Iowa Legislature: Bulletin_11_15

Bulletin 11-15-2023

Front matter not included

ARC 7113CManagement Department[541]Notice of Intended Action

Proposing rulemaking related to organization and operation and providing an opportunity for public comment

The Department of Management hereby proposes to rescind Chapter 1, “Organization and Operation,” Iowa Administrative Code, and to adopt a new chapter with the same title.Legal Authority for Rulemaking This rulemaking is proposed under the authority provided in Iowa Code sections 8.6 and 25.1.State or Federal Law Implemented This rulemaking implements, in whole or in part, Iowa Code chapter 8.Purpose and Summary The proposed chapter describes the organization of the Department for the public, including coordination of policy planning, reports, program development, and interagency programs.Fiscal Impact This rulemaking has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rulemaking, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rulemaking 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 541—1.3(8). Public Comment Any interested person may submit written comments concerning this proposed rulemaking. Written comments in response to this rulemaking must be received by the Department no later than 4:30 p.m. on December 6, 2023. Comments should be directed to: Gloria Van Rees Iowa Department of Management State Capitol, Room 13 1007 East Grand Avenue Des Moines, Iowa 50319 Email: gloria.vanrees@iowa.gov Public Hearing Public hearings at which persons may present their views orally or in writing will be held as follows: December 6, 2023 1 to 2 p.m. State Capitol, Room G14 1007 East Grand Avenue Des Moines, Iowa December 8, 2023 1 to 2 p.m. State Capitol, Room G14 1007 East Grand Avenue Des Moines, Iowa Persons who wish to make oral comments at the public hearings may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking. Any persons who intend to attend the public hearings 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 rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking 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 rulemaking action is proposed:

ITEM 1. Rescind 541—Chapter 1 and adopt the following new chapter in lieu thereof: CHAPTER 1ORGANIZATION AND OPERATION

541—1.1(8) Purpose. This chapter describes the organization and operation of the department of management (department), including the coordination of policy planning, management of interagency programs, economic reports and program development.

541—1.2(8) Scope of the rules. The rules for the department are promulgated under Iowa Code chapter 8 and apply to all matters before the department. No rule, in any way, relieves a person affected by or subject to these rules, or any person affected by or subject to the rules promulgated by the various divisions of the department, from any duty under the laws of this state.

541—1.3(8) Waiver. The purpose of these rules is to facilitate the business before the department and to promote a just resolution of controversies. Consistent with this purpose, the application of any of these rules, unless otherwise provided for by law, may be waived by the department to prevent undue hardship to a party, to a departmental proceeding, or to a person transacting business with the department. The reasons for granting a waiver of an administrative rule stated in writing will be a part of the record of the proceeding or a part of the departmental file in other matters.

541—1.4(8) Duties of the department. The department plans, develops, and recommends policy decisions for management of state government; administers local budget laws (cities, counties, and schools); oversees and ensures compliance with affirmative action; implements policies through coordination and budget processes; and monitors and evaluates the consistent, efficient, and effective operation of state government. The department consists of budgeting, planning, and early childhood operations and the following agencies or boards: state appeal board, city finance committee, county finance committee, and early childhood Iowa state board.

541—1.5(8) Definitions. "City budget" means the budget adopted by city officials that incorporates specified requirements as stated in Iowa Code section 384.16. "Contract compliance director" means the individual designated to oversee and impose sanctions in connection with state programs emphasizing equal opportunity through affirmative action, contract compliance, policies, and procurement set-aside requirements. "County budget" means the budget adopted by the board of supervisors pursuant to Iowa Code chapter 331. "Department" means the department of management. "Director" means the director of the department of management as appointed by the governor and subject to senate confirmation. 1.5(1) State appeal board—fees. The state appeal board considers the protests of local government budgets, as well as all general and tort claims against the state, as interpreted by the three members: treasurer of state, auditor of state and director of the department of management. Department of management staff implement proper procedures as directed by the state appeal board as assigned by Iowa Code chapter 24. The processing fee for filing a general claim with the state appeal board is $5, which is billed and paid quarterly by the state agency that incurred the liability of the claim. This fee is not reimbursable from the vendor to the state agency. 1.5(2) City finance committee. The city finance committee promulgates rules relating to city budget amendments, establishes guidelines for the capital improvement program, reviews and comments on city budgets and conducts studies of municipal revenues and expenditures as specified in Iowa Code section 384.13. 1.5(3) County finance committee. The county finance committee establishes guidelines for program budgeting and accounting, reviews and comments on county budgets, and conducts studies of county revenues and expenditures. In addition, the committee performs other duties as assigned by law pursuant to Iowa Code section 333A.4.

541—1.6(8) Central office and communications. Correspondence and communications with the department, state board of appeals, county finance committee, or city finance committee are to be addressed or directed to the department’s office located at Department of Management, State Capitol Room 13, 1007 East Grand Avenue, Des Moines, Iowa 50319-0015; telephone 515.281.3322. These rules are intended to implement Iowa Code sections 8.6 and 25.1.ARC 7114CManagement Department[541]Notice of Intended Action

Proposing rulemaking related to petitions for rulemaking and providing an opportunity for public comment

The Department of Management hereby proposes to rescind Chapter 5, “Petitions for Rule Making,” and to adopt a new Chapter 5, “Petitions for Rulemaking,” Iowa Administrative Code.Legal Authority for Rulemaking This rulemaking is proposed under the authority provided in Iowa Code section 8.6.State or Federal Law Implemented This rulemaking implements, in whole or in part, Iowa Code chapter 8.Purpose and Summary The proposed chapter clarifies the rulemaking procedure for the Department.Fiscal Impact This rulemaking has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rulemaking, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rulemaking 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 541—1.3(8). Public Comment Any interested person may submit written comments concerning this proposed rulemaking. Written comments in response to this rulemaking must be received by the Department no later than 4:30 p.m. on December 6, 2023. Comments should be directed to: Gloria Van Rees Iowa Department of Management State Capitol, Room 13 1007 East Grand Avenue Des Moines, Iowa 50319 Email: gloria.vanrees@iowa.gov Public Hearing Public hearings at which persons may present their views orally or in writing will be held as follows: December 6, 2023 1 to 2 p.m. State Capitol, Room G14 1007 East Grand Avenue Des Moines, Iowa December 8, 2023 1 to 2 p.m. State Capitol, Room G14 1007 East Grand Avenue Des Moines, Iowa Persons who wish to make oral comments at the public hearings may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking. Any persons who intend to attend the public hearings 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 rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking 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 rulemaking action is proposed:

ITEM 1. Rescind 541—Chapter 5 and adopt the following new chapter in lieu thereof: CHAPTER 5PETITIONS FOR RULEMAKING The department of management hereby adopts, with the following exceptions and amendments, the Uniform Rules on Agency Procedure relating to petitions for rulemaking, which are published on the Iowa general assembly’s website at www.legis.iowa.gov/DOCS/Rules/Current/UniformRules.pdf.

541—5.1(17A) Petition for rulemaking. In lieu of “(designate office)”, insert “State Capitol Room 13, 1007 East Grand Avenue, Des Moines, Iowa 50319-0015”. In lieu of “(AGENCY NAME)”, the heading on the petition form should read:BEFORE THE DEPARTMENT OF MANAGEMENT

541—5.3(17A) Inquiries. In lieu of “(designate official by full title and address)”, insert “Director, Department of Management, State Capitol Room 13, 1007 East Grand Avenue, Des Moines, Iowa 50319-0015”. These rules are intended to implement Iowa Code section 8.6 and chapter 17A.ARC 7115CManagement Department[541]Notice of Intended Action

Proposing rulemaking related to declaratory orders and providing an opportunity for public comment

The Department of Management hereby proposes to rescind Chapter 6, “Declaratory Orders,” Iowa Administrative Code, and to adopt a new chapter with the same title.Legal Authority for Rulemaking This rulemaking is proposed under the authority provided in Iowa Code section 17A.9.State or Federal Law Implemented This rulemaking implements, in whole or in part, Iowa Code chapter 17A.Purpose and Summary This proposed chapter clarifies uniform rules and agency procedure in regard to declaratory orders.Fiscal Impact This rulemaking has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rulemaking, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rulemaking 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 541—1.3(8). Public Comment Any interested person may submit written comments concerning this proposed rulemaking. Written comments in response to this rulemaking must be received by the Department no later than 4:30 p.m. on December 6, 2023. Comments should be directed to: Gloria Van Rees Iowa Department of Management State Capitol, Room 13 1007 East Grand Avenue Des Moines, Iowa 50319 Email: gloria.vanrees@iowa.gov Public Hearing Public hearings at which persons may present their views orally or in writing will be held as follows: December 6, 2023 1 to 2 p.m. State Capitol, Room G14 1007 East Grand Avenue Des Moines, Iowa December 8, 2023 1 to 2 p.m. State Capitol, Room G14 1007 East Grand Avenue Des Moines, Iowa Persons who wish to make oral comments at the public hearings may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking. Any persons who intend to attend the public hearings 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 rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking 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 rulemaking action is proposed:

ITEM 1. Rescind 541—Chapter 6 and adopt the following new chapter in lieu thereof: CHAPTER 6DECLARATORY ORDERS The department of management hereby adopts, with the following exceptions and amendments, the Uniform Rules on Agency Procedure relating to declaratory orders, which are published on the Iowa general assembly’s website at www.legis.iowa.gov/DOCS/Rules/Current/UniformRules.pdf.

541—6.1(17A) Petition for declaratory order. In lieu of “(designate agency)”, insert “department”. In lieu of “(designate office)”, insert “the Director’s Office, Department of Management, State Capitol Room 13, 1007 East Grand Avenue, Des Moines, Iowa 50319-0015”. In lieu of “(AGENCY NAME)”, the heading on the petition form should read:BEFORE THE DEPARTMENT OF MANAGEMENT

541—6.2(17A) Notice of petition. In lieu of “___ days (15 or less)”, insert “15 days”. In lieu of “(designate agency)”, insert “the department”.

541—6.3(17A) Intervention. 6.3(1) In lieu of “within ___ days”, insert “within 15 days”. Strike “(after time for notice under X.2(17A)”. In lieu of “X.8(17A))”, insert “6.8(17A)”. 6.3(2) In lieu of “(designate agency)”, insert “the department”. 6.3(3) In lieu of “(designate office)”, insert “the Director’s Office, Department of Management, State Capitol Room 13, 1007 East Grand Avenue, Des Moines, Iowa 50319-0015”. In lieu of “(designate agency)”, insert “department”. In lieu of “(AGENCY NAME)”, the heading on the petition form should read:BEFORE THE DEPARTMENT OF MANAGEMENT

541—6.4(17A) Briefs. In lieu of “(designate agency)”, insert “department”.

541—6.5(17A) Inquiries. In lieu of “(designate official by full title and address)”, insert “the Director, Department of Management, State Capitol Room 13, 1007 East Grand Avenue, Des Moines, Iowa 50319-0015”.

541—6.6(17A) Service and filing of petitions and other papers. 6.6(2) In lieu of “(specify office and address)”, insert “the Director’s Office, Department of Management, State Capitol Room 13, 1007 East Grand Avenue, Des Moines, Iowa 50319-0015”. In lieu of “(agency name)”, insert “department”. 6.6(3) In lieu of “(uniform rule on contested cases X.12(17A))”, insert “rule 481—10.12(17A)”.

541—6.7(17A) Consideration. In lieu of “(designate agency)”, insert “department”.

541—6.8(17A) Action on petition. 6.8(1) In lieu of “(designate agency head)”, insert “director”. 6.8(2) In lieu of “(contested case uniform rule X.2(17A))”, insert “rule 481—10.1(10A)”.

541—6.9(17A) Refusal to issue order. 6.9(1) In lieu of “(designate agency)”, insert “department”.

541—6.12(17A) Effect of a declaratory order. In lieu of “(designate agency)”, insert “department”. These rules are intended to implement Iowa Code section 17A.9.ARC 7116CManagement Department[541]Notice of Intended Action

Proposing rulemaking related to agency procedure for rulemaking and providing an opportunity for public comment

The Department of Management hereby proposes to rescind Chapter 7, “Agency Procedure for Rule Making,” and to adopt a new Chapter 7, “Agency Procedure for Rulemaking,” Iowa Administrative Code.Legal Authority for Rulemaking This rulemaking is proposed under the authority provided in Iowa Code chapter 17A.State or Federal Law Implemented This rulemaking implements, in whole or in part, Iowa Code chapter 17A and section 25B.6.Purpose and Summary The proposed chapter clarifies uniform rules and agency procedure in regard to rulemaking.Fiscal Impact This rulemaking has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rulemaking, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rulemaking 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 541—1.3(8). Public Comment Any interested person may submit written comments concerning this proposed rulemaking. Written comments in response to this rulemaking must be received by the Department no later than 4:30 p.m. on December 6, 2023. Comments should be directed to: Gloria Van Rees Iowa Department of Management State Capitol, Room 13 1007 East Grand Avenue Des Moines, Iowa 50319 Email: gloria.vanrees@iowa.gov Public Hearing Public hearings at which persons may present their views orally or in writing will be held as follows: December 6, 2023 1 to 2 p.m. State Capitol, Room G14 1007 East Grand Avenue Des Moines, Iowa December 8, 2023 1 to 2 p.m. State Capitol, Room G14 1007 East Grand Avenue Des Moines, Iowa Persons who wish to make oral comments at the public hearings may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking. Any persons who intend to attend the public hearings 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 rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking 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 rulemaking action is proposed:

ITEM 1. Rescind 541—Chapter 7 and adopt the following new chapter in lieu thereof: CHAPTER 7AGENCY PROCEDURE FOR RULEMAKING The department of management hereby adopts, with the following exceptions and amendments, the Uniform Rules on Agency Procedure relating to agency procedure for rulemaking, which are published on the Iowa general assembly’s website at www.legis.iowa.gov/DOCS/Rules/Current/UniformRules.pdf.

541—7.5(17A) Public participation. 7.5(1) Written comments. In lieu of the words “(identify office and address)”, insert “Department of Management, State Capitol Room 13, 1007 East Grand Avenue, Des Moines, Iowa 50319-0015”. 7.5(5) Accessibility. In lieu of the words “(designate office and telephone number)”, insert “the department of management at 515.281.3322”.

541—7.6(17A) Regulatory analysis. 7.6(2) Mailing list. In lieu of the words “(designate office)”, insert “Department of Management, State Capitol Room 13, 1007 East Grand Avenue, Des Moines, Iowa 50319-0015”.

541—7.10(17A) Exemptions from public rulemaking procedures. 7.10(1) Omission of notice and comment. The department may adopt a rule without publishing advance Notice of Intended Action in the Iowa Administrative Bulletin and without providing for written or oral public submissions prior to its adoption pursuant to Iowa Code section 17A.4(3)“a” when the statute so provides or with the approval of the administrative rules review committee. 7.10(2) Public proceedings on rules adopted without them. The department may, at any time, commence a standard rulemaking proceeding for the adoption of a rule that is identical or similar to a rule it adopts in reliance upon subrule 7.10(1). After a standard rulemaking proceeding commenced pursuant to this subrule, the department may either readopt the rule it adopted without benefit of all usual procedures on the basis of subrule 7.10(1), or may take any other lawful action, including the amendment or repeal of the rule in question, with whatever further proceedings are appropriate.

541—7.11(17A) Concise statement of reasons. 7.11(1) General. In lieu of the words “(specify office and address)”, insert “Department of Management, State Capitol Room 13, 1007 East Grand Avenue, Des Moines, Iowa 50319-0015”. These rules are intended to implement Iowa Code chapter 17A and section 25B.6.ARC 7117CManagement Department[541]Notice of Intended Action

Proposing rulemaking related to public records and fair information practices and providing an opportunity for public comment

The Department of Management hereby proposes to rescind Chapter 8, “Public Records and Fair Information Practices,” Iowa Administrative Code, and to adopt a new chapter with the same title.Legal Authority for Rulemaking This rulemaking is proposed under the authority provided in Iowa Code section 22.11.State or Federal Law Implemented This rulemaking implements, in whole or in part, Iowa Code section 22.11.Purpose and Summary The proposed Chapter 8 clarifies uniform rules and agency procedure in regard to public records and fair information practices.Fiscal Impact This rulemaking has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rulemaking, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rulemaking 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 541—1.3(8). Public Comment Any interested person may submit written comments concerning this proposed rulemaking. Written comments in response to this rulemaking must be received by the Department no later than 4:30 p.m. on December 5, 2023. Comments should be directed to: Gloria Van Rees Iowa Department of Management State Capitol, Room 13 1007 East Grand Avenue Des Moines, Iowa 50319 Email: gloria.vanrees@iowa.gov Public Hearing Public hearings at which persons may present their views orally or in writing will be held as follows: December 6, 2023 1 to 2 p.m. State Capitol, Room G14 1007 East Grand Avenue Des Moines, Iowa December 8, 2023 1 to 2 p.m. State Capitol, Room G14 1007 East Grand Avenue Des Moines, Iowa Persons who wish to make oral comments at the public hearings may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking. Any persons who intend to attend the public hearings 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 rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking 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 rulemaking action is proposed:

ITEM 1. Rescind 541—Chapter 8 and adopt the following new chapter in lieu thereof: CHAPTER 8PUBLIC RECORDS AND FAIR INFORMATION PRACTICES The department of management hereby adopts, with the following exceptions and amendments, the Uniform Rules on Agency Procedure relating to public records and fair information practices, which are published on the Iowa general assembly’s website at www.legis.iowa.gov/DOCS/Rules/Current/UniformRules.pdf.

541—8.1(17A,22) Definitions. As used in this chapter: "Agency." In lieu of “(official or body issuing these rules)”, insert “department of management”. "Nonincidental retrieval or supervisory service" means services provided by the department’s staff (or staff from the department of administrative services) to persons requesting access to public documents, which exceed 20 hours in duration. "Nonproprietary records" means those records that are in the possession of the department but that are generated for the purposes of other units of government. "Public record" means a record as defined in Iowa Code section 22.1. A public record includes both confidential and open records.

541—8.2(17A,22) Public record retention and access. 8.2(1) Record policy. The department of management is committed to ensuring that the workings of the department are open to public inspection. To that end, a public record in the custody of the department will be maintained and archived through a standard record retention policy, with public access to be given in full compliance with applicable provisions of law.The record retention program will provide economy and efficiency in the creation, organization, administrative use, maintenance, security, availability, and disposition of public records to ensure that a needless record will not be created or retained, and a valuable record will be preserved, as provided under Iowa law. The department will preserve the integrity of public records, and reply to all open records requests in a timely, responsive, and efficient manner in full compliance with applicable provisions of law. 8.2(2) Record retention requirements. Every record made or received under the authority of, or coming into the custody, control, or possession of, department of management personnel, in connection with the transaction of official business of state government, and that has sufficient legal, fiscal, administrative, or historical value will be retained in accordance with Iowa law. The director of the department of management will designate a records retention officer to oversee the department’s record retention program and to serve as the primary point of contact with the state archives.The department will follow the records retention protocol that is established by the Iowa records retention commission. The department of management records retention officer will select retention mechanisms that are designed to implement the commission protocol and arrange for training for the department’s personnel on each selected mechanism. 8.2(3) Confidential records. Confidential records may be withheld, and confidential information within an otherwise open record may be redacted, prior to a record’s release for public examination and copying. If a confidential record is withheld from examination and copying, or confidential information within an otherwise open record is redacted, the department of management will identify the document(s) and cite the applicable provision of law that supports the decision to withhold the confidential information from public examination.

541—8.3(17A,22) Requests for access to records. 8.3(1) Open records. Open records will be available to the public during customary office hours, which are 8 a.m. to 4:30 p.m., Monday through Friday (except holidays). Immediate access to records may be affected by a good-faith effort to verify the scope of the records requested and to determine whether any of the records or information contained therein is confidential in nature.In the event circumstances prolong a timely response, the department will notify the requester at once and attempt an alternate arrangement to provide the response in a manner satisfactory to the requester. For nonproprietary records, the department is only a repository and is not the “lawful custodian” of the records under the meaning of Iowa Code chapter 22. Nonproprietary records will be provided only to the unit of state government that is the lawful custodian of such records under Iowa Code chapter 22. 8.3(2) Requesting records. Requests for access to a public record may be made by mail, electronically, by telephone or in person. A request for access to a public record should be made to the director, who will be responsible for implementing the requirements of public records laws inside the department. a. A person who submits a request for public records will provide the person’s name, address, and telephone number in order to facilitate effective communication with the department regarding the request. b. Mail requests will be addressed to: Director, Department of Management, State Capitol Room 13, 1007 East Grand Avenue, Des Moines, Iowa 50319-0015. c. Electronic requests will include the term “Public Records Request” in the subject field and should be sent to the director’s email address as found on the department’s website at dom.ia.gov. d. Telephone requests should be made to 515.281.3322. e. A person who submits a request orally will receive a verification letter or electronic communication, whichever is preferred by the requester, from the department verifying the specific scope of the search requested. The verification letter or electronic communication will be transmitted before the request for documents is processed.In the event that a request cannot be fulfilled within a reasonable time, the requester will be so notified and an estimated completion date will be provided. 8.3(3) Record identification. Requests for access to a public record will identify the particular public record to which access is requested by name or description in order to identify efficiently the desired record. a. The requester’s description should specify: (1) The particular type of record sought. (2) The particular time period to be searched by start and end date. (3) The author or recipient, or both, of the record requested, to the extent possible. (4) To the extent possible, the particular records medium to be searched (e.g., letters, memoranda, reports, recordings). (5) Any other pertinent information that will assist the department in locating the record requested. b. The requester will specify if the request applies to a record stored in an electronic form and shall list the search terms to be used. 8.3(4) Record search. Department of management personnel should direct public records requests to the director for docketing and processing. Before a search is conducted, the director may contact the requester if there are questions concerning the scope of the record request. The department of management will employ a staff member who is proficient in conducting electronic records searches within the department. This individual will be responsible for conducting all searches for electronic records that are accessible inside the department of management. a. Upon receipt of a request for access to a public record, the department will promptly take all reasonable steps to preserve a public record while the request is pending. b. Every public record that is gathered pursuant to a records request will be examined to determine whether the record is confidential and for completeness in response to the request. c. Every record that is presented to the public for review will be attached to a transmittal letter that specifies the manner in which the records search was performed. d. Questions by the public regarding the scope of a records search or requests for an expanded search should be submitted to the director in writing. 8.3(5) Fees. A fee for time spent retrieving an open record or supervising the public examination of an open record, or both, may be charged to the requester of the record in an amount equal to the actual cost of time spent providing nonincidental retrieval or supervisory services, or both, as provided under applicable law. Whenever possible, an estimate of fees will be provided to the requester before a search is initiated. a. The actual cost for nonincidental retrieval or supervisory services, or both, may vary according to the nature of the search that is specified by the requester. However, the fees for nonincidental retrieval or supervisory services, or both, performed by department of management staff pursuant to a request for records that are accessible inside the department of management will ordinarily be set at $15 per hour. The fees for department of management records that are accessible only with the assistance of department of administrative services or state archives personnel will be based on the fee structure that is established by those agencies. Requesters are generally billed for fees after their request has been processed. However, if total fees are expected to exceed $250, the department of management may need payment in advance of processing. b. Photocopies of open records located in the department office will be provided at no charge for the first 25 pages, and 20 cents per page for each additional page.

541—8.9(17A,22) Disclosures without the consent of the subject. 8.9(1) Open records are routinely disclosed without the consent of the subject. 8.9(2) To the extent allowed by law, disclosure of confidential records may occur without the consent of the subject. Following are instances where disclosure, if lawful, will generally occur without notice to the subject: a. For a routine use as defined in rule 541—8.10(17A,22) or in any notice for a particular record system. b. To a recipient who has provided the agency with advance written assurance that the record will be used solely as a statistical research or reporting record, provided that the record is transferred in a form that does not identify the subject. c. To another government agency or to an instrumentality of any governmental jurisdiction within or under the control of the United States for a civil or criminal law enforcement activity if the activity is authorized by law, and if an authorized representative of such government agency or instrumentality has submitted a written request to the agency specifying the record desired and the law enforcement activity for which the record is sought. d. To an individual pursuant to a showing of compelling circumstances affecting the health or safety of any individual if a notice of the disclosure is transmitted to the last-known address of the subject. e. To the legislative services agency under Iowa Code section 2A.3. f. Disclosures in the course of employee disciplinary proceedings. g. In response to a court order or subpoena.

541—8.10(17A,22) Routine use. 8.10(1) “Routine use” means the disclosure of a record without the consent of the subject or subjects, for a purpose that is compatible with the purpose for which the record was collected. It includes disclosures obligated to be made by statute other than the public records law, Iowa Code chapter 22. 8.10(2) To the extent allowed by law, the following uses are considered routine uses of all agency records: a. Disclosure to those officers, employees, and agents of the agency who have a need for the record in the performance of their duties. The custodian of the record may, upon request of any officer or employee, or on the custodian’s own initiative, determine what constitutes legitimate need to use confidential records. b. Disclosure of information indicating an apparent violation of the law to appropriate law enforcement authorities for investigation and possible criminal prosecution, civil court action, or regulatory order. c. Disclosure to the department of inspections and appeals for matters in which it is performing services or functions on behalf of the agency. d. Transfers of information within the agency, to other state agencies, or to local units of government as appropriate to administer the program for which the information is collected. e. Information released to staff of federal and state entities for audit purposes or for purposes of determining whether the agency is operating a program lawfully. f. Any disclosure specifically authorized by the statute under which the record was collected or maintained.

541—8.11(17A,22) Consensual disclosure of confidential records. 8.11(1) Consent to disclosure by a subject individual. To the extent permitted by law, the subject may consent in writing to agency disclosure of confidential records as provided in rule 541—8.7(17A,22). 8.11(2) Complaints to public officials. A letter from a subject of a confidential record to a public official who seeks the official’s intervention on behalf of the subject in a matter that involves the agency may, to the extent permitted by law, be treated as an authorization to release sufficient information about the subject to the official to resolve the matter.

541—8.12(17A,22) Release to subject. 8.12(1) The agency need not release records to the subject in the following circumstances: a. The identity of a person providing information to the agency need not be disclosed directly or indirectly to the subject of the information when the information is authorized to be held confidential pursuant to Iowa Code section 22.7(18) or other provision of law. b. Records need not be disclosed to the subject when they are the work product of an attorney or are otherwise privileged. c. Peace officers’ investigative reports may be withheld from the subject, except as mandated by the Iowa Code. (Please refer to Iowa Code section 22.7(5).) d. As otherwise authorized by law. 8.12(2) Where a record has multiple subjects with interest in the confidentiality of the record, the agency may take reasonable steps to protect confidential information relating to another subject.

541—8.13(17A,22) Availability of records. 8.13(1) Open records. Agency records are open for public inspection and copying unless otherwise provided by rule or law. 8.13(2) Confidential records. The department of management may withhold information reflecting departmental budget recommendations for the following fiscal year until the information is made public by the governor. 8.13(3) Authority to release confidential records. The agency may have discretion to disclose some confidential records that are exempt from disclosure under Iowa Code section 22.7 or other law.

541—8.14() Reserved.

541—8.15(17A,22) Other records. The agency maintains a variety of records that do not generally contain information pertaining to named individuals. The agency maintains the following records, not heretofore listed, which do not generally contain personally identifiable or confidential information: annual reports; press releases; budget information (following presentation by the governor); receipt statements; revenue information; newsletters; public meeting agendas and minutes; budget information relating to cities, counties or school districts; state revenue forecasts; policy information as recommended to the governor; progress review materials and targeted small business compliance reports.

541—8.16(17A,22) Applicability. This chapter does not:

Mandate the agency to index or retrieve records that contain information about individuals by that person’s name or other personal identifier.
Make available to the general public records that would otherwise not be available under the public records law, Iowa Code chapter 22.
Govern the maintenance or disclosure of, notification of or access to, records in the possession of the agency that are governed by the rules of another agency.
Apply to grantees, including local governments or subdivisions thereof, administering state-funded programs, unless otherwise provided by law or agreement.
Make available records compiled by the agency in reasonable anticipation of court litigation or formal administrative proceedings. The availability of such records to the general public or to any subject individual or party to such litigation or proceedings will be governed by applicable legal and constitutional principles, statutes, rules of discovery, evidentiary privileges, and applicable rules of the agency.

These rules are intended to implement Iowa Code section 22.11.ARC 7118CManagement Department[541]Notice of Intended Action

Proposing rulemaking related to grants enterprise management system and providing an opportunity for public comment

The Department of Management hereby proposes to rescind Chapter 11, “Grants Enterprise Management System,” Iowa Administrative Code, and to adopt a new chapter with the same title.Legal Authority for Rulemaking This rulemaking is proposed under the authority provided in Iowa Code section 8.6.State or Federal Law Implemented This rulemaking implements, in whole or in part, Iowa Code sections 8.9 and 8.10.Purpose and Summary The Grants Enterprise Management System (GEMS) is used by Iowans and Iowa businesses to apply for grants offered by or managed by state government entities. The proposed rules provide for the ability to implement GEMS for use by state agencies to provide grants for which Iowans, including businesses and individual Iowans, can apply and seek grant funds. As of November 2022, there were 17 participating agencies, 26,498 users, and 4,249 participating organizations.Fiscal Impact This rulemaking has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rulemaking, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rulemaking 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 541—1.3(8). Public Comment Any interested person may submit written comments concerning this proposed rulemaking. Written comments in response to this rulemaking must be received by the Department no later than 4:30 p.m. on December 6, 2023. Comments should be directed to: Gloria Van Rees Iowa Department of Management State Capitol, Room 13 1007 East Grand Avenue Des Moines, Iowa 50319 Email: gloria.vanrees@iowa.gov Public Hearing Public hearings at which persons may present their views orally or in writing will be held as follows: December 6, 2023 1 to 2 p.m. State Capitol, Room G14 1007 East Grand Avenue Des Moines, Iowa December 8, 2023 1 to 2 p.m. State Capitol, Room G14 1007 East Grand Avenue Des Moines, Iowa Persons who wish to make oral comments at the public hearings may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking. Any persons who intend to attend the public hearings 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 rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking 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 rulemaking action is proposed:

ITEM 1. Rescind 541—Chapter 11 and adopt the following new chapter in lieu thereof: CHAPTER 11GRANTS ENTERPRISE MANAGEMENT SYSTEM

541—11.1(8) Purpose. These rules are designed to establish a grants enterprise management system (GEMS) under Iowa Code sections 8.9 and 8.10. The primary goals of GEMS include:

Securing additional nonstate funding;
Fostering cooperation and coordination between state agencies;
Discouraging duplication of competitive grant application efforts;
Providing a mechanism for the timely exchange of information among state agencies on proposals potentially affecting the agencies; and
Providing policy makers, legislators and the citizens of Iowa with information on grant funds received and state agencies’ competitive grant applications.

541—11.2(8) Definitions. As used in this chapter: "Applicant agency" means the agency intending to apply for, or applying for, a competitive grant. "Competitive grant application" means a grant application that is in competition with other applications for limited funds. "Federal Executive Order 12372" means the federal executive order that provides for the establishment of a process for the coordination and review of proposed federal financial assistance. In the order, states are encouraged to develop their own processes, and federal agencies, to the extent permitted by law, utilize the state process. "GEMS coordinator" means the person appointed by the director of the department of management to coordinate GEMS. "I/3 grant tracking module" means Integrated Information for Iowa (I/3) and the portion of the I/3 cost accounting module designed to collect data on all nonstate funds received by state government agencies. "Single point of contact" means the GEMS coordinator. "State agency" means any department or agency of state government except the board of regents.

541—11.3(8) GEMS coordinator. The GEMS facilitator will coordinate all aspects of GEMS under Iowa Code sections 8.9 and 8.10. The GEMS coordinator will:

Identify and execute strategies to secure nonstate funds;
Ensure that all agencies utilize the Iowa grants database to track all competitive grant applications;
Ensure that all agencies utilize the I/3 grant tracking module for all grants received;
Operate as the state’s single point of contact, pursuant to Federal Executive Order 12372;
Establish a grants network, representing all state agencies, to operate in an advisory capacity;
Assign a state application identifier (SAI) number at each stage of the application process: notification of intent, application submitted, and final status;
Review competitive grant applications of special significance, at the coordinator’s discretion;
Serve as liaison with the state single point of contact in contiguous states;
In cooperation with other state agencies, monitor and refine the GEMS competitive grants review procedures;
Maintain a list of state agency grants coordinators;
Ensure, to the greatest degree practicable, that all GEMS competitive grants reviews are conducted in accordance with these rules;
Provide training and policy guidance; and
Provide status and results reports to appropriate contacts on an as-needed basis.

541—11.4(8) Grants network. The grants network includes representation from all state agencies. Agency representatives will serve as agency grants coordinators. All agency grants coordinators will work with the GEMS coordinator to implement Iowa Code section 8.10 and do the following:

Communicate relevant information to the GEMS coordinator;
Utilize the Iowa grants database to track all competitive grant applications;
Utilize the I/3 grant tracking module for all grants received;
Inform the Iowa office for state-federal relations of initiatives for which the agency is seeking federal funds; and
Participate in issue-specific federal legislation work groups.

541—11.5(8) GEMS competitive grants review system. The purpose of the GEMS competitive grants review system is to allow state government coordination and review of all competitive grant applications in order to avoid duplication and conflicts. 11.5(1) Agency competitive grants review coordinator. Agency grants coordinators will: a. Serve as the agency’s competitive grants review coordinator and as liaison between the agency and the GEMS coordinator for the GEMS competitive grants review process. b. Assist in the evaluation of the GEMS competitive grants review process. 11.5(2) GEMS competitive grants review process. The following is a generalized summary of the GEMS competitive grants review process that will be followed by state agencies with respect to review of applications for competitive grants. a. Step 1—intent to apply. (1) The applicant agency will complete the intent to apply section of the Iowa grants database when the applicant agency identifies a competitive grant opportunity. (2) Upon submission of the intent to apply, a notification will be sent to all state agencies. (3) Any state agency, or the GEMS coordinator, may request a GEMS competitive grants review meeting to explore the project in greater detail, identify opportunities for collaboration and resolve possible conflicts. (4) The applicant agency and the GEMS office will receive the agency request for a GEMS competitive grants review meeting within two working days of submission of the intent to apply notification. (5) The GEMS review meeting will be held within 12 working days of submission of the intent to apply notification. The applicant agency will work with the GEMS office to schedule the meeting. b. Step 2—application submitted. (1) Upon completion of the GEMS competitive grants review process, but prior to submission of the grant application, the applicant agency will enter the grant application information in the application section of the Iowa grants database. (2) When all necessary fields are completed, the Iowa grants database will automatically generate written confirmation of completion of the GEMS competitive grants review to the applicant agency. (3) The applicant agency will keep a file copy of the confirmation. The applicant agency will include the written confirmation with all federal competitive grant applications pursuant to Federal Executive Order 12372. c. Step 3—status. (1) The applicant agency will enter the grant’s status in the Iowa competitive grants database upon withdrawal of the application or notification of the receipt or denial of the grant. (2) The GEMS office and the legislative services agency will be notified of the final grant status. These rules are intended to implement Iowa Code sections 8.9 and 8.10.ARC 7119CManagement Department[541]Notice of Intended Action

Proposing rulemaking related to DAS customer council and providing an opportunity for public comment

The Department of Management hereby proposes to rescind Chapter 12, “DAS Customer Council,” Iowa Administrative Code, and to adopt a new chapter with the same title.Legal Authority for Rulemaking This rulemaking is proposed under the authority provided in Iowa Code section 8.6.State or Federal Law Implemented This rulemaking implements, in whole or in part, Iowa Code section 8.6.Purpose and Summary In the proposed Chapter 12, the Department of Administrative Services (DAS) Customer Council provides oversight for fees paid by government entities when DAS is the sole provider of the service. Fiscal Impact This rulemaking has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rulemaking, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rulemaking 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 541—1.3(8). Public Comment Any interested person may submit written comments concerning this proposed rulemaking. Written comments in response to this rulemaking must be received by the Department no later than 4:30 p.m. on December 6, 2023. Comments should be directed to: Gloria Van Rees Iowa Department of Management State Capitol, Room 13 1007 East Grand Avenue Des Moines, Iowa 50319 Email: gloria.vanrees@iowa.gov Public Hearing Public hearings at which persons may present their views orally or in writing will be held as follows: December 6, 2023 1 to 2 p.m. State Capitol, Room G14 1007 East Grand Avenue Des Moines, Iowa December 8, 2023 1 to 2 p.m. State Capitol, Room G14 1007 East Grand Avenue Des Moines, Iowa Persons who wish to make oral comments at the public hearings may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking. Any persons who intend to attend the public hearings 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 rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking 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 rulemaking action is proposed:

ITEM 1. Rescind 541—Chapter 12 and adopt the following new chapter in lieu thereof: CHAPTER 12DAS CUSTOMER COUNCIL

541—12.1(8) Definitions. "DAS" means the department of administrative services created by Iowa Code chapter 8A. "DAS customer council" means a group responsible for overseeing operations with regard to a service funded by fees paid by a governmental entity or subdivision receiving the service when the department and DAS have determined that DAS will be the sole provider of that service. "Department" "DOM" means the department of management created by Iowa Code chapter 8. "Economies of scale" means mass purchasing of goods or services, which results in lower average costs. "Leadership function" means a service provided by the department and funded by a general appropriation. Leadership functions typically relate to development of policy and standards and are appropriate when standardization is necessary and the ultimate customer is the taxpayer. "Marketplace service" means a service that the department is authorized to provide but that governmental entities may provide on their own or obtain from another provider of the service. "Quorum" means the presence of no less than a simple majority (50 percent plus 1) of the members eligible to vote. "Utility service" means a service funded by fees paid by the governmental entity receiving the service and for which DAS is the sole provider of the service.

541—12.2(8) Purpose. The purpose of this chapter is the same as Iowa Code section 8.6(15)“c.”

541—12.3(8) Utility determination. Services for which the department has determined that DAS will be the sole provider are designated “utilities” in Iowa state government. Customers may choose the amount of service they purchase, but should buy from the single source. Utilities are those services for which a monopoly structure makes sense due to economies of scale. The process for determining whether DAS will be the sole provider of a service will include consideration of economic factors, input from the DAS customer council and input from upper levels of the executive branch.

541—12.4(8) DAS customer council established. In order to ensure that DAS utilities provide effective, efficient, and high-quality services that benefit governmental entities and the citizens they serve, this chapter establishes a DAS customer council for services identified as utilities.

541—12.5(8) DAS customer council membership. DAS customer council membership will consist of the chairperson and vice chairperson, the Governor’s cabinet state agency directors, a judicial branch representative overseeing DAS services provided to the judicial branch, and two legislative branch representatives overseeing DAS services provided to the legislative branch. 12.5(1) Executive branch agency representation. The DAS customer council will include directors from the governor’s cabinet-level agencies and two noncabinet-level agencies. 12.5(2) Legislative and judicial branch representation. If the service to be provided may also be provided to the judicial branch and legislative branch, the provisions of Iowa Code section 8.6(15)“c”(2) apply.

541—12.6(8) Organization of DAS customer council. The operations of the DAS customer council will be governed by a set of bylaws as adopted by the DAS customer council. Bylaws will address the following issues. 12.6(1) Member participation. Each member is expected to attend and actively participate in meetings. Participation will include requesting input and support from the group each member represents. a. Substitutes for members and alternates absent from meetings will be allowed; however, members may attend by telephone or other electronic means approved by the DAS customer council. b. Upon the approval of the DAS customer council, an alternate member may be selected by an agency or group that provides a representative to the DAS customer council to participate in DAS customer council meetings and vote in place of the representative when the representative is unable to participate. 12.6(2) Voting. A quorum is necessary for a DAS customer council vote. a. Eligible members may vote on all issues brought before the group for a vote. Members may be present to vote during a meeting in person, by telephone or other electronic means approved by the DAS customer council. b. Each member, other than the chairperson, vice chairperson and ex officio members, has one vote. Designated alternates may only vote in the absence of the representative from the same organization. A simple majority of the members voting will determine the outcome of the issue being voted upon. c. DAS customer council bylaws may be amended by a simple majority vote of all members. 12.6(3) Officers. The officers of the DAS customer council will be the chairperson and vice chairperson. The director of the department of management will serve as chairperson, and the director of the department of administrative services will serve as vice chairperson. The chairperson and vice chairperson cannot be voting members. 12.6(4) Duties of officers. a. The chairperson will preside at all meetings of the DAS customer council. b. The vice chairperson will assist the chairperson in the discharge of the chairperson’s duties as requested and, in the absence or inability of the chairperson to act, will perform the chairperson’s duties. 12.6(5) Committees. a. The chairperson may authorize or dissolve committees as necessary to meet the needs of the DAS customer council. b. Members of the DAS customer council and individuals who are not members of the DAS customer council may be appointed by the chairperson to serve on committees. c. Committees will provide feedback to the chairperson and the DAS customer council at the council’s request. d. Committees will meet, discuss, study and resolve assigned issues as needed. 12.6(6) Administration. DAS will assist the department by providing staff support to assist the chairperson with the following administrative functions: a. Keeping the official current and complete books and records of the decisions, members, actions and obligations of the DAS customer council; b. Coordinating meeting notices and locations and keeping a record of names and addresses, including email addresses, of the members of the DAS customer council; and c. Taking notes at the meetings and producing minutes that will be distributed to all members. 12.6(7) Open records. DAS customer council books and records are subject to the open records law as specified in Iowa Code chapter 22. 12.6(8) Meetings. DAS customer council meetings are subject to the open meetings law as specified in Iowa Code chapter 21. The DAS customer council is responsible for the following: a. Determining the frequency and time of council meetings. b. Soliciting agenda items from the members in advance of an upcoming meeting. c. Sending electronic notice of meetings, including date, time and location of the meeting, at least one week prior to the meeting date. d. Providing an agenda, including those items requiring action, at least two days prior to the meeting. The agenda should also include any information necessary for discussion at the upcoming meeting. e. Conducting meetings using the most recent version of Robert’s Rules of Order, Revised.

541—12.7(8) Powers and duties of DAS customer council. 12.7(1) Approval of business plans. The DAS customer council, in accordance with Iowa Code section 8.6(15)“c”(1)(b)(i), reviews and recommends business plans. Business plans will include levels of service, service options, investment plans, and other information. 12.7(2) Complaint resolution. The DAS customer council will approve the internal procedure for resolution of complaints in accordance with Iowa Code section 8.6(15)“c”(1)(b)(ii). The procedure will include, at a minimum, the following provisions: a. A definition of “complaint,” which will convey that this resolution process does not take the place of any other formal complaint, grievance or appeal process necessary by statute or rule. b. Receipt of complaints. c. Standards for prompt complaint resolution. d. Provisions to aggregate, analyze and communicate issues and outcomes in a manner that contributes to overall organizational improvement. e. Identification of the chairperson and vice chairperson’s decision as the final step in the process. 12.7(3) Rate setting. A majority of all voting council members will approve the rate methodology and the resulting rates for the services that the DAS customer council oversees. Rates will be established no later than September 1 of the year preceding the rate change. Established rates may be amended after September 1 upon recommendation by the department in consultation with DAS and upon affirmative vote by the DAS customer council. 12.7(4) Biennial review. Every two years, the DAS customer council will review the decision made by the department that DAS be the sole provider of a service and make recommendations regarding that decision.

541—12.8(8) Customer input. The department will establish procedures to provide for the acceptance of input from affected governmental entities. Input may take various forms, such as unsolicited comments, response to structured surveys, or an annual report on service requirements.

541—12.9(8) Annual service listing. DAS will annually prepare a listing separately identifying services determined by the department and DAS to be leadership functions, marketplace services, and utilities. The listing will be completed no later than September 1 of the fiscal year preceding the proposed effective date of the change. These rules are intended to implement Iowa Code section 8.6.ARC 7120CManagement Department[541]Notice of Intended Action

Proposing rulemaking related to suspension and reinstatement of state funds and providing an opportunity for public comment

The Department of Management hereby proposes to rescind Chapter 13, “Suspension and Reinstatement of State Funds,” to adopt a new chapter with the same title, and to rescind Chapter 16, “Suspension and Reinstatement of State Funds,” Iowa Administrative Code.Legal Authority for Rulemaking This rulemaking is proposed under the authority provided in Iowa Code chapters 27A and 27B.State or Federal Law Implemented This rulemaking implements, in whole or in part, Iowa Code chapters 27A and 27B.Purpose and Summary The proposed Chapter 13 establishes procedures and guidelines to deny state funds to a local entity intentionally violating the provisions of Iowa Code chapter 27A and to reinstate eligibility funds when a local entity comes into compliance. The Department proposes to rescind Chapter 16 and intends to transfer applicable language to Chapter 13. The two chapters are similar, and it is more straightforward to include all sanctuary city language in a single chapter.Fiscal Impact This rulemaking has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rulemaking, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rulemaking 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 541—1.3(8). Public Comment Any interested person may submit written comments concerning this proposed rulemaking. Written comments in response to this rulemaking must be received by the Department no later than 4:30 p.m. on December 6, 2023. Comments should be directed to: Gloria Van Rees Iowa Department of Management State Capitol, Room 13 1007 East Grand Avenue Des Moines, Iowa 50319 Email: gloria.vanrees@iowa.gov Public Hearing Public hearings at which persons may present their views orally or in writing will be held as follows: December 6, 2023 1 to 2 p.m. State Capitol, Room G14 1007 East Grand Avenue Des Moines, Iowa December 8, 2023 1 to 2 p.m. State Capitol, Room G14 1007 East Grand Avenue Des Moines, Iowa Persons who wish to make oral comments at the public hearings may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking. Any persons who intend to attend the public hearings 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 rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking 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 rulemaking action is proposed:

ITEM 1. Rescind 541—Chapter 13 and adopt the following new chapter in lieu thereof: CHAPTER 13SUSPENSION AND REINSTATEMENT OF STATE FUNDS

541—13.1(27A) Definitions. For purposes of this chapter: "City" means a municipal corporation but does not include a county, township, school district, or any special-purpose district or authority. "County" means an administrative subdivision in the state governed by a locally elected board of supervisors and may be comprised of subdivisions, including cities, townships, school districts, or any special-purpose district or authority. "Declaratory judgment" means a judgment issued by a district court declaring a local entity is in full compliance with Iowa Code chapter 27A or 27B. "Department" means the Iowa department of management pursuant to Iowa Code chapter 8. "Final judicial determination" means a district court ruling on a civil action brought by the state attorney general’s office finding a local entity to have violated the provisions of Iowa Code chapter 27A or 27B. "Fiscal year" means the time period beginning on July 1 and ending the following June 30 as defined in Iowa Code section 8.36. "Governing body" means the mayor and city council of a city or the board of supervisors of a county. "Local entity" means the same as defined in Iowa Code section 27A.1(4) or 27B.1(1). "State agencies" means any boards, commissions, or departments, as defined by Iowa Code section 7E.4, or other administrative offices or units of the executive branch of the state. "State funds" means those funds held by the state that originate from revenues, fees or receipts collected by the state and distributed to local entities. Funds held by the state that are not defined as state funds include:

Federal funds (unless provided to the state and awarded as a grant by the state).
Funds paid out per gubernatorial or presidential emergency proclamation.
Any revenue collected and administered by the state on behalf of a local entity due to a locally imposed tax, fee or fine.
Any state funds for the provision of wearable body protective gear used for law enforcement purposes.
Payment for public protection, utilities, or goods and services.
Payment of settlements.
Setoffs as defined by Iowa Code section 8A.504.

541—13.2(27A) Denial of state funds. State funds are denied to a local entity in circumstances authorized by Iowa Code section 27A.9(2) or 27B.5(2). 13.2(1) The department will send written notification to each state agency to deny state funds. Payments will continue to be made to the local entity until the beginning of the state fiscal year that begins after the date on which a final judicial determination is made, at which time payments will be denied. 13.2(2) If the local entity receives state funds through the county, the department will notify the county so that any needed changes may be made to apportionment systems for property tax credits, exemptions and replacements. 13.2(3) State agencies will contact federal granting agencies in writing to determine how to administer federal funds when state match funds are denied. State agencies may be obligated to discontinue drawing federal funds or issue repayments as instructed by federal granting agencies. 13.2(4) Funds will continue to be denied until the court issues a declaratory judgment declaring that the local entity is in full compliance with Iowa Code chapter 27A or 27B.

541—13.3(27A) Reinstatement of eligibility to receive state funds. In circumstances authorized by Iowa Code section 27A.10(3) or 27B.6(3), the local entity’s eligibility to receive state funds is reinstated. 13.3(1) The department will send written notification to each state agency to reinstate state funds. Payments will be reinstated to the local entity beginning on the first day of the month following the date on which the declaratory judgment is issued. 13.3(2) State agencies will contact federal partners in writing to determine how to reinstate the drawdown of federal funds when state match funds are reinstated. These rules are intended to implement Iowa Code chapters 27A and 27B.

ITEM 2. Rescind and reserve 541—Chapter 16.ARC 7110CUtilities Division[199]Notice of Intended Action

Proposing rulemaking related to interstate natural gas pipelines and providing an opportunity for public comment

The Utilities Board hereby proposes to amend Chapter 12, “Interstate Natural Gas Pipelines and Underground Storage,” Iowa Administrative Code.Legal Authority for Rulemaking This rulemaking is proposed under the authority provided in Iowa Code section 476.2 and chapter 479A.State or Federal Law Implemented This rulemaking implements, in whole or in part, Iowa Code chapter 479A.Purpose and Summary Chapter 12 is intended to publish state and federal authorizations in regard to interstate natural gas pipelines in the Iowa Administrative Code. The Board is proposing to rescind Chapter 12 because its provisions are duplicative of language contained in Iowa Code chapter 479A. Consequently, the intended benefits of Chapter 12 can be achieved through the provisions of Iowa Code chapter 479A alone.Fiscal Impact This rulemaking has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rulemaking, 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 this chapter.Public Comment Any interested person may submit written comments concerning this proposed rulemaking. Written comments in response to this rulemaking must be received by the Board no later than 4:30 p.m. on December 12, 2023. Comments should be directed to: IT Support Iowa Utilities Board Phone: 515.725.7300 Email: ITSupport@iub.iowa.gov Public Hearing Oral presentations at which persons may present their views orally or in writing will be held as follows: December 5, 2023 10:30 a.m. to 12:30 p.m. Board Hearing Room 1375 East Court Avenue Des Moines, Iowa December 12, 2023 9 to 11 a.m. Board Hearing Room 1375 East Court Avenue Des Moines, Iowa Persons who wish to make oral comments at an oral presentation may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking. Any persons who intend to attend an oral presentation 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 rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking 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 rulemaking action is proposed:

ITEM 1. Rescind and reserve 199—Chapter 12.ARC 7111CUtilities Division[199]Notice of Intended Action

Proposing rulemaking related to recordkeeping and cost allocation requirements for nonutility services and providing an opportunity for public comment

The Utilities Board hereby proposes to amend Chapter 33, “Nonutility Services—Recordkeeping and Cost Allocations,” Iowa Administrative Code.Legal Authority for Rulemaking This rulemaking is proposed under the authority provided in Iowa Code section 476.2.State or Federal Law Implemented This rulemaking implements, in whole or in part, Iowa Code section 476.78.Purpose and Summary Chapter 33 is intended to provide recordkeeping and cost allocation requirements for rate-regulated utilities with nonutilities services in the Iowa Administrative Code. The Board is proposing to rescind and repromulgate Chapter 33 because its provisions contain duplicative language contained in the Iowa Code and other portions of the Iowa Administrative Code. Chapter 33 also contains unnecessary and restrictive language the Board is proposing to reduce.Fiscal Impact This rulemaking has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rulemaking, 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 33.Public Comment Any interested person may submit written comments concerning this proposed rulemaking. Written comments in response to this rulemaking must be received by the Board no later than 4:30 p.m. on January 23, 2024. Comments should be directed to:IT Support Iowa Utilities Board Phone: 515.725.7300 Email: ITSupport@iub.iowa.gov Public Hearing Oral presentations at which persons may present their views orally or in writing will be held as follows: December 5, 2023 9 to 11 a.m. Board Hearing Room 1375 East Court Avenue Des Moines, Iowa January 23, 2024 9 to 11 a.m. Board Hearing Room 1375 East Court Avenue Des Moines, Iowa Persons who wish to make oral comments at an oral presentation may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking. Any persons who intend to attend an oral presentation 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 rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking 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 rulemaking action is proposed:

ITEM 1. Rescind 199—Chapter 33 and adopt the following new chapter in lieu thereof: CHAPTER 33NONUTILITY SERVICES—RECORDKEEPING AND COST ALLOCATIONS

199—33.1(476) Applicability. This chapter applies to all rate-regulated public utilities.

199—33.2(476) Definitions. All terms used in this chapter are defined in Iowa Code section 476.72 unless further defined in this chapter. "Exception time reporting" means when an employee works predominantly in either utility or nonutility operations and only reports time worked in the less predominant area. "Filing threshold" means that the summation of an electric or gas utility’s revenues recorded in FERC accounts 415 and 417 equals 3 percent of a utility’s operating revenues recorded in FERC account 400, or the summation of a water utility’s revenues from nonutility service equals 3 percent of the utility’s operating revenues. The revenues in these accounts will be as recorded in the annual FERC Form 1 for electric and combination utilities, FERC Form 2 for gas utilities, and similar National Association of Regulatory Utility Commissioners (NARUC) accounts for water, sanitary sewage, or storm water drainage service utilities. "Fully distributed cost" means a costing approach that fully allocates all current and embedded costs to determine the revenue contribution of utility and nonutility services. "Incidental activities" means activities that are so closely related to the provision of utility services and limited in scale that it is impracticable to identify separately the costs of such activities. "Net book value" means the original purchase price net of depreciation. "Nonproductive work time" means time for which an employee is paid but which is not specifically attributable either to utility or to nonutility operations. "Positive time reporting" means when productive work time is accounted for and allocated to utility operations or nonutility operations. "Study time reporting" means when periodic studies are done to determine the amount of productive work time being spent on utility versus nonutility operations. "Utility operating revenues" means the dollar amounts recorded in FERC account 400, or similar NARUC account, for water, sanitary sewage, or storm water drainage service utilities.

199—33.3(476) Availability of records. 33.3(1) Separate records. A rate-regulated public utility receiving revenues for providing nonutility service shall keep and render to the board separate records on the nonutility service. 33.3(2) Records to be maintained. The records maintained for each nonutility service and made available for inspection include the following: documents depicting accounts payable and vouchers; purchase orders; time sheets; journal entries; source and supporting documents for all transactions; a description of methods used to allocate revenues, expenses, and investments between utility and nonutility operations, including supporting detail; and copies of all filings required by other state and federal agencies.

199—33.4(476) Costing methodology. Costs shall be allocated between utility and nonutility operations using fully distributed cost consistent with this rule. The utility will do the following: 33.4(1) Cost causation for utility assets. Identify for each asset utilized directly or indirectly, in whole or in part, in the provision of nonutility services: a. The type of asset; b. The use of the asset; c. The proportional utilization of the asset between utility operations and nonutility operations; and d. The characteristics of the asset that allow proper allocation. 33.4(2) Cost causation for utility expenses. Identify for each expense account wherein any expense related, directly or indirectly, to the provision of nonutility services is recorded: a. The function causing the expense to be incurred; b. The procedure used in performing the function; c. The proportional utilization of the function between utility operations and nonutility operations; and d. The characteristics of the cost that allow proper allocation. 33.4(3) Time reporting. Use positive time reporting whenever possible; when it is not possible, exception time reporting or study time reporting may be used. Allocate nonproductive work time between utility and nonutility operations in proportion to the allocation of productive work time.

199—33.5(476) Cost allocation manuals. Every rate-regulated public utility equaling or exceeding the filing threshold in any calendar year shall file with the board a cost allocation manual on or before September 1 of the following year; however, a letter may be filed if the utility has not changed its cost allocation manual since the last filing. In the event the utility has made only minor changes to its manual to reflect new accounts or new affiliates or has modified language, the utility may file only the pages affected together with a cover letter explaining the pages being filed. 33.5(1) Contents of manuals. Each cost allocation manual shall contain the following information: a. Nonutility services.A list, the location, and description of all nonutility services. b. Incidental activities.A summary of incidental activities conducted by the utility. c. Resource identification.An identification of the assets and expenses involved directly or indirectly, in whole or in part, in the provision of nonutility services as identified in subrules 33.4(1) and 33.4(2). d. Allocation methodology.A description of the cost allocation methodology, including an overview, explanation, and justification of the details provided in response to paragraphs 33.5(1)“e” through “h” below. e. Allocation rationale.A statement identifying, for each asset and expense account and subaccount identified in compliance with subrules 33.4(1) and 33.4(2), the basis for allocating costs in the account or subaccount to utility and nonutility operations, including any allocation factor used by the utility for this purpose. f. Accounts and records.A description of each account and record used by the utility for financial recordkeeping for nonutility services, including all subaccounts. g. Allocation factors.A paragraph containing, for each allocation factor identified in compliance with paragraph 33.5(1)“e,” an explanation of how the allocation factor is calculated, a description of each study and analysis used in developing the allocation factor, and the frequency with which each allocation factor is recalculated. h. Time reporting methods.A paragraph indicating the type of time reporting (positive, exception, or study) used for each reporting organization (e.g., executive, residential sales, and external affairs) and providing a description of how the identified type of time reporting is performed in that reporting organization. i. Training.A description of the training programs used by the utility to implement and maintain its cost allocation process. j. Update process.A description of the procedures used by the utility to: (1) Determine when an update is needed; (2) Develop the update; and (3) Provide the update to the board. 33.5(2) Annual filing and acceptance of manuals. The following procedure is used for the annual filing and acceptance of manuals. a. Notice.At the time of the initial filing and whenever a manual is updated, each utility mails or delivers a written notice to consumer advocate, local trade associations, and customers who have notified the utility in writing of their interest in the cost allocation manual. The notice will state that an objection may be filed with the board within 60 days of the filing of the manual with the board. The utility shall promptly provide copies of the manual upon request. b. Docketing.If the board finds that reasonable grounds exist to investigate the manual, the board will docket the filing for investigation. At the time of docketing, the board will set a procedural schedule that includes a date for an oral presentation and an opportunity to file comments. If the board finds that there is no reason to investigate, the board issues an order stating the reasons for the board’s decision within 90 days of the date of filing. c. Acceptance of manuals.The board may accept, reject, or modify a utility’s manual. However, any board decision is for accounting purposes only and is not binding in any other proceeding. 33.5(3) Updating of manuals. All affected sections and pages of a utility’s manual are updated and filed with the board within 60 days of any of the following conditions: a. A new nonutility business is commenced or acquired, or an existing nonutility business is eliminated or divested; b. An affiliate relationship changes; c. Operations affecting nonutility businesses change sufficiently to warrant a new allocation method; or d. Accounting practices change. 33.5(4) Reporting requirements—accounting tables. Companies filing cost allocation manuals shall include in their annual reports tables showing for each account identified in compliance with subrules 33.4(1) and 33.4(2) the following: (a) the account total; (b) the amount allocated to nonutility services; (c) the amount allocated to utility services; and (d) the value of the allocation factors used to allocate costs to utility and nonutility services. Such tables are to be accompanied by a signed statement by an officer of the utility and an independent auditor certifying that, for the year covered by the report, the utility has complied with its cost allocation manual and that the data reported fairly reflect the actual operations of the utility.

199—33.6(476) Standards for costing service transfers within a regulated subsidiary or utility. 33.6(1) Nonutility service provided to regulated subsidiary or utility. The utility or its regulated subsidiary shall pay for a nonutility service provided to it by an affiliate at the price actually charged to nonaffiliates. If no such price is available, the service is priced at the lower of fully distributed cost, the price actually charged to affiliates, or the market price for comparable services. 33.6(2) Service provided by the utility to nonutility operations. A utility that provides utility service to a nonutility affiliate charges such affiliate the tariffed price or, if a tariffed price is not available, charges the fully distributed cost of the service.

199—33.7(476) Standards for costing asset transfers within a regulated subsidiary or utility. 33.7(1) If an asset that is a direct cost of nonutility operations becomes a cost of utility operations, the asset shall be transferred or allocated to utility operations at the lesser of net book value, the price actually charged to affiliates or nonaffiliates, or the market price of comparable assets. 33.7(2) If an asset that is a direct cost of utility operations becomes a cost of nonutility operations, the asset shall be transferred or allocated to the nonutility operations at the greater of net book value, the price actually charged to affiliates or nonaffiliates, or the market price of comparable assets. These rules are intended to implement Iowa Code sections 476.72 through 476.83.ARC 7112CUtilities Division[199]Notice of Intended Action

Proposing rulemaking related to nonutility service and providing an opportunity for public comment

The Utilities Board hereby proposes to rescind Chapter 34, “Nonutility Service,” Iowa Administrative Code, and to adopt a new chapter with the same title.Legal Authority for Rulemaking This rulemaking is proposed under the authority provided in Iowa Code section 476.2.State or Federal Law Implemented This rulemaking implements, in whole or in part, Iowa Code sections 476.78, 476.80 and 476.81.Purpose and Summary Chapter 34 is intended to provide for rate-regulated utilities offering nonutility services to allow access to certain utility information when a competitor requests that information, provided certain requirements are met. The Board is proposing to rescind and repromulgate Chapter 34 because its provisions contain duplicative language contained in the Iowa Code and other portions of the Iowa Administrative Code. Chapter 34 also contains unnecessary and restrictive language the Board is proposing to reduce.Fiscal Impact This rulemaking has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rulemaking, 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 34. Public Comment Any interested person may submit written comments concerning this proposed rulemaking. Written comments in response to this rulemaking must be received by the Board no later than 4:30 p.m. on January 23, 2024. Comments should be directed to: IT Support Iowa Utilities Board Phone: 515.725.7300 Email: ITSupport@iub.iowa.gov Public Hearing Oral presentations at which persons may present their views orally or in writing will be held as follows: December 5, 2023 9 to 11 a.m. Board Hearing Room 1375 East Court Avenue Des Moines, Iowa January 23, 2024 9 to 11 a.m. Board Hearing Room 1375 East Court Avenue Des Moines, Iowa Persons who wish to make oral comments at an oral presentation may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking. Any persons who intend to attend an oral presentation 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 rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking 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 rulemaking action is proposed:

ITEM 1. Rescind 199—Chapter 34 and adopt the following new chapter in lieu thereof: CHAPTER 34NONUTILITY SERVICE

199—34.1(476) Statement of purpose. A public utility that engages in a systematic marketing effort, other than on an incidental or casual basis, to promote the availability of a nonutility service from the public utility shall allow competitors access to certain services.

199—34.2(476) Definitions. "Engaged primarily in providing the same competitive nonutility services in the area" means that a person, on an ongoing basis, sells or leases equipment or products or offers services, accounting for at least 60 percent of the person’s gross business revenue, which are functionally interchangeable with and considered similar by the public to the nonutility service provided by a public utility in the same identifiable geographic area where the public utility provides utility service. "Systematic marketing effort, other than on an incidental or casual basis" means an effort determined by the board to be recurring, active in nature, and done on a comprehensive basis. Factors to be considered include, but are not limited to, the types and number of media used; the frequency, extent, and duration of the marketing effort; the amount of marketing expenses incurred; and whether the public utility appeared to intend to increase significantly its market share.

199—34.3(476) Charges permitted. A person meeting the definition of “engaged primarily in providing the same competitive nonutility services in the area” in rule 199—34.2(476) is permitted to use, to the same extent utilized by the public utility for its nonutility service in connection with nonutility services, the customer lists, billing and collection system, and mailing system of the public utility company engaged in a systematic marketing effort, other than on an incidental or casual basis. The person will be charged for the cost or expense incurred by the public utility in providing access to its systems and its lists, and the cost or expense will not be greater than the charge, fee, or cost imposed upon or allocated to the provision of nonutility service by the utility for the similar use of the systems.

199—34.4(476) Procedures for utilization of billing and collection system. 34.4(1) When a person meeting the definition of “engaged primarily in providing the same competitive nonutility services in the area” in rule 199—34.2(476) uses the billing and collection system of a public utility, the public utility shall promptly remit to that person all funds collected by the public utility on behalf of the person. 34.4(2) Where a customer makes a partial payment and owes both a public utility and a person(s) meeting the definition of “engaged primarily in providing the same competitive nonutility services in the area” in rule 199—34.2(476) for services or goods provided, the payment received is allocated first to the regulated utility bill plus tax, unless otherwise allocated by the customer. Any balance remaining after payment of the utility bill plus tax is allocated between the public utility for any unpaid nonutility services and any other person(s) utilizing the utility’s billing system according to the ratio of the amount billed by each unless otherwise allocated by the customer. A public utility shall not disconnect a customer’s utility service for nonpayment of a bill for nonutility services.A person shall not use a public utility’s billing and collection system to bill and receive payments only from customers who are habitually delinquent or who have failed or refused to make payment to the person. These rules are intended to implement Iowa Code sections 476.78, 476.80, and 476.81.ARC 7122CEconomic Development Authority[261]Adopted and Filed

Rulemaking related to the butchery innovation and revitalization program

The Economic Development Authority (IEDA) hereby amends Chapter 51, “Butchery Innovation and Revitalization Program,” Iowa Administrative Code.Legal Authority for Rulemaking This rulemaking is adopted under the authority provided in Iowa Code sections 15.106A and 15E.370.State or Federal Law Implemented This rulemaking implements, in whole or in part, Iowa Code section 15E.370.Purpose and Summary IEDA administers the Butchery Innovation and Revitalization Program pursuant to Iowa Code section 15E.370. The program was created in 2021. The program received an appropriation of $1 million for fiscal year 2024. IEDA has adopted the following amendments:

Remove portions of the rules that repeat statutory language, including statutory language that was amended by 2023 Iowa Acts, House File 185. The legislation changes an eligibility requirement to allow businesses with up to 75 employees to receive grants through the program. Previously, businesses with up to 50 employees were eligible.

Clarify which project costs are eligible and ineligible for reimbursement with grant funds awarded through the program.

Make grant recipients ineligible to receive additional grants from the program during the three fiscal years following approval of the initial grant and require that recipients fully satisfy any prior agreements before applying for additional grants.

Replace language that requires the IEDA Board to act on all applications with language that would require the Board to act only to approve funding, consistent with other IEDA programs that require Board approval.

Public Comment and Changes to Rulemaking Notice of Intended Action for this rulemaking was published in the Iowa Administrative Bulletin on August 23, 2023, as ARC 7066C. No public comments were received. No changes from the Notice have been made.Adoption of Rulemaking This rulemaking was adopted by the Authority Board on October 20, 2023.Fiscal Impact This rulemaking has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rulemaking, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rulemaking 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 rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking 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 rulemaking will become effective on December 20, 2023. The following rulemaking action is adopted:

ITEM 1. Rescind the definitions of “Federally inspected small-scale meat processing business,” “Licensed custom locker,” “Mobile slaughter unit” and “State-inspected small-scale meat processing business” in rule 261—51.2(15E).

ITEM 2. Rescind rule 261—51.3(15E) and adopt the following new rule in lieu thereof:

261—51.3(15E) Eligibility. 51.3(1) Eligible businesses. To be eligible for a grant under the program, an applicant shall meet all of the eligibility requirements in Iowa Code section 15E.370(4) as amended by 2023 Iowa Acts, House File 185, in addition to all of the following requirements: a. The business must be incorporated or organized in Iowa or authorized to do business in Iowa. b. The business must be an establishment that holds a current license from the department in accordance with the requirements of Iowa Code chapter 189A or is actively working with the department to obtain a license. Factors the authority may consider in determining whether a business is actively working with the department to obtain a license include, but are not limited to, the number and frequency of contacts the business has had with the department, whether the business has submitted an application for inspection to the department or FSIS, and whether the department or FSIS has conducted a site visit at the business. c. The applicant must have an assessment of the applicant’s proposed investment completed by CIRAS prior to submission of an application. 51.3(2) Regulatory enforcement actions. For the purposes of determining whether a business is ineligible for the program because the business has been subject to any regulatory enforcement action in the last five years pursuant to Iowa Code section 15E.370(4)“b,” regulatory enforcement actions include, but are not limited to, an administrative order, consent order or similar formal order issued by an applicable enforcement agency or an involuntary withdrawal of a state grant of inspection or federal grant of inspection. 51.3(3) Eligible projects. The applicant must propose an eligible project as described in Iowa Code section 15E.370(3). a. For purposes of this subrule, a state-inspected small-scale meat processing business is an establishment that has been issued a state grant of inspection and meets the eligible business criteria in subrule 51.3(1). b. For purposes of this subrule, a federally inspected small-scale meat processing business is an establishment that has been issued a federal grant of inspection and meets eligible business criteria in subrule 51.3(1). c. For purposes of this subrule, a licensed custom locker is an establishment that slaughters or prepares livestock exclusively for use by the owners of the livestock, members of their household, and their nonpaying guests and employees, that is periodically inspected by the department, and that meets the eligible business criteria in subrule 51.3(1). d. For purposes of this subrule, a mobile slaughter unit is a self-contained slaughter establishment that can travel from site to site; that operates in compliance with applicable laws, regulations, and the most current mobile slaughter unit compliance guide issued by FSIS; and that meets the eligible business criteria in subrule 51.3(1). 51.3(4) Eligible and ineligible project costs. a. Eligible costs include, but are not limited to, land acquisition, site preparation, building acquisition, building construction, building remodeling, lease payments, machinery and equipment, and computer hardware or software associated with new machinery and equipment. b. Ineligible costs include, but are not limited to, ongoing training costs, operational costs, and costs incurred for facilities located outside the state of Iowa. Training costs specific to new investment in machinery and equipment may be considered eligible in the discretion of the authority. 51.3(5) Matching support required. The applicant shall demonstrate the ability to provide matching financial support for the project on a one-to-one basis in the form of cash. The matching financial support must be obtained from private sources. 51.3(6) Receipt of multiple grants. An applicant that has previously received a grant from the program shall not be eligible to apply for additional grants from the program during the three state fiscal years following approval of the previous grant. For example, an applicant that was approved for a grant on February 16, 2023 (fiscal year 2023), would be eligible to apply for an additional grant on or after July 1, 2026 (fiscal year 2027). An applicant that has previously received a grant from the program shall not be eligible to apply for additional grants from the program until any prior program agreements have been satisfied.

ITEM 3. Amend subrule 51.4(4) as follows: 51.4(4) A scoring committee will consider, evaluate, and recommend applications for financial assistance under the program. The committee will review applications for financial assistance and score the applications according to the criteria described in subrule 51.5(2). Applications deemed to meet the minimum scoring criteria will be submitted to the board for a final funding decision.

ITEM 4. Rescind subrule 51.4(5) and adopt the following new subrule in lieu thereof: 51.4(5) Applications that are recommended for funding by the committee will be forwarded to the board for final approval.

ITEM 5. Amend paragraph 51.5(2)"e" as follows: e. The financial need of the applicant: 10 points. Applicants that received a business improvement grant from the department for expenses incurred between March 1, 2020, and December 1, 2020, or a previous grantfinancial assistance from the programauthority will receive fewer points.

ITEM 6. Amend 261—Chapter 51, implementation sentence, as follows: These rules are intended to implement Iowa Code section 15E.370as amended by 2023 Iowa Acts, House File 185. [Filed 10/20/23, effective 12/20/23][Published 11/15/23]Editor’s Note: For replacement pages for IAC, see IAC Supplement 11/15/23.ARC 7121CWorkforce Development Department[871]Adopted and Filed

Rulemaking related to physician assistants

The Director of the Workforce Development Department hereby amends Chapter 24, “Claims and Benefits,” Iowa Administrative Code.Legal Authority for Rulemaking This rulemaking is adopted under the authority provided in Iowa Code section 96.11.State or Federal Law Implemented This rulemaking implements, in whole or in part, Iowa Code chapters 90A and 96 as amended by 2022 Iowa Acts, House File 803.Purpose and Summary This rulemaking aligns with the changes implemented in 2022 Iowa Acts, House File 803. In particular, the amendments allow claimants to utilize advice from a physician assistant in addition to a physician. A public hearing was held on August 29, 2023, for the Regulatory Analysis for this chapter.Public Comment and Changes to Rulemaking Notice of Intended Action for this rulemaking was published in the Iowa Administrative Bulletin on September 20, 2023, as ARC 7071C. A public hearing was held on August 29, 2023, for the Regulatory Analysis for this chapter. No one attended the public hearing. No public comments were received. No changes from the Notice have been made.Adoption of Rulemaking This rulemaking was adopted by the Director of the Department on October 25, 2023.Fiscal Impact This rulemaking has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rulemaking, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rulemaking 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 rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking 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 rulemaking will become effective on December 20, 2023. The following rulemaking action is adopted:

ITEM 1. Amend subrule 24.23(6) as follows: 24.23(6) If an individual has a medical report on file submitted by a physicianor a physician assistant, stating such individual is not presently able to work.

ITEM 2. Amend subrule 24.25(35) as follows: 24.25(35) The claimant left because of illness or injury which was not caused or aggravated by the employment or pregnancy and failed to: a. Obtain the advice of a licensed and practicing physicianor physician assistant; b. Obtain certification of release for work from a licensed and practicing physicianor physician assistant; c. Return to the employer and offer services upon recovery and certification for work by a licensed and practicing physicianor physician assistant; or d. Fully recover so that the claimant could perform all of the duties of the job.

ITEM 3. Amend paragraph 24.26(6)"a" as follows: a. Nonemployment related separation.The claimant left because of illness, injury or pregnancy upon the advice of a licensed and practicing physicianor physician assistant. Upon recovery, when recovery was certified by a licensed and practicing physicianor physician assistant, the claimant returned and offered to perform services to the employer, but no suitable, comparable work was available. Recovery is defined as the ability of the claimant to perform all of the duties of the previous employment.

ITEM 4. Amend subrule 24.26(9) as follows: 24.26(9) The claimant left employment upon the advice of a licensed and practicing physicianor physician assistant for the sole purpose of taking a family member to a place having a different climate and subsequently returned to the claimant’s regular employer and offered to perform services, but the claimant’s regular or comparable work was not available. However, during the time the claimant was at a different climate the claimant shall be deemed to be unavailable for work notwithstanding that during the absence the claimant secured temporary employment. (Family is defined as: wife, husband, children, parents, grandparents, grandchildren, foster children, brothers, brothers-in-law, sisters, sisters-in-law, aunts, uncles or corresponding relatives of the classified employee’s spouse or other relatives of the classified employee or spouse residing in the classified employee’s immediate household.) [Filed 10/25/23, effective 12/20/23][Published 11/15/23]Editor’s Note: For replacement pages for IAC, see IAC Supplement 11/15/23.

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