet per bed in multibed rooms. Usable floor space of a room shall be no less than 8 feet in any major dimension.     c.    Each resident room shall be provided with light by means of a window or windows with a net glass area equal to 10 percent of the total floor area. The window sill shall not be higher than 3 feet above the floor.     d.    There shall be a wardrobe, closet, or chest of drawers in each resident’s room to provide sufficient storage for clothing and personal belongings. Where a closet is shared, segregated portions shall be established. Each wardrobe and closet in each resident room shall have a door. (III)     e.    No bedroom shall be located so that its floor will be more than 30 inches below the adjacent grade level. (III)    f.    Fixtures or storage shall be provided to hold individual towels and washcloths. (III)    g.    No part of any room shall be enclosed, subdivided, or partitioned unless such part is separately lighted and ventilated and meets other requirements its usage and occupancy dictate, except closets used for the storage of resident’s clothing. (III)    h.    Rooms in which beds are erected shall not be used for purposes other than bedrooms. (III)    i.    Each resident bedroom shall have a door. The door shall be the swing type and shall swing in, unless fully recessed. (III)    j.    Multibed rooms shall be designed to permit no more than two beds, side-by-side, parallel to the window wall. (III)     k.    Each resident bedroom shall be so designed that the head of the bed shall not be in front of a window or a heat register or radiator. (III)    l.    One sink shall be provided in each resident room. The sink may be omitted from a room when a sink is located in an adjoining toilet room which serves that room. (III)     m.    Multibed rooms shall provide full visual privacy for each resident. (III)    60.8(4)   Each resident toilet room shall be adjacent to the resident rooms. Jack and Jill-style toilet rooms are not permitted in new constructions or renovations.    60.8(5)   Central bathing.    a.    Minimum numbers of toilets in bathing facilities shall be one sink and one toilet for each 10 residents, and one tub or shower for each 15 residents or fraction thereof. For facilities licensed for 15 beds or fewer, one bathing unit shall be provided for each five residents.    b.    There shall be a minimum of one bathroom with tub or shower, toilet, and sink on each floor that has resident bedrooms in multistory buildings. (III)    c.    Separate toilets for genders shall be provided. (III)     d.    Privacy for dressing and bathing shall be provided in central bathrooms. (III)    e.    All bathrooms shall have mechanical ventilation. (III)    f.    Each bathroom shall have a toilet and a sink. (III)    g.    Toilet and bathing facilities shall not open directly into food preparation areas. (III)    h.    Central bathing areas shall have a swinging door that swings into the bathroom. (III)    i.    Soap holders shall be provided in showers and bathtubs. (III)     j.    Raised toilet seats shall be available for residents as needed. (III)    k.    In facilities where the total occupancy of family, employees, and residents is more than five, separate bathing and toilet facilities shall be required for the family or employees distinct from such areas provided for residents. (III)    l.    Bathtubs or showers shall be equipped with screwdriver stop valves in the water supply system. (III)     m.    The temperature of the hot water to the resident sinks, bath, and showers shall range between 110° Fahrenheit and 120° Fahrenheit.    60.8(6)   A soiled workroom, work counter, waste and soiled linen receptacles, and a two-compartment sink shall be provided. (III) One compartment of the double sink shall be a minimum of 10 inches deep for cleaning and sanitizing equipment. (III)     60.8(7)   Enclosed clean linen storage, separate from the clean workroom. (III)

    481—60.9(135C) Dining, activity, and storage rooms.      60.9(1)   Where space is provided for multipurpose dining, activities, or recreational purposes, the area shall total at least 30 square feet per licensed bed for the first 100 beds and 27 feet per licensed bed for all beds in excess of 100. An open area of sufficient size shall be provided to permit group activities, such as religious meetings or presentation of demonstrations or entertainment. (III)    60.9(2)   Where space is provided to be used only for activities and recreational purposes, the area shall be at least 15 square feet per licensed bed. At least 50 percent of the required area must be in one room. (III)    60.9(3)   Where the dining and the lounge recreation areas are separated, each area shall provide a minimum of 180 square feet of usable floor space and be not less than 10 feet in any one dimension. Where space is provided to be used only for dining, the area shall total at least 15 square feet per licensed bed. (III)    60.9(4)   An equipment storage room shall be provided. (III)     60.9(5)   Enclosed clothing storage of at least 2 linear feet per bed for storage of off-season clothing shall be provided.

    481—60.10(135C) Service area.      60.10(1) Definition of a service area.   The size of a service area shall depend upon the number and types of beds within the supervised unit. A service area shall contain the following rooms or areas: (III)    a.    Dietetic service area,    b.    Janitor’s closet,    c.    Laundry area,    d.    General storage area,    e.    Mechanical room,    f.    Maintenance shop,    g.    Yard equipment storage area.    60.10(2) Dietetic service area.      a.    Detailed layout plans and specifications of equipment shall be submitted to the department for review and approval before the new construction, alterations, or additions to existing kitchens begin. (III)    b.    The construction and installation of equipment of the dietetic service area shall comply with or exceed the minimum standards set forth in the “Food Service Manual” (DHEW Publication No. (FDA) 78-2081, 1976 Edition). (III)     c.    The dietetic service area shall provide food serving facilities for residents and staff outside the food preparation area. (III)    d.    The dishwashing area shall be provided with mechanical dishwashing equipment. Either conventional or chemical dishwashing equipment may be used. (III)    (1)   Where conventional dishwashing equipment is used, the hot water system shall be designed to supply hot water at 110° Fahrenheit to 120° Fahrenheit. (III)    (2)   A three-compartment pot and pan sink shall be provided for ware washing that provides and maintains hot water at 110° Fahrenheit to 115° Fahrenheit for washing and 170° Fahrenheit to 180° Fahrenheit for sanitizing, or a two-compartment sink shall be provided for soaking and washing utensils, with easy access to a dish machine that must be large enough for sanitizing all sizes of utensils used. (III)    (3)   Machines (single-tank stationary rack, door-type machines and spray-type glass washers) using chemicals for sanitation may be used, provided that:    1.   The temperature of the wash water shall not be less than 120° Fahrenheit. (III)    2.   Chemicals added for sanitation purposes shall be automatically dispensed. (III)    3.   The wash water shall be kept clean. (III)    4.   Utensils and equipment shall be exposed to the final chemical sanitizing rinse in accordance with manufacturers’ specifications for time and concentration. (III)    5.   The chemical sanitizing rinse water temperature shall be not less than 75° Fahrenheit nor less than the temperature specified by the machine’s manufacturer. (III)    6.   Chemical sanitizers used shall meet the requirements of 21 CFR 178.1010. (III)    7.   A test kit or other device that accurately measures the parts per million concentration of the solution shall be available and used. (III)    e.    The dietetic service area shall be designed to provide a separation of the clean and dirty areas and to eliminate intermingling of the two types of activities. Food preparation and service areas are regarded as clean areas. (III)    f.    A hand-washing sink shall be provided in the dietetic service area. In facilities licensed for eight beds or fewer, the sink shall be adjacent or convenient to the dietetic service area. (III)    g.    There shall be refrigerated storage for at least a three-day supply of perishable food. (III)    h.    There shall be available storage for at least a seven-day supply of staple food. (III)    i.    Provisions for maintaining sanitary waste disposal and storage shall be provided on the premises. (III)    j.    Where meals are provided by a health care facility or by a commercial food service, the preparation, storing and serving of the food and the utensil sanitizing procedures shall meet the requirements of these rules. (III)    k.    Mechanical ventilation shall be provided in food storerooms to maintain temperatures and humidity at a level appropriate for the type of food being stored. (III)     60.10(3) Janitor’s closet.      a.    A janitor’s closet shall be provided for storage of housekeeping supplies and equipment, including a floor receptor or service sink. (III)     b.    The door to the janitor’s closet shall be equipped with a lock. (III)    c.    Locked storage shall be provided for chemicals. (III)    60.10(4) Laundry area.      a.    In the laundry area, a work flow pattern shall be established in which soiled linen is not transported through the clean area to the soiled area. Two distinct areas physically separated, not necessarily by a wall, are required. (III)     b.    A hand-washing sink shall be located in the laundry area. In facilities licensed for 15 beds or fewer, a hand-washing sink located adjacent to the laundry area may meet this requirement. (III)    c.    Where linen is processed onsite, the following shall be provided (III):    (1)   A clean, dry, well-lighted laundry processing room with equipment sufficient to process seven days’ needs within the workweek.     (2)   A soiled linen holding area.     (3)   A clean linen area.     (4)   Linen cart storage.     (5)   Lockable storage for laundry supplies.     (6)   One janitor’s closet or alcove in the immediate vicinity of the laundry.    d.    The laundry room in any facility not using off-site processing but serving more than 20 residents shall contain no less than 125 square feet of available floor space. (III)     e.    Where linen is processed off the site, the following shall be provided (III):    (1)   Soiled linen holding room.     (2)   Clean linen receiving, holding, inspection, and storage area.     60.10(5) General storage areas.      a.    General storage areas totaling not less than 10 square feet per bed shall be provided. Storage areas are not required to be located in the same area. (III)    b.    The equipment storage room space may be included in this general area, but is not required to be located in the same area. (III)    c.    Storage areas for linens, janitor’s supplies, sterile nursing supplies, activity supplies, library books, office supplies, kitchen supplies, and mechanical plant accessories shall not be included as part of the general storage area and are not required to be located in the same area. (III)    d.    Thirty percent of the general storage area may be provided in a building outside the facility, readily and easily accessible by the personnel. (III)    60.10(6) Mechanical, electrical, and maintenance areas.  The following areas shall be provided (III):    a.    Boiler room or mechanical room and electrical equipment room. (III)    (1)   These rooms may be used for noncombustible material storage.    (2)   Any noncombustible material shall not be stored close to or hinder access to any fuel-fired equipment or electrical panels.     (3)   These areas shall not be included in calculating the 10 square feet per bed for general storage areas, as required under paragraph 60.10(5)“a.”     b.    Yard equipment storage may be provided in a separate room or building for yard maintenance equipment and supplies. This shall not be included in the general storage area.     c.    No portable fuel-operated equipment shall be housed inside a facility unless it is separated by at least a two-hour fire separation approved by the state fire marshal’s office.     d.    Rooms containing heating or cooling equipment shall be locked.

    481—60.11(135C) Administration and staff area.  The size of an administration and staff area depend upon the needs of the facility. An administration and staff area shall contain the following rooms or areas (III):
    1. An administration office.
    2. An area containing storage for office equipment and supplies. This area shall be secure and contain work space for charting and record storage and may contain medication storage.
    3. A lounge shall be provided for staff. Toilet rooms with sink and toilet shall be provided for staff.
    4. Closets or compartments for the safekeeping of coats and personal effects of staff.

    481—60.12(135C) Public area.  A public area shall contain a public telephone accessible to the residents within the facility to make personal calls. It shall also contain a separate bathroom for the public, including a toilet and sink. (III)

    481—60.13(135C) Specialized unit or facility for persons with chronic confusion or a dementing illness (memory care unit or facility).  A memory care unit or facility shall be designed in accordance with the standards set forth in 661—Chapter 201. The following provisions shall also apply (III):    60.13(1)   A memory unit or facility shall be designed so that residents, staff, and visitors will not pass through the unit in order to reach exits or other areas of the facility unless in an emergency.     60.13(2)   If the unit or facility is to be a locked unit or facility, all locking devices shall meet the requirements of the state fire marshal. If the unit or facility is to be unlocked, a system of security monitoring is required.    60.13(3)   The outdoor activity area for the unit or facility shall be secure. Nontoxic plants shall be used in the secured outdoor activity area.     60.13(4)   There shall be no steps inside the memory care unit or facility.     60.13(5)   Dining and activity areas for the unit or facility shall be located within the unit or facility and shall not be used as the primary dining or activity area by other facility residents.

    481—60.14(135C) Elevator requirements.  All residential care facilities where resident facilities are located on other than the first floor shall have one or more electric or electrohydraulic elevators, as required. For purposes of this requirement, resident facilities include, but are not limited to, diagnostic, recreation, activity, resident dining, and therapy rooms or additional resident bedrooms. The first floor is that floor first reached from the main front entrance. Elevators, where installed, shall comply with the division of labor rules as promulgated in Iowa Code chapter 89A and 875—Chapters 71 to 73. (III)       These rules are intended to implement Iowa Code section 135C.14.
    ARC 6909CInspections and Appeals Department[481]Notice of Intended Action

    Proposing rule making related to boarding homes and providing an opportunity for public comment

        The Inspections and Appeals Department hereby proposes to amend Chapter 66, “Boarding Homes,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 10A.104 and 135O.2.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 10A.104, 17A.7(2) and 135O.2.Purpose and Summary    The Department completed a comprehensive review of Chapter 66 in accordance with the requirement in Iowa Code section 17A.7(2). This proposed rule making clarifies current practices, updates citations, and removes unnecessary text.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 481—Chapter 6.Public Comment    Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Department no later than 4:30 p.m. on March 14, 2023. Comments should be directed to:Ashleigh Hackel Iowa Department of Inspections and Appeals Lucas State Office Building 321 East 12th Street Des Moines, Iowa 50319 Email: ashleigh.hackel@dia.iowa.govPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Amend rule 481—66.1(83GA,SF484), parenthetical implementation statute, as follows:

    481—66.1(83GA,SF484135O) Definitions.  

        ITEM 2.    Adopt the following new definition of “Assistance with activities of daily living” in rule 481—66.1(83GA,SF484):        "Assistance with activities of daily living" does not mean routine, total dependence on staff for the performance of activities of daily living or nursing care.

        ITEM 3.    Amend rule 481—66.1(83GA,SF484), definition of “Probable cause,” as follows:        "Probable cause" means a reasonable suspicion to believe that a boarding home is in violation of 2009 Iowa Acts, Senate File 484, sections 3 to 6 [Iowa Code chapter 135O],Iowa Code chapter 135O or licensing or other regulatory requirements of the department of human services, department of inspections and appeals, or department of public health; or that dependent adult abuse of any individual living in the boarding home has occurred or is occurring.

        ITEM 4.    Amend rule 481—66.2(83GA,SF484) as follows:

    481—66.2(83GA,SF484135O) Registration of boarding homes.      66.2(1)   A boarding home shall file a statement ofcomplete and submit to the department the boarding home registration with the departmentform located on the department’s website within 60 days of commencing operations.    a.    Boarding homes in operation on January 1, 2010, or after shall register with the department within 60 days of commencing operations.     b.    Boarding homes in operation prior to January 1, 2010, shall register with the department no later than March 1, 2010.    66.2(2)   The statement of registrationform may be submitted electronically via an Internet-based systemthe department’s website; by mail to the Department of Inspections and Appeals, Health Facilities Division, Lucas State Office Building, Third Floor, 321 E. 12th Street, Des Moines, Iowa 50319-0083; or by fax to (515)242-5022.    66.2(3)   The registrant shall include, at a minimum, the following information on the statement of registration:    a.    Name(s) of the owner, lessee, and manager, as applicable;    b.    Number of rooms available for rent and maximum number of tenants for the entire boarding home;    c.    Location of the boarding home, including street address, city, and ZIP code;    d.    Contact information for the owner, lessee, and manager, including telephone number, mailing address, and E-mailemail address;    e.    Occupant loads as calculated in accordance with the building and fire codes as adopted by the applicable jurisdictions;     f.    Whether the building is equipped with a fire sprinkler system;    g.    Whether the building is equipped with a centralized kitchen in which meals are prepared; and    h.    Name of the responsible party. The department will send all notices regarding the boarding home to the responsible party.    66.2(4)   Failure to file a statement of registration in a timely manner may result in a penalty of no more than $500.    66.2(5)   The boarding home shall notify the department of any changes to the information on the initial statement of registration within 30 days of when the change occurs, including cessation of operation. Changes shall be submitted in the manner described in subrule 66.2(2).

        ITEM 5.    Amend rule 481—66.3(83GA,SF484) as follows:

    481—66.3(83GA,SF484135O) Occupancy reports.  See rule 481—66.1(83GA,SF484) for the definition of “known.”    66.3(1)   Each boarding home shall file an occupancy report annuallyupdate its boarding home registration form with the departmentannually between January 1 and January 31 in the same manner as provided in subrule 66.2(2).    a.    For new boarding home registrations, an occupancy report shall be filed along with the initial statement of registration. The occupancy report that accompanies the initial statement of registration shall provide information as of the last day of the preceding month.     b.    After the initial registration, registrants shall submit a completed occupancy report by January 31 of each year with information current as of December 31 of the preceding year.    66.3(2)   The occupancy report may be submitted electronically via an Internet-based system; by mail to the Department of Inspections and Appeals, Health Facilities Division, Lucas State Office Building, Third Floor, 321 E. 12th Street, Des Moines, Iowa 50319-0083; or by fax to (515)242-5022.    66.(3) 66.3(2)   The owner or lessee shall include, at a minimum, the following information on the occupancy report. If the owner or lessee is unable to answer the question because the owner or lessee does not have such information, the owner or lessee shall indicate such on the report.    a.    Current number of rooms occupied;     b.    Current number of tenants residing in the boarding home;    c.    If applicable, date of last fire inspection and any deficiencies noted and how such deficiencies have been corrected;    d.    If known, the number of tenants receiving Medicaid;    e.    If known, the number of tenants receiving food assistance benefits (EBT cards);    f.    If known, the number of tenants receiving other types of state assistance and the types of state assistance received;    g.    Types of services provided or arranged by the owner, lessee, manager or an affiliated person or entity; frequency of services by type; and the name and contact information of the person or entity providing or arranging such services;    h.    Any assistance or supervision provided to tenants by the owner, lessee or manager;    i.    Method of rent payments, such as cash, check, or state assistance; and     j.    If known, the number of tenants with a power of attorney, guardian or conservator.

        ITEM 6.    Amend rule 481—66.4(83GA,SF484) as follows:

    481—66.4(83GA,SF484135O) Complaintsand investigations.      66.4(1) Complaints.      a.    The process for filing a complaint is as follows:    (1)   Any person with a concern regarding the operation of a boarding home may file a complaint with the Department of Inspections and Appeals, Complaint/Incident Bureau, Lucas State Office Building, Third Floor, 321 E. 12th Street, Des Moines, Iowa 50319-0083, or bydepartment in writing, by use of the complaint hotline, telephoneat 1-877-686-0027or through the department’s website at dia.iowa.gov. The Web site address is https://dia-hfd.iowa.gov/DIA_HFD/Home.do.    (2)   When the nature of the complaint is outside the department’s authority, the department shall forward the complaint to the appropriate investigatory entity.    (3)   If other state agencies receive a complaint that relates to boarding homes, the agencies shall forward the complaint to the department.    b.    The department shall act on anonymous complaints unless the department determines that the complaint is intended to harass the boarding home or is without a reasonable basis. If the department, upon preliminary review, determines that the complaint is intended to harass or is without a reasonable basis, the department may dismiss the complaint.    66.4(2) Content of complaint reports.  The complaint shall include as much of the following information as possible: the complainant’s name, address and telephone number; the complainant’s relationship to the boarding home and tenant; and the reason for the complaint. The complainant’s nameand identifying information shall be confidential information and shall not be released by the department.    66.4(3) Time framesInitiation of investigations and time frames for investigation of complaints.  Upon receipt of a complaint made in accordance with this rule, the department shall make a preliminary review of the complaint to determine if probable cause exists to investigate the complaint. If probable cause exists, anInvestigations may be initiated because of a complaint or other information received by the department. If the department determines there is probable cause to believe that a boarding home is an unregistered boarding home or that a registered boarding home is not in compliance with applicable law, an investigation shall be initiated. The department shall evaluate whether other local, state, or federal agencies, including law enforcement, should be provided a referral or included in the investigation. An investigation of the boarding home shall be initiated, as provided in rule 481—66.5(83GA,SF484), within 45 working days. If there is the likelihood of immediate danger, the department shall initiate an investigation of the boarding home within 2two working days of receipt of the complaint. If there is an allegation of harm, the department shall initiate an investigation of the boarding home within 20 working days of receipt of the complaint.    66.4(4) Submission of all complaints to core multidisciplinary team.  A copy of all complaints and the department’s initial determination whether to investigate the complaint shall be sent to the core multidisciplinary agencies: the department of human services, the state fire marshal of the department of public safety, and the department of justice. If the department has determined not to initiate an investigation, the members of the core multidisciplinary team may recommend the initiation of, and the department shall initiate, an investigation.    66.(5) 66.4(4) Standard for determining whether a complaint is substantiated.  The department shall apply a preponderance of the evidence standard in determining whether a complaint is substantiated.    66.(6) 66.4(5) Notification of the boarding home or alleged boarding home of results of investigation.  The department shall notify the boarding home or alleged boarding home, in writing, of the final report of the complaint investigation.    66.(7) 66.4(6) Notification of the complainant of results of investigation.  The complainant, if known, shall be notified of the final findings of a complaint investigation. The complainant, if known, shall also be notified if the department determines not to investigate a complaint and shall receive an explanation of the department’s decision.

        ITEM 7.    Rescind and reserve rule 481—66.5(83GA,SF484).

        ITEM 8.    Amend rule 481—66.6(83GA,SF484) as follows:

    481—66.6(83GA,SF484135O) Penalties.  The director shall consider the following when determining whether to assess a penalty for violation of 2009 Iowa Acts, Senate File 484, sections 3 to 6 [Iowa Code chapter 135O],Iowa Code chapter 135O or rules adopted pursuant to 2009 Iowa Acts, Senate File 484, sections 3 to 6 [Iowa Code chapter 135O]thereunder, and when determining the amount of the penalty:
    1. The duration of the noncompliance;
    2. The nature of the noncompliance;
    3. The response of the owner or lessee upon notification of noncompliance;
    4. The number of tenants affected; and
    5. The impact to the tenants.

        ITEM 9.    Amend rule 481—66.7(83GA,SF484) as follows:

    481—66.7(83GA,SF484135O) Public and confidential information.      66.7(1) Public disclosure.  The following records are open and available for inspection:    a.    Registration forms and accompanying materials;    b.    Final findings of investigations, unless otherwise confidential by law, such as investigative findings of the division of criminal investigation of the department of public safety or dependent adult abuse investigations; and    c.    Official notices of penalties.    66.7(2) Confidential information.  Confidential information includes the following:    a.    Information that does not comprise a final finding resulting from a complaint investigation or other investigation of the multidisciplinary team and its individual members;    b.    Namesand identifying information of all complainants;    c.    Names of tenants of a boarding home, identifying personal or medical information, copies of documentation appointing a legal representative, and the address of anyone other than an owner or lessee; and    d.    Social security or employer identification numbers (EIN).    66.7(3) Redaction of confidential information.  If a record normally open for inspection contains confidential information, the confidential information shall be redacted prior to an agency’s providing the record for inspection.    66.7(4) Searchable database of all registered boarding homes.  The department shall maintain a searchable database of all registered boarding homes on the health facilities division’s Web sitewebsite at https://dia-hfd.iowa.gov/DIA_HFD/Home.dodia-hfd.iowa.gov.

        ITEM 10.    Amend 481—Chapter 66, implementation sentence, as follows:       These rules are intended to implement 2009 Iowa Acts, Senate File 484Iowa Code chapter 135O.
    ARC 6906CPharmacy Board[657]Notice of Intended Action

    Proposing rule making related to Controlled Substances Act registration and providing an opportunity for public comment

        The Board of Pharmacy hereby proposes to amend Chapter 10, “Controlled Substances,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 124.301.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 124.302.Purpose and Summary    This proposed rule making would authorize the Board, on a case-by-case basis, to issue a Controlled Substances Act registration to a business location when it would be impractical to require each individual practitioner who administers or dispenses controlled substances to separately register at the business location. Examples of such business locations include, but is not limited to, ambulatory surgical centers, dialysis centers, federally qualified health centers, and standalone clinics associated with a hospital system.Fiscal Impact    This rule making has minimal fiscal impact to the State of Iowa. The number of business locations that would obtain a registration, at $90 for a two-year registration, is unknown but expected to be fewer than ten per year.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 657—Chapter 34.Public Comment    Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Board no later than 4:30 p.m. on March 14, 2023. Comments should be directed to:Sue Mears Board of Pharmacy 400 S.W. 8th Street, Suite E Des Moines, Iowa 50309 Email: sue.mears@iowa.govPublic Hearing    No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

        ITEM 1.    Adopt the following new rule 657—10.4(124):

    657—10.4(124) Who may register.  On a case-by-case basis, the board may issue a registration to a business location not listed in rule 657—10.3(124) if it would be impractical to require each individual practitioner who administers or dispenses controlled substances to separately register at the business location. Examples of business locations that may be eligible for a registration pursuant to this rule include, but are not limited to, ambulatory surgical centers as defined in Iowa Code section 147.163, dialysis centers, federally qualified health centers, and standalone clinics associated with a hospital system.
    ARC 6912CPublic Employment Relations Board[621]Notice of Intended Action

    Proposing rule making related to general procedures, elections, collective bargaining and providing an opportunity for public comment

        The Public Employment Relations Board (PERB) hereby proposes to amend Chapter 2, “General Practice and Hearing Procedures,” Chapter 3, “Prohibited Practice Proceedings,” Chapter 6, “Negotiations and Negotiability Disputes,” Chapter 7, “Impasse Procedures,” Chapter 8, “Internal Conduct of Employee Organizations,” Chapter 12, “Public Records and Fair Information Practices (Uniform Rules),” Chapter 13, “Mediators,” Chapter 14, “Arbitrators”; rescind Chapter 15, “Retention and Recertification Elections,” and adopt a new Chapter 15 with the same title; and amend Chapter 16, “Electronic Document Management System,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 20.6.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 20.Purpose and Summary    This Notice of Intended Action proposes to amend rules relating to general procedures of the agency, impasse procedures, bargaining unit determination and representative certifications, retention and recertification elections, elections fees, filing of electronic documents including certified employee organization annual reports, collective bargaining agreements, mediators, and arbitrators. The agency proposes the following amendments after feedback, internal review, and implementation of new data management systems.    Item 1 strikes a cross-reference to a subrule that is proposed to be rescinded in ARC 6913C, IAB 2/22/23.    Item 2 removes the requirement that the Governor be included in service of notices since the Department of Administrative Services is already included in services. Serving the Office of the Governor is redundant. Item 2 also requires PERB to serve the Executive Director of the Board of Regents if the Board of Regents is a party to a filing. Due to its size, scope, and structure, the Board of Regents requested to be added to service of notices.    Item 3 gives the agency the ability to utilize a court reporter and pass fees on to the nonprevailing party. This practice has already been a requirement for certain types of cases under PERB’s jurisdiction, and this amendment gives PERB and its practitioners the option to use it for all cases. This amendment also creates uniformity in PERB’s procedures.    Item 4 adds a requirement that parties requesting a preliminary ruling for a negotiability dispute provide a concise explanation of the request and also includes clarification that the issue may be delegated by PERB to an administrative law judge. This provides flexibility and efficiencies while preserving the appeal rights of the requestors.    Item 5 restructures rule 621—6.6(20) and adds a subrule enforcing employer upload of a contract in accordance with Iowa Code section 20.29(2). This amendment requires employers to signify a unit as public safety or transit unit upon upload. The employee representative and the agency will be notified upon designation of public safety or transit status. If both parties agree, the agency will take official notice. Transit units are not subject to retention and recertification elections.    Item 6 changes the method of request for mediations services from email to secure upload PERB (suPERB) and requires requesting parties to indicate whether the parties intend to utilize mediation services or are using the impasse request as a means to notify the agency that contract negations have commenced. Some employee organizations prefer to notify the agency that contract negotiations have commenced as is required in private sector collective bargaining governed by National Labor Relations Board (NLRB). This rule gives such employee organizations representing both private and public employees the option to maintain consistent internal compliance processes and notifies the assigned mediator that, while assigned, the mediator is not likely to be utilized.    Item 7 moves the filing of arbitration requests from email to suPERB.    Items 8 and 9 clarify that the filings relating to objections shall be filed in the electronic document management system (EDMS). These are cases that are likely to require legal attention and therefore should be entered into the agency’s EDMS, which is intended for legal case and document management.    Items 10 through 14 move the filing of employee organization registration reports, constitutions, bylaws, amendments to said documents, and annual reports to suPERB.    Item 15 clarifies that, while other internal documents for employee organizations will be filed in suPERB, documents relating to trusteeships will be filed in EDMS.    Items 16 and 17 clarify storage of PERB documents and move the agency away from paper files.    Item 18 eliminates the PERB training requirement for mediators. The requirements imposed on mediator applicants for PERB approval are sufficient. Further, no one has sought training in recent years, PERB has not utilized ad hoc mediators in several years, requests for impasse services have decreased 62 percent, mediated settlements have decreased 61 percent, and, of the mediations currently being requested, roughly 70 percent are from unions who are simply putting the agency on notice. The Federal Mediation and Conciliation Service (FMCS) provides mediation services for free.     Item 19 updates a cross-reference to reflect the change made in Item 18.    Item 20 eliminates the PERB training requirement for arbitrators. The requirements imposed on arbitrator applicants for PERB approval are sufficient. No one has sought training in recent years, and the requests for arbitrator services have reduced 80 percent since 2016.    Item 21 updates a cross-reference to reflect the change made in Item 20.    Items 22 and 23 reduce the fee for arbitrators listed on PERB’s roster and streamline the process to maintain inclusion on the list. Chapter 14 retains a quality control component. It is unnecessary and burdensome to force an arbitrator who has previously been approved and presented no quality control issues to reapply to PERB for inclusion on the roster. The fee and fee schedule changes make inclusion on the roster for previously approved arbitrators more efficient and make PERB monitoring of the list simpler.    Item 24 updates a cross-reference to reflect the change made in Item 20.    Item 25 rescinds and replaces Chapter 15. New language fixes dates for retention and recertification elections and attempts to provide clarity to all parties pertaining to which bargaining units will be subject to retention and recertification elections with the maximum amount of notice. With a consistent and streamlined contract upload process through suPERB, parties will know with certainty which bargaining unit will be required to vote in any given year. Disallowing the practice of extensions and altering of election dates removes a great deal of confusion and makes the chapter significantly easier to administer.     Many employers fail to submit a list as required for retention and recertification elections, resulting in an automatic recertification of a bargaining unit. While the employer and employee representative may very well agree that a retention and recertification election is unnecessary at best, it remains current Iowa law. In order to efficiently administer retention and recertification elections, PERB believes it is necessary to provide clarity. Further, the clarifications provided in the new Chapter 15, along with the completion and use of suPERB for filing, gives the employers and employee organizations significantly more time to work on voter lists through suPERB in advance of the dissemination of the Notice of Intent to Conduct an Election on August 1.    Fees will no longer be fixed based on advance forecasted voter turnout. Voter turnout for elections where the bargaining units are State of Iowa employees have dropped to half of their potential turnout. The drop can be attributed to missing contracts, failure to upload contracts, extensions, and failure to turn in voter lists. With clarification and better technology, PERB can now determine the election fee earlier and, with this ability, PERB can now codify a fee structure that will hold the per voter fee paid by the employee organization to the lowest possible assessment. While some employee organizations whose units consistently extended or failed to turn in lists may now be required to pay more, other employee organizations with large units that do not escape biannual elections will likely see a decrease in the aggregate amount they are assessed.    The requirement of employers to participate in the dissemination of notices has been removed. There is no empirical evidence that suggests employer postings or transfer of information impacts the outcome in the election. Retention and recertification elections are, in large part, a question of the relationship between the bargaining unit and employee organization. While it is necessary for employers to provide a list to employee organizations, a requirement that the employer has regardless of an election, the employers do not need to have a role in the election outside of the determination of the list. Employer posting of notices creates confusion and friction and potential liability between employee organizations and employers. In return, the placement of the notices has a negligible impact on the elections, at best. The language is permissive, and objections to the elections are still available.     Employees in bargaining units with transit employees receiving federal funding are not subject to retention and recertification election. This change allows PERB to designate and remove transit units from recertification elections.    Item 25 strikes language referring to Chapter 8. All documents relating to internal conduct other than documents pertaining to the establishment of trusteeships will be filed in suPERB. Documents related to trusteeships will be filed in EDMS.    Items 26 and 27 define “EDMS” and “suPERB” and provide general guidelines for usage.    Item 28 clarifies that Chapter 16 applies to EDMS.    Item 29 rescinds the requirement for the placement of a publicly accessible terminal at the agency’s office. There is no demonstrated usage or demand by the public; PERB staff have the capacity to assist members of the public if necessary.    Item 30 adds instructions and guidelines for the registration and usage of suPERB.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    These rules do not provide for a waiver of their terms but are instead subject to the agency’s general waiver provisions found in rule 621—1.9(17A,20).Public Comment     Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by PERB no later than 4:30 p.m. on March 24, 2023. Comments should be directed to: Erik Helland Public Employment Relations Board Jessie Parker Building, Suite 1B 510 East 12th Street Des Moines, Iowa 50319 Phone: 515.281.4414 Email: iaperb@iowa.govPublic Hearing     A public hearing at which persons may present their views orally or in writing will be held as follows: March 20, 2023 10 a.m. to 12 noonVia videoconference     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.     Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the agency at iaperb@iowa.gov. The agency will then supply the link to attend the videoconference. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Amend rule 621—2.4(20) as follows:

    621—2.4(20) Intervention and additional parties.  Any interested person may request intervention in any proceeding before the public employment relations board. An application for intervention shall be in writing, except that applications made during a hearing may be made orally to the hearing officer, and shall contain a statement of the reasons for such intervention. When an application for intervention is filed regarding a petition for bargaining representative determination, 621—subrules 4.3(2), 4.4(4), 5.1(2), 5.5(2), and 5.5(4) shall apply.Where necessary to achieve a more proper decision, the board or administrative law judge may, on its own motion or the motion of any party, order the bringing in of additional parties. When so ordered, the board shall serve upon such additional parties all relevant pleadings and allow such parties a reasonable time to respond thereto where appropriate.

        ITEM 2.    Amend paragraph 2.15(1)"d" as follows:    d.    Upon the state of Iowa, or board, commission, council, office or agency thereof, by serving the governor or the director of the department of administrative servicesor the executive director of the board of regents.

        ITEM 3.    Adopt the following new rule 621—2.25(20):

    621—2.25(20) Costs of certified shorthand reporters and transcripts.      2.25(1) Initial payment.  The agency may arrange for a certified shorthand reporter to report the contested case hearing and request that an original transcript of the hearing be prepared by the reporter for the agency’s use. The agency initially shall pay the reporter’s reasonable compensation for reporting the hearing and producing the agency-requested transcript.    2.25(2) Taxation as costs.  The cost of reporting and of the agency-requested transcript shall be taxed as costs against the nonprevailing party or parties although the presiding officer, or the board on appeal or review of a proposed decision and order, may apportion such costs in another manner if appropriate under the circumstances.    2.25(3) Payment of taxed costs.  Following final agency action in a case, the agency will prepare and serve a bill of costs upon the party or parties against whom the costs have been taxed. Those parties shall, within 30 days of such service, remit to the agency the amount specified in the bill of costs. Sums remitted to the agency shall be considered repayment receipts as defined in Iowa Code section 8.2.

        ITEM 4.    Amend subrule 6.3(3) as follows:    6.3(3) Preliminary ruling.  The agency will give priority to a petition for expedited resolution of a negotiability dispute. Parties maywill file briefsinformal position statements no longer than ten pages in support of their positions within the time specified by the agency, and the agency may set the matter for oral argument. The agencyor appointed administrative law judge may issue a preliminary ruling, without analysis, that the proposal is mandatory, permissive, or prohibited.

        ITEM 5.    Amend rule 621—6.6(20) as follows:

    621—6.6(20) Filing of agreement.      6.6(1) Copy of agreement.  A public employer shall file a copy of the collective bargaining agreement entered into between the public employer and a certified employee organization and made final under Iowa Code chapter 20. The public employer shall file the copy within ten days of the date on which the agreement is entered into.    6.6(2) Failure to upload an agreement.  If an employer fails to upload a finalized collective bargaining agreement within ten days of expiration of the previous collective bargaining agreement, the agency will order an in-person show cause hearing at the agency. The agency may grant appropriate accommodation in the form of more time or take official notice of failure to comply with subrule 6.4(1) and Iowa Code section 20.29(2).    6.6(3) Transit units.  When uploading a contract, an employer will designate a unit as public safety or transit if appropriate. The agency and employee organization will receive notification of the designation. Upon agreement from both parties or absent an agreement or ruling from the agency in a contested hearing, the agency will designate the unit appropriately in suPERB.

        ITEM 6.    Amend subrule 7.3(1) as follows:    7.3(1) Request for mediation.  Either party to an impasse may email to the agency a request to appoint a mediator to the impasserequest that the agency assign a mediator by requesting mediation services. Requests for mediation services shall be uploaded through suPERB. A copy of the request for mediation shall be emailed to the agency and shall, in addition to theThe request for mediation,must contain:    a.    The name, address, and telephone number of the requesting party, and the name, address, telephone number, and email address of its bargaining representative or of the chairperson of its bargaining team.    b.    The name, address, and telephone number of the opposing party to the impasse, and the name, address, telephone number, and email address of its bargaining representative or of the chairperson of its bargaining team.    c.    A description of the collective bargaining unit involved and the approximate number of employees in the unit.    d.    A statement indicating whether the public employer of the unit involved is subject to the budget certification requirements of Iowa Code section 24.17 and, if the public employer is not subject to those requirements, a statement of the date upon which the public employer’s next fiscal or budget year commences.    e.    A statement indicating whether the bargaining unit is a public safety or non-public safety unit as specified by Iowa Code section 20.3 and rule 621—6.4(20).    f.    A concise and specific listing of the negotiated items upon which the parties have reached impasse.    g.    A statement from the requesting party indicating whether the parties anticipate utilizing mediation services or the parties are putting PERB on notice that the employer and employee have commenced bargaining for a new contract.

        ITEM 7.    Amend subrule 7.5(2) as follows:    7.5(2) Form and contents of request.  The request for arbitration shall be emaileduploaded to the agencythrough suPERB and shall include the name, address, email address, and signature of the requesting party and the capacity in which the requesting party is acting.

        ITEM 8.    Adopt the following new subrule 7.6(5):    7.6(5) Objections.  Objections and relevant documents to the objection shall be filed in the electronic document management system (EDMS).

        ITEM 9.    Adopt the following new subrule 7.7(7):    7.7(7) EDMS.  Negotiability disputes concerning state employees and relevant documents to the objection shall be filed in EDMS.

        ITEM 10.    Amend rule 621—8.1(20) as follows:

    621—8.1(20) Requirements.  Before the agency certifies an employee organization as the exclusive representative of a bargaining unit, the employee organization shall electronically fileupload in suPERB a registration report, constitution and bylaws, and an annual report. Once certified, the certified employee organization shall thereafter file an annual report as required by rule 621—8.4(20) and a registration report and constitution and bylaws whenever its constitution or bylaws are amended as required by rules 621—8.2(20) and 621—8.3(20).

        ITEM 11.    Amend subrule 8.2(3) as follows:    8.2(3) Method of filing.  The registration report shall be electronically fileduploaded in suPERB pursuant to 621—Chapter 16.

        ITEM 12.    Amend subrule 8.3(3) as follows:    8.3(3) Method of filing.  The constitution and bylaws shall be electronically fileduploaded in suPERB pursuant to 621—Chapter 16.

        ITEM 13.    Amend subrule 8.4(2) as follows:    8.4(2) Form and content.  The annual report shall be on the form prescribed by the boardand uploaded in suPERB and shall contain:    a.    The names, addresses, e-mail addresses, and telephone numbers of the organization, any parent organization or organizations with which it is affiliated, the principal officers and all representatives.    b.    The name, address, e-mail address, and telephone number of its local agent for service of process.    c.    A general description of the public employees the organization represents or seeks to represent.    d.    The amounts of the initiation fee and monthly dues members must pay.    e.    A pledge, in a form prescribed by the board, that the organization will comply with the laws of the state and that it will accept members without regard to age, race, sex, religion, national origin or physical disability, as provided by law.    f.    A financial report and audit.    (1)   The financial report shall contain, at a minimum, the following information: the cash balance from the previous year; a listing of sources and amounts of income; an identified listing of disbursements; and a closing balance. For the first annual report filed by an employee organization, the financial report shall reflect the last completed fiscal year of the organization or, in the case of a new organization, the last completed quarter or quarters of the current fiscal year. For annual reports filed mid-fiscal year with petitions for amendment of certification, the financial report shall reflect the last completed quarter or quarters of the current fiscal year.    (2)   The audit shall consist of a statement that the financial report has been reviewed and found to be true and accurate. The audit must be signed by an auditing committee or a person or persons who hold no office in the employee organization and who did not prepare the financial report.    g.    The name(s) of the person(s) required to be bonded pursuant to rule 621—8.5(20), the amount of the bond, and the name of the corporate surety company that issued the bond(s).

        ITEM 14.    Amend subrule 8.4(3) as follows:    8.4(3) Method of filing.  The annual report shall be electronically fileduploaded in suPERB pursuant to 621—Chapter 16.

        ITEM 15.    Amend subrule 8.6(4) as follows:    8.6(4) Method of filing.  The application and any required reports shall be electronically filedin the electronic document management system (EDMS) pursuant to 621—Chapter 16.

        ITEM 16.    Amend rule 621—12.12(17A,20,22) as follows:

    621—12.12(17A,20,22) Personally identifiable information.  This rule describes the nature and extent of personally identifiable information which is collected, maintained, and retrieved by the agency by personal identifier in record systems as defined in rule 621—12.1(17A,20,22). Unless otherwise stated, the authority for this agency to maintain the record is provided by Iowa Code chapter 20, the statutes governing the subject matter of the record, and the enabling statutes of the agency, where applicable. The record systems maintained by the agency are:    12.12(1)   Prohibited practice complaint case files. These files contain information which pertains to the alleged violation of Iowa Code chapter 20. A person, employee organization or public employer may file the documents contained in this type of case. Case files may include pleadings, briefs, notices, rulings, decisions, orders, exhibits, transcripts, docket sheets, general correspondence, attorneys’ notes, settlement offers, memoranda, and research materials. Cases contain personal information of the representatives and may contain personal information if the complainant or respondent is an individual. Further personal information may be included in testimony, exhibits, and other documents. Cases filed prior to January 1, 2015, are contained on the agency’s network. Cases filed after January 1, 2015, are contained within the agency’s electronic document management system. If the case went to hearing, the hearing may have been recorded by mechanical means, and a copy of the recording may be available. The files are maintained by the agency and are indexed by the case number. The files may contain materials which are confidential as attorney work product or contain settlement offers and mediators’ documents. Some materials are confidential under other applicable provisions of law. Copies of documents or hearing recordings filed in these cases may be obtained through the agency or the agency’s electronic document management system.    12.12(2)   Bargaining unit determination and representative certification case files. These files contain information which pertains to the establishment of appropriate bargaining units, conduct of secret ballot elections and monitoring of the merger, and affiliation and disaffiliation of certified employee organizations. A person, employee organization or public employer may file the documents contained in these types of cases. Case files may include pleadings, briefs, tally of ballots, notices, rulings, decisions, orders, exhibits, transcripts, docket sheets, general correspondence, attorneys’ notes, settlement offers, memoranda, research materials, and investigation materials. Cases contain personal information of the representatives and may contain personal information if the petitioner or respondent is an individual. Further personal information may be included in transcript testimony, exhibits, and other documents. Cases filed prior to January 1, 2015, are contained on the agency’s network. Cases filed after January 1, 2015, are contained within the agency’s electronic document management system. If the case went to hearing, the hearing may have been recorded by mechanical means, and a copy of the recording may be available. The files are maintained by the agency and are indexed by the case number. Further personal information may be included in testimony and exhibits. The files may contain materials which are confidential as attorney work product, shows of interest, settlement offers and mediators’ notes. Some materials are confidential under other applicable provisions of law. Copies of documents or hearing recordings filed in these cases may be obtained through the agency or the agency’s electronic document management system.    12.12(3)   Retention and recertification election case files. These files contain information which pertains to the conduct of a retention and recertification election. A person, employee organization or public employer may file the documents contained in this type of case. Case files include pleadings, notices, voter lists, tally of ballots, orders, challenges, and objections. Cases contain personal information of the representatives. Further personal information may be included in testimony, exhibits, and other documents. The public employer is required to send to the agency a listing of employees eligible to vote in the recertification elections, and the representatives are emailed eligible employees’ personal information. Cases are contained within the agency’s electronic document management system and the agency’s network. The files located on the agency’s network may contain materials which are confidential as attorney work product, shows of interest, settlement offers and mediators’ notes. Some materials are confidential under other applicable provisions of law. Copies of documents filed in these cases may be obtained through the agency or the agency’s electronic document management system.    12.12(4)   Negotiability dispute case files. These files contain information which pertains to specific contract proposals and whether a specific contract proposal is a mandatory, permissive or excluded subject of bargaining under Iowa Code section 20.9. An employee organization or public employer may file the documents contained in this type of case. Such files contain documents concerning the agency’s determination of the negotiability question. The records may include pleadings, briefs, notices, rulings, orders, exhibits, transcripts, docket sheets, general correspondence, attorneys’ notes, memoranda, research materials, and information compiled under the direction of the agency. Cases contain personal information of the representatives. Cases filed prior to January 1, 2015, are contained on the agency’s network. The files may contain materials which are confidential as attorney work product and contain settlement offers and mediators’ documents. Some materials are confidential under other applicable provisions of law. Cases filed after January 1, 2015, are contained within the agency’s electronic document management system. If the case went to hearing, the hearing may have been recorded by mechanical means, and a copy of the recording may be available. The files are maintained by the agency and are indexed by the case number. Copies of documents or hearing recordings filed in these cases may be obtained through the agency or the agency’s electronic document management system.     12.12(5)   Declaratory order case files. These files contain information which pertains to applicability of a statute, rule or order within the primary jurisdiction of the agency. A person, employee organization or public employer may file the documents contained in this type of case. Such files contain documents concerning the agency’s determination of that question. The records may include pleadings, notices, rulings, orders, exhibits, transcripts, docket sheets, general correspondence, attorneys’ notes, memoranda, research materials, and information compiled under the direction of the agency. Cases contain personal information of the representatives and may contain personal information of the petitioner or respondent if the petitioner or respondent is an individual. Further personal information may be included in testimony, exhibits, and other documents. Cases filed prior to January 1, 2015, are contained on the agency’s network. Cases filed after January 1, 2015, are contained within the agency’s electronic document management system. If the case went to hearing, the hearing may have been recorded by mechanical means, and a copy of the recording may be available. The files may contain materials which are confidential as attorney work product, settlement offers and mediators’ notes. Some materials are confidential under other applicable provisions of law. The files are maintained by the agency and are indexed by the case number. Copies of documents or hearing recordings filed in these cases may be obtained through the agency or the agency’s electronic document management system.    12.12(6)   Contract negotiation impasse files. These files contain information which pertains to the public employer and certified employee organization’s negotiations. An employee organization or public employer may file the documents contained in the file. The records may include the request for impasse services, assignment of a mediator, interest arbitration list, selection letters, and correspondence regarding mediation and interest arbitration hearings. Mediators may maintain assigned impasse files which contain confidential documents related to the mediation. Files contain personal information of the representatives. The case files are paper, and each impasse is recorded in an agency database. The files are maintained by the agency and are indexed by the bargaining unit number.Electronic files will be kept for up to five years following the close of the arbitration. Copies of the documents contained in the files may be obtained through the agency.     12.12(7)   Neutral files. The agency maintains biographical data on qualified mediators and arbitrators. A mediator’s file contains an application, an acceptance letter, and the yearly mediator contract. An arbitrator’s file contains an application, an acceptance letter, renewal applications, biographical sketches, letters of recommendation, a résumé, and decisions. Neutral files may also contain concerns expressed by employees or employer and employee organization representatives, material related to agency-conducted investigations, and information on hearings and decisions issued by the agency. Cases contain personal information of the representatives and may contain personal information of the petitioner or respondent if the petitioner or respondent is an individual. Further personal information may be included in testimony, exhibits, and other documents. Neutral files contain personal information of the neutral and may contain personal information of employees and employer and employee organization representatives if they provide written comments regarding a neutral. The neutral files are paper. The files may contain materials which are confidential as attorney work product, settlement offers and mediators’ notes. Some materials are confidential under other applicable provisions of law. The files are maintained by the agency and are commonly indexed by the neutral’s last name. Biographical sketches of neutrals are located on the agency’s website. Copies of documents contained in these files may be obtained through the agency.    12.12(8)   Employee organization files. Employee organizations are required to file certain documents with the agency prior to certification and annually. An employee organization’s representative files the documents contained in the file. The records include the certified employee organization’s constitution and bylaws, amended constitution and bylaws, registration reports, annual reports, correspondence, bargaining unit description and subsequent amendments. The employee organization files contain personal information of the representatives. Further personal information may be included in testimony and exhibits. The employee organization files are both on paper and contained within the agency’s electronic document management system. The employee organization files are both on paper and contained within the agency’s electronic document management systemEmployee organization files are electronic and can be located in suPERB. The files are maintained by the agency and are indexed by the certified employee organization in paper files and by certified employee organization number if the files are on the agency’s electronic document management system. Copies of the documents contained in these files may be obtained through the agency or the agency’s electronic document management system.     12.12(9)   State employee appeals of grievance decisions and disciplinary action case files. These files contain appeals from a response from the Iowa department of administrative services regarding an employee’s grievance or appeal of a disciplinary action. A person or representative may file the documents contained in this type of case. These files contain information which pertains to the appeal. The records may include the appeal form and attachments, pleadings, briefs, notices, rulings, decisions, orders, exhibits, transcripts, docket sheets, general correspondence, attorneys’ notes, settlement offers, memoranda, and research materials. Cases contain personal information of the representative and the employee. Further personal information may be included in testimony, exhibits, and other documents. Cases filed prior to January 1, 2015, are contained on the agency’s network. Cases filed after January 1, 2015, are contained within the agency’s electronic document management system. If the case went to hearing, the hearing may have been recorded by mechanical means, and a copy of the recording may be available. The files are maintained by the agency and are indexed by the case number. The files may contain materials which are confidential as attorney work product and contain settlement offers and mediators’ documents. Some materials are confidential under other applicable provisions of law. Copies of documents or hearing recordings filed in these cases may be obtained through the agency or the agency’s electronic document management system.    12.12(10)   Public safety unit determination case files. These files contain information which pertains to whether a bargaining unit is a public safety unit. An employee organization or public employer may file the documents contained in this type of case. Such files contain documents concerning the agency’s determination of that question. The records may include pleadings, notices, orders, exhibits, transcripts, docket sheets, general correspondence, attorneys’ notes, memoranda, research materials, and information compiled under the direction of the agency. Cases contain personal information of the representatives and may contain personal information of employees. Further personal information may be included in testimony, exhibits, and other documents. Cases are contained within the agency’s electronic document management systemor suPERB. If the case went to hearing, the hearing may have been recorded by mechanical means, and a copy of the recording may be available. The files are maintained by the agency and are indexed by the case number. The files may contain materials which are confidential as attorney work product, settlement offers and mediators’ notes. Some materials are confidential under other applicable provisions of law. Copies of documents or hearing recordings filed in these cases may be obtained through the agency or the agency’s electronic document management system.    12.12(11)   Other Iowa Code chapter 20 case files. These files contain information which pertains to objections which an employer or employee organization may make when impasse procedures are not completed prior to the applicable deadline for completion of impasse procedures, challenges which an employee organization or employer may make when the voter eligibility is challenged, and challenges which an employee organization may make postelection in retention and recertification elections. An employee organization or public employer may file the documents contained in this type of case. Further personal information may be included in testimony, exhibits, and other documents. Such files contain documents concerning the agency’s determination of the question. The records may include pleadings, notices, orders, exhibits, transcripts, docket sheets, general correspondence, attorneys’ notes, memoranda, research materials, and information compiled under the direction of the agency. Cases contain personal information of the representatives and may contain personal information of employees. Cases are contained within the agency’s electronic document management systemor suPERB. If the case went to hearing, the hearing may have been recorded by mechanical means, and a copy of the recording may be available. The files are maintained by the agency and are indexed by the case number. The files may contain materials which are confidential as attorney work product, settlement offers and mediators’ notes. Some materials are confidential under other applicable provisions of law. Copies of documents or hearing recordings filed in these cases may be obtained through the agency or the agency’s electronic document management system.    12.12(12)   Grievance, fact-finding and interest arbitration decisions. The agency maintains decisions issued by neutrals. Grievance arbitration decisions prior to the year 2000 are maintained on the agency’s database, and copies of a decision may be obtained through the agency. Grievance arbitration decisions after the year 2000 which the parties agreed could be made public can be obtained through the agency’s searchable database system. All fact-finding and interest arbitration decisions can be obtained through the agency’s searchable database system.    12.12(13)   Collective bargaining agreements. The agency maintains collective bargaining agreements negotiated between the public employer and the certified employee organization. Collective bargaining agreements negotiated prior to the year 2000 are maintained on the agency’s database, and copies of these collective bargaining agreements may be obtained through the agency. Collective bargaining agreements negotiated after the year 2000 can be obtained through the agency’s searchable database system.     12.12(14)   Personnel files. The agency maintains files containing information about agency employees and applicants for positions with the agency. The files contain payroll records, biographical information, medical information relating to disability, performance reviews and evaluations, disciplinary information, information required for tax withholding, information concerning employee benefits, affirmative action reports, and other information concerning the employer-employee relationship. Some of this information may be confidential under Iowa Code sections 22.7(11) and 22.7(18). Personnel files are paper files.     12.12(15)   Litigation files. These files or records contain information regarding litigation or anticipated litigation which involves the agency. The records include pleadings, briefs, docket sheets, documents, general correspondence, attorneys’ notes, memoranda, research materials, and investigation materials. Litigation files aremay be paper filesand may be kept up to five years in paper format or replaced immediately in electronic format if possible. The files are indexed by the name of the opposing party or case number. The files contain materials which are confidential as attorney work product. Some materials are confidential under other applicable provisions of law. Persons who wish to obtain copies of pleadings and other documents filed in litigation should obtain these from the clerk of the appropriate court which maintains the official copy.

        ITEM 17.    Amend rule 621—12.13(17A,20,22) as follows:

    621—12.13(17A,20,22) Other groups of records.  This rule describes groups of records maintained by the agency other than record systems as defined in rule 621—12.1(17A,20,22). The records listed may contain information about individuals. Unless otherwise designated, the authority for this agency to maintain the record is provided by Iowa Code chapter 20, the statutes governing the subject matter of the record, and the enabling statutes of the agency, where applicable. All records are stored both on paper and in automated data processing systemselectronically unless otherwise noted.    12.13(1)   Citizen inquiry and response files. Individuals and representatives write or email this agency on a variety of legal issues with regard to Iowa Code chapter 20. The agency does not generally provide legal advice to individuals but may provide general information.    12.13(2)   Internal agency records. These records include agendas, minutes and materials presented during meetings.     12.13(3)   Administrative records. These records include documents concerning budgets, property inventory, purchasing, yearly reports, office policies for employees, time sheets, and printing and supply requisitions.    12.13(4)   Rule-making records. Official documents executed during the promulgation of agency rules and public comments are available for public inspection.

        ITEM 18.    Rescind and reserve subrule 13.4(6).

        ITEM 19.    Amend subrules 13.4(8) and 13.4(9) as follows:    13 13.4 4(8) Exemption.  Persons on the agency’s professional staff and mediators employed by FMCS shall not be required to submit an application for listing and shall be deemed as meeting all criteria set forth in subrules 13.4(3) through 13.4(6)13.4(5) throughout the duration of their employment with the agency or FMCS.    13 13.4 4(9) Grandfather clause.  Any person listed prior to November 5, 2014, shall be deemed as meeting all criteria set forth in subrules 13.4(3),and 13.4(4) and 13.4(6).

        ITEM 20.    Rescind and reserve subrule 14.5(6).

        ITEM 21.    Amend subrule 14.5(7) as follows:    14.5(7) Exemption.  Applicants who qualify for and complete the agency’s interest arbitrator mentorship program, as outlined in rule 621—14.6(20), shall be exempt from the criteria set forth in subparagraph 14.5(4)“a”(1) and subrule 14.5(6).

        ITEM 22.    Amend subrule 14.5(8) as follows:    14.5(8) Duration of listing.  Listing on the roster shall be for a term of three yearsone year, renewable by payment of a fee of $50.

        ITEM 23.    Amend subrule 14.5(9) as follows:    14.5(9) Renewal application.      a.    The board shall notify a roster member not less than 120 days before the expiration of the member’s three-yearroster members on September 1 before the expiration of their one-year term of the procedures necessary to continue inclusion on the rosterrequirement to pay their annual fee or be designated inactive.    b.    A roster member desiring to renew the member’s listing must submit a written application to the board not less than 60 days before the expiration of the member’s three-year termthe appropriate fee.    c.    When reviewing a renewal application, the board shall consider the following criteria, plus any other relevant information, in determining whether to renew the person’s listing:    (1)   Demonstration of the requisite knowledge and abilities as listed in subrule 14.5(3);    (2)   Acceptability, which may be based on the agency’s records that show the number of times the arbitrator’s name has been proposed to the parties and the number of times the arbitrator has been selected. Such cases will be reviewed for extenuating circumstances, such as the arbitrator’s length of time on the roster or prior history;    (3)   Timeliness of decisions;    (4)   Feedback from the parties; and    (5)   Attendance at agency-sponsored events, including conferences and trainings.    d.    Within 60 days of receipt of the completed application, the board shall issue and serve in accordance with 621—subrule 2.15(2) a written decision granting or denying the renewal application.    (1)   If renewal is granted, the roster member shall remit payment of the annual listing fee in accordance with subrule 14.3(4).    (2)   If renewal is denied, the renewal applicant may request reconsideration of the denial within 14 days of issuance of the denial. The board shall hold a hearing conducted in accordance with 621—Chapter 2 within 60 days of the request for reconsideration and shall issue its final ruling within 30 days of the hearing. Absent a timely request for reconsideration, the board’s denial of the renewal application becomes final, and the arbitrator shall be removed from the roster.

        ITEM 24.    Amend subrule 14.5(10) as follows:    14.5(10) Grandfather clause.  Any arbitrator listed on the roster prior to November 5, 2014, shall be deemed to meet all criteria set forth in subrules 14.5(3),and 14.5(4), and 14.5(6) for up to three years following November 5, 2014. For purposes of renewal, the agency shall divide arbitrators listed on the roster on November 5, 2014, into three groups with staggered renewal dates and will notify the members of each group when their renewal applications are due.

        ITEM 25.    Rescind 621—Chapter 15 and adopt the following new chapter in lieu thereof: CHAPTER 15RETENTION AND RECERTIFICATION ELECTIONS

    621—15.1(20) General procedures.  When an employer and certified employee organization are parties to a collective bargaining agreement, the agency shall conduct an election, prior to the expiration of a collective bargaining agreement between an employer and a certified employee organization, to determine if the employees in a represented bargaining unit wish to retain and recertify the unit’s certified representative. The agency shall determine the date of the election or election period and the place, method, and other procedural aspects of conducting a retention and recertification election held pursuant to Iowa Code chapter 20. Elections shall be conducted under the direction and supervision of the agency or its election agent and shall be by secret ballot.Official notices relevant to the election will be delivered through secure upload PERB (suPERB). Notification of events requiring attention of parties shall be produced by suPERB. The election fee shall be calculated and delivered to employee representatives through suPERB.Employers and certified employee organizations shall have a representative or agent for service listed in suPERB and the electronic document management system (EDMS). Employers and certified employee organizations have a continuing duty to update the representative or agent for service in suPERB and EDMS. Employees in a bargaining unit designated as a transit unit will not be subject to retention and recertification elections.

    621—15.2(20) Election calendar.      15.2(1) Fall election.      a.    The fall election shall be conducted by electronic voting provided for by a vendor selected by the agency.    b.    The fall election shall commence on the Monday of the first full week in October at 8 a.m. and shall apply to all collective bargaining agreements which expire the following year on June 30 or on a date between 270 and 365 days after the end of the election.     c.    Voting in the fall election shall cease at 12 noon on the second Friday following the commencement of the election.    15.2(2) Spring election.      a.    The spring election shall be carried out by mail ballot.    b.    The spring election will end with the tallying of the ballots on the Tuesday of the third full week in March and shall apply to all collective bargaining agreements that expire the following year on a date between 270 and 365 days after the end of the spring election. Ballots shall be mailed not later than March 3.    15.2(3) Date of the election.  For the purposes of this chapter, the date of an election shall be the date on which the ballots were tallied.The board will determine which bargaining units are subject to retention and recertification election in the immediate state fiscal year based on the contract uploaded to suPERB as of July 15. Changes or extensions to contracts uploaded to suPERB after July 1 will not alter the date of the election. If a collective bargaining agreement indicates the agreement is for a term of one year but does not clearly specify the effective commencement and termination dates, the agency will presume the collective bargaining agreement is for a term of one year commencing July 1 and ending June 30 unless the agreement clearly states an alternate term and effective dates.

    621—15.3(20) General election procedures.      15.3(1) Notice of intent to conduct an election.  PERB will issue a notice of intent to conduct an election on August 1 to both the employer and employee representatives designated in suPERB.    15.3(2) Initial filing of approved list by employer.  When the agency files a notice of intent to conduct a retention and recertification election, the employer shall, within 15 days of the notice, submit to the agency through suPERB an alphabetical list of the names; addresses; email addresses, if known; telephone numbers, if known; and job classifications of the employees in the bargaining unit. When a telephonic/web-based election is ordered, the list of eligible voters shall also include the employee’s date of birth, the last four digits of the employee’s social security number and any other information required by the agency. If the employer uploaded a current list of employees and their relevant information in the designated bargaining unit satisfying this subrule prior to August 1, the employer will approve the previously uploaded list in suPERB. For spring elections, this date will be January 1.    15.3(3) Failure to upload an employee list.      a.    If an employer fails to upload and approve a voter list by August 10, the agency will order an in-person show cause hearing prior to August 13. The agency may provide reasonable accommodation to extend the upload period up to three days after the hearing in cases of demonstrated inability to create and upload a list beyond the control of the employer. For spring elections, this date shall be January 15 and January 18 or the first business day following.    b.    Providing the employer an extension will automatically provide the employee organization an extension of a commensurate number of days.    c.    The agency may take official notice of a failure to comply with subrule 16.3(2) and Iowa Code chapter 20.    d.    Failure of an employer to upload a list will result in automatic recertification of the bargaining unit.     15.3(4) Employer organization approval of the list.      a.    An employee organization shall have until August 31 to approve an eligible voter list. Eligible voters are those employees who were employed and included in the bargaining unit on August 31. For spring elections, employee organizations have until February 1. Eligible voters are those on the list as of February 1. There will be no addition to the list after August 31 and February 1.    b.    An employee organization shall utilize suPERB to suggest modifications to the list. The employer shall promptly review changes and make appropriate changes to the list when in agreement. The employer shall securely upload any mutually agreed upon amended list to the agency’s secure upload filing system prior to the close of the list. Intentional or unreasonable obstruction by either party of list amendment shall be grounds for election objection.    c.    If an employer of a respective bargaining unit fails to upload a list and the board grants an extension, the employee organization shall be granted the same extensions for approval of eligible voters.    d.    If an employee organization fails to approve a voter list by August 31, the agency will order a show cause hearing prior to September 5. The agency may provide reasonable accommodation to extend the upload period up to three days after the hearing in cases of demonstrated inability to suggest changes and approve an eligible voter list. For spring elections, the applicable dates will be January 15 for list submission and January 20 for a hearing if necessary.    e.    If the employee organization fails to approve a list by September 8 for fall elections or February 5 for spring elections, the agency will use the list currently uploaded to suPERB.    15.3(5) Employer’s responsibility.      a.    It is the employer’s reasonability to maintain accuracy of the list. It is the employer’s responsibility to add or remove any employees who become employed or are no longer employed by the employer up until the list is final.    b.    For any employees on the final list who become unemployed prior to the close of the election, the employer shall notify PERB and the employee organization. If, after the tally of the ballot, the removal of the voter would be outcome determinative, PERB will re-tally the ballots as if the employee who is no longer employed was never on the list.    15.3(6) Final voter list.  The final voter list will be the contents of the list uploaded to suPERB as of September 10. No additions or subtractions will occur after this day. This is the list used to calculate the election fee. The date for a final voter list for spring elections will be February 10.

    621—15.4(20) Election fee.      15.4(1) Computation of election fee.      a.    Fall election fee.PERB will post on September 10 the total number of eligible voters, the fee applied per eligible voter, and the amount each employer organization is responsible for on the PERB website. The total number of voters in the election shall be the sum of all the eligible voters in all of the bargaining units subject to retention and recertification in the fall election. The calculation of the fee shall be as follows: The price of the election vendor ($54,000), minus carryforward from the previous year, divided by the rate established by the total number of eligible voters as of September 1 of the current year. If the voter list contains or exceeds 10,000 voters but does not exceed 14,999 voters, the fee shall be $5.30 per voter. If the voter list contains or exceeds 15,000 voters but does not exceed 19,999 voters, the fee shall be $3.53 per voter. If the voter list contains or exceeds 20,000 voters but does not exceed 24,999 voters, the fee shall be $2.65 per voter. If the voter list contains or exceeds 25,000 voters but does not exceed 29,999 voters, the fee shall be $2.12 per voter. If the voter list contains or exceeds 30,000 voters but does not exceed 34,999 voters, the fee shall be $1.77 per voter. If the voter list contains or exceeds 35,000 voters but does not exceed 39,999 voters, the fee shall be $1.51 per voter. If the voter list contains or exceeds 40,000 voters but does not exceed 44,999 voters, the fee shall be $1.32 per voter. If the voter list contains or exceeds 45,000 voters but does not exceed 49,999 voters, the fee shall be $1.18 per voter. If the voter list contains or exceeds 50,000 or more voters, the fee shall be $1.06 per voter.    b.    Spring election fee. The fee for spring elections shall be the greater of $3 per voter or $50 per bargaining unit. Employee organizations will be notified by suPERB on February 10 of the required fee and will have 14 days to pay in person or by certified mail. Checks will be considered received by the certified postmark date.    15.4(2) Employee organization responsibility for the fee.      a.    The employee organization is responsible for and shall prepay the election fee in accordance with this chapter. PERB will send notice to employee organizations through suPERB on September 10 of the amount due for each specific bargaining unit based on the number of eligible voters on the final list in a unit times the fee determined in subrule 15.4(1).    b.    For spring elections, the final date for payment shall be February 24.    15.4(3) Failure to pay election fee.  Failure to pay the election fee by the deadline shall result in an automatic revocation.    15.4(4) Election cost shortfall.  If the amount submitted in aggregate for all elections occurring in the current year does not exceed the amount due for services provided by a designated election vendor, PERB may pay the difference and assess the amount to the election in the following year.    15.4(5) Refunds.  The agency will not refund the election fee in the event the election is paid and the agency has performed duties to conduct the election but the election does not occur.

    621—15.5(20) Election notice and electioneering.  Following the agency’s receipt of the applicable election fee from the certified employee organization, the agency will file an order directing a retention and recertification election in suPERB. Notice shall be provided to the employer representative and employee representative. The employer may distribute, electronically or by hard copy, the notice to the affected employees. The employer may also post the notice in the manner and locations customarily used for the posting of information to employees. If the employer chooses to post notice, such notices may contain a sample ballot or script and shall set forth the dates of the election period and the time, place, method, and purpose of the election; the employer must remain neutral in the language, posting, and election process.

    621—15.6(20) Tallying and certification of results.      15.6(1) Ballots.  Ballots shall contain the question, “Do you want [name of certified employee organization] to be retained and recertified and continue to be your exclusive bargaining representative?” followed by the choices “Yes” or “No.”    15.6(2) Recertifying employee organization.  Upon completion of a valid retention and recertification election in which an employee organization received the votes of a majority of employees in the bargaining unit, the agency shall file an order recertifying the employee organization as the exclusive bargaining representative of the employees in the bargaining unit. This notice shall be filed in suPERB and be available to both the employer and employee representative.    15.6(3) Decertifying employee organization.  Upon completion of a valid retention and recertification election in which an employee organization did not receive the votes of a majority of employees in the bargaining unit, the agency shall file an order decertifying the employee organization as the exclusive bargaining representative of the employees in the bargaining unit. The unit remains as a bargaining unit. The contract ceases to exist. The included job classifications of the bargaining unit that failed to be recertified shall be unable to vote for two years from the date of the completion of the election in which the unit voted to decertify.    15.6(4) Inoperable voting system.  The board may extend the period of the election due to inoperable voting systems.    15.6(5) Alternate voting method.  When a voter promptly informs the agency of the voter’s inability to cast a ballot using the designated methods of voting, the agency shall assist the voter in using an alternate method to cast a secret ballot.

    621—15.7(20) Objections.      15.7(1) Objection and notice regarding notice of intent to conduct an election.      a.    The certified employee organization or public employer may file an objection asserting that the election should not be conducted for reasons set forth in the objection. The objection shall be in writing and electronically filed in EDMS no later than seven days following the date of the notice of intent to conduct an election. The agency may conduct a preliminary investigation of the objection and determine if the objection has merit. The agency may informally resolve objections and will dismiss objections without merit. The agency will schedule hearings for all other objections. Hearings on objections shall be conducted pursuant to 621—Chapter 2. The objecting party shall present its evidence first.    b.    If the agency fails to file a notice of intent to conduct an election, the public employer or certified employee organization may file with the agency in suPERB a notice asserting the election should be conducted for reasons set forth in the notice. The notice shall be electronically filed no later than seven days following the date the notice of intent to conduct an election should have been filed pursuant to the retention and recertification election schedule as set forth by the agency. The parties shall submit to the agency all relevant information requested. The agency shall conduct an investigation to determine whether the election is required by statute and rule.    15.7(2) Voter eligibility challenges.      a.    General.A party may challenge, for good cause, the eligibility of any voter. The agency shall attempt to resolve the challenge. Whenever challenged ballots are unresolved and determinative of the outcome of an election, a hearing to determine the eligibility of the challenged voter(s) shall be scheduled and conducted. After the conclusion of the hearing, the board may, if necessary, determine the appropriate remedy, which may include ordering a new election, and the cost of the new election may be taxed to the nonprevailing party.    b.    Methods and timing of voter eligibility challenges.A party may challenge the eligibility of a voter by electronically filing a completed voter eligibility form in suPERB and in accordance with the following:    (1)   In-person elections. A party shall challenge a voter’s eligibility prior to the time the voter deposits the voter’s ballot in the ballot box. In the event of a challenge, the challenged voter may mark the ballot in secret and the election agent shall segregate the ballot by causing it to be placed in a challenged-ballot envelope with appropriate markings and depositing it in the ballot box.    (2)   Mail-ballot elections. A party shall challenge a voter’s eligibility prior to the time the outer envelope containing the voter’s secret envelope and ballot is opened. In the event of a challenge, both the secret envelope and the outer envelope shall remain sealed until the challenge is resolved.    (3)   Telephonic/web-based elections. A party shall challenge a voter’s eligibility at least seven days prior to the commencement of the election period for telephonic/web-based elections.    c.    Postelection challenges.A certified employee organization may make postelection challenges to the total number of bargaining unit employees for their respective retention and recertification elections. The certified employee organization may file a postelection challenge in EDMS to the number of bargaining unit employees if an eligible voter has left employment and is no longer in the bargaining unit prior to the close of the election or election period. The employee organization shall file in EDMS this postelection challenge within ten days of the filing of the tally of ballots. The agency shall attempt to resolve the dispute. Whenever postelection challenges are unresolved and determinative of the outcome of an election, a hearing to determine whether an eligible voter left employment and was no longer in the bargaining unit prior to the close of the election or election period shall be scheduled and conducted. The board may make appropriate adjustments to the tally or order a new election based on the board’s findings and conclusions.    d.    Objections to an election.621—subrule 5.4(2) contains information about objections to an election.

    621—15.8(20) Spring elections.  Spring elections will be conducted with mail-ballot election procedures described in 621—subrule 5.3(2). The ballots will be mailed by the agency no later than February 21.

    621—15.9(20) Elections not 270 days to 365 days after fall or spring election.  If the date of expiration of a collective bargaining agreement requires an election not 270 days to 365 days after the fall or spring election, suPERB will immediately alert the agency, the employer and the employee representatives. In this event, PERB will within 14 days establish a future date of election to be held beginning on a Monday of the first full week in an appropriate month that allows for compliance with Iowa Code section 20.15(2)“a.” All applicable dates will be established upon the selection of the election time period and will follow the same general procedures and timelines described in this chapter.

    621—15.10(20) Transit units.  Units recognized as transit units under Iowa Code section 20.32 and designated as such in suPERB pursuant to 621—subrule 6.6(3) will not be served a notice of intent to conduct an election. If a transit unit does receive a notice in error, the unit may immediately petition the board to be removed from the election. The agency may informally determine the unit’s transit status and remove the unit from the recertification election. Once a transit determine has been made, the unit shall be considered transit by default unless designated otherwise.       These rules are intended to implement Iowa Code chapter 20.

        ITEM 26.    Amend rule 621—16.1(20) as follows:

    621—16.1(20) Effective date and scope.  This chapter governs the filing of documents in all proceedings before the agency, or those proceedings converted to electronic proceedings upon the board’s order. This chapter also governs the filing of all documents required to be filed by employee organizations pursuant to 621—Chapter 8. To the extent the rules in this chapter are inconsistent with any other administrative rule of the board, the rules in this chapter shall govern.

        ITEM 27.    Amend rule 621—16.2(20), definition of “EDMS,” as follows:        "EDMS" means the electronic document management system, the agency’s electronic filing and case management system, generally used for the collection and storage of documents related to cases likely to proceed to hearing or contested cases.

        ITEM 28.    Adopt the following new definition of “SuPERB” in rule 621—16.2(20):        "SuPERB" means a web interface database used by the board for the secure upload of various documents generally related to elections, the internal conduct of employee organizations, contracts, and the dissemination of notices related to elections.

        ITEM 29.    Amend rule 621—16.3(20) as follows:

    621—16.3(20) RegistrationElectronic document management system (EDMS) registration, username, and passwords.      16.3(1) Registration.      a.    Registration required.Every individual filing documents or viewing or downloading filed documents must register as a registered user of the electronic document management system.    b.    How to register.To register, the individual must complete the registration process located at perb.iowa.gov/efiling and obtain a username and password for the electronic document management system.    c.    Registration complete.When the registration process is completed, the registered user will be assigned a username and password and the registered user may utilize the electronic document management system.    d.    Changing passwords.Once registered, the user may change the user’s password. If the registered user believes the security of an existing password has been compromised, the registered user must change the password immediately. The agency may require password changes periodically.    e.    Changes in registered user’s contact information.If a registered user’s email address, mailing address, or telephone number changes, the user must promptly make the necessary changes to the registered user’s information contained in the electronic document management system. The registered user shall promptly give notice of changes in contact information to any nonregistered party in every active proceeding in which the registered user is a party.    f.    Duties of registered user.Each registered user shall ensure that the user’s email account information is current, that the account is monitored regularly, and that email notices sent to the account are timely opened.    g.    Canceling registration.Withdrawal from participation in the electronic document management system cancels the registered user’s profile but does not authorize nonelectronic filing of documents and is not a withdrawal from a proceeding.    h.    Agency-initiated registration.The agency may complete the registration process on behalf of an individual in certain instances and email the username and password to the user. When the agency completes the registration process, the user is required to promptly log in and change the password. Following initial notification regarding account registration, the user is required to promptly update and maintain accurate contact information for the EDMS account.    16.3(2) Use of username and password.  A registered user is responsible for all documents filed with the user’s username and password unless proven by clear and convincing evidence that the registered user did not make or authorize the filing.    16.3(3) Username and password security.  If a username or password is lost, misappropriated, misused, or compromised, the registered user of that username/password shall notify the agency promptly.    16.3(4) Denial of access.  The agency may refuse to allow an individual to electronically file or download information in the electronic document management system due to misuse, fraud or other good cause.

        ITEM 30.    Rescind subrule 16.4(6).

        ITEM 31.    Adopt the following new rule 621—16.14(20):

    621—16.14(20) Secure upload PERB (suPERB) registration, username, and password.  SuPERB is the document management system used to upload and file documentation related to elections, internal conduct of employee organizations, contracts, impasse requests, and other documents as prescribed by the agency.    16.14(1) Registration.      a.    Registration required.Employers, certified employee organizations, and bargaining units must ensure the necessary individuals representing their interest at the agency are registered and their information updated appropriately. Every individual filing documents or downloading filed documents must register as a registered user of suPERB.     b.    How to register.To register, a user must request the creation of an account from the agency.    c.    Registration complete.When the registration process is completed, the registered user will be assigned a username and password and the registered user may utilize suPERB.    d.    Changing passwords. Once registered, the user may change the user’s password. If the registered user believes the security of an existing password has been compromised, the registered user must change the password immediately. The agency may require password changes periodically.    e.    Changes in registered user’s contact information.If a registered user’s email address, mailing address, or telephone number changes, the user must promptly make the necessary changes to the registered user’s information contained in suPERB. The registered user shall promptly give notice of changes in contact information to any nonregistered party in every active proceeding in which the registered user is a party.    f.    Duties of registered user.Each registered user shall ensure that the user’s email account information is current, that the account is monitored regularly, and that email notices sent to the account are timely opened.    g.    Agency-initiated registration.The agency may complete the registration process on behalf of an individual in certain instances and email the username and password to the user. When the agency completes the registration process, the user is required to promptly log in and change the password. Following initial notification regarding account registration, the user is required to promptly update and maintain accurate contact information for a suPERB account.    16.14(2) Use of username and password.  A registered user is responsible for all documents filed with the user’s username and password unless proven by clear and convincing evidence that the registered user did not make or authorize the filing.    16.14(3) Username and password security.  If a username or password is lost, misappropriated, misused, or compromised, the registered user of that username/password shall notify the agency promptly.    16.14(4) Denial of access.  The agency may refuse to allow an individual to electronically file or download information in suPERB due to misuse, fraud or other good cause.    16.14(5) Public access.  All documents publicly available and contained within suPERB will not require a user account to access. The public-facing search portal provides access to public documents and is searchable free of charge.
    ARC 6913CPublic Employment Relations Board[621]Notice of Intended Action

    Proposing rule making related to determination of bargaining units, certified employee representatives, and elections and providing an opportunity for public comment

        The Public Employment Relations Board (PERB) hereby proposes to amend Chapter 4, “Bargaining Unit and Bargaining Representative Determination,” and Chapter 5, “Elections,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 20.6.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 20.Purpose and Summary    This Notice of Intended Action proposes to amend rules relating to determination of bargaining units, certified employee representatives, and elections associated with these processes. It is the goal of the agency to work closely with employers and employee representatives to simplify these processes and move those processes to the agency’s secure upload system, commonly referred to as suPERB. The agency is proposing these amendments after feedback, internal review, and implementation of new data management systems. The proposed amendments are described in detail as follows.    Item 1 moves certain filings from email, mail or electronic document management system (EDMS) to suPERB. SuPERB will be configured to allow the filing of petitions electronically. Shifting petitions to suPERB creates greater transparency and faster processing.     Item 2 eliminates the option, and when applicable, requirement, that petitions be combined. Combining a petition appears to be exceptionally confusing to users and creates extra paperwork for users and the agency. Units must be determined prior to determination of certification. Moving this process to suPERB creates an opportunity to simplify the process and provide explanations that do not require legal training. Combining petitions confuses the processes without creating efficiencies for the user or agency.    Items 3 through 5 move the unit determination filing process to suPERB and describe the process.    Items 6 and 7 eliminate the combination of petitions for the same reasons as described for Item 2.     Item 8 moves the filing of petitions for amendment of a unit to suPERB.    Item 9 moves the filing of petitions for amendments of certification to suPERB and clarifies that reports requiring updates are annual reports filed by the employee organization found in 621—Chapter 8. The current language in paragraph 4.8(2)“b” is ambiguous.     Item 10 requires the filing of objections to processes, set forth in rule 621—4.8(20), in EDMS. These cases are likely to result in an adjudicatory hearing and should therefore remain in EDMS.    Item 11 eliminates the requirement that parties file combined petitions in cases where parties are seeking to merge two units previously determined by PERB and represented by the same affiliated certified employee organization.    Item 12 clarifies that reports requiring updates are annual reports filed by the employee organization found in 621—Chapter 8. The current language in paragraph 4.10(2)“b” is ambiguous.     Item 13 gives the agency the option to run a petition for amendment of unit and a petition for certification of employee representative concurrently if it is requested by the parties. For the merger of two units currently being represented by the same certified employee organization, it may be advantageous to run the processes concurrently.    Item 14 moves to suPERB all filings concerning elections, including voter lists, voter challenges, requests for extensions of time to pay applicable fees, and amendment to voter lists. The agency will use suPERB to file notices and orders for all elections activities other than those related to objections to elections. Currently, some documents are filed in EDMS and some in suPERB, depending on what type of election. This is a continuation of the effort to delineate EDMS into a legal case management system for adjudicated cases and suPERB for non-adjudicatory processes. This is intended to provide simplicity and accountability.     Item 15 eliminates the notice of nonpayment for employee organizations responsible for an election fee. The same result is accomplished by not paying the fee. The filing only creates work for the user and agency.    Item 16 restructures subrule 5.1(2) as a result of the change in Item 15.     Item 17 requires the submission of voter eligibility lists through suPERB and eliminates the requirement or ability to submit lists by email. SuPERB is a significantly safer and more efficient means of collecting voter information. Item 16 also eliminates unnecessary language stating the agency will provide the employee organization the voter lists and employee’s contact information. This is a necessary and built-in function of suPERB. Historically, PERB has filed these lists in EDMS; this is no longer necessary and would be confusing. Proposed amendments to the voter eligibility list by employers and employee organizations will be handled officially through suPERB.    Item 18 clarifies that objections to elections are filed in EDMS, as is current practice.    Items 19 and 20 require the submission of voter eligibility lists for professional and nonprofessional elections as well as elections for amendment of units through suPERB and eliminates the requirement or ability to submit these lists by email. SuPERB is a significantly safer and more efficient means of collecting voter information. Items 18 and 19 also eliminate unnecessary language stating the agency will provide the employee organization the voter lists and employees’ contact information. This is a necessary and built-in function of suPERB. Historically, PERB has filed these lists in EDMS; this is no longer necessary and would be confusing. Proposed changes to the voter eligibility list by employers and employee organizations will be handled officially through suPERB.Fiscal Impact    There will be small changes to the existing database and the web interface for suPERB. These have been accounted for in budgeting. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    These rules do not provide for a waiver of their terms but are instead subject to the agency’s general waiver provisions found in rule 621—1.9(17A,20).Public Comment     Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by PERB no later than 4:30 p.m. on May 1, 2023. Comments should be directed to: Erik Helland Public Employment Relations Board Jessie Parker Building, Suite 1B 510 East 12th Street Des Moines, IA 50319 Phone: 515.281.4414 Email: iaperb@iowa.govPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Adopt the following new paragraph 4.1(1)"d":    d.    Filing system. Except where noted, petitions for amendment of unit, petitions for reconsideration of the unit, and petitions for clarifications of the unit will be filed in the secure upload PERB (suPERB) system.

        ITEM 2.    Rescind and reserve subrule 4.1(3).

        ITEM 3.    Amend subrules 4.2(1) and 4.2(2) as follows:    4 4.2 2(1) Content of petition.  A petition for bargaining unit determination shall be on an agency-prescribed form and filed with the agencyin suPERB. The petition shall identify and describe the proposed unit and indicate the unit’s status as a public safety or non-public safety unit.    4 4.2 2(2) Notice to parties.  Upon the filing of a proper petition, the agency shall serve copies thereof upon other interested parties by certified mail, return receipt requestedwill create a proposed unit designating the appropriate representatives for employers, bargaining unit representatives, and if applicable, representatives of the certified employee organization. The agency shall file a notice to employees, giving notice that the petition has been filed and setting forth the rights of employees under Iowa Code chapter 20. The employer shall promptly distribute, electronically or by hard copy, the petition and notice to the affected employees. The employer shall also promptly post the petition and notice in the manner and locations customarily used for the posting of information to employees.

        ITEM 4.    Amend subrule 4.2(6) as follows:    4.2(6) Informal settlement of bargaining unit determination.  Cases on bargaining unit determination may be informally settled in the following manner:    a.    The parties may stipulate to the composition of the unit.    (1)   The petitioning party shall preparein suPERB a stipulation setting forth in detail the composition of the bargaining unit as agreed upon by all parties. The stipulation shall be signed by the authorized representatives of the parties involved and shall be filed with the agency for informal review and tentative approval. In the event the parties agree to a combined unit of professional and nonprofessional employees, the stipulation shall set forth both those job classifications included within the professional category and those job classifications included within the nonprofessional category.     (2)   If the agency fails to tentatively approve the stipulation, the agency shall notify the parties and, unless the parties amend the stipulation in a manner to gain tentative approval of the agency, the matter shall proceed to hearing.If a matter proceeds to hearing, notices of hearing and related documents will be filed in the electronic document management system (EDMS).     (3)   If the agency tentatively approves the stipulation, the agency shall file a public notice of proposed decisionin suPERB. The public employer shall promptly post copies of the notice of the proposed decision, for a period of not less than one calendar week, in a prominent place in the main office of the public employer accessible to the general public. The employer shall promptly distribute, electronically or by hard copy, the notice to the affected employees. The employer shall also promptly post the notice in the manner and locations customarily used for the posting of information to employees.    b.    Notice of the proposed decision shall identify the parties; specify the terms of the proposed decision; list the names, addresses, telephone numbers, and email addresses of the parties or their authorized representatives to whom inquiries by the public should be directed; and, further, state the date and method by which written objection to the proposed decision must be filed with the agency.    c.    Objections to the proposed decision must be electronically filed with the agency by the date posted in the notice of proposed decision. Objections shall set out the specific grounds of objection. The objecting party must identify itself and provide a mailing address, telephone number, and email address, if available. The agency shall promptly advise the parties of the objections and make any investigation deemed appropriate. If the agency deems the objections to be of substance, the parties may, with agency approval, amend their proposed decision to conform therewith, and the objecting party shall be notified by the agency of the amendment. If the objections cannot be informally resolved, they may be dismissed or resolved at hearing.    d.    Final board decision on the informal settlement shall be reserved until expiration of the time for filing of objections. If no objections have been filed; or if filed objections have been resolved through amendment of the proposed decision; or if filed objections, after inquiry by the board, were found to be frivolous, the board shall endorse the proposed decision as final.    e.    If interested parties are unable to informally settle a case on bargaining unit determination within 15 days of service of a petition, the board or administrative law judge may order any interested party to file its proposed unit description.

        ITEM 5.    Adopt the following new subrule 4.3(7):    4.3(7) Electronic filing and notices.  Unless otherwise stated, all filings covered in this rule will be filed in suPERB.

        ITEM 6.    Rescind and reserve rule 621—4.4(20).

        ITEM 7.    Amend rule 621—4.5(20) as follows:

    621—4.5(20) Unit reconsideration.  A petition for reconsideration of an agency-established bargaining unit may be filed by an employee organization,a public employer, or an employee of the public employer. This petition may be filed only in combination with a certification petition. Rules 621—4.1(20), 621—4.2(20),and 621—4.3(20) and 621—4.4(20) shall apply. A petition for reconsideration of an agency-established bargaining unit covering state employees may not be filed for at least one year after the initial unit determination. The agency may dismiss the petition for unit reconsideration if the petitioner fails to establish that the previously determined bargaining unit is inappropriate.

        ITEM 8.    Amend subrule 4.6(1) as follows:    4.6(1) Petition.  A petition for amendment of an agency-determined bargaining unit may be filed by the public employer or the certified employee organization. The petition shallbe filed in suPERB and contain:    a.    The names, addresses, telephone numbers and email addresses of the public employer and the employee organization or their respective representatives.    b.    An identification and description of the proposed amended unit.    c.    The names and addresses of any other employee organizations which claim to represent any employees affected by the proposed amendment or a statement that the petitioner has no knowledge of any other such organization.    d.    Job classifications of the employees as to whom the issue is raised, the number of employees, if any, in each classification, and whether each job classification qualifies as a public safety employee.    e.    A statement identifying the current status of the unit as either a public safety or a non-public safety unit and the change, if any, to the status of the unit which would result from the requested amendment.    f.    A specific statement of the petitioner’s reasons for seeking amendment of the unit and any other relevant facts.

        ITEM 9.    Amend subrules 4.8(1) and 4.8(2) as follows:    4 4.8 8(1) Petitions.  A petition for the amendment of a certified employee organization’s certification may be filedin suPERB by the certified employee organization, the public employer or the agency to reflect an act or occurrence affecting the organization or the public employer, such as a name change or merger.    4 4.8 8(2) Employee organization.  The employee organization must file its petition with the following:    a.    An affidavit(s) that establishes:    (1)   The act or occurrence, which the requested amendment would reflect, was authorized by and accomplished in accordance with the certified employee organization’s constitution and bylaws, which provided members with adequate due process; and    (2)   Substantial continuity of representation has been maintained.    b.    Updated agencyemployee organization reports if there is a change in the employee organization’s name or if there is a change to the employee organization’s governing body. The reports shall include the following:    (1)   An updated PERBemployee organization annual report that covers the time period from the last annual report to the time of the filing of the petition.    (2)   An updated PERBemployee organization registration report.    (3)   An updated constitution and bylaws.    c.    Final agency reports for dissolved organizations resulting from a merger. The final agencyemployee organization report shall include a PERBan employee organization annual report that covers the time period from the last annual report to the time of the merger and shall reflect the closing of the books and accounts of the dissolved employee organization. The certified employee organization may wait and submit its final agency reports following the board’s tentative approval of the amendment of certification.

        ITEM 10.    Amend paragraph 4.8(5)"b" as follows:    b.    Objections to the proposed decision must be electronically filedin the electronic document management system (EDMS) with the agency by the date specified in the notice. Objections shall set out the specific grounds of objection. The objecting party must identify itself and provide a mailing address, telephone number and email address. The agency shall promptly advise the parties of the objections and make any investigation deemed appropriate. When an objection is raised, the agency may investigate and dismiss the objection or conduct a hearing pursuant to 621—Chapter 2.

        ITEM 11.    Amend subrule 4.10(1) as follows:    4.10(1) Petition.  A combined petitionPetitions to amend a bargaining unit and an employee organization’s certification may be filed by a successive employee organization to reflect a merger of two agency-determined bargaining units that have the same public employer and are represented by affiliated certified employee organizations. The combined petitionpetitions shall contain:    a.    The names, addresses, telephone numbers, and email addresses of the public employer and the employee organization or their respective representatives.    b.    A listing of all PERB cases relevant to the first unit and its certification history followed by a current description of the unit.    c.    A listing of all PERB cases relevant to the second unit and its certification history followed by a current description of the unit.    d.    An identification and description of the proposed amended unit.    e.    The names and addresses of any other employee organizations which claim to represent any employees affected by the proposed amendment or a statement that the petitioner has no knowledge of any other such organization.    f.    A statement identifying the current status of the units as either public safety units or non-public safety units and the change, if any, to the status of the unit, which would result from the requested merger.    g.    A specific statement of the petitioner’s reasons for seeking amendment of the unit and any other relevant factors.

        ITEM 12.    Amend paragraphs 4.10(2)"b" and 4.10(2)"c" as follows:    b.    Updated agencyemployee organization reports if there is a change in the employee organization’s name or if there is a change to the employee organization’s governing body. The reports shall include the following:    (1)   An updated PERBemployee organization annual report that covers the time period from the last annual report to the time of the filing of the petition.    (2)   An updated PERBemployee organization registration report.    (3)   An updated constitution and bylaws.    c.    Final agency reports for dissolved organizations resulting from a merger. The final agencyemployee organization report shall include a PERBan employee organization annual report that covers the time period from the last annual report to the time of the merger and shall reflect the closing of the books and accounts of the dissolved employee organization. The certified employee organization may wait and submit its final agency reports following the board’s tentative approval of the amendment of certification.

        ITEM 13.    Adopt the following new subrule 4.10(6):    4.10(6) Concurrent processes.  If a party to these proceedings requests and PERB concurs, the agency may run both processes described in rule 621—4.9(20) concurrently, including the combination of any and all notices.

        ITEM 14.    Amend rule 621—5.1(20), introductory paragraph, as follows:

    621—5.1(20) General procedures.  The agency shall determine the date of the election or election period, and the place, method, and other procedural aspects of conducting an election held pursuant to Iowa Code chapter 20. Elections shall be conducted under the direction and supervision of the agency or its election agent and shall be by secret ballot. Parties shall electronically file all documents in the applicable adjudicatory case file in the agency’s electronic document management system (EDMS) unless the rules specify otherwise.Parties shall file all documents other than objections covered by rule 621—5.4(20) in suPERB, including voter lists, voter challenges, requests for extensions of time to pay applicable fees, and amendments to voter lists. The agency will use suPERB to file notices and orders for all elections activities other than those related to objections covered by rule 621—5.4(20).

        ITEM 15.    Rescind paragraph 5.1(2)"c".

        ITEM 16.    Reletter paragraph 5.1(2)"d" as 5.1(2)"c".

        ITEM 17.    Amend paragraph 5.2(2)"b" as follows:    b.    Voter eligibility list.    (1)   When the agency files an order that an election be conducted, the employer shall, within seven days of the notice or order, email to the agencyupload to suPERB an alphabetical list of the names; addresses; email addresses, if known; telephone numbers, if known; and job classifications of the employees eligible to vote. When a telephonic/web-based election is ordered, the list of eligible voters shall also include the employee’s date of birth, the last four digits of the employee’s social security number and any other information required by the agency.    (2)   The agency shall file the list of eligible voters’ names and job classifications. This list shall become the official voting list for the election to be conducted. The agency shall provide to the employee organization the voter list containing the employees’ contact information. The employer or employee organization shall email proposedpropose in suPERB additions or deletions of employees’ names, changes in job classifications, addresses, contact information, or other eligible voter changes to the agency and to the other party. The parties may further amend the list by agreement.

        ITEM 18.    Amend rule 621—5.4(20) as follows:

    621—5.4(20) Objections to an election.      5.4(1) Objections.  Written objections to an election may be filedin the electronic document management system (EDMS) by any public employee, public employer, or employee organization involved in the election or by the board on its own motion. Objections must be filed with the agency within ten days of the filing of the tally of ballots, even when challenges to eligible voters may be determinative of the outcome of the election. The objection must identify the objecting party; provide the objecting party’s mailing address, telephone number, and email address, if available; and contain a statement of facts upon which the objections are based. The agency shall promptly advise the parties of the objections and make any investigation deemed appropriate. If the objections cannot be informally resolved, they may be dismissed or resolved at hearing. Hearings on objections shall be conducted pursuant to 621—Chapter 2. The objecting party shall present its evidence first.    5.4(2) Objectionable conduct during election campaigns.  The following types of activity, if conducted during the period beginning with the filing of an election petition with the agency or the agency’s filing of a notice of intent to conduct a retention and recertification election and ending at the conclusion of the election, if determined by the agency that such activity could have affected the results of the election, shall be considered to be objectionable conduct sufficient to invalidate the results of an election:    a.    Electioneering within 300 feet or within sound of the polling place established by the agency during the conduct of an in-person election;    b.    Misstatements of material facts by any party to the election or its representative without sufficient time for the adversely affected party to adequately respond;    c.    Any misuse of agency documents, including an indication that the agency endorses any particular choice appearing on the ballot;    d.    Campaign speeches by an employer to assembled groups of employees during working hours within the period beginning 24 hours before the opening of the polls in an in-person election, the mailing of ballots in a mail-ballot election, or the commencement of the telephonic/web-based election period and extending until the close of the in-person polls, the deadline for the agency’s receipt of mail ballots, or the close of the election period in a telephonic/web-based election;    e.    Any polling of employees by a public employer which relates to the employees’ preference for or against a bargaining representative;    f.    Commission of a prohibited practice;    g.    Any other misconduct or other circumstance which prevents employees from freely expressing their preferences in the election.

        ITEM 19.    Amend subrule 5.7(2) as follows:    5.7(2) Voter eligibility list.      a.    The public employer shall emailupload to suPERB the lists of employees in the professional and nonprofessional categories to the agency within seven days of the agency’s order. The lists shall be organized alphabetically and contain the names; addresses; email addresses, if known; telephone numbers, if known; and job classifications of the employees eligible to vote; and any other information required by the agency. The agency shall file the lists of eligible voters’ names and job classifications. These lists shall become the official voting lists for the election to be conducted. The agency shall provide to the employee organization the voter lists with the employees’ contact information.    b.    The employer or employee organization shall email proposedpropose in suPERB additions or deletions of employees’ names, changes in job classifications, addresses, contact information, or other eligible voter changes to the agency and other party. The parties may amend the lists by agreement.

        ITEM 20.    Amend subrule 5.8(2) as follows:    5.8(2) Voter eligibility list.  The public employer shall emailupload in suPERB the list of employees to the agency within seven days of the agency’s order. The list shall be organized alphabetically and contain the names; addresses; email addresses, if known; telephone numbers, if known; and job classifications of the employees eligible to vote; and any other information required by the agency. The agency shall file the list of eligible voters’ names and job classifications, which shall become the official voting list for the election to be conducted. The employer or employee organization shall email proposedpropose in suPERB additions or deletions of employees’ names, changes in job classifications, addresses, contact information or other eligible voter changes to the agency and other party. The parties may further amend the list by agreement.
    ARC 6923CRevenue Department[701]Notice of Intended Action

    Proposing rule making related to appeals, taxpayer representation, and administrative procedures and providing an opportunity for public comment

        The Revenue Department hereby proposes to amend Chapter 7, “Appeals, Taxpayer Representation, and Other Administrative Procedures,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 421.14, 421.59, 422.20 and 422.72.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 17A and sections 421.10, 421.14, 421.17, 421.60 and 422.28.Purpose and Summary    The proposed amendments accomplish a variety of objectives. The rule regarding applicability and scope is proposed to be amended in Item 1. Definitions are proposed to be amended in Item 2 to eliminate unnecessary duplication of statute. The list of tax types now available on GovConnectIowa is proposed to be updated in Item 3. Other amendments are proposed to add clarity. Changes to the Department’s rules on taxpayer representation are proposed to more clearly describe the Department’s signature requirements, to modify the Department’s procedures related to tax returns of minors, and to add clarity to the rules. Amendments to the Department’s rules on motions to redact identifying details are proposed to correct an error and to clarify hearing procedures related to such motions. Rules 701—7.9(17A) and 701—7.12(17A,421) are proposed to be amended to simplify the procedures related to untimely appeals, appeals filed in the improper format, and appeals with no statutory basis to eliminate the need for taxpayers to file a separate application for reinstatement for untimely appeals and to more closely resemble the processes utilized for late-filed cases in other administrative or judicial settings. Other amendments are proposed to multiple rules to reflect the use of electronic service by the Administrative Hearings Division of the Department of Inspections and Appeals. Finally, amendments are proposed to rule 701—7.19(17A) to ensure matters that a taxpayer seeks to appeal to the district court are first appealed to the Director to exhaust administrative procedures and ensure the Department’s final order reflects the position of the Director rather than that of an administrative law judge.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).Public Comment    Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on March 14, 2023. Comments should be directed to:Alana Stamas Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50319 Phone: 515.350.3932 Email: alana.stamas@iowa.govPublic Hearing    If requested, a public hearing at which persons may present their views orally or in writing will be held as follows:March 24, 2023 10 to 11 a.m.Via video/conference call    Persons who wish to participate in the video/conference call should contact Alana Stamas before 4:30 p.m. on March 22, 2023, to facilitate an orderly hearing. A video link and conference call number will be provided to participants prior to the hearing.    Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.    Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Amend rule 701—7.1(421,17A) as follows:

    701—7.1(421,17A) Applicability and scope of rules.  These rules are designed to implement the requirements of the Iowa administrative procedure Act and aid in the effective and efficient administration and enforcement of the tax laws of this state and other activities of the department. These rules shall govern the practice, procedure, and conduct of the informal proceedings, contested case proceedings, licensing, rule making, requests for waiver of rules, and declaratory orders involving taxation and other areas within the department’s jurisdiction.The rules in this chapter apply to all informal proceedings, contested case proceedings, licensing, rule making, requests for waiver of rules, and declaratory orders pending or commenced on or after their effective date.       This rule is intended to implement Iowa Code chapter 17A.

        ITEM 2.    Amend rule 701—7.2(421,17A), definitions of “Contested case,” “Department,” “Motion,” “Provision of law” and “Rule,” as follows:        "Contested case" means a proceeding, including licensing, in which the legal rights, duties or privileges of a party are required by constitution or statute to be determined by an agency after an opportunity for an evidentiary hearingthe same as defined in Iowa Code section 17A.2(5). This term also includes any matter defined as a no factual dispute contested case as provided in Iowa Code section 17A.10A.        "Department" "IDR" means the Iowa department of revenue.        "Motion" has the same meaning as the term ismeans the same as defined in Iowa R. Civ. P.Rule of Civil Procedure 1.431.        "Provision of law" means the whole or part of the Constitution of the United States of America or the Constitution of the State of Iowa, or of any federal or state statute, court rule, executive order of the governor, or rule of the departmentsame as defined in Iowa Code section 17A.2(10).        "Rule" means a department statement of general applicability that implements, interprets, or prescribes law or policy, or that describes the organization, procedure, or practice requirements of the department. Notwithstanding any other statute, the term includes an executive order or directive of the governor which creates an agency or establishes a program or which transfers a program between agencies established by statute or rule. The term includes the amendment or repeal of an existing rule, but does not include the excluded items set forth inthe same as defined in Iowa Code section 17A.2(11).

        ITEM 3.    Amend paragraph 7.3(1)"a" as follows:    a.    By submitting through GovConnectIowa. As of November 15, 202114, 2022, GovConnectIowa is available for filing petitions for declaratory order, petitions for rule making, and petitions for rule waiver for all tax types, but is only available for filing appeals for the following tax types: sales, consumers/retailers use, E911, withholding, motor fuel, hotel/motel, local option sales, automobile rental, and water service excise,corporation income, S corporation income, partnership income, franchise, and tax credits and distributions associated with these tax types.

        ITEM 4.    Amend subrule 7.3(3) as follows:    7.3(3) Service by the department.  All noticesor documents requiredor permitted by this chapter to be served on parties or persons by the department or presiding officer that are not currently pending before an administrative law judge shall be served by ordinary mail unless the taxpayer has elected to receive communications exclusively through GovConnectIowa, pursuant to rule 701—8.6(421). For taxpayers registered in GovConnectIowa, posting the document in the taxpayer’s GovConnectIowa account constitutes service or notice of the document. For taxpayer representatives registered in GovConnectIowa, posting the document in the taxpayer representative’s GovConnectIowa account constitutes service or notice of the document. For nonregistered taxpayers ornonregistered taxpayer representatives, documents will be served by ordinary mail. When this nonregistered mailing is required, however, the department may note on the docket the parties served and the method of service instead of filing a certificate of service. With respect to any notice, correspondence, or communication served electronically, response deadlines shall be calculated from the date the taxpayer is notified electronically of the correspondence or the item is mailed, whichever is earlier.

        ITEM 5.    Amend paragraph 7.6(1)"a" as follows:    a.    If a taxpayer wishes to have any other individual or individuals act on the taxpayer’s behalf in matters before the department, the taxpayer must file with the department an Iowa department of revenue (IDR) power of attorney form, as described in subrule 7.6(5), authorizing that individual to do so. Even if an individual desires to represent a taxpayer only through correspondence with the department but does not intend to personally appear before the department in a hearing or conference, the taxpayer must submit an IDR power of attorney form appointing that individual to act on the taxpayer’s behalf.

        ITEM 6.    Amend subrule 7.6(3) as follows:    7.6(3) Submitting a form.      a.    Submit separately.An IDR power of attorney form or representative certification may not be submitted as an attachment to a tax return except as provided by these rules. A power of attorney form or representative certification form must be submitted separately to the department in accordance with the submission instructions on the form(s).    b.    Original or electronic forms accepted.The department may accept either an original form, an electronically scanned and transmitted form, or a copy of a form. A copy received by facsimile transmission (fax) or email may be accepted. All copies, facsimiles, and electronically scanned and transmitted forms must include a valid signature meeting the requirements of rule 701—8.2(17A,421) of the taxpayer to be represented.    c.    Timely submission.The form must be submitted within six months of the date of signature, or it will be considered invalid.    d.    Appointment of a representative via another form.The department designates certain returns or other departmental forms on which a taxpayer may appoint a representative.    e.    Signature.The signature on the form must be a handwritten signature, a digital signature with a digital certificate, or a signature otherwise accepted by the IRS for purposes of third-party authorization.

        ITEM 7.    Amend subrule 7.6(4) as follows:    7.6(4) Communications with represented taxpayers.  Any notice or other written communication (or copy thereof) from the department provided to the representative, where required or permitted to be given to the taxpayer in any matter before the department, will be given to the taxpayeras well.

        ITEM 8.    Amend subrule 7.6(5) as follows:    7.6(5) Powers of attorney.  Individuals appointed by a taxpayer to represent the taxpayer must file an IDR power of attorney form.    a.    Individuals who may execute an IDR power of attorney form.The individualIndividuals who mustare permitted to execute an IDR power of attorney form isare as follows:    (1)   Individual. In matters involving an individual taxpayer, an IDR power of attorney form must be signed by the individual or an authorized representative.    (2)   Joint or combined returns. In matters involving a joint return or married taxpayers who have elected to file separately on a combined return, each taxpayer must complete and submit the taxpayer’s own IDR power of attorney form, even if the taxpayers are represented by the same appointee(s). In any matter concerning a joint return or married taxpayers who have elected to file separately on a combined return, in which the two taxpayers are not to be represented by the same representative(s), the authorized representative of suchone spouse cannot perform any act with respect to a tax matter that the spouse represented cannot perform alone.    b.    Contents of the IDR power of attorney form.An IDR power of attorney form must contain the following information to be valid:    (1)   Legal name and address of the taxpayer;    (2)   Identification number of the taxpayer (i.e., social security number (SSN), federal identification number (FEIN), or any federal- or Iowa-issued tax identification number);    (3)   Name, mailing address, and identification number of the representative (i.e., preparer’s tax identification number (PTIN), FEIN, SSN,centralized authorization file (CAF) number, or any federal- or Iowa-issued tax identification number) or an indication that an issued account number (IAN) is being requested;     (4)   Description of the matter(s) for which representation is authorized, which may include:    1.   The type of tax(es) involved or an indication that all tax types are within the scope of authority. If the tax type field is left blank, all tax types will be included within the scope of the representative’s authority;    2.   The specific year(s) or period(s) involved, or an indication that the scope is unlimited (not to exceed three years into the future beyond the signature date) and Iowa tax permit number, or an indication that all tax types are within the scope of authority;    3.   Iowa tax permit number;    (5)   A clear expression of the taxpayer’s intention concerning any restrictions to the scope of authority granted to the recognized representative(s) as provided in subrule 7.6(2).    (6)   A valid signature meeting the requirements of rule 701—8.2(17A,421) of an individual listed in paragraph 7.6(5)“a.”A signature on the form, which must be a handwritten signature, a digital signature with a digital certificate, or a signature otherwise accepted by the IRS for purposes of third-party authorization.    (7)   Any other information required by the department.    c.    Authorization period for an IDR power of attorney form.    (1)   An IDR power of attorney form may not be used to authorize representation for tax periods that end more than three years after the date on which the IDR power of attorney form is signed by the taxpayer. The authority granted may concern an unlimited number of tax periods which have ended prior to the date on which the IDR power of attorney form is received by the department; however, tax periods must be stated if the intention is to limit the periods. If the tax period section is left blank, all tax periods, including those ending up to three years in the future, are included.    (2)   The authority granted by an IDR power of attorney form ceases to be effective for tax periods as defined in subparagraph 7.6(5)“c”(1) upon revocation by the taxpayer, incapacity of the taxpayer, death of the taxpayer, or withdrawal, death, or incapacity of the individual granted power of attorney authority.    d.    Evaluation of documentation provided.The department will evaluate the IDR power of attorney form and any additional documentation to confirm authority. Authority to act before the department shall only cover those matters and time frames covered by the submitted documentation. The party claiming authority to act before the department on behalf of a taxpayer shall have the burden to prove, to the satisfaction of the department, the existence and extent of the claimed authority.    e.    Revocation and withdrawal.    (1)   Revocation by the taxpayer.    1.   By written statement. By filing a statement of revocation with the department, a taxpayer may revoke authority granted by an IDR power of attorney form without authorizing a new representative. The statement of revocation must indicate that the authority of the previous representative is revoked and must be signed by the taxpayer. Also, the name and address of each representative whose authority is revoked must be listed (or a copy of the prior IDR power of attorney form must be attached). If the writing indicates that authorization should be revoked from “all” authorized representatives, this will apply to all representatives appointed via an IDR power of attorney form or an entity representative form.    2.   By filing a new IDR power of attorney form. Filing a new IDR power of attorney form for a particular tax type(s) and tax period(s) automatically revokes a previously granted power of attorney authority for that tax type(s) and tax period(s). For a previously designated authorized representative to remain as the taxpayer’s authorized representative when a subsequent IDR power of attorney form is filed, the taxpayer must include the representative on the newly submitted IDR power of attorney form. This rule applies regardless of whether the power of attorney authority is authorized by an IDR power of attorney form or on a return as described in subrule 7.6(7). This subrule does not apply to entities appointed asauthorized entity representatives under subrule 7.6(9).    (2)   Withdrawal by the representative. By filing a statement with the department, a representative may withdraw from representation in a matter in which an IDR power of attorney form has been filed. The statement must be signed by the representative and must identify the name, identification number, and address of the taxpayer(s); the name, address and identification number of the representative withdrawing; and the matter(s) from which the representative is withdrawing. A representative may withdraw from multiple matters by including with the statement a list of all matters and taxpayers for which withdrawal is desired.    (3)   Administrative revocation by the department. The department may administratively revoke a power of attorney or representative certification authority.

        ITEM 9.    Amend paragraph 7.6(6)"b" as follows:    b.    Contents of the representative certification form.The representative certification form must include the following information:    (1)   Legal name and address of the taxpayer;    (2)   Identification number of the taxpayer (i.e., SSN, FEIN, or any federal- or Iowa-issued tax identification number relative to matters covered by the IDR power of attorney form);    (3)   Name, mailing address, and identification number (i.e., SSN, CAF number, or any federal- or Iowa-issued tax identification number) of the representative. If the identification number is left blank, a new IAN will be assigned to the representative;    (4)   Proof of authority must be included with the form as follows:    1.   Durable power of attorney or general power of attorney other than an IDR power of attorney form: a copy of the power of attorney document;    2.   Guardian, conservator, or custodian appointed by a court: documentation as required in Iowa Code section 421.59(2)“a”;    3.   Receiver appointed pursuant to Iowa Code chapter 680: a copy of the relevant court order(s);    4.   Individual holding one of the following titles within a corporation, association, partnership, or other entity:
  • Officer/employee of corporation/association: affirmation of authority to act on behalf of the corporation or association on the form designated by the department;
  • Designated partner authorized to act on behalf of a partnership: affirmation of authority to act on behalf of the partnership on the form designated by the department;
  • Individual authorized to act on behalf of a limited liability company in tax matters: affirmation of authority to act on behalf of the limited liability company on the form designated by the department;
  •     5.   Licensed attorney appearing on behalf of the taxpayer or the taxpayer’s estate in a court proceeding: a copy of the filed notice of appearance in the relevant court proceeding;    6.   Parent or guardian of minor taxpayer for whom the parent or guardian has signed the minor’s tax return: a copy of the return signed by the parent or guardianor proof of status as parent or guardian, such as birth certificate or equivalent document, stating parent and minor taxpayer’s names, as well as the minor taxpayer’s date of birth. By submitting a copy of a return signed by the parent or guardian, the parent or guardian will only have authority in relation to that return. Without other authorization, such as a court-ordered guardianship, a parent’s right to access a minor taxpayer’s account will cease when the minor taxpayer reaches majority;    7.   Governmental representative: affirmation of authority to act on behalf of the government entity on the form designated by the department;    8.   Executor or personal representative: a copy of the will or court order appointing the individual;     9.   Trustee: a copy of the certificate of trust, trust document, or court order appointing the representative;    10.   Successor of a very small estate under Iowa Code section 633.356(2): affirmation of authority to act on behalf of the estate on the form designated by the department;
        (5)   A valid signature meeting the requirements of rule 701—8.2(17A,421) of the representativeA signature of the representative on the form, which must be a handwritten signature, a digital signature with a digital certificate, or a signature otherwise accepted by the IRS for purposes of third-party authorization;    (6)   Any other information required by the department.

        ITEM 10.    Amend subrule 7.6(9) as follows:    7.6(9) Entities as authorized representatives.      a.    Appointment.    (1)   A taxpayer may authorize an entity to act on its behalf in tax-related matters by following the procedures described in this subrule in a manner approved by the department. By appointing an authorized entity representative, the taxpayer consents to the authorized entity representative, and any individuals submitted to the department by the authorized entity representative, as described in paragraph 7.6(9)“c,” sending and receiving the taxpayer’s information to and from the department and taking any other action described in these rules. By appointing an authorized entity representative, the taxpayer understands that the authorized entity representative is solely responsible for maintaining an accurate list of individuals allowed to act on the taxpayer’s behalf. The taxpayer agrees that any improper disclosure or use of the taxpayer’s information by the entity or entity’s current or former employees, agents, or contractors shall solely be the responsibility of the entity and the entity’s employees, agents, or contractors. The department shall not be liable for any acts or omissions of the entity or the entity’s employees, agents, or contractors.    (2)   The taxpayer’s consent must be in writing, in a form specified by the department, including a signature and date. The signature must be a handwritten signature, a digital signature with a digital certificate, or a signature otherwise accepted by the IRS for purposes of third-party authorization.    b.    Department approval of authorized entity representatives.    (1)   The department will review authorized entity representative appointments.    (2)   The department has the authority to approve, deny, or remove third-party access to any entity or individual employee upon review.    c.    Duties of the authorized entity representative.    (1)   The authorized entity representative shall be responsible for managing access for individual employees that it authorizes to act on behalf of the taxpayer in a manner defined by the department. The authorized entity representative shall provide the department a single point of contact for matters involving the entity’s status as an approved entity representative.    (2)   The authorized entity representative single point of contact must have a valid IA 2848 or representative certification form on file on behalf of the authorized entity representative.    (3)   The authorized entity representative will provide information regarding each individual employee authorized to act on behalf of the taxpayer as determined by the department. This information shall be used to identify the individual employee when contacting the department. The authorized entity representative shall maintain with the department an accurate and up-to-date list of individual employees that the authorized entity representative has authorized to act on a taxpayer’s behalf under this rule. The authorized entity representative shall remove any individuals from its list with the department as soon as an individual is no longer employed by the entity or is no longer authorized by the entity to act on behalf of a taxpayer. The authorized entity representative shall submit all information and changes to information to the department via GovConnectIowa.    (4)   The authorized entity representative shall be responsible for the actions taken by its employees, agents, and contractors on behalf of the taxpayer.    (5)   The authorized entity representative shall remain in good standing with the department.    d.    Powers authorized.An authorized entity representative may be granted any or all of the powers described in subrule 7.6(2). The taxpayer may restrict the authorized entity representative as described thereinand by tax type. If the tax type field is left blank, all tax types are included within the scope of the authorized entity representative’s authority.    e.    Contents of form.A valid IDR authorized entity representative form must contain the information specified in paragraph 7.6(5)“b.”    f.    Authorization period.    (1)   An authorized entity representative may be used to authorize representation for an unlimited number of tax periods prior to or following the date on which the form is received by the department. If the tax period is left blank, all tax periods are included.    (2)   At any time while the taxpayer has an effective authorized entity representative appointment filed with the department, the taxpayer consents to allowing the authorized entity representative and any individuals listed by the authorized entity representative, as described in paragraph 7.6(9)“c,” to send and receive the taxpayer’s information to and from the department and take any other action described in these rules.    (3)   The authority granted by an IDR power of attorney form ceases to be effective upon revocation by the taxpayer, or withdrawal or dissolution of the authorized entity representative. It is the sole responsibility of the taxpayer to revoke an authorized entity representative.    g.    Revocation and withdrawal.    (1)   Revocation by the taxpayer. Such appointment may be revoked by the taxpayer at any time, via GovConnectIowa or in writing to the department. The revocation must include the name and identification number of the taxpayer, the name of the representative entity, an indication of the wish to withdraw, and the taxpayer’s dated signature. If the revocation indicates that authorization should be revoked from “all” authorized representatives, this will apply to all representatives appointed via an IA 2848 or entity representative form.    (2)   Withdrawal by the authorized entity representative. By filing a statement with the department, an authorized entity representative may withdraw from representation appointed under this subrule. The statement must be signed by the authorized entity representative single point of contact and must identify the name and address of the taxpayer(s) and the matter(s) from which the authorized entity representative is withdrawing. An authorized entity representative may withdraw from multiple matters by including with the statement a list of all matters and taxpayers for which withdrawal is desired. Such statement shall be signed by the authorized entity representative single point of contact.    (3)   Administrative revocation by the department. The department may administratively revoke any entity representative authority.

        ITEM 11.    Amend paragraph 7.8(2)"b" as follows:    b.    Process for filing a motion for redaction of other details prior to the commencement of a contested case.Motions for redaction of other details from a pleading, exhibit, attachment, motion or written evidence filed prior to a contested case must be filed with the clerk of the hearings section of the department. The motion must be filed separately from the protestappeal described in subrule 7.8(6)7.9(6).

        ITEM 12.    Amend subrule 7.8(4) as follows:    7.8(4) Rulings.  Motions filed with the clerk of the hearings section will be ruled on by the directoror may be referred by the director to an administrative law judge. Motions filed with the administrative law judge will be ruled on by the administrative law judge. In the case of motions before the director prior to contested case proceedings, the department may respond in writing to a motion on the request of the director or upon the initiative by department staff.Oral argument, including a hearing, may be held at the discretion of the presiding officer. The presiding officer may choose to close a hearing or other proceeding that may otherwise be open to the public due to the confidential nature of information covered by the motion during the pending motion.

        ITEM 13.    Amend subrule 7.9(3) as follows:    7.9(3) Paying assessment in order to appeal refund claim denial.  Notwithstanding the above, the taxpayer who fails to timely appeal an assessment may contest the assessment by paying the whole assessed tax, interest, and penalty, and filing a refund claim within the time period provided by law for filing such claim. However, in the event that such assessment involves divisible taxes which are not timely appealed, namely, an assessment which is divisible into a tax on each transaction or event, the taxpayer may contest the assessment by paying a portion of the assessment and filing a refund claim within the time period provided by law. In this latter instance, the portion paid must represent any undisputed portion of the assessment and must also represent the liability on a transaction or event for which, if the taxpayer is successful in contesting the portion paid, the unpaid portion of the assessmentattributable to that specific type of transaction would be canceled. Flora v. United States, 362 U.S. 145, 4 L.Ed. 2d 623, 80 S.Ct.630 (1960); Higginbotham v. United States, 556 F.2d 1173 (4th Cir. 1977); Steele v. United States, 280 F.2d 89 (8th Cir. 1960); Stern v. United States, 563 F. Supp. 484 (D. Nev. 1983); Drake v. United States, 355 F. Supp. 710 (E.D. Mo. 1973). Any such appeal filed is limited to the issues covered by the amounts paid for which a refund was requested and denied by the department. Thereafter, if the department does not grant or deny the refund within six months of the filing of the refund claim or if the department denies the refund, the taxpayer may file an appeal as authorized by this rule.

        ITEM 14.    Amend subrule 7.9(5) as follows:    7.9(5) Who may be named in an appeal.  The appeal shall be brought in the name of the aggrieved taxpayer. The appeal may be filed by and in the name of the aggrieved taxpayer or by and in the name of the authorized representative described in Iowa Code section 421.59(2), Iowa Code chapter 633B, or subrule 7.6(6) legally entitled to institute a proceeding on behalf of the person, or by an intervenor in contested case proceedings. In the event of a discrepancy between the name set forth in the appeal and the correct name, a statement of the reason for the discrepancy shall be set forth in the appeal.

        ITEM 15.    Amend subrule 7.9(7) as follows:    7.9(7) Amendments.      a.    The taxpayer may amend the appeal at any time before a responsive pleading is filed. Amendments to the appeal after a responsive pleading has been filed may be allowedby the presiding officer with the consent of the other parties or at the discretion of the presiding officer who may impose terms or grant a continuance.     b.    The department may request that the taxpayer amend the appeal for purposes of clarificationor to comply with format requirements. If the taxpayer fails to amend the appeal within the time provided for in the department’s request, the department may move to dismiss the appeal under paragraph 7.12(3)“a.” Requests by the department to the taxpayer to amend the appeal after a responsive pleading has been filed may be allowed by the presiding officer with the consent of the other parties or at the discretion of the presiding officer who may impose terms or grant a continuance.

        ITEM 16.    Amend subrule 7.11(1) as follows:    7.11(1) Appeals section review.  WhenAfter an appeal is filed, the review unit, subject to the control of the director or the division administrator of the legal services and appeals division, will:    a.    Review and evaluate the validity of the appeal.    b.    Determine the correct amount of tax owing or refund due.    c.    Determine the best method of resolving the dispute between the taxpayer and the department.    d.    Take further action regarding the appeal, including any additions and deletions to the audit, as may be warranted by the circumstances to resolve the appeal, including a request for an informal conference.    e.    Determine whether the appeal complies with rule 701—7.9(17A) and request any amendments to the appeal or additional information.

        ITEM 17.    Rescind rule 701—7.12(17A,421) and adopt the following new rule in lieu thereof:

    701—7.12(17A,421) Dismissal of appeals.      7.12(1) Appeals filed after expiration of statutory deadline.  Appeals that are not filed by the deadline described in statute shall be dismissed by the director or the director’s designee in accordance with the procedure outlined in paragraph 7.12(1)“a.”    a.    Procedures for motions to dismiss.The department shall file a motion to dismiss with the clerk and serve a copy of the motion on the taxpayer. The taxpayer may file a resistance to the motion within 20 days of the date of service of the motion. If no resistance is so filed, the director or the director’s designee shall immediately enter an order dismissing the appeal. If a resistance is filed, the department has ten days from the date of the filing of the resistance to decide whether to withdraw its motion and so notify the taxpayer and the clerk. If no such notice is received by the clerk within the ten-day period, the appeal file will be transferred to the division of administrative hearings, which shall issue a notice for a contested case proceeding on the motion as prescribed by rule 701—7.16(17A), except that the issue of the contested case proceeding shall be limited to the question of whether the appeal was filed within the statutory appeal period. Thereafter, rule 701—7.19(17A) pertaining to contested case proceedings shall apply in such dismissal proceedings.    b.    Grounds for denying the department’s motion.The department’s motion shall be granted unless the taxpayer can prove that it filed the appeal prior to the expiration of the statutory appeal deadline because the department failed to:    (1)   Mail or personally deliver the notice of assessment, refund denial, or other notice of department action to the taxpayer’s last-known address; or    (2)   If applicable, also mail the notice of assessment, refund denial, or other notice of department action to the taxpayer’s authorized representative; or    (3)   Comply with the requirements of Iowa Code section 421.60(2)“b.”For purposes of this rule, “last-known address” and “personal delivery” mean the same as described in rule 701—7.33(421).    7.12(2) Appeals not authorized by statute.  Appeals that are not authorized by statute or otherwise are inconsistent with the statutory requirements for an appeal shall be dismissed by the director in accordance with the procedure outlined in paragraph 7.12(1)“a,” except that the issue shall be limited to the question of whether the appeal is authorized by statute and consistent with statutory appeal requirements.    7.12(3) Failure to pursue the appeal at the informal stage.  If the appeal was filed timely and informal procedures were initiated, the failure of the taxpayer to provide documents or information requested by the department, including the failure to respond to a position letter or an information request, shall constitute grounds for the department to dismiss the appeal in accordance with the procedure outlined in paragraph 7.12(3)“a.” For purposes of this subrule, an evasive or incomplete response will be treated as a failure to provide documents or information.    a.    Procedures for motions to dismiss.If the department seeks to dismiss the appeal, the department shall file a motion to dismiss with the clerk and serve a copy of the motion on the taxpayer. The taxpayer may file a resistance to the motion within 20 days of the date of service of the motion. If no resistance is so filed, the director or the director’s designee shall immediately enter an order dismissing the appeal. If a resistance is filed, the department has ten days from the date of the filing of the resistance to decide whether to withdraw its motion and so notify the taxpayer and the clerk. If no such notice is received by the clerk within the ten-day period, the appeal file will be transferred to the division of administrative hearings, which shall issue a notice for a contested case proceeding on the motion as prescribed by rule 701—7.16(17A), except that the issue of the contested case proceeding shall be limited to the question of whether the taxpayer failed to pursue the appeal, as that term is defined in this subrule. Thereafter, rule 701—7.19(17A) pertaining to contested case proceedings shall apply in such dismissal proceedings.    b.    Grounds for reinstatement of dismissed appeals.If a motion to dismiss is filed and is unresisted, the appeal that was dismissed may be reinstated by the director or the director’s designee for good cause if an application for reinstatement is filed with the clerk within 30 days of the date the appeal was dismissed. For purposes of this rule, “good cause” shall mean the same as “good cause” in Iowa Rule of Civil Procedure 1.977.    c.    Content and review of the application for reinstatement.The application shall set forth all reasons and facts upon which the taxpayer relies in seeking reinstatement of the appeal. Supporting documentation must be supplied. The department shall review and notify the taxpayer whether the application is granted or denied.    d.    Denial of the application.If the department denies the application to reinstate the appeal, the taxpayer has 30 days from the date the application for reinstatement was denied in which to request, in writing, a formal hearing on the reinstatement. The taxpayer shall send the written request to the clerk. When a written request for formal hearing is received, the appeal file will be transferred to the division of administrative hearings, which shall issue a notice as prescribed in rule 701—7.16(17A), except that the issue of the contested case proceeding shall be limited to the question of whether the taxpayer has good cause to reinstate the dismissed appeal. Thereafter, rule 701—7.19(17A) pertaining to contested case proceedings shall apply in such reinstatement proceedings. If the taxpayer does not respond to a denial of the application for reinstatement within 30 days of the denial, the director or the director’s designee will issue an order closing the appeal.    e.    Failure to file timely application for reinstatement.If an application for reinstatement is filed after the 30-day deadline, the application shall not be accepted by the director or director’s designee.    7.12(4) Dismissal of appeals during contested case proceedings.  Once contested case proceedings have been commenced, it shall be grounds for a motion to dismiss that a taxpayer has either failed to diligently pursue the appeal or has refused to comply with requests for discovery set forth in rule 701—7.17(17A). Such a motion must be filed with the presiding officer.       This rule is intended to implement Iowa Code sections 17A.12, 421.10, 421.60, and 422.28.

        ITEM 18.    Amend subrule 7.16(3) as follows:    7.16(3)   Contested case proceedings will be commenced by the presiding officer by delivery of notice by ordinary mailor electronic mail directed to the parties after a demand or request is made (a) by the taxpayer and the filing of the answer, if one is required, which demand or request may include a date to be set for the hearing, or (b) upon filing of the answer, if a request or demand for contested case proceedings has not been made by the taxpayer. The notice will be given by the presiding officer.

        ITEM 19.    Amend subrule 7.17(1) as follows:    7.17(1)   When the department relies on a witness in a contested case, whether or not the witness is a departmental employee, who has made prior statements or reports with respect to the subject matter of the witness’ testimony, the department shall, on request, make such statements or reports available to a party for use on cross-examination unless those statements or reports are otherwise expressly exempt from disclosure by constitution or statute. Identifiable departmentaldepartment records that are relevant to disputed material facts involved in a contested case shall, upon request, promptly be made available to the party unless the requested records are expressly exempt from disclosure by constitution or statute.

        ITEM 20.    Amend subparagraph 7.19(4)"d" as follows:    (2)   Evidence of a federal determinationof the taxpayer’s liability. Evidence of a federal determinationof the taxpayer’s liability such as a treasury department ruling, regulation or determination letterissued to the taxpayer; ataxpayer’s federal court decision; or an Internal Revenue Service assessmentissued to the taxpayer relating to issues raised in the proceeding shall be admissible, and the taxpayer shall be presumed to have conceded the accuracy of the federal determination unless the taxpayer specifically states wherein it is erroneous.

        ITEM 21.    Amend paragraph 7.19(7)"f" as follows:    f.    A decision denying a motion to vacate is subject to further appeal within the time limit allowed for further appeal of a decision on the merits in the contested case proceeding. A decision granting a motion to vacate is subject to interlocutory appeal by the adverseadversely affected party as provided in subrule 7.19(13).

        ITEM 22.    Amend paragraphs 7.19(8)"d" and 7.19(8)"h" as follows:    d.    When the director initially presides at a hearing or considers decisions on appeal from or review of a proposed decision by the presiding officer other than the director, the order becomes the final order of the department for purposes of judicial review or rehearing unless there is an appeal to or review on motion of a second agency within the time provided by statute or rule. When a presiding officer other than the director presides at the hearing, the order becomes the final order of the department for purposes of judicial review or rehearingand not subject to judicial review unless there is an appeal to or review on motion of the director within 30 days of the date of the order, including Saturdays, Sundays, and holidays as defined in Iowa Code section 421.9A, or 10 days, excluding Saturdays, Sundays, and holidays as defined in Iowa Code section 421.9A, for a revocation order pursuant to rule 701—7.39(17A). However, if the contested case proceeding involves a question of an award of reasonable litigation costs, the proposed order on the substantive issues shall not be appealable to or reviewable by the director on the director’s motion until the issuance of a proposed order on the reasonable litigation costs. If there is no such appealto or reviewby the director within 30 days or 10 days, whichever is applicable, from the date of the proposed order on reasonable litigation costs, both the proposed order on the substantive issues and the proposed order on the reasonable litigation costs become the final orders of the department for purposes of judicial review or rehearingand not subject to judicial review. On an appeal from, review of, or application for rehearing concerning the presiding officer’s order, the director has all the power which the director would initially have had in making the decision; however, the director will consider only those issues presented at the hearing before the presiding officer or raised independently by the presiding officer, including the propriety of and the authority for raising issues. The parties will be notified of those issues which will be considered by the director.    h.    Orders will be issued within a reasonable time after termination of the hearing. Parties shall be promptly notified of each order by delivery to them of a copy of the order by personal service, regular mail, certified mail, return receipt requested,AEDMS as described in 481—Chapter 16, or any other method to which the parties may agree. For example, a copy of the order can be submitted by electronic mail if both parties agree.

        ITEM 23.    Adopt the following new paragraph 7.19(8)"k":    k.    A party may not seek judicial review until the director has issued a final decision of the agency. If a party seeks judicial review of a proposed decision of an administrative law judge without appealing to the director or without review of the proposed decision by the director, the party shall be deemed to have failed to exhaust adequate administrative remedies.

        ITEM 24.    Amend subrule 7.29(7) as follows:    7.29(7) Action required.  Within 60 days after the filing of the petition, or within an extended period as agreed to by the petitioner, the department must, in writing, either: (a) deny the petition and notify the petitioner of the department’s action and the specific grounds for the denial; or (b) grant the petition and notify the petitioner that the department has instituted rule-making proceedings on the subject of the petition. The petitioner shall be deemed notified of the denial of the petition or the granting of the petition on the date that the department mails or delivers the required notification to the petitioner. All orders granting or denying a petition shall be submitted on the Internet site as prescribed in Iowa Code section 17A.9Ato the administrative rules review committee.

        ITEM 25.    Amend subrule 7.37(2) as follows:    7.37(2) Procedures.  Appeals will be governed by the procedures set forth in this rule together with the procedures set forth in the following rules:    a.    Subrules 7.3(2) and 7.3(3);    b.    Rule 701—7.7(17A);    c.    Rule 701—7.8(17A);    d.    The introductory paragraph of rule 701—7.9(17A) and subrule 7.9(7);    e.    Subrules 7.12(1), 7.12(2), and 7.12(6)7.12(4);    f.    Subrule 7.13(1);    g.    Subrules 7.14(1) to 7.14(3);    h.    Rule 701—7.15(17A);    i.    Rule 701—7.16(17A);    j.    Rule 701—7.17(17A);    k.    Rule 701—7.18(17A);    l.    Subrule 7.19(1); subrules 7.19(3) through 7.19(7); subrule 7.19(8), except paragraph 7.19(8)“b” related to costs shall not apply; additionally, Iowa Code section 421.60 shall not apply; subrules 7.19(9) and 7.19(13);    m.    Rule 701—7.20(17A);    n.    Rule 701—7.21(17A);    o.    Rule 701—7.22(17A); and    p.    Rule 701—7.23(17A).
    ARC 6922CRevenue Department[701]Notice of Intended Action

    Proposing rule making related to forms and communications and providing an opportunity for public comment

        The Revenue Department hereby proposes to amend Chapter 8, “Forms and Communications,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 422.14, 422.15, 422.16B, 422.36, 422.37 and 422.62.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 422.14, 422.15, 422.16B, 422.36, 422.37 and 422.62.Purpose and Summary    The proposed amendment adds a new method for the Department to provide relief from the requirement that certain taxpayers file Iowa income tax returns electronically. The existing subrule offers relief only when a taxpayer requests it for good cause, and the subrule specifies that inadequate return preparation software would never be considered good cause. The Department has since encountered a scenario in which a legal requirement changed and required an update to forms after the electronic tax forms had been developed for the year. As a result of this change to the forms, no software provider will be able to offer an electronic version of the affected form that reflects the change. The proposed amendment allows the Department to provide blanket relief from the electronic filing requirement to taxpayers who are required to use the affected form, either by providing an exception in the instructions for obtaining relief on the affected form itself or by the issuance of an order by the Director granting such relief.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A). Public Comment     Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on March 14, 2023. Comments should be directed to: Benjamin Clough Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.587.0662 Email: ben.clough@iowa.gov Public Hearing     If requested, a public hearing at which persons may present their views orally or in writing will be held as follows: March 14, 2023 10 to 11 a.m. Via video/conference call     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.     Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

        ITEM 1.    Amend subrule 8.7(5) as follows:    8.7(5) Exceptions.  At the department’s discretion, exceptions to the electronic filing requirement under this rule may be granted for good cause. The taxpayer bears the burden to prove that good cause exists for the failure to file electronically. AExcept as provided in paragraph 8.7(5)“b,” a claim that the return preparation software purchased or licensed by a taxpayer or taxpayer’s return preparer does not include all of the features necessary to comply with the taxpayer’s Iowa filing obligations shall not be considered good cause for purposes of granting an exception to the electronic filing requirement.    a.    Requests for exceptions to the electronic filing requirement.    (1)   Form of request. Requests for exceptions to the electronic filing requirement must be submitted by mail or online through GovConnectIowa on forms provided by the department.    (2)   Timing of request. Requests for exceptions to the electronic filing requirement must be submitted before the return is filed.    (3)   Department determination. The department will notify the taxpayer in writing whether a request for an exception to the electronic filing requirement has been approved or denied. If the department does not respond to a taxpayer’s valid request for an exception to the electronic filing requirement within 90 days of the date the request is received, the request shall be deemed accepted.    (4)   Applicability of exception. An exception to the electronic filing requirement, if granted, shall only be valid for the tax year for which it was approved.    b.    Special relief provided by the department.The department may, at its discretion, offer a good-cause exception to the electronic filing requirement for filers of a specific return type or form for a specific filing period by providing such an exception in the instructions for that return type or form or by an order issued by the director. Taxpayers must comply with all instructions provided by the department in order to qualify for relief.     b.    c.    Temporary one-time relief.For tax years ending on or before December 31, 2023, if the department determines a taxpayer that filed a paper return was required to file in an electronic manner as provided in this rule, the department will notify the taxpayer in writing of the requirements of this rule. If the taxpayer properly files in an electronic manner within 30 days of the date of the notification under this paragraph, the department shall grant an exception to the requirements of this rule and deem the originally filed paper return a valid return. A taxpayer shall only be granted the benefit of this paragraph for one eligible return.
    ARC 6924CRevenue Department[701]Notice of Intended Action

    Proposing rule making related to food or food ingredients and providing an opportunity for public comment

        The Revenue Department hereby proposes to amend Chapter 215, “Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 421.14.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 423.3 as amended by 2022 Iowa Acts, Senate File 2367.Purpose and Summary    The Department previously adopted rule 701—215.2(423) to implement an exemption found in Iowa Code section 423.3(49) for manufacturers of “marketable food products for human consumption.” Senate File 2367, division VIII, amended that exemption, such that it now applies to manufacturers of “food or food ingredients.” The Department now proposes to amend the rule implementing that exemption so that it conforms to the statutory change. The Department also proposes to add several examples to the rule to illustrate situations where manufacturers may or may not be eligible to claim the exemption for eligible purchases based on the product being manufactured.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa beyond that of the legislation it seeks to implement. The Legislative Services Agency estimated division VIII of Senate File 2367 would result in a $4.2 million reduction to the General Fund, $0.8 million reduction to Securing an Advanced Vision for Education revenue, and $0.8 million reduction to local option sales tax revenues in fiscal year 2023.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).Public Comment     Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on March 14, 2023. Comments should be directed to: Tim Reilly Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.782.0535 Email: tim.reilly@iowa.govPublic Hearing     A public hearing at which persons may present their views orally or in writing will be held as follows: March 14, 2023 11 a.m. to 12 noon Hoover State Office Building Des Moines, Iowa     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.     Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

        ITEM 1.    Amend rule 701—215.2(423) as follows:

    701—215.2(423) Carbon dioxide in a liquid, solid, or gaseous form, electricity, steam, and taxable services used in processing.  An expanded definition of “processing” is allowed to manufacturers of food products for human consumptionor food ingredients using carbon dioxide in a liquid, solid, or gaseous form, electricity, steam, and taxable services. For the purposes of this rule, the rental or leasing of tangible personal property is treated as the furnishing of a taxable service and not as the sale of tangible personal property.    215.2(1)   “Marketable food products for human consumption” means products intended to be sold ultimately at retail as items which furnish energy, sustain growth, support vital processes in the human body, and are final products ready for and capable of consumption without the need for further processing after being sold to the purchaser. “Marketable food products for human consumption” includes food products traditionally accepted and sold as food products and products that have been enhanced or compounded with nutritional elements. “Marketable food products for human consumption” does not include medicines or dietary or food supplements. A product that may be consumed by a human but is sold for other purposes is not a marketable food product for human consumption.“Food or food ingredients” means the same as defined in Iowa Code section 423.3(49)“b.” This means that for purposes of this exemption, “food or food ingredients” means the same as defined in Iowa Code section 423.3(57)“d” and implemented by rule 701—220.3(423) but also includes tangible personal property that could be sold for ingestion or chewing by humans but is sold for another use.    a.    Certain entities eligible.An entity that processes a product owned by another entity is eligible for this exemption, subject to satisfying the other requirements to properly claim the exemption.     b.    Determination.The burden is on the taxpayer seeking to claim this exemption to establish a product is a marketable food product for human consumptionfood or food ingredient for purposes of this exemption. The department’s determination shall be a fact-based determination based on the information provided by a manufacturer and the individual circumstances at issue.    215.2(2)   The following activities constitute processing when performed by a manufacturer to create food products for human consumptionor food ingredients. Any carbon dioxide in a liquid, solid, or gaseous form, electricity, steam, or other taxable services primarily used in the performance of these activities is exempt from tax.    a.    Treatment of material that changes its form, context, or condition in order to produce a marketable food product for human consumptionthe food or food ingredient. “Special treatment” of the material to change its form, context, or condition is not necessary to lawfully claim the exemption. Examples of “treatment” which would not be “special” are the following: the washing, sorting and grading of fruits or vegetables; the washing, sorting, and grading of eggs; and the mixing or agitation of liquids. By way of contrast, sterilization would be “special treatment.”    b.    Maintenance of the quality or integrity of the food productor food ingredient and the maintenance or the changing of temperature levels necessary to avoid spoilage or to hold the foodor food ingredient in marketable condition. Any carbon dioxide in liquid, solid, or gaseous form, electricity, steam, or other taxable service used in freezers, heaters, coolers, refrigerators, or evaporators used in cooling or heating which holds the food productor food ingredient at a temperature necessary to maintain quality or integrity or to avoid spoilage of the foodor food ingredient or to hold the food productor food ingredient in marketable condition is exempt from tax. It is not necessary that the taxable service be used to raise or lower the temperature of the foodor food ingredient. Also, processing of food products for human consumptionor food ingredients does not cease when the food productor food ingredient is in marketable form. Any carbon dioxide in liquid, solid, or gaseous form, electricity, steam, or taxable service used to maintain or to change a temperature necessary to keep the productfood or food ingredient marketable is exempt from tax.    c.    Any carbon dioxide in liquid, solid, or gaseous form, electricity, steam, or other taxable service primarily used in the maintenance of environmental conditions necessary for the safe or efficient use of machinery or material used to produce the food productor food ingredient is exempt from tax. For example, electricity used to air-condition a room in which meat is stored is exempt from tax if the purpose of the air conditioning is to maintain the meat in a condition in which it is easy to slice rather than for the comfort of the employees who work in the room.    d.    Any carbon dioxide in liquid, solid, or gaseous form, electricity, steam, or taxable service primarily used in sanitation and quality control activities is exempt from tax. Nonexclusive examples exempt from tax include taxable services used in pH meters, microbiology counters and incubators used to test the purity or sanitary nature of athe food productor food ingredient. For example, electricity used in egg-candling lights would be exempt from tax. Also, electricity, steam, or any taxable service used to power equipment which cleans and sterilizes food production equipment would be exempt from tax. Electricity used to power refrigerators used to store foodor food ingredient samples for testing would be exempt from tax. Finally, electricity used to power “bug lights” or other insect-killing equipment used in areas where food productsor food ingredients are manufactured or stored would be exempt from tax.    e.    Any carbon dioxide in liquid, solid, or gaseous form, electricity, steam, or taxable service used in the formation of packaging for marketable food products for human consumptionfood or food ingredients is exempt from tax. For example, electricity used in plastic bottle-forming machines by a food manufacturer is exempt from tax if the plastic bottles will be used to hold a marketable food productthe food or food ingredient, such as milk. Any electricity, steam, or other taxable service used in the heating, compounding, liquefying and forming of plastic pellets into these plastic bottles is exempt.    f.    Any carbon dioxide in liquid, solid, or gaseous form, electricity, steam, or taxable service used in placement of the food productor food ingredient into shipping containers is exempt from tax. For example, electricity used by a food manufacturer to place food productsor food ingredients into packing cases, pallets, crates, shipping cases, or other similar receptacles is exempt.    g.    Any carbon dioxide in liquid, solid, or gaseous form, electricity, steam, or taxable service used to move material which will become a marketable food productfood or food ingredient or used to move the marketable food productfood or food ingredient itself until shipment from the building of manufacture is exempt from tax. This includes, but is not limited to, taxable services used in pumps, conveyors, forklifts, and freight elevators moving the material orthe food productor food ingredient and taxable services used in door openers which open doors for forklifts or other devices moving the material or productthe food or food ingredient. Any loading dock which is attached to a building of manufacture is a part of that building. Any electricity, steam, or taxable service used to move any food productsor food ingredient to a loading dock is exempt from tax. If athe food productor food ingredient is carried outside its building of manufacture by any conveyor belt system, electricity used by any portion of the system located outside the building is taxable.       This rule is intended to implement Iowa Code section 423.3(49).
    ARC 6920CRevenue Department[701]Notice of Intended Action

    Proposing rule making related to sales tax exemption for diapers and providing an opportunity for public comment

        The Revenue Department hereby proposes to amend Chapter 220, “Exemptions Primarily of Benefit to Consumers,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 421.14.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 423.3 as amended by 2022 Iowa Acts, Senate File 2367.Purpose and Summary    The Iowa Legislature enacted a sales tax exemption for diapers in 2022 Iowa Acts, Senate File 2367, division II, which took effect January 1, 2023. New Iowa Code section 423.3(109) specifically exempts from sales tax “[t]he sales price from the sale of a child or adult diaper, whether cloth or disposable.” Since the statute does not define the word “diaper,” to avoid any confusion about what is exempt as a diaper, the Department proposes this new rule to define “diaper” in accordance with the definition adopted by the Streamlined Sales Tax Governing Board, of which Iowa is a member state.Fiscal Impact     This rule making does not have any fiscal impact beyond the statute it seeks to implement. The Legislative Services Agency’s fiscal analysis for Senate File 2367, division II, estimates a reduction to General Fund revenue in FY 2023 of $4.7 million, which increases to $9.5 million in FY 2024, the first full fiscal year of the new exemption. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).Public Comment     Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on March 14, 2023. Comments should be directed to: Tim Reilly Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.782.0535 Email: tim.reilly@iowa.gov Public Hearing    If requested, a public hearing at which persons may present their views orally or in writing will be held as follows: March 14, 2023 9 to 10 a.m. Room 1 NW Hoover State Office Building Des Moines, Iowa     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.     Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

        ITEM 1.    Adopt the following new rule 701—220.17(423):

    701—220.17(423) Sales of diapers.      220.17(1) In general.  The sales price of diapers, whether cloth or disposable, is exempt from sales tax. This includes children’s diapers and adult diapers.    220.17(2) Definitions.          "Adult diapers" means diapers other than children’s diapers.        "Children’s diapers" means diapers marketed to be worn by children.        "Diaper" means an absorbent garment worn by humans who are incapable of, or have difficulty, controlling their bladder or bowel movements.       This rule is intended to implement Iowa Code section 423.3(109).
    ARC 6921CRevenue Department[701]Notice of Intended Action

    Proposing rule making related to electric fuel excise tax and providing an opportunity for public comment

        The Revenue Department hereby proposes to renumber Chapter 262, “Administration of Marijuana and Controlled Substances Stamp Tax,” as Chapter 269 and to adopt a new Chapter 262, “Electric Fuel Excise Tax,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 452A.59 as amended by 2019 Iowa Acts, House File 767.State or Federal Law Implemented    This rule making implements, in whole or in part, 2019 Iowa Acts, House File 767.Purpose and Summary    The Department proposes this rule making to implement the excise tax on electric fuel, enacted by the Iowa Legislature in 2019 Iowa Acts, House File 767, that will become effective July 1, 2023. These proposed rules provide guidance as to what entities need to obtain a license to sell or dispense electric fuel either as a user, dealer, or both. The rules make clear that all administration of this excise tax—license registration, return filing, tax payments, and claims for refunds—will be handled electronically through GovConnectIowa.     The Department shared an early draft of these rules with stakeholders and incorporated many suggested changes into this Notice of Intended Action. The Department intends for these rules to take effect on July 1, 2023, in conjunction with the effective date of the excise tax on electric fuel.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa beyond the legislation it is intended to implement. The Legislative Services Agency estimated that the portions of 2019 Iowa Acts, House File 767, implementing the new electric fuel excise tax would raise $160,000 in Road Use Tax Fund revenue for fiscal year 2024 and decrease General Fund revenue by $37,000 due to the exemption from sales and use tax for electricity sold as electric fuel.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A). Public Comment     Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on March 14, 2023. Comments should be directed to: Tim Reilly Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.782.0535 Email: tim.reilly@iowa.gov Public Hearing     A public hearing at which persons may present their views orally or in writing will be held as follows: March 14, 2023 10 to 11 a.m. Room 1 NW Hoover State Office Building Des Moines, Iowa     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.     Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Amend rule 701—260.13(452A) as follows:

    701—260.13(452A) Reduction of refund—sales and use tax.  Under Iowa Code section 423.3(56), the sales price from the sale of motor fuel,and special fuel, and electric fuel consumed for highway use or in watercraft or aircraft where the fuel tax has been imposed and paid, and no refund has been or will be allowed, is exempt from Iowa sales and use tax. Therefore, unless the fuel is used for some other exempt purpose under Iowa Code section 423.3 (e.g., used for processing, used for agricultural purposes, used by an exempt government entity, used by a private nonprofit educational institution), or the fuel is lost through a casualty, the refund of taxes on motor fuel,or special fuel, or electric fuel will be reduced by the applicable sales and use tax. See sales tax rule 701—18.37(422,423)Rule 701—220.2(423) contains more information about sales tax. The sales price upon which the sales and use tax will be applied shall include all federal excise taxes, but will not include the Iowa fuel tax.        This rule is intended to implement Iowa Code section 452A.17.

        ITEM 2.    Renumber 701—Chapter 262 as 701—Chapter 269.

        ITEM 3.    Adopt the following new 701—Chapter 262: CHAPTER 262ELECTRIC FUEL EXCISE TAX

    701—262.1(452A) Tax imposed.  Electric fuel excise tax must be remitted to the department by a licensed electric fuel dealer or licensed electric fuel user regardless of whether the licensed electric fuel dealer or licensed electric fuel user sells the fuel or gives the fuel to customers for no charge. This tax shall be calculated based on the kilowatt-hours of electric fuel delivered.       This rule is intended to implement Iowa Code section 452A.41.

    701—262.2(452A) Licensing.      262.2(1) License requirements.      a.    License required.A person shall not sell or dispense electric fuel within this state at a location other than a residence or otherwise act as a licensed electric fuel dealer or user without a license. The holder of an electric fuel user’s license is authorized to dispense electric fuel, measured in kilowatt-hours, into the batteries or other energy storage devices of electric motor vehicles owned or controlled by the holder.    b.    No license required for residential charging.A person may dispense electric fuel at a residence without a license. “Residence” is defined in Iowa Code section 452A.40. For purposes of this rule, “residence” includes apartment buildings or other multiresidential facilities and houses regardless of whether the owner lives in the house. “Residence” does not include hotels, including extended-stay hotels, motels, or other facilities rented to transient guests.    262.2(2) License applications.  Applications for a license must be filed electronically via GovConnectIowa and must be complete with all information required under Iowa Code section 452A.42(2). Applications must indicate the date on which the applicant began or plans to begin selling or dispensing electric fuel.    262.2(3) Electric fuel users.  An electric fuel user’s license does not grant authority to the holder of the license to sell or dispense electric fuel to consumers. A person wishing to sell or dispense fuel for vehicles the person owns or controls as well as to a consumer shall obtain both an electric fuel user’s license and an electric fuel dealer’s license for each location from which electric fuel will be sold or dispensed.     262.2(4) No fee imposed.  There is no fee to apply for or hold a license to sell or dispense electric fuel.    262.2(5) License for each place of business or location.  A license is required for each separate place of business or location where electric fuel is placed into the battery or other storage device of an electric vehicle.    262.2(6) Denial of license application.  The department may deny a license for any of the reasons provided in Iowa Code section 452A.42(4).    262.2(7) Bonding procedures.  Existing license holders may be requested to post a bond or security when they have had two or more delinquencies in remitting the electric fuel tax or filing returns timely during the past 12 months. The bond or security will be an amount sufficient to cover 12 months’ electric fuel tax liability or $500, whichever is greater. The simultaneous late filing of the return and late payment of the tax will count as one delinquency. However, the late filing of the return or late payment of the tax will not count as a delinquency if the license holder can satisfy one of the penalty waiver conditions set forth in Iowa Code section 421.27. More information regarding waiver of bond is available in 701—paragraph 259.21(1)“e.”       This rule is intended to implement Iowa Code section 452A.42.

    701—262.3(452A) Filing of returns and payment of tax.      262.3(1) Required information on returns.  Licensed dealers and users of electric fuel must file with the department a biannual electric fuel excise tax return showing for each location where electric fuel is placed into the battery or other storage device of an electric vehicle the following information:    a.    The name and license number of the entity that owns the charging facility.    b.    In the case of a sole proprietorship, the individual owner’s name.    c.    In the case of a partnership, the names of all partners.    d.    The location of the facility.    e.    Total number of kilowatt-hours delivered or placed into the battery or other storage device of an electric vehicle.    262.3(2) Return and payment due date.  The electric fuel excise tax return shall be filed with the department no later than the last date of the month following the close of the tax periods prescribed in Iowa Code section 452A.41. The return shall be accompanied by remittance of the tax due for the period of the return.    262.3(3) Electronic filing required.  Returns must be filed and payments are to be remitted electronically through govconnect.iowa.gov.     262.3(4) Consolidated return.  A license holder holding more than one license of each license type shall file one consolidated return reporting sales made at all locations for which a license is held. A license holder cannot combine tax owed as both an electric fuel dealer and an electric fuel user on one consolidated return.     262.3(5) International Fuel Tax Agreement returns not impacted.  The electric fuel excise tax return is separate and independent from the tax returns required under the International Fuel Tax Agreement.       This rule is intended to implement Iowa Code section 452A.41.

    701—262.4(452A) Charging station verification and testing.      262.4(1) Reporting of kilowatt-hours.      a.    Licensed dealers and users may rely upon the following methods to determine kilowatt-hours sold for reporting on a return:    (1)   Electric meters on which only electricity sold as electric fuel is measured.    (2)   Software included in a charging station that tracks kilowatt-hours that flow through the station.    b.    If neither subparagraph 262.4(1)“a”(1) or 262.4(1)“a”(2) is available, prior to filing any returns, licensed dealers and users shall contact the department for approval of a method to calculate electricity used as electric fuel as determined by an electricity study.     262.4(2) Testing of charging stations.  The department or another entity in agreement with the department may verify through independent testing the accuracy and functionality of charging stations and meters.       This rule is intended to implement Iowa Code section 452A.41.

    701—262.5(452A) Refunds.      262.5(1) Filing of refund claim.  Taxpayers seeking to claim a refund of electric fuel tax must obtain a refund permit pursuant to Iowa Code section 452A.44. Because returns will be filed and tax paid on a biannual basis, refund claims may be filed and will only be processed on a biannual basis after the tax period for which the refund is sought has closed.    262.5(2) Sales tax.  Electric fuel used in an exempt manner may be subject to sales tax. Rule 701—260.13(452A) contains more information regarding reductions in refunds due to the applicability of sales or use tax on exempt electric fuel sales.    262.5(3) International Fuel Tax Agreement refunds not impacted.  This refund process is separate and independent from any refund process authorized under 761—Chapter 505 related to the International Fuel Tax Agreement.       This rule is intended to implement Iowa Code section 452A.44.

    701—262.6(452A) Exemption certificates.      262.6(1)   If electric fuel is sold or dispensed for a nontaxable purpose, the purchaser may complete and provide an exemption certificate produced by the department to the license holder. The certificate is to be retained by the license holder consistent with Iowa Code section 452A.43.     262.6(2)   The exemption certificate must include but not be limited to the following information:     a.    The date.    b.    The license holder’s name.    c.    The license holder’s electric fuel dealer or electric fuel user license number applicable to the sale.    d.    The invoice number covering the fuel sold if it is sold by an electric fuel dealer.    e.    An indication of the use to which the fuel will be put.    f.    The name, address, and signature of the purchaser.        This rule is intended to implement Iowa Code sections 452A.17 and 452A.43.        
    ARC 6919CRevenue Department[701]Notice of Intended Action

    Proposing rule making related to fiduciary income tax returns and providing an opportunity for public comment

        The Revenue Department hereby proposes to amend Chapter 700, “Fiduciary Income Tax,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 421.14 and 422.68.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 422.21.Purpose and Summary    This proposed rule making is intended to provide updates and clarifications for the Department’s automatic extension of time for filing fiduciary income tax returns. The current rule includes detailed, outdated information relevant to tax years 1986 through 1991. The automatic filing extension applicable to current tax years is incorporated by reference to the automatic extension for individual income tax. This proposed rule making removes the outdated information and provides the relevant extension language that was previously incorporated by reference.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).Public Comment    Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on March 14, 2023. Comments should be directed to:Kurt Konek Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.587.0440 Email: kurt.konek@iowa.govPublic Hearing    If requested, a public hearing at which persons may present their views orally or in writing will be held as follows:March 21, 2023 2 to 3 p.m. Via video/conference call     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.    Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

        ITEM 1.    Rescind rule 701—700.5(422) and adopt the following new rule in lieu thereof:

    701—700.5(422) Extension of time to file.      700.5(1) Automatic extension of time to file.      a.    If the taxpayer has paid at least 90 percent of the tax required to be shown due by the due date and has not filed a return by the due date, the director will consider that the taxpayer has requested an extension of time to file the return and will automatically grant an extension of up to six months to file the return. The taxpayer does not have to file an application for extension form with the department to get the automatic extension to file the return within the six-month period after the due date and not be subject to penalty. However, if the taxpayer wants to make a tax payment to ensure that at least 90 percent of the tax has been paid on or before the due date, the payment should be made with the Iowa fiduciary income tax payment voucher form. This form can be found on the department’s website at tax.iowa.gov; requested by mail from the Taxpayer Services Section, P.O. Box 10457, Des Moines, Iowa 50306; or requested by telephone at (515)281-3114.    b.    To determine whether or not at least 90 percent of the tax was paid on or before the due date, the aggregate amount of tax credits applicable on the return plus the tax payments made on or before the due date are divided by the tax required to be shown due on the return. The tax required to be shown on the return is the sum of the income tax, lump-sum tax, minimum tax, and the trust portion of the ESBT tax. The tax credits applicable are the credits set out in Iowa Code chapter 422, division II, and Iowa Code section 422.111. The tax payments to be considered for purposes of determining whether 90 percent of the tax was paid are the withholding tax payments, estimate payments, composite tax payments, and payments made with the Iowa fiduciary income tax voucher form to ensure that 90 percent of the tax was paid timely.    c.    If the aggregate of the tax credits and the tax payments is equal to or greater than 90 percent of the tax required to be shown due, the taxpayer will have met the “90 percent” test and no penalty will be assessed. However, the taxpayer will still be subject to statutory interest on any tax due when the return is filed.    d.    Any tax elections will be considered to be valid in instances when the return is filed within the six-month extended period after the due date. The fact that the taxpayer has paid less than 90 percent of the tax required to be shown due will not invalidate any tax elections made on the return, if the return is filed within the six-month extended period.    700.5(2) Extension of time to file due to illness, death, absence, or other legitimate reason.  The taxpayer is required to file the taxpayer’s fiduciary income tax return on or before the due date of the return with payment in full of the amount required to be shown due with the return. However, in any instance where the taxpayer is unable to file the return by the due date because of illness or death in the taxpayer’s immediate family, unavoidable absence of the taxpayer, or other legitimate reason, the director may grant a six-month extension of time to file the return.    700.5(3) Extension of time for the decedent’s final tax return.  701—subrule 300.2(4), which provides for extensions of time to file individual income tax returns, will apply to the decedent’s final tax return.       This rule is intended to implement Iowa Code section 422.21.
    ARC 6917CTransportation Department[761]Notice of Intended Action

    Proposing rule making related to motor vehicle financial responsibility and providing an opportunity for public comment

        The Transportation Department hereby proposes to amend Chapter 640, “Financial Responsibility,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 307.12 and 321A.2.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 321A and sections 321.269 and 321.493.Purpose and Summary    This proposed rule making aligns Chapter 640 with existing legal authority and Department practice, eliminates outdated or irrelevant requirements, eliminates or replaces redundant and confusing language and accommodates current office structure and terminology. This rule making also reduces the regulatory burden on vehicle owners and operators by creating additional options and increased flexibility to demonstrate lawful compliance to avoid or lift license and registration suspension following an accident or a judgment.    Throughout the chapter, the name “Driver and Identification Services Bureau” is proposed to be changed to “Motor Vehicle Division” to reflect the structure of the work units responsible for processing submissions and information under the chapter. Additionally, the term “suspension termination notice” is proposed to be replaced with “notice terminating the suspension” and the associated form number is proposed to be eliminated to align with current Department practice, the terms “proof” and “proof of financial responsibility for the future” are proposed to be replaced with “proof of financial responsibility” to align with the language in Iowa Code chapter 321A, and other minor terminology and form changes are proposed to clarify existing Department terminology and procedures.    A definition of “security” is proposed to be added that utilizes language in Iowa Code section 321A.5. The definition clarifies the portions of the chapter that refer to the term.    The implementation sentence of rule 761—640.3(321A) is proposed to be amended to add a reference to Iowa Code section 321.269, which is the statute that requires the Department to prepare and supply accident report forms.    The proposed amendments to rule 761—640.4(321A), related to license and registration suspension for failure to deposit security following an accident, specify what types of reports qualify as a “report of a motor vehicle accident” under Iowa Code section 321A.5(1), which requires the Department to initiate suspension procedures for an uninsured vehicle owner or operator who is involved in a motor vehicle accident that results in bodily injury, death, or damage exceeding $1,500. This proposed clarification is intended to ensure that suspension procedures are properly initiated pursuant to Iowa Code section 321A.5 if the initially submitted accident report underestimates the personal or property damage to be under $1,500, or if the vehicle owner or operator is misidentified and the correct identity is later ascertained. Under the proposed clarified rule, all of the following are considered a “report of a motor vehicle accident”: a new or amended accident report submitted by a law enforcement officer or a driver, any supplemental accident report submitted by a driver, proof of transfer of ownership of a vehicle involved in the accident that occurred prior to the date of the accident, proof of identity of a driver incorrectly identified in an initial accident report, and proof of loss submitted by an insurance carrier authorized to transact insurance business in Iowa or by an insurance carrier authorized by power of attorney.    The proposed amendments to subparagraph 640.4(4)“b”(2), related to security disposition, clarify that the security can be refunded only after one year has elapsed from the date of the accident in accordance with Iowa Code section 321A.10, and that upon receipt of the applicable form, the Motor Vehicle Division may confirm with the district court that no court action has been initiated or judgment rendered as a result of the accident prior to refunding the security to the depositor, which aligns with current Department practice.    The proposed new introductory paragraph in subrule 640.4(5), related to exceptions to the requirement of security, adds cross-references to Iowa Code sections 321A.6 and 321A.7, which establish certain exceptions from security requirements. Paragraphs 640.4(5)“a” through “h” and proposed new paragraphs 640.4(5)“i” through “k” explain the specific forms and proofs that the Department can accept to prove that the person meets a statutory exception from security requirements. No new exceptions are proposed to be added; rather, the proposed amendments revise the terminology of the exceptions to more closely align with and avoid duplication of the language used in Iowa Code sections 321A.6 and 321A.7 and provide additional details about the requirements for such proof. Specifically, the proposed amendments establish that certain proofs must be signed by the parent or legal guardian of a minor (not the minor), that the Department may in some cases accept alternate forms of proof if the alternate form contains substantially the same information as the Department-prescribed form and add criteria that must be included on certain proofs to be accepted by the Department.    Vehicle owner exceptions, formerly under paragraphs 640.4(6)“a,” “b,” and “c,” are proposed to be moved under new paragraphs 640.4(5)“i,” “j,” and “k” for clarity and consistency. The proposed new paragraphs create flexibility by allowing a vehicle owner to be excepted from security requirements if the vehicle had been sold but Department records do not show that vehicle ownership had been transferred when the accident occurred (because of the buyer’s failure to submit documentation to complete the title transfer), even if the seller is unable to obtain the buyer’s signature on the required form, provided the seller makes a certification under penalty of perjury and provides evidence to support the certification. This accommodates situations where the seller, following the sale of the vehicle and assignment (signing) of the title over to the buyer, makes a good-faith attempt to obtain the signature of the buyer on Form 431125, “Affidavit of Seller,” but the buyer is unresponsive or refuses to sign the affidavit. The proposed amendments also provide that a sworn seller affidavit does not need to include the names of witnesses to the sale if there were no witnesses to the sale, which accommodates situations where the vehicle sale occurred one-on-one between the buyer and seller, and clarify under what conditions an owner may be exempt from security requirements because of ownership transfer by operation of law.    Rule 761—640.5(321A), related to suspensions for certified judgments under Iowa Code section 321A.13, is proposed to be amended to align with the current procedures and forms. The proposed amendments accomplish the following: update terminology to reflect the forms and processes used by clerks of court to report a certified copy of a judgment to the Department, add cross-references to include the Iowa Code sections that enumerate the exceptions from a suspension because of a judgment, eliminate or replace redundant and confusing language, provide that a new court order authorizing payment of a judgment in installments is acceptable to lift a defaulted judgment suspension, and clarify the conditions under which the insurance coverage exception can apply.    The proposed amendments to rule 761—640.6(321A) clarify that a person’s license or operating privilege remains suspended or revoked until the person files proof of financial responsibility with the Department, and that a person’s motor vehicle registrations remain suspended until the person files proof of financial responsibility for all vehicles registered to that person. The amendments to subrule 640.6(1) propose to add a cross-reference to include the Iowa Code section that enumerates triggering suspensions or revocations and propose clarifying language to eliminate confusion surrounding the requirements to maintain proof of financial responsibility within the two-year period.    The proposed amendments to subrule 640.6(3) specify that a person who has filed proof of financial responsibility with the Department and obtained a driver’s license will receive a card that lists the restriction code described in subrule 605.8(1) in accordance with current Department practice.    The proposed amendments to subrule 640.6(4) clarify that a person who has proof of financial responsibility as an operator only (but not as an owner) may operate any nonowned vehicle that has the applicable liability coverage.    Finally, the proposed amendments to subrule 640.6(7) remove the provision that a suspension termination notice may be presented to a county treasurer to obtain a new registration when a person has completed future proof requirements, which aligns with current Department practice and the Iowa Code.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 761—Chapter 11. Public Comment     Any interested person may submit written comments concerning this proposed rule making or may submit a written request to make an oral presentation at a public hearing. Written comments or requests to present oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on March 14, 2023. Comments should be directed to: Tracy George Department of Transportation DOT Rules Administrator, Government and Community Relations 800 Lincoln Way Ames, Iowa 50010 Email: tracy.george@iowadot.us Public Hearing     If requested, a public hearing to hear oral presentations will be held on March 16, 2023, via conference call at 10 a.m. Persons who wish to participate in the conference call should contact Tracy George before 4:30 p.m. on March 14, 2023, to facilitate an orderly hearing. A conference call number will be provided to participants prior to the hearing.     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.     Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact Tracy George and advise of specific needs.    The public hearing will be canceled without further notice if no oral presentation is requested. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Adopt the following new paragraph 640.1(1)"b":    b.    “Security” means an amount of money sufficient in the determination of the department to satisfy any judgment or judgments for damages resulting from the accident as may be recovered against the operator or owner. Security is subject to the limitations and requirements of Iowa Code sections 321A.5 and 321A.9

        ITEM 2.    Amend subrule 640.1(3) as follows:    640.1(3) Submissions and information.  Except as otherwise provided in this chapter, required submissions shall be either mailed to the Driver and Identification Services BureauMotor Vehicle Division, Iowa Department of Transportation, P.O. Box 9204, Des Moines, Iowa 50306-9204; delivered in person to 6310 SE Convenience Blvd., Ankeny, Iowa; or sent by facsimile to (515)239-1837. Information about themotor vehicle financial responsibility lawin Iowa Code chapter 321A is available from these sources or by telephone at (515)244-8725.

        ITEM 3.    Amend rule 761—640.3(321A) as follows:

    761—640.3(321A) Accident reporting requirements.  Accident reporting requirements are specified in Iowa Code section 321.266 and on Form 433002, “Iowa Accident Report Form,” which is available from law enforcement officers, driver’s license service centers, or from the driver and identification services bureaumotor vehicle division at the address in subrule 640.1(3).       This rule is intended to implement Iowa Code sections 321.266, 321.269 and 321A.4.

        ITEM 4.    Amend rule 761—640.4(321A) as follows:

    761—640.4(321A) Security required following accident.  Following an accident, security is required pursuant to Iowa Code section 321A.5.For the purposes of determining the 60–day time frame under Iowa Code section 321A.5(1), a “report of a motor vehicle accident” includes a new or amended law enforcement officer accident report submitted to the department under Iowa Code section 321.266(3); a new or amended driver accident report, Form 433002, submitted to the department under Iowa Code section 321.266(2); any supplemental report submitted to the department under Iowa Code section 321.267; proof of transfer of ownership of a vehicle involved in the accident that occurred prior to the date of the accident; proof of identity of a driver incorrectly identified in an initial accident report; or proof of loss submitted by an insurance carrier authorized to transact insurance business in Iowa or its authorized subrogation provider. Nothing in this rule shall be construed to extend the duration of a suspension issued under Iowa Code section 321A.5 beyond the period authorized in Iowa Code section 321A.7.    640.4(1) Suspension.      a.    If the security requirements of Iowa Code section 321A.5 are not met, the department shall suspend all licenses of the driver and all registrations of the owner.    b.    The suspension shall become effective 30 days after a suspension notice is served pursuant to rule 761—615.37(321). The notice shall inform the person of the amount of security required. The duration of the suspension is provided in Iowa Code section 321A.7. When the suspension ends, the department shall issueto the person a suspension termination notice to the personterminating the suspension.    640.4(2)   Reserved.    640.4(3) Security—amounts and type.      a.    The amount of security required of the uninsured driver and owner shall be determined from reports of the drivers involved in the accident, reports of investigating officers and from supplemental information obtained from persons involved in the accident concerning amounts of damage and injury sustained. Form 431074, “Insurance Request Letter,” may be mailed to parties to the accident for supplemental information. The security required shall not be increased after the suspension notice has been served, but may be reduced if evidence of exact costs is submitted to the department. The amount of security shall not exceed the minimum limits of liability for death or injury specified in Iowa Code chapter 321A.    b.    The security shall be deposited with the driver and identification services bureaudepartment at the address in subrule 640.1(3). The department shall issue to the depositor a receipt when the security is received. Security shall be one of the following types:    (1)   Cash.    (2)   Cashier’s check, certified check, bank draft, or postal money order payable to: Treasurer, State of Iowa.    (3)   Surety bond issued by a company authorized to transact insurance business in Iowa.    640.4(4) Security disposition.      a.    Security is held by the state treasurer and can be released only for payment of a judgment or as otherwise provided in Iowa Code section 321A.10; or by a court, including by Form 431097, “Order for Release of Security”; or by Form 433010, “Assignment and Release.”     b.    The security can be refunded at any time as follows:    (1)   When compliance as provided in 640.4(5) is presented to the driver and identification services bureaumotor vehicle division at the address in subrule 640.1(3); or    (2)   When, after one year has elapsed from the date of the accident, Form 433007, “District Court Affidavitfor Reinstatement or Refund of Security,” is completed by the clerk of the district court of the county where the accident occurreddepositor, the form indicates that no action has been initiated or judgment rendered, and the form is submitted to the driver and identification services bureaumotor vehicle division.Upon receipt of the form, the motor vehicle division may confirm the facts contained therein with the district court of the county where the accident occurred or any other court of competent jurisdiction.    640.4(5) Exceptions to requirement of security.  Compliance can be shown as follows: general releases, agreement releases, confession of judgment, accord and satisfaction, covenant not to sue, no-fault or no reasonable possibility of judgment, adjudication nonliability, and bankruptcy.A person who meets the requirements under Iowa Code section 321A.6(1) or 321A.6(2) is exempt from security requirements. A person who qualifies for an exception under Iowa Code section 321A.6(3), 321A.6(4) or 321A.7(3) must submit proof to the department at the address in subrule 640.1(3) showing that the person qualifies for the applicable exception as follows:    a.    General releasefrom liability.To qualify for this exception, a person shall submitForm 431036, “General Release,” may be obtained from the driver and identification services bureau at the address in subrule 640.1(3).“General Release.” The signature of the party giving the release shall be notarized or witnessed by a disinterested person. The release shall be accompanied by a power of attorney or subrogation authority if signed by a person other than the party sustaining damage or injury.If the party giving release is a minor, the release shall be signed by the parent or legal guardian of the minor. The department may accept an equivalent alternative form to prove a person’s general release from liability.    b.    AgreementDuly acknowledged written agreement release.To qualify for this exception, a person shall submitForm 181301, “Agreement,” may be obtained from the driver and identification services bureau at the address in subrule 640.1(3).“Agreement.” Complete information shall be provided on the form including the total amount of settlement agreed upon by the parties involved and a release of liability upon fulfillment of payments. The signatures of all parties to the agreement shall be notarized. The release shall be accompanied by a power of attorney or subrogation authority if signed by a person other than a party sustaining damage or injury. Compliance shall be credited only toIf the party giving release is a minor, the release shall be signed by the parent or legal guardian of the minor. This documentation demonstrates compliance only for a party who has agreed to make payment and whose signature appears on the agreement release.The department may accept an equivalent alternative form to prove that a person has executed a duly acknowledged written agreement.    c.    ConfessionCourt-certified confession of judgment.A court certifiedTo qualify for this exception, a person shall submit a court-certified copy of a confession of judgment including, which must include the total sum to be paid, the payment schedule agreed to by the parties is acceptable compliance. No specific form is provided by the driver and identification services bureau, the signature of both parties, and proof of loss if the judgment is to be paid to a subrogation authority.    d.    Accord and satisfaction.Accord and satisfaction may be shown byTo qualify for this exception, a person shall submit documentation that one party to an accident or the party’s insurance carrier has accepted liability for the accident and has compensated the other party to the accident for damages and injuries. This documentation does not serve asdemonstrate compliance for a third party.    e.    Covenant not to sue.ATo qualify for this exception, a person shall submit documentation of a covenant not to sue can bethat is given to a party to an accident as compliance by another party to the accident when a release would damage any claim against a third party.    f.    No-faultProof of no-fault or no reasonable possibility of judgment.Security cannot be required of a person if there is no reasonable possibility that judgment could be rendered against such person. Freedom from fault or immunity from judgment is acceptable compliance when presentedTo qualify for this exception, a person shall submit proof that the person is not at fault for the accident or that there is no reasonable possibility of judgment being rendered against a person inany of the following mannerways:    (1)   The investigating officer’s report of the accident indicates the other driver caused the accident.    (2)   The other driver admits causing the accident.    (3)   Witness statements indicate the other driver caused the accident.    (4)   The other driver is convicted of a violation which caused the accident.    g.    Adjudicationof nonliability.Adjudication of nonliability may be shown byTo qualify for this exception, a person shall submit a certified copy of a final court judgment that is rendered in a civil damage action resulting from the accident and that relieves the uninsuredperson of any obligation to pay damages.    h.    Bankruptcy.Security is not required of a person whenTo qualify for this exception, a person shall submit a copy of the decree for bankruptcy showing that all possible claims against the person arising from the accident have been scheduled in the bankruptcy petitiondecree. To establish this exception, the person shall submit a copy of the petition for bankruptcy to the driver and identification services bureau at the address in subrule 640.1(3).    i.    Owner exceptions—requirementsexception under Iowa Code section 321A.6(3).To qualify for this exception, a vehicle owner shall submit documentation that the vehicle was being operated at the time of an accident without the owner’s permission, express or implied. This exception does not apply to a person who was driving the vehicle at the time of the accident. Acceptable documentation includes the following:    (1)   A police report indicating the vehicle was stolen.    (2)   Proof of the driver’s conviction of operating the vehicle without the owner’s consent at the time of the accident.    (3)   A sworn affidavit that the vehicle was being operated without permission at the time of the accident.    (4)   A witness affidavit that the driver had been denied use of the vehicle.    a.    An owner can be excepted from the security requirements if the vehicle was being used at the time of an accident without the owner’s consent. The owner may qualify for this exception if the police report indicates the vehicle was stolen, or if the driver was convicted of operating without the owner’s consent. In the absence of such police report or conviction, the owner may furnish a sworn affidavit that the vehicle was operated without permission or the owner may furnish affidavits of witnesses that the driver had been denied use of the vehicle.    b.    j.    Owner exception for vehicle sale.A person may be exempted from the security requirements applicable to an owner if the motor vehicle had been sold but the title had not been transferred when the accident occurred.To qualify for this exception, a vehicle owner shall submit documentation that the vehicle owner had sold the vehicle involved in the accident and the title had been reassigned to the new owner, but departmental records did not yet show that the title had been transferred when the accident occurred. This exception does not apply to a person who was driving the vehicle at the time of the accident. Acceptable documentation includes the following:    (1)   The person who sold the motor vehicle may qualify for this exemption by submitting to the department Form 431125, “Affidavit of Seller.” This form must be“Affidavit of Seller,” completed by both the buyer and seller with signatures notarized or attested to by an officera member of the department, unless the seller certifies under penalty of perjury that the buyer’s signature could not be obtained and provides evidence to the satisfaction of the department that supports this certification.    (2)   A sworn affidavit by the seller and witnesses to the sale, if any, that the vehicle had been sold may be furnished in lieu of Form 431125, “Affidavit of Seller.” The affidavit must include, including a description of the vehicle, the date of the sale, the monetary consideration, facts concerning the assignment of title and delivery of possession, and the names of witnesses to the sale, if any.    c.    k.    Owner exception for vehicle transfer.Ownership transferred by operation of law can be shown by furnishingTo qualify for this exception, a vehicle owner shall submit certified copies of any court order by which ownership of a vehicle was awarded to another partyprior to the date of the accident.This exception does not apply to a person who was driving the vehicle at the time of the accident.       This rule is intended to implement Iowa Code sections 321A.4 to 321A.11 and 321A.31.

        ITEM 5.    Amend rule 761—640.5(321A) as follows:

    761—640.5(321A) Judgments.  A suspension of license and registrations is requiredunder Iowa Code section 321A.13 when the department receives a certified copy of afrom the clerk of court a certification of judgment which has remained unsatisfied for at least 60 dayspursuant to Iowa Code section 321A.12. Form 431126, “Certification of Judgment,” may be used by the clerk of court to report a certified judgment to the department.    640.5(1) Suspension.  The suspension becomes effective on the date Form 431010, “Suspension Notice,”the suspension notice is served pursuant to 761—615.37(321). The notice shall inform the person that the privilege to operate and register motor vehicles in Iowa is suspended until the judgment is satisfied and proof of financial responsibility is shown. The duration of the suspension is provided in Iowa Code section 321A.14. When the suspension ends, the department shall issue to the person Form 431009, “Suspension Termination Notice.”a notice terminating the suspension.    640.5(2) Suspension—exceptions.  A person who qualifies for an exception under Iowa Code section 321A.13, 321A.14 or 321A.16 must submit proof to the department at the address in subrule 640.1(3) that the person qualifies for the applicable exception in one of the following ways:    a.    Creditor’s consent.TheTo qualify for this exception, the judgment debtor may requestmust obtain written consent from the judgment creditor for issuance of the debtor’s license and registrations while paying the judgment. If the creditor consents in writing and the debtor provides proof of financial responsibility, the suspension shall be terminated. If this consent is withdrawn, a new suspension is required in accordance with subrule 640.5(1).    b.    Satisfaction of judgment.The judgment suspension will be terminated when theTo qualify for this exception, the judgment debtor obtains from the clerk of courtmust submit a certificate of satisfaction or receipt for payment of the judgment and presents the certificate or receipt to the department and files proof of financial responsibilityfrom the clerk of court.    c.    Bankruptcy.If theTo qualify for this exception, the judgment debtor submits to the departmentmust submit a copy of the petitiondecree for bankruptcy which includes the judgment debt, the department shall terminate the suspension.    d.    Court order for installment payments.If theTo qualify for this exception, the judgment debtor submits to the departmentmust submit a court order authorizing payment of the judgment in installments and files proof of financial responsibility, the department shall terminate the suspension. A new suspension, as provided in subrule 640.5(1), is required when the department receives notice of a default in the payments. The default suspension continuesshall continue until the judgment is satisfiedor a new court order authorizing payment of the judgment in installations is received.    e.    Insurance coverage exception.The debtor can be relieved of the suspension if there was liability insurance coverage in effect at the time of the accident from which the judgment was rendered. The requirements are the same as provided in Iowa Code section 321A.13. The department will acceptTo qualify for this exception, the judgment debtor who held effective liability insurance coverage at the time of the accident from which the judgment was rendered shall submit a copy of the insurance policy and a letter from the insurance carrier confirming that they werethe insurance carrier was authorized to issue liability insurance, and that theythe insurance carrier did provide coverage for the debtor in amounts required by the financial responsibility law, and the reason why the insurance carrier has not paid such judgment.       This rule is intended to implement Iowa Code sections 321A.12 to 321A.29 and 321A.31.

        ITEM 6.    Amend rule 761—640.6(321A) as follows:

    761—640.6(321A) Proof of financial responsibility for the future.  Proof of financial responsibility for the future is required pursuant to Iowa Code sections 321A.13, 321A.14, 321A.16 and 321A.17. UnlessA person’s driver’s license or nonresident operating privilege shall remain suspended or revoked until the person has filed proof of financial responsibility with the department. In addition, a person’s motor vehicle registrations shall remain suspended until the person has filedwith the department proof of financial responsibility for all motor vehicles registered to that person, the department shall also suspend the person’s motor vehicle registrations.    640.6(1) Duration of proofof financial responsibility.  Proof of financial responsibility is required for two years starting on the effective date of the person’s last suspension or revocationthat qualifies under Iowa Code section 321A.17. The requirement terminates if the person required to give proof dies or becomes incapable of operating a motor vehicle, or surrendersthe driver’s license andthe platesof all vehicles registered in the person’s name to the department. Reinstatementof the person’s driver’s license or nonresident operating privilege and motor vehicle registrations within the two-year requirement is possible only if the person refiles such proof.    640.6(2) Methods of giving proofof financial responsibility.      a.    Proof of financial responsibility may be shown by a liability insurance certificate pursuant to Iowa Code section 321A.19. Form SR-22, “AAMVA Uniform Financial Responsibility Form,” is required as the form of the certificate except when proof of financial responsibility is submitted electronically. When proof of financial responsibility is submitted electronically, the proof shall be in a format approved by the department. The form may describe an owner’s or operator’s policy and shall identify the policyholder by name, address, driver’s license number, and birth date. The effective date of the policy shall be the same as the effective date on the form. The vehicles covered shall be identified by year, make, model and vehicle identification number. The form shall be certified in accordance with the Iowa financial responsibility law by an insurance carrier authorized to transact insurance business in Iowa or by aan insurance carrier authorized by power of attorney. The policy shall be canceled only as provided in Iowa Code section 321A.22. Certification of coverage for an owner’s policy authorizes the policyholder to have registrations for the described vehicles. Certification of coverage for an operator’s policy does not authorize registrations.    b.    Proofof financial responsibility may be given for a person who is an operator in the employ of the owner of the motor vehicle, or who is a member of the immediate family or household of the owner pursuant to Iowa Code section 321A.26, if the owner’s insurance carrier certifies for the person required to show proofof financial responsibility. In addition to the requirements in paragraph 640.6(2)“a,” the proofof financial responsibility shall identify both the policyholder and the person for whom proofof financial responsibility is given. This certification does not authorize the person required to give proofof financial responsibility to register a motor vehicle.    c.    Proofof financial responsibility may be given for a person who is an operator in the employ of an owner of a fleet of motor vehicles, if the owner’s insurance carrier certifies for the person required to show proof, by submittingof financial responsibility. Form SR-23, “AAMVA Uniform Financial Responsibility Form,” except whenis required as the form of the certificate except when proof of financial responsibility is submitted electronically. When proof of financial responsibility is submitted electronically, the proof shall be in a format approved by the department. The form shall identify the policyholder’s name and address, policy number, policy dates and effective date. This certification does not authorize the person required to give proofof financial responsibility to register a motor vehicle.    d.    Proofof financial responsibility may be given for a person who is an operator in the employ of an owner who has qualified as a self-insurer pursuant to Iowa Code section 321A.34. A certificate of self-insurance may be issued by the department to a person in whose name more than 25 vehicles are registered and who submits a financial statement which is found to be satisfactory to the department. Form SR-1, “Application for Self Insurance,” shall be completed and submitted to the department with a list of all the owner’s motor vehicles registered in Iowa identified by make, year, model, and vehicle identification number. When the application is approved, the department shall issue Form SR-2, “Self Insurance Certificate.” Failure to pay a judgment pursuant to Iowa Code section 321A.34 or failure to submit an annual financial statement shall be reasonable grounds for cancellation of the certificate.    640.6(3)   Rescinded, effective 1/26/83.Proof of financial responsibility restriction. When a person has filed satisfactory proof of financial responsibility in accordance with subrule 640.6(2), and the person applies for and is otherwise eligible for a driver’s license, the department shall issue the driver’s license with a restriction indicating that the person is subject to proof of financial responsibility requirements. The restriction code shall be the same as described in 761—subrule 605.8(1).    640.6(4) Terminating the suspension upon filing of proofof financial responsibility.  When future proof of financial responsibility is shownprovided under subrule 640.6(2) and the person is otherwise eligible for licensingor registration, the department shall issue Form 431009, “Suspension Termination Notice,”a notice terminating the suspension to the person whose privileges were suspended under Iowa Code section 321A.13, 321A.14, 321A.16 or 321A.17 or rulesrule 761—640.5(321A) andor 761—640.6(321A). To regain operating privileges, the person shall pass the required examinations and pay the required fees. The person’s operating and registration privileges are restricted to the motor vehicles covered under the proof of financial responsibility filed by the applicant, except that a person required to give proof of financial responsibility who holds proof of financial responsibility as an operator may operate a nonowned vehicle provided the owner of that vehicle has liability coverage required under Iowa Code chapter 321A.    640.6(5) Cancellation of future proofof financial responsibility.  An insurance carrier shall only cancel or terminate a certificate of insurance pursuant to Iowa Code section 321A.22. The cancellation shall be certified by an authorizedinsurance carrier representative on Form SR-26, “AAMVA Uniform Financial Responsibility Form,” except when cancellation of future proof of financial responsibility is submitted electronically. When cancellation of future proof of financial responsibility is submitted electronically, the cancellation shall be in a format approved by the department. The cancellation of future proof of financial responsibility shall identify the proof of financial responsibility certificate to be canceled by name and address of the person, social security number, birth date, driver’s license number, number of the policy to be canceled and the effective date of cancellation.    640.6(6) Suspension when future proofof financial responsibility is canceled.      a.    When a person’s future proofof financial responsibility is canceled, the person shall immediately refile future proofof financial responsibility or surrender the license and registrations to the department.    b.    If the person fails to refileproof of financial responsibility, Form 431010, “Suspension Notice,”a suspension notice shall be served in accordance with 761—615.37(321). The effective date of the suspension shall be the date the notice is served. The notice shall inform the person that the privilege to operate and register motor vehicles in Iowa is suspended until future proofof financial responsibility is refiled. When the person refiles future proofof financial responsibility, the department shall issue to the person Form 431009, “Suspension Termination Notice.”a notice terminating the suspension.    640.6(7) Terminating the two-year proofof financial responsibility requirement.  Form 431009, “Suspension Termination Notice,”A notice terminating the requirement to maintain proof of financial responsibility shall be issued to a person who has completed futuresatisfied proofof financial responsibility requirementspursuant to Iowa Code section 321A.29. The form shall notify the person that proofof financial responsibility is no longer required and that the person may operate and register motor vehicles without the proof restrictionsmaintaining and filing with the department proof of financial responsibility. If the person’s driver’s license is still valid, the person may obtain a duplicate driver’s license without the proof restrictionsrestriction under subrule 640.6(3). If the driver’s license has expired or has not been reinstated and the person is otherwise eligible for licensing, the person shall pass the required examinations and pay the required fees. The suspension termination notice may also be presented to the county treasurer to obtain a new registration.    640.6(8) Electronic submission of proof of financial responsibility and cancellation of future proof of financial responsibility.  Prior to July 1, 2021, an insurance carrier authorized to transact business in the state of Iowa may electronically submit proof of financial responsibility and cancellation of future proof of financial responsibility in a format approved by the department. An insurance carrier that submits proof of financial responsibility or cancellation of future proof of financial responsibility under this rule shall implement electronic submission of such proof no later than July 1, 2021. As of July 1, 2021, no paper submissions of such proof shall be acceptedby the department from the insurance carrier, and allsubmissions of proof of financial responsibility and cancellation of future proof of financial responsibility shall be submitted electronically in a format approved by the department.       This rule is intended to implement Iowa Code sections 321A.12 to 321A.29, 321A.31 and 321A.34.

        ITEM 7.    Amend rule 761—640.7(321A) as follows:

    761—640.7(321A) Transfer of suspended registration.  A person whose motor vehicle registration privileges have been suspended may make a bona fide sale pursuant to Iowa Code sections 321.493 and 321A.30. The department shall release the suspended registration to permit the registration of the motor vehicle by the purchaser when presented with either the seller’s sworn statement on Form 433015, “Affidavit of Bona Fide Sale,”411107, “Notice of Sale of Vehicle and Delivery of Title,” or confirmation from the county treasurer that the sale has been made and release of the registration is necessary to complete the transfer of title.       This rule is intended to implement Iowa Code sections 321.493 and 321A.30.
    ARC 6918CUtilities Division[199]Notice of Intended Action

    Proposing rule making related to electric transmission lines and providing an opportunity for public comment

        The Utilities Board hereby proposes to amend Chapter 11, “Electric Lines,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code chapter 478 and section 474.5(1).State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 478.Purpose and Summary    The Board opened this proposed rule making to provide clarity on the issue of whether an electric transmission line company is required to seek an amendment to a Board-issued electric transmission line franchise when the company constructs a new substation or switching station along and connected to an existing franchised line. Under the existing rules, the Board concluded an amendment is necessary, and that determination is currently being litigated in two cases in the district court for Polk County. Presently, the district court has issued a stay in those two cases to allow this rule making to progress. The proposed amendments would clarify that an amendment to the existing franchise under these circumstances is not necessary. The proposed amendments would further provide electric transmission line companies greater flexibility in seeking an extension of an existing electric transmission line franchise and in voluntarily withdrawing a petition.    The Board issued an order on February 6, 2023, commencing this rule making. The order is available on the Board’s electronic filing system, efs.iowa.gov, under RMU-2022-0011.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    No waiver provision is included in the proposed amendments because the Board has a general waiver provision in rule 199—1.3(17A,474,476) that provides procedures for requesting a waiver of the rules in Chapter 11.Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Board no later than 4:30 p.m. on March 14, 2023. Comments should be directed to: IT Support Iowa Utilities Board Phone: 515.725.7300 Email: ITSupport@iub.iowa.gov Public Hearing     A public hearing at which persons may present their views orally or in writing will be held as follows: March 28, 2023 10 a.m. to 12 noon Board Hearing Room 1375 East Court Avenue Des Moines, Iowa     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.     Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Board and advise of specific needs. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Amend paragraphs 11.6(1)"b" and 11.6(1)"c" as follows:    b.    Constructing an additional circuitline which is capable of operating at a nominal voltage of 69 kV or more on a previously franchised line, where an additional circuitline at such voltage is not authorized by the existing franchise.     c.    Relocating a franchised line to a route different from that authorized by an existing franchise, including the construction of tap(s) to a substation or switching station, which requires that new or additional interests in property be obtained, or that new or additional authorization be obtained from highway or railroad authorities, for a total distance of one route mile or more, or for any relocations where the right of eminent domain is sought. An amendment is not required for relocations made pursuant to Iowa Code section 318.9(2).

        ITEM 2.    Amend subrule 11.8(2) as follows:    11.8(2) Date for filing petition for extension.  A petition for an extension of a franchise shall be filed at least one year, and no more than five years, prior to expiration of the franchise. This requirement is not applicable to extensions of franchises that expire within one year of September 2, 2020. Extensions of existing countywide franchises are permitted; however, petitions to extend the franchises of separate transmission lines within a county by combining those transmission lines into a countywide franchise are not permitted using the franchise extension process.

        ITEM 3.    Amend subrule 11.10(4) as follows:    11.10(4) Notice of relocationsconstruction not requiring an amendment toa franchise.  Whenever a transmission line under franchise is relocatedor is reconstructed with different materials or specifications than those that appear on the most recent Exhibit C, or taps to a new substation or switching station are constructed along and connected to the franchised line in a manner that does not require an amendment toa franchise, the holder of the franchise shall notify the board in writing of the relocationconstruction, stating the franchise and docket numbers and date of franchise issuance for the affected transmission line, and providing revised Exhibits A, and B, and C, as applicable, that reflect the changes in the route, not more than 30 days after the commencementcompletion of the relocationconstruction.

        ITEM 4.    Rescind subrule 11.10(5).

        ITEM 5.    Amend subrule 11.12(1) as follows:    11.12(1) Termination of docket.  Uponwritten notice to the board by an electric company that a franchise petition or petition for amendment of a franchise is withdrawn, the docket shall be closed by board order.
    ARC 6905CCorrections Department[201]Adopted and Filed

    Rule making related to physician assistants

        The Corrections Department hereby amends Chapter 45, “Parole,” Chapter 50, “Jail Facilities,” and Chapter 51, “Temporary Holding Facilities,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 147.77 as enacted by 2022 Iowa Acts, House File 803, and section 904.108.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 147.77 as enacted by 2022 Iowa Acts, House File 803.Purpose and Summary    This rule making implements amendments enacted by 2022 Iowa Acts, House File 803. House File 803 directed the Department to add physician assistants to lists of health care workers who may perform various duties that are within their scope of practice.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on October 19, 2022, as ARC 6607C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Department on February 2, 2023.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 201—Chapter 7.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on March 29, 2023.    The following rule-making actions are adopted:

        ITEM 1.    Amend paragraph 45.2(1)"e" as follows:    e.    Substance abuse. The parolee shall not use, purchase, or possess alcoholic beverages and shall submit to alcohol tests and drug tests when directed by the parolee’s supervising officer. The parolee shall not enter taverns or liquor stores or other establishments where the primary activity is the sale of alcoholic beverages. The parolee will not use, ingest, inject, huff, possess or smoke any illegal or synthetic substances. The parolee shall not use, purchase, possess or transfer any drugs unless they are prescribed by a physicianor physician assistant.

        ITEM 2.    Amend rule 201—50.15(356,356A) as follows:

    201—50.15(356,356A) Medical services.  The jail administrator shall establish a written policy and procedure to ensure that prisoners have the opportunity to receive necessary medical attention for the prisoners’ objectively serious medical and dental needs which are known to the jail staff. A serious medical need is one that has been diagnosed by a physicianor physician assistant as requiring treatment or is one that is so obvious that even a lay person would easily recognize the necessity for a physician’sor physician assistant’s attention. The plan shall include a procedure for emergency care. Responsibility for the costs of medical services and products remains that of the prisoner. However, no prisoner will be denied necessary medical services, dental service, medicine or prostheses because of a lack of ability to pay. Medical and dental prostheses shall be provided only for the serious medical needs of the prisoner, as determined by a licensed health care professional. Cosmetic or elective procedures need not be provided.    50.15(1) Medical resources.  Each jail shall have a designated licensed physician, licensed osteopathic physician, physician assistant or medical resource, such as a hospital or clinic staffed by licensed physicians,or licensed osteopathic physiciansor physician assistants, designated for the medical supervision, care and treatment of prisoners as deemed necessary and appropriate. Medical resources shall be available on a 24-hour basis.    50.15(2) Trained staff.      a.    All staff who administer medication shall be trained in accordance with the Iowa State Sheriffs and Deputies Association medication training program or other recognized medication administration course.    b.    At least one staff member on duty at the jail shall be currently trained in first aid (or the equivalent) and CPR.    50.15(3) Prisoner involvement.  No prisoner shall be involved in any phase of delivery of medical services.    50.15(4) First-aid kits.  A first-aid kit approved by qualified medical personnel shall be available to staff (no policy required).    50.15(5) Chemical control agents.  A prisoner affected by a chemical control agent shall be offered a medical examination and appropriate treatment as soon as reasonable.    50.15(6) Screening upon admission.      a.    Any person who is obviously injured, ill or unconscious shall be examined by qualified medical personnel before being admitted to a jail.    b.    Prisoners suspected of having a contagious or communicable disease shall be separated from other prisoners until examined by qualified medical personnel.    c.    As a part of the admission procedure, a medical history intake form shall be completed for each person admitted to the jail. The intake procedure shall include screening for potential self-injury or potential suicide. Jail staff with actual knowledge that there is a substantial risk that a prisoner intends to commit suicide shall take reasonable measures to abate that risk. The jail shall have a written suicide prevention plan. Essential elements of the plan shall include annual training to recognize the potential for suicide, communication between staff, appropriate housing and intervention procedures.    d.    During times when there is no means of immediate access to the district court, a person arrested on a charge constituting a simple misdemeanor and believed by the arresting officer/agency to be mentally ill, and because of that illness is likely to physically injure the person’s self or others, shall be admitted to the jail only after the arresting officer/agency has demonstrated a reasonable effort to comply with the emergency hospitalization procedure, as provided in Iowa Code section 229.22. The jail shall have a written plan to provide prisoners access to services for the detection, diagnosis and treatment of mental illness. The plan shall include a mental health screening process at admission    e.    Prisoners shall be provided with information on how they can obtain necessary medical attention, and the agency’s policy and procedure shall also reflect this.    50.15(7) Medication procedures.      a.    Written policies and procedures pertaining to providing medication shall be established.    b.    All prescription medicine shall be securely stored and inventory control practiced. Inventory control shall include documentation of all medication coming into the jail and the amount returned or destroyed when a prisoner is released.    c.    A written procedure for recording the taking or administering of all medications shall be established.    d.    Prescription medication, as ordered by a licensed physician, licensed osteopathic physician, physician assistant or licensed dentist, shall be provided in accordance with the directions of the prescribing physician, licensed osteopathic physician, physician assistant or dentist. Prisoners with medication from a personal physician, osteopathic physician, physician assistant or dentist may be evaluated by a physician, osteopathic physician, physician assistant or dentist selected by the jail administrator to determine if the present medication is appropriate.    50.15(8) Medical records.  A separate medical record shall be maintained for each prisoner receiving medical care. The record shall include the illness being treated, medication administered, special diets required, medical isolations and the name of the attending health professional or institution. The record may be kept in the prisoner’s file jacket but must be labeled confidential.    50.15(9) Medication storage.      a.    Prisoners’ medications shall be stored at the proper temperature, as defined by the following terms:    (1)   Room temperature: temperature maintained between 15 degrees centigrade (59 degrees Fahrenheit) and 30 degrees centigrade (85 degrees Fahrenheit).    (2)   Cool: temperature between 8 degrees centigrade (46 degrees Fahrenheit) and 15 degrees centigrade (59 degrees Fahrenheit).    (3)   Refrigerate: temperature that is thermostatically maintained between 2 degrees centigrade (36 degrees Fahrenheit) and 8 degrees centigrade (46 degrees Fahrenheit).    (4)   All medication required to be “cool” or “refrigerated” shall be stored in a separate refrigerator or in a separate locked container within a refrigerator that is used for other purposes.    b.    Any medications bearing an expiration date may not be administered beyond the expiration date.    c.    Expired drugs or drugs not in unit dose packaging, whose administration had been discontinued by the attending physicianor physician assistant, shall be destroyed by the jail administrator or designee in the presence of a witness. A record of drug destruction shall be made in each prisoner’s medical record. The record shall include the name, the strength and the quantity of the drug destroyed, and the record shall be signed by the jail administrator or designee and by the witness.    d.    Medications dispensed by a pharmacy in unit dose packaging may be returned to the dispensing pharmacy pursuant to board of pharmacy rule 657—23.15(124,155A).    e.    Jails utilizing unit dose packaging shall have written policies and procedures providing for the return of drugs so packed to the issuing pharmacy. Policy shall include proper record keeping of disposal.

        ITEM 3.    Amend subrule 50.16(5) as follows:    50.16(5) Medical diets.  Special diets as prescribed by a physicianor physician assistant shall be followed and documented. The physicianor physician assistant who prescribes the special diet shall specify a date on which the diet will be reviewed for renewal or discontinuation. Unless specified by the prescribing physicianor physician assistant, a certified dietitian shall develop the menu.

        ITEM 4.    Amend subparagraph 50.24(5)"a" as follows:    (10)   Special diets as prescribed by a physicianor physician assistant shall be followed and documented.

        ITEM 5.    Amend rule 201—51.13(356,356A) as follows:

    201—51.13(356,356A) Medical services.  The facility administrator shall establish a written policy and procedure to ensure that detainees have the opportunity to receive necessary medical attention for the detainee’s objectively serious medical and dental needs which are known to the facility staff. A serious medical need is one that has been diagnosed by a physicianor physician assistant as requiring treatment, or one that is so obvious that even a lay person would easily recognize the necessity for a physician’sor physician assistant’s attention. The plan shall include a procedure for emergency services day or night and a procedure for regular medical attention. Responsibility for the costs of medical services remains that of the detainee. However, no detainee will be denied necessary medical services, dental service, or medicine because of a lack of ability to pay. Medical and dental prostheses shall be provided only for the serious medical needs of the detainee, as determined by a licensed health care professional. Cosmetic or elective procedures need not be provided.    51.13(1) Medical resources.  Each facility shall have a designated licensed physician, licensed osteopathic physician, physician assistant or medical resource, such as a hospital or clinic staffed by licensed physicians, physician assistants or licensed osteopathic physicians, designated for the medical supervision, care and treatment of detainees as deemed necessary and appropriate. Medical resources shall be available on a 24-hour basis.    51.13(2) Trained staff.      a.    All staff providing medication shall be trained in accordance with the Iowa State Sheriffs and Deputies Association medication training program or other recognized medication administration course.    b.    At least one staff member on duty at the facility shall be currently trained in first aid (or the equivalent) and CPR.    51.13(3) Detainee involvement.  No detainee shall be involved in any phase of delivery of medical services.    51.13(4) First-aid kits.  A first-aid kit approved by qualified medical personnel shall be available to staff.    51.13(5) Chemical control agents.  Detainees affected by a chemical control agent shall be offered a medical examination and appropriate treatment as soon as reasonable.    51.13(6) Screening upon admission.      a.    Any person who is obviously injured, ill or unconscious shall be examined by qualified medical personnel before being admitted to a facility.    b.    Detainees suspected of having a contagious or communicable disease shall be separated from other detainees until examined by qualified medical personnel.    c.    As a part of the admission procedure, a medical history intake form shall be completed for each person admitted to the facility. The intake procedure shall include screening for potential self-injury or suicide. Facility staff with actual knowledge that there is a substantial risk that a detainee intends to commit suicide shall take reasonable measures to abate the risk. The facility shall have a written suicide prevention plan. Essential elements of the plan shall include annual staff training to recognize the potential for suicide, communication between staff, appropriate housing, and intervention procedures.    d.    During times when there is no means of immediate access to the district court, a person arrested on a charge constituting a simple misdemeanor and believed by the arresting officer/agency to be mentally ill, and because of that illness is likely to physically injure the person’s self or others, shall be admitted to the facility only after the arresting officer/agency has demonstrated a reasonable effort to comply with the emergency hospitalization procedure as provided in Iowa Code section 229.22. The facility shall have a written plan to provide detainees access to services for the detection, diagnosis and treatment of mental illness.    e.    Detainees shall be provided with information on how they can obtain necessary medical attention, and the facility’s policy and procedure shall also reflect this.    51.13(7) Medication procedures.      a.    Written policies and procedures pertaining to providing medication shall be established.    b.    All prescription medicine shall be securely stored and inventory control practiced. Inventory control shall include documentation of all medication coming into the facility and the amount of medication returned or destroyed when the detainee is released.    c.    A written procedure for recording the taking or administering of all medications shall be established.    d.    Prescription medication, as ordered by a licensed physician, licensed osteopathic physician, physician assistant or licensed dentist, shall be provided in accordance with the directions of the prescribing physician, licensed osteopathic physician, physician assistant or dentist. Detainees with medication from a personal physician, osteopathic physician, physician assistant or dentist may be evaluated by a physician, osteopathic physician, physician assistant or dentist selected by the facility administrator to determine if the present medication is appropriate.    51.13(8) Medical records.  A separate medical record shall be maintained for each detainee receiving medical care. The record shall include the illness being treated, medication administered, special diets required, medical isolations and the name of the attending health professional or institution. The record may be kept in the detainee’s file jacket but must be labeled “confidential.”    51.13(9) Medication storage.      a.    Detainees’ medications shall be stored at the proper temperature, as defined by the following terms:    (1)   Room temperature: temperature maintained between 15 degrees centigrade (59 degrees Fahrenheit) and 30 degrees centigrade (85 degrees Fahrenheit).    (2)   Cool: temperature maintained between 8 degrees centigrade (46 degrees Fahrenheit) and 15 degrees centigrade (59 degrees Fahrenheit).    (3)   Refrigerate: temperature that is thermostatically maintained between 2 degrees centigrade (36 degrees Fahrenheit) and 8 degrees centigrade (46 degrees Fahrenheit). All medication required to be “cool” or “refrigerated” shall be stored in a separate refrigerator or in a separate locked container within a refrigerator that is used for other purposes.    b.    Any medications bearing an expiration date may not be administered beyond the expiration date.    c.    Expired drugs or drugs not in unit dose packaging, whose administration had been discontinued by the attending physicianor physician assistant, shall be destroyed by the facility administrator or designee in the presence of a witness. A record of drug destruction shall be made in each detainee’s medical record. The record shall include the name, the strength and the quantity of the drug destroyed;, and the record shall be signed by the facility administrator or designee and by the witness.    d.    Medications dispensed by a pharmacy in unit dose packaging may be returned to the dispensing pharmacy pursuant to board of pharmacy rule 657—23.15(124,155A).    e.    Facilities utilizing unit dose packaging shall have written policies and procedures providing for the return of drugs so packed to the issuing pharmacy. Policy shall include proper record keeping of disposal.

        ITEM 6.    Amend subrule 51.14(4) as follows:    51.14(4) Medical diets.  Special diets as prescribed by a physicianor physician assistant shall be followed and documented.

        ITEM 7.    Amend subparagraph 51.20(5)"a" as follows:    (10)   Special diets as prescribed by a physicianor physician assistant shall be followed and documented.    [Filed 2/2/23, effective 3/29/23][Published 2/22/23]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/22/23.
    ARC 6891CEconomic Development Authority[261]Adopted and Filed

    Rule making related to employee stock ownership plan (ESOP) formation assistance

        The Economic Development Authority (IEDA) hereby amends Chapter 56, “Employee Stock Ownership Plan (ESOP) Formation Assistance,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 15.106A.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 15.108 and 2013 Iowa Acts, House File 648.Purpose and Summary    The ESOP Formation Assistance Program was established in 2014. The program offers reimbursement of up to 50 percent of the cost of a feasibility study for establishing an ESOP.    These amendments offer clarification of program policies and streamline the approval process. Changes include the following:

  • Remove outdated contact information for IEDA.
  • Add clarification of eligible costs and exclude costs incurred prior to approval of financial assistance from reimbursement.
  • Add clarification on application scoring related to the value of an applicant business and employees of an applicant business.
  • Make engagement of outside application reviewers optional.
  • Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on December 14, 2022, as ARC 6738C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Authority Board on January 20, 2023.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition IEDA for a waiver of the discretionary provisions, if any, pursuant to 261—Chapter 199.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on March 29, 2023.    The following rule-making actions are adopted:

        ITEM 1.    Rescind the definition of “Board” in rule 261—56.2(85GA,HF648).

        ITEM 2.    Amend rule 261—56.3(85GA,HF648) as follows:

    261—56.3(85GA,HF648) Program description.       56.3(1) Amount, form, and timing of assistance.  The program provides financial assistance to businesses interested in establishing an ESOP. An applicant to the program may be approved for financial assistance in an amount equal to 50 percent of the cost incurred for obtaining a feasibility study conducted by an independent financial professional. The total amount of financial assistance provided to an applicant will not exceed $25,000. The financial assistance may be provided in two tranches. The first tranche will be provided as a reimbursement of 25 percent of the cost of a feasibility study and will be remitted upon completion of the feasibility study. The second tranche will be provided as a reimbursement of 25 percent of the cost of the feasibility study and will be remitted only upon completion of an ESOP formation. A business that does not successfully complete the formation of an ESOP will not receive the second tranche. A business will be required to provide to the authority documentation establishing the costs incurred and the successful completion of all necessary transactions.    56.3(2) Application.      a.    Each fiscal year in which funding is available, the authority will accept applications for assistance under the program and make funding decisions on a rolling basis.    b.    Information on submitting an application under the program may be obtained by contacting the economic development authority. The contact information is:Iowa Economic Development AuthorityOffice of General Counsel200 East Grand AvenueDes Moines, Iowa 50309(515)725-3000businessfinance@iowa.govhttp://iowaeconomicdevelopment.com/    56.3(3) Approval of assistance.  The authority, with the assistance of an ESOP advisory panel,Authority staff will consider, evaluate, and recommend applications for financial assistance under the program. Theauthority may consult with an ESOP advisory panel will consistconsisting of individuals selected by the director who have demonstrated expertise in the formation and operation of ESOPsas needed. Authority staff and the members of the advisory panel will review applications for financial assistance and score the applications according to the criteria described in rule 261—56.4(85GA,HF648). Applications deemed to meet the minimum scoring criteria will be submitted to the director for a final funding decision.    56.3(4) Contract required.  If the director approves an applicant for financial assistance under the program, the authority will prepare an agreement stating the terms on which the financial assistance is to be provided, and the applicant shall execute the agreement before funds are disbursed under the program.    56.3(5) Use of funds.  An applicant shall use funds provided only for the purpose of reducing the cost ofservices of an independent financial professional for evaluating the feasibility of an ESOP and forming an ESOP. The authority may require documentation or other information establishing the actual costs incurred for such formation. The financial assistance shall be provided to the applicant after the costs are incurred and on a reimbursement basis.Costs incurred prior to approval of financial assistance will not be eligible for reimbursement.

        ITEM 3.    Amend rule 261—56.4(85GA,HF648) as follows:

    261—56.4(85GA,HF648) Program eligibility, application scoring, and funding decisions.      56.4(1) Program eligibility.  To be eligible under the program, an applicant shall meet all of the following requirements:    a.    The applicant shall be a business interested in establishing an ESOP. To establish that this criterion is met, the applicant shall state the reasons for its interest in establishing an ESOP.    b.    The applicant shall be, or be willing to become, an IRS subchapter C or subchapter S corporation. To establish that this criterion is met, the applicant shall include a copy of its articles and documentation establishing the applicable IRS election. An applicant not yet a corporation may be required to execute a letter of intent.    c.    The applicant shall have a valuation that is sufficient to make an ESOP feasible. To establish that this criterion is met, the applicant shall provide information estimating the value of the businessand information about the source of that estimate. This information may be a good-faith estimate. The authority will not set a specific minimum valuation; however, applicants are advised that a business with valuation less than $5 million may not be considered a feasible candidate for an ESOP.    d.    The applicant shall have a number of employees, eligible employee types, and a total payroll that are sufficient to make an ESOP feasible. To establish that this criterion is met, the applicant shall provide relevant payroll information. The authority will not set a specific minimum number of employees; however, applicants are advised that a business with fewer than 25 employees may not be a feasible candidate for an ESOP.    e.    The applicant shall have a cash flow level sufficient to make an ESOP feasible. To establish that this criterion is met, the applicant shall provide relevant financial statements. The authority will not set a minimum cash flow level; however, applicants are advised that a business with cash flow less than $500,000 may not be a feasible candidate for an ESOP.    f.    The applicant is not a retail business.    g.    The applicant is not a publicly traded company.    h.    The applicant has not completed a feasibility study for purposes of exploring an ESOP formationin the three years prior to application for the program.An applicant who has engaged a service provider as of the time of application shall provide a copy of the engagement letter to the authority.    i.    The applicant has not engaged a feasibility service provider prior to July 1, 2013. An applicant who has engaged a service provider as of the time of application shall provide a copy of the engagement letter to the authority.    56.4(2) Application scoring.  A business meeting the requirements of subrule 56.4(1) may apply to the authority for financial assistance under the program. The authority will review applications for completeness and. The authority may engage an ESOP advisory panel for assistance in evaluating the applicationsas needed. As part of the evaluation process, an applicant willmay be required to interview with authority staff and with members of the ESOP advisory panel about the applicant’s business, future plans, and interest in forming an ESOP. Authority staff and members of the ESOP advisory panel will evaluate the applications and give them an average numerical score between 0 and 100. The numerical score will reflect the extent to which an applicant is a feasible candidate for an ESOP. In determining the numerical score, the authority and the members of the advisory panel will take into account the extent to which each applicant meets the requirements of subrule 56.4(1). The authority will keep records of the scoring process and make those records available to applicants.    56.4(3) Funding decisions.  Each application, including its numerical score, will be referred to the director with a recommended funding decision. The director will make the final funding decision on each application, taking into consideration the score and the funding recommendation of the ESOP advisory panelauthority staff. The director may not approve funding for an application that receives an average score of less than 50 points.
        [Filed 1/23/23, effective 3/29/23][Published 2/22/23]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/22/23.
    ARC 6892CEconomic Development Authority[261]Adopted and Filed

    Rule making related to empower rural Iowa initiative

        The Economic Development Authority hereby amends Chapter 220, “Rural Housing Needs Assessment Grant Program,” Chapter 221, “Rural Innovation Grant Program,” and Chapter 222, “Empower Rural Iowa Program,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in 2019 Iowa Acts, Senate File 608; 2021 Iowa Acts, House File 871; and 2022 Iowa Acts, House File 2564.State or Federal Law Implemented    This rule making implements, in whole or in part, 2019 Iowa Acts, Senate File 608; 2021 Iowa Acts, House File 871; and 2022 Iowa Acts, House File 2564.Purpose and Summary    The Empower Rural Iowa Initiative was created by Executive Order Number 3 dated July 18, 2018, which directs the Authority to provide staffing and administrative assistance for the initiative and its associated task forces. The amendments to three chapters related to the initiative accomplish the following:

  • Renumber Chapters 220, 221, and 222 as Chapters 28, 29, and 30 in Part III, “Community Development Division,” of the Authority’s rules.
  • Remove redundant portions of renumbered Chapters 28 and 29.
  • Update scoring criteria in renumbered Chapters 28 and 29 to reflect current scoring practices.
  • Remove the minimum award amounts from renumbered Chapters 28 and 29 and clarify in each chapter that maximum and minimum award amounts will be established by the Authority.
  • Update references in renumbered Chapter 30 to appropriations for the Empower Rural Iowa Program in 2021 Iowa Acts, House File 871, and 2022 Iowa Acts, House File 2564.
  • Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on December 14, 2022, as ARC 6737C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Authority Board on January 20, 2023.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Authority for a waiver of the discretionary provisions, if any, pursuant to 261—Chapter 199.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on March 29, 2023.    The following rule-making actions are adopted:

        ITEM 1.    Renumber 261—Chapter 220 as 261—Chapter 28.

        ITEM 2.    Amend renumbered rule 261—28.1(88GA,SF608) as follows:

    261—28.1(88GA,SF608) Purpose.  Pursuant to 2019 Iowa Acts, Senate File 608, the authority is directed to establish aThe purpose of the rural housing needs assessment grant program to support the interpretation and implementation of hard data and housing-related information specific to the communities applying for financial assistance under this program. This grant program is intended to support the use of publicly available information and support community efforts to interpret hard data with supplemental information and to help communities implement changes to development codes, local ordinances, and housing incentives according to the community’s needs.

        ITEM 3.    Amend renumbered rule 261—28.2(88GA,SF608), definition of “Program,”, as follows:        "Program" means the procedures, agreement, terms, and assistancerural housing needs assessment grant program established and provided pursuant toin this chapter.

        ITEM 4.    Amend renumbered rule 261—28.3(88GA,SF608) as follows:

    261—28.3(88GA,SF608) Program description.      28.3(1) Amount, form, and timing of assistance.  This program provides financial assistance to applicants to support the interpretation and implementation of hard data and housing-related information specific to the communities applying for a grant under this program. The amount of assistance awarded will be determined by the authority and will be based on the total amount of funds available to the authority for the program and the costs specified in the application. Each award shall not be less than $1,000.The authority will establish a maximum grant award per application and a minimum grant award per application for each fiscal year in which funding is available. The authority will provide financial assistance in the form of a grant. Funds will be disbursed on a reimbursement basis for expenses incurred by the applicant after approval of an award by the director.    28.3(2) Application.      a.    Forms.All applications and other filings related to the program shall be on such forms and in accordance with such instructions as may be established by the authority. Information about the program, the application, and application instructions may be obtained by contacting the authority or by visiting the authority’s website: Iowa Economic Development Authority, Community Development Division, 1963 Bell Avenue, Suite 200, Des Moines, Iowa 50315, (515)348-6200, iowaeda.com.    b.    Application period.Each fiscal year during which funding is available, applications for financial assistance will only be accepted during the established application period, or periods, as identified by the authority on its website.    c.    Complete application required.An application shall not be considered submitted for review until the application is completed and all required supporting documentation and information are provided to the authority.    28.3(3) Approval of assistance.  Authority staff will review applications for financial assistance under the program, and a grant committee will score and recommend applications to the director in accordance with subrule 220.4(2). A project that does not receive funding may reapply.    28.3(4) Agreement required.  The authority shall enter into an agreement with each applicant for the receipt of a grant under this chapter. The agreement must state the terms on which financial assistance is to be provided. The authority may negotiate the terms of the agreement. The applicant shall execute the agreement before funds are disbursed under the program.    28.3(5) Form of financial assistance.  The authority will provide financial assistance in the form of a grant to the applicant. The amount of the grant and any other terms shall be included in the agreement required pursuant to this chapter.    28.(6) 28.3(3) Use of funds.      a.    An applicant shall use funds only for reimbursement of the costs directly related to the project. The authority may require documentation or other information establishing the actual costs incurred for a project. Failure to use the funds for reimbursement of the costs directly related to a project shall be grounds for default under the agreement required pursuant to this chapter.    b.    For purposes of this subrule, “costs directly related” does not include any expenses specified as ineligible in the agreement required pursuant to this chapter.

        ITEM 5.    Amend renumbered rule 261—28.4(88GA,SF608) as follows:

    261—28.4(88GA,SF608) Program eligibility, application scoring, and funding decisions.      28.4(1) Program eligibility.  An applicant must meet the following eligibility criteria to qualify for financial assistance under this program:    a.    The applicant must be an Iowa community as defined in rule 261—220.2(88GA,SF608)261—28.2(88GA,SF608).     b.    An applicant that is an incorporated city must have a population of 20,000 or less and shall not be contiguous to a city with a population of 40,000 or greater. An applicant that is a county shall be one of the 88 least populous counties in the state. An applicant that is a community designee shall have entered an agreement pursuant to Iowa Code chapter 28E with an incorporated city or county meeting the population criteria in this paragraph.     c.    An eligible applicant will be allowed to submit only one application per application period.     d.    The applicant must demonstrate the capacity for administering a grant.     e.    The applicant must demonstrate the feasibility of the project’s proposed scope and timeline with the funds requested.     f.    The applicant must identify and describe other sources of funding for the proposed assessment and related activities.     g.    The applicant must identify any partner organizations that will be utilized in interpreting and implementing the data collected through the assessment.     h.    The applicant must provide a cash match of at least 50 cents for every dollar awarded as a grant under this program.    28.4(2) Application scoring criteria.   All completed applications will be reviewed and scored. Each application will be scored using criteria set forth by the authority., which may include the following:    a.    Applicant readiness and partnerships. The application should demonstrate that the applicant is actively addressing housing needs and has identified diverse partners.    b.    Project goals and timeline. The application should demonstrate clearly defined, measurable goals and a timeline for execution of the project.    c.    Project budget and financing. The application should include a complete budget that provides clear justification for all costs. The application should also demonstrate secured financing and that the cash match requirement has been met.    d.    Additional points. Extra consideration is provided to applications that have projects supporting housing initiatives endorsed by the Iowa great places citizens advisory board, as well as those located in a community with a population of 10,000 or less.    28.4(3) Funding decisions.  Funding decisions will be made using the following process:    a.    Staff review.Each application will be reviewed by staff for eligibility and completeness. Complete applications meeting all eligibility requirements will be sent to a grant committee.     b.    Grant committee review and recommendation.Following staff review, a grant committee will review and score applications using the criteria set forth by the authority pursuant toin subrule 220.4(2)28.4(2) and will make funding recommendations. The committee may utilize an outside technical panel if the committee determines additional expertise is necessary to review and score the application. The application and score will be referred to the director with a recommendation as to whether to fund the project and, if funding is recommended, a recommendation as to the amount of the grant.    c.    Director’s decision.The director will make the final funding decision on each application, taking into consideration the amount of available funding and the grant committee’s recommendation. The director may approve, deny, or defer funding for any application.    d.    Notification.Each applicant will be notified in writing of the funding decision within 15 days of the director’s decision.

        ITEM 6.    Renumber 261—Chapter 221 as 261—Chapter 29.

        ITEM 7.    Amend renumbered rule 261—29.1(88GA,SF608) as follows:

    261—29.1(88GA,SF608) Purpose.  Pursuant to 2019 Iowa Acts, Senate File 608, the authority is directed to establish aThe purpose of the rural innovation grant programis to support creative, nontraditional ideas that focus on current issues and challenges faced by rural communities associated with the themes of community investment, growth, and connection.

        ITEM 8.    Amend renumbered rule 261—29.2(88GA,SF608), definition of “Program,”, as follows:        "Program" means the procedures, agreement, terms, and assistancerural innovation grant program established and provided pursuant toin this chapter.

        ITEM 9.    Amend renumbered rule 261—29.3(88GA,SF608) as follows:

    261—29.3(88GA,SF608) Program description.      29.3(1) Amount, form, and timing of assistance.  The program provides financial assistance to applicants to support creative, nontraditional ideas that focus on current challenges facing rural communities. The amount of assistance awarded will be determined by the authority based on the total amount of funds available to the authority for the program and based on the project details. Each award shall not be less than $1,000.The authority will establish a maximum grant award per application and a minimum grant award per application for each fiscal year in which funding is available. The authority will provide financial assistance in the form of a grant. Funds will be disbursed on a reimbursement basis for expenses incurred by the applicant after approval of an award by the director.    29.3(2) Application.      a.    Forms.All applications and other filings related to the program shall be on such forms and in accordance with such instructions as may be established by the authority. Information about the program, the application, and application instructions may be obtained by contacting the authority or by visiting the authority’s website: Iowa Economic Development Authority, Community Development Division, 200 East Grand Avenue, Des Moines, Iowa 50309, (515)328-3000, iowaeconomicdevelopment.com.    b.    Application period.Each fiscal year during which funding is available, applications for financial assistance will only be accepted during the established application period, or periods, as identified by the authority on its website.    c.    Frequency of application.An eligible applicant may only be named as the primary entity on one application per application period. However, an applicant who has applied as the primary entity for an application may also be named as a partner on additional applications submitted.     d.    Complete application required.An application shall not be considered submitted for review until the application is completed and all required supporting documentation and information are provided.    29.3(3) Approval of assistance.  Authority staff will review applications for financial assistance under the program, and a grant committee will score and recommend applications to the director in accordance with subrule 221.4(2). A project that does not receive funding may reapply.    29.3(4) Agreement required.  The authority shall enter into an agreement with each applicant for the receipt of a grant under this chapter. The agreement must state the terms on which the financial assistance is to be provided. The authority may negotiate the terms of the agreement. The applicant shall execute the agreement before funds are disbursed under the program.    29.3(5) Form of financial assistance.  The authority will provide financial assistance in the form of a grant to the applicant. The amount of the grant and any other terms shall be included in the agreement required pursuant to this chapter.    29.(6) 29.3(3) Use of funds.      a.    An applicant shall use funds only for reimbursement of the costs directly related to the project. The authority may require documentation or other information establishing the actual costs incurred for a project. Failure to use the funds for reimbursement of the costs directly related to a project shall be grounds for default under the agreement required pursuant to this chapter.    b.    For purposes of this subrule, “costs directly related” does not include ineligible expenses such as international travel, domestic travel outside the state of Iowa, insurance, training or professional development courses, and any other expenses specified as ineligible in the agreement required pursuant to this chapter.

        ITEM 10.    Amend renumbered rule 261—29.4(88GA,SF608) as follows:

    261—29.4(88GA,SF608) Program eligibility, application scoring, and funding decisions.      29.4(1) Program eligibility.  An applicant must meet the following eligibility criteria to qualify for financial assistance under this program:    a.    The applicant must meet the definition of “applicant” in rule 261—221.2(88GA,SF608)rule 261—29.2(88GA,SF608).     b.    If the applicant is not a local government entity, the applicant must demonstrate support from the local government entity as evidenced by a letter of support.    c.    The applicant must serve a city that has a population of 20,000 or less and that is not contiguous to a city with a population of 40,000 or greater.     d.    The applicant must demonstrate the capacity for administering a grant.     e.    The applicant must provide a cash match of at least 50 cents for every dollar awarded as a grant under this program.    f.    The applicant must demonstrate that the project does not consist of ongoing expenses for existing projects or programs.     29.4(2) Application scoring criteria.   All completed applications will be reviewed and scored. Each application will be scored using criteria set forth by the authority, which may include the following:    a.    Alignment with program purpose. The application should demonstrate that the project aligns with the program purpose by developing a nontraditional, concrete solution to increase rural community vibrancy.     b.    Solution-orientedInnovation. The application should demonstrate that the project will address rural challenges through exceptional and creative solutions.     c.    Replicability. The application should demonstrate a clear opportunity for successful replication in rural communities across the state.     d.    Roles defined. The application should identify and describe the roles of all partners involved in the project.     e.    Project goals and timeline. The application should demonstrate clearly defined, measurable goals and a timeline for execution of the project.     f.    Project budget and financing. The application should include a complete budget that provides clear justification for all costs. The application should also demonstrate secured financing and that the cash match requirement has been met.     g.    Additional points. Extra consideration is provided to projects that have been endorsed by the Iowa great places citizens advisory board (additional five points added to score total), as well as those located in a community with a population of 5,000 or less.    29.4(3) Funding decisions.  Funding decisions will be made using the following process:    a.    Staff review. Each application will be reviewed by staff for eligibility and completeness. Complete applications meeting all eligibility requirements will be sent to a grant committee.     b.    Grant committee review and recommendation. Following staff review, a grant committee will review and score applications using the criteria set forth by the authority pursuant toinsubrule 221.4(2)29.4(2) and will make funding recommendations. The committee may utilize an outside technical panel if the committee determines additional expertise is necessary to review and score the application. The application and score will be referred to the director with a recommendation as to whether to fund the project and, if funding is recommended, a recommendation as to the amount of the grant.    c.    Director’s decision. The director will make the final funding decision on each application, taking into consideration the amount of available funding and the grant committee’s recommendation. The director may approve, deny, or defer funding for any application.    d.    Notification. Each applicant will be notified in writing of the funding decision within 15 days of the director’s decision.

        ITEM 11.    Renumber 261—Chapter 222 as 261—Chapter 30.

        ITEM 12.    Amend renumbered rule 261—30.1(89GA,HF871) as follows:

    261—30.1(89GA,HF871,HF2564) Purpose.  The empower rural Iowa initiative was created by Executive Order Number 3 dated July 18, 2018, which directs the authority to provide staffing and administrative assistance for the initiative and its associated task forces. Pursuant to 2021 Iowa Acts, House File 871, the authority is directed to adopt rules to establish criteria for the distribution of funds appropriated in section 3, subsection 11, of the legislation to the empower rural Iowa program.

        ITEM 13.    Amend renumbered rule 261—30.2(89GA,HF871), parenthetical implementation statute, as follows:

    261—30.2(89GA,HF871,HF2564) Definitions.  

        ITEM 14.    Amend renumbered rule 261—30.3(89GA,HF871) as follows:

    261—30.3(89GA,HF871,HF2564) Eligible uses of funds.      30.3(1)   Funds appropriated to the authority for the empower rural Iowa program shall be used to address the challenges and opportunities of rural communities. Uses of funds shall be approved by the director.     30.3(2)   Eligible uses of funds include the following:    a.    The rural housing needs assessment grant program administered pursuant to 261—Chapter 220261—Chapter 28;     b.    The rural innovation grant program administered pursuant to 261—Chapter 221261—Chapter 29;    c.    Support for entrepreneurship and cooperative business models for businesses in rural communities;     d.    Leadership development training for representatives of rural communities;    e.    Education and training opportunities relating to succession planning for businesses in rural communities;    f.    Promotion of e-commerce opportunities for businesses in rural communities; and    g.    Implementation of additional recommendations published by the investing in rural Iowa task force, the growing rural Iowa task force, and the connecting rural Iowa task force created by the empower rural Iowa initiative and administered by the authority.

        ITEM 15.    Amend renumbered 261—Chapter 30, implementation sentence, as follows:       These rules are intended to implement 2021 Iowa Acts, House File 871, and 2022 Iowa Acts, House File 2564.     [Filed 1/23/23, effective 3/29/23][Published 2/22/23]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/22/23.ARC 6899CIowa Finance Authority[265]Adopted and Filed

    Rule making related to the updated 2023 4% qualified allocation plan

        The Iowa Finance Authority hereby amends Chapter 12, “Low-Income Housing Tax Credits,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 16.5.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 16.35.Purpose and Summary    The updated 2023 4% Qualified Allocation Plan (4% QAP) sets forth the purposes of the plan, administrative information required for participation, threshold criteria, selection criteria, post-reservation requirements, the appeal process, and compliance monitoring. The plan also establishes the fees for filing an application for low-income housing tax credits and for compliance monitoring. Copies of the 4% QAP are available upon request from the Authority and are available electronically on the Authority’s website at www.iowafinance.com. It is the Authority’s intent to incorporate the updated 2023 4% QAP by reference consistent with Iowa Code chapter 17A and 265—subrules 17.4(2) and 17.12(2).Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on November 2, 2022, as ARC 6618C.    The Authority did not receive comments on the Notice but did receive comments on the draft QAP. The draft QAP was posted on the Authority’s website for public comment beginning October 10, 2022, and remained open for public comment until November 2, 2022. Pursuant to Treasury regulations, a public hearing regarding the draft QAP was held on November 2, 2022. The Authority received comments asking the Authority to increase the developer fee to a flat 18 percent, regardless of the project’s size. The developer making this request also stated that increasing the developer fee to 18 percent would allow developers to defer a greater portion of the developer fee, thus increasing the options for financing projects. The Authority agreed to increase the developer fee and allow a developer fee not to exceed 18 percent. The Authority received comments asking the Authority to change the replacement reserve requirements in the draft 4% QAP to mirror those in the 9% QAP, stating that doing so would lower costs for 4 percent tax credit projects, which are typically harder to complete than 9 percent projects. The Authority agreed to make this change. The Authority received a request to allow for a master lease to be used for projects that are financed with both the 4 percent housing tax credit and federal and state historic tax credits. The Authority agreed to make this change. Several commenters requested clarification of language in the draft. The Authority provided the clarification requested.     The dates of incorporation in this rule making have been revised to indicate the date that final changes to the 4% QAP were adopted by the Authority.Adoption of Rule Making    This rule making was adopted by the Authority on December 7, 2022.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, the impact on jobs is expected to be consistent with the impact of previous years’ QAPs. The Low-Income Housing Tax Credit Program has had a substantial positive impact on employment in Iowa, creating many jobs annually in the construction, finance, and property management fields, among others.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Authority for a waiver of the discretionary provisions, if any, pursuant to 265—Chapter 18.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on March 29, 2023.    The following rule-making actions are adopted:

        ITEM 1.    Amend subrule 12.1(1) as follows:    12.1(1) Four percent qualified allocation plan.  The qualified allocation plan titled Iowa Finance Authority Low-Income Housing Tax Credit Program 2020-212023 4% Qualified Allocation Plan (“4% QAP”) dated November 6, 2019December 7, 2022, shall be the qualified allocation plan for the allocation of 4 percent low-income housing tax credits consistent with IRC Section 42 and the applicable Treasury regulations and Iowa Code section 16.35. The 4% QAP is incorporated by reference pursuant to Iowa Code section 17A.6 and 265—subrules 17.4(2) and 17.12(2). The 4% QAP does not include any amendments or editions created subsequent to November 6, 2019December 7, 2022.

        ITEM 2.    Amend subrule 12.2(1) as follows:    12.2(1) 4% QAP.  The 4% QAP can be reviewed and copied in its entirety on the authority’s website at www.iowafinanceauthority.govwww.iowafinance.com. Copies of the 4% QAP, application, and all related attachments and exhibits shall be deposited with the administrative rules coordinator and at the state law library and shall be available on the authority’s website. The 4% QAP incorporates by reference IRC Section 42 and the regulations in effect as of November 6, 2019December 7, 2022. Additionally, the 4% QAP incorporates by reference Iowa Code section 16.35. These documents are available from the state law library, and information about these statutes, regulations and rules is on the authority’s website.    [Filed 1/27/23, effective 3/29/23][Published 2/22/23]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/22/23.
    ARC 6898CProfessional Licensure Division[645]Adopted and Filed

    Rule making related to initial licensure and licensure reactivation

        The Board of Barbering hereby amends Chapter 21, “Licensure,” and Chapter 24, “Continuing Education for Barbers,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code chapters 158 and 272C and section 147.76.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapters 147 and 158.Purpose and Summary    This rule making changes the process of applying for endorsement by requiring an applicant to provide verification of licensure only from the jurisdiction in which the applicant was most recently licensed and disclose public or pending complaints in any other jurisdiction and by removing notary requirements. This rule making also updates the definitions of “hour of continuing education” and “independent study” and removes the requirement for a posttest.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on August 10, 2022, as ARC 6459C. A public hearing was held on August 30, 2022, at 9 a.m. in the Fifth Floor Conference Room 526, Lucas State Office Building, Des Moines, Iowa. No one attended the public hearing. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Board on January 26, 2023.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    This rule making expedites initial licensure and licensure reactivation, which supports the Governor’s priorities.Waivers    A waiver provision is not included in this rule making because all administrative rules of the professional licensure boards in the Professional Licensure Division are subject to the waiver provisions accorded under 645—Chapter 18.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on March 29, 2023.    The following rule-making actions are adopted:

        ITEM 1.    Amend paragraph 21.2(1)"f" as follows:    f.    An applicant shall provide verification of license(s)license from everythe state in which the applicant hasmost recently been licensed as a barber, sent directly from the state(s)state to the Iowa board of barbering office.The applicant must also disclose any public or pending complaints against the applicant in any other jurisdiction.

        ITEM 2.    Amend paragraph 21.2(2)"b" as follows:    b.    Provide a notarized copy of the certificate or diploma awarded to the applicant from a barber school in the country in which the applicant was educated.

        ITEM 3.    Amend subrule 21.16(3) as follows:    21.16(3)   Provide verification of current competence to practice as a barber by satisfying one of the following criteria:    a.    If the license has been on inactive status for five years or less, an applicant must provide the following:    (1)   Verification of the license(s)license from everythe jurisdiction in which the applicant is or has been licensed and is or hasmost recently been practicing during the time period the Iowa license was inactive, sent directly from the jurisdiction(s)jurisdiction to the board office. The applicant must also disclose any public or pending complaints against the applicant in any other jurisdiction. Web-based verification may be substituted for verification from a jurisdiction’s board office if the verification includes:
    1. Licensee’s name;
    2. Date of initial licensure;
    3. Current licensure status; and
    4. Any disciplinary action taken against the license; and
        (2)   Verification of completion of three hours of continuing education that meet the continuing education standards defined in rule 645—24.3(158,272C) within two years of application for reactivation; or verification of active practice, consisting of a minimum of 2,080 hours, in another state or jurisdiction during the two years preceding an application for reactivation.
        b.    If the license has been on inactive status for more than five years, an applicant must provide the following:    (1)   Verification of the license(s)license from everythe jurisdiction in which the applicant is or has been licensed and is or hasmost recently been practicing during the time period the Iowa license was inactive, sent directly from the jurisdiction(s)jurisdiction to the board office. The applicant must also disclose any public or pending complaints against the applicant in any other jurisdiction. Web-based verification may be substituted for verification from a jurisdiction’s board office if the verification includes:
    1. Licensee’s name;
    2. Date of initial licensure;
    3. Current licensure status; and
    4. Any disciplinary action taken against the license; and
        (2)   Verification of completion of three hours of continuing education that meet the continuing education standards defined in rule 645—24.3(158,272C) within two years of application for reactivation; andor verification of active practice, consisting of a minimum of 2,080 hours, in another state or jurisdiction during the two years preceding an application for reactivation.    (3)   Verification of passing the examinations required by the board within one year immediately prior to reactivation if the applicant does not have a current license and has not been in active practice in the United States during the past five years.

        ITEM 4.    Adopt the following new subrule 21.16(5):    21.16(5)   Submit a sworn statement of previous barbering practice from an employer or professional associate, detailing places and dates of employment and verifying that the applicant has practiced barbering at least 2,080 hours or taught as the equivalent of a full-time faculty member for at least one of the immediately preceding years during the last two-year time period. Sole proprietors may submit the sworn statement on their own behalf.

        ITEM 5.    Amend rule 645—24.1(158), definitions of “Hour of continuing education” and “Independent study,” as follows:        "Hour of continuing education" means at least 50 minutes spent by a licensee in actual attendance at and completion of an approved continuing education activitycompleting an approved continuing education activity through live, virtual, online or prerecorded means where the instructor provides proof of completion by the licensee as set forth in these rules.        "Independent study" means a subject/program/activity that a person pursues autonomously that meets standards for approval criteria in the rules and includes a posttest.    [Filed 1/26/23, effective 3/29/23][Published 2/22/23]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/22/23.
    ARC 6897CProfessional Licensure Division[645]Adopted and Filed

    Rule making related to licensure

        The Board of Chiropractic hereby amends Chapter 41, “Licensure of Chiropractic Physicians,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 147.76 and 151.11.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 151.Purpose and Summary    These amendments change the process of applying for endorsement by requiring an applicant to provide verification of licensure only from the jurisdiction in which the applicant was most recently licensed, by requiring an applicant to disclose public or pending complaints in any other jurisdiction, and by removing notary requirements.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on November 16, 2022, as ARC 6665C. A public hearing was held on December 7, 2022, at 8:30 a.m. in the Fifth Floor Board Conference Room 526, Lucas State Office Building, Des Moines, Iowa. No one attended the public hearing. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Board on January 11, 2023.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    A waiver provision is not included in this rule making because all administrative rules of the professional licensure boards in the Professional Licensure Division are subject to the waiver provisions accorded under 645—Chapter 18. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on March 29, 2023.    The following rule-making actions are adopted:

        ITEM 1.    Amend paragraph 41.4(2)"b" as follows:    b.    Provide a notarized copy of the certificate or diploma awarded to the applicant from a chiropractic program in the country in which the applicant was educated.

        ITEM 2.    Amend paragraph 41.6(2)"c" as follows:    c.    Provides a notarized copy of the diploma (no larger than 8 ½ ″ × 11″) along with an official copy of the transcript from a CCE-accredited and board-approved chiropractic school sent directly from the school to the board office;

        ITEM 3.    Amend paragraph 41.6(2)"e", introductory paragraph, as follows:    e.    Provides verification of license(s)license from everythe jurisdiction in which the applicant hasmost recently been licensed, sent directly from the jurisdiction(s)jurisdiction to the board office.The applicant must also disclose any public or pending complaints against the applicant in any other jurisdiction. Web-based verification may be substituted for verification direct from the jurisdiction’s board office if the verification provides:    [Filed 1/26/23, effective 3/29/23][Published 2/22/23]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/22/23.
    ARC 6896CProfessional Licensure Division[645]Adopted and Filed

    Rule making related to licensure

        The Board of Physician Assistants hereby amends Chapter 326, “Licensure of Physician Assistants,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 147.76.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 148C.Purpose and Summary    This amendment changes the process of applying for endorsement by requiring an applicant to provide verification of licensure only from the jurisdiction in which the applicant was most recently licensed and disclose public or pending complaints in any other jurisdiction.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on November 16, 2022, as ARC 6664C. A public hearing was held on December 7, 2022, at 8:30 a.m. in the Fifth Floor Board Conference Room 526, Lucas State Office Building, Des Moines, Iowa. No one attended the public hearing. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Board on January 25, 2023.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    A waiver provision is not included in this rule making because all administrative rules of the professional licensure boards in the Professional Licensure Division are subject to the waiver provisions accorded under 645—Chapter 18. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on March 29, 2023.    The following rule-making action is adopted:

        ITEM 1.    Amend subrule 326.4(5), introductory paragraph, as follows:    326.4(5)   Provide verification of license(s)license from everythe jurisdiction in which the applicant hasmost recently been licensed, sent directly from the jurisdiction(s)jurisdiction to the board office.The applicant must also disclose any public or pending complaints against the applicant in any other jurisdiction. Web-based verification may be substituted for verification direct from the jurisdiction’s board office if the verification provides:    [Filed 1/26/23, effective 3/29/23][Published 2/22/23]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/22/23.
    ARC 6894CRacing and Gaming Commission[491]Adopted and Filed

    Rule making related to gambling games

        The Racing and Gaming Commission hereby amends Chapter 1, “Organization and Operation,” Chapter 5, “Track, Gambling Structure, and Excursion Gambling Boat Licensees’ Responsibilities,” Chapter 6, “Occupational and Vendor Licensing,” and Chapter 8, “Pari-Mutuel Wagering, Simulcasting and Advance Deposit Wagering,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 99D.7, 99E.3 and 99F.4.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapters 99D, 99E and 99F; 2020 Iowa Acts, House File 2389; and 2022 Iowa Acts, House Files 803 and 2497.Purpose and Summary    Item 1 implements changes required by 2022 Iowa Acts, House File 2497.    Item 2 implements changes required by 2020 Iowa Acts, House File 2389.    Item 3 implements changes required by 2022 Iowa Acts, House File 2497.    Item 4 implements changes required by 2022 Iowa Acts, House File 2497.    Item 5 implements changes required by 2022 Iowa Acts, House File 803.    Item 6 implements changes required by 2022 Iowa Acts, House File 2497.    Item 7 implements changes required by 2022 Iowa Acts, House File 803.    Item 8 implements changes required by 2022 Iowa Acts, House File 803.    Item 9 implements changes required by 2022 Iowa Acts, House File 2497.    Item 10 implements changes required by 2022 Iowa Acts, House File 2497.    Item 11 implements changes required by 2022 Iowa Acts, House File 2497.    Item 12 implements changes required by 2022 Iowa Acts, House File 2497.    Item 13 implements changes required by 2022 Iowa Acts, House File 2497.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on September 21, 2022, as ARC 6542C. A public hearing was held on October 11, 2022, at 9 a.m. at the Commission Office, Suite 100, 1300 Des Moines Street, Des Moines, Iowa. No one attended the public hearing. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Commission on January 26, 2023.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Commission for a waiver of the discretionary provisions, if any.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on March 29, 2023.    The following rule-making actions are adopted:

        ITEM 1.    Adopt the following new subrule 1.5(14):    1.5(14) Alternative simulcast license application.  This form shall contain, at a minimum, the full name of the applicant, all ownership interests, balance sheets and profit-and-loss statements for three fiscal years immediately preceding the application, pending legal action, agreement with licensed facility or description of proposed operation, and a notarized certification of truthfulness. The form may include other information the commission deems necessary to make a decision on the license application.

        ITEM 2.    Rescind and reserve subrule 1.8(21).

        ITEM 3.    Amend subrule 5.4(16) as follows:    5.4(16) Officers, agents, and employees.  Licensees are accountable for the conduct of their officers, agents, and employees. The commission or commission representative reserves the right to impose penalties against the license holder or its officer, agent, employee, or both as the commission or commission representative determines appropriate. In addition, the licensee shall be responsible for the conduct of nonlicensedemployees and other personsworking on behalf of the licensee inpublic and nonpublic areas of the excursion gambling boat, gambling structure, or racetrack enclosure.

        ITEM 4.    Amend subrule 6.2(1) as follows:    6.2(1)   All licensees for internet fantasy sports contests and all persons participating in any capacity at a racing or gaming facility,Licensee staff engaged in administration, control, conduct of gambling games, racing and sports wagering and fantasy sports contest board members, with the exception of certified law enforcement officers while they are working for the facility as uniformed officers, are required to be properly licensed by the commission.    a.    License applicants may be required to furnish to the commission a set of fingerprints and may be required to be refingerprinted or rephotographed periodically.    b.    License applicants must supply current photo identification and proof of their social security number and date of birth.    c.    License applicants must complete and sign the application form prescribed and published by the commission. An incomplete application shall not be processed. The application shall state the full name, social security number, residence, date of birth, and other personal identifying information of the applicant that the commission deems necessary. The application shall include, in part, whether the applicant has any of the following:    (1)   A record of conviction of a felony or misdemeanor, including a record involving the entry of a deferred judgment and adjudications of delinquency;    (2)   An addiction to alcohol or a controlled substance;    (3)   A history of mental illness or repeated acts of violence;    (4)   Military convictions;    (5)   Adjudication of delinquency; or    (6)   Overdue income taxes, fines, court-ordered legal obligations, or judgments.    d.    License applicants for designated positions of higher responsibility may be required to complete a division of criminal investigation (DCI) background form.    e.    A fee set by the commission shall be assessed to each license applicant. Once a license is issued, the fee cannot be refunded.    f.    License applicants must pay an additional fee set by the Federal Bureau of Investigation (FBI) and by the department of public safety (DCI and bureau of identification) to cover the cost associated with the search and classification of fingerprints.    g.    All racing and gaming commission fees for applications or license renewals must be paid by applicants or licensees before a license will be issued or renewed or, if the applicant is an employee of a facility, the commission fees will be directly billed to the facility.    h.    An applicant who knowingly makes a false statement on the application is guilty of an aggravated misdemeanor.    i.    Participation in racing and gaming, sports wagering, and internet fantasy sports contests in the state of Iowa is a privilege and not a right. The burden of proving qualifications to be issued any license is on the applicant at all times. An applicant must accept any risk of adverse public notice, embarrassment, criticism, or other action, as well as any financial loss that may result from action with respect to an application.    j.    All licenses are conditional until completion of a necessary background investigation including, but not limited to, fingerprint processing through the DCI and the FBI and review of records on file with national organizations, courts, law enforcement agencies, and the commission.    k.    Any licensee who allows another person use of the licensee’s license badge for the purpose of transferring any of the benefits conferred by the license may be fined, have the license suspended or revoked, or be subject to any combination of the above-mentioned sanctions. No license shall be transferable and no duplicate licenses shall be issued except upon submission of an application form and payment of the license fee.    l.    It shall be the affirmative responsibility and continuing duty of each applicant to provide all information, documentation, and assurances pertaining to qualifications required or requested by the commission or commission representatives and to cooperate with commission representatives in the performance of their duties. A refusal by any person to comply with a request for information from a commission representative shall be a basis for fine, suspension, denial, revocation, or disqualification.    m.    Non-U.S. citizens must supply documentation authorizing them to work in the United States or supply documentation demonstrating compliance with the North American Free Trade Agreement.    n.    Portions of all completed applications accepted by the commission are confidential. The following persons have the explicit right to review all information contained on the application: the applicant, all commission officials and employees, the track steward, and DCI agents or other law enforcement officers serving in their official capacity.    o.    A license may not be issued or held by an applicant who is unqualified, by experience or otherwise, to perform the duties required.    p.    A license may not be issued to applicants who have not previously been licensed in the following occupations except upon recommendation by the commission representative: trainers, assistant trainers, jockeys, apprentice jockeys, exercise persons, and other occupations the commission may designate. The commission representative may, for the purpose of determining a recommendation under this subrule, consult a representative of the facility, horsemen, or jockeys.

        ITEM 5.    Amend paragraph 6.5(1)"f" as follows:    f.    A license shall be denied if the applicant has an addiction to alcohol or a controlled substance without sufficient evidence of rehabilitation, has a history of mental illness without demonstrating successful treatment by a licensed medical physicianor physician assistant, or has a history of repeated acts of violence without sufficient evidence of rehabilitation.

        ITEM 6.    Amend subrule 6.14(3) as follows:    6.14(3)   Any employee who works for a licensed vendor and will be supplying the goods or services to the facility must have a vendor employee license.Only employees who work for a racing, sports wagering, or simulcast vendor require an occupational license. A vendor license must be issued before a vendor employee can be issued a license to represent that company. The authorized signature on the vendor employee’s application must be the signature of the person authorized by the vendor application to sign vendor employee applications.

        ITEM 7.    Amend paragraph 6.24(1)"b" as follows:    b.    A jockey shall pass a physical examination given within the previous 12 months by a licensed physicianor physician assistant affirming fitness to participate as a jockey. The commission representatives may require that any jockey be reexamined and may refuse to allow any jockey to ride pending completion of such examination.

        ITEM 8.    Amend subrule 6.28(2) as follows:    6.28(2) Drug prohibition/body fluid test.  Licensees whose duties require them to be in a restricted area, as defined in subrule 6.28(1), of a racing facility shall not have present within their systems any controlled substance as listed in Schedules I to V of U.S.C. Title 21 (Food and Drug Section 812), Iowa Code chapter 124 or any prescription drug unless it was obtained directly or pursuant to valid prescription or order from a duly licensed physicianor physician assistant who is acting in the course of professional practice. Acting with reasonable cause, a commission representative may direct the above licensees to deliver a specimen of urine or subject themselves to the taking of a blood sample or other body fluids at a collection site approved by the commission. In these cases, the commission representative may prohibit the licensee from participating in racing until the licensee evidences a negative test result. Sufficient sample should be collected to ensure a quantity for a split sample when possible. A licensee who refuses to provide the samples herein described shall be in violation of these rules and shall be immediately suspended and subject to disciplinary action by the board or commission representative. All confirmed positive test costs and any related expenses shall be paid for by the licensee. Negative tests shall be at the expense of the commission.With reasonable cause noted, an on-duty commission representative may direct a licensee to deliver a test. The commission representative shall call the approved laboratory or hospital and provide information regarding the person who will be coming; that the licensee will have a photo ID; the name and number to call when the licensee arrives; to whom and where to mail the results; and who should be called with the results. The licensee will be directed to immediately leave the work area and proceed to an approved laboratory or hospital for testing with the following directions:
    1. If under impairment, the licensee must have another person drive the licensee to the laboratory or hospital.
    2. On arrival at the laboratory or hospital, the licensee must show the license to the admitting personnel for verification.
    3. On arrival at the laboratory or hospital, the licensee shall be required to sign a consent for the release of information of the results to a commission representative.

        ITEM 9.    Adopt the following new definition of “Alternative simulcast operator” in rule 491—8.1(99D):        "Alternative simulcast operator" "ASO" means an entity licensed by the commission to provide a system of pari-mutuel wagering at off-track betting venues at facilities licensed by the commission to conduct gambling games in Iowa.

        ITEM 10.    Amend paragraph 8.6(1)"a" as follows:    a.    A licensee may request authorization from the commission to conduct advance deposit wagering pursuant to Iowa Code section 99D.11(6)“c” and these rulesthis chapter. As part of the request, the licensee shall submit a detailed plan of how its advance deposit wagering system would operate. The commission may require changes in a proposed plan of operations as a condition of granting a request. No subsequent changes in the system’s operation may occur unless ordered by the commission or until approval is obtained from the commission after it receives a written request.

        ITEM 11.    Amend paragraph 8.6(2)"a" as follows:    a.    A person must have an established account in order to place advance deposit wagers. An account may be established in person at the licensee’s facility or with the ADWO by mail or electronic means. For establishing an account, the application must be signed or otherwise authorized in a manner acceptable to the commission and shall include the applicant’s full legal name, principal residence address, telephone number, and date of birth and any other information required by the commission. The licensee and ADWO shall have a process to verify that the player is not on the statewide self-exclusion list set forth in Iowa Code section 99F.4(22)99D.7(23) prior to establishing an account. The licensee and ADWO shall review and deactivate accounts of newly enrolled participants of the statewide self-exclusion program and comply with all other requirements set forth by the commission and in Iowa Code section 99F.4(22)99D.7(23).

        ITEM 12.    Amend subrule 8.6(3) as follows:    8.6(3) Operation of an account.  The ADWO shall submit operating procedures with respect to licensee account holder accounts for commission approval. The submission shall include controls and reasonable methods that provide for the following:    a.    A written report to the commission for any incident where there is a violation of Iowa Code chapter 99D or 99F, a commission rule or order, or an internal control within 72 hours of detection. In addition to the written report, the ADWO shall provide immediate notification to the commission if an incident involves employee theft, criminal activity, or a violation of Iowa Code chapter 99D or 99F.Written notification to the commission consistent with 491—paragraph 5.4(5)“c.”    b.    The segregation of incompatible functions so that no employee is in a position to perpetrate and conceal errors or irregularities in the normal course of the employee’s duties.    c.    User access controls for all sensitive and secure, physical and virtual, areas and systems within a wagering operation.    d.    Treatment of problem gambling by:Problem gambling controls consistent with 491—subrule 5.4(12).    (1)   Identifying problem gamblers.    (2)   Complying with the process established by the commission pursuant to Iowa Code section 99F.4(22) and 491—subrule 5.4(12).    (3)   Cooperating with the Iowa gambling treatment program in creating and establishing controls.    (4)   Including information on the availability of the gambling treatment program in a substantial number of the licensee’s advertisements and printed materials.    e.    Setoff winnings of customers who have a valid lien established under Iowa Code chapter 99F.

        ITEM 13.    Adopt the following new rule 491—8.7(99D):

    491—8.7(99D) Alternative simulcast operator.      8.7(1) Authorization to conduct alternative simulcast.      a.    An entity may request authorization from the commission to conduct alternative simulcast wagering pursuant to Iowa Code section 99D.9D and this chapter. As part of the request, the entity shall submit a detailed plan of how its wagering system would operate. The commission may require changes in a proposed plan of operations as a condition of granting a request. No subsequent changes in the system’s operation may occur unless ordered by the commission or until approval is obtained from the commission after it receives a written request.    b.    The commission may conduct investigations or inspections or request additional information from the entity as the commission deems appropriate in determining whether to allow an entity to conduct an alternative simulcast operation.    c.    The entity shall establish and manage an alternative simulcast wagering center.    d.    The commission may issue an ASO license that complies with the requirements of Iowa Code section 99D.9D and the additional criteria as established by the commission. The terms of any ASO license shall include but not be limited to:    (1)   Fees to be paid on any races subject to pari-mutuel wagering.    (2)   An annual license fee in an amount to be determined by the commission.    (3)   Completion of all necessary background investigations as determined by the commission.    (4)   Acceptance of wagers on live races conducted at the horse racetrack in Polk County.    (5)   A bond or irrevocable letter of credit on behalf of the alternative simulcast operator to be determined by the commission.    (6)   Certification of secure retention of all records related to alternative simulcast and off-track wagering for a period of not less than three years or such longer period as specified by the commission.    (7)   Utilization and communication of pari-mutuel wagers to a pari-mutuel system meeting all requirements for pari-mutuel systems employed by licensed racing facilities in Iowa.    e.    Commission access to and use of information concerning alternative simulcast and off-track wager transactions shall be considered proprietary, and such information shall not be disclosed publicly except as may be required pursuant to statute or court order or except as part of the official record of any proceeding before the commission. This requirement shall not prevent the sharing of this information with other pari-mutuel regulatory authorities or law enforcement agencies for investigative purposes.    8.7(2) Operation of an ASO.  The ASO shall submit operating procedures and controls that provide for the following:    a.    Written notification to the commission consistent with 491—paragraph 5.4(5)“c.”    b.    The segregation of incompatible functions so that no employee is in a position to perpetrate and conceal errors or irregularities in the normal course of the employee’s duties.    c.    User access controls for all sensitive and secure, physical and virtual, areas and systems within a wagering operation.    d.    Problem gambling controls consistent with 491—subrule 5.4(12).    e.    Setoff winnings of customers who have a valid lien established under Iowa Code chapter 99F.
        [Filed 1/26/23, effective 3/29/23][Published 2/22/23]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/22/23.
    ARC 6895CRacing and Gaming Commission[491]Adopted and Filed

    Rule making related to proceedings, gambling, wagering, horse racing, gambling games, and fantasy sports contests

        The Racing and Gaming Commission hereby amends Chapter 4, “Contested Cases and Other Proceedings,” Chapter 5, “Track, Gambling Structure, and Excursion Gambling Boat Licensees’ Responsibilities,” Chapter 8, “Pari-Mutuel Wagering, Simulcasting and Advance Deposit Wagering,” Chapter 10, “Thoroughbred and Quarter Horse Racing,” Chapter 11, “Gambling Games,” Chapter 12, “Accounting and Cash Control,” Chapter 13, “Sports Wagering,” and Chapter 14, “Fantasy Sports Contests,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 99D.7, 99E.3 and 99F.4.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 99D.7, 99E.3 and 99F.4.Purpose and Summary    Item 1 updates a citation to a codified Iowa Code section.    Item 2 increases the administrative penalty for gaming board matters.    Item 3 corrects the name of a degree.    Item 4 clarifies language to allow for situations for which a contract already provides.    Item 5 changes the 30-day requirement for submission of a qualifying agreement to 60 days for Iowa vendors.    Item 6 incorporates language for consistency with the Iowa Code.    Item 7 changes the 90-day requirement to 60 days to submit a network security risk assessment report.    Item 8 rescinds a subrule to clarify that racing wagers are allowed no more than one hour ahead of scheduled post time.    Item 9 adds a type of wager that may be prohibited in relation to contests with seven or fewer horses in a race.    Item 10 clarifies which records held by advance deposit wagering operators should be available to the Commission.    Item 11 allows for jockey agents to be in otherwise prohibited areas with advance written permission by the stewards.    Item 12 allows for a type of bonus wager that is statistically dependent on other outcomes.    Item 13 allows access to bank accounts on the gaming floor using a cashless system.    Item 14 clarifies use of a form to attest to reserves on hand.    Item 15 clarifies the way sports wagering operators report suspicious activities.    Item 16 clarifies reporting requirements for sports wagering Internal Revenue Service form W-2G events.    Item 17 clarifies which records held by advance deposit sports wagering (ADSW) operators should be available to the Commission.    Item 18 eliminates the in-person registration requirement for sports wagering.    Item 19 clarifies that an unusual, suspicious login attempt shall result in a locked account.    Item 20 clarifies reserve requirements for ADSW operators.    Item 21 clarifies expectations for change control process for ADSW operators.    Item 22 changes the 30-day requirement to 60 days to submit an ADSW system risk assessment report.    Item 23 removes a provision that prohibited fantasy sports wagers on collegiate events.    Item 24 clarifies which records held by fantasy sports operators should be available to the Commission.    Item 25 changes the 30-day requirement to 60 days to submit a fantasy sports contest system risk assessment report.    Item 26 removes a provision that prohibited fantasy sports wagers on collegiate events.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on November 2, 2022, as ARC 6610C. A public hearing was held on November 22, 2022, at 10 a.m. at the Commission Office, Suite 100, 1300 Des Moines Street, Des Moines, Iowa. No one attended the public hearing.    Comments were received from three stakeholders. Three changes from the Notice have been made that did not significantly change the meaning or intention of either rule.    In Item 10, Item 17, and Item 24 “immediate” has been changed to “prompt” and, also in Item 17, “contests” has been changed to “wagers.”Adoption of Rule Making    This rule making was adopted by the Commission on January 26, 2023.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Commission for a waiver of the discretionary provisions, if any.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on March 29, 2023.    The following rule-making actions are adopted:

        ITEM 1.    Amend rule 491—4.2(17A), definition of “Contested case,” as follows:        "Contested case" means a proceeding defined by Iowa Code section 17A.2(5) and includes any matter defined as a no factual dispute contested case under 1998 Iowa Acts, chapter 1202, section 14Iowa Code section 17A.10A.

        ITEM 2.    Amend rule 491—4.7(99D,99E,99F), introductory paragraph, as follows:

    491—4.7(99D,99E,99F) Penalties (gaming board and board of stewards).  All penalties imposed will be promptly reported to the commission and facility or other licensed entity in writing. The board may impose one or more of the following penalties: eject and exclude an individual from a facility; revoke a license; suspend a license for up to five years from the date of the original suspension; place a license on probation; deny a license; impose a fine of up to $1000; or order a redistribution of a racing purse or the payment of or the withholding of a gaming payout.The board of stewards may impose a fine of up to $1,000, and the gaming board may impose a fine of up to $3,000. The board may set the dates for which the suspension must be served. The board may also suspend the license of any person currently under suspension or in bad standing in any other state or jurisdiction by a state racing or gaming commission. If the punishment so imposed is not sufficient, in the opinion of the board, the board shall so report to the commission.

        ITEM 3.    Amend subrule 4.22(4) as follows:    4.22(4)   An administrative law judge assigned to act as presiding officer in a contested case shall have a Juris DoctorateDoctor degree unless waived by the agency.

        ITEM 4.    Amend subparagraph 5.4(8)"a" as follows:    (1)   All contracts and business arrangements entered into by a facility are subject to commission jurisdiction. Written and verbal contracts and business arrangements involving a related party or in which the term exceeds three years or the total value in a calendar year exceeds $100,000 regardless of payment method are agreements that qualify for submission to and approval by the commission. Contracts and business arrangements with entities licensed pursuant to rule 491—11.13(99F) to obtain gambling games and implements of gambling, as defined by rule 491—11.1(99F), are exempt from submission to and approval by the commission. For the purpose of this subrule, a qualifying agreement shall be limited to:
    1. Any obligation that expends, encumbers, or loans facility assets to anyone other than a not-for-profit entity, a unit of government for the payment of taxes, or an entity that provides water, sewer, gas or electric utility services to the facility.
    2. Any disposal of facility assets or provision of goods and services at less than market value to anyone other than a not-for-profit entity or a unit of government.
    3. A previously approved qualifying agreement, if consideration exceeds the approved amount in a calendar year by the greater of $100,000 or 25 percent or if the commission approval date of an ongoing contract is more than five years old.
    4. Any type of contract, regardless of value or term, where a third party provides electronic or mechanical access to cash or credit for a patron of the facility. TheWhere not already available, the contract must contain a clause that provides for immediate notification and implementation when technology becomes available to allow a person to voluntarily bar the person’s access to receive cash or credit from such devices located on the licensed premises.

        ITEM 5.    Amend subparagraph 5.4(8)"a" as follows:    (3)   A qualifying agreement must be submittedapproved by the commission within 3060 days of executionif made in Iowa pursuant to subparagraph 5.4(8)“b”(4) or within 30 days of execution if not made in Iowa. Commission approval must be obtained prior to implementation, unless the qualifying agreement contains a written clause stating that the agreement is subject to commission approvaland the qualifying agreement is submitted to commission staff prior to implementation. Qualifying agreements need only be submitted on initiation, unless there is a material change in terms or noncompliance withsubparagraph 5.4(8)“b”(4) or to comply withnumbered paragraph 5.4(8)“a”(1)“3.”

        ITEM 6.    Amend paragraph 5.4(12)"a" as follows:    a.    The holder of a license to operate gambling games and the holder of a license to accept simulcast wagering shall adopt and implement policies and procedures designed to:    (1)   Identify problem gamblers;     (2)   Comply with the process established by the commission to allow a person to be voluntarily excluded from the gaming floor of an excursion gambling boat, from the wagering area as defined in Iowa Code section 99D.2, from the sports wagering area as defined in Iowa Code section 99F.1(24), and from the gaming floor of all other licensed facilities or gambling activities regulated under Iowa Code chapters 99D and 99F; and    (3)   Allow persons to be voluntarily excluded for five years or life from all facilities on a form prescribed by the commission. Each facility will disseminate information regarding the exclusion to all other licensees and the commission.; and    (4)   Identify the availability of technology on a device that provides electronic or mechanical access to cash or credit for a patron of the facility that would allow for a person to voluntarily bar the person’s access to receive cash or credit from such devices located on the licensed premises and provide the process for a person to do so. Methods of identification shall be prominently displayed and be indicative of the availability of the process prior to a transaction taking place.

        ITEM 7.    Amend subparagraph 5.4(21)"a" as follows:    (3)   Results from the network security risk assessment shall be submitted to the administrator no later than 9060 days after the assessment is completed. Results shall include a remediation plan to address any risks identified during the risk assessment.

        ITEM 8.    Rescind and reserve subrule 8.2(5).

        ITEM 9.    Amend subrule 8.2(13) as follows:    8.2(13) Pools dependent upon betting interests.  Unless the administrator otherwise provides, at the time the pools are opened for wagering, the facility:    a.    May offer win, place, and show wagering on all contests with six or more betting interests.    b.    May prohibit show wagering on any contest with five or fewer betting interests scheduled to start.    c.    May prohibit place wagering on any contest with four or fewer betting interests scheduled to start.    d.    May prohibit quinella wagering on any contest with three or fewer betting interests scheduled to start.    e.    May prohibit quinella double wagering on any contests with three or fewer betting interests scheduled to start.    f.    May prohibit exacta wagering on any contest with three or fewer betting interests scheduled to start.    g.    May prohibit trifecta wagering on any contest with five or fewer betting interests scheduled to start, or as provided in subparagraph 8.2(13)“g”(1) below:    (1)   Cancel trifecta. The stewards have the authority to cancel trifecta wagering at any time they determine an irregular pattern of wagering or determine that the conduct of the race would not be in the interest of the regulation of the pari-mutuel wagering industry or in the public confidence in racing. The stewards may approve smaller fields for trifecta wagering if extraneous circumstances are shown by the facility.    (2)   Reserved.    h.    May prohibit superfectaand pentafecta wagering on any contest with seven or fewer betting interests scheduled to start.    i.    May prohibit twin quinella wagering on any contests with three or fewer betting interests scheduled to start.    j.    May prohibit twin trifecta wagering on any contests with seven or fewer betting interests scheduled to start, except as provided in subparagraph 8.2(13)“g”(1).    k.    May prohibit tri-superfecta wagering on any contests with seven or fewer betting interests scheduled to start.    l.    May prohibit twin superfecta wagering on any contests with seven or fewer betting interests scheduled to start.

        ITEM 10.    Adopt the following new subrule 8.6(4):    8.6(4) Records.  Licensees shall provide all information requested by the commission. Access to this information shall be prompt, and copies of the information shall be delivered within seven days or less as ordered or requested by the commission. The licensees shall ensure all books and records and the retention of all books and records comply with 491—subrule 5.4(14). All records pertaining to contests shall be available to allow for player complaint resolution. All records pertaining to the accounts of people who registered or have account activity in Iowa shall be available to allow for audits and investigations.

        ITEM 11.    Amend paragraph 10.5(4)"b" as follows:    b.    Prohibited areas. A jockey agent is prohibited from entering the jockey room, winner’s circle, racing strip, paddock, or saddling enclosure during the hours of racingunless advance written permission has been granted from the stewards.

        ITEM 12.    Amend subrule 11.7(1) as follows:    11.7(1)   Devices that determine or affect the outcome of wagers or are used in the collection of wagers on table games are subject to the requirements of rule 491—11.4(99F) and subrule 11.5(3). Additionally, software used in the conduct of table games is subject to the following requirements:    a.    Removable storage media shall be sealed with tamper-evident tape by a commission representative prior to implementation.    b.    Random number generators shall conform to the requirements of subrule 11.10(2); however, outcomes generated from the random number generator results may be dependent on previous outcomes in the following circumstances:    (1)   When simulating live card games where cards used are not reused until the next hand is dealt, or until the multiplayer electronic device performs a shuffle of the simulated cards.    (2)   When the random number generator is used in the award of a bonus outcome approved in accordance with subrule 11.5(3). Bonus outcomes that are statistically dependent must employ technology solutions to ensure that continuation from the last outcome is maintained in the event of any malfunction.

        ITEM 13.    Amend paragraph 12.16(2)"b" as follows:    b.    Methods of transfer or deposit into a player’s account shall be limited to currency transactions with a casino cashier, or transfers from a participating gaming machine or designated kiosk, unless otherwise approved by the commission. Direct transfers utilizing accounts with outside entities are permitted, but transfers to a player’s wagering account shall not be allowed while a patron is on the designated gaming floor, as approved pursuant to 491—subrule 5.4(17). Electronic wagering accounts shall not be funded with a credit card.

        ITEM 14.    Amend paragraph 13.2(6)"d" as follows:    d.    TheOn a form provided by the commission, the controller or an employee of higher authority shall file a monthly attestation to the commission that the reserve funds have been safeguarded pursuant to this subrule.The attestation shall be provided to the commission no later than 15 days after the end of each month.

        ITEM 15.    Amend subrule 13.2(7) as follows:    13.2(7) Internal controls.  Licensees and advance deposit sports wagering operators shall submit a description of internal controls to the administrator. The submission shall be made at least 30 days before sports operations are to commence unless otherwise approved by the administrator. All internal controls must be approved by the administrator prior to commencement of sports operations. The operator shall submit to the administrator any changes to the internal controls previously approved at least 15 days before the changes are to become effective unless otherwise directed by the administrator. It shall be the affirmative responsibility and continuing duty of each licensee and advance deposit sports wagering operator and their employees to follow and comply with all internal controls. The submission shall include controls and reasonable methods that provide for the following:    a.    To prohibit wagering by coaches, athletic trainers, officials, players, or other individuals who participate in an authorized sporting event in which wagers may be accepted.    b.    To prohibit wagering by persons who are employed in a position with direct involvement with coaches, players, athletic trainers, officials, athletes or participants in an authorized sporting event in which wagers may be accepted.    c.    To promptly report to the commission any criminal or disciplinary proceedings commenced against the licensee or its employees.    d.    To promptly report to the commission, in a format approved by the administrator, any abnormal wagering activity or patterns that may indicate a concern about the integrity of an authorized sporting event or events, and any other conduct with the potential to corrupt a wagering outcome of an authorized sporting event for purposes of financial gain, including but not limited to match fixing, and suspicious or illegal wagering activities, including the use of funds derived from illegal activity, wagers to conceal or launder funds derived from illegal activity, use of agents to place wagers, or use of false identification. Integrity-monitoring procedures shall also provide for the sharing of information with other licensees, other governing authorities, and accredited sports governing entities by participating in an integrity-monitoring association or group or by another method as approved by the administrator.     e.    Written notification to the commission for any incident where there is a violation involving criminal activity, Iowa Code chapter 99F, a commission rule or order, or an internal control within 72 hours of detection. The licensee or advance deposit sports wagering operator shall provide a written report detailing the violation as required byand in a format approved by the administrator.    f.    The segregation of incompatible functions so that no employee is in a position to perpetrate and conceal errors or irregularities in the normal course of the employee’s duties.    g.    User access controls for all sensitive and secure, physical and virtual, areas and systems within a sports wagering operation.    h.    Treatment of problem gambling by:    (1)   Identifying problem gamblers.    (2)   Complying with the process established by the commission pursuant to Iowa Code section 99F.4(22) and 491—subrule 5.4(12).    (3)   Cooperating with the Iowa gambling treatment program in creating and establishing controls.    (4)   Including information on the availability of the gambling treatment program in a substantial number of the licensee’s advertisements and printed materials.    i.    Setoff winnings of customers who have a valid lien established under Iowa Code chapter 99F.

        ITEM 16.    Amend subrule 13.2(8) as follows:    13.2(8) Revenue reporting.  Reports generated from the sports wagering system shall be made available as determined by the commission. The reporting system shall be capable of issuing reports by wagering day, wagering month, and wagering year. Wagering data shall not be purged unless approved by the commission. The reporting system shall provide for a mechanism to export the data for the purposes of data analysis and auditing or verification. The reporting system shall be able to provide, at a minimum, the following sports wagering information:    a.    The date and time each event started and ended.    b.    Total amount of wagers collected.    c.    Total amount of winnings paid to players.    d.    Total amount of wagers canceled, voided, and expired.    e.    Commission or fees collected.    f.    Total value of promotional play or free play used to purchase or execute a sports wager.     g.    Event status.    h.    Total amount held by the operator for the player accounts.    i.    Total amount of wagers placed on future events.    j.    Total amount of winnings owed but unpaid by the operator on winning wagers.    k.    The date, time, stake amount, win amount and individual associated with each event where winnings are required to be reported on Internal Revenue Service form W-2G, as recorded by the reporting system.

        ITEM 17.    Adopt the following new subrule 13.2(13):    13.2(13) Records.  Licensees shall provide all information requested by the commission. Access to this information shall be prompt, and copies of the information shall be delivered within seven days or less as ordered or requested by the commission. The licensees shall ensure all books and records and the retention of all books and records comply with 491—subrule 5.4(14). All records pertaining to wagers shall be available to allow for player complaint resolution. All records pertaining to the accounts of persons who registered or have account activity in Iowa shall be available to allow for audits and investigations.

        ITEM 18.    Amend subrule 13.5(2), introductory paragraph, as follows:    13.5(2) Account registration.  A person must have an established account in order to place advance deposit sports wagers. The process for establishing an account is subject to the administrator’s approval. Prior to January 1, 2021, an account shall be established at the facility as required by Iowa Code section 99F.9(4). On or after January 1, 2021, anAn account may be established through on-site registration under procedures previously approved by the administrator, or through remote registration. To establish an account, an application for an account shall be signed or otherwise authorized in a manner approved by the administrator and shall include the applicant’s full legal name, principal residential address, date of birth, and any other information required by the administrator. The account registration process shall also include:

        ITEM 19.    Amend paragraph 13.5(3)"g" as follows:    g.    Process to immediately notify a player following an unusual login attempt. In the event thatthe unusual login attempt constitutes suspicious activity or if other suspicious activity is detected, an account shall be locked. A multifactor authentication process must be employed for the account to be unlocked.

        ITEM 20.    Amend paragraph 13.5(4)"h" as follows:    h.    AnIf the method of reserve utilized to comply with subrule 13.2(6) is not in the form of cash or cash equivalents segregated from operational funds, an advance deposit sports wagering operator or licensee shall segregate player account funds from operational funds.

        ITEM 21.    Amend subrule 13.6(2) as follows:    13.6(2) Change control.  The licensees and advance deposit sports wagering operators shall submit change control processes that detail evaluation procedures for all updates and changes to equipment and systems to the administrator for approvalat least 30 days prior to operation. These processes shall include details for identifying criticality of updates and determining of submission of updates to an independent testing laboratory for review and certification.These processes shall include, at a minimum, descriptions of the following areas of licensee operations:    a.    Process to classify all changes according to organizational risk.    b.    Process to designate whether changes must be submitted to an independent testing laboratory for review and certification.    c.    Process for emergency change determination and implementation.    d.    Process to log or note changes. Must include the details logged for each change, including but not limited to the following areas:    (1)   Date and time of change or proposed date and time of change.    (2)   Basic description of changes to be implemented.    (3)   Change classification of change or changes, determined in accordance with the process established by paragraph 13.6(2)“a.” If emergency designation is separate from other change classifications, this shall also be included in the log or note.    (4)   Identification of whether a change was submitted to an independent testing laboratory, and the certification report number of any testing.    e.    Process to maintain logs or notify the commission of changes.

        ITEM 22.    Amend subparagraph 13.6(3)"a" as follows:    (3)   Results from the risk assessment shall be submitted to the administrator no later than 3060 days after the assessment is completed. Results shall include a remediation plan to address any risks identified during the risk assessment.

        ITEM 23.    Amend rule 491—14.1(99E), definition of “Fantasy sports contest,” as follows:        "Fantasy sports contest" "contest" means a fantasy or simulated game or contest in which:
    1. The fantasy sports contest operator is not a participant in the game or contest;
    2. The value of all prizes and awards offered to winning participants are established and made known to the participants in advance of the contest;
    3. All winning outcomes reflect the relative knowledge and skill of the participants;
    4. The outcome shall be determined by accumulated statistical results of the performance of individuals, including athletes in the case of sporting events; and
    5. No winning outcome is solely based on the score, point spread, or any performance or performances of any single actual team or solely on any single performance of an individual athlete or player in any single actual event. However, until May 1, 2020, “fantasy sports contest” does not include any fantasy or simulated game or contest in which any winning outcomes are based on statistical results from a collegiate sporting event as defined in Iowa Code section 99F.1.

        ITEM 24.    Amend subrule 14.8(2) as follows:    14.8(2) Records.  Licensees shall provide all information requested by the commission. Access to this information shall be immediateprompt, and copies of the information shall be delivered within seven days or less as orderedor requested by the commission. The licensees shall ensure all books and records and theirthe retentionof all books and records comply with 491—subrule 5.4(14). All records pertaining to contests shall be available to allow for player complaint resolution. All records pertaining to the accounts of persons who registered or have account activity in Iowa shall be available to allow for audits and investigations.

        ITEM 25.    Amend subparagraph 14.8(4)"c" as follows:    (1)   A system integrity and security risk assessment shall be performed annually on the fantasy sports contest system.    1.   The testing organization must be independent of the licensee and shall be qualified by the administrator.    2.   The system integrity and security risk assessment shall be completed no later than March 31 of each year. Results shall include a remediation plan to address any risks identified during the risk assessment.    3.   Results from the risk assessment shall be submitted to the administrator no later than 3060 days after the assessment is completed.    4.   The risk assessment shall be conducted in accordance with current and accepted industry standard review requirements for risk assessments.    5.   The risk assessment shall include a review of licensee controls. Review of controls shall include but not be limited to a comparison of licensee controls to industry standard and best practice controls, and an audit of the licensee processes for compliance with those controls.

        ITEM 26.    Amend subrule 14.9(2) as follows:    14.9(2)   Licensees are required to comply with and ensure the following:    a.    Advertisements for contests and prizes offered by a licensee shall not target prohibited participants, underage persons, or self-excluded persons.    b.    The values of all prizes and awards offered to winning players must be established and made known to the players in advance of the contest.    c.    Introductory procedures for players are prominently displayed on the main page of the licensee’s platform to explain contest play and how to identify a highly experienced player.    d.    Identification of all highly experienced players in every fantasy sports contest by a symbol attached to the players’ usernames, or by other easily visible means, on all platforms supported by the licensee.    e.    Contests are not offered based on the performance of participants in high school or youth sports events. However, until May 1, 2020, “fantasy sports contest” does not include any fantasy or simulated game or contest in which any winning outcomes are based on statistical results from a collegiate sporting event as defined in Iowa Code section 99E.1.    f.    Representations or implications about average winnings from contests shall not be unfair or misleading.    g.    Prohibition of the use of unauthorized third-party scripts or unauthorized scripting programs for any contest and ensure that measures are in place to deter, detect, and prevent cheating to the extent reasonably possible. “Cheating” includes collusion and the use of cheating devices, including the use of software programs that submit entry fees or adjust the athletes selected by a player.    h.    Prominent display of information about the maximum number of entries that may be submitted for that contest for all advertised fantasy sports contests.    i.    Disclosure of the number of entries that a player may submit to each fantasy sports contest and provide reasonable steps to prevent players from submitting more than the allowable number.    j.    Opportunity for players to file a patron dispute.    k.    Conspicuously disclose the source of the data utilized in any results.    [Filed 1/26/23, effective 3/29/23][Published 2/22/23]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/22/23.
    ARC 6904CRevenue Department[701]Adopted and Filed

    Rule making related to withholding

        The Revenue Department hereby amends Chapter 300, “Administration,” and Chapter 307, “Withholding,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 421.14.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 421.27, 422.16 and 422.25 and 2022 Iowa Acts, House File 2552.Purpose and Summary    This rule making is intended to implement statutory changes to the penalty imposed on payers of withholding who fail to file income statements with the Department. Payers of withholding will now be penalized $500 for each instance of willful failure to file an income statement with the Department. This rule making also implements a statutory change that eliminates the requirement that payers of withholding submit an annual summary of withholding payments. Further, this rule making eliminates references to responsible parties and amends other provisions related to withholding registration to better conform with how withholding registration is administered by the Department. Finally, this rule making amends language regarding filing of returns to better conform with how withholding filings are administered by the Department and to make the rules easier to read.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on September 21, 2022, as ARC 6538C. No public comments were received.    This rule making was revised by the Department to clarify that the Department will not cancel deficient withholding registrations but will consider those deficient withholding registrations invalid. The numbering of rules and rule subparts has been updated to reflect the renumbering of Chapters 38 and 46 as Chapters 300 and 307, respectively. One reference to 2022 Iowa Acts, House File 2552, has been removed because that legislation has been codified since publication of the Notice. Finally, one clarifying change was made to the wording in subparagraph 307.3(4)“a”(1), and two citations have been updated in subparagraphs 307.3(4)“a”(1) and 307.3(4)“a”(4).Adoption of Rule Making    This rule making was adopted by the Department on December 30, 2022.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa beyond that of the legislation it is intended to implement. The final Fiscal Note for 2022 Iowa Acts, House File 2552, did not indicate any fiscal impact.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on March 29, 2023.    The following rule-making actions are adopted:

        ITEM 1.    Rescind subrule 300.1(8).

        ITEM 2.    Amend paragraph 307.1(1)"c" as follows:    c.    Exemption from withholding.An employer may be relieved of the responsibility to withhold Iowa income tax on an employee who does not anticipate an Iowa income tax liability for the current tax year.An employee who anticipates no Iowa income tax liability for the current tax year shall file with the employer a withholding allowance certificate claiming exemption from withholding. An employee who meets this criterion may claim an exemption from withholding at any time; however, this exemption from withholding must be renewed by February 15 of each tax year that the criterion is met. If the employee wishes to discontinue or is required to revoke the exemption from withholding, the employee must file a new withholding allowance certificate within ten days from the date the employee anticipates a tax liability or on or before December 31 if a tax liability is anticipated for the next tax year. See subrule 46.3(2)Subrule 307.3(3) contains more information.

        ITEM 3.    Amend rule 701—307.3(422) as follows:

    701—307.3(422) Forms, returns, and reports.      307.3(1) Definitions.  For the purposes of this rule, the following definitions apply:        "GovConnectIowa" means the e-services portal of the department of revenue.        "Income statement" means a statement that conforms to the requirements of Iowa Code section 422.16(7)“a.” An income statement includes, but is not limited to, Internal Revenue Service (IRS) Form W-2, IRS Form 1099, and IRS Form W-2G.        "Payee" means an employee or other person who had Iowa income tax withheld pursuant to Iowa Code section 422.16.        "Payer" means an employer or other person required to withhold and remit Iowa income tax pursuant to Iowa Code section 422.16.    307.(1) 307.3(2) EmployerWithholding registration.      a.    Every employer or payer required to deduct and withhold Iowa income tax must register with the department of revenue by filing an “Iowa Business Tax Registration Form.”Iowa Business Tax Registration Form either on a paper form available online at tax.iowa.gov or through GovConnectIowa. The form shall indicate the employer’s or payer’s federalemployer identification number. If an employer ora payer has not received a federal employer’semployer identification number, the department will issue a temporary identification number. The employer or payer must notify the department whenof thepayer’s federal employer identification number isonce the number has been assigned.If a payer fails to provide the payer’s federal employer identification number within 90 days of the registration filing, the department will consider the payer’s withholding registration invalid.When initial payment of wages subject to Iowa withholding tax occurs late in the calendar quarter, or before the employer’s or payer’s federal employer’s identification number is assigned by the Internal Revenue Service, the Iowa business tax registration form shall be forwarded along with the first quarterly withholding return. The responsible party(ies) shall be listed on the form.    b.    If an employera payer deducts and withholds Iowa income tax but does not file the Iowa business tax registration formBusiness Tax Registration Form, the department may register the employerpayer using the best information available. If an employera payer uses a service provider to report and remit Iowa withholding tax on behalf of the employerpayer, the department may use information obtained from the service provider to register the employerpayer if an Iowa business tax registration formBusiness Tax Registration Form is not filed. This information would include, but is not limited to, the name, address, federal employer’semployer identification number, filing frequency,and withholding agent and responsible party(ies)contact of the employerpayer.    307.(2) 307.3(3) Allowance certificate.      a.    General rules.On or before the date on which an individual commences employment with an employer, the individual shall furnish the employer with a signed Iowa employee’s withholding allowance certificate (IA W-4) indicating the number of withholding allowances which the individual claims, which in no event shall exceed the number to which the individual is entitled. The employer is required to request a withholding allowance certificate from each employee. If the employee fails to furnish a certificate, the employee shall be considered as claiming no withholding allowances. See subrule 46.3(4) forSubrule 307.3(5) contains information on Form IA W-4P, which is to be used by payers of pensions, annuities, deferred compensation, individual retirement accounts and other retirement incomes.The employer must submit to the department of revenue a copy of a withholding allowance certificate received from an employee if:    (1)   The employee claimed more than a total of 22 withholding allowances, or    (2)   The employee is claiming an exemption from withholding and it is expected that the employee’s wages from that employer will normally exceed $200 per week.Employers required to submit withholding certificates should use the following address:Iowa Department of RevenueCompliance DivisionExamination SectionHoover State Office BuildingP.O. Box 10456Des Moines, Iowa 50306The department will notify the employer whether to honor the withholding certificate or to withhold as though the employee is claiming no withholding allowances.    b.    Form and content.The “Iowa Employee’s Withholding Allowance Certificate” (IA W-4) must be used to determine the number of allowances that may be claimed by an employee for Iowa income tax withholding purposes. Generally, the greater number of allowances an employee is entitled to claim, the lower the amount of Iowa income tax to be withheld for the employee. The following withholding allowances may be claimed on the IA W-4 form:    (1)   Personal allowances. An employee can claim one personal allowance or two if the individual is eligible to claim head of household status. The employee can claim an additional allowance if the employee is 65 years of age or older and another additional allowance if the employee is blind.If the employee is married and the spouse either does not work or is not claiming an allowance on a separate W-4 form, the employee can claim an allowance for the spouse. The employee may also claim an additional allowance if the spouse is 65 years of age or older and still another allowance if the spouse is blind.    (2)   Dependent allowances. The employee can claim an allowance for each dependent that the employee will be able to claim on the employee’s Iowa return.    (3)   Allowances for itemized deductions. The employee can claim allowances for itemized deductions to the extent the total amount of estimated itemized deductions for the tax year for the employee exceeds the applicable standard deduction amount by $200. In instances where an employee is married and the employee’s spouse is a wage-earner, the total allowances for itemized deductions for the employee and spouse should not exceed the aggregate amount itemized deduction allowances to which both taxpayers are entitled.    (4)   Allowances for the child/dependent care credit. Employees who expect to be eligible for the child/dependent care credit for the tax year can claim withholding allowances for the credit. The allowances are determined from a chart included on the IA W-4 form on the basis of net income shown on the Iowa return for the employee. If the employee is married and has filed a joint federal return with a spouse who earns Iowa wages subject to withholding, the withholding allowances claimed by both spouses for the child/dependent care credit should not exceed the aggregate number of allowances to which both taxpayers are entitled. Taxpayers that expect to have a net income of $45,000 or more for a tax year beginning on or after January 1, 2006, should not claim withholding allowances for the child and dependent care credit, since these taxpayers are not eligible for the credit.    (5)   Allowances for adjustments to income. For tax years beginning on or after January 1, 2008, employees can claim allowances for adjustments to income which are set forth in Treasury Regulation §31.3402(m)-1, paragraph “b.” This includes adjustments to income such as alimony, deductible IRA contributions, student loan interest and moving expenses which are allowed as deductions in computing income subject to Iowa income tax. In instances where an employee is married and the employee’s spouse is a wage earner, the withholding allowances claimed by both spouses for adjustments to income for the employee and spouse should not exceed the aggregate number of allowances to which both taxpayers are entitled.    c.    Change in allowances which affect the current calendar year.    (1)   Decrease. If, on any day during the calendar year, the number of withholding allowances to which an employee is entitled is less than the number of withholding allowances claimed by the individual on a withholding certificate then in effect, the employee must furnish the employer with a new Iowa withholding allowance certificate relating to the number of withholding allowances which the employee then claims, which must in no event exceed the number to which the employee is entitled on such day.    (2)   Increase. If, on any day during the calendar year, the number of withholding allowances to which an employee is entitled is more than the number of withholding allowances claimed by the employee on the withholding allowance certificate then in effect, the employee may furnish the employer with a new Iowa withholding allowance certificate on which the employee must in no event claim more than the number of withholding allowances to which the employee is entitled on such day.    d.    Change in allowances which affect the next calendar year.If, on any day during the calendar year, the number of withholding allowances to which the employee will be, or may reasonably be expected to be, entitled to for the employee’s taxable year which begins in, or with, the next calendar year is different from the number to which the employee is entitled on such day, the following rules shall apply:    (1)   If such number is less than the number of withholding allowances claimed by an employee on an Iowa withholding allowance certificate in effect on such day, the employee must within a reasonable time furnish the employee’s employer with a new withholding allowance certificate reflecting the decrease.    (2)   If such number is greater than the number of withholding allowances claimed by the employee on an Iowa withholding allowance certificate in effect on such day, the employee may furnish the employee’s employer with a new withholding allowance certificate reflecting the increase.    e.    Duration of allowance certificate.An Iowa withholding allowance certificate which is in effect pursuant to these regulations shall continue in effect until another withholding allowance certificate takes effect. Employers should retain copies of the IA W-4 forms for at least four years.    307.(3) 307.3(4) Reports and payments of income tax withheld.      a.    Returns of income tax withheld from wages.    (1)   Quarterly returns. Every withholding agentpayer required to withhold tax on compensation paid for personal services in Iowa shall make a return for the first calendar quarter in which tax is withheld and for each subsequent calendar quarter, whether or not compensation is paid therein, until a final return is filed. The withholding agent’s “Quarterly Withholdingpayer’s Iowa Withholding Tax Quarterly Return is the form prescribed for making the return required under this paragraph. Monthly tax deposits or semimonthly tax deposits may be required in addition to quarterly returns. See subparagraphs (2) and (3) of paragraph 46.3(3)“a.”Subparagraphs 307.3(4)“a”(2) and 307.3(4)“a”(3) contain more information about monthly and semimonthly tax deposits. In some circumstances, only an annual return and payment of withheld taxes will be required; see paragraph 46.3(3)“c.”. Paragraph 307.3(4)“c” contains more information on annual reporting.Payments shall be based upon the tax required to be withheld and must be remitted in full.A withholding agentpayer is not required to list the name(s) of the agent’s employee(s)payee(s) when filing quarterly returns, nor is the withholding agent required to show on the employee’s paycheck or voucher the amount of Iowa income tax withheld.If a withholding agent’spayer’s payroll is not constant, and the agentpayer finds that no wages or other compensationincome was paid during the current quarter, the agentpayer shall enter the numeral “zero” on the return and submit the return as usual.    (2)   Monthly deposits. Every withholding agentpayer required to file a quarterly withholding return shall also file a monthly deposit if the amount of tax withheld during any calendar month exceeds $500, but is less than $10,000. A withholding agent needs to file a monthly deposit even if no payment is due. No monthly deposit is required for the third month in any calendar quarter. The information otherwise required to be reported on the monthly deposit for the third month in a calendar quarter shall be reported on the quarterly return filed for that quarter, and no monthly deposit need be filed for such month.    (3)   Semimonthly deposits. Every withholding agentpayer who withholds more than $5,000 in a semimonthly period must file a semimonthly tax deposit. A semimonthly period is defined as the period from the first day of a calendar month through the fifteenth day of a calendar month, or the period from the sixteenth day of a calendar month through the last day of a calendar month. When semimonthly deposits are required, a withholding agentpayer must still file a quarterly return.    (4)   Final returns. A withholding agentpayer who in any return period permanently ceases doing business shall file the returns required by subparagraphs (1), (2) and (3) of paragraph 46.3(3)“a”307.3(4)“a”(1), 307.3(4)“a”(2), and 307.3(4)“a”(3) as final returns for such period. The withholding agentpayer shall cancel the withholding tax registration by notifying the departmentsubmitting the Iowa Business Tax Cancellation Form or through GovConnectIowa.    b.    Time for filing returns.    (1)   Quarterly returns. Each return required by subparagraph 46.3(3)“a”(1)307.3(4)“a”(1) shall be filed on or before the last day of the first calendar month following the calendar quarter for which such return is made.    (2)   Monthly tax deposits. Monthly deposits required by subparagraph 46.3(3)“a”(2)307.3(4)“a”(2) shall be filed on or before the fifteenth day of the second and third months of each calendar quarter for the first and second months of each calendar quarter, respectively.    (3)   Semimonthly tax deposits. Semimonthly deposits required by subparagraph 46.3(3)“a”(3)307.3(4)“a”(3) for the semimonthly period from the first day of the month through the fifteenth day of the month shall be filed with payment of the tax on or before the twenty-fifth day of the same month. The semimonthly deposits required by subparagraph 46.3(3)“a”(3)307.3(4)“a”(3) for the semimonthly period from the sixteenth day of the month through the last day of the month shall be filed with payment of the tax on or before the tenth day of the month following the month in which the tax is withheld.For withholding that occurs on or after January 1, 2005, quarterlyQuarterly returns, amended returns, monthly deposits and semimonthly deposits shall be made electronically in a format and by means specified by the department of revenue. Tax payments are considered to have been made on the date that the tax is transmitted and released by the vendor to the department.For withholding that occurs on or after January 1, 2022, tax payments shall be made using GovConnectIowa.    (4)   Determination of filing statuspayment frequency. Effective July 1, 2002, theThe department and the department of management have the authority to change filingpayment thresholds by department rule. This paragraph sets forth the filingpayment thresholdsand frequencies for each filerpayer based on the amount withheld for withholding that occurs on or after January 1, 2003.The following criteria will be used by the department to determine if a change in filing statuspayment frequency is warranted.Filing Status Payment FrequencyThresholdTest CriteriaSemimonthlyGreater than $120,000 in annual withholding taxes (more than $5,000 in a semimonthly period).Tax remitted in 3 of most recent 4 quarters examined exceeds $30,000.MonthlyBetween $6,000 and $120,000 in annual withholding taxes (more than $500 in a monthly period).Tax remitted in 3 of most recent 4 quarters examined exceeds $1,500 per quarter.QuarterlyLess than $6,000 in annual withholding taxes.Tax remitted in 3 of most recent 4 quarters examined is less than $1,500 per quarter.AnnualLess than 3 employees.When it is determined that a withholding agent’s filing status is to be changed, the withholding agent shall be notified in writing. A withholding agent has the option of requesting, within 30 days of the department’s notice of a change in filing frequency, that the withholding agent file more or less frequently than required by the department.     1.   To request filingto pay on a less frequent basis than assigned by the departmentrequired, the request must be in writing and submitted to the department. A withholding agent’spayer’s written request to be allowed to filepay less frequently than the filing status assigned by the department will be reviewed by the department, and a written determination will be issued to the withholding agentpayer who made the request. A change in assigned filing statuspayment frequency to filepay on a less frequent basis will be granted in only two instances:
  • Incorrect historical data is used in the conversion. A business may meet the criteria based on the original filing data, but, upon investigation, the filing history may prove that the business does not meet the dollar criteria because of adjustments, amended returns, or requests for refunds.
  • Data available may have been distorted by the fact that the data reflected an unusual pattern in tax collection. The factors causing such a distortion must be documented and approved by the department.
  • If a payer is permitted to pay on a less frequent basis, the payer must begin to pay on the less frequent basis at the start of the next quarter unless the payer is permitted to pay annually, in which case the payer must submit future payments in accordance with paragraph 307.3(4)“c.”    2.   A withholding agentpayer may also request to filepay more frequently than assigned by the departmentrequired. This request may be made orally, in writing, in person, or by telephone.No request is required to be made to pay on a more frequent basis.    3.   The department and the department of management may performa review of filingpayment frequency thresholds every five years or as needed based on department discretion. Factors the departments will consider in determining if the filingpayment frequency thresholds need to be changed include, but are not limited to: tax rate changes, inflation, the need to maintain consistency with required multistate compacts, changes in law, and migration between filing brackets.
        (5)   Amended return. If the amount of Iowa income tax withheld and remitted to the department of revenue for the year is different than the withheld tax and withholding credits claimed, the payer must report the difference on an amended return and, if the return shows less tax withheld and remitted than shown due, the payer must submit payment to the department.
        c.    Reporting annual withholding.    (1)   Any withholding agentpayer who does not have employee withholding but who is required to withhold state income tax from other distributions is exempted from the provisions of subparagraphs (2) and (3) of paragraph 46.3(3)“a,”307.3(4)“a,” if these distributions are made annually in one calendar quarter. These withholding agentspayers need only comply with the reporting requirements of the one calendar quarter in which the tax is withheld, and make the required year-end reports.    (2)   Every withholding agentpayer employing not more than two individuals and who expects to employ either or both for the full calendar year may pay with the withholding tax returnIowa Withholding Tax Quarterly Return due for the first calendar quarter of the year the full amount of income taxes which would be required to be withheld from the wages for the full calendar year. The withholding agentpayer shall advise the department of revenue that annual reporting is contemplated and shall also state the number of persons employed. The withholding agentpayer shall compute the annual withholding from wages by determining the normal withholding for one pay period and multiply this amount by the total number of pay periods within the calendar year. The withholding agentpayer shall be entitled to recover from the employee(s) any part of such lump-sum payment that represents an advance to the employee(s). If a withholding agentpayer pays a lump sum with the first quarterly return, the agentpayer shall be excused from filing further quarterly returns for the calendar year involved unless the agentpayer hires other or additional employees. The “Verified Summary of Payments Report” shall be filed at the end of the tax year.    d.    Reports for employeeFurnishing income statements to payee.    (1)   General rule. Every employerpayer required to deduct and withholdincome tax from compensation of an employeea payee must furnish to each employeepayee with respect to the compensationincome paid in Iowa by such employerpayer during the calendar year, aan income statement containing the following information: the name, address, and federal employertaxpayer identification number of the employerpayer; the name, address, and social securitytaxpayer identification number of the employeepayee; the total amount of compensationtaxable income paid in Iowa; and the total amount deducted and withheld as tax under subrule 46.1(1)307.1(1); and the total amount of federal income tax withheld.    (2)   Form ofincome statement. The information required to be furnished to an employeea payee under the preceding paragraph shall be furnished on an Internal Revenue Service combined Wage and Tax Statement, Form W-2, hereinafter referred to as “combined W-2.”the appropriate IRS form including but not limited to IRS Form W-2 and IRS Form 1099. Any reproduction, modification, or substitution for a combined W-2an IRS form by the employerpayer must be approved by the department. EmployersPayers should keep copies of the combined W-2income statements for four years from the end of the year for which the combined W-2 appliesincome statements apply.    (3)   Time for furnishingan income statement. Eachincome statement required by paragraph 307.3(4)“d” to be furnished for a calendar year and each correctedincome statement required for any prior year shall be furnished to the employeepayee on or before January 31 of the year succeeding such calendar year, or if an employee’s employment is terminated before the close of a calendar year without expectation that it will resume during the same calendar year, within 30 days from the day on which the last payment of compensation is made, if requested by such employee, but not later than January 31 of the following year. See paragraph 46.3(3)“e” forParagraph 307.3(4)“e” contains provisions relating to the filing of copies of the combined W-2certain income statements with the department of revenue, and see subparagraph 46.3(3)“f”(1) for the provision relating to filing W-2 forms with the department for tax year 2019 and all subsequent tax years.    (4)   Corrections. An employerA payer must furnish a corrected combined W-2income statement to an employeea payee if, after the original statement has been furnished, an error is discovered in either the amount of compensationincome shown to have been paid in Iowa for the prior year or the amount of tax shown to have been deducted and withheld in the prior year. SuchThe corrected statement shall be marked “corrected by the employer.” See paragraph 46.3(3)“e” for provisions relating to the filing of a corrected combined W-2 with the department.    (5)   Undelivered combined W-2income statements. Any employee’spayee’s copy of the combined W-2income statement which, after reasonable effort, cannot be delivered to an employeea payee shall be transmitted to the department with a letter of explanation.    (6)   Lost or destroyed. If the combined W-2income statement is lost or destroyed, the employerpayer shall furnish a substitute copy to the employeepayee. The copy shall be clearly marked “Reissued by Employer.”    (7)   Penalty. A willful failure to meet the furnishing requirements set out in this paragraph will subject payers to the penalty under Iowa Code section 422.16(10)“a.” Rule 701—307.5(422) contains more information about this penalty.    e.    Annual verified summary of payments reports.    (1)   Every withholding agent required to withhold Iowa income tax under subrules 46.1(1), 46.1(2), and 46.4(1) is to furnish to the department of revenue on or before February 15 following the tax year an annual Verified Summary of Payments Report (VSP).The withholding agent completing the VSP form must enter the total Iowa income tax withheld that is shown on the W-2 forms and 1099 forms for the year, the new jobs credits, supplemental new jobs credits, accelerated career education credits and targeted jobs credits claimed on withholding returns for the year. In addition, the withholding agent must enter on the VSP the withholding payments made for the year. If the amount of Iowa income tax withholding remitted to the department of revenue for the year is less than the withholding tax and withholding credits claimed, the withholding agent is to report the additional withholding tax due on an amended return and submit payment to the department.If the Iowa income tax shown as withheld on the W-2 forms and 1099 forms issued for the tax year is less than the amount of withholding tax remitted to the department of revenue by the withholding agent, the agent should file an amended return with the department reflecting the excess tax paid.    (2)   For VSP forms filed with the department of revenue for the year 2000 through the year 2016, the withholding agents are not to submit W-2 forms and 1099 forms with the reports. However, the withholding agents should supply W-2 forms or 1099 forms as requested by personnel of the department of revenue if the request for the forms is made within three years from the end of the year for which the W-2 forms or 1099 forms apply. Therefore, if a request is made to a withholding agent for a W-2 form or a 1099 form for the year 2013, the request is valid if the request is postmarked, faxed or made on or before December 31, 2016.    (3)   Penalty. Failure to meet the filing requirements set out in this paragraph will subject withholding agents to the penalties under Iowa Code section 422.16(10).    f.    e.    W-2 forms.Filing income statements with the department.    (1)   For tax year 2019 and all subsequent tax years, all withholding agentspayers are required to electronically fileall W-2 forms, W-2G forms, and 1099 forms for employeespayees from whom Iowa income tax was withheld with the department of revenue on or before February 15 following the tax year.Income statements for tax years beginning on or after January 1, 2022, must be filed using GovConnectIowa.    (2)   The department of revenue may, in a case involving a hardship, extend the requirement to electronically file to the 2020 tax year. No extension of time shall be granted unless the withholding agent makes a written request to the department of revenue for such action.    (2)   Corrections. A payer must file a corrected income statement with the department if, after the original statement has been filed, an error is discovered in either the amount of income shown to have been paid in Iowa for the prior year or the amount of tax shown to have been deducted and withheld in the prior year. The corrected statement shall be marked “corrected.”    (3)   Penalty. FailureA willful failure to meet the filing requirements set out inIowa Code section 422.16 and this paragraph will subject withholding agentspayers to the penalties under Iowa Code section 422.16(10).Rule 701—307.5(422) contains more information about this penalty.    (4)   Other income statements. Any income statement not listed in this paragraph that cannot be submitted electronically must be filed with the department by mail on or before February 15 following the tax year.    (5)   Extension. The director or the department employee designated by the director may allow a 30-day extension of time for filing income statements with the department in the case of illness, disability, or absence, or if good cause is shown. To apply for an extension, a payer shall use the form available on the department website.    g.    1099 forms and W-2G forms.    (1)   For tax year 2019 and all subsequent tax years, all withholding agents are required to electronically file all 1099 forms and W-2G forms for persons from whom Iowa income tax was withheld on or before February 15 following the tax year.    (2)   The department of revenue may, in a case involving a hardship, extend the requirement to electronically file to the 2020 tax year. No extension of time shall be granted unless the withholding agent makes a written request to the department of revenue for such action.    (3)   Penalty. Failure to meet the filing requirements set out in this paragraph will subject withholding agents to the penalties under Iowa Code section 422.16(10).    h.    f.    Withholding deemed to be held in trust.Funds withheld from wagesincome for Iowa income tax purposes are deemed to be held in trust for payment to the department of revenue. The state and the department shall have a lien upon all the assets of the employerpayer and all the property used in the conduct of the employer’spayer’s business to secure the payment of the tax as withheld under the provisions of this rule. An owner, conditional vendor, or mortgagee of property subject to such lien may exempt the property from the lien granted to Iowa by requiring the employerpayer to obtain a certificate from the department, certifying that such employerpayer has posted with the department security for the payment of the amounts withheld under this rule.    i.    g.    Payment of tax deducted and withheld.The amount of tax shown to be due on each deposit or return required to be filed under subrule 46.3(3)307.3(4) shall be due on or before the date on which such deposit or return is required to be filed.    j.    h.    Correction of underpayment or overpayment of taxes withheld.    (1)   Underpayment. If a return is filed for a return period under rule 701—46.3(422)701—307.3(422) and less than the correct amount of tax is reported on the return and paid to the department, the employerpayer shall report and pay the additional amount due by filing an amended withholding tax returnIowa Withholding Tax Quarterly Return.    (2)   Overpayment. If an employera payer remits more than the correct amount of tax for a return period, the employer mustpayer may file an amended withholding tax returnIowa Withholding Tax Quarterly Return and request a refund of the withholding tax paid which was not due.
        307.(4) 307.3(5) Iowa W-4P—withholding certificate for pension or annuity payments.      a.    For payments made from pension plans, annuity plans, individual retirement accounts, or deferred compensation plans to residents of Iowa, payers of these retirement benefits are to use Form IA W-4P for withholding of state income tax from the benefits. Generally, state income tax is required to be withheld from payments of distributions from the retirement incomes described above when federal income tax is being withheld from the payments. However, no state income tax is required to be withheld to the extent the monthly payment amount is $500 or less or the taxable amount per month is $500 or less if the payee is eligible for the retirement benefits exclusion described in rule 701—40.47(422)701—302.47(422). In addition, no state income tax is required to be withheld to the extent the monthly payment amount is $1,000 or less or the taxable amount per month is $1,000 or less if the payee is married and eligible for the retirement benefits exclusion described in rule 701—40.47(422)701—302.47(422).    b.    Form IA W-4P is available from the department for payers of retirement benefits that intend to withhold at a rate of 5 percent from the payment amount or taxable payment amount after the $6,000 to $12,000 exclusion is considered. Note that the $6,000 to $12,000 exclusion is to be allocated to all retirement benefit payments made in the year and not just the first $6,000 to $12,000 in payments made in the year to an individual. If an individual receives retirement benefits and has not completed Form IA W-4P, the payer is directed to withhold Iowa income tax from the retirement benefit payment after a $6,000 exclusion is allowed on an annual basis.    c.    Payers of retirement benefits that want to use withholding formulas or tables to withhold state income tax instead of at the 5 percent rate may design their own IA W-4P withholding certificate form without approval of the department.    d.    The payers are not responsible for improper choices made by a payee in completion of the IA W-4P. However, payers cannot accept a request for exemption from the withholding of state income tax made by a payee if federal income tax is being withheld unless the payee is eligible for exemption from withholding.       This rule is intended to implement Iowa Code sections 422.7, and 422.12C, and section 422.16 as amended by 2007 Iowa Acts, House File 904, section 3.

        ITEM 4.    Amend rule 701—307.5(422) as follows:

    701—307.5(422) Penalty and interest.      307.5(1) Definitions.  For the purposes of this rule, the following definitions apply:        "Income statement" means a statement that conforms to the requirements of Iowa Code section 422.16(7)“a.” An income statement includes, but is not limited to, Internal Revenue Service (IRS) Form W-2, IRS Form 1099, and IRS Form W-2G.        "Payee" means an employee or other person who had Iowa income tax withheld pursuant to Iowa Code section 422.16.        "Payer" means an employer or other person required to withhold and remit Iowa income tax pursuant to Iowa Code section 422.16.    307.(1) 307.5(2) PenaltyPenalties for willful failure to file or furnish an income statement or for willfully filing or furnishing a false or fraudulent income statement.  See rule 701—10.6(421) for penalty for tax periods beginning on or after January 1, 1991. See rule 701—10.8(421) for statutory exemptions to penalty for tax periods beginning on or after January 1, 1991.    a.    Payers responsible for furnishing an income statement to a payee as described in paragraph 307.3(4)“d” and for filing an income statement with the department as described in paragraph 307.3(4)“e” shall be subject to a $500 penalty for each instance of any of the following:    (1)   Willful failure to furnish an income statement to a payee by January 31 of the year following the year in which income tax is withheld.    (2)   Willful failure to file an income statement with the department by February 15 of the year following the year in which income tax is withheld.    (3)   Willfully furnishing a false or fraudulent income statement to a payee.    (4)   Willfully filing a false or fraudulent income statement with the department.    b.    Penalties assessed under this subrule may not be waived.    c.    Penalties assessed under this subrule are in addition to any other penalty allowed under law.    307.5(3) Penalties for failure to file a return or failure to pay.      a.    Payers are subject to the penalties provided in Iowa Code section 421.27 for failure to file a quarterly return and failure to remit any withholding due. A penalty assessed under Iowa Code section 421.27 is in addition to any penalty assessed under law. Rule 701—10.6(421) contains a further explanation and examples applying the penalties under Iowa Code section 421.27. The penalties imposed under Iowa Code sections 421.27(1), 421.27(2), and 421.27(3) may be subject to waiver. Rule 701—10.7(421) contains details on penalty waivers.    b.    Pursuant to Iowa Code section 421.27(4), if the department determines that the payer willfully failed to file or pay with the intent to evade tax or a filing requirement, the penalty shall be 75 percent of the unpaid tax. In this case, the penalty is not subject to waiver.    307.(2) 307.5(4) Computation of interest on unpaid tax.  Interest shall accrue on tax due from the original due date of the return. Interest on refunds of any portion of the tax imposed by statute which has been erroneously refunded and which is recoverable by the department shall bear interest as provided by law from the date of payment of the refund, with each fraction of a month considered to be an entire month. See ruleRule 701—10.2(421) for thecontains more information about the statutory interest rate.All payments shall be first applied to the penalty and then to the interest, and the balance, if any, to the amount of tax due.    307.(3) 307.5(5) Computation of interest on overpayments.  If the amount of tax determined to be due by the department is less than the amount paid, the excess to be refunded will accrue interest from the first day of the second calendar month following the date of payment or the date the return was due to be filed or was filed, whichever is the later.    307.5(6) Examples.         This rule is intended to implement Iowa Code sections 421.27, 422.16, and 422.25.
        [Filed 2/1/23, effective 3/29/23][Published 2/22/23]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/22/23.
    ARC 6900CRevenue Department[701]Adopted and Filed

    Rule making related to pass-through entity composite returns

        The Revenue Department hereby amends Chapter 302, “Determination of Net Income,” Chapter 304, “Adjustments to Computed Tax and Tax Credits,” Chapter 307, “Withholding,” and Chapter 404, “Composite Returns”; adopts new Chapter 405, “Composite Returns for Tax Years Beginning on or After January 1, 2022”; and amends Chapter 501, “Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits,” Chapter 601, “Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits,” and Chapter 700, “Fiduciary Income Tax,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 421.14, 422.16B and 422.68.State or Federal Law Implemented    This rule making implements, in whole or in part, 2021 Iowa Acts, Senate File 608.Purpose and Summary    The Department has adopted this rule making to implement the pass-through entity composite return requirements enacted in 2021 Iowa Acts, Senate File 608, division II. That legislation repealed the provisions of Iowa law that required a pass-through entity (partnership, S corporation, estate, or trust) to withhold and remit income tax on a nonresident individual’s distributive Iowa-source income from the pass-through entity and that allowed a pass-through entity to elect to file an Iowa composite return on behalf of its nonresident individual members, and replaced them with a mandatory Iowa composite return filing and tax payment requirement that applies to all nonresident members of the pass-through entity. A composite return is a return that reports the Iowa-source income of nonresident members as one group and pays Iowa income or franchise tax related to that Iowa-source income. These changes take effect for tax years beginning on or after January 1, 2022.    In general, under Iowa Code section 422.16B, a pass-through entity with nonresident members is required to file an annual Iowa composite return and pay Iowa income or franchise tax on behalf of its nonresident members related to their Iowa-source income from the pass-through entity. Nonresident members receive a refundable Iowa tax credit equal to the Iowa income or franchise tax paid on their behalf, which they may claim on their own Iowa tax returns. Nonresident members who are individuals are relieved of the requirement to file an Iowa tax return if the pass-through entity is their only Iowa-source income. Certain pass-through entities are exempt under Iowa Code section 422.16B or these amendments from the requirement to file a composite return, or remit composite return tax on behalf of one or more nonresident members, or both. This rule making includes the following:

  • New Chapter 405 governs the new composite return requirements, including filing requirements, return and tax payment due dates, amended returns and refund limitations, nonresident member determinations, filing and tax payment exclusions for certain pass-through entities, tax payment exclusions for certain nonresident members, permissible elections out of the tax payment requirements,  calculation of composite return tax, tax credits for composite tax paid on behalf of nonresident members, Iowa tax return filing requirements for nonresident members included on a composite return, and composite returns for nonresidents who are not members of a pass-through entity.
  • New rule 701—404.10(422) addresses the nonapplication of the current composite return rules (Chapter 404) to tax years beginning on or after January 1, 2022, and certain other transition issues.
  • Amendments to rules 701—304.44(422), 701—501.12(422), and 701—601.2(422), which dictate the order in which tax credits must be claimed to account for new composite tax credits available to nonresident members.
  • Amendments to the Department’s withholding rules in Chapter 307 to account for the repeal of nonresident withholding requirements on pass-through entity income. This rule making also contains other technical amendments to Chapter 307 unrelated to the composite return requirements that remove superfluous rule language, correct federal law citations, and correct internal cross-references to other Iowa administrative rules.
  • Amendments to the Department’s fiduciary income tax rules in Chapter 700 to strike references to the now-repealed nonresident withholding requirements and replace them with language pertaining to the new composite return requirements. These amendments in part address the personal liability of a personal representative or trustee who fails to comply with the composite return requirements and the impact that the new composite return requirements have on the Department’s issuance of an income tax certificate of acquittance.
  • Amendments to subrule 302.46(2) relating to the filing of composite returns by nonresident members of professional athletic teams to clarify that the rule applies to composite returns filed under previous Iowa law for tax years beginning prior to January 1, 2022.
  • Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on December 14, 2022, as ARC 6746C. A public hearing was held on January 13, 2023, at 10 a.m. via video/conference call. Representatives of the Iowa Bankers Association attended the public hearing and made comments consistent with the written comments they also submitted.     The comments received from the Iowa Bankers Association were generally supportive of the law and proposed rule making, but did raise some general concerns about the inability to claim Iowa tax credits and certain owner-level deductions and exemptions on the new composite return and about the interaction that state composite return systems have with certain federal Internal Revenue Code regulations imposed on S corporations and their shareholder distributions. The comments also raised four specific concerns and related requests, which are addressed below:
    1.     The comments requested that the adopted rule making exempt financial institutions (i.e., banks) from the composite return filing and tax payment requirements pursuant to the Department’s authority in Iowa Code section 422.16B(5)“c.” To support this request, the comments stated in part that the inability to claim Iowa tax credits on the composite return will cause “a major disruption for many S-corporation banks due to the unique nature of the franchise tax credit which is an administrative credit to avoid double taxation.” The Iowa franchise tax credit is, in fact, an administrative tax credit intended to avoid double taxation because an S corporation financial institution’s Iowa income is subject to Iowa franchise tax at the entity level and Iowa income tax at the shareholder level. Nonresident shareholders have the right under Iowa law to claim both the Iowa franchise tax credit and the Iowa composite tax credit on their own Iowa individual income tax return, so no actual double taxation exists, but receiving both of those tax benefits would require nonresident shareholders to file an Iowa individual income tax return when they might not otherwise have a return filing requirement. The Department is unclear as to whether the Legislature intended this result.    The Department agrees that it has the authority under Iowa Code section 422.16B(5)“c” to exempt financial institutions from the composite return requirements. The Department will provide financial institutions, through rule, an exemption from the requirement to file composite returns and pay composite tax for the 2022 tax year. This limited exemption is being provided because tax year 2022 composite returns will become due before the Legislature can appropriately consider this issue. However, the Department declined to provide an exemption beyond tax year 2022 because it believes a permanent change, if one is warranted, should be addressed by the Iowa Legislature.
    2.     The comments requested that the adopted rule making allow the Nonresident Member Composite Agreement, which is used to elect out of the composite return tax payment requirement, to be signed and transmitted electronically between nonresident members and the pass-through entity. The Department’s provision regarding electronic signatures in subrule 8.2(6) is broad enough to permit electronic signature and transmission of the Nonresident Member Composite Agreement, so no changes from the Notice have been made as a result of this comment.
    3.     The comments requested that the adopted rule making allow the Nonresident Member Composite Agreement, which is used to elect out of the composite return tax payment requirement, to be made on an open-ended basis rather than an annual basis. The Department has determined that requiring an annual election is the best method to ensure that the pass-through entity and its nonresident owner take notice of, and comply with, their annual filing and tax payment obligations, so the Department declined to make this change.
    4.     The comments requested that the adopted rule making provide that a pass-through entity is not required to file a composite tax return for the tax year if all nonresident members have signed the Nonresident Member Composite Agreement. The Department has an administrative need to know when nonresident members, for which composite tax would be due, have instead signed the Nonresident Member Composite Agreement to elect out of the composite return tax payment requirement. The Department believes the composite return is an appropriate method to report those elections to the Department, so the Department declined to make this change.    One change from the Notice has been made. A new paragraph 405.5(1)“e” in Item 8 has been added to provide a composite return filing and payment exemption during tax year 2022 for a pass-through entity that is a financial institution subject to the Iowa franchise tax, or for certain pass-through entities that wholly own a financial institution subject to the Iowa franchise tax, if the financial institution files its 2022 Iowa franchise tax return (IA 1120F) and pays any franchise tax shown due on that return. This filing and payment exemption does not apply to any pass-through entity for any tax year beginning on or after January 1, 2023.
    Adoption of Rule Making    This rule making was adopted by the Department on January 27, 2023.Fiscal Impact    This rule making has no known fiscal impact to the State of Iowa beyond that of the legislation it is intended to implement. The final Fiscal Note for 2021 Iowa Acts, Senate File 608, found that division II had no potential direct impact on state revenues or expenditures.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on March 29, 2023.    The following rule-making actions are adopted:

        ITEM 1.    Amend subrule 302.46(2) as follows:    302.46(2) Filing composite Iowa returns for nonresident members of professional athletic teams.  ProfessionalFor tax years beginning prior to January 1, 2022, professional athletic teams may file composite Iowa returnsunder 701—Chapter 404 on behalf of team members who are nonresidents of Iowa and who have compensation that is taxable to Iowa from duty days in Iowa for the athletic team. However, the athletic team may include on the composite return only those team members who are nonresidents of Iowa and who have no Iowa sourceIowa-source incomes other than the incomes from duty days in Iowa for the team. The athletic team may exclude from the composite return any team member who is a nonresident of Iowa and whose income from duty days in Iowa is less than $1,000. See rule 701—48.1(422) about filing Iowa composite returns.Information on filing composite returns for tax years beginning on or after January 1, 2022, for nonresident members of professional athletic teams can be found in rule 701—405.9(422).

        ITEM 2.    Amend subrule 304.44(1) as follows:    304.44(1) Sequencing of credit deductions.  The credits against computed tax set forth in Iowa Code sections 422.5, 422.8, 422.10 through 422.12C, 422.12N, and 422.110 shall be claimed in the following sequence:    a.    Personal exemption credit.    b.    Tuition and textbook credit.    c.    Volunteer fire fighter, volunteer emergency medical services personnel and reserve peace officer tax credit.    d.    Nonresident and part-year resident credit.    e.    Out-of-state tax credit.    f.    Franchise tax credit.    g.    S corporation apportionment credit.    h.    Alternative minimum tax credit (for tax years beginning during 2023 only).    i.    Historic preservation tax credit (when the taxpayer has elected that the credit be nonrefundable under Iowa Code section 404A.2(4)).    j.    School tuition organization tax credit.    k.    Innovation fund investment tax credit.    l.    Endow Iowa tax credit.    m.    Redevelopment tax credit.    n.    From farm to food donation tax credit.    o.    Workforce housing tax credit.    p.    Hoover presidential library tax credit.    q.    Enterprise zone investment tax credit.    r.    High quality jobs investment tax credit.    s.    Wind energy production tax credit.    t.    Renewable energy tax credit.    u.    New jobs tax credit.    v.    Beginning farmer tax credit.    w.    Agricultural assets transfer tax credit.    x.    Custom farming contract tax credit.    y.    Geothermal heat pump tax credit.    z.    Solar energy system tax credit.    aa.    Charitable conservation contribution tax credit.    ab.    Alternative minimum tax credit (for tax years beginning before January 1, 2023).    ac.    Historic preservation tax credit (when the taxpayer has elected that the credit be refundable under Iowa Code section 404A.2(4)).    ad.    High quality jobs third-party developer tax credit.    ae.    Research activities credit.    af.    Child and dependent care tax credit or early childhood development tax credit.    ag.    Motor fuel tax credit.    ah.    Claim of right credit (if elected in accordance with rule 701—38.18(422)).    ai.    Qualifying business investment tax credit (also known as angel investor tax credit).    aj.    Adoption tax credit.    ak.    E-85 gasoline promotion tax credit.    al.    Biodiesel blended fuel tax credit.    am.    E-15 plus gasoline promotion tax credit.    an.    Earned income tax credit.    ao.    Renewable chemical production tax credit.    ap.    Estimated payments, payment with vouchers,composite tax credits, and withholding tax.

        ITEM 3.    Amend subrule 307.4(1), introductory paragraph, as follows:    307.4(1) General rules.  Payers of Iowa income to nonresidents are required to withhold Iowa income tax and to remit the tax to the department on all payments of Iowa income to nonresidents except payments of wages to nonresidents engaged in film production or television production described in subrule 46.4(5); income payments for agricultural commodities or products described in subrule 46.4(6); deferred compensation payments, pension, and annuity payments attributable to personal services in Iowa by nonresidents described in subrule 46.4(7); and partnership distributions from certain publicly traded partnerships described in subrule 46.4(8)as otherwise described in this rule. Withholding agents should use the following methods and rates in withholding for nonresidents:

        ITEM 4.    Amend subrule 307.4(2) as follows:    307.4(2) Income of nonresidents subject to withholding.  Listed below are various types of income paid to nonresidents which are subject to withholding tax. The list is for illustrative purposes only and is not deemed to be all-inclusive.    1a.    Personal service, including salaries, wages, commissions and fees for personal service wholly performed within this state and such portions of similar income of nonresident traveling salespersons or agents as may be derived from services rendered in this state.    2b.    Rents and royalties from real or personal property located within this state.    3c.    Interest or dividends derived from securities or investments within this state, when such interests or dividends constitute income of any business, trade, profession or occupation carried on within this state and subject to taxation.    4d.    Income derived from any business of a temporary nature carried on within this state by a nonresident, such as contracts for construction and similar contracts.
    1. The distributive share of a nonresident beneficiary of an estate or trust, limited, however, to the portion thereof subject to Iowa income tax in the hands of the nonresident.
        6e.    Income derived from sources within this state by attorneys, physicians, engineers, accountants, and similar sources as compensation for services rendered to clients in this state.    7f.    Compensation received by nonresident actors, singers, performers, entertainers, and wrestlers for performances in this state. See subrule 46.4(5)307.4(5) for an exception to this rule.
    1. Income received by a nonresident partner or shareholder of a partnership or S corporation doing business in Iowa. See subrule 46.4(8) for the exemption from withholding for partnership distributions from certain publicly traded partnerships.
        9g.    The Iowa gross income of a nonresident who is employed and receiving compensation for services shall include compensation for personal services which are rendered within this state. Compensation for personal services rendered by a nonresident wholly without the state is excluded from gross income of the nonresident even though the payment of such compensation may be made by a resident individual, partnership or corporation.    10h.    The gross income from commissions earned by a nonresident traveling salesperson, agent or other employee for services performed or sales made whose compensation depends directly on volume of business transacted by the nonresident, includes that proportion of the total compensation received which the volume of business or sales by the employee within this state bears to the total volume of business or sales within and without the state.    11i.    Payments made to landlords by agents, including elevator operators, for grain or other commodities which have been received by the landlord as rent constitute taxable income of the landlord when sold by the landlord. See subrule 46.4(6) forSubrule 307.5(6) contains information about the exemption from withholding on incomes paid to nonresidents for the sale of agricultural commodities or products.    12j.    Wages paid to nonresidents of Iowa who earn the compensation from regularly assigned duties in Iowa and one or more other states for a railway company or for a motor carrier are not taxable to Iowa. Pursuant to the Amtrak Reauthorization and Improvement Act of 199049 U.S.C. Section 11502, the nonresidents in this situation are subject only to the income tax laws of their states of residence. Thus, when an Iowa resident performs regularly assigned duties in two or more states for a railroad or a motor carrier, the only state income tax that should be withheld from the wages paid for these duties is Iowa income tax.    13k.    Wages paid to nonresidents of Iowa who earn compensation from regularly assigned duties in Iowa and one or more states for an airline company. In accordance with Public Law 103-272 enacted by Congress49 U.S.C. Section 40116, airline employees who are nonresidents of Iowa are subject only to the income tax laws of their states of residence or the state in which they perform 50 percent or more of their duties.    14l.    Wages paid to nonresidents of Iowa who earn compensation from regularly assigned duties in Iowa for a merchant marine company. In accordance with Public Law 106-489 enacted by Congress46 U.S.C. Section 11108, interstate waterway workers who are nonresidents of Iowa are subject only to the income tax laws of their states of residence.

        ITEM 5.    Rescind subrule 307.4(8) and adopt the following new subrule in lieu thereof:    307.4(8) Exemption from withholding of a nonresident’s distributive share of income from a pass-through entity.  For tax years beginning on or after January 1, 2022, a partnership, S corporation, estate, or trust is not required to withhold state income tax on a nonresident member’s distributive share of Iowa-source income from the pass-through entity. Instead, pass-through entities are subject to the composite return requirements in 701—Chapter 405.

        ITEM 6.    Amend 701—Chapter 404, title, as follows:COMPOSITE RETURNSFOR TAX YEARS BEGINNING PRIOR TO JANUARY 1, 2022

        ITEM 7.    Adopt the following new rule 701—404.10(422):

    701—404.10(422) Repeal—transition rule.      404.10(1) In general.  Except as otherwise provided in subrule 404.10(2), this chapter has no application to any tax year of partners, members, shareholders, beneficiaries, or employees that begins on or after January 1, 2022. The department’s administrative rules on composite returns for any tax year of a partnership, limited liability company, S corporation, estate, or trust that begins on or after January 1, 2022, are located in 701—Chapter 405.    404.10(2) Special rule for fiscal year filers in tax year 2021.  For the tax year of a partnership, limited liability company, S corporation, estate, or trust that begins in calendar year 2021 and ends in calendar year 2022, the entity may elect or be required to file a Form IA 1040C and pay tax under this chapter for income from that tax year that is reportable by nonresident partners, members, shareholders, or beneficiaries for their tax year beginning during calendar year 2022.       This rule is intended to implement 2021 Iowa Acts, Senate File 608, division II.

        ITEM 8.    Adopt the following new 701—Chapter 405: CHAPTER 405COMPOSITE RETURNS FOR TAX YEARS BEGINNING ON OR AFTER JANUARY 1, 2022

    701—405.1(422) Composite returns.  For tax years beginning on or after January 1, 2022, a pass-through entity with one or more nonresident members for any period of time during the tax year shall file a composite return using the Iowa composite return (IA PTE-C) and pay Iowa income or franchise tax on behalf of all of its nonresident members, unless an exception in rule 701—405.5(422) applies. The IA 1040C, used to file composite returns under the former composite return law in tax years beginning before January 1, 2022, has been discontinued for tax years beginning on or after that date, except as provided in 701—subrule 404.10(2). Rules related to the former composite return law are located in 701—Chapter 404.       This rule is intended to implement Iowa Code section 422.16B.

    701—405.2(422) Definitions.  Unless otherwise indicated in this rule or required by the context, all words and phrases used in this chapter that are defined under Iowa Code section 422.16B shall have the same meaning as provided to them under that Iowa Code section. For the purposes of this chapter:         "Composite return" means the IA PTE-C Iowa composite return, which reports information about the Iowa-source income or other amounts credited or paid to each nonresident member of the pass-through entity, the amount of composite return tax due on behalf of each nonresident member of the pass-through entity, and such other information as the department may require.         "Composite return tax" means the Iowa income tax or franchise tax due by a pass-through entity on behalf of the pass-through entity’s nonresident members.         "Department" means the department of revenue.        "GovConnectIowa" means the e-services portal of the department.        "Tax year" means the tax year of the pass-through entity filing the composite return.       This rule is intended to implement Iowa Code section 422.16B.

    701—405.3(422) Filing and payment for pass-through entities.      405.3(1) Filing requirement.  A pass-through entity that is required to file an Iowa partnership return (IA 1065), Iowa income tax return for S corporations (IA 1120S), or Iowa fiduciary return (IA 1041) and that has one or more nonresident members for any period of time during the tax year is required to file a composite return unless it meets the conditions for an exception outlined in subrule 405.5(1).     a.    A pass-through entity with nonresident members must file a composite return and pay composite return tax on behalf of all nonresident members, except for the nonresident members the pass-through entity can demonstrate are exempt from the composite return requirement pursuant to subrule 405.5(2) or that have elected out of the composite return requirement pursuant to rule 701—405.6(422).     b.    A pass-through entity must report all of its nonresident members, including nonresident members who are exempt from or who elect out of the composite return requirement, even though the pass-through entity is not required to pay composite return tax on behalf of those nonresident members. If all nonresident members are exempt from or elect out of the composite return requirement, the pass-through entity shall file a composite return reporting required information about all of its nonresident members and showing no composite return tax due.    c.    Any pass-through entity required to file its Iowa partnership return (IA 1065), Iowa income tax return for S corporations (IA 1120S), or Iowa fiduciary return (IA 1041) for a tax year in an electronic format under Iowa Code section 422.14, 422.15, or 422.36 shall also be required to file its composite return for that tax year in an electronic format. Rule 701—8.7(422) contains more information about mandatory electronic filing requirements.    d.    The composite return may be filed electronically by way of the Internal Revenue Service Modernized e-File (MeF) program, also known as federal/state electronic filing; mailed to Income Tax Return Processing, Iowa Department of Revenue, P.O. Box 9187, Des Moines, Iowa 50306-9187; or hand-delivered to the department’s office in the Hoover State Office Building, First Floor, 1305 East Walnut Street, Des Moines, Iowa 50319.    405.3(2) Due date of composite return—automatic extensions.  The composite return is due and must be filed on or before the due date of the pass-through entity’s Iowa partnership return (IA 1065), Iowa income tax return for S corporations (IA 1120S), or fiduciary return (IA 1041), whichever is applicable. If the pass-through entity qualifies for and receives an extension to file its Iowa income tax return, it will also automatically qualify for and receive the same period of extension to file its composite return. Any composite return filed after the due date, including extensions, may be subject to the penalty for failure to timely file a return pursuant to rules 701—10.6(421) and 701—10.9(421) and subject to other applicable penalties provided by law.    405.3(3) Due date of composite return tax.  The composite return tax is due by the original due date of the pass-through entity’s Iowa partnership return (IA 1065), Iowa income tax return for S corporations (IA 1120S), or fiduciary return (IA 1041), whichever is applicable. The filing extension described in subrule 405.3(2) does not extend the due date for paying the composite return tax. Any unpaid composite return tax is subject to interest computed from the original due date of the pass-through entity’s applicable income tax return. The pass-through entity may also be subject to the penalty for failure to timely pay tax due pursuant to rule 701—10.6(421) and other applicable penalties provided by law.     405.3(4) Payment of estimated composite return tax not required.  Pass-through entities are not required under Iowa law to make payments of estimated composite return tax. However, if a pass-through entity desires to make an estimated or other advance payment of composite return tax liability, the pass-through entity may do so electronically on GovConnectIowa or by sending a check with a voucher available on GovConnectIowa.    405.3(5) Amended composite returns—refund limitation.      a.    If the pass-through entity becomes aware that information was erroneously stated on the composite return, including but not limited to information about the nonresident members, Iowa-source income, or composite return tax due, the pass-through entity shall file an amended composite return, except as otherwise provided in this subrule.     b.    If after filing an initial composite return for a tax year the pass-through entity is required to amend its Iowa income tax return in a manner that increases the amount of composite return tax due, or the pass-through entity discovers that nonresident members were erroneously excluded from the composite return, the pass-through entity shall file an amended composite return and pay the additional composite return tax that is due. Any additional composite return tax payment determined to be due after the filing of the initial composite return shall be made by the pass-through entity. An amended composite return and additional composite return tax payment is not required if the return changes are from a centralized partnership audit or an Iowa pass-through entity audit and included in a pass-through entity’s election to pay on its owners’ behalf pursuant to Iowa Code section 422.25A(5).     c.    If after filing an initial composite return for a tax year the pass-through entity is required to amend its Iowa income tax return in a manner that only decreases the amount of Iowa-source income reportable to one or more nonresident owners, the pass-through entity is not required to file an amended composite return. A pass-through entity may not request a refund of composite return tax paid on behalf of a nonresident member after the initial composite tax return has been filed. When composite return tax is paid by a pass-through entity on behalf of a nonresident member, it is then treated as paid by the nonresident member and any refund of an overpayment may only be requested by the nonresident member on that nonresident member’s own income, franchise, or composite return.        This rule is intended to implement Iowa Code section 422.16B.

    701—405.4(422) Nonresident member determination.  The following rules shall apply in determining who is a nonresident member under Iowa Code section 422.16B(1)“a”:    405.4(1)   A partner, shareholder, or beneficiary of a pass-through entity shall be considered a nonresident member if any of the following were true for the entire period of time that person was a partner, shareholder, or beneficiary during that pass-through entity’s tax year:    a.    The person is an individual and was a nonresident of Iowa.    b.    The person is a business entity and did not have a commercial domicile in Iowa as defined in Iowa Code section 422.32.    c.    The person is an estate or trust and did not have a situs in Iowa.    405.4(2)   Any partner, shareholder, or beneficiary whose state of residence, commercial domicile, or situs, as applicable, is not known by the pass-through entity shall be considered a nonresident member.        This rule is intended to implement Iowa Code section 422.16B.

    701—405.5(422) Exceptions to the composite return requirement.      405.5(1) Filing and payment exceptions for pass-through entities.  Pass-through entities are not required to file a composite return or pay composite return tax if the entity meets any of the following conditions for the tax year:    a.    The pass-through entity is a publicly traded partnership that meets the requirements of Iowa Code section 422.16B(5)“a.”    b.    The pass-through entity is engaged in disaster or emergency-related work during a disaster response period and is not required to file a composite return as provided in Iowa Code section 29C.24.    c.    The pass-through entity is prohibited under federal or state law from making distributions to members. This exception applies only for years in which distributions are prohibited under federal or state law. Contractual restrictions on distributions, such as loan covenants or organization documents, do not qualify an entity for this exception.    d.    None of the pass-through entity’s nonresident members have a positive amount of Iowa-source income from the pass-through entity. This exception does not apply if any nonresident member has a positive amount of Iowa-source income from the pass-through entity, even if the nonresident member has elected out of the composite return pursuant to rule 701—405.6(422) and no composite return tax is due.    e.    Only for tax years beginning during calendar year 2022, the pass-through entity meets one of the following requirements:    (1)   The pass-through entity is a financial institution subject to the franchise tax under Iowa Code section 422.60 and files an Iowa franchise return for financial institutions (IA 1120F) required under Iowa Code section 422.62 and pays any franchise tax shown due on that return.    (2)   The pass-through entity wholly owns one or more financial institutions subject to the franchise tax under Iowa Code section 422.60 that are treated as disregarded entities for federal and Iowa income tax purposes, substantially all (at least 90 percent) of the pass-through entity’s gross income for the tax year is also reportable income on those wholly owned financial institutions’ Iowa franchise return for financial institutions (IA 1120F) required under Iowa Code section 422.62, and those wholly owned financial institutions file their Iowa franchise return for financial institutions (IA 1120F) and pay any franchise tax shown due on that return.This exception does not apply to any pass-through entity for any tax year beginning on or after January 1, 2023.    405.5(2) Payment exceptions for nonresident members.  A pass-through entity is not required to pay composite return tax on behalf of a particular nonresident member if that nonresident member meets any of the following conditions for the tax year:    a.    The nonresident member is a publicly traded partnership that meets the requirements of Iowa Code section 422.16B(5)“a.”    b.    The nonresident member is exempt from Iowa income tax under Iowa Code section 422.34(2), unless the Iowa-source income of the tax-exempt entity is unrelated business income.    c.    The nonresident member is an insurance company exempt from Iowa income tax under Iowa Code section 422.34(1) and instead subject to the insurance companies tax under Iowa Code section 432.1, 432.2, 432A.1, 518.18, or 518A.35.    d.    The nonresident member and the pass-through entity complete and sign the Nonresident Member Composite Agreement form for the tax year as described in rule 701—405.6(422).       This rule is intended to implement Iowa Code section 422.16B.

    701—405.6(422) Election out of the composite return tax requirement.      405.6(1) In general.  A nonresident member may elect to be excluded from a pass-through entity’s composite return unless prohibited from doing so by the department under subrule 405.6(2). Electing out of the composite return only relieves the pass-through entity of the requirement to pay composite return tax on behalf of that nonresident member. It does not relieve the pass-through entity of the requirement to report that nonresident member on a composite return. For a nonresident member to be excluded from the composite return tax payment, both the nonresident member and the pass-through entity must complete and sign the Nonresident Member Composite Agreement, available on the department’s website. The Nonresident Member Composite Agreement must be completed and signed by all parties prior to the pass-through entity’s composite return due date, including extensions. The Nonresident Member Composite Agreement is only valid for the tax year for which it is executed. The nonresident member and the pass-through entity must complete and sign a separate Nonresident Member Composite Agreement for each tax year in which the nonresident member seeks to be excluded from the composite return.    405.6(2) Circumstances in which a pass-through entity or nonresident member may not elect out of the composite return requirement.      a.    The ability to elect out of the composite return is conditionally granted by the department based on the nonresident member’s promise to comply with the filing and payment requirements listed in subrule 405.6(3) and the pass-through entity’s compliance with Iowa tax law.     b.    If information available to the department indicates that the pass-through entity has not complied with Iowa tax law, including but not limited to properly reporting or sourcing its income or other tax items within and without Iowa, the department may revoke the pass-through entity’s ability to enter into a Nonresident Member Composite Agreement with its nonresident members.     c.    If information available to the department indicates that a nonresident member has not complied with the filing and payment requirements listed in subrule 405.6(3), the department may revoke the pass-through entity’s ability to enter into a Nonresident Member Composite Agreement with that particular nonresident member.     d.    The pass-through entity will be notified in writing of a revocation under paragraph 405.6(2)“b” or “c,” and such revocation will take effect 30 days following the date on the revocation letter. The revocation will not affect any Nonresident Member Composite Agreement entered into prior to the effective date of the revocation. After such revocation, a pass-through entity will not be allowed to enter into a Nonresident Member Composite Agreement with the affected nonresident members without written permission from the department.     405.6(3) Filing and payment requirements for a nonresident member electing out of composite return requirement.  To elect out of the composite return requirement, a nonresident member must agree to all of the following in the Nonresident Member Composite Agreement:    a.    The nonresident member shall file an Iowa income or franchise tax return, unless such return is subject to a filing threshold and the nonresident member falls below that threshold and is not required to file.     b.    The nonresident member shall timely pay all Iowa income or franchise tax related to the nonresident member’s distributive share of Iowa-source income from the pass-through entity, including, if applicable, estimated tax payments and composite return tax payments.     c.    The nonresident member shall acknowledge that the nonresident member is subject to personal jurisdiction in Iowa for the collection of Iowa income or franchise tax liability.     405.6(4) Retention of records.  The signed Nonresident Member Composite Agreement is not required to be submitted with the composite return but shall be retained by the pass-through entity and submitted to the department upon request.    405.6(5) Liability for unpaid tax, penalty, and interest for a nonresident member electing out of the composite return requirement.  A pass-through entity that enters into a Nonresident Member Composite Agreement with a nonresident member will remain jointly and severally liable for any unpaid composite return tax, penalty, and interest attributable to the electing nonresident member’s distributive share of Iowa-source income from the pass-through entity. If the department determines that a nonresident member has failed to comply with the tax filing and payment requirements agreed to in subrule 405.6(3), it may collect the unpaid composite return tax, penalty, and interest directly from the pass-through entity.       This rule is intended to implement Iowa Code section 422.16B.

    701—405.7(422) Determination of composite return tax.      405.7(1)   Each nonresident member’s distributive share of Iowa-source income from the pass-through entity shall be determined at the entity level in accordance with the Iowa statutes, administrative rules, and tax forms applicable to the pass-through entity’s tax type, including provisions related to the allocation and apportionment of income.     405.7(2)   A partner’s Iowa-source income includes the amount of nonseparately stated income, separately stated income including guaranteed payments, and separately stated deductions, attributable to Iowa as properly reported on the partner’s IA 1065 Schedule K-1. A shareholder’s Iowa-source income includes the amount of nonseparately stated income, separately stated income, and separately stated deductions, attributable to Iowa as properly reported on the shareholder’s IA 1120S Schedule K-1. A beneficiary’s Iowa-source income includes the amount of distributable net income attributable to Iowa as properly reported on the beneficiary’s IA 1041 Schedule K-1.     405.7(3)   No net operating loss or other owner-level tax attribute modification, or reduction for Iowa tax credits, is allowed in the computation of each nonresident member’s Iowa-source income for purposes of the composite return. To claim an owner-level tax attribute modification, or an Iowa tax credit, the nonresident member must file the nonresident member’s own Iowa tax return.     405.7(4)   If a nonresident member’s Iowa-source income is a loss, that loss cannot be netted against the Iowa-source income of another nonresident member.    405.7(5)   The composite return tax for each nonresident member is computed by multiplying the nonresident member’s Iowa-source income, if positive, by the highest tax rate applicable to that nonresident member. C corporations, or tax-exempt entities with unrelated business income, will be taxed at the highest corporate tax rate in Iowa Code section 422.33. Financial institutions will be taxed at the franchise tax rate in Iowa Code section 422.63. Individuals, estates, trusts, partnerships, and S corporations (except those subject to the franchise tax) will be taxed at the highest individual tax rate in Iowa Code section 422.5A. The sum of the composite return tax for all nonresident members is the pass-through entity’s total composite return tax liability.        This rule is intended to implement Iowa Code section 422.16B.

    701—405.8(422) Filing for nonresident members—composite tax credits.      405.8(1) In general.  Nonresident members included on a pass-through entity’s composite return may still have an Iowa return filing requirement. The nonresident member shall receive a refundable composite tax credit for the composite return tax paid on the nonresident member’s behalf by the pass-through entity. The nonresident member’s composite tax credit shall be claimed for the same tax year that the nonresident member’s Iowa-source income from the pass-through entity is required to be reported on the nonresident member’s Iowa income or franchise return.     405.8(2) Nonresident member—partnership.  A nonresident member that is a partnership is required to file the Iowa partnership return (IA 1065). The partnership is also subject to the composite return requirements if it has one or more nonresident members for any period of time during the tax year or if it desires to claim a composite tax credit it received from another pass-through entity. The partnership shall claim its composite tax credit on its composite return. Subrule 405.8(4) contains information related to financial institutions organized as pass-through entities.    405.8(3) Nonresident member—S corporation.  A nonresident member that is an S corporation is required to file the Iowa income tax return for S corporations (IA 1120S). The S corporation is also subject to the composite return requirements if it has one or more nonresident members for any period of time during the tax year or if it desires to claim a composite tax credit it received from another pass-through entity. The S corporation shall claim its composite tax credit on its composite return. Subrule 405.8(4) contains information related to financial institutions organized as pass-through entities.    405.8(4) Nonresident member—financial institution.      a.    A nonresident member that is a financial institution as defined in Iowa Code section 422.61 is required to file the Iowa franchise return for financial institutions (IA 1120F). The financial institution shall claim its composite tax credit on its Iowa franchise return for financial institutions (IA 1120F).     b.    If the nonresident financial institution is organized as a pass-through entity, it is also required to file the Iowa partnership return (IA 1065) or the Iowa income tax return for S corporations (IA 1120S), as applicable, and is subject to the composite return requirements if it has one or more nonresident members for any period of time during the tax year. In such instances, the financial institution may claim its composite tax credit on its Iowa franchise return for financial institutions (IA 1120F) or its composite return.     405.8(5) Nonresident members—C corporation or tax-exempt entity.  A nonresident member that is a C corporation, or a tax-exempt entity with unrelated business income, is required to file the Iowa corporation income tax return (IA 1120). The entity shall claim its composite tax credit on its Iowa corporation income tax return (IA 1120).     405.8(6) Nonresident member—estate or trust.  A nonresident member that is an estate or trust is required to file the Iowa fiduciary return (IA 1041) unless the estate’s or trust’s taxable income is below the Iowa return filing threshold in Iowa Code section 422.14. The estate or trust is also subject to the composite return requirement if its taxable income is above the Iowa return filing threshold in Iowa Code section 422.14 and if it has one or more nonresident members for any period of time during the tax year. The estate or trust may claim its composite tax credit on its Iowa fiduciary return (IA 1041) or its composite return.    405.8(7) Nonresident members—individuals.  A nonresident member that is an individual is required to file the Iowa individual income tax return (IA 1040) unless the individual’s income is below the Iowa return filing threshold in Iowa Code section 422.13, or unless the individual’s distributive share of pass-through entity income included on one or more composite returns is the individual’s only Iowa-source income. The individual shall claim the composite tax credit on the individual’s Iowa individual income tax return (IA 1040).        This rule is intended to implement Iowa Code section 422.16B.

    701—405.9(422) Composite returns for nonresidents who are not members of a pass-through entity.      405.9(1)   The department may require that a composite return be filed under this chapter for nonresidents who are not members of a pass-through entity. The requirement may be set forth in this chapter for a category of persons or may be made directly in writing by the department to a specific person.     405.9(2)   If a person who is not required to file a composite return under this chapter desires to do so for a group of nonresidents, the person shall request and receive permission from the department before filing the composite return. In order to be a valid request, the request must be in writing and must include sufficient information about the person making the request, the nonresidents to be included in the composite return, and the reason for filing on a composite return basis to enable the department to evaluate the request and make a determination. Once a valid request is received, the department may request additional information. Written requests shall be mailed to Policy Bureau, Research and Policy Division, Iowa Department of Revenue, P.O. Box 14467, Des Moines, Iowa 50306-3467.        This rule is intended to implement Iowa Code section 422.16B.

        ITEM 9.    Amend subrule 501.12(1) as follows:    501.12(1) Sequencing of credit deductions.  The credits against computed tax set forth in Iowa Code sections 422.33 and 422.110 shall be claimed in the following sequence.    a.    Franchise tax credit.    b.    Alternative minimum tax credit (for tax years beginning during 2021 only).    c.    Qualifying business investment tax credit (also known as angel investor tax credit).    d.    Historic preservation tax credit (when the taxpayer has elected that the credit be nonrefundable under Iowa Code section 404A.2(4)).    e.    School tuition organization tax credit.    f.    Innovation fund investment tax credit.    g.    Endow Iowa tax credit.    h.    Redevelopment tax credit.    i.    From farm to food donation tax credit.    j.    Workforce housing tax credit.    k.    Hoover presidential library tax credit.    l.    Enterprise zone tax credit.    m.    High quality jobs investment tax credit.    n.    Wind energy production tax credit.    o.    Renewable energy tax credit.    p.    New jobs tax credit.    q.    Beginning farmer tax credit.    r.    Agricultural assets transfer tax credit.    s.    Custom farming contract tax credit.    t.    Solar energy system tax credit.    u.    Charitable conservation contribution tax credit.    v.    Alternative minimum tax credit (for tax years beginning before January 1, 2021, only).    w.    Historic preservation tax credit (when the taxpayer has elected that the credit be refundable under Iowa Code section 404A.2(4)).    x.    High quality jobs third-party developer tax credit.    y.    Research activities credit.    z.    Assistive device tax credit.    aa.    Motor fuel tax credit.    ab.    E-85 gasoline promotion tax credit.    ac.    Biodiesel blended fuel tax credit.    ad.    E-15 plus gasoline promotion tax credit.    ae.    Renewable chemical production tax credit.    af.    Estimated tax and paymentpayments, payments with vouchers, and composite tax credits.

        ITEM 10.    Amend subrule 601.24(1) as follows:    601.24(1) Sequencing of credit deductions.   The credits against computed tax set forth in Iowa Code section 422.60 shall be claimed in the following sequence.    a.    Alternative minimum tax credit (for tax years beginning during 2021 only).    b.    Qualifying business investment tax credit (also known as angel investor tax credit).    c.    Historic preservation tax credit (when the taxpayer has elected that the credit be nonrefundable under Iowa Code section 404A.2(4)).    d.    Innovation fund investment tax credit.    e.    Endow Iowa tax credit.    f.    Redevelopment tax credit.    g.    Workforce housing tax credit.    h.    Hoover presidential library tax credit.    i.    Enterprise zone tax credit.    j.    High quality jobs investment tax credit.    k.    Wind energy production tax credit.    l.    Renewable energy tax credit.    m.    Solar energy system tax credit.    n.    Alternative minimum tax credit (for tax years beginning before January 1, 2021, only).    o.    Historic preservation tax credit (when the taxpayer has elected that the credit be refundable under Iowa Code section 404A.2(4)).    p.    High quality jobs third-party developer tax credit.    q.    Estimated tax and paymentpayments, payments with vouchers, and composite tax credits.

        ITEM 11.    Amend subrule 700.4(9) as follows:    700.4(9) Duties of the taxpayer.      a.    Income of the estate or trust.A taxpayer must timely file a fiduciary return if the minimum filing requirements specified in subrule 89.4(6) are met and must pay 90 percent of the tax due. Receipt of the return with 90 percent of the tax due paid will result in an automatic six-month extension of time to pay the remaining tax due. The department is not required to file a claim for taxes in the estate proceedings and have the claim allowed before the tax is paid. In re Estate of Oelwein, 217 Iowa 1137, 1141, 251 N.W. 694 (1933); Findley v. Taylor, 97 Iowa 420, 66 N.W. 744 (1896). The personal representative of an estate must pay the tax on income from property in the personal representative’s possession, prior to applying the income to estate obligations. See Iowa Code section 633.352.    b.    Decedent’s final individual income tax return.The executor, administrator, or other personal representative of the decedent’s estate must file an individual income tax return for the decedent for the year of the decedent’s death if the gross income attributable to the decedent for the part of the taxable year ending with death equals or exceeds the minimum filing requirements. See 701—subrules 39.1(1) to 39.1(3) and 39.1(5) for the minimum filing requirements for individual income tax. If the surviving spouse of a decedent has not remarried during the balance of the taxable year and has the same taxable year as the decedent, the personal representative of the decedent’s estate may file a joint return with the surviving spouse for the taxable year of death. In the event of such an election, the joint return must include the surviving spouse’s income for the entire taxable year and the decedent’s income for the portion of the taxable year ending with death. Income attributable to property owned by the decedent and the decedent’s rights to income received after the day of the decedent’s death are income of the decedent’s estate or the persons succeeding to the property or rights to income. See Iowa Code sections 633.350 to 633.353 for the circumstances under which the estate is charged with the income from the decedent’s property or the decedent’s rights to income. Income from property held by the decedent and others in joint tenancy received after the decedent’s death is charged to the surviving joint tenants, not to the decedent’s estate.The final return for a decedent may be filed at any time after the decedent’s death, but in no event later than the last day of the fourth month following the end of the decedent’s normal taxable year. The final income tax return of the decedent, if the minimum filing requirements are met, must be filed prior to the time an income tax certificate of acquittance is requested, even though this may require the early filing of the return. Therefore, filing a joint return with the surviving spouse is precluded if the decedent’s final return is required to be filed prior to the end of the normal taxable year.    c.    Decedent’s prior year returns.The personal representative of the decedent’s estate is not limited to filing the decedent’s final return and paying the tax due. In addition, the personal representative has the duty to file a return, if none was filed, and to pay any additional income tax owed by the decedent that may become due by reason of an audit of the decedent’s income or prior year returns. The personal representative’s duty to pay the tax, or additional tax, is limited to the probate property subject to the jurisdiction of the court. The probate property must be applied to the payment of the decedent’s tax liability according to the order for paying debts and charges specified in Iowa Code section 633.425.    d.    Withholding agent—general ruleComposite return requirement.The personal representative of a decedent’s estate and the trustee of a trust shall withhold Iowa income tax from a distribution of Iowa taxable income to beneficiaries who are nonresidents of Iowaare subject to the composite return filing and tax payment obligations under Iowa Code section 422.16B and 701—Chapter 405 if the estate or trust has nonresident beneficiaries. This withholding requirement applies to both Iowa and non-Iowa situs estates and trusts. See Iowa Code subsection 422.16(12) and 701—subrule 46.4(2), item “5,” for the duty to withhold. The amount of income tax to be withheld shall be computed either based on 5 percent of the taxable Iowa income distributed or according to tax tables provided by the department. See 701—subrule 46.3(3) for the required withholding form and return to be filed with the department.    e.    Exception to the general rule.If a nonresident beneficiary of an estate or trust who is to receive a distribution of Iowa taxable income files with the department a nonresident declaration of estimated tax and pays the estimated tax on the income declared in full, 89.4(9)“d” does not apply to the amount of the income declared. A certificate of release from the duty to withhold will be issued to the withholding agent upon request. See Iowa Code sections 422.16(12) and 422.17 and 701—subrule 46.4(3) relating to the release certificate. In addition, an estimated payment of withholding can occur if a distribution is being made to a taxable beneficiary. An estimated payment of withholding should be based on 5 percent of the taxable Iowa income. It is the department’s policy to allow estimated payments of withholding to be paid directly to the department.    f.    Withholding not required.Withholding is not required from the distribution made by estates and trusts of Iowa taxable income to beneficiaries who are residents of Iowa.    g.    e.    Beneficiary’s share of income, deductions and credits.After the final distribution of income for the taxable year, but prior to the date for filing a beneficiary’s individual income tax return, the personal representative of an estate and the trustee of a trust shall furnish each beneficiary receiving a distribution from an estate or trust a written statement specifying the amount and types of income subject to Iowa tax and the kinds and amounts of the deductions and credits against the tax. A copy of the federal schedule K-1, Form 1041, adapted to reflect Iowa taxable income, may be substituted in lieu of the statement.    h.    f.    Liability of a withholding agentpersonal representative and trustee.A withholding agent ispersonal representative of a decedent’s estate and the trustee of a trust shall be personally liable for the amount of theIowa composite tax required to be withheldpaid under Iowa Code subsection 422.16(12)section 422.16B and 701—Chapter 405 if the income tax liability of a nonresident beneficiary which is attributable to the distributioncomposite tax liability attributable to a nonresident beneficiary is not paid and, in addition, is personally liable for any penalty and interest due if the tax required to be withheld is not paid to the department within the time prescribed by law. See rules 701—44.1(422) to 701—44.4(422) for the application and computation of penalty and interest on income tax required to be withheld.

        ITEM 12.    Amend paragraph 700.8(7)"p" as follows:    p.    Nonresident aliens—sales of Iowa real estate.For sales and exchanges occurring after June 18, 1980, nonresidentNonresident aliens and estates and trusts with a situs outside the United States must include the gain from the sale or exchange of Iowa real estate as taxable income, even though the real estate was not effectively connected with a trade or business carried on in the United States. See Public Law 96-499. Any gain paid or distributed to a nonresident alien or an estate or trust with a situs outside the United States is subject to Iowa income tax withholdingcomposite tax, unless the gain has been previously accumulated and any tax due paid. See 89.4(9)“d”Paragraph 700.4(9)“d” and 701—subrule 46.4(2), item “5,” for the duty to withhold Iowa income tax from701—Chapter 405 contain more information on the requirement to pay Iowa composite tax on distributions to nonresident beneficiaries and individuals.

        ITEM 13.    Amend subrule 700.10(3) as follows:    700.10(3) Requirements for a certificate of acquittance.  The issuance of an income tax certificate of acquittance is dependent upon full payment of the income tax liability of the estate or trust for the period of administration. This includes the obligation to withhold incomepay composite return tax on distributions toof nonresident beneficiariesbeneficiaries’ Iowa-source income from the estate or trust. In the case of an estate, the income tax liability of the decedent for bothfor prior years and the year of death must be paid to the extent of the probate property subject to the jurisdiction of the court. The probate property must be applied to the payment of the decedent’s income tax liability according to the order of payment of an estate’s debts and charges specified in Iowa Code section 633.425. If the probate property of the estate is insufficient to pay the decedent’s income tax obligation in full, the department, in lieu of a certificate of acquittance, shall issue a certificate stating that the probate property is insufficient to pay the decedent’s income tax liability and that the department does not object to the closure of the estate. In the event the decedent’s income tax obligation is not paid in full, the closure of the decedent’s estate does not release any other person who is liable to pay the decedent’s income tax obligation.    [Filed 1/27/23, effective 3/29/23][Published 2/22/23]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/22/23.
    ARC 6902CRevenue Department[701]Adopted and Filed

    Rule making related to income and franchise tax exclusion for qualifying COVID-19 grants

        The Revenue Department hereby amends Chapter 302, “Determination of Net Income,” and Chapter 502, “Determination of Net Income,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 421.14, 422.7(62), 422.35(30) and 422.68.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 422.7(62) and 422.35(30).Purpose and Summary    This rule making implements the Iowa income and franchise tax exclusion for qualifying COVID-19 grants contained in 2021 Iowa Acts, Senate File 619, sections 5 through 7 (codified at Iowa Code sections 422.7(62) and 422.35(30)), by identifying, through rule, state grant programs that meet the definition of “qualifying COVID-19 grant” and thus qualify for the exclusion. Iowa law and Iowa administrative rules require an eligible administering agency to notify the Director of the Department of the existence of any grant program it believes may be a qualifying COVID-19 grant program. Grant funds issued from the programs listed in the Department’s rules qualify for the income and franchise tax exclusion. On or about September 15, 2022, the Department was notified by the Iowa Economic Development Authority that certain additional COVID-19 grant programs administered by the Authority may be “qualifying COVID-19 grants” for purposes of the income tax exclusion. This rule making adds the identified qualifying grants to the list of grants eligible for the income and franchise tax exclusion contained in the Department’s rules.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on November 30, 2022, as ARC 6700C. The Department received a single public comment from an industry group that represents businesses that may be eligible for one of the excluded grant programs. The comment did not address the content of the rule making, but expressed “strong support” for this rule making and commended the Department for recognizing these grant programs as eligible for the income tax exclusion. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Department on January 4, 2023.Fiscal Impact     The Fiscal Note for 2021 Iowa Acts, Senate File 619, division III, estimated a reduction of $9.2 million in fiscal year 2021 and $1 million in fiscal year 2022. However, the four state grant programs identified in this rule making were not in existence on the date of that Fiscal Note, according to information provided by the Authority, so they were not accounted for in the assumptions used to create the estimate. Based on the Authority’s publicly available information about these additional programs, it is assumed that total funds to be issued under these additional programs will amount to $43.5 million. The estimated fiscal impact to the State of Iowa of exempting grants made under these programs from Iowa tax is -$2.4 million in fiscal year 2023.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on March 29, 2023.    The following rule-making actions are adopted:

        ITEM 1.    Amend rule 701—302.86(422) as follows:

    701—302.86(422) COVID-19 grant exclusion.      302.86(1) Definitions.  For purposes of this rule:        "Administering agency" means the economic development authority, the Iowa finance authority, or the department of agriculture and land stewardship.        "Grant recipient" means a person who applies for and is issued a qualifying COVID-19 grant by an administering agency.        "Issued" means the approval of the grant recipient’s application and amount for a qualifying COVID-19 grant by an administering agency, regardless of when the grant funds were paid by the administering agency.    302.86(2) Qualifying COVID-19 grant programs.      a.    The department is responsible for determining whether a grant program provides a “qualifying COVID-19 grant” as defined in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5. In making this determination, and for purposes of the definition of “qualifying COVID-19 grant,” a grant program is “created to primarily provide COVID-19 related financial assistance to economically impacted individuals and businesses located in this state” if that grant program, at the time of its inception, was intended by the administering agency to provide a majority (more than 50 percent) of its financial assistance to or for the benefit of either or both of the following persons economically affected by the COVID-19 pandemic:    (1)   Individuals living in Iowa.    (2)   Businesses that are doing business in Iowa or are deriving income from sources within Iowa.     b.    The administering agency shall notify the director of the existence of any grant program it believes may be a qualifying COVID-19 grant program. Upon such notification, the department will request from the administering agency the information necessary to determine whether that program is a qualifying COVID-19 grant as defined in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5, and this rule. The administering agency shall provide the department with the requested information within the time frame prescribed by the department in its request. Failure to provide the requested information to the department shall prevent the department from determining that the grant program is a qualifying COVID-19 grant. Grant programs not specifically listed below in paragraph 40.86(2)“c”302.86(2)“c” are not qualifying COVID-19 grants and are not eligible for the exclusion provided in this rule, even if that program may otherwise meet the definition of “qualifying COVID-19 grant” in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5.    c.    The following is an exhaustive list of programs that have been identified by the department as qualifying COVID-19 grants, including a general description of each program’s grant recipients, that may qualify for the exclusion from Iowa net income under subrule 40.86(3)302.86(3):     (1)   Beef up Iowa program administered by the department of agriculture and land stewardship. Grant recipient is Iowa State University.     (2)   Iowa beginning farmer debt relief fund administered by the Iowa finance authority. Grant recipients include Iowa beginning farmers.     (3)   Iowa biofuels relief program administered by the economic development authority. Grant recipients include Iowa biodiesel and ethanol producers.     (4)   Iowa county fairs relief fund administered by the economic development authority. Grant recipients include Iowa county and district fairs.    (5)   Iowa COVID-19 business disruption relief program administered by the economic development authority. Grant recipients include Iowa bars, taverns, breweries, distilleries, wineries, and other similar drinking establishments.    (6)   Iowa COVID-19 targeted small business sole operator fund administered by the economic development authority. Grant recipients include Iowa targeted small businesses.     (7)   Iowa disposal assistance program administered by the department of agriculture and land stewardship. Grant recipients include Iowa pork and egg producers.    (8)   Iowa eviction and foreclosure prevention program administered by the Iowa finance authority. Grant recipients include Iowa residential renters and homeowners.     (9)   Iowa homeowner foreclosure prevention program administered by the Iowa finance authority. Grant recipients include Iowa residential homeowners.    (10)   Iowa hospital COVID-19 relief fund administered by the economic development authority. Grant recipients include Iowa hospitals.     (11)   Iowa livestock producer relief fund administered by the economic development authority. Grant recipients include Iowa livestock producers.     (12)   Iowa movie theatre relief grant program administered by the economic development authority. Grant recipients include Iowa movie theaters.    (13)   Iowa nonprofit recovery fund administered by the economic development authority. Grant recipients include Iowa nonprofit organizations.    (14)   Iowa renewable fuel retail recovery program administered by the department of agriculture and land stewardship. Grant recipients include Iowa fuel retailers.    (15)   Iowa rent and utility assistance program administered by the Iowa finance authority. Grant recipients include Iowa residential renters.    (16)   Iowa residential utility disruption prevention program administered by the economic development authority. Grant recipients include Iowa residential renters and homeowners.    (17)   Iowa restaurant and bar relief grant program administered by the economic development authority. Grant recipients include Iowa bars, breweries, brewpubs, distilleries, wineries, and restaurants.     (18)   Iowa small business relief grant program administered by the economic development authority. Grant recipients include Iowa small businesses.    (19)   Iowa small business utility disruption prevention program administered by the economic development authority. Grant recipients include Iowa small businesses and small nonprofit organizations.    (20)   Local produce and protein program administered by the department of agriculture and land stewardship. Grant recipients include Iowa schools, early childcare centers, specialty crop producers, and food hubs.     (21)   Meat processing expansion and development program administered by the department of agriculture and land stewardship. Grant recipients include Iowa meat and poultry processing businesses and employees and Iowa livestock producers.     (22)   Pack the pantry program administered by the department of agriculture and land stewardship. Grant recipients include Iowa food pantries.    (23)   Pass the pork program administered by the department of agriculture and land stewardship. Grant recipients include Iowa food banks.     (24)   Turkey to table program administered by the department of agriculture and land stewardship. Grant recipients include Iowa food banks.     (25)   Iowa bowling center relief fund administered by the economic development authority. Grant recipients include Iowa for-profit bowling centers.    (26)   Iowa charter bus relief program administered by the economic development authority. Grant recipients include for-profit charter bus companies with a vehicle fleet registered in Iowa.    (27)   Iowa sports entertainment relief program administered by the economic development authority. Grant recipients include certain for-profit and nonprofit sports teams with a home venue located in Iowa.     (28)   Iowa fitness center relief program administered by the economic development authority. Grant recipients include for-profit, nonprofit, and local government-owned fitness centers located in Iowa.    302.86(3) Excluding qualifying COVID-19 grants from Iowa net income.      a.    Generally.A grant recipient may subtract a qualifying COVID-19 grant when calculating Iowa net income if all of the following apply:     (1)   The grant was issued as part of a qualifying COVID-19 grant program identified in paragraph 40.86(2)“c.”302.86(2)“c.”    (2)   The grant was issued on or after March 17, 2020, and on or before December 31, 2021.     (3)   The grant funds were included in the grant recipient’s net income for a tax year ending on or after March 17, 2020, but beginning before January 1, 2024. The grant may only be subtracted to the extent it is included in the grant recipient’s net income for that qualifying tax year. A qualifying COVID-19 grant that is exempt from federal income tax, and thus not included in the grant recipient’s Iowa net income, does not qualify for an additional subtraction on the grant recipient’s Iowa return.    b.    Third-party payee of grant funds.A third-party payee of qualifying COVID-19 grant funds is not eligible for this exemption from Iowa income. If the proceeds of a qualifying COVID-19 grant are paid to someone other than the grant recipient, only the grant recipient on whose behalf the grant proceeds were paid may qualify for this exemption from Iowa income.     c.    Repayment.Grant funds that were repaid to the administering agency for any reason are not eligible for this exemption from Iowa income.     d.    Reporting requirements.A grant recipient who received qualifying COVID-19 grant funds and who excludes those funds when calculating Iowa net income should retain documentation to support the claimed exclusion. A grant recipient must provide such documentation to the department if requested. The required documentation may include, but is not limited to, documentation to support that the grant recipient was issued and received the grant within the qualifying periods.       This rule is intended to implement Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5.

        ITEM 2.    Amend rule 701—502.30(422) as follows:

    701—502.30(422) COVID-19 grant exclusion.      502.30(1) Definitions.  For purposes of this rule:        "Administering agency" means the economic development authority, the Iowa finance authority, or the department of agriculture and land stewardship.        "Grant recipient" means a person who applies for and is issued a qualifying COVID-19 grant by an administering agency.        "Issued" means the approval of the grant recipient’s application and amount for a qualifying COVID-19 grant by an administering agency, regardless of when the grant funds were paid by the administering agency.    502.30(2) Qualifying COVID-19 grant programs.       a.    The department is responsible for determining whether a grant program provides “qualifying COVID-19 grants” as defined in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5. In making this determination, and for purposes of the definition of “qualifying COVID-19 grant,” a grant program is “created to primarily provide COVID-19 related financial assistance to economically impacted individuals and businesses located in this state” if that grant program, at the time of its inception, was intended by the administering agency to provide a majority (more than 50 percent) of its financial assistance to or for the benefit of businesses that are doing business in Iowa or are deriving income from sources within Iowa, and that are economically affected by the COVID-19 pandemic.    b.    The administering agency shall notify the director of the existence of any grant program it believes may be a qualifying COVID-19 grant program. Upon such notification, the department will request from the administering agency the information necessary to determine whether that program is a qualifying COVID-19 grant as defined in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5, and this rule. The administering agency shall provide the department with the requested information within the time frame prescribed by the department in its request. Failure to provide the requested information to the department shall prevent the department from determining that the grant program is a qualifying COVID-19 grant. Grant programs not specifically listed below in paragraph 53.30(2)“c”502.30(2)“c” are not qualifying COVID-19 grants and are not eligible for the exclusion provided in this rule, even if that program may otherwise meet the definition of “qualifying COVID-19 grant” in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5.    c.    The following is an exhaustive list of programs that have been identified by the department as qualifying COVID-19 grants, including a general description of each program’s grant recipients, that may qualify for the exclusion from Iowa net income under subrule 53.30(3)502.30(3):     (1)   Beef up Iowa program administered by the department of agriculture and land stewardship. Grant recipient is Iowa State University.     (2)   Iowa beginning farmer debt relief fund administered by the Iowa finance authority. Grant recipients include Iowa beginning farmers.    (3)   Iowa biofuels relief program administered by the economic development authority. Grant recipients include Iowa biodiesel and ethanol producers.     (4)   Iowa county fairs relief fund administered by the economic development authority. Grant recipients include Iowa county and district fairs.    (5)   Iowa COVID-19 business disruption relief program administered by the economic development authority. Grant recipients include Iowa bars, taverns, breweries, distilleries, wineries, and other similar drinking establishments.    (6)   Iowa COVID-19 targeted small business sole operator fund administered by the economic development authority. Grant recipients include Iowa targeted small businesses.     (7)   Iowa disposal assistance program administered by the department of agriculture and land stewardship. Grant recipients include Iowa pork and egg producers.    (8)   Iowa hospital COVID-19 relief fund administered by the economic development authority. Grant recipients include Iowa hospitals.     (9)   Iowa livestock producer relief fund administered by the economic development authority. Grant recipients include Iowa livestock producers.     (10)   Iowa movie theatre relief grant program administered by the economic development authority. Grant recipients include Iowa movie theaters.    (11)   Iowa nonprofit recovery fund administered by the economic development authority. Grant recipients include Iowa nonprofit organizations.    (12)   Iowa renewable fuel retail recovery program administered by the department of agriculture and land stewardship. Grant recipients include Iowa fuel retailers.    (13)   Iowa restaurant and bar relief grant program administered by the economic development authority. Grant recipients include Iowa bars, breweries, brewpubs, distilleries, wineries, and restaurants.     (14)   Iowa small business relief grant program administered by the economic development authority. Grant recipients include Iowa small businesses.    (15)   Iowa small business utility disruption prevention program administered by the economic development authority. Grant recipients include Iowa small businesses and small nonprofit organizations.    (16)   Local produce and protein program administered by the department of agriculture and land stewardship. Grant recipients include Iowa schools, early childcare centers, specialty crop producers, and food hubs.     (17)   Meat processing expansion and development program administered by the department of agriculture and land stewardship. Grant recipients include Iowa meat and poultry processing businesses and employees and Iowa livestock producers.     (18)   Pack the pantry program administered by the department of agriculture and land stewardship. Grant recipients include Iowa food pantries.    (19)   Pass the pork program administered by the department of agriculture and land stewardship. Grant recipients include Iowa food banks.     (20)   Turkey to table program administered by the department of agriculture and land stewardship. Grant recipients include Iowa food banks.     (21)   Iowa bowling center relief fund administered by the economic development authority. Grant recipients include Iowa for-profit bowling centers.    (22)   Iowa charter bus relief program administered by the economic development authority. Grant recipients include for-profit charter bus companies with a vehicle fleet registered in Iowa.    (23)   Iowa sports entertainment relief program administered by the economic development authority. Grant recipients include certain for-profit and nonprofit sports teams with a home venue located in Iowa.     (24)   Iowa fitness center relief program administered by the economic development authority. Grant recipients include for-profit, nonprofit, and local government-owned fitness centers located in Iowa.     502.30(3) Excluding qualifying COVID-19 grants from Iowa net income.      a.    Generally.A grant recipient may subtract a qualifying COVID-19 grant when calculating Iowa net income if all of the following apply:     (1)   The grant was issued as part of a qualifying COVID-19 grant program identified in paragraph 53.30(2)“c.”502.30(2)“c.”    (2)   The grant was issued on or after March 17, 2020, and on or before December 31, 2021.     (3)   The grant funds were included in the grant recipient’s net income for a tax year ending on or after March 17, 2020, but beginning before January 1, 2024. The grant may only be subtracted to the extent it is included in the grant recipient’s net income for that qualifying tax year. A qualifying COVID-19 grant that is exempt from federal income tax, and thus not included in the grant recipient’s Iowa net income, does not qualify for an additional subtraction on the grant recipient’s Iowa return.    b.    Third-party payee of grant funds.A third-party payee of qualifying COVID-19 grant funds is not eligible for this exemption from Iowa income. If the proceeds of a qualifying COVID-19 grant are paid to someone other than the grant recipient, only the grant recipient on whose behalf the grant proceeds were paid may qualify for this exemption from Iowa income.     c.    Repayment.Grant funds that were repaid to the administering agency for any reason are not eligible for this exemption from Iowa income.     d.    Reporting requirements.A grant recipient who received qualifying COVID-19 grant funds and who excludes those funds when calculating Iowa net income should retain documentation to support the claimed exclusion. A grant recipient must provide such documentation to the department if requested. The required documentation may include, but is not limited to, documentation to support that the grant recipient was issued and received the grant within the qualifying periods.       This rule is intended to implement Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5.
        [Filed 1/30/23, effective 3/29/23][Published 2/22/23]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/22/23.
    ARC 6903CRevenue Department[701]Adopted and Filed

    Rule making related to geothermal heat pump tax credit

        The Revenue Department hereby amends Chapter 304, “Adjustments to Computed Tax and Tax Credits,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 421.14, 422.12N and 422.68.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 422.12N, and 2022 Iowa Acts, House File 2317.Purpose and Summary    The primary purpose of this rule making is to implement 2022 Iowa Acts, House File 2317, section 51, which repealed the Iowa geothermal heat pump tax credit for installations occurring after December 31, 2023.    This rule making also updates the Iowa geothermal heat pump tax credit rates described in paragraph 304.47(2)“a” in response to Federal Public Law No. 117-169, Title 1, Subtitle D, Part 3, Section 13302, also known as the Inflation Reduction Act of 2022, which was enacted into law on August 16, 2022. That federal legislation, in part, increased the rate used in the calculation of the federal residential energy efficient property tax credit for geothermal heat pumps from 26 percent to 30 percent of qualifying expenditures for installations in 2022, and from 22 percent to 30 percent of qualifying expenditures for installations in 2023. The Iowa geothermal heat pump tax credit is equal to 20 percent of that federal residential energy efficient property tax credit allowed for geothermal heat pumps. By operation of Iowa’s automatic rolling conformity to the Internal Revenue Code, the Iowa geothermal heat pump tax credit rate increases automatically when the corresponding federal tax credit is increased. Thus, the Iowa geothermal heat pump tax credit has increased from 5.2 percent to 6 percent of qualifying expenditures for installations in 2022, and from 4.4 percent to 6 percent of qualifying expenditures for installations in 2023.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on November 30, 2022, as ARC 6698C. No public comments were received. One change from the Notice has been made. One reference to 2019 Iowa Acts, House File 779, and one reference to 2022 Iowa Acts, House File 2317, have been removed from the implementation sentence of rule 701—304.47(422) since both House Files have been codified.Adoption of Rule Making    This rule making was adopted by the Department on January 31, 2023.Fiscal Impact     This rule making has no known fiscal impact to the State of Iowa beyond that of the legislation it is intended to implement. The Fiscal Note for 2022 Iowa Acts, House File 2317, stated that the repeal of the Iowa geothermal heat pump tax credit on January 1, 2024, was not projected to have an identifiable fiscal impact. The Iowa geothermal heat pump tax credit rate increase for installations in 2022 and 2023 that has occurred because of Iowa’s automatic rolling conformity to the Internal Revenue Code is projected to decrease General Fund revenue by $103,000 in fiscal year 2023, by $143,000 in fiscal year 2024, by $52,000 in fiscal year 2025, and by less than $10,000 in fiscal year 2026 and fiscal year 2027. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on March 29, 2023.    The following rule-making action is adopted:

        ITEM 1.    Amend rule 701—304.47(422) as follows:

    701—304.47(422) Geothermal heat pump tax credit.  For tax years beginning on or after January 1, 2019, but before January 1, 2024, a geothermal heat pump tax credit is available for residential property located in Iowa as provided in Iowa Code section 422.12N and this rule. Information relating to Iowa geothermal tax credits available for tax years prior to January 1, 2019, can be found in prior versions of this rule. Prior versions of the Iowa Administrative Code are located here: www.legis.iowa.gov/law/administrativeRules/agencies.    304.47(1) Eligibility for the credit.  To be eligible for the credit described in this rule, all of the following requirements must be met:    a.    The geothermal heat pump must be eligible for the federal residential energy efficient property tax credit provided in Section 25D(a)(5) of the Internal Revenue Code.    b.    The taxpayer must claim the federal residential energy efficient property tax credit provided in Section 25D(a)(5) of the Internal Revenue Code.    c.    The geothermal heat pump must be installed on residential property located in Iowa and placed in service on or after January 1, 2019, but before January 1, 2024. In determining whether this requirement is met, the term “placed in service” has the same meaning as used in Section 25D of the Internal Revenue Code.    d.    The taxpayer must submit a timely and complete application to the department in accordance with subrule 42.47(4)304.47(4).    304.47(2) Calculation of the credit.      a.    The credit is equal to 20 percent of the federal residential energy efficient property tax credit allowed for geothermal heat pumps provided in Section 25D(a)(5) of the Internal Revenue Code. Thus, the Iowa credit rate equals the following percentage of the qualified geothermal heat pump property expenditures:    (1)   For property placed in service during calendar year 2019, 6 percent.    (2)   For property placed in service during calendar yearsyear 2020 through 2022or 2021, 5.2 percent.    (3)   For property placed in service during calendar year2022 or 2023, 4.46 percent.    b.    This credit is set to expireexpires on January 1, 2024, in accordance with Public Law No. 116-260, Div. EE, Title I, Subtitle C, §148. If the federal residential energy efficient property tax credit for geothermal heat pumps provided in Section 25D(a)(5) of the Internal Revenue Code is extended by federal legislation into additional tax years, the Iowa credit will continue to be available for each year in which the corresponding federal credit is available, absent action by the Iowa general assembly.    304.47(3) Tax credit award program limitations.  No more than $1 million in geothermal heat pump tax credits will be issued per calendar year. If the annual tax credit allocation cap is not reached, the remaining amount below the cap shall be made available for the following tax year in addition to, and cumulated with, the cap for that year.The credit will not be available for installations on or after January 1, 2024, even if the previous year’s cap was not met.    304.47(4) How to apply for the credit—waitlist.      a.    In general.Timely and complete applications shall be reviewed and approved on a first-come, first-served basis. Applications for the tax credit shall be submitted through the tax credit submission system, which applicants may access through the department’s website.    b.    Application deadline.The application must be filed by May 1 of the year following the year of the installation of the geothermal heat pump.    c.    Contents of the application.The application must contain the following information:    (1)   Name, address, and federal identification number of the taxpayer.    (2)   Date of installation of the geothermal heat pump. This is the same as the date the installation was placed in service by the taxpayer.     (3)   Copies of invoices or other documents showing the cost of the geothermal heat pump.    (4)   Amount of federal income tax credit claimed for the geothermal heat pump.    (5)   Amount of Iowa tax credit requested.    (6)   Any other information requested by the department in order to verify eligibility for or amount of the Iowa tax credit requested.    d.    Waitlist.    (1)   If the department receives applications for tax credits in excess of the annual aggregate award limitation, the department shall establish a waitlist for the next year’s allocation of tax credits. Valid and complete applications will be placed on the waitlist in the order they are received by the department. However, in the event the department denies an application or part of an application, and upon appeal by the taxpayer a previously denied tax credit amount is allowed, the date the appeal is closed will be used to determine the placement of the allowed tax credit amount on the waitlist. Waitlisted applications are reviewed and, if approved, funded in the order they are listed on the waitlist. Only valid applications filed by the taxpayer by May 1 of the year following the year the geothermal heat pump was installed shall be eligible for the waitlist.    (2)   If the annual aggregate cap is reached for the final year in which the federal credit is available, no applications will be carried over to the next year. Therefore, any geothermal heat pump tax credit request related to an installation completed prior to January 1, 2024, that does not receive a tax credit award by the time the 2023 aggregate award limitation is met shall expire and shall not be carried over on the waitlist to any future year.    (3)   Placement on a waitlist shall not constitute a promise binding the state that persons placed on the waitlist will actually receive the credit in a future year. The availability of a tax credit and approval of a tax credit application pursuant to this rule in a future year is contingent upon the availability of tax credits in that particular year.    304.47(5) Claiming the tax credit.      a.    Certificate issuance.If the application is approved, the department will send a letter to the taxpayer including the amount of the tax credit and providing a tax credit certificate.     b.    Claiming the tax credit.The geothermal heat pump tax credit will be claimed on Form IA 148, Tax Credits Schedule. The taxpayer must include with any Iowa tax return claiming the geothermal heat pump tax credit federal Form 5695, Residential Energy Credits.    c.    Nonrefundable.Any credit in excess of the taxpayer’s tax liability is nonrefundable.    d.    Carryforward.Any tax credit in excess of the taxpayer’s tax liability for the tax year may be credited to the taxpayer’s tax liability for the following ten years or until depleted, whichever is earlier.    e.    Nontransferable.The tax credit may not be transferred to any other person.       This rule is intended to implement Iowa Code section 422.12Nand 2019 Iowa Acts, House File 779.
        [Filed 1/31/23, effective 3/29/23][Published 2/22/23]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/22/23.
    ARC 6901CRevenue Department[701]Adopted and Filed

    Rule making related to farm to food donation tax credit

        The Revenue Department hereby amends Chapter 304, “Adjustments to Computed Tax and Tax Credits,” and Chapter 501, “Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 190B.102, 421.14, 421.17 and 422.68.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 190B and sections 422.11R and 422.33.Purpose and Summary    This rule making modifies the process for claiming the Farm to Food Donation Tax Credit. Under current Department rules and processes, taxpayers are required to receive approval from the Department prior to making a tax credit claim. Taxpayers submit their qualifying donation receipts issued by registered feeding organizations directly to the Department by January 15 each year and receive a tax credit award certificate for the verified tax credit amount. For tax years beginning on or after January 1, 2022, taxpayers who wish to claim the Farm to Food Donation Tax Credit will no longer be required to submit donation receipts issued by registered feeding organizations directly to the Department prior to making a tax credit claim. Further, the Department will no longer issue to taxpayers tax credit certificates that indicate the verified tax credit amount taxpayers may claim. Instead, this rule making permits taxpayers to make a tax credit claim directly on their Iowa income tax returns by utilizing a tax credit form provided by the Department. The Department will review tax credit claims after they are received with the Iowa income tax returns and will request substantiation of qualifying donations and donation receipts from taxpayers as appropriate.    This rule making does not remove the requirement that registered feeding organizations issue Department-approved donation receipts to donors or the requirement that registered feeding organizations report donation information to the Department by January 15 each year. However, it does modify the reporting requirements to permit registered feeding organizations to provide information through the Department’s modernized tax administration system, GovConnectIowa.    This rule making also strikes language that allows a taxpayer to transfer a Farm to Food Donation Tax Credit to the taxpayer’s estate or trust upon death. The Iowa Code does not provide that the Farm to Food Donation Tax Credit is transferable.    Finally, this rule making strikes and replaces rule 701—501.45(422,85GA,SF452) so that the process for claiming the Farm to Food Donation Tax Credit applicable to corporate income taxpayers mirrors the process described in rule 701—304.51(422,85GA,SF452).Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on November 30, 2022, as ARC 6699C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Department on January 4, 2023.Fiscal Impact    This rule making has no known fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on March 29, 2023.    The following rule-making actions are adopted:

        ITEM 1.    Amend rule 701—304.51(422,85GA,SF452) as follows:

    701—304.51(422,85GA,SF452) From farm to food donation tax credit.  Effective for tax years beginning on or after January 1, 2014, aA taxpayer that donates a food commodity that the taxpayer produces may claim a tax credit for Iowa individual income tax. The credit is equal to 15 percent of the value of the commodities donated during the tax year for which the credit is claimed or $5,000, whichever is less. The value of the commodities shall be determined in the same manner as a charitable contribution of food for federal tax purposes under Section 170(e)(3)(C) of the Internal Revenue Code.304.51(1)To qualify for the tax credit, the taxpayer (1) must produce the donated food commodity; (2) must transfer title to the donated food commodity to an Iowa food bank or Iowa emergency feeding organization recognized by the department; and (3) shall not receive remuneration for the transfer. The donated food commodity cannot be damaged or out-of-condition and declared to be unfit for human consumption by a federal, state, or local health official. A food commodity that meets the requirements for donated foods pursuant to the federal Emergency Food Assistance Program satisfies this requirement.304.51(2)To be recognized by the department, a food bank or emergency feeding organization must either be a recognized affiliate of one of the eight partner food banks with the Iowa Food Bank Association or must register with the department. To register with the department, the organization must meet the definition of “emergency feeding organization,” “food bank,” or “food pantry” as defined by the department of human services in 441—66.1(234). The department of revenue will make registration forms available on the department’s website.A food bank or emergency feeding organization that seeks recognition by the department shall register with the department in the form and manner prescribed by the department. The department will maintain a list of recognized organizations on the department’s website.304.51(3)Food banks and emergency feeding organizations that receive eligible donations shall be required to issue receipts in a format prescribed by the department for all donations received and must annually submit to the department a receipt log of all the receipts issued during the taxcalendar year. The receipt log must be submitted in the form of a spreadsheet with column specifications as provided by the department. Receipt logs showing the donations for the previous calendar year must be delivered electronically or mailed to the department postmarked by January 15 of each year. If a receipt for a taxpayer’s claim is not provided by the organization, the taxpayer’s claim will be denied.304.51(4)To claim the creditfor tax years beginning before January 1, 2022, a taxpayer shall submit to the department the original receipts that were issued by the food bank or emergency feeding organization. The receipt must include quantity information completed by the food bank or emergency feeding organization, taxpayer information, and a donation valuation consistent with Section 170(e)(3)(C) of the Internal Revenue Code completed by the taxpayer. Claims must be postmarked on or before January 15 of the year following the tax year for which the claim is requested. Once the department verifies the amount of the tax credit, a letter will be sent to the taxpayer providing the amount of the tax credit and a tax credit certificate number.304.51(5) To claim the credit for tax years beginning on or after January 1, 2022, a taxpayer shall complete the required tax credit form provided by the department and shall submit the form with the taxpayer’s income tax return for the tax year the taxpayer made the qualifying donations. The required tax credit form shall be available on the department’s website.304.51(6)Any credit in excess of the tax liability for the tax year may be credited to the tax liability for the following five years or until used, whichever is earlier. The tax credit shall not be carried back to a tax year prior to the year in which the owner redeems the credit. The credit is not transferable to any other person other than the taxpayer’s estate or trust upon the death of the taxpayer.304.51(7)If the producer is a partnership, limited liability company, S corporation, estate or trust electing to have the income taxed directly to the individual, an individual may claim the credit. The amount claimed by an individual must be based on the individual’s pro rata share of the individual’s earnings of the partnership, limited liability company, S corporation, or estate or trust.       This rule is intended to implement 2013 Iowa Acts, Senate File 452, division XVIIIIowa Code chapter 190B, subchapter I, and section 422.11R.

        ITEM 2.    Rescind rule 701—501.45(422,85GA,SF452) and adopt the following new rule in lieu thereof:

    701—501.45(422) From farm to food donation tax credit.  A taxpayer that donates a food commodity that the taxpayer produces may claim a tax credit against Iowa corporation income tax according to the same requirements, conditions, and limitations as described in rule 701—304.51(422).This rule is intended to implement Iowa Code chapter 190B, subchapter I, and section 422.33.
        [Filed 1/30/23, effective 3/29/23][Published 2/22/23]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/22/23.
    ARC 6893CWorkforce Development Department[871]Adopted and Filed

    Rule making related to unemployment insurance

        The Director of the Workforce Development Department hereby amends Chapter 23, “Employer’s Contribution and Charges,” Chapter 24, “Claims and Benefits,” and Chapter 26, “Contested Case Proceedings,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 96.11.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 96 as amended by 2022 Iowa Acts, House File 2355.Purpose and Summary    These amendments align with the changes illustrated in 2022 Iowa Acts, House File 2355. In particular, the amendments prevent employers from being charged for an overpayment in certain situations, update guidelines for voluntary shared work, update the maximum number of benefit weeks, define “misconduct” in relation to unemployment benefits eligibility, update salary guidelines for unemployed job seekers, and provide for claimant appeals to bypass the Employment Appeal Board (EAB).Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on October 19, 2022, as ARC 6606C.     The Department received public comments from the EAB, Iowa Legal Aid (ILA), and the American Civil Liberties Union (ACLU). The Department also received public comment from Disability Rights Iowa (DRI). Though the latter communication was received after the public comment deadline, the Department nevertheless reviewed and considered it.    The EAB commented on matters involving appeals and misconduct.    The joint suggestions from ILA and ACLU focused on potential broad interpretations of the updated misconduct definition and the Department’s fact-finding process. The comments from DRI largely mirrored those of ILA and ACLU.    The Department incorporated suggestions received via public comment, specifically those from EAB regarding appeals and misconduct. Changes were made to Items 4 and 11.Adoption of Rule Making    This rule making was adopted by the Director of the Department on January 24, 2023.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on March 29, 2023.    The following rule-making actions are adopted:

        ITEM 1.    Adopt the following new subrule 23.44(4):    23.44(4)   If the department determines that an overpayment has been made, the charge for the overpayment against the employer’s account shall be removed and the account shall be credited with an amount equal to the overpayment from the unemployment compensation trust fund, and this credit shall include both contributory and reimbursable employers. The employer shall not be relieved of charges if benefits are paid because the employer or an agent of the employer failed to respond timely or adequately to the department’s request for information relating to the payment of benefits unless the department determines that an employer’s failure to respond timely or adequately was due to insufficient notification from the department, in which case the employer’s account shall not be charged for the overpayment.

        ITEM 2.    Amend subparagraph 24.2(1)"c" as follows:    (5)   Group “7” claimants are workers who are employed on a reduced workweek with an employer who is under voluntary shared work contract approved by the department. This group pertains only to those individuals who worked full-timefull- or part-time and will again work full-timefull- or part-time if the individuals’ employment, although temporarily suspended, has not been terminated. Once the contract expires, claimants in this group are reviewed for placement in group “3,” “4,” “5,” or “6.”

        ITEM 3.    Amend subrule 24.29(1) as follows:    24.29(1)   Whenever an employer at a factory, establishment, or other premises goes out of business at which the individual was last employed and is laid off, the individual’s account is credited with one-half, instead of one-third, of the wages for insured work paid to the individual during the individual’s base period, which may increase the maximum benefit amount up to 3926 times the weekly benefit amount or one-half of the total base period wages, whichever is less. This rule also applies retroactively for monetary redetermination purposes during the current benefit year of the individual who is temporarily laid off with the expectation of returning to work once the temporary or seasonal factors have been eliminated and is prevented from returning to work because of the going out of business of the employer within the same benefit year of the individual. This rule also applies to an individual who works in temporary employment between the layoff from the business closing employer and the Claim for Benefitsclaim for benefits. For the purposes of this rule, temporary employment means employment of a duration not to exceed four weeks.

        ITEM 4.    Rescind paragraph 24.32(1)"a" and adopt the following new paragraph in lieu thereof:    a.    For the purposes of this rule, “misconduct” is defined as a deliberate act or omission by an employee that constitutes a material breach of the duties and obligations arising out of the employee’s contract of employment. Misconduct is limited to conduct evincing such willful or wanton disregard of an employer’s interest as is found in deliberate violation or disregard of standards of behavior which the employer has the right to expect of employees, or in carelessness or negligence of such degree of recurrence as to manifest equal culpability, wrongful intent or evil design, or to show an intentional and substantial disregard of the employer’s interests or of the employee’s duties and obligations to the employer. Misconduct by an individual includes but is not limited to all of the following:    (1)   Willful and deliberate falsification of the individual’s employment application.    (2)   Knowing violation of a reasonable and uniformly enforced rule of an employer.    (3)   Intentional damage of an employer’s property.    (4)   Consumption of alcohol, illegal or nonprescribed prescription drugs, or an impairing substance in a manner not directed by the manufacturer, or a combination of such substances, on the employer’s premises in violation of the employer’s employment policies.    (5)   Reporting to work under the influence of alcohol, illegal or nonprescribed prescription drugs, or an impairing substance in an off-label manner, or a combination of such substances, on the employer’s premises in violation of the employer’s employment policies, unless the individual is compelled to work by the employer outside of scheduled or on-call working hours.    (6)   Conduct that substantially and unjustifiably endangers the personal safety of coworkers or the general public.    (7)   Incarceration for an act for which one could reasonably expect to be incarcerated that results in missing work.    (8)   Incarceration as a result of a misdemeanor or felony conviction by a court of competent jurisdiction.    (9)   Excessive unexcused tardiness or absenteeism.    (10)   Falsification of any work-related report, task, or job that could expose the employer or coworkers to legal liability or sanction for violation of health or safety laws.    (11)   Failure to maintain any license, registration, or certification that is reasonably required by the employer or by law, or that is a functional requirement to perform the individual’s regular job duties, unless the failure is not within the control of the individual.    (12)   Conduct that is libelous or slanderous toward an employer or an employee of the employer if such conduct is not protected under state or federal law.    (13)   Theft of an employer’s or coworker’s funds or property.    (14)   Intentional misrepresentation of time worked or work carried out that results in the individual receiving unearned wages or unearned benefits.

        ITEM 5.    Amend subparagraph 24.46(5)"c" as follows:    (1)   If the individual’s prospects for obtaining work within a reasonably short period are “good,” the individual is required to actively seek, apply for or accept, suitable work in which, all other considerations being reasonably equal, the gross average weekly wage equals or exceeds 6560 percent of the individual’s average weekly wage from the highest earnings quarter of the individual’s base period.

        ITEM 6.    Amend rule 871—24.58(96), introductory paragraph, as follows:

    871—24.58(96) Voluntary shared work.  The voluntary shared work program provides that employers facing a temporary shortfall may reduce the work hours of employees in an affected unit and those employees will receive a portion of their regular unemployment insurance benefits. The program is designed to reduce unemployment and stabilize the workforce by allowing certain employees to collect unemployment insurance benefits if the employees share the work remaining after a reduction in the total number of hours of work and a corresponding reduction in wages.The reduction in work hours for employees is based on a work week comprised of 40 or fewer hours, and not a work week exceeding 40 hours. Additional information may be obtained by contacting the voluntary shared work coordinator. The employer may apply to participate in the program by completing a shared work plan application, which must be approved by the department. The employer shall submit the plan to the department 30 days prior to the proposed implementation date. The employer will administer the program in cooperation with the department. Participating employees will complete the employee information form and claim for benefits and return them to the employer, who will submit them to the department. Administrative penalties in force during the duration of the plan will make an employee ineligible for the program. Child support obligations will be deducted and unemployment insurance overpayments will be offset as they are for regular unemployment insurance benefits.

        ITEM 7.    Rescind subrule 24.58(4) and adopt the following new subrule in lieu thereof:    24.58(4)   Approval of a plan may be denied or revoked at the discretion of the department if the plan and its actual operation do not meet all the requirements stated in Iowa Code section 96.40. Reasons for denial or revocation of a plan include, but are not limited to:    a.    The provision of false or misleading information to the department;    b.    Unequal treatment of any employee in the affected unit;    c.    A reduction in fringe benefits resulting from participation in the program;    d.    An employer, while participating in the shared work unemployment compensation program, laying off any employee, whether the employee is employed within an affected unit or not; or    e.    Failure by the employer to monitor and administer the program.

        ITEM 8.    Amend paragraph 24.58(7)"a" as follows:    a.    For each week that a voluntary shared work employer has an active plan, the voluntary shared work employer shall submit a certification of hours worked by employees covered by an employer’s approved work share plan in the form or manner directed by the department for each employee covered by the employer’s approved work share plan.This includes a part-time employee provided that the employee meets all other requirements.

        ITEM 9.    Rescind rule 871—26.2(17A,96) and adopt the following new rule in lieu thereof:

    871—26.2(17A,96) Definitions.  Terms defined in the Iowa employment security law and the Iowa administrative procedure Act and which are used in these rules shall have the same meaning as provided by such laws. In addition, the following words and terms when used in this chapter shall have the following meanings, unless the context clearly indicates otherwise:        "Contested case" means a proceeding defined in Iowa Code section 17A.2(5) and includes any matter defined as a no factual dispute contested case in Iowa Code section 17A.10A. It specifically includes any appeal from a determination of a representative of the department or any appeal or request for a hearing by an employer or employing unit from an experience rating, charge determination or other decision affecting its liability. Except as provided in subrule 26.17(5), a final decision of the employment appeal board of the department of inspections and appeals shall constitute final agency action. A presiding officer’s decision shall be the final decision of the department if there is no appeal therefrom to the employment appeal board of the department of inspections and appeals or if the appeal is made directly to the district court in lieu of filing an appeal with the employment appeal board of the department of inspections and appeals.        "Party" means each person or agency named or admitted as a party or properly seeking and entitled as of right to be admitted as a party.        "Presiding officer" means an administrative law judge employed by the department of workforce development.

        ITEM 10.    Amend subrule 26.13(7) as follows:    26.13(7)   If the subpoena is granted over objection, the aggrieved party may, in accordance with Iowa Code section 17A.13(1), petition the district court for review of the action before proceeding further. The aggrieved party must promptly notify the presiding officer that a petition for judicial review of the subpoena order will be filed immediately so the contested case may be postponed until the court has issued its ruling. Nothing herein shall preclude an aggrieved party from including the granting or denial of a subpoena as grounds for appeal of the presiding officer’s decision in the contested case to the employment appeal board of the department of inspections and appealsor directly to the district court.

        ITEM 11.    Adopt the following new subrule 26.17(6):    26.17(6)   In a claimant benefit contested case, final agency action shall be a presiding officer’s decision, if no aggrieved party appealed the decision to the employment appeal board within 15 days, or the decision of the employment appeal board, if the aggrieved party appealed the decision to that tribunal.    a.    Once final agency action has been established, any party who is aggrieved or adversely affected by the agency action has 30 days to file a petition for judicial review with the district court.    b.    Any party in interest may file with the presiding officer a written application for rehearing within 20 days after the date that the decision becomes final as a result of the failure to appeal the decision to the employment board. Applications for rehearing filed before this date will be forwarded to the employment appeal board as appeals to that tribunal. A request for rehearing is deemed denied unless the presiding officer grants the rehearing request within 20 days after its filing.    c.    Any party in interest may file a petition for judicial review within 30 days after the denial of the request for rehearing.    [Filed 1/24/23, effective 3/29/23][Published 2/22/23]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/22/23.

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