Pages 1370 to 1477 include ARC 1406B to ARC 1465B

Notice, Rescind chs 1 to 19;
adopt chs 1 to 19 ARC 1408B 1370

Schedule for rule making 1360

Publication procedures 1361

Administrative rules on CD–ROM 1361

Agency identification numbers 1368

CITATION OF ADMINISTRATIVE RULES 1367

Notice, Resident advocate committees—
accountability measures, 9.6(2), 9.15
ARC 1435B 1397

Filed, Waivers and variances, 1.2(2), 1.2(3)
ARC 1434B 1434

Filed Emergency After Notice, Senior
internship program (SIP), amend chs 1, 5,
10; rescind chs 11, 12 ARC 1436B 1429

Notice, Offset of county debts owed
department—correction of organizational
references, 14.2, 14.3, 14.4(1), 14.5,
14.6(2) ARC 1418B 1398

Notice, Community mental health center
waiver request, 25.81 ARC 1416B 1399

Notice, Medicaid—coverage for dental
services for adults, 78.4, 78.4(14)
ARC 1425B 1400

Filed, Procedures for rule making; petitions
for rule making; declaratory orders,
amendments to chs 3 to 5 ARC 1419B 1434

Filed, Collection of overpayments, 11.1
ARC 1420B 1434

Filed, FIP—hardship exemption eligibility,
41.24(2), 41.30(3), 46.21, 93.109, 93.111(1)
ARC 1421B 1435

Filed, SSA and Medicaid—annual cost–of–living
adjustments, 51.4(1), 51.7, 52.1, 75.5(3),
75.16(2) ARC 1422B 1436

Filed, Food stamp program, amendments
to ch 65 ARC 1423B 1437

Filed, Health insurance premium
payment program, 75.21 ARC 1424B 1439

Filed Emergency, Medicaid—coverage for
dental services for adults, 78.4, 78.4(14)
ARC 1426B 1430

Filed, Medicaid policy—submittal of provider
claims, 80.2(2), 80.4 ARC 1427B 1439

Filed, Policy—psychiatric institutions,
85.1, 85.2, 85.6(2), 85.7(1) ARC 1428B 1441

Filed, Interstate compact on juveniles,
143.1, 143.2, 143.4(5) ARC 1429B 1442

Filed, Juvenile court services directed
programs, 151.1, 151.2, 151.30(5)
ARC 1430B 1442

Filed, Policy—social services block grants,
153.1 to 153.3, 153.5, 153.7, 153.8
ARC 1431B 1443

Filed, Mental illness, mental retardation, and
developmental disabilities—local services,
rescind 153.31 to 153.42 ARC 1417B 1443

Filed, Providers of service to state payment
program—4.3 percent reduction,
153.57(3)“b” ARC 1432B 1444

Filed, Adult day care; sheltered work/
work activity services; transportation services;
community supervised apartment living
arrangements services program; residential
services for adults, rescind chs 171, 172,
174, 206, 207 ARC 1433B 1444

Notice, Fee for SPEX eliminated, 8.3
ARC 1449B 1400

Notice Terminated, Licensure fees, 8.4,
9.5(1), 9.11(3), 10.3 ARC 1450B 1401

Notice, Special physician licenses—foreign
medical graduates, 9.3(1)“d,” 10.4(1)
ARC 1452B 1401

Notice, Physicians designated to take mandatory
training on identifying and reporting child
and dependent adult abuse, 11.4(1)“c”
ARC 1441B 1402

MEDICAL EXAMINERS BOARD[653] (Cont’d)

Notice, Relatives to whom a physician may not
prescribe or dispense controlled substances;
authority of board to issue subpoenas for
investigations or in contested cases,
12.4(19)“b”(2), 12.6(4), 12.21 ARC 1448B 1402

Filed, Scores on SPEX and COMVEX–USA,
9.1, 11.1 ARC 1451B 1445

Filed, Mandatory reporting—judgments or
settlements; order for mental or physical
examination or alcohol or drug screening,
12.1, 12.2(2), 12.3 ARC 1443B 1445

Filed, Procedures for physicians dispensing via
automated system, 13.6(1) ARC 1442B 1446

Filed, Iowa physician health committee,
14.1 to 14.10 ARC 1444B 1446

Notice, Roofing and enclosure of private
docks, 16.1, 16.3(5), 16.4(6), 16.5,
16.8(10), 16.9(3), 16.10 ARC 1464B 1403

Notice, Game management areas, 51.9
ARC 1461B 1404

Notice, Waterfowl and coot hunting, 91.1,
91.3, 91.4(2), 91.6 ARC 1460B 1405

Notice, Wild turkey fall hunting by residents,
99.9, 99.11(6) ARC 1462B 1407

Notice, Deer hunting by residents, 106.1(5),
106.5(2), 106.6(3), 106.7(3), 106.8,
106.10(1), 106.11 ARC 1463B 1407

Filed, Nonresident deer hunting, 94.1 to 94.3,
94.5 to 94.11 ARC 1465B 1449

Filed, Delinquent license fee; license under
sanction; continuing education to
reactivate/reinstate license, 3.1, 3.3(1),
3.5(2), 3.7 ARC 1407B 1449

Filed, Waiver rules, ch 7 ARC 1406B 1450

Notice, IPERS, 17.3(1), 21.3(6), 21.5(1),
21.18(2), 21.24(14), 21.26, 21.29(2)“c,”
21.34, 31.1(2), 33.3 ARC 1409B 1409

Filed Emergency, IPERS, 17.3(1), 21.3(6),
21.5(1), 21.18(2), 21.24(14), 21.26,
21.29(2)“c,” 21.34, 31.1(2), 33.3
ARC 1410B 1430

Notice, Administrative and regulatory authority
for the board of cosmetology arts and sciences
examiners, ch 59 ARC 1412B 1410

Notice, Hearing aid dispensers, chs 120, 121;
122.6, 122.9, 122.10; chs 124, 125
ARC 1440B 1411

Notice, Administrative and regulatory authority
for the board of psychology examiners, ch 239
ARC 1454B 1417

Notice, Social workers—report of mandatory
training on identifying and reporting child
abuse or dependent adult abuse, 280.1, 280.8
ARC 1458B 1419

Filed, Cosmetology, amendments to
chs 60 to 62, 64 ARC 1411B 1450

Filed, Physical therapists and physical
therapist assistants, chs 200 to 202; 203.2,
203.5, 203.8, 203.9; ch 204 ARC 1413B 1451

Filed, Occupational therapists and occupational
therapy assistants, chs 205, 206; 207.2, 207.5,
207.8, 207.9; chs 208, 209 ARC 1439B 1461

Filed, Psychologists—completion of mandatory
training on abuse identification and reporting,
240.1, 240.11(2) ARC 1453B 1469

Summarized list 1362

Filed, Clarification, removal and correction of
existing rules, amendments to chs 52 to 55,
58, 59 ARC 1415B 1469

Filed Emergency, Valuation of commercial real
estate, 71.5 ARC 1414B 1432

Filed, Waiver rules, ch 7 ARC 1459B 1470

Notice 1419

Notice, Sale of goods and services, 1.6(2)
ARC 1456B 1419

Notice, Update of pipeline and transmission
line rules, 10.2(1), 10.3(4)“a,” 11.5(1)“a,”
13.2(1) ARC 1455B 1420

Amended Notice, Assessment allocation rules,
17.1 to 17.8 ARC 1457B 1421

Notice, Electric delivery reliability, 20.2(5)“c,”
20.5, 20.7, 20.18, 25.3, 25.4 ARC 1437B 1421

Filed, Generation plant siting, amendments
to ch 24 ARC 1438B 1470

Notice, Prehearing conference report;
prehearing procedure, 3.1(20), 4.20
ARC 1447B 1427

Filed, Technical corrections, amendments to
chs 1, 3, 4, 6, 8 ARC 1445B 1476

Filed, Filing information—electronic data
interchange (EDI), 2.6, 3.1, 11.2, 11.3, 11.7
ARC 1446B 1476

PUBLISHED UNDER AUTHORITY OF IOWA CODE SECTIONS 2B.5 AND 17A.6

__________________________________

The Iowa Administrative Bulletin is published biweekly in pamphlet form pursuant to Iowa Code chapters 2B and 17A and contains Notices of Intended Action on rules, Filed and Filed Emergency rules by state agencies.

It also contains Proclamations and Executive Orders of the Governor which are general and permanent in nature; Economic Impact Statements to proposed rules and filed emergency rules; Objections filed by Administrative Rules Review Committee, Governor or the Attorney General; and Delay by the Committee of the effective date of filed rules; Regulatory Flexibility Analyses and Agenda for monthly Administrative Rules Review Committee meetings. Other “materials deemed fitting and proper by the Administrative Rules Review Committee” include summaries of Public Hearings, Attorney General Opinions and Supreme Court Decisions.

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PLEASE NOTE: Italics indicate new material added to existing rules; strike through letters indicate deleted material.

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TO: Administrative Rules Coordinators and Text Processors of State Agencies

FROM: Kathleen K. Bates, Iowa Administrative Code Editor

SUBJECT: Publication of Rules in Iowa Administrative Bulletin

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To All Agencies:

The Administrative Rules Review Committee voted to request that Agencies comply with Iowa Code section 17A.4(1)“b” by allowing the opportunity for oral presentation (hearing) to be held at least twenty days after publication of Notice in the Iowa Administrative Bulletin.

CITATION of Administrative Rules

The Iowa Administrative Code shall be cited as (agency identification number) IAC
(chapter, rule, subrule, lettered paragraph, or numbered subparagraph).

441 IAC 79 (Chapter)

441 IAC 79.1(249A) (Rule)

441 IAC 79.1(1) (Subrule)

441 IAC 79.1(1)“a” (Paragraph)

441 IAC 79.1(1)“a”(1) (Subparagraph)

The Iowa Administrative Bulletin shall be cited as IAB (volume), (number), (publication
date), (page number), (ARC number).

IAB Vol. XII, No. 23 (5/16/90) p. 2050, ARC 872A

Due to reorganization of state government by 1986 Iowa Acts, chapter 1245, it was necessary to revise the agency identification numbering system, i.e., the bracketed number following the agency name.

“Umbrella” agencies and elected officials are set out below at the left–hand margin in CAPITAL letters.

Divisions (boards, commissions, etc.) are indented and set out in lowercase type under their statutory “umbrellas.”

Other autonomous agencies which were not included in the original reorganization legislation as “umbrella” agencies are included alphabetically in small capitals at the left–hand margin, e.g., BEEF INDUSTRY COUNCIL, IOWA[101].

The following list will be updated as changes occur:

AGRICULTURE AND LAND STEWARDSHIP DEPARTMENT[21]

Agricultural Development Authority[25]

Soil Conservation Division[27]

ATTORNEY GENERAL[61]

AUDITOR OF STATE[81]

CITIZENS’ AIDE[141]

CIVIL RIGHTS COMMISSION[161]

COMMERCE DEPARTMENT[181]

Alcoholic Beverages Division[185]

Banking Division[187]

Credit Union Division[189]

Insurance Division[191]

Professional Licensing and Regulation Division[193]

Accountancy Examining Board[193A]

Architectural Examining Board[193B]

Engineering and Land Surveying Examining Board[193C]

Landscape Architectural Examining Board[193D]

Real Estate Commission[193E]

Real Estate Appraiser Examining Board[193F]

Savings and Loan Division[197]

Utilities Division[199]

CORRECTIONS DEPARTMENT[201]

Parole Board[205]

CULTURAL AFFAIRS DEPARTMENT[221]

Arts Division[222]

Historical Division[223]

ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261]

City Development Board[263]

Iowa Finance Authority[265]

EDUCATION DEPARTMENT[281]

Educational Examiners Board[282]

College Student Aid Commission[283]

Higher Education Loan Authority[284]

Iowa Advance Funding Authority[285]

Libraries and Information Services Division[286]

Public Broadcasting Division[288]

School Budget Review Committee[289]

ELDER AFFAIRS DEPARTMENT[321]

EXECUTIVE COUNCIL[361]

GENERAL SERVICES DEPARTMENT[401]

HUMAN RIGHTS DEPARTMENT[421]

Community Action Agencies Division[427]

Criminal and Juvenile Justice Planning Division[428]

Deaf Services Division[429]

Persons With Disabilities Division[431]

Latino Affairs Division[433]

Status of African–Americans, Division on the[434]

Status of Women Division[435]

HUMAN SERVICES DEPARTMENT[441]

INFORMATION TECHNOLOGY DEPARTMENT[471]

INSPECTIONS AND APPEALS DEPARTMENT[481]

Employment Appeal Board[486]

Foster Care Review Board[489]

Racing and Gaming Commission[491]

State Public Defender[493]

LAW ENFORCEMENT ACADEMY[501]

MANAGEMENT DEPARTMENT[541]

Appeal Board, State[543]

City Finance Committee[545]

County Finance Committee[547]

NATURAL RESOURCES DEPARTMENT[561]

Energy and Geological Resources Division[565]

Environmental Protection Commission[567]

Natural Resource Commission[571]

Preserves, State Advisory Board for[575]

PERSONNEL DEPARTMENT[581]

PUBLIC DEFENSE DEPARTMENT[601]

Emergency Management Division[605]

Military Division[611]

PUBLIC EMPLOYMENT RELATIONS BOARD[621]

PUBLIC HEALTH DEPARTMENT[641]

Substance Abuse Commission[643]

Professional Licensure Division[645]

Dental Examiners Board[650]

Medical Examiners Board[653]

Nursing Board[655]

Pharmacy Examiners Board[657]

PUBLIC SAFETY DEPARTMENT[661]

REGENTS BOARD[681]

Archaeologist[685]

REVENUE AND FINANCE DEPARTMENT[701]

Lottery Division[705]

SECRETARY OF STATE[721]

TRANSPORTATION DEPARTMENT[761]

Railway Finance Authority[765]

TREASURER OF STATE[781]

WORKFORCE DEVELOPMENT DEPARTMENT[871]

Labor Services Division[875]

Workers’ Compensation Division[876]

Workforce Development Board and
Workforce Development Center Administration Division[877]

Pursuant to the authority of Iowa Code section 542C.3, the Accountancy Examining Board hereby gives Notice of Intended Action to rescind Chapters 1 to 19 and adopt new Chapter 1, “Definitions”; Chapter 2, “Organization and Administration”; Chapter 3, “Certificate as a Certified Public Accountant”; Chapter 4, “License as a Licensed Public Accountant”; Chapter 5, “ Registration and Renewal of Certificates and Licenses”; Chapter 6, “Attest Services”; Chapter 7, “Registration and Renewal of Certified Public Accounting Firms”; Chapter 8, “Licensed Public Accounting Firms”; Chapter 9, “Substantial Equivalency”; Chapter 10, “Continuing Education”; Chapter 11, “Peer Review”; Chapter 12, “Fees’’; Chapter 13, “Rules of Professional Conduct”; Chapter 14, “Disciplinary Authority and Grounds for Discipline”; Chapter 15, “Disciplinary Investigations”; Chapter 16, “Disciplinary Proceedings”; Chapter 17, “Enforcement Proceedings Against Nonlicensees”; Chapter 18, “Licensees’ Duty to Report”; and Chapter 19, “Transitional Rules,” Iowa Administrative Code.

These rules are intended to implement 2001 Iowa Acts, chapter 55, which becomes effective July 1, 2002.

These rules are subject to waiver or variance pursuant to 193—Chapter 5.

During the process of drafting these rules, the board solicited participation from numerous constituent groups. A task force that included members of the board as well as members from the Iowa Society of Certified Public Accountants and the Accountant’s Association of Iowa reviewed several drafts of this amendment prior to this Notice.

Given current controversy within the accounting industry regarding independence and objectivity, the Board has given special consideration to the rules proposed in this area to ensure protection of the public.

Consideration will be given to all written suggestions or comments on the proposed rules received on or before March 26, 2002. Comments should be addressed to Glenda Loving, Professional Licensing and Regulation Division, 1918 S.E. Hulsizer, Ankeny, Iowa 50021, or faxed to (515) 281–7411. E–mail may be sent to glenda.loving@comm7. state.ia.us.

A public hearing will be held on Tuesday, March 26, 2002, at 3 p.m. at the Board’s office located at 1918 S.E. Hulsizer, Ankeny, Iowa 50021, at which time persons may present their views on the proposed rules either orally or in writing. At the hearing, persons wishing to speak will be asked to give their names and addresses for the record and confine their remarks to the subject of the proposed rules.

Anyone who wishes to attend a hearing and has special requirements such as hearing, vision or mobility impairments or other special needs should notify the Professional Licensing Division no later than 4 p.m. on Friday, March 22, 2002. Notice may be in writing or by telephone to (515)281–7362.

These rules are intended to implement 2001 Iowa Acts, chapter 55.

The following amendment is proposed.

Rescind 193A—Chapters 1 to 19 and adopt in lieu thereof the following new chapters:

CHAPTER 1
DEFINITIONS

193A—1.1(79GA,ch55) Definitions. The following definitions shall be applicable to the rules of the board of accountancy.

“Act” means the Accountancy Act of 2001.

“AICPA” means the American Institute of Certified Public Accountants.

“Attest” or “attest service” means providing any of the following services:

1. An audit or other engagement to be performed in accordance with the statements on auditing standards.

2. A review of a financial statement to be performed in accordance with the statements on standards for accounting and review services.

3. An examination of prospective financial information to be performed in accordance with the statements on standards for attestation engagements. For purposes of these rules, the statements on standards for attestation engagements means those standards adopted by the board, by rule, by reference to the standards developed for general application by the AICPA or other recognized national accountancy organization.

“Attest engagement team” means the team of individuals participating in attest service, including those who perform concurring and second partner reviews. The “attest engagement team” includes all employees and contractors retained by the firm who participate in attest service, irrespective of their functional classification.

“Audit” means an examination of financial statements by a CPA, conducted in accordance with generally accepted auditing standards accompanied by the CPA’s opinion as to whether the statements conform with generally accepted accounting principles or, if applicable, with another comprehensive basis of accounting.

“Board” means the accountancy examining board established by 2001 Iowa Acts, chapter 55, section 4.

“Certificate” means the certificate of a certified public accountant granted under 2001 Iowa Acts, chapter 55, section 6 or 19, or a certificate issued under prior corresponding law.

“Client” means a person or entity that agrees with a licensee or licensee’s employer to receive a professional service.

“Commission” means any form of compensation in a fixed or variable amount or percent received for selling, recommending or referring any product or service of another. “Commission” includes a referral fee.

“Compensation” means anything of value received by a CPA or LPA while practicing public accounting for selling, recommending or referring a product or service of another.

“Compilation” means presenting in the form of a financial statement information that is the representation of any other person without the undertaking to express any assurance on the statement.

“Contingent fee” means a fee established for the performance of any service pursuant to an arrangement in which no fee will be charged unless a specified finding or result is attained, or in which the amount of the fee is otherwise dependent upon the finding or result of such service. “Contingent fee” does not mean a fee fixed by a court or other public authority or a fee related to any tax matter which is based upon the results of a judicial proceeding or the findings of a governmental agency.

“CPA” means certified public accountant.

“Division” means the professional licensing and regulation division of the department of commerce.

“Examination of prospective financial information” means an evaluation by a CPA of a forecast or projection, the support underlying the assumptions in the forecast or projection, whether the presentation of the forecast or projection is in conformity with AICPA presentation guidelines, and whether the assumptions in the forecast or projection provide a reasonable basis for the projection or forecast.

“FASB” means the Financial Accounting Standards Board.

“Financial statement” means a presentation of financial data, including accompanying notes derived from accounting records intended to communicate an entity’s economic resources or obligations at a point in time or the changes therein for a period of time in conformity with a comprehensive basis of accounting but does not include incidental financial data included in management advisory services reports to support recommendations to a client, nor does it include tax returns and supporting documents.

“Firm” means a sole proprietorship, partnership, professional corporation, professional limited liability company, limited liability partnership or any other form of organization issued a permit to practice as a firm under 2001 Iowa Acts, chapter 55, section 7 or 8, or the office of the auditor of state, state of Iowa, when the auditor of state is a certified public accountant.

“Forecast” means prospective financial statements that present, to the best of the responsible party’s knowledge and belief, an entity’s expected financial position, results of operations, and changes in financial position or cash flows that are based on the responsible party’s assumptions reflecting conditions it expects to exist and the course of action it expects to take.

“GASB” means the Governmental Accounting Standards Board.

“License” means a certificate issued under 2001 Iowa Acts, chapter 55, section 6 or 19, a permit issued under 2001 Iowa Acts, chapter 55, section 7, or a license or permit under 2001 Iowa Acts, chapter 55, section 8, or a certificate, permit or license issued under corresponding prior law.

“Licensed public accountant” means a person licensed by the board who does not hold a certificate as a certified public accountant under this chapter and who offers to perform or performs for the public any of the following services:

1. Recording financial transactions in books of record.

2. Making adjustments of financial transactions in books of record.

3. Making trial balances from books of record.

4. Preparing internal verification and analysis of books or accounts of original entry.

5. Preparing financial statements, schedules, or reports.

6. Devising and installing systems or methods of bookkeeping, internal controls of financial data, or the recording of financial data.

7. Preparing compilations.

“Licensed public accounting firm” means a sole proprietorship, professional corporation, partnership, professional limited liability company, limited liability partnership or any other form of organization issued a permit to practice as a firm of licensed public accountants under 2001 Iowa Acts, chapter 55, section 8.

“Licensee” means the holder of a license.

“LPA” means licensed public accountant.

“Managing partner,” “managing shareholder,” or “managing member” means the designated individual with ultimate responsibility for the operation of a firm’s practice.

“NASBA” means the National Association of State Boards of Accountancy.

“NSA” means the National Society of Accountants.

“Office” means any work space identified or advertised to the general public as being connected with any firm of CPAs or LPAs where business is conducted.

“Owner” means any person who has equity ownership interest in a CPA or LPA firm.

“Peer review,” as used in Chapters 11 and 12 of these rules, means a study, appraisal, or review of one or more aspects of the professional work of a licensee or firm that issues attest or compilation reports, by a licensed person or persons not affiliated with the licensee or firm being reviewed. “Peer review” does not include a peer review conducted pursuant to Iowa Code chapter 272C in connection with a disciplinary investigation.

“Person,” unless the context indicates otherwise, means individuals, sole proprietorships, partnerships, corporations, limited liability companies, limited liability partnerships or other forms of entities.

“Person associated with a CPA or LPA” means any owner, partner, shareholder, member, employee, assistant, or independent contractor of a CPA or LPA firm.

“Practice of public accounting” means the performance or the offering to perform, by a person holding oneself out to the public as a certified public accountant or a licensed public accountant, one or more kinds of professional services involving the use of accounting, attest, or auditing skills, including the issuance of reports on financial statements, or of one or more kinds of management advisory, financial advisory, or consulting services, or the preparation of tax returns or the furnishing of advice on tax matters. However, with respect to licensed public accountants, the “practice of public accounting” shall not include attest or auditing services or the rendering of an opinion attesting to the reliability of any representation embracing financial information.

“Projection” means prospective financial statements that present, to the best of the responsible party’s knowledge and belief given one or more hypothetical assumptions, an entity’s expected financial position, results of operations, and changes in financial position or cash flows that are based on the responsible party’s assumptions reflecting conditions it expects would exist and the course of action it expects would be taken given such hypothetical assumptions.

“Report,” when used with reference to financial statements, means a report, opinion, or other form of a writing that states or implies assurance as to the reliability of any financial statements and that includes or is accompanied by a statement or implication that the person or firm issuing the report has special knowledge or competence in accounting or auditing. Such statement or implication of special knowledge or competence may arise from use by the issuer of the report of names or titles indicating that the person or firm is an accountant or auditor, or from the language of the report itself. “Report” includes any form of language which disclaims an opinion when such form of language is conventionally understood to imply a positive assurance as to the reliability of the financial statements referred to or special knowledge or competence on the part of the person or firm issuing the language, and any other form of language that is conventionally understood to imply such assurance or such special knowledge or competence.

“Respondent” means any person against whom a formal statement of charges has been filed or any person whose legal right provided for in 2001 Iowa Acts, chapter 55, shall be determined or affected.

“Review” means to perform inquiry and analytical procedures that permit a CPA to determine whether there is a reasonable basis for expressing limited assurance that there are no material modifications that should be made to financial statements in order for them to be in conformity with generally accepted accounting principles or, if applicable, with another comprehensive basis of accounting.

“SAS” means statements on auditing standards.

“SSARS” means the statements on standards for accounting and review services.

“State” means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or Guam.

“Substantial equivalency” means a determination by the board that the education, examination, and experience requirements contained in the statutes and administrative rules of another jurisdiction are comparable to, or exceed, the education, examination, and experience requirements contained in these rules or that an individual licensee’s education, examination, and experience qualifications are comparable to or exceed the education, examination, and experience requirements contained 2001 Iowa Acts, chapter 55, section 6.

“Year,” when used in the context as a time measurement of experience in accounting work, means a period of 365 days.

This rule is intended to implement 2001 Iowa Acts, chapter 55.

CHAPTER 2
ORGANIZATION AND ADMINISTRATION

2.1(1) The purpose of the accountancy examining board is to administer and enforce the provisions of 2001 Iowa Acts, chapter 55, (Accountancy Act of 2001) with regard to the practice of accountancy in the state of Iowa including the examining of candidates; issuing of certificates and licenses; granting of permits to practice accountancy; investigating violations and infractions of the accountancy law; disciplining certificate holders, licensees or permit holders; and imposing civil penalties against nonlicensees. To this end, the board has promulgated these rules to clarify the board’s intent and procedures.

2.1(2) The primary mission of the board is to protect the public interest. All board rules shall be construed as fostering the guiding policies and principles described in 2001 Iowa Acts, chapter 55, section 2. The board and its licensees shall strive at all times to protect the public interest by promoting the reliability of information that is used for guidance in financial transactions or accounting for or assessing the financial status or performance of commercial, noncommercial, and governmental enterprises.

2.1(3) All official communications, including submissions and requests, should be addressed to the board at 1918 S.E. Hulsizer, Ankeny, Iowa 52001.

2.2(1) The board may appoint administrative committees of not less than two nor more than five members who shall be members of the board for the purpose of making recommendations on matters specified by the board.

2.2(2) An administrative committee may be appointed to make recommendations to the board concerning the board’s responsibilities as to examinations, registrations and licensing, continuing education, professional conduct, discipline and other board matters.

193A—2.3(79GA,ch55) Annual meeting. The annual meeting of the board shall be the first meeting scheduled after April 30. At this meeting the chairperson and secretary shall be elected to serve until their successors are elected. The newly elected officers shall assume the duties of their respective offices at the conclusion of the meeting at which they were elected.

193A—2.4(79GA,ch55) Other meetings. In addition to the annual meeting and subsequent meetings, the time and place of which may be fixed by resolution of the board, a meeting may be called by the chair of the board or by joint call of a majority of its members.

2.5(1) The board administrator shall ensure that complete records are kept of all applications for examination and registration, all certificates, licenses and permits granted, and all necessary information in regard thereto. The board administrator is the lawful custodian of the board records.

2.5(2) The board administrator shall determine when the legal requirements for licensure have been satisfied with regard to issuance of certificates, licenses or registrations; and the board administrator shall submit to the board any questionable application.

2.5(3) The board administrator shall keep accurate minutes of the meetings of the board. The board administrator shall keep a list of the names of persons issued certificates as certified public accountants, persons issued licenses as licensed public accountants, and all firms issued permits to practice.

2.5(4) The board administrator shall perform such additional administrative duties as are requested by the board or otherwise authorized by this chapter or the rules of the professional licensing and regulation division.

2.6(1) 2001 Iowa Acts, chapter 55, section 4, prohibits members of the board from disclosing a final examination score to persons other than the one who took the examination. For the purposes of this rule, “final score” includes information as to whether the candidate “passed,” “failed,” or “conditioned” the examination. Persons who take the examination may consent to the publication of their names on a list of passing candidates.

2.6(2) Other information relating to the examination results, including the specific grades by subject matter, shall be given only to the person who took the examination, except that the board may:

a. Disclose the specific grades by subject matter to the regulatory authority of any other state or foreign country in connection with the candidate’s application for a reciprocal certificate or license from the other state or foreign country, but only if requested by the applicant.

b. Disclose the specific grades by subject matter to educational institutions, professional organizations, or others who have a legitimate interest in the information, provided the names of the persons taking the examination are not provided in conjunction with the scores.

193A—2.7(79GA,ch55,17A,21,22,272C) Uniform division rules. Administrative and procedural rules which are common to all boards in the division can be found in the rules of the professional licensing and regulation division.

2.7(1) Person seeking waivers or variances from board rules should review the uniform division rules at 193—Chapter 5.

2.7(2) Rules outlining procedures regarding investigatory subpoenas can be found at 193—Chapter 6.

2.7(3) Rules regarding contested cases appear at 193— Chapter 7.

2.7(4) Rules regarding denial of issuance or renewal of license for nonpayment of child support or student loan appear at 193—Chapter 8.

2.7(5) Rules outlining procedures for petitions for rule making are at 193—Chapter 9.

2.7(6) Rules regarding procedures to be followed when seeking declaratory orders can be found at 193—Chapter 10.

2.7(7) Rules regarding sales of goods and services by board or commission members appear at 193—Chapter 11.

2.7(8) Rules regarding impaired licensee review committees appear at 193—Chapter 12.

2.7(9) Rules covering public records and fair information practices appear at 193—Chapter 13.

These rules are intended to implement chapters 17A, 21, 22, 272C and 2001 Iowa Acts, chapter 55.

CHAPTER 3
CERTIFICATE AS A
CERTIFIED PUBLIC ACCOUNTANT

3.1(1) A person of good moral character who makes application pursuant to 2001 Iowa Acts, chapter 55, section 6, may be granted a certificate as a certified public accountant if the person satisfies all of the following qualifications:

a. Satisfactory completion of the educational requirements of 2001 Iowa Acts, chapter 55, section 5(7), and rule 193A—3.2(79GA,ch55);

b. No less than one year of verified experience including the types of services described in 2001 Iowa Acts, chapter 55, section 5(12), and rule 193A—3.11(79GA,ch55); and

c. Successful completion of the examination described in 2001 Iowa Acts, chapter 55, section 5(8), and rule 193A— 3.6(79GA,ch55) and the ethics course and examination outlined in 193A—3.12(79GA,ch55).

3.1(2) An application may be denied if the applicant:

a. Has been convicted of a crime described in 2001 Iowa Acts, chapter 55, section 5(2);

b. Has had a professional license of any kind revoked in this or any other jurisdiction, as provided in 2001 Iowa Acts, chapter 55, section 5(3);

c. Makes a false statement of material fact on an application for a certificate or is otherwise implicated in the submission of a false application as provided in 2001 Iowa Acts, chapter 55, section 5(4); or

d. Demonstrates a lack of moral character in a manner which the board reasonably believes will impair the applicant’s ability to practice public accountancy in full compliance with the public interest and state policies described in 2001 Iowa Acts, chapter 55, section 2. While it is not possible to itemize all actions or behaviors which may demonstrate a lack of moral character, the following nonexclusive list of factors will guide the board in making its determination:

(1) A pattern and practice of making false or deceptive representations, or of omitting material facts, while providing the public any of the services described in 2001 Iowa Acts, chapter 55, section 3(20).

(2) Fraud or dishonesty while advertising or selling goods or services to the public.

(3) Willful or repeated failure to timely file tax returns or other mandatory submittals due a governmental body.

(4) Fiscally irresponsible behavior in the absence of mitigating circumstances.

193A—3.2(79GA,ch55) Colleges or universities recognized by the board. 2001 Iowa Acts, chapter 55, section 5, in providing for educational qualifications for a certificate as certified public accountant, refers to colleges or universities “recognized by the board.” For such purpose, the board recognizes educational institutions accredited by the American Assembly of Collegiate Schools of Business and the regional accrediting bodies listed in the current publication of the Accredited Institutions of Post Secondary Education, which listing is made a part of these rules by reference.

This rule is intended to implement 2001 Iowa Acts, chapter 55, section 5.

3.3(1) On or before December 31, 2000, Iowa Code section 542C.5 in providing for educational requirements for a certificate as a certified public accountant, refers to “substantially the equivalent of an accounting concentration, including related courses in other areas of business administration.” The requirement for “substantially the equivalent of an accounting concentration” shall be deemed to have been met whether the candidate has a nonaccounting baccalaureate degree supplemented by additional courses or has a baccalaureate degree with a major in accounting provided the candidate has satisfactorily completed a minimum of 48 semester hours, or the equivalent thereof, in accounting and related subjects. Not less than 24 hours shall be in accounting courses, of which at least one course shall be in auditing; and the remainder may be in the subjects of economics, business statistics, business law, finance, business management, marketing, business communication, or other business–related subjects. Mathematics courses shall not qualify unless the course is business math.

A candidate for examination qualifying under this subrule must have passed at least one subject of the examination prior to January 1, 2001, and must successfully complete all subjects of the examination by December 31, 2003, or meet the requirements outlined in subrule 3.3(2).

3.3(2) On or after January 1, 2001, a candidate will be deemed to have met the educational requirement if, as part of the 150 semester hours of education as outlined in 2001 Iowa Acts, chapter 55, section 5, the candidate has met one of the following four conditions:

a. Earned a graduate degree with a concentration in accounting from a program that is accredited in accounting by an accrediting agency recognized by the board.

b. Earned a graduate degree in business from a program that is accredited in business by an accrediting agency recognized by the board and completed at least 24 semester hours in accounting including courses covering the subjects of financial accounting, auditing, taxation, and management accounting. Such accounting hours shall not include elementary accounting or principles of accounting, internships or life experience.

c. Earned a baccalaureate degree in business or accounting from a program that is accredited in business by an accrediting agency recognized by the board and completed at least 24 semester hours in accounting courses covering the subjects of financial accounting, auditing, taxation, and management accounting. Such accounting hours shall not include elementary accounting or principles of accounting, internships or life experience.

d. Earned a baccalaureate or higher degree and completed the following hours from an accredited institution recognized by the board:

(1) At least 24 semester hours in accounting courses above elementary accounting or principles of accounting covering the subjects of financial accounting, auditing, taxation, and management accounting, not including internships or life experience; and

(2) At least 24 additional semester hours in business–related courses, not including internships or life experience. Elementary accounting hours that do not qualify under subparagraph 3.3(2)“d”(1) may apply toward business–related courses.

Quarter hours will be accepted in lieu of semester hours at a 3:2 ratio; that is, three quarter hours is equivalent to two semester hours. Internships and life experience hours may apply toward the total 150 hours’ requirement.

3.3(3) The board may admit to the examination a candidate who will complete the educational requirements for a baccalaureate degree with a concentration in accounting as provided in subrule 3.3(2) within 120 days immediately following the date of the examination or who has completed those requirements. However, the board shall not report the results of the examination until the candidate has met the educational requirements for a baccalaureate degree and shall not issue the certificate until the candidate has fully satisfied the requirements of 2001 Iowa Acts, chapter 55, sections 5(7) and 5(12).

3.3(4) The board will consider correspondence study and study in other schools not meeting the above requirements on an individual basis if the candidate can provide evidence that such study would be acceptable for credit by a college or university recognized by the board; provided, however, that at least 18 of the required hours in accounting and at least 16 of the required hours in business–related subjects must be obtained in a college or university recognized by the board.

3.3(5) The applicant’s claim to college or university credits must be confirmed by an official transcript of credit issued by the institution in question. The applicant shall be responsible for having such transcripts sent to the board’s test administrator at the time of making application. The applicant shall also be responsible for having any institution not listed under rule 193A—3.2(79GA,ch55) furnish the board evidence that it meets the accreditation requirements of the board. In addition, the applicant is responsible for all material being in possession of the test administrator by the deadline for filing applications. Otherwise, the application shall be considered incomplete and shall not be approved by the board.

3.3(6) Graduates of foreign colleges or universities shall have their education evaluated by a foreign credentials evaluation advisory service specified by the board.

3.4(1) An individual desiring to take the certified public accountant examination should apply on the form provided by the board’s test administrator by the deadline established in rule 193A—3.5(79GA,ch55).

3.4(2) To be eligible to take the examination as a reexamination applicant, the candidate shall have fulfilled the requirements of rule 193A—3.3(79GA,ch55).

3.4(3) A candidate for the examination who has been convicted in a court of competent jurisdiction in this state, or another state, territory, or a district of the United States, or in a foreign jurisdiction of forgery, embezzlement, obtaining money under false pretenses, theft, extortion, conspiracy to defraud, or other similar offense, or of any crime involving moral character or dishonesty may be denied admittance to the examination by the board on the grounds of the conviction. For purposes of this subrule, “conviction” means a conviction for an indictable offense and includes a guilty plea, deferred judgment from the time of entry of the deferred judgment until the time the defendant is discharged by the court without entry of judgment, or other finding of guilt by a court of competent jurisdiction.

3.4(4) A candidate for examination who has had a professional license of any kind revoked in this or any other jurisdiction may be denied admittance to the examination by the board on the grounds of the revocation.

3.4(5) A candidate who makes a false statement of material fact on an application for examination for a certificate, or who causes to be submitted or has been a party to preparing or submitting a false application for a certificate, may be denied a certificate by the board on the grounds of the false statement or submission.

3.4(6) A candidate may be considered as a reexamination applicant regardless of whether or not the candidate sat for the examination once initially approved. Reexamination applicants may apply by telephone to the board’s test administrator or may apply on–line if the technology is available.

3.4(7) A nonrefundable proctoring fee shall be collected from a candidate who wishes to be proctored in Iowa.

193A—3.5(79GA,ch55) Deadline for filing applications. Examinations are ordinarily held in May and November of each year, and all applications to take the examinations must be filed during the period of January 1 to the last day of February for the May examination and during the period of July 1 to August 31 for the November examination. Applications will not be considered filed until they are complete in all respects. Applications shall be deemed filed on the date received by the board’s test administrator or, if mailed, the date postmarked, but not the date metered. Late applications will not be accepted.

This rule is intended to implement 2001 Iowa Acts, chapter 55, section 5.

3.6(1) The board may make use of the uniform certified public accountant examination prepared by the American Institute of Certified Public Accountants under a plan of cooperation with the boards of all states and territories of the United States.

3.6(2) The board may also make use of the advisory grading service provided by the American Institute of Certified Public Accountants under a plan of cooperation with the boards of all states and territories of the United States.

3.6(3) The identity of the person taking the examination shall be concealed until after the examination papers have been graded by the advisory grading service. A grade of at least 75 in each subject shall be considered passing.

3.7(1) A candidate must take all subjects at one sitting until the candidate achieves the status of conditional candidate or passes all subjects.

3.7(2) A candidate who at any examination passes two or more subjects and obtains a grade of not less than 50 in each subject failed shall be considered as a conditional candidate in the subjects successfully passed. However, the minimum grade requirement will be waived if three subjects are passed at a single sitting.

3.7(3) A candidate who achieves conditional standing shall be credited with the subjects in which the candidate received passing grades. A conditional candidate may, upon payment of the required fee, appear for reexamination in the subject or subjects failed at any of the next six semiannual examinations.

3.7(4) When a conditional candidate appears for reexamination, the candidate must take all subjects for which failing grades were received. To obtain credit for a subject or subjects passed upon reexamination, the conditional candidate must obtain a grade of not less than 50 in each subject failed. A grade of less than 50 shall have no effect on a prior condition.

3.7(5) If, on reexamination, the candidate fails to pass the remaining subject or subjects within the time provided for reexamination in subrule 3.7(3), such candidate shall revert to the status of a new applicant, take the entire examination, and pay the appropriate fee.

3.7(6) The time limit within which a candidate is required to pass all subjects under this rule shall not include any period during which the applicant was serving in the armed forces of the United States. This exception does not apply if the candidate takes an examination while so serving. The board may extend the time limit in particular instances on a case–by–case basis.

3.7(7) The time limit within which a candidate is required to pass all subjects under this rule may be extended for hardship cases, such as when the applicant for the examination is prevented from attending for such reasons as unexpected illness, verified by a medical doctor, or a death in the family, verified in writing.

3.7(8) A candidate requesting transfer of grades from any other jurisdiction will be subject to the same provisions of this rule as an Iowa candidate, provided the examination given by the licensing authority in the other state was an examination approved by the Iowa board.

3.7(9) A candidate requesting transfer of grades from any other jurisdiction who does not meet the provisions of this rule, but who meets all of the requirements for issuance of an original certificate in the examining state other than residency, may, at the board’s discretion, be required to take at least one section of the examination designated by the board.

This rule is intended to implement 2001 Iowa Acts, chapter 55, section 5.

3.8(1) At the examination, a candidate must provide evidence of the identification of the candidate with some official document, such as a driver’s license, student identification, service identification, or passport that contains the candidate’s photograph. The candidate will be known at the examination by the candidate identification number alone and the number shall be placed on every sheet containing computations for or answers to the examination questions.

Under no circumstances shall a candidate’s name, initials, or any identifying mark, other than the assigned number be placed on any of the examination papers. Failure to comply with this requirement shall be deemed misconduct sufficient for rejecting the candidate’s papers.

3.8(2) Answers must be submitted on blanks furnished by the board’s test administrator and must be completed in the total time allotted for each subject.

3.8(3) Stationery and supplies furnished by the board’s test administrator shall remain the administrator’s property and must be returned whether used or not.

3.8(4) In the event that any examination papers are lost, the liability of the board or its test administrator will be limited to the fee paid by the applicant for the examination.

3.9(1) Any individual who subverts or attempts to subvert the examination process may, at the discretion of the board, have the individual’s examination scores declared invalid for the purpose of certification in Iowa, be barred from accountancy licensing and certification examinations in Iowa, or be subject to the imposition of other sanctions the board deems appropriate.

3.9(2) Conduct that subverts or attempts to subvert the examination process includes, but is not limited to:

a. Conduct which violates the security of the examination materials, such as removing from the examination room any of the examination materials; reproducing or reconstructing any portion of the licensing examination; aiding by any means in the reproduction or reconstruction of any portion of the licensing examination; selling, distributing, buying, receiving, or having unauthorized possession of any portion of a future, current, or previously administered licensing examination.

b. Conduct which violates the standards of test administration, such as communicating with any other examination candidate during the administration of the licensing examination; copying answers from another candidate or permitting one’s answers to be copied by another candidate during the administration of the examination; having in one’s possession during the administration of the licensing examination any books, notes, written or printed materials or data of any kind, other than the examination materials distributed.

c. Conduct which violates the examination process, such as falsifying or misrepresenting educational credentials or other information required for admission to the licensing examination; impersonating an examination candidate or having an impersonator take the licensing examination on one’s behalf.

3.9(3) Any examination candidate who wishes to appeal a decision of the board under this rule may request a contested case hearing. The request for hearing shall be in writing, shall briefly describe the basis for the appeal, and shall be filed in the board’s office within 30 days of the date of the board decision being appealed. Any hearing requested under this subrule shall be governed by the rules applicable to contested case hearings under 193—Chapter 7.

193A—3.10(79GA,ch55) Refunding of examination fees. Examination fees shall not be refunded except as follows:

1. An applicant who is admitted but fails to attend the examination shall be rebated 50 percent of the prescribed fee provided notification that the applicant will not be present is received by the board 30 calendar days prior to the beginning of the examination.

2. Fifty percent of the prescribed fee shall be returned to an applicant whose application has been submitted and reviewed but who is found not qualified to take the examination.

3. In hardship cases, such as when the applicant for the examination is prevented from attending for such reasons as unexpected illness, verified by a medical doctor, a death in the family, or a call to active military service, 50 percent of the fee may be returned provided that under the circumstances it was not possible for the applicant to notify the board at least 30 calendar days prior to the beginning of the examination that the applicant could not be present. Written documentation of the hardship shall be provided to the board’s test administrator.

3.11(1) Experience shall include providing any type of service or advice involving the use of accounting, attest, compilation, management advisory, financial advisory, tax or consulting skills. Experience may be gained through employment in government, industry, academia, or public practice.

3.11(2) One year of experience shall consist of full– or part–time employment that extends over a period of no less than one year and no more than three years and includes no fewer than 2,000 hours of performance of services outlined in subrule 3.11(1). Experience may be gained in more than one employment situation, including an internship.

3.11(3) An applicant seeking qualification as an attest CPA shall have at a minimum two years of experience as more fully described in 193A—subrule 6.3(1).

3.11(4) All experience shall be verified by a licensee with direct supervisory control over the applicant or by a licensee who can attest that the experience gained by the applicant meets the requirements of subrule 3.11(1) if the applicant is not supervised by a licensee.

3.11(5) Teaching experience shall be in the employment of an institution of higher education and shall include teaching a minimum of 24 semester hours of accounting courses for which the course participants receive credit on an official transcript. Teaching of noncredit continuing education courses shall not qualify under this rule.

193A—3.12(79GA,ch55) Ethics course and examination. A successful candidate shall also be required to pass an examination covering the code of ethical conduct prior to issuance of the certificate.

193A—3.13(79GA,ch55) Obtaining the certificate. A candidate who successfully passes the examination and meets the experience requirements outlined in rule 193A— 3.11(79GA,ch55) shall make application for the certificate on a form which may be obtained from the board office. An applicant for certificate may be denied the certificate for reasons outlined in subrules 3.4(3), 3.4(4), and 3.4(5) regardless of when the incident occurred.

3.14(1) Only a person holding a certificate may use or assume the title “certified public accountant” or the abbreviation “CPA” or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that such person is a certified public accountant.

3.14(2) Rules regarding the use of the title “CPA” in a firm name are found at 193A—subrule 13.6(5).

These rules are intended to implement 2001 Iowa Acts, chapter 55.

CHAPTER 4
LICENSE AS A LICENSED PUBLIC ACCOUNTANT

4.1(1) A person of good moral character who makes application pursuant to 2001 Iowa Acts, chapter 55, section 8, may be granted a license as a licensed public accountant if the person satisfies all of the following qualifications:

a. Satisfactory completion of the educational requirements of 2001 Iowa Acts, chapter 55, section 8(1), and rule 193A—4.2(79GA,ch55);

b. No less than one year of verified experience including the types of services described in 2001 Iowa Acts, chapter 55, section 8(8), and rule 193A—4.12(79GA,ch55); and

c. Successful completion of the examination described in 2001 Iowa Acts, chapter 55, section 8(3), and rule 193A— 4.7(79GA,ch55) and the ethics course and examination outlined in 193A—4.13(79GA,ch55).

4.1(2) An application may be denied if the applicant:

a. Has been convicted of a crime;

b. Has had a professional license of any kind revoked in this or any other jurisdiction;

c. Makes a false statement of material fact on an application for a license or is otherwise implicated in the submission of a false application; or

d. Demonstrates a lack of moral character in a manner that the board reasonably believes will impair the applicant’s ability to practice public accountancy in full compliance with the public interest and state policies described in 2001 Iowa Acts, chapter 55, section 2. While it is not possible to itemize all actions or behaviors which may demonstrate a lack of moral character, the following nonexclusive list of factors will guide the board in making its determination:

(1) A pattern and practice of making false or deceptive representations, or of omitting materials facts, while providing the public any of the services.

(2) Fraud or dishonesty while advertising or selling goods or services to the public.

(3) Willful or repeated failure to timely file tax returns or other mandatory submittals due a governmental body.

(4) Fiscally irresponsible behavior in the absence of mitigating circumstances.

4.2(1) An individual desiring to take the examination to qualify for a license as a licensed public accountant shall apply on a form that may be obtained from the board office or on the board’s Web site. Different forms will be provided for original examinations and reexaminations.

4.2(2) To be eligible to take the examination, the applicant must meet the requirements of 2001 Iowa Acts, chapter 55, section 8(1)(b), at the time of filing the application.

4.2(3) A candidate for the examination who has been convicted in a court of competent jurisdiction in this state, or another state, territory, or a district of the United States, or in a foreign jurisdiction of forgery, embezzlement, obtaining money under false pretenses, theft, extortion, conspiracy to defraud, or other similar offense, or of any crime involving moral character or dishonesty may be denied admittance to the examination by the board on the grounds of the conviction. For purposes of this subrule, “conviction” means a conviction for an indictable offense and includes a guilty plea, deferred judgment from the time of entry of the deferred judgment until the time the defendant is discharged by the court without entry of judgment, or other finding of guilt by a court of competent jurisdiction.

4.2(4) A candidate for examination who has had a professional license of any kind revoked in this or any other jurisdiction may be denied admittance to the examination by the board on the grounds of the revocation.

193A—4.3(79GA,ch55) Major in accounting. In determining whether the requirement in 2001 Iowa Acts, chapter 55, section 8(1)(b)(2), as to a “major in accounting” has been met, the board will follow the rules associated with a “concentration in accounting” outlined in 193A—paragraph 3.3(2)“c.”

193A—4.4(79GA,ch55) Transcripts required. The applicant’s claim to college, university, business school, or correspondence school credit must be confirmed by an official transcript issued by the institution. The applicant shall be responsible for having such transcripts sent to the board at the time of making application. The applicant shall also be responsible for having the institution furnish the board evidence that the institution meets the accreditation requirements of the board. The applicant is also responsible for all such material being in possession of the board by the deadline for filing the application; otherwise, the application shall be considered incomplete and disapproved by the board.

193A—4.5(79GA,ch55) Deadline for filing applications. Examinations are ordinarily held in June and December of each year, and all applications to take the examinations must be filed during the period of January 1 to March 31 for the June examination, and during the period of July 1 to September 30 for the December examination. Applications will not be considered as filed until they are complete in all respects. Applications shall be deemed filed on the date received by the board or, if mailed, the date postmarked, but not the date metered, whichever is earlier. Late applications will not be accepted.

193A—4.6(79GA,ch55) Admittance prior to completing educational requirements. The board may admit to the examination described in 2001 Iowa Acts, chapter 55, section 8(2), any candidate who will complete the educational requirements set forth in 2001 Iowa Acts, chapter 55, section 8(1)(b)(2), within 120 days immediately following the date of the examination. However, the board shall not report the results of the examination until the candidate has met the educational requirements or the experience requirements of 2001 Iowa Acts, chapter 55, section 8(1)(b)(2).

4.7(1) The board may use the examination prepared by the Accreditation Council for Accountancy and Taxation. The examination shall not include any questions regarding auditing or attest functions.

4.7(2) The board may use the grading services provided by the Accreditation Council for Accountancy and Taxation.

4.7(3) The identity of the person taking the examination shall be concealed until after the examination papers have been graded. A grade of at least 75 in each subject shall be passing.

4.7(4) Alternatively, an applicant may satisfy the examination requirement of this rule by passing the Financial Accounting and Reporting–Business Enterprises and Accounting and Reporting–Taxation, Managerial, Governmental and Not–for–Profit Organization sections of the CPA examination provided by the AICPA.

4.8(1) An applicant must take all subjects at one sitting unless the applicant becomes a conditional candidate or passes all subjects.

4.8(2) If an applicant receives a passing grade in any of the subjects and obtains a grade of not less than 50 in the subject or subjects failed, the applicant shall be considered a conditional candidate entitled to receive credit for the subject or subjects passed and be reexamined in the subject or subjects not passed during the next six succeeding examinations upon payment of the required fee.

4.8(3) The time limit within which an applicant is required to pass all subjects under this rule shall not include any period during which the applicant was serving in the armed forces of the United States, unless the applicant takes an examination while so serving, in which case such time shall be included in computing the time limitation.

4.8(4) The time limit within which a candidate is required to pass all subjects under this rule may be extended for hardship cases, such as when the applicant for the examination is prevented from attending for such reasons as unexpected illness, verified by a medical doctor, or a death in the family, verified in writing.

193A—4.9(79GA,ch55) Examination procedures. The examination procedures to be followed by a candidate for the certified public accountants’ examination as outlined in rule 193A—3.8(79GA,ch55) shall also apply to a licensed public accountant examination candidate.

193A—4.10(79GA,ch55) Refunding of examination fees. Examination fees will not be refunded except as provided by the rules concerning the refunding of examination fees to an examination candidate for a certified public accountant certificate outlined in 193A—3.10(79GA,ch55).

193A—4.11(79GA,ch55) Credit for an examination taken in another state. A candidate who has partially passed an examination in another state will be given credit for the part or parts passed, provided the candidate meets the conditioning requirements of the board and further provided the examination given by the licensing authority in the other state was an examination prepared and graded by the Board of Examiners of the American Institute of Certified Public Accountants or the Accreditation Council for Accountancy and Taxation.

4.12(1) Experience shall include providing any type of service or advice involving the use of accounting, compilation, management advisory, financial advisory, tax or consulting skills. Experience may be gained through employment in government, industry, academia, or public practice.

4.12(2) One year of experience shall consist of full– or part–time employment that extends over a period of no less than one year and no more than three years and includes no fewer than 2,000 hours of performance of services outlined in subrule 4.12(1). Experience may be gained in more than one employment situation, including an internship.

4.12(3) All experience shall be verified by a licensee with direct supervisory control over the applicant or by a licensee who can attest that the experience gained by the applicant meets the requirements of subrule 4.12(1) if the applicant is not supervised by a licensee.

4.12(4) Teaching experience shall be in the employment of an institution of higher education and shall include teaching a minimum of 24 semester hours of accounting courses for which the course participants shall receive credit on an official transcript. Teaching of noncredit continuing education courses shall not qualify under this rule.

193A—4.13(79GA,ch55) Ethics course and examination. A successful candidate shall also be required to pass an examination covering the code of ethical conduct prior to issuance of the license.

193A—4.14(79GA,ch55) Statement on standards for accounting and review services (SSARS) education. An LPA license applicant who will be responsible for supervising compilation services or who signs or authorizes someone to sign the accountant’s compilation report on the financial statements shall complete a minimum of seven hours of continuing education devoted to statements on standards for accounting and review services (SSARS) prior to issuance of the license. An LPA license applicant is exempt from this requirement if the applicant has passed the CPA examination provided by the AICPA.

193A—4.15(79GA,ch55) Obtaining the license. A candidate who successfully passes the examination and completes requirements outlined in rules 193A—4.12(79GA,ch55), 4.13(79GA,ch55) and 4.14(79GA,ch55) shall make application for licensure on a form available from the board office. An applicant shall list on the application all states in which the applicant has applied for or holds a certificate, license or permit and shall also list any past denial, revocation, suspension, refusal to renew or voluntary surrender to avoid disciplinary action of a certificate, license or permit. An applicant shall notify the board in writing within 30 days after the occurrence of any issuance, denial, revocation, suspension, refusal to renew, or voluntary surrender to avoid disciplinary action of a certificate, license or permit by another state. An applicant for license may be denied the license for reasons outlined in subrule 4.1(2) regardless of when the incident occurred.

4.16(1) The examination required by 2001 Iowa Acts, chapter 55, section 8, will be waived for an applicant who has passed the examination required under the laws of another state, provided the examination given by the licensing authority of the other state was an examination prepared and graded by the Board of Examiners of the American Institute of Certified Public Accountants or the Accreditation Council for Accountancy and Taxation.

4.16(2) For the purpose of 2001 Iowa Acts, chapter 55, section 8, the title by which such other state designates its accountants shall not be controlling, but the matter shall be controlled by substantive requirements, whether such accountants be called licensed public accountants, public accountants, accounting practitioners or any other similar title.

4.16(3) A person desiring a license as a licensed public accountant in this state on the basis of a licensed public accountant license issued by another state must apply upon a form that may be obtained from the board office. The burden is on the applicant to obtain information satisfactory to the board that the applicant’s license in such other state is in full force and effect and that the requirements for obtaining such license were substantially equivalent to those of this state to obtain a license as a licensed public accountant.

4.16(4) An applicant shall list on the application all states in which the applicant has applied for or holds a certificate, license or permit and shall also list any past denial, revocation, suspension, refusal to renew or voluntary surrender to avoid disciplinary action of a certificate, license, or permit. An applicant shall notify the board in writing within 30 days after the occurrence of any issuance, denial, revocation, suspension, refusal to renew or voluntary surrender to avoid disciplinary action of a certificate, license or permit by another state.

4.16(5) An applicant shall affirm that all information provided on the form is true and correct. Providing false information shall be considered prima facie evidence of a violation of 2001 Iowa Acts, chapter 55. A nonrefundable application fee will be charged each applicant.

193A—4.17(79GA,ch55) Use of title. Only a person holding a license as a licensed public accountant shall use or assume the title “licensed public accountant” or the abbreviation “LPA” or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that such person is a licensed public accountant.

These rules are intended to implement 2001 Iowa Acts, chapter 55, section 8.

CHAPTER 5
RENEWAL OF CERTIFICATES AND LICENSES

193A—5.1(79GA,ch55) Biennial renewal. To maintain the certificate of certified public accountant granted by the board under 2001 Iowa Acts, chapter 55, section 6 or 19, or the license to practice as a licensed public accountant granted under 2001 Iowa Acts, chapter 55, section 8, certificates and licenses shall be renewed biennially. Licensees whose last names begin with A to K will renew in even–numbered years. Licensees whose last names begin with L to Z will renew in odd–numbered years. The renewal of certificates and licenses, as required by 2001 Iowa Acts, chapter 55, sections 6 and 8, shall be on the basis of a biennial expiration date of June 30, upon forms that may be obtained from the board office or on the board’s Web site. A biennial renewal fee will be charged.

5.2(1) A holder of a certificate as a certified public accountant or a license as an accounting practitioner issued under prior laws shall be permitted to restore the certificate or license to an effective status at some future date upon the payment of a penalty of $100 and the current renewal fee and by providing evidence of completed continuing education even though the holder had, prior to that date, ceased to renew with the board.

5.2(2) An applicant who wishes to restore a certificate or license to effective status must meet the basic requirement of 120 hours earned in the preceding three–year period prior to the date of application to restore effective status. The hours claimed to restore effective status cannot again be used at the next renewal.

5.3(1) An application to renew a CPA certificate or LPA license can be obtained from the board office or on the board’s Web site. While the board generally mails renewal applications in the May preceding certificate or license expiration, neither the board’s failure to mail nor a licensee’s failure to receive an application shall excuse the requirement to timely renew and pay the renewal fee.

5.3(2) A licensee shall notify the board within 30 days of any change of address or business connection.

5.4(1) A licensee shall file a timely and sufficient renewal application with the board by the June 30 deadline in the biennial renewal year. An application shall be deemed filed on the date received by the board or, if mailed, the date postmarked, but not the date metered.

5.4(2) An applicant for renewal under this chapter shall disclose on the application all background and character information requested by the board, including, but not limited to:

a. All states or foreign jurisdictions in which the applicant has applied for or holds a CPA certificate or license, an LPA license, or a substantially equivalent designation from a foreign country;

b. Any past denial, revocation, suspension, or refusal to renew a CPA certificate, license or permit to practice or LPA license, or the voluntary surrender of a CPA certificate, license or permit or LPA license to resolve or avoid disciplinary action, or similar actions concerning a substantially equivalent foreign designation;

c. Any other form of discipline imposed against a CPA certificate, license or permit, LPA license, or a substantially equivalent foreign designation;

d. The conviction of any crime; and

e. The revocation of a professional license of any kind in this or any other jurisdiction.

5.4(3) A licensee who performs compilation services for the public other than through a certified public accounting or licensed public accounting firm shall submit a certificate of completion of a peer review conducted in accordance with 193A—Chapter 11 no less often than once every three years.

5.4(4) Within the meaning of Iowa Code subsection 17A.18(2), a timely and sufficient renewal application shall be:

a. Received by the board in person or electronic form or postmarked with a nonmetered United States Postal Service postmark on or before the date the license is set to expire or lapse;

b. Signed by the licensee if submitted in person or mailed, or certified as accurate if submitted electronically;

c. Fully completed, including continuing education, if applicable; and

d. Accompanied with the proper fee. The fee shall be deemed improper if, for instance, the amount is incorrect, the fee was not included with the application, the credit card number provided by the applicant is incorrect, the date of expiration of a credit card is omitted or incorrect, the attempted credit card transaction is rejected, or the applicant’s check is returned for insufficient funds or a closed account.

5.4(5) The administrative processing of an application to renew an existing license shall not prevent the board from subsequently commencing a contested case to challenge the licensee’s qualifications for continued licensure if grounds exist to do so.

5.4(6) If grounds exist to deny a timely and sufficient application to renew, the board shall send written notification to the applicant by restricted certified mail, return receipt requested. Grounds may exist to deny an application to renew if, for instance, the licensee failed to satisfy the continuing education as required as a condition for licensure. If the basis for denial is pending disciplinary action or disciplinary investigation which is reasonably expected to culminate in disciplinary action, the board shall proceed as provided in 193—Chapter 7. If the basis for denial is not related to a pending or imminent disciplinary action, the applicant may contest the board’s decision as provided in 193—subrule 7.39(1).

5.4(7) When a licensee appears to be in violation of mandatory continuing education requirements, the board may, in lieu of proceeding to a contested case hearing on the denial of a renewal application as provided in rule 193— 7.39(546,272C), offer a licensee the opportunity to sign a consent order. While the terms of the consent order will be tailored to the specific circumstances at issue, the consent order will typically impose a penalty between $50 and $250, depending on the severity of the violation; establish deadlines for compliance; and may impose additional educational requirements on the licensee. A licensee is free to accept or reject the offer. If the offer of settlement is accepted, the licensee will be issued a renewed certificate of registration and will be subject to disciplinary action if the terms of the consent order are not complied with. If the offer of settlement is rejected, the matter will be set for hearing, if timely requested by the applicant pursuant to 193—subrule 7.39(1).

5.4(8) Certificate or license holders who continue to practice public accounting as a CPA or an LPA in Iowa after their certificate or license has expired shall be subject to disciplinary action. Such unauthorized activity may also be grounds to deny a licensee’s application for reinstatement.

5.5(1) A person who fails to renew the certificate or license by the expiration date, but does so within 30 days following its expiration date, shall be assessed a penalty of 25 percent of the biennial renewal fee.

5.5(2) If the holder fails to renew the certificate or license within the 30–day grace period outlined in subrule 5.5(1) the certificate or license will lapse and the licensee shall be required to reinstate in accordance with subrule 5.5(3). The licensee is not authorized to practice during the period of time that the certificate or license is lapsed.

5.5(3) The board may reinstate the certificate or license upon the applicant’s payment of a penalty of $100 and provision of evidence of completed continuing education outlined in rule 193A—10.3(79GA,ch55).

193A—5.6(272C,79GA,ch55) Certificates and licenses property of the board. Every certificate or license granted by the board shall, while it remains in the possession of the holder, be preserved by the holder but shall, nevertheless, always remain the property of the board. In the event that the certificate or license is revoked, suspended, or is not renewed in the manner prescribed by 2001 Iowa Acts, chapter 55, or Iowa Code chapter 272C, it shall, on demand, be delivered by the holder to the administrator of the board.

193A—5.7(79GA,ch55) Licensee’s continuing duty to report. A licensee shall notify the board in writing of the licensee’s conviction of a crime within 30 days of the date of conviction. “Conviction” is defined in 2001 Iowa Acts, chapter 55, section 5(2). A licensee shall also notify the board in writing within 30 days of the date of any issuance, denial, revocation, or suspension of a certificate, license or permit by another state.

These rules are intended to implement Iowa Code chapter 272C and 2001 Iowa Acts, chapter 55.

CHAPTER 6
ATTEST SERVICE

193A—6.1(79GA,ch55) Applicability. The provisions of 2001 Iowa Acts, chapter 55, section 7, shall apply to each certificate holder who is responsible for supervising attest services and who signs or authorizes someone to sign the accountant’s report on behalf of a certified public accounting firm. A person seeking attest qualification under these rules shall file an application with the board on a form available from the board. A nonrefundable application fee shall be charged.

193A—6.2(79GA,ch55) Attest services restricted to CPA firm. Attest services as defined in 193A—1.1(79GA,ch55) may be provided only through a firm holding a permit to practice under the provisions outlined in 2001 Iowa Acts, chapter 55, section 7, and 193A—Chapter 7.

193A—6.3(79GA,ch55) Experience or competency requirements. The rules of professional conduct rest upon the premise that the reliance of the public in general and of the business community in particular on sound financial reporting and on the implication of professional competence inherent in the authorized use of a legally restricted title relating to the practice of public accountancy, imposes on persons engaged in such practice certain obligations both to their clients and to the public. These obligations include the obligation to maintain independence of thought and action; to strive continuously to improve one’s professional skills; to observe, where applicable, generally accepted accounting principles and generally accepted auditing standards; to promote sound and informative financial reporting; to hold the affairs of clients in confidence; and to maintain high standards of personal conduct in all matters affecting one’s fitness to practice public accountancy. It is for these reasons that the board requires attest CPAs to gain experience as outlined in this chapter.

6.3(1) A certificate holder who is responsible for supervising attest services or who signs or authorizes someone to sign the accountant’s report on financial statements on behalf of a firm shall have two years of full–time or part–time equivalent experience that extends over a period of no less than two years and no more than four years and includes no fewer than 4,000 hours, at least 2,000 of which shall be providing attest services under the supervision of one or more CPAs responsible for supervising attest services on behalf of a CPA firm that holds a permit to practice. Experience shall include all of the following:

a. Experience in applying a variety of auditing procedures and techniques to the usual and customary financial transactions recorded in accounting records.

b. Experience in the preparation of audit working papers covering the examination of the accounts usually found in accounting records.

c. Experience in the planning of the program of audit work including the selection of the procedures to be followed.

d. Experience in the preparation of written explanations and comments on the findings of the examinations and on the content of the accounting records.

e. Experience in the preparation and analysis of financial statements together with explanations and notes thereon.

6.3(2) A supervising CPA shall verify that the applicant for attest qualification has met the requirements outlined in subrule 6.3(1).

6.3(3) An applicant seeking attest qualification through the substantial equivalency provision outlined in 2001 Iowa Acts, chapter 55, section 19, and 193A—Chapter 9 shall affirm that the applicant meets the requirements under subrule 6.3(1). Providing false information shall be considered prima facie evidence of a violation of 2001 Iowa Acts, chapter 55.

6.3(4) Any certificate holder who has been requested to submit to the board evidence of an applicant’s experience and has refused to do so shall, upon request by the board, explain in writing or in person the basis for the refusal. The board may require any certificate holder who furnished the evidence of an applicant’s experience to substantiate the information provided. An applicant may be required to appear before the board to supplement or verify evidence of experience. The board may inspect documentation relating to an applicant’s claimed experience.

193A—6.4(79GA,ch55) Qualification under prior law. A person holding or having held an individual permit to practice as a CPA in this state issued prior to July 1, 2002, will be deemed to qualify to perform attest services on and after July 1, 2002, in a CPA firm holding a firm permit to practice, provided that appropriate continuing education is maintained as outlined in rule 193A—10.3(79GA,ch55).

These rules are intended to implement 2001 Iowa Acts, chapter 55, section 7.

CHAPTER 7
CERTIFIED PUBLIC ACCOUNTING FIRMS

7.1(1) A new firm, as defined in rule 193A— 1.1(79GA,ch55), about to engage in the practice of public accounting in this state under the requirements and provisions of 2001 Iowa Acts, chapter 55, section 7, shall make application for a permit to practice upon a form that may be obtained from the board office. A firm must hold a permit issued under 2001 Iowa Acts, chapter 55, section 7, and these rules in order to perform attest services or use the title “CPAs” or “CPA firm.” A nonrefundable application fee shall be charged.

7.1(2) The application shall include information that discloses the highest level of accounting service offered, such as compilation or attest.

7.1(3) The application shall list the names of all owners, a simple majority of whom shall hold certificates issued under 2001 Iowa Acts, chapter 55, section 6 or 19, or issued in some other state.

7.1(4) The application shall list the name and certificate number of any licensee who is responsible for supervising attest or compilation services and who signs or authorizes someone to sign the accountant’s report on financial statements on behalf of the firm. The application shall affirm that any licensee listed meets the competency requirements set forth in 193A—6.3(79GA,ch55).

7.1(5) The application shall list the number and location of offices within this state and name of the licensee in charge of such offices.

7.1(6) The application shall affirm that all attest and compilation services rendered in this state are under the charge of an individual who holds a valid certificate issued under 2001 Iowa Acts, chapter 55, section 6 or section 19(2), and who meets the competency requirements outlined in 193A— 6.3(79GA,ch55).

7.1(7) The application shall designate an individual who holds a valid certificate issued under 2001 Iowa Acts, chapter 55, section 6 or 19, as the person responsible for ensuring that the firm has complied with all requirements for a permit to practice.

7.1(8) The application shall affirm that all nonlicensee owners are participants in the firm or an affiliated entity.

7.1(9) The application shall affirm that all nonlicensees who are by statute required to comply with continuing education imposed by a regulatory authority meet those requirements.

7.1(10) The application for initial issuance of a permit shall list all states in which the applicant has applied for or holds a permit as a certified public accounting firm and list any past denial, revocation, or suspension of a permit by another state.

7.1(11) The application shall list the names of all non–CPA owners and provide information regarding any owner who has been convicted of a crime described in 2001 Iowa Acts, chapter 55, section 5(2), or who has had a professional license of any kind revoked in this or any other jurisdiction. The board may deny the application if a non–CPA owner has been convicted of a crime described in 2001 Iowa Acts, chapter 55, section 5(2), or has had a professional license of any kind revoked in this or any other jurisdiction.

193A—7.2(79GA,ch55) Annual renewal of permit. Applications to renew a permit to practice may be obtained from the board office or on the board’s Web site. While the board generally mails renewal applications in the May preceding permit expiration, neither the board’s failure to mail an application nor a permit holder’s failure to receive an application shall excuse the requirement to timely renew and pay the renewal fee.

7.3(1) The permit holder shall file a timely and sufficient renewal application with the board by the June 30 deadline each year. Applications shall be deemed filed on the date received by the board or, if mailed, the date postmarked, but not the date metered.

7.3(2) The permit holder shall list on the renewal application all states in which the applicant has applied for or holds a permit as a certified public accounting firm and list any past denial, revocation, suspension, refusal to renew or voluntary surrender to avoid disciplinary action of a permit to practice. Permit holders shall notify the board in writing within 30 days after the occurrence of any issuance, denial, revocation, suspension or refusal to renew or voluntary surrender of a permit to practice as a certified public accounting firm to avoid disciplinary action by another state.

7.3(3) Within the meaning of Iowa Code chapters 17A and 272C and 2001 Iowa Acts, chapter 55, a timely and sufficient renewal application shall be:

a. Received by the board in person or postmarked with a nonmetered United States Postal Service postmark on or before the date the permit is set to expire or lapse;

b. Signed by the licensee in charge of the firm’s practice if submitted in person or mailed;

c. Fully completed and accompanied with the proper fee. The fee shall be deemed improper if, for instance, the amount is incorrect, the fee was not included with the application, the credit card number provided by the applicant is incorrect, the date of expiration of a credit card is omitted or incorrect, the attempted credit card transaction is rejected, or the applicant’s check is returned for insufficient funds or a closed account.

7.4(1) A firm that fails to renew the permit by the expiration date, but does so within 30 days following the expiration date, shall be assessed a penalty of 25 percent of the biennial renewal fee.

7.4(2) If the firm fails to renew the permit within the 30–day grace period outlined in subrule 7.4(1), the permit will lapse and the firm shall be required to reinstate in accordance with subrule 7.4(3). The firm is not authorized to practice during the period of time that the permit is lapsed.

7.4(3) The board may reinstate the permit upon the payment of the proper renewal fee and a penalty of $100.

193A—7.5(79GA,ch55) Notices required. A holder of or applicant for a permit shall notify the board in writing within 30 days after an occurrence of any of the following:

1. A change in the identity of an owner, partner, officer, shareholder, member, or manager who performs professional services in this state or for clients in this state.

2. A change in the number or location of offices within this state.

3. A change in the identity of a person in charge of such offices.

4. The issuance, denial, revocation, or suspension of a permit by another state.

193A—7.6(79GA,ch55) Firms not in compliance with requirements. A firm which, after receiving or renewing a permit, is not in compliance with 2001 Iowa Acts, chapter 55, section 7, as a result of a change in firm ownership or personnel shall take corrective action to bring the firm back into compliance as quickly as possible or apply to modify or amend the permit. The board may grant a reasonable period of time, usually 90 days, for a firm to take such corrective action. Failure to comply within a reasonable period as deemed by the board shall result in the suspension or revocation of the firm permit.

193A—7.7(79GA,ch55) Peer review required. As a condition of renewal of a permit to practice as a certified public accounting firm, the firm shall undergo, at least once every three years, a peer review conducted under the provisions outlined in 193A—Chapter 11.

These rules are intended to implement Iowa Code chapters 17A and 272C and 2001 Iowa Acts, chapter 55.

CHAPTER 8
LICENSED PUBLIC ACCOUNTING FIRMS

8.1(1) A new firm, as defined in rule 193A— 1.1(79GA,ch55), about to engage in the practice of public accounting in this state under the requirements and provisions of 2001 Iowa Acts, chapter 55, section 8, shall make application for registration and a permit to practice upon a form that may be obtained from the board office. A firm must hold a permit issued under 2001 Iowa Acts, chapter 55, section 8, and these rules in order to use the title “LPAs” or “LPA firm.” A nonrefundable application fee shall be charged.

8.1(2) The application shall list the names of all owners, a simple majority of whom shall hold licenses issued under 2001 Iowa Acts, chapter 55, section 8, or issued in some other state.

8.1(3) The application shall list the name and license number of any licensee who is responsible for supervising compilation services and who signs or authorizes someone to sign the accountant’s report on financial statements on behalf of the firm. The application shall affirm that any licensee listed meets the competency requirements set forth in SSARS.

8.1(4) The application shall list the number and location of offices within this state and the name of the licensee in charge of such offices.

8.1(5) The application shall affirm that all compilation services rendered in this state are under the charge of an individual who holds a valid license issued under 2001 Iowa Acts, chapter 55, section 8, and who meets the competency requirements outlined in SSARS.

8.1(6) The application shall designate an individual who holds a valid license issued under 2001 Iowa Acts, chapter 55, section 6, 8 or 19, as the person responsible for ensuring that the firm has complied with all of the requirements for a permit to practice.

8.1(7) The application shall affirm that all nonlicensee owners are active participants in the firm or an affiliated entity.

8.1(8) The application shall affirm that all nonlicensees who are by statute required to comply with continuing education imposed by a regulatory authority meet those requirements.

8.1(9) The application for initial issuance of a permit shall list all states in which the applicant has applied for or holds a permit as a licensed public accounting firm and list any past denial, revocation, or suspension of a permit by another state.

8.1(10) The application shall list the names of all nonlicensee owners and provide information regarding any owner who has been convicted of a crime or has had a professional license of any kind revoked in this or any other jurisdiction. For purposes of this subrule, “conviction” means a conviction for an indictable offense and includes a guilty plea, deferred judgment from the time of entry of the deferred judgment until the time the defendant is discharged by the court without entry of judgment, or other finding of guilt by a court of competent jurisdiction. The board may deny the application if a nonlicensee has been convicted of a crime or has had a professional license of any kind revoked in this or any other jurisdiction.

193A—8.2(79GA,ch55) Annual renewal of permit. A permit issued under the provisions of 2001 Iowa Acts, chapter 55, section 8, shall be renewed annually by June 30 upon forms provided by the board. Applications to renew a permit to practice may be obtained from the board office or on the board’s Web site. While the board generally mails renewal applications in the May preceding permit expiration, neither the board’s failure to mail an application nor a permit holder’s failure to receive an application shall excuse the requirement to timely renew and pay the renewal fee.

8.3(1) The permit holder shall file a timely and sufficient renewal application with the board by the June 30 deadline each year. Applications shall be deemed filed on the date received by the board or, if mailed, the date postmarked, but not the date metered.

8.3(2) The permit holder shall list on the renewal application all states in which the applicant has applied for or holds a permit as a licensed public accounting firm and list any past denial, revocation, suspension, refusal to renew or voluntary surrender to avoid disciplinary action of a permit. Permit holders shall notify the board in writing within 30 days after the occurrence of any issuance, denial, revocation, suspension or refusal to renew or voluntary surrender to avoid disciplinary action of a permit to practice as a licensed public accounting firm by another state.

8.3(3) Within the meaning of Iowa Code chapters 17A and 272C and 2001 Iowa Acts, chapter 55, a timely and sufficient renewal application shall be:

a. Received by the board in person or postmarked with a nonmetered United States Postal Service postmark on or before the date the permit is set to expire or lapse;

b. Signed by the licensee in charge of the firm’s practice if submitted in person or mailed;

c. Fully completed and accompanied with the proper fee. The fee shall be deemed improper if, for instance, the amount is incorrect, the fee was not included with the application, the credit card number provided by the applicant is incorrect, the date of expiration of a credit card is omitted or incorrect, the attempted credit card transaction is rejected, or the applicant’s check is returned for insufficient funds or a closed account.

8.4(1) A firm that fails to renew the permit by the expiration date, but does so within 30 days following the expiration date, shall be assessed a penalty of 25 percent of the annual renewal fee.

8.4(2) If the firm fails to renew the permit within the 30–day grace period outlined in subrule 8.4(1), the permit will lapse and the firm shall be required to reinstate in accordance with subrule 8.4(3). The firm is not authorized to practice during the period of time that the permit is lapsed.

8.4(3) The board may reinstate the permit upon the payment of the proper renewal fee and a penalty of $100.

193A—8.5(79GA,ch55) Notices required. A holder of or applicant for a permit shall notify the board in writing within 30 days after an occurrence of any of the following:

1. A change in the identity of an owner, partner, officer, shareholder, member, or manager who performs professional services in this state or for clients in this state.

2. A change in the number or location of offices within this state.

3. A change in the identity of a person in charge of such offices.

4. The issuance, denial, revocation, or suspension of a permit by another state.

193A—8.6(79GA,ch55) Firms not in compliance with requirements. A firm which, after receiving or renewing a permit, is not in compliance with 2001 Iowa Acts, chapter 55, section 8, as a result of a change in firm ownership or personnel shall take corrective action to bring the firm back into compliance as quickly as possible or apply to modify or amend the permit. The board may grant a reasonable period of time, usually 90 days, for a firm to take such corrective action. Failure to comply within a reasonable period as deemed by the board shall result in the suspension or revocation of the firm permit.

193A—8.7(79GA,ch55) Peer review required. As a condition for renewal of a permit to practice as a licensed public accounting firm, the firm shall undergo, at least once every three years, a peer review conducted under the provisions outlined in 193A—Chapter 11.

These rules are intended to implement Iowa Code chapters 17A and 272C and 2001 Iowa Acts, chapter 55.

CHAPTER 9
SUBSTANTIAL EQUIVALENCY

193A—9.1(79GA,ch55) Iowa CPA certificate required. Except as provided in 2001 Iowa Acts, chapter 55, section 7(1) or 13(11), a person who holds a certificate or license to practice as a CPA in another state or a substantially equivalent designation from a foreign jurisdiction who plans to practice public accounting as a CPA in Iowa or for Iowa clients or who otherwise desires to establish the person’s principal place of business as a CPA in Iowa must first apply to the board for an Iowa CPA certificate.

193A—9.2(79GA,ch55) Application forms. Application forms may be obtained from the board office or on the board’s Web site. An applicant shall attest that all information provided on the form is true and accurate. An application may be denied based on a false statement of material fact. A nonrefundable fee shall be charged each applicant as provided in 193A—Chapter 12.

9.3(1) An applicant for a CPA certificate under this chapter shall disclose on the application all background and character information requested by the board including, but not limited to:

a. All states or foreign jurisdictions in which the applicant has applied for or holds a CPA certificate or license, or a substantially equivalent designation from a foreign country;

b. Any past denial, revocation, suspension, or refusal to renew a CPA certificate, license or permit to practice, or voluntary surrender of a CPA certificate, license or permit to resolve or avoid disciplinary action, or similar actions concerning a substantially equivalent foreign designation;

c. Any other form of discipline imposed against the holder of a CPA certificate, license or permit, or a substantially equivalent foreign designation;

d. The conviction of any crime; and

e. The revocation of a professional license of any kind in this or any other jurisdiction.

9.3(2) The board may deny an application based on prior discipline imposed against the holder of a CPA certificate, license or permit, or a substantially equivalent foreign designation, or on any of the grounds listed in 193A—subrule 3.1(2).

193A—9.4(79GA,ch55) Verification of state licensure. An applicant holding a CPA certificate or license from another state or states shall submit verification that the applicant’s CPA certificate or license is valid and in good standing in the state in which the applicant’s principal place of business is located. An applicant applying for a CPA certificate under the substantial equivalency provisions of 2001 Iowa Acts, chapter 55, section 19(1)(a), and paragraph 9.5(1)“a” who is not relocating to Iowa may attach a letter of good standing to the application. Such letter of good standing shall be prepared by the state in which the applicant’s principal place of business is located and shall be dated within six months of the date of the application. To expedite the application process, the board will accept verification from another state’s board by facsimile or E–mail. The board reserves the right to request an original verification document directly from another state board.

9.5(1) A person who holds in good standing a valid CPA certificate or license from another state shall be deemed qualified for an Iowa CPA certificate if the person satisfies one of the following three conditions:

a. Substantially equivalent state. The licensing standards on education, examination and experience of the state which issued the applicant’s CPA certificate or license were, at the time of licensure, comparable or superior to the education, examination and experience requirements of 2001 Iowa Acts, chapter 55, in effect at the time the application is filed in Iowa. The board may accept the determination of substantial equivalency made by the National Association of State Boards of Accountancy or may make an independent determination of substantial equivalency.

b. Individual substantial equivalency. The applicant’s individual qualifications on education, examination and experience are comparable or superior to the education, examination and experience requirements of 2001 Iowa Acts, chapter 55, in effect at the time the application is filed in Iowa.

c. “Four–in–ten rule.” The applicant satisfies all of the following:

(1) The applicant passed the examination required for issuance of the applicant’s certificate or license with grades that would have been passing grades at the time in this state.

(2) The applicant has had at least four years of experience within the ten years immediately preceding the application which occurred after the applicant passed the examination upon which the CPA certificate or license was based and which in the board’s opinion is substantially equivalent to that required by 2001 Iowa Acts, chapter 55, section 5(12).

(3) If the applicant’s CPA certificate or license was issued more than four years prior to the filing of the application in this state, the applicant has fulfilled the continuing professional education requirements described in 2001 Iowa Acts, chapter 55, section 6(3), and 193A—Chapter 10.

9.5(2) A person who holds in good standing a certificate, license or designation from a foreign authority that is substantially equivalent to an Iowa CPA certificate shall be deemed qualified for an Iowa CPA certificate if the person satisfies all of the provisions of 2001 Iowa Acts, chapter 55, section 19(3). The burden is on the applicant to demonstrate that such certificate, license or foreign designation is in full force and effect and that the requirements for that certificate, license or foreign designation are comparable or superior to those required for a CPA certificate in this state. Original verification from the foreign authority which issued the certificate, license or designation shall be required to demonstrate that such certificate, license or designation is valid and in good standing. If the applicant cannot establish comparable or superior qualifications, the board shall require that the applicant pass the uniform certified public accountant examination designed to test the applicant’s knowledge of practice in this state and country. If the applicant is a Canadian Chartered Accountant, Australian Chartered Accountant or Australian Certified Practicing Accountant, the applicant may be required to take the International Uniform CPA Qualification Examination (IQEX) in lieu of the uniform certified public accountant examination.

9.5(3) An applicant seeking an Iowa CPA certificate based on the provisions of 9.5(1)“b,” 9.5(1)“c,” or 9.5(2) shall submit such supporting information on education, examination or experience as the board deems reasonable to determine whether the applicant qualifies for licensure in Iowa.

193A—9.6(79GA,ch55) Continuing requirements. A person issued a CPA certificate under this chapter is subject to all laws and rules governing persons holding CPA certificates issued in this state including, without limitation, those concerning continuing education, peer review, and notification of crimes and professional discipline. However, a person issued a CPA certificate under this chapter who maintains the principal place of business in a different state and who maintains in good standing a valid CPA certificate or license in that state shall be deemed to have satisfied the continuing education and peer review requirements described in 193A— Chapters 10 and 11 if the person satisfies similar requirements in the state in which the principal place of business is located.

193A—9.7(79GA,ch55) Expedited application processing. A person applying for a CPA certificate under the substantial equivalency provisions of 2001 Iowa Acts, chapter 55, section 19(1)(a), and paragraph 9.5(1)“a” who is not relocating to Iowa often desires expedited application processing to facilitate cross–border practice. Applications by such persons are especially suitable for rapid processing given the substantially equivalent standards previously enforced in another state. Unless such application reveals grounds to deny the application under subrule 9.3(2), the board is otherwise aware of such grounds, or the application is unaccompanied by the proper fee, the board’s administrator shall approve an application which qualifies under 2001 Iowa Acts, chapter 55, section 19(1)(a) and paragraph 9.5(1)“a” as rapidly as feasible and shall deem the effective date of approval to practice in Iowa to be the date the board received the completed application with timely letter of good standing in a substantially equivalent state.

These rules are intended to implement 2001 Iowa Acts, chapter 55, section 19.

CHAPTER 10
CONTINUING EDUCATION

193A—10.1(79GA,ch55) Applicability. The continuing education rules that follow rest upon the premise that (1) the increasing complexity of the practice of public accountancy makes it essential that CPAs and LPAs continue their professional education; (2) the public interest requires that CPAs and LPAs practicing before the public keep themselves continually up to date on all developments affecting the areas of their practice; and (3) formal programs of continuing education provide CPAs and LPAs with the opportunity to continually update themselves on the expanding body of knowledge required to practice public accountancy. Each certificate holder or license holder is required to comply with the continuing education requirements as a condition precedent to the renewal of the certificate or license.

193A—10.2(79GA,ch55) Cost of continuing education. All costs of complying with the continuing education requirements of the board are the responsibility of the certificate or license holder wishing to maintain registration in this state.

193A—10.3(79GA,ch55) Basic requirement. During the three–year period ending on the December 31 preceding the July 1 renewal date of the certificate or license, an applicant for renewal shall have completed 120 hours of acceptable continuing education subject to the following exceptions:

10.3(1) At the first biennial renewal date of July 1 that is less than 12 months from the date of filing the initial application for the certificate or license, the certificate or license holder shall not be required to report continuing education.

10.3(2) At the biennial renewal date of July 1 which is more than 12 months, but less than 24 months, from the date of filing the initial application for the certificate or license, the certificate or license holder shall report 40 hours of continuing education earned in the one–year period ending December 31 prior to the July 1 renewal date.

10.3(3) At the biennial renewal date of July 1 which is more than 24 months, but less than 36 months, from the date of filing the initial application for the certificate or license, the certificate or license holder shall report 80 hours of continuing education earned in the two–year period ending December 31 prior to the July 1 renewal date.

10.3(4) An applicant who wishes to restore a certificate or license to effective status must meet the basic requirement of 120 hours earned in the preceding three–year period prior to the date of application to restore effective status. The hours claimed to restore effective status cannot again be used at the next renewal.

10.3(5) A licensee shall be deemed to have complied with the requirements of rule 193A—10.3(79GA,ch55) if, for the period that the licensee is a resident of another state or district having a continuing education requirement, the licensee met the resident state’s mandatory requirement.

10.3(6) The board shall have authority to make exceptions for reasons of individual hardship including health, certified by a medical doctor, military service, foreign residency, retirement, or other good cause. No exceptions shall be made solely because of age.

193A—10.4(79GA,ch55) Measurement standards. The following standards will be used to measure the hours of credit to be given for acceptable continuing education programs completed by individual applicants:

10.4(1) Credit is measured with one 50–minute period equaling one contact hour of credit. Half–hour credits may be allowed (equal to no less than 25 minutes) after the first hour of credit has been earned.

10.4(2) Only class hours or the equivalent, and not student hours devoted to preparation, will be counted.

10.4(3) Credit expressed as continuing education units (CEUs) shall be counted as ten contact hours for each continuing education unit.

10.4(4) Service as lecturer or discussion leader of continuing education programs will be counted to the extent that it contributes to the applicant’s professional competence.

193A—10.5(79GA,ch55) SSARS education required. In each biennial period in which compilation reports are issued, every CPA certificate holder or LPA license holder who is responsible for supervising compilation services or who signs or authorizes someone to sign the accountant’s compilation report on the financial statements on behalf of a firm shall complete, as a condition of certificate or license renewal, a minimum of seven hours of continuing education devoted to statements on standards for accounting and review services (SSARS).  When required, the SSARS continuing education shall be completed within the two–year period ending on the December 31 preceding the application for certificate or license renewal.

10.6(1) The overriding consideration in determining whether a specific program qualifies as acceptable continuing education is that it be a formal program of learning which contributes directly to the professional competence of an individual registered in this state. It will be left to each individual licensee to determine the course of study to be pursued. Thus, the auditor may study accounting and auditing, the tax practitioner may study taxes, and the management advisory services practitioner may study subjects related to such practice.

10.6(2) Continuing education programs will qualify only if:

a. An outline of the program is prepared in advance and preserved.

b. The program is at least one hour (50–minute period) in length.

c. The program is conducted by a qualified instructor, discussion leader or lecturer. A qualified instructor, discussion leader or lecturer is anyone whose background, training, education or experience makes it appropriate for that person to lead a discussion on the subject matter of the particular program.

d. A record of attendance is maintained.

10.6(3) The following programs are deemed to qualify provided all other requirements of this rule are met.

a. Professional development programs of recognized national and state accounting organizations.

b. Technical sessions at meetings of recognized national and state accounting organizations and their chapters.

c. Distance learning programs or webcast programs.

d. Universities or college courses meet the continuing education requirements of those attending. Each semester hour shall be equal to 15 contact hours of credit. Each quarter hour shall be equal to 10 contact hours of credit.

10.6(4) Formal correspondence and formal individual study programs contributing directly to the professional competence of an individual that require registration and provide evidence of satisfactory completion will be considered for credit. The amount of credit to be allowed for correspondence and formal individual study programs (including tested study programs) is to be recommended by the program sponsor and based upon appropriate “field tests” and shall not exceed 50 percent of the renewal requirement. If the program sponsor has not designated the amount of credit to be claimed for completing the course of study, the licensee must estimate the equivalent number of hours and justify the amount of hours claimed. A licensee claiming credit for correspondence or formal self–study courses is required to obtain evidence of satisfactory completion of the course from the program sponsor. Credit will be allowed in the renewal period in which the course is completed.

10.6(5) Credit may be allowed for interactive self–study programs on the basis of one hour of credit for each 50 minutes spent on the interactive study program if the developer of such programs is approved by either the national continuing professional education registry or by the NASBA continuing education registry.

10.6(6) The credit allowed an instructor, discussion leader, or speaker will be on the basis of two hours for subject preparation for each hour of teaching. Credit for teaching college or university coursework may be claimed for courses taught above the elementary accounting or principles of accounting level. Repetitious presentations shall not be considered. The maximum credit for such preparation and teaching will not exceed 50 percent of the renewal period requirement.

10.6(7) Credit may be awarded for published articles and books. The amount of credit so awarded will be determined by the board. Credit may be allowed for published articles and books provided they contribute to the professional competence of the licensee. Credit for preparation of such publications may be given on a self–declaration basis up to 25 percent of the renewal period requirement. In exceptional circumstances a licensee may request additional credit by submitting the article(s) or book(s) to the board with an explanation of the circumstances that the licensee feels justify a greater credit.

10.6(8) Participation in committee meetings or recognized professional societies, which are structured as educational programs, may qualify if they meet the appropriate requirements.

10.6(9) Credit may be allowed for the successful completion of examinations for certified management accountant (CMA), certified information systems auditor (CSA), certified financial planner (CFP), enrolled agent (EA), as well as other similar examinations approved by the board. Credit will be allowed at a rate of five times the length of each examination, which is presumed to include all preparation time, claimed in the calendar year of the examination, and limited to 50 percent of the total renewal requirement.

10.6(10) Dinner, luncheon and breakfast meetings of recognized organizations may qualify if they meet the appropriate requirements.

10.6(11) Firm meetings for staff or for management groups may qualify if they meet the appropriate requirements. Portions of such meetings devoted to administrative and firm matters cannot be included.

10.6(12) The board may look to recognized state or national accounting organizations for assistance in interpreting the acceptability of and credit to be allowed for individual courses.

10.6(13) The right is specifically reserved to the board to approve or disapprove credit for continuing education claimed under these rules.

10.7(1) An applicant for renewal may be requested to provide, in such manner and at such time as prescribed by the board, a signed statement, under penalty of perjury, on forms provided by the board, setting forth the continuing education in which the licensee has participated. The board may allow for attestation that the licensee has met the requirements in lieu of providing a listing in certain instances. If requested to provide a listing of the continuing education completed, the information may include:

a. School, firm or organization conducting the course.

b. Location of course.

c. Title of course or description of content.

d. Principal instructor.

e. Dates attended.

f. Hours claimed.

10.7(2) The board may require sponsors of courses to furnish an attendance list or any other information the board deems essential for administration of these continuing education rules.

10.7(3) The board will verify on a test basis information submitted by licensees. If an application for renewal is not approved, the applicant will be so notified and may be granted a period of time by the board in which to correct the deficiencies noted.

10.7(4) Primary responsibility for documenting the requirements rests with the licensee, and evidence to support fulfillment of those requirements must be retained for a period of three years subsequent to submission of the report claiming the credit. Satisfaction of the requirements, including retention of attendance records and written outlines, may be accomplished as follows:

a. For courses taken for scholastic credit in accredited universities and colleges (state, community, or private) or high school districts, evidence of satisfactory completion of the course will be sufficient; for noncredit courses taken, a statement of the hours of attendance, signed by the instructor, must be obtained by the licensee.

b. For correspondence and formal independent study courses, written evidence or a certificate of completion from the sponsor or course provider shall be obtained by the licensee.

c. In all other instances, the licensee must maintain a record of the information listed in subrule 10.7(1) and a copy of the course outline prepared by the course sponsor.

These rules are intended to implement Iowa Code chapter 272C and 2001 Iowa Acts, chapter 55.

CHAPTER 11
PEER REVIEW

193A—11.1(79GA,ch55) Peer review required. As a condition of renewal for a CPA or LPA who issues compilation reports other than through a CPA or LPA firm which holds a permit to practice and, as a condition of permit renewal for LPA firms which issue compilation reports or CPA firms which provide attest services or issue compilation reports, the applicant shall submit certification of completion of a peer review issued pursuant to this chapter. Such review shall be completed at the highest level of service provided by the firm or licensee.

193A—11.2(79GA,ch55) How often required. During the three–year period ending December 31 preceding the application for renewal of a certificate, license, or permit to practice, the firm shall have completed a peer review in accordance with this chapter. A peer review shall be completed no less often than once every three years.

193A—11.3(79GA,ch55) System of internal quality control. If the firm has not issued reports on financial statements prior to the application for renewal, the firm shall have in place a system of internal quality control prior to the commencement of a financial reporting engagement and shall come into compliance within 18 months of completion of a financial reporting engagement.

193A—11.4(79GA,ch55) Peer review programs that qualify. A firm’s completion of a peer review program endorsed or supported by the AICPA, National Society of Accountants or other substantially similar review programs in Iowa or other states approved by the board shall satisfy the requirements of this chapter.

193A—11.5(79GA,ch55) Waiver of peer review requirement. At the time of renewal a licensee or firm may request, in writing upon a form provided by the board, a waiver from the requirements of this chapter, as provided in 2001 Iowa Acts, chapter 55, sections 7(9) and 8(19).

These rules are intended to implement 2001 Iowa Acts, chapter 55.

CHAPTER 12
FEES

193A—12.1(79GA,ch55) Required fees. The following is a schedule of the fees for examinations, certificates, licenses, permits and renewals adopted by the board:

Initial CPA examination application:

Paid directly to CPA examination services $285

Reexamination:

Paid directly to CPA examination services

Four subjects $255

Three subjects N/A

Two subjects $170

One subject $125

Nonrefundable proctoring fee
for out–of–state candidates $100

Initial LPA examination application $120

Reexamination:

Two subjects $80

One subject $60

Original issuance of CPA certificate or
LPA license by examination (fee
includes wall certificate) $100

Original issuance of CPA certificate by
reciprocity or substantial equivalency $100

CPA wall certificate issued by reciprocity
or substantial equivalency $50

Replacement of lost or destroyed
CPA certificate or LPA license $50

Original issuance of attest qualification $100

Biennial renewal of CPA certificate
or LPA license $100

Penalty for failure to comply with
continuing education requirements $50 to $250

Reinstatement of lapsed CPA
certificate or LPA license $100 + renewal fee

Original issuance of a firm permit to practice $50

Annual renewal of firm permit to practice $50

Reinstatement of lapsed
firm permit to practice $100 + renewal fee

193A—12.2(79GA,ch55) Prorating of certain fees. Fees for issuance of original certificates or licenses for less than one year to the biennial renewal date as provided in 193A— 5.1(79GA,ch55) may be prorated on an annual basis for the remainder of time covered by the certificate or license. For example, if a CPA certificate or LPA license holder applies for the original certificate or license and would be required to renew the certificate or license in 12 months or less, the fee would be $50. If the original certificate or license is not scheduled to be renewed for more than 12 months, the fee would be $100.

These rules are intended to implement 2001 Iowa Acts, chapter 55.

CHAPTER 13
RULES OF PROFESSIONAL CONDUCT

193A—13.1(79GA,ch55) Definitions. The following definitions shall be applicable to the rules of this chapter.

“Covered member” means:

1. An individual on the attest engagement team;

2. An individual in a position to influence the attest engagement team;

3. A partner or manager who provides nonattest services to the attest client once the partner or manager has provided ten hours of nonattest services to the client within any fiscal year;

4. A partner in the office in which the lead attest engagement partner primarily practices in connection with the attest engagement;

5. The firm, including the firm’s employee benefit plan; or

6. An entity whose operating, financial, or accounting practice can be controlled by any of the individuals described in “1” through “5.”

“Covered member’s immediate family” means:

1. The covered member’s spouse (or spousal equivalent), and

2. The covered member’s dependents.

13.2(1) The rules of professional conduct which follow rest upon the premise that the reliance of the public in general and of the business community in particular on sound financial reporting and on the implication of professional competence inherent in the authorized use of a legally restricted title relating to the practice of public accountancy, imposes on persons engaged in such practice certain obligations both to their clients and to the public. These obligations, which the rules of professional conduct are intended to enforce where necessary, include the obligation to maintain independence of thought and action, to strive continuously to improve one’s professional skills, to observe applicable generally accepted accounting principles and generally accepted auditing standards, to promote sound and informative financial reporting, to hold the affairs of clients in confidence, and to maintain high standards of personal conduct in all matters affecting one’s fitness to practice public accountancy.

13.2(2) Acceptance of a certificate as a CPA or a license as an LPA to practice public accounting involves acceptance by the CPA or LPA of the obligations set forth in the preceding subrule and accordingly a duty to abide by the rules of professional conduct.

13.2(3) The rules of professional conduct are intended to have application to all kinds of professional services performed in the practice of public accountancy and to apply as well to all CPAs and LPAs whether or not engaged in the practice of public accountancy, except where the wording of a rule clearly indicates that the applicability is more limited.

13.2(4) A CPA or LPA who is engaged in the practice of public accountancy outside the United States will not be subject to discipline by the board for departing, with respect to such foreign practice, from any of the rules, so long as the CPA’s or LPA’s conduct is in accordance with the standards of professional conduct applicable to the practice of public accountancy in the country in which the CPA or LPA is practicing. However, even in such a case, if a CPA’s or LPA’s name is associated with financial statements in such manner as to imply that the CPA or LPA is acting as an independent public accountant and under circumstances that would entitle the reader to assume that United States practices are followed, the CPA or LPA will be expected to comply with subrules 13.4(2) and 13.4(3).

13.2(5) In the interpretation and enforcement of the rules of professional conduct, the board will give consideration, but not necessarily dispositive weight, to relevant interpretations, rulings and opinions issued by other state boards of accountancy and by appropriately authorized committees on ethics of professional organizations.

13.2(6) A CPA or LPA may be held responsible for compliance with the rules of professional conduct by all persons associated with the accountant in the practice of public accounting who are either under the accountant’s supervision or are members, partners or shareholders in the accountant’s practice.

13.2(7) A covered member’s immediate family is also subject to these rules, except that:

a. Employment with the attest client is permitted if the family member is not in a “key position” which allows the person to influence the client’s financial statements; or

b. A financial interest may be held through an attest client’s employee benefit plan in certain instances if the covered member is not on the attest engagement team or in a position to influence the engagement.

13.3(1) Independence. A CPA or LPA or firm of which a CPA or LPA is an owner, partner, officer, shareholder, member or manager shall not issue a report on financial statements of a client in such a manner as to imply that the CPA or LPA is acting as an independent public accountant with respect thereto unless the CPA or LPA is independent with respect to such client. Independence will be considered to be impaired if, for example:

a. During the period of the professional engagement, or at the time of expressing an opinion, a CPA, LPA or covered member:

(1) Had, or was committed to acquire, any direct or material indirect financial interest in the client; or was a trustee of any trust or executor or administrator of any estate if such trust or estate had, or was committed to acquire, any direct or material indirect financial interest in the client; or

(2) Had any joint closely held business investment with the client or any officer, director or principal stockholder which was material to the CPA, LPA, or covered member; or

(3) Had any loan to or from the client or any officer, director or principal stockholder thereof other than loans of the following kinds made by a financial institution under normal lending procedures, terms and requirements: loans which are not material in relation to the net worth of the CPA, LPA or covered member; home mortgages; and other secured loans, except those secured solely by a guarantee of the CPA, LPA or covered member.

b. During the period covered by the financial statements, during the period of the professional engagement, or at the time of expressing an opinion, the covered member:

(1) Was connected with the client as a promoter, underwriter or voting trustee, a director or officer or in any capacity equivalent to that of a member of management or of an employee; or

(2) Was a trustee for any pension or profit–sharing trust of the client.

The foregoing examples are not intended to be all–inclusive.

13.3(2) Integrity and objectivity. A CPA or LPA shall not, in the performance of professional services, knowingly misrepresent facts, subordinate judgment to others, or allow professional judgment to be impaired by self–interest. In tax practice, however, a CPA or LPA may resolve doubt in favor of the client as long as there is reasonable support for this position.

13.3(3) Commissions. A CPA or LPA may accept a commission subject to the prohibitions set forth in 2001 Iowa Acts, chapter 55, section 13(15), and the restrictions set forth in these rules.

a. A CPA or LPA engaged in the practice of public accounting must act in the best interests of the client and shall not allow integrity, objectivity or professional judgment to be impaired by the self–interest a commission–based fee may create.

b. A CPA or LPA who anticipates receiving a commission in connection with the recommendation, referral or sale of a product or service must establish such procedures as are reasonably necessary to avoid the prohibitions set forth in 2001 Iowa Acts, chapter 55, section 13(15).

c. A CPA or LPA engaged in the practice of public accounting who is paid or expects to be paid a commission shall disclose that fact to any person or entity to whom the CPA or LPA recommends, refers or sells a product or service to which the commission relates.

d. To ensure full and effective disclosure, a CPA or LPA shall substantially adhere to the following guidelines when recommending, referring or selling a product or service to which a commission relates:

(1) The disclosure shall be in writing, signed and dated by the person to whom a product or service is recommended, referred or sold, and a copy shall be provided to the client.

(2) The disclosure shall be made at or prior to the time the product or service is recommended, referred or sold.

(3) The disclosure shall be legible, clear and conspicuous, and on a separate form.

(4) A copy of the disclosure shall be retained by the CPA or LPA for as long as the CPA or LPA deems appropriate to the transaction; however, the board recommends a minimum of three years.

(5) In the event of a continuing engagement or series of related transactions involving similar products or services, one written disclosure may cover more than one recommendation, referral or sale as long as the disclosure is provided at least annually and is not misleading.

This rule does not prohibit payments for the purchase of all, or a material part, of an accounting practice, or retirement payments to persons formerly engaged in the practice of public accountancy, or payments to heirs or estates of such persons.

13.3(4) Contingent fees. A CPA or LPA may accept contingent fees as defined in rule 193A—1.1(79GA,ch55) subject to the prohibitions set forth in 2001 Iowa Acts, chapter 55, section 13(15), and restrictions set forth in these rules.

13.4(1) Competence. A CPA or LPA shall not undertake any engagement for the performance of professional services which the accountant or accountant’s firm cannot reasonably expect to complete with due professional competence, including compliance, where applicable, with subrules 13.4(2) and 13.4(3).

13.4(2) Engagement standards. CPAs or LPAs shall not permit their names to be associated with financial statements unless they have complied with the applicable generally accepted engagement standards. The board will consider the American Institute of Certified Public Accountants Professional Standards, SAS, and SSARS as sources of interpretations of generally accepted engagement standards.

13.4(3) Accounting principles. A CPA or LPA shall not state in the CPA’s or LPA’s report on financial statements that the financial statements are presented in conformity with generally accepted accounting principles if such financial statements contain any departure from such accounting principles which has a material effect on the financial statements taken as a whole, unless the CPA or LPA can demonstrate that by reason of unusual circumstances the financial statements would otherwise have been misleading. In such cases the accountant’s report must describe the departure, the approximate effects thereof, if practicable, and the reasons why compliance with the principle(s) would result in a misleading statement. The board will consider the pronouncements issued by the Financial Accounting Standards Board and its predecessor entities as sources of interpretations of generally accepted accounting principles.

13.4(4) Standards and procedures or other requirements in governmental audits. A CPA shall not accept a governmental audit unless the CPA undertakes an obligation to follow specified government audit standards, guides, procedures, statutes, rules and regulations in addition to generally accepted auditing standards unless the CPA discloses in the accountant’s report the fact that such requirements were not followed and the reasons therefor.

13.4(5) Requirements of governmental bodies, commissions, or other regulatory agencies. Many governmental bodies, commissions, or other regulatory agencies have established requirements such as audit standards, guides, rules and regulations that CPAs are required to follow in preparation of financial statements or related information, such as management’s discussion or analysis, in performing attest or similar services for entities subject to the jurisdiction of the governmental bodies, commissions or regulatory agencies. For example, the Securities and Exchange Commission, General Accounting Office, office of auditor of state, state insurance commission and other regulatory agencies have established such requirements.

A CPA shall not prepare financial statements or related information for the purposes of reporting to such bodies, commissions, or regulatory agencies, unless the CPA agrees to follow the requirements of such organizations in addition to generally accepted auditing standards, where applicable, unless the CPA discloses in the financial statements or the accountant’s report that such requirements were not followed.

13.4(6) Negligence in the preparation of financial statements or records. A CPA or LPA shall be considered negligent if, in conjunction with the preparation of financial statements or records, any of the following infractions occur:

a. The CPA or LPA makes or permits another to make materially false or misleading entries in financial statements or records; or

b. The CPA or LPA fails to correct financial statements that are materially false or misleading when the member has the authority to record an entry; or

c. The CPA or LPA signs, or permits or directs another to sign, a document containing materially false or misleading information.

13.4(7) Forecasts. A CPA shall not in the performance of professional services permit the CPA’s name to be used in conjunction with any forecast of future transactions in a manner which may lead to the belief that the accountant vouches for the achievability of the forecast.

13.5(1) Confidential client information. A CPA or LPA shall not, without the consent of the accountant’s client, disclose any confidential information pertaining to the client obtained in the course of performing professional services. This rule does not:

a. Relieve a CPA or LPA of any obligations under subrules 13.4(2) and 13.4(3); or

b. Affect in any way a CPA’s or LPA’s obligation to comply with a validly issued subpoena or summons enforceable by order of a court; or

c. Prohibit disclosures in the course of a peer review of a CPA’s or LPA’s professional services; or

d. Preclude a CPA or LPA from responding to any inquiry made by the board or any investigative or disciplinary body established by law or formally recognized by the board. Members of the board and professional practice reviewers shall not disclose any confidential information which comes to their attention from a CPA or LPA in disciplinary proceedings or otherwise in carrying out their responsibilities, except that they may furnish such information to an investigative or disciplinary body of the kind referred to above.

13.5(2) Records. A CPA or LPA shall furnish to a client or former client, upon request made within a reasonable time:

a. Any accounting or other records belonging to, or obtained from or on behalf of, the client which a CPA or LPA removed from the client’s premises or received for the client’s account, including a copy of all disclosures required by subrule 13.3(4). The accountant may make and retain copies of such documents when they form the basis for work done by a CPA or LPA.

b. In addition, the CPA or LPA shall furnish to a client, after the original issuance of the document in question to the client or former client, the following items, provided all fees due to the CPA or LPA are paid:

(1) A copy of tax return of the client;

(2) A copy of any report, or other document, issued by the CPA or LPA to or for such client; and

(3) A copy of the working papers of the CPA or LPA to the extent that such working papers include records which would ordinarily constitute part of the client’s books and rec–ords and are not otherwise available to the client.

13.6(1) Acts discreditable. A CPA or LPA shall not commit any act that reflects adversely on the CPA’s or LPA’s fitness to engage in the practice of public accountancy. The board may consider discipline by any other agency or jurisdiction when determining probable cause to take action against a CPA or LPA for acts discreditable.

13.6(2) Advertising. A CPA or LPA shall not use or participate in the use of any form of public communication having reference to professional services that contains a false, fraudulent, misleading, deceptive or unfair statement or claim. A false, fraudulent, misleading, deceptive or unfair statement or claim includes but is not limited to a statement or claim which:

a. Contains a misrepresentation of fact; or

b. Is likely to mislead or deceive because it fails to make full disclosure of relevant facts; or

c. Contains any testimonial or laudatory statement or other statement or implication that the CPA’s or LPA’s professional services are of exceptional quality; or

d. Is intended to likely create false or unjustified expectations of favorable results; or

e. Implies educational or professional attainments or licensing recognition not supported in fact; or

f. States or implies that the CPA or LPA has received formal recognition as a specialist in any aspect of the practice of public accountancy, if this is not the case; or

g. Represents that professional services can or will be competently performed for a stated fee when this is not the case, or makes representations with respect to fees for professional services that do not disclose all variables affecting the fees that will in fact be charged; or

h. Contains other representations or applications that in reasonable probability will cause an ordinarily prudent person to misunderstand or be deceived.

13.6(3) Solicitation. A CPA or LPA shall not by any direct personal communication solicit an engagement to perform professional services:

a. If the communication would violate subrule 13.6(2) if it were a public communication; or

b. By the use of coercion, duress, compulsion, intimidation, threats, overreaching, or harassing conduct; or

c. If the solicitation communication contains proposals which would be in violation of rule 193A—13.3(79GA, ch55) or 193A—13.4(79GA,ch55).

13.6(4) Acting through others. A CPA or LPA shall not permit others to carry out on the CPA’s or LPA’s behalf, either with or without compensation, acts which, if carried out by the CPA or LPA, would violate the rules of professional conduct.

13.6(5) Misleading firm names. A firm name is misleading within the meaning of 2001 Iowa Acts, chapter 55, section 13, if, among other things:

a. The firm name implies the existence of a corporation when the firm is not a corporation.

b. The firm name implies the existence of a partnership when there is not a partnership, e.g., “Smith & Jones, CPAs” or “Smith and Jones, LPAs.”

c. The CPA firm name includes the name of a person who is not a CPA if the title “CPAs” or “Certified Public Accountants” is included in the firm name.

d. The LPA firm name includes the name of a person who is not an LPA if the title “LPAs” or “Licensed Public Accountants” is included in the firm name.

13.6(6) Communications. A CPA or LPA shall, when requested, respond to communications from the board within 30 days of the mailing of such communications by certified mail.

These rules are intended to implement Iowa Code chapter 272C and 2001 Iowa Acts, chapter 55.

CHAPTER 14
DISCIPLINARY AUTHORITY AND
GROUNDS FOR DISCIPLINE

193A—14.1(17A,272C,79GA,ch55) Disciplinary authority. The board is empowered to administer Iowa Code chapters 17A and 272C and 2001 Iowa Acts, chapter 55, and related administrative rules for the protection and well–being of those persons who may rely upon licensed individuals and firms for the performance of public accounting services within this state or for clients in this state. To perform these functions, the board is broadly vested with authority to review and investigate alleged acts or omissions of licensees, determine whether disciplinary proceedings are warranted, initiate and prosecute disciplinary proceedings, establish standards of professional conduct, and impose discipline, pursuant to Iowa Code sections 17A.13, 272C.3 to 272C.6 and 272C.10 and 2001 Iowa Acts, chapter 55, sections 4 and 10 through 16. In exercising its disciplinary authority and in construing the meaning of the phrase “conduct discreditable to the public accounting profession” as used in 2001 Iowa Acts, chapter 55, section 10(1)(i), the board shall be guided by the legislative policies, goals and standards set forth in 2001 Iowa Acts, chapter 55, section 2.

193A—14.2(17A,272C,79GA,ch55) Grounds for discipline. The board may initiate disciplinary action against a CPA, LPA, or a firm of CPAs or LPAs, on any of the following grounds:

1. All grounds set forth in 2001 Iowa Acts, chapter 55, section 10.

2. Acts or omissions constituting unlawful acts under 2001 Iowa Acts, chapter 55, section 13, whether committed before or after licensure as a CPA or LPA.

3. A violation of 2001 Iowa Acts, chapter 55, section 17.

4. A violation of 2001 Iowa Acts, chapter 55, section 18.

5. A violation of any of the rules of professional conduct set forth in 193A—Chapter 13.

6. A violation of Iowa Code subsection 272C.9(2) or 272C.9(3), or any of the provisions of 193A—Chapter 18.

7. Failure to comply with an order of the board imposing discipline.

8. Violation of Iowa Code subsection 272C.3(2).

9. Continuing to practice public accounting without satisfying the continuing education mandated by 2001 Iowa Acts, chapter 55, sections 6(3) and 8(9)(b), and 193A— Chapter 10, absent express waiver granted by the board.

10. As applicable, performing attest services or issuing compilation reports without satisfying the peer review required by 2001 Iowa Acts, chapter 55, sections 6(6), 8(17) and 13(13), and 193A—Chapter 11.

11. Violation by a CPA or CPA firm of 2001 Iowa Acts, chapter 55, section 5(4), 5(5), 6(5), 7(3), 7(6) or 7(7).

12. Violation by an LPA or LPA firm of 2001 Iowa Acts, chapter 55, section 8(12), 8(15) or 8(16).

13. Knowingly aiding or abetting a licensee, license applicant or unlicensed person in committing any act or omission which is grounds for discipline under this rule or is an unlawful act by a nonlicensee under 2001 Iowa Acts, chapter 55, section 13, or otherwise knowingly aiding or abetting the unlicensed practice of public accounting by a person who either improperly uses a title restricted under 2001 Iowa Acts, chapter 55, or performs attest services or issues compilation reports without proper licensure.

14. Failure to fully cooperate with a licensee disciplinary investigation or investigation against a nonlicensee, including failure to respond to a board inquiry within 30 calendar days of the date of mailing by certified mail of a written communication directed to the licensee’s last address on file at the board office.

These rules are intended to implement Iowa Code chapters 17A and 272C and 2001 Iowa Acts, chapter 55.

CHAPTER 15
DISCIPLINARY INVESTIGATIONS

193A—15.1(17A,272C,79GA,ch55) Investigative authority. The board is authorized by Iowa Code sections 17A.13(1), 272C.3, 272C.4 and subsection 272C.6(4) and 2001 Iowa Acts, chapter 55, section 11, to conduct disciplinary investigations to determine whether grounds exist to initiate a disciplinary proceeding against a licensee.

193A—15.2(17A,272C,79GA,ch55) Initiation of disciplinary investigations. The board may initiate a licensee disciplinary investigation upon the board’s receipt of information suggesting that a licensee may have violated a law or rule enforced by the board which, if true, would constitute grounds for licensee discipline. The board may also review the publicly available work product of licensees on a general or random basis to determine whether reasonable grounds exist to initiate disciplinary proceedings or to conduct a more specific investigation.

193A—15.3(272C,79GA,ch55) Sources of information. Without limitation, the following nonexclusive list of information sources may form the basis for the initiation of a disciplinary investigation or proceeding:

1. General or random review of financial statements submitted to or filed with local, state or federal governmental bodies, or other publicly available work product.

2. News articles or other media sources.

3. Reports filed with the board by the commissioner of insurance pursuant to Iowa Code subsection 272C.4(9).

4. Complaints filed with the board by any member of the public.

5. License applications or other documents submitted to the board.

6. Reports to the board from any regulatory or law enforcement agency from any jurisdiction.

7. Board audits of licensee compliance with conditions for licensure, such as continuing education or peer review.

193A—15.4(17A,272C,79GA,ch55) Conflict of interest. If the subject of a complaint is a member of the board, or if a member of the board has a conflict of interest in any disciplinary matter before the board, that member shall abstain from participation in any consideration of the complaint and from participation in any disciplinary hearing that may result from the complaint.

193A—15.5(272C,79GA,ch55) Complaints. Written complaints may be submitted to the board office by mail, E–mail, facsimile, or personal delivery by members of the public, including clients, business organizations, nonprofit organizations, governmental bodies, licensees, or other individuals or entities with knowledge of possible law or rule violations by licensees.

15.5(1) Contents of a written complaint. Written complaints may be submitted on forms provided by the board which are available from the board office and on the board’s Web site. Written complaints, whether submitted on a board complaint form or in other written medium, shall contain the following information:

a. The full name, address, and telephone number of the complainant (person complaining).

b. The full name, address, and telephone number of the respondent (licensee against whom the complaint is filed).

c. A statement of the facts and circumstances giving rise to the complaint, including a description of the alleged acts or omissions which the complainant believes demonstrate that the respondent has violated or is violating laws or rules enforced by the board.

d. If known, citations to the laws or rules allegedly violated by the respondent.

e. Evidentiary supporting documentation.

f. Steps, if any, taken by the complainant to resolve the dispute with the respondent prior to filing a complaint.

15.5(2) Immunity. As provided by Iowa Code section 272C.8, a person shall not be civilly liable as a result of filing a report or complaint with the board unless such act is done with malice, nor shall an employee be dismissed from employment or discriminated against by an employer for filing such a report or complaint.

15.5(3) Role of complainant. The role of the complainant in the disciplinary process is limited to providing the board with factual information relative to the complaint. A complainant is not party to any disciplinary proceeding which may be initiated by the board based in whole or in part on information provided by the complainant.

15.5(4) Role of the board. The board does not act as an arbiter of disputes between private parties, nor does the board initiate disciplinary proceedings to advance the private interest of any person or party. The role of the board in the disciplinary process is to protect the public by investigating complaints and initiating disciplinary proceedings in appropriate cases. The board possesses sole decision–making authority throughout the disciplinary process, including the authority to determine whether a case will be investigated, the manner of the investigation, whether a disciplinary proceeding will be initiated, and the appropriate licensee discipline to be imposed, if any.

15.5(5) Initial complaint screening. All written complaints received by the board shall be initially screened by the board’s administrator to determine whether the allegations of the complaint fall within the board’s investigatory jurisdiction and whether the facts presented, if true, would constitute a basis for disciplinary action against a licensee. Complaints which are clearly outside the board’s jurisdiction, which clearly do not allege facts upon which disciplinary action would be based, or which are frivolous shall be referred by the board administrator to the board for closure at the next scheduled board meeting. All other complaints shall be referred by the board administrator to the board’s disciplinary committee for committee review as described in rule 193A—15.8(17A,272C,79GA,ch55).

193A—15.6(272C,79GA,ch55) Case numbers. Whether based on a written complaint received by the board or a complaint initiated by the board, all complaint files shall be tracked by a case numbering system. Complaints are assigned case numbers in chronological order with the first two digits representing the year in which the complaint was received or initiated, and the second two digits representing the order in which the case file was opened (e.g., 01–01, 01–02, 01–03, etc.). The board’s administrator shall maintain a case file log noting the date each case file was opened, whether disciplinary proceedings were initiated in the case, and the final disposition of the case. Once a case file number is assigned to a complaint, all persons communicating with the board regarding that complaint are encouraged to include the case file number to facilitate accurate records and prompt response.

193A—15.7(272C,79GA,ch55) Confidentiality of complaint and investigative information. All complaint and investigative information received or created by the board is privileged and confidential pursuant to Iowa Code subsection 272C.6(4). Such information shall not be released to any person except as provided in that section.

15.8(1) Disciplinary committee. The board chair shall annually appoint two to four members of the board to serve on the board’s disciplinary committee. The disciplinary committee is a purely advisory body which shall review complaint files referred by the board’s administrator, generally supervise the investigation of complaints, and make recommendations to the full board on the disposition of complaints. Members of the committee shall not personally investigate complaints, but they may review the investigative work product of others in formulating recommendations to the board.

15.8(2) Committee screening of complaints. Upon the referral of a complaint from the board’s administrator or from the full board, the committee shall determine whether the complaint presents facts which, if true, suggest that a licensee may have violated a law or rule enforced by the board. If the committee concludes that the complaint does not present facts which suggest such a violation or that the complaint does not otherwise constitute an appropriate basis for disciplinary action, the committee shall refer the complaint to the full board with the recommendation that it be closed with no further action. If the committee determines that the complaint does present a credible basis for disciplinary action, the committee may either immediately refer the complaint to the full board recommending that a disciplinary proceeding be commenced or initiate a disciplinary investigation.

15.8(3) Committee procedures. If the committee determines that additional information is necessary or desirable to evaluate the merits of a complaint, the committee may assign an investigator or expert consultant, appoint a peer review committee, provide the licensee an opportunity to appear before the disciplinary committee for an informal discussion as described in rule 193A—15.9(17A,272C,79GA,ch55) or request board staff to conduct further investigation. Upon completion of an investigation, the investigator, expert consultant, peer review committee or board staff shall present a report to the committee. The committee shall review the report and determine what further action is necessary. The committee may:

a. Request further investigation.

b. Determine there is not probable cause to believe a disciplinary violation has occurred and refer the case to the full board with the recommendation of closure.

c. Determine there is probable cause to believe that a law or rule enforced by the board has been violated, but that disciplinary action is unwarranted on other grounds, and refer the case to the full board with the recommendation of closure. The committee may also recommend that the licensee be informally cautioned or educated about matters which could form the basis for disciplinary action in the future.

d. Determine there is probable cause to believe a disciplinary violation has occurred and refer the case to the full board with the recommendation that the board initiate a disciplinary proceeding (contested case).

15.8(4) Subpoena authority. Pursuant to Iowa Code subsections 17A.13(1) and 272C.6(3) and 2001 Iowa Acts, chapter 55, section 11(1), the board is authorized in connection with a disciplinary investigation to issue subpoenas to compel witnesses to testify or persons to produce books, papers, records and any other real evidence, whether or not privileged or confidential under law, which the board deems necessary as evidence in connection with a disciplinary proceeding or relevant to the decision of whether to initiate a disciplinary proceeding. Board procedures concerning investigative subpoenas are set forth in 193—Chapter 6.

193A—15.9(17A,272C,79GA,ch55) Informal discussion. If the disciplinary committee considers it advisable, or if requested by the affected licensee, the committee may grant the licensee an opportunity to appear before the committee for a voluntary informal discussion of the facts and circumstances of an alleged violation, subject to the provisions of this rule.

15.9(1) An informal discussion is intended to provide a licensee an opportunity to share the licensee’s side of a complaint in an informal setting before the board determines whether probable cause exists to initiate a disciplinary proceeding. A licensee is not required to attend an informal discussion. Because disciplinary investigations are confidential, the licensee may not bring other persons to an informal discussion, but licensees may be represented by legal counsel. Where an allegation is made against a firm, the firm may be represented by a managing partner, member or other firm representative.

15.9(2) Unless disqualification is waived by the licensee, board members or staff who personally investigate a disciplinary complaint are disqualified from making decisions or assisting the decision makers at a later formal hearing. Because board members generally rely upon investigators, peer review committees, or expert consultants to conduct investigations, the issue rarely arises. An informal discussion, however, is a form of investigation because it is conducted in a question and answer format. In order to preserve the ability of all board members to participate in board decision making and to receive the advice of staff, a licensee who desires to attend an informal discussion must therefore waive the right to seek disqualification of a board member or staff based solely on the board member’s or staff’s participation in an informal discussion. A licensee would not be waiving the right to seek disqualification on any other ground. By electing to attend an informal discussion, a licensee accordingly agrees that participating board members or staff are not disqualified from acting as a presiding officer in a later contested case proceeding or from advising the decision maker.

15.9(3) Because an informal discussion constitutes a part of the board’s investigation of a pending disciplinary case, the facts discussed at the informal discussion may be considered by the board in the event the matter proceeds to a contested case hearing and those facts are independently introduced into evidence.

15.9(4) The disciplinary committee, subject to board approval, may propose a consent order at the time of the informal discussion. If the licensee agrees to a consent order, a statement of charges shall be filed simultaneously with the consent order, as provided in rule 193—7.4(17A,272C).

15.10(1) Grounds for closing. Upon the recommendation of the administrator pursuant to subrule 15.5(4), the recommendation of the disciplinary committee pursuant to rule 193A—15.8(17A,272C,79GA,ch55), or on its own motion, the board may close a complaint file, with or without prior investigation. Given the broad scope of matters members of the public may complain about, it is not possible to catalog all possible reasons why the board may close a complaint file. The following nonexclusive list is, however, illustrative of the grounds upon which the board may close a complaint file:

a. The complaint alleges matters outside the board’s jurisdiction.

b. The complaint does not allege a reasonable or credible basis to believe that the subject of the complaint violated a law or rule enforced by the board.

c. The complaint is frivolous or trivial.

d. The complaint alleges matters more appropriately resolved in a different forum, such as civil litigation to resolve a contract dispute, or more appropriately addressed by alternative procedures, such as outreach education or rule making.

e. The matters raised in the complaint are situational, isolated, or unrepresentative of a licensee’s typical practice, and the licensee has taken appropriate steps to ensure future compliance and prevent public injury.

f. Resources are unavailable or better directed to other complaints or board initiatives in light of the board’s overall budget and mission.

g. Other extenuating factors which weigh against the imposition of public discipline consistent with the legislative policies, goals, and standards set forth in 2001 Iowa Acts, chapter 55, section 2.

15.10(2) Indexed orders. The board’s administrator shall enter an order stating the basis for the board’s decision to close a complaint file. The order shall not contain the ident–ity of the complainant or the respondent and shall not disclose confidential complaint or investigative information. The orders shall be indexed by case number and shall be a public record pursuant to Iowa Code subsection 17A.3(1)(d). A copy of the order shall be mailed to the complainant, if any, and to the respondent.

15.10(3) Cautionary letters. The board may issue a confidential letter of caution to a licensee when a complaint file is closed which informally cautions or educates the licensee about matters which could form the basis for disciplinary action in the future if corrective action is not taken by the licensee. Informal cautionary letters do not constitute disciplinary action, but the board may take such letters into consideration in the future if a licensee continues a practice about which the licensee has been cautioned.

15.10(4) Reopening closed complaint files. The board may reopen a closed complaint file if additional information arises after closure which provides a basis to reassess the merits of the initial complaint.

These rules are intended to implement Iowa Code chapters 17A and 272C and 2001 Iowa Acts, chapter 55.

CHAPTER 16
DISCIPLINARY PROCEEDINGS

193A—16.1(17A,272C,79GA,ch55) Initiation of disciplinary proceedings. Disciplinary proceedings may be initiated only by the affirmative vote of a majority of a quorum of the board at a public meeting. Board members who are disqualified shall not be included in determining whether a quorum exists. If, for example, two members of the board are disqualified, four members of the board shall constitute a quorum of the remaining six board members for purposes of voting on the case in which the two members are disqualified. When three or more members of the board are disqualified or otherwise unavailable for any reason, the administrator may request the special appointment of one or more substitute board members pursuant to Iowa Code section 17A.11, subsection 5.

193A—16.2(17A,272C,79GA,ch55) Disciplinary contested case procedures. Unless in conflict with a provision of 2001 Iowa Acts, chapter 55, or board rules in this chapter, all of the procedures set forth in 193—Chapter 7 shall apply to disciplinary contested cases initiated by the board.

16.3(1) Type of sanctions. The board has authority to impose the following disciplinary sanctions:

a. Revoke a license issued by the board. In the event of a revocation, the licensee shall not be allowed to remain a member, partner or shareholder of a business entity if the law requires that all members, partners or shareholders of such an entity be actively involved.

b. Suspend a license issued by the board. A CPA or LPA who is under suspension shall refrain, during the period of the suspension, from all facets of the ordinary practice of public accounting.

c. Revoke or suspend the privilege to engage in one or more areas of the practice of public accounting.

d. Impose a period of probation. As a condition to a period of probation, the board may impose terms and conditions deemed appropriate by the board which may include, but are not limited to, the following:

(1) The board may require the licensee to undergo a quality review or peer review under the board’s supervision. The licensee shall select, subject to approval by the board, aCPA, LPA, or a firm of CPAs or LPAs, or a review program which would qualify as a peer review program under 193A— Chapters 11 and 12. The costs of the review shall be paid by the licensee. The board shall be furnished a copy of the report issued by the reviewing party and may require remedial actions or education as a result of the report findings.

(2) The board may require the licensee to enter into an agreement with a CPA, an LPA, or a firm of CPAs or LPAs to obtain a preissuance review of any audits, compilations, or reviews issued by the licensee or other public accounting services performed during the period of probation. The agreement shall be preapproved by the board. The board may require the licensee to report regularly concerning the preissuance reviews conducted pursuant to the agreement. Any cost incurred in obtaining preissuance review shall be paid by the licensee.

(3) A substance abuse evaluation and such care and treatment as are recommended in the evaluation or otherwise appropriate under the circumstances.

e. Impose requirements regarding continuing education. The board may specify that a designated amount of continuing education be taken in specific subjects and may specify the time period for completing these courses. The board may also specify whether that continuing education be in addition to the continuing education routinely required for license renewal. The board may also specify that additional continuing education be a condition for the termination of any suspension or reinstatement of a certificate, permit, license, or registration. The board may also specify that current reference materials be obtained and maintained.

f. Require reexamination, using one or more parts of the CPA or LPA examination given to candidates for the CPA certificate or the LPA license.

g. Impose civil penalties, the amount of which shall be at the discretion of the board, but which shall not exceed $1,000 per violation. Civil penalties may be imposed for any of the disciplinary violations specified in rule 193A—14.2(17A, 272C,79GA,ch55).

h. Issue a reprimand.

i. Order the licensee to alter a professional practice or refrain from engaging in a particular act or practice in the future.

16.3(2) Imposing discipline. Discipline may be imposed against a licensee only by the affirmative vote of a majority of the members of the board who are not disqualified.

16.3(3) Voluntary surrender. The board may accept the voluntary surrender of a license to resolve a pending disciplinary contested case or pending disciplinary investigation. The board shall not accept a voluntary surrender of a license to resolve a pending disciplinary investigation unless a statement of charges will be filed along with the order accepting the voluntary surrender. Such a voluntary surrender is considered disciplinary action and shall be published in the same manner as is applicable to any other form of disciplinary order.

16.3(4) Notification requirements. Whenever a license is revoked, suspended, restricted, or voluntarily surrendered under this chapter, the licensee shall:

a. Within 15 days of receipt of the board’s final order, notify in writing all clients of the fact that the license has been revoked, suspended or voluntarily surrendered or that the practice of the licensee has been restricted; for example, the licensee may agree to discontinue governmental audits. Such notice shall advise the client to obtain alternative professional services, unless the restriction at issue would not impact the public accounting services provided for that client;

b. Within 30 days of receipt of the board’s final order, the licensee shall file with the board copies of the notices sent pursuant to paragraph 16.3(4)“a.” Compliance with this requirement shall be a condition for an application for reinstatement.

16.3(5) Civil penalties. Factors the board may consider when determining whether to assess and the amount of civil penalties include:

a. Whether other forms of discipline are being imposed for the same violation.

b. Whether the amount imposed will be a substantial deterrent to the violation.

c. The circumstances leading to the violation.

d. The severity of the violation and the risk of harm to the public.

e. The economic benefits gained by the licensee as a result of the violation.

f. The interest of the public.

g. Evidence of reform or remedial action.

h. Time lapsed since the violation occurred.

i. Whether the violation is a repeat offense following a prior cautionary letter, disciplinary order, or other notice of the nature of the infraction.

j. The clarity of the issues involved.

k. Whether the violation was willful and intentional.

l. Whether the licensee acted in bad faith.

m. The extent to which the licensee cooperated with the board.

n. Whether the licensee improperly used a title restricted by 2001 Iowa Acts, chapter 55, performed attest services or issued a compilation report when not properly licensed to do so, or with a lapsed, inactive, suspended, restricted or revoked license, engaged in practices which require licensure.

16.4(1) The board shall publish in the board’s newsletter, or in another professional publication designated by the board, the name of each licensee disciplined by the board, along with a brief description of the underlying circumstances, regardless of the nature of the violation.

16.4(2) The board shall issue a formal press release in those instances in which a certificate, permit, or license has been suspended or revoked.

16.4(3) The board shall notify other state boards of accountancy that have issued a similar license to an Iowa licensee of disciplinary action taken against the Iowa licensee. The board shall also notify the National Association of State Boards of Accountancy of disciplinary action taken against an Iowa licensee.

16.5(1) The term “reinstatement” as used in this rule and in rule 193—7.38(17A,272C) shall include the reinstatement of a suspended license, the modification or removal of a practice restriction, the issuance of a license following the denial of an application to renew a license, and the issuance of a new license following the revocation or voluntary surrender of a license.

16.5(2) Any person whose license has been revoked, suspended or restricted by the board, or who has voluntarily surrendered a license to conclude a disciplinary investigation or proceeding, or whose application to renew a license has been denied may apply to the board to modify or terminate the suspension, issue or reissue the license, or modify or remove the restriction in accordance with 2001 Iowa Acts, chapter 55, section 12, rule 193—7.38(17A,272C), the provisions of this rule, and the terms of the order of revocation, suspension or restriction, denial of license renewal, or acceptance of voluntary surrender of a license.

16.5(3) If the applicable order did not establish terms upon which the licensee may apply for reinstatement, an initial application for reinstatement may not be made until one year has elapsed from the date of the order which revoked, suspended or restricted the license, denied license renewal, or accepted a voluntary surrender.

16.5(4) All proceedings for reinstatement shall be initiated by the respondent and shall be subject to the procedures set forth in rule 193—7.38(17A,272C). In addition, the board may grant an applicant’s request to appear informally before the board prior to the issuance of a notice of hearing on the application if the applicant requests an informal appearance in the application and agrees not to seek to disqualify on the ground of personal investigation board members or staff before whom the applicant appears.

16.5(5) An order granting an application for reinstatement may impose such terms and conditions as the board deems desirable, which may include one or more of the types of disciplinary sanctions described in rule 193A— 16.3(272C,79GA,ch55).

16.5(6) The board shall not grant an application for reinstatement when the initial order which revoked, suspended or restricted the license, denied license renewal, or accepted a voluntary surrender was based on a criminal conviction and the applicant cannot demonstrate to the board’s satisfaction that:

a. All terms of the sentencing or other criminal order have been fully satisfied;

b. The applicant has been released from confinement and any applicable probation or parole; and

c. Restitution has been made or is reasonably in theprocess of being made to any victims of the crime.

These rules are intended to implement Iowa Code chapters 17A and 272C and 2001 Iowa Acts, chapter 55.

CHAPTER 17
ENFORCEMENT PROCEEDINGS
AGAINST NONLICENSEES

193A—17.1(79GA,ch55) Civil penalties against nonlicensees. The board may impose civil penalties by order against a person who is not licensed by the board pursuant to 2001 Iowa Acts, chapter 55, based on the unlawful practices specified in 2001 Iowa Acts, chapter 55, section 13. In addition to the procedures set forth in 2001 Iowa Acts, chapter 55, section 14, this chapter shall apply.

193A—17.2(17A,79GA,ch55) Investigations. The board is authorized by Iowa Code subsection 17A.13(1) and 2001 Iowa Acts, chapter 55, section 11, to conduct such investigations as are needed to determine whether grounds exist to impose civil penalties against a nonlicensee. Such investigations shall conform to the procedures outlined in 193A— Chapter 15. Complaint and investigatory files concerning nonlicensees are not confidential except as may be provided in Iowa Code chapter 22.

193A—17.3(17A,79GA,ch55) Notice of intent to impose civil penalties. The notice of the board’s intent to issue an order to require compliance with 2001 Iowa Acts, chapter 55, section 13, and to impose a civil penalty shall be served upon the nonlicensee by restricted certified mail, return receipt requested, or personal service in accordance with Iowa R. Civ. P. 1.305. Alternatively, the nonlicensee may accept service personally or through authorized counsel. The notice shall include the following:

1. A statement of the legal authority and jurisdiction under which the proposed civil penalty would be imposed.

2. Reference to the particular sections of the statutes and rules involved.

3. A short, plain statement of the alleged unlawful practices.

4. The dollar amount of the proposed civil penalty and the nature of the intended order to require compliance with 2001 Iowa Acts, chapter 55, section 13.

5. Notice of the nonlicensee’s right to a hearing and the time frame in which hearing must be requested.

6. The address to which written request for hearing must be made.

17.4(1) Nonlicensees must request a hearing within 30 days of the date the notice is mailed if served through restricted certified mail to the last–known address, or within 30 days of the date of service if service is accepted or made in accordance with Iowa R. Civ. P. 1.305. A request for hearing must be in writing and is deemed made on the date of the nonmetered United States Postal Service postmark or the date of personal service.

17.4(2) If a request for hearing is not timely made, the board chair or the chair’s designee may issue an order imposing the civil penalty and requiring compliance with 2001 Iowa Acts, chapter 55, section 13, as described in the notice. The order may be mailed by regular first–class mail or served in the same manner as the notice of intent to impose civil penalty.

17.4(3) If a request for hearing is timely made, the board shall issue a notice of hearing and conduct a hearing in the same manner as applicable to disciplinary cases against licensees.

17.4(4) A nonlicensee may waive the right to hearing and all attendant rights and enter into a consent order imposing a civil penalty and requiring compliance with 2001 Iowa Acts, chapter 55, section 13, at any stage of the proceeding upon mutual consent of the board.

17.4(5) The notice of intent to issue an order and the order are public records available for inspection and copying in accordance with Iowa Code chapter 22. Copies may be published as provided in rule 193A—16.4(272C,79GA,ch55). Hearings shall be open to the public.

193A—17.5(79GA,ch55) Factors to consider. In addition to the factors set forth in 2001 Iowa Acts, chapter 55, section 14(3), the board may consider the following when determining the amount of civil penalty to impose, if any:

1. The time lapsed since the unlawful practice occurred.

2. Evidence of reform or remedial actions.

3. Whether the violation is a repeat offense following a prior warning letter or other notice of the nature of the infraction.

4. Whether the violation involved an element of deception.

5. Whether the unlawful practice violated a prior order of the board, court order, cease and desist agreement, consent order, or similar document.

6. The clarity of the issue involved.

7. Whether the violation was willful and intentional.

8. Whether the nonlicensee acted in bad faith.

9. The extent to which the nonlicensee cooperated with the board.

193A—17.6(79GA,ch55) “Safe harbor” language. Persons who do not hold a CPA certificate or LPA license and firms which do not hold a CPA or LPA firm permit to practice shall not use in any statement relating to the financial affairs of a person or entity language which is conventionally used by CPAs or LPAs in reports on financial statements. Pursuant to the Iowa Accountancy Act of 2001, 2001 Iowa Acts, chapter 55, section 13(8), such persons or firms may use the following “safe harbor” language:

“I (we) have prepared the accompanying (financial statements) of (name of entity) as of (time period) for the (period) then ended. This presentation is limited to preparing in the form of financial statements information that is the representation of management (owners). I (we) have not audited, reviewed or compiled the accompanying financial statements and accordingly do not express an opinion or any other form of assurance on them.”

193A—17.7(79GA,ch55) Enforcement options. In addition, or as an alternative, to the administrative process described in these rules, the board may seek an injunction in district court, refer the matter for criminal prosecution, or enter into a consent order as provided in 2001 Iowa Acts, chapter 55, section 14.

These rules are intended to implement Iowa Code chapter 17A and 2001 Iowa Acts, chapter 55.

CHAPTER 18
LICENSEES’ DUTY TO REPORT

18.1(1) Iowa Code subsection 272C.9(2) requires one who is licensed by the board to report acts or omissions of others licensed by the board that demonstrate a lack of qualifications which are necessary to assure the residents of this state of a high standard of professional and occupational care. For the purposes of this rule, the failure to perform an engagement for a client in accordance with professional standards is a demonstration by a CPA or LPA that the CPA or LPA may lack such qualifications. These professional standards are set forth in the following:

a. 193A—subrule 13.3(1) as to the independence of a CPA when expressing opinions on financial statements.

b. 193A—subrule 13.3(3) as to the integrity and objectivity of a CPA or LPA when performing services for clients.

c. 193A—subrule 13.3(4) as to the independence and objectivity of a CPA or LPA who pays or accepts commissions.

d. 193A—subrule 13.3(5) as to the independence and objectivity of a CPA or LPA who performs services for a contingent fee.

e. 193A—subrule 13.4(1) as to the competence of a CPA or LPA.

f. 193A—subrule 13.4(2) as to the compliance with generally accepted engagement standards.

g. 193A—subrule 13.4(3) as to the compliance with generally accepted accounting principles.

h. 193A—subrule 13.4(4) as to associating the CPA’s name with forecasts.

18.1(2) When a licensee observes a violation of any of the subrules referenced in subrule 18.1(1), the licensee shall report the violation in writing to the board office setting forth the name of the CPA or LPA alleged to have committed the violation and the rule(s) violated, together with a copy of all material that evidences the violation.

18.2(1) Iowa Code subsection 272C.9(3) requires a licensee to report to the board every adverse judgment in a professional malpractice action to which the person is a party and every settlement of a claim against the licensee. For the purposes of this rule, malpractice actions brought against a firm registered with the board will be deemed to have been brought against the individual(s) registered with the board provided the individual(s) is a partner, member or owner in the office that performed the services that led to the malpractice action.

18.2(2) When a CPA or LPA is a party to an adverse judgment resulting from a professional malpractice action or is a party to a settlement of a claim resulting from an allegation of malpractice, the CPA or LPA shall file a report in writing forwarded to the board office, setting forth the name and address of the client, the date the claim was originally made, a brief description of the circumstances precipitating the claim and a copy of the judgment or settlement agreement resulting from the claim. It is the intent of this rule to require the reporting of all judgments or settlements resulting from claims that were initiated by court action and not claims of malpractice that are made against a CPA or LPA that are not filed in a court of law.

193A—18.3(79GA,ch55) Timely reporting. The reports required by rules 193A—18.1(79GA,ch55) and 193A— 18.2(79GA,ch55) are to be forwarded to the board within a reasonable period of time from the initial obtaining of the information required to be reported. A period of less than 30 days will be considered to be a reasonable period of time.

193A—18.4(79GA,ch55) Failure to make reports. Upon obtaining information that a CPA or LPA failed to file a report required by rule 193A—18.1(79GA,ch55) or 193A— 18.2(79GA,ch55) within a reasonable period of time, the board shall initiate a disciplinary proceeding against the CPA or LPA who failed to make the required report.

These rules are intended to implement Iowa Code chapter 272C.

CHAPTER 19
TRANSITION RULES

193A—19.1(542C,79GA,ch55) Purpose and timing. The transition rules in this chapter initially became effective December 19, 2001, to aid transitional planning for those persons holding CPA certificates, AP licenses or permits to practice issued in Iowa prior to July 1, 2002. 2001 Iowa Acts, chapter 55, replaces Iowa Code chapter 542C as of July 1, 2002. Because the transition rules may impact the legal rights and duties of some persons for a period of time, the chapter will remain in place until July 1, 2004.

193A—19.2(542C,79GA,ch55) CPA certificates and permits to practice. 2001 Iowa Acts, chapter 55, eliminates the distinction between CPA certificates and permits to practice. As of July 1, 2002, all persons holding CPA certificates may use the title “CPA” without the need for a separate individual permit to practice. CPAs wishing to perform attest services or use the title “CPA” in a firm name, however, may do so only within a CPA firm which holds a firm permit to practice.

19.2(1) Certificate holders deemed qualified. A person holding a CPA certificate issued in Iowa prior to July 1, 2002, is deemed to have satisfied the education, examination and experience qualifications for a CPA certificate under the Iowa Accountancy Act of 2001.

19.2(2) Certificates remain valid. CPA certificates issued prior to July 1, 2002, remain valid on and after July 1, 2002, if properly renewed and in good standing.

19.2(3) Biennial renewal. CPA certificates issued prior to July 1, 2002, will continue to be renewed on a biennial schedule:

a. CPA certificates held by persons whose last names begin with A to K expire on June 30, 2002, if not renewed on or prior to June 30, 2002. The biennial renewal fee for the period between July 1, 2002, and June 30, 2004, is $100.

b. CPA certificates held by persons whose last names begin with L to Z expire on June 30, 2003, if not renewed on or prior to June 30, 2003. The biennial renewal fee for the period between July 1, 2003, and June 30, 2005, is $100.

19.2(4) Reinstating lapsed certificates. A CPA certificate which has lapsed may be restored to effective status at any time prior to July 1, 2002, upon the board’s receipt of a proper application accompanied by a reinstatement fee of $100 and a renewal fee of $25 for persons whose last names begin with A to K or $50 for persons whose last names begin with L to Z. A person who fails to reinstate a lapsed CPA certificate prior to July 1, 2002, may reinstate on or after July 1, 2002, but in addition to payment of applicable renewal fees and a $100 reinstatement fee, the applicant must satisfy continuing education requirements as described in subrule 19.4(3).

19.2(5) Continuing education. Commencing July 1, 2002, every CPA certificate holder is required to complete continuing education as a condition of certificate renewal. Continuing education requirements are described in rule 193A—19.4(79GA,ch55).

19.2(6) Peer review. Commencing July 1, 2002, a CPA certificate holder who issues compilation reports other than through a CPA or LPA firm which holds a firm permit to practice is required to complete compilation peer review as a condition of certificate renewal. Peer review requirements are described in rule 193A—19.5(542C,79GA,ch55).

19.2(7) Permits to practice phased out. As of July 1, 2002, the board will no longer issue or renew individual permits to practice as a CPA. Permits to practice will continue to be issued to CPA firms as described in subrule 19.2(9).

19.2(8) Attest services. A CPA certificate holder who is responsible for supervising attest services or who signs, or authorizes someone to sign, the accountant’s attest report on the financial statements on behalf of a CPA firm must be qualified to perform attest services. The board is in the proc–ess of developing experience and competency standards for attest services. While additional methods of attaining proper qualification may accordingly be developed, CPAs holding an individual permit to practice will qualify as follows:

a. A person holding or having held an individual permit to practice as a CPA issued prior to July 1, 2002, will be deemed to qualify to perform attest services on and after July 1, 2002, in a CPA firm holding a firm permit to practice, provided that appropriate continuing education is maintained as provided in subrule 19.4(4).

b. A CPA certificate holder who is in the process of attaining the two years of full–time, supervised experience as required to hold an individual permit to practice will be deemed qualified to perform attest services if the certificate holder fully satisfies the requirements outlined in 193A— 6.3(79GA,ch55) and thereafter maintains appropriate continuing education. Such experience must be attained in a CPA firm holding a firm permit to practice and under the supervision of a CPA in the following areas of practice:

(1) Application of a variety of auditing procedures and techniques to the usual and customary financial transactions recorded in accounting records;

(2) Preparation of audit working papers covering the examination of the accounts usually found in accounting rec–ords;

(3) Planning of the program of audit work including the selection of the procedures to be followed;

(4) Preparation of written explanations and comments on the findings of the examinations and on the content of accounting records; and

(5) Preparation and analysis of financial statements together with explanations and notes thereon.

19.2(9) Firm permits to practice. Firm permits to practice are renewed annually and expire June 30, 2002. Each firm must file an initial application for a firm permit to practice for the period beginning July 1, 2002.

a. Initial firm permits to practice will be issued for the period beginning July 1, 2002, and ending June 30, 2003.

b. An application for an initial firm permit to practice will be deemed timely if hand–delivered or postmarked by July 31, 2002, and, if granted, be effective as of July 1, 2002. Application forms for firm permits to practice will be available by May 15, 2002, and may be filed prior to enactment of the new law.

c. CPA firms holding or having held firm permits to practice issued prior to July 1, 2002, are deemed to qualify for a firm permit to practice under the Iowa Accountancy Act of 2001.

d. Firm permits to practice will be renewed annually on a fiscal year ending June 30. The initial application fee will be $50. The annual renewal fee will be $50.

193A—19.3(542C,79GA,ch55) AP licenses and permits to practice. 2001 Iowa Acts, chapter 55, creates a new license of licensed public accountant (LPA) to replace the current license of accounting practitioner (AP). A person holding a license as an LPA may practice nonattest public accounting using the title “LPA” without the need for a separate individual permit to practice. An LPA wishing to use the title “LPA” in a firm name, however, may do so only within an LPA firm which holds a firm permit to practice.

19.3(1) AP license holders deemed qualified. A person holding an AP license in full force and effect on July 1, 2002, is deemed qualified to hold an LPA license under the Iowa Accountancy Act of 2001.

19.3(2) Licenses remain valid. An AP license issued prior to July 1, 2002, remains valid on and after July 1, 2002, if properly renewed and in good standing. Such license shall be treated for all purposes as an LPA license and shall be renewed as an LPA license. The board shall issue at no charge a replacement license reflecting the new LPA title and retaining the previously issued license number.

19.3(3) Biennial renewal. An AP license issued prior to July 1, 2002, will be renewed as an LPA license on a biennial schedule:

a. Licenses held by persons whose last names begin with A to K expire on June 30, 2002, if not renewed on or prior to June 30, 2002. The biennial renewal fee for the period between July 1, 2002, and June 30, 2004, is $100.

b. Licenses held by persons whose last names begin with L to Z expire on June 30, 2003, if not renewed on or prior to June 30, 2003. The biennial renewal fee for the period between July 1, 2003, and June 30, 2005, is $100.

19.3(4) Reinstating lapsed licenses. An AP license which has lapsed may be restored to effective status at any time prior to July 1, 2002, upon the board’s receipt of a proper application accompanied by a reinstatement fee of $100, prorated renewal fee, and evidence of completion of satisfactory continuing education. A person who fails to reinstate a lapsed AP license prior to July 1, 2002, must reapply for an LPA license, pay applicable application and reinstatement fees, and satisfy continuing education requirements, but the person will be deemed to be qualified for an LPA license.

19.3(5) Continuing education. Continuing education requirements applicable to a person holding an AP license shall remain applicable to a person holding an LPA license. In addition, an LPA who issues compilation reports shall complete compilation continuing education as provided in subrule 19.4(2).

19.3(6) Peer review. Commencing July 1, 2002, an LPA license holder who issues compilation reports other than through a CPA firm or LPA firm which holds a firm permit to practice is required to complete compilation peer review as a condition of license renewal. Peer review requirements are described in rule 193A—19.5(542C,79GA,ch55).

19.3(7) Permits to practice phased out. As of July 1, 2002, the board will no longer issue or renew individual permits to practice. Permits to practice will continue to be issued to LPA firms as described in subrule 19.3(8).

19.3(8) Firm permits to practice. Firm permits to practice are renewed annually and expire June 30, 2002. Every firm must file an initial application for a firm permit to practice for the period beginning July 1, 2002.

a. Initial firm permits to practice will be issued for the period beginning July 1, 2002, and ending June 30, 2003.

b. An application for an initial firm permit to practice will be deemed timely and, if granted, be effective as of July 1, 2002, if hand–delivered or postmarked by July 31, 2002. Application forms for firm permits to practice will be available by May 15, 2002, and may be filed prior to enactment of the new law.

c. An LPA firm holding or having held a firm permit to practice issued prior to July 1, 2002, is deemed to qualify for a firm permit to practice under the Iowa Accountancy Act of 2001.

d. Firm permits to practice will be renewed annually on a fiscal year ending June 30. The initial application fee will be $50. The annual renewal fee will be $50.

193A—19.4(79GA,ch55) Continuing education. Commencing July 1, 2002, a person holding a CPA certificate or LPA license must complete, as a condition of certificate or license renewal, 120 hours of qualifying continuing education as outlined in rule 193A—10.5(79GA,ch55) within the three–year period ending on the December 31 preceding the application for certificate or license renewal. This requirement mirrors the continuing education required as a condition to renew an individual CPA or AP permit to practice.

19.4(1) Transition period for persons holding CPA certificates. A substantial number of persons holding CPA certificates have not previously been subject to continuing education requirements because they have not held a permit to practice. In light of that circumstance, a CPA certificate holder will be deemed to be in compliance with continuing education requirements if the certificate holder has completed qualifying continuing education in the amounts and within the time periods stated in the following chart:

19.4(2) Commencing with the biennial renewal period ending June 30, 2003, in each biennial period in which compilation reports are issued, a CPA certificate holder or LPA license holder who is responsible for supervising compilation services or who signs or authorizes someone to sign the accountant’s compilation report on the financial statements on behalf of a firm shall complete as a condition of certificate or license renewal a minimum of seven hours of continuing education devoted to SSARS.  When required, the SSARS continuing education shall be completed within the two–year period ending on the December 31 preceding the application for certificate or license renewal.

19.4(3) Lapsed certificates or licenses. In addition to any other applicable requirement, a person filing an application between July 1, 2002, and June 30, 2004, to reinstate a CPA certificate which was initially issued prior to July 1, 2002, shall complete qualifying continuing education as follows: The applicant must have completed either 120 hours of qualifying education in the three years preceding the date of the application, 80 hours of qualifying education in the two years preceding the date of the application, or 40 hours of qualifying education in the one year preceding the date of the application. After the application is granted, continuing education will be required as a condition of biennial renewal on the schedule outlined in subrule 19.4(1).

19.4(4) Special caution for CPAs performing attest services. A CPA performing attest services is cautioned that the minimum requirements for qualifying continuing education under this rule may or may not satisfy other standards applicable to the performance of attest services, such as “yellow book” standards applicable to government audits.

193A—19.5(542C,79GA,ch55) Peer review. Under the Iowa Accountancy Act of 2001, peer review is required as a condition of renewal for a CPA or LPA who issues compilation reports other than through a CPA firm or LPA firm which holds a permit to practice, and as a condition of firm permit renewal for LPA firms which issue compilation reports and CPA firms which provide attest services or issue compilation reports.

19.5(1) Because of the expanded peer review requirements and the need for peer review programs to accommodate increased demand, persons or firms subject to peer review for the first time when the law changes on July 1, 2002, shall have until June 30, 2004, to complete their first peer review program.

19.5(2) Persons or firms which have already been subject to peer review prior to July 1, 2002, shall continue with the schedule outlined in 193A—Chapter 11.

19.5(3) Persons or firms which are initially issued a certificate, license or permit on or after July 1, 2002, or which become subject to peer review for the first time after June 30, 2002, due to changes in their practice, shall complete peer review within 18 months of the initial engagement, as described in rule 193A—11.1(79GA,ch55), or by June 30, 2004, whichever date is later.

19.5(4) Satisfactory completion of existing peer review programs for compilation services administered by the Iowa Society of Certified Public Accountants, the National Society of Accountants, or substantially similar peer review programs in Iowa or other states will satisfy the compilation peer review requirement.

These rules are intended to implement 2001 Iowa Acts, chapter 55.

Pursuant to the authority of Iowa Code section 231.44, the Department of Elder Affairs hereby gives Notice of Intended Action to amend Chapter 9, “Resident Advocate Committees,” Iowa Administrative Code.

The proposed amendments are intended to modify distribution of reports of committee meetings to include submittal to the Department of Elder Affairs by the resident advocate coordinator.

The proposed amendments also include a new rule in Chapter 9 related to accountability measures. This rule provides a protocol for resolution of issues and concerns, as well as a process for handling unresolved issues and concerns.

Consideration will be given to all written suggestions or comments on the proposed amendments received on or before March 26, 2002. Comments should be addressed to Mary Ann Young, Administrative Rules Coordinator, Iowa Department of Elder Affairs, 200 Tenth Street, Suite 300, Des Moines, Iowa 50309–3609; fax (515)242–3300; telephone (515)242–3312.

These amendments are intended to implement Iowa Code section 231.44.

The following amendments are proposed.

ITEM 1. Amend paragraph 9.6(2)“c” as follows:

c. The secretary shall submit written minutes complete a report on the committee meeting on the report form designated by the department. Copies of the report shall be submitted to the administrator and to the resident advocate co–ordinator if the facility is a nursing facility or residentialcare facility. Copies of each report shall be sent by the co–ordinator to the office of long–term care resident advocate/ombudsman.

ITEM 2. Amend 321—Chapter 9 by adopting the following new rule:

9.15(1) The department shall develop a standardized report form to be used by resident advocate committee secretaries. The form shall specify issues and concerns identified by the committee, the facility’s response, and whether the issue or concern was resolved.

9.15(2) An issue or concern shall be designated as resolved when both the committee and the facility agree that the issue or concern has been resolved. If the facility disagrees with the committee’s determination that an issue or concern has not been resolved, the aggrieved party mayrequest a review by the office of the long–term care resident advocate/ombudsman by submitting a written request within 20 calendar days of the issuance of the form described in 9.6(2)“c.”

9.15(3) Upon receipt of a request, the office of the long–term care resident advocate/ombudsman shall contact the facility administrator and the chairperson of the resident advocate committee to discuss the request. The office of the long–term care resident advocate/ombudsman shall have the discretion to uphold the committee’s determination that the issue or concern is unresolved, designate the issue or concern as resolved, or redefine the issue or concern as a means to negotiate a compromise.

9.15(4) The decision of the office of the long–term care resident advocate/ombudsman shall be made within 20 calendar days of the receipt of a request for review. Additional time may be allowed upon agreement by the resident advocate committee and the facility administrator.

9.15(5) An aggrieved party has 30 calendar days from the receipt of written notice of the decision of the office of the long–term care resident advocate/ombudsman to request a hearing. The department shall transmit the request to the department of inspections and appeals pursuant to 481 IAC 10.4(10A).

9.15(6) The hearing shall be conducted by the department of inspections and appeals pursuant to 481 IAC 10.1(10A) to 10.24(10A,17A).

9.15(7) All appeals shall be conducted pursuant to 321 IAC 2.7(4).

9.15(8) Judicial review. Procedures for judicial review shall be conducted pursuant to 321 IAC 2.7(6).

9.15(9) For each committee, the office of the long–term care resident advocate/ombudsman shall record the number of issues and concerns listed on the form designated under 9.6(2)“c” and the number resolved. Once a year, the office of the long–term care resident advocate/ombudsman shall calculate the percentage of issues and concerns identified by the committee that are resolved based on the total number of issues and concerns identified during the reporting period.

9.15(10) By May 1, 2002, the office of the long–term care resident advocate/ombudsman shall report to the department of human services the resolution rate of each facility based on resident advocate committee reports generated between October 1, 2001, and March 31, 2002.

9.15(11) By May 1 of each subsequent year, the office of the long–term care resident advocate/ombudsman shall report to the department of human services the resolution rate of each facility based on resident advocate committee reports generated between January 1 and December 31 of the preceding year.

Pursuant to the authority of Iowa Code section 234.6, the Department of Human Services proposes to amend Chapter 14, “Offset of County Debts Owed Department,” appearing in the Iowa Administrative Code.

These amendments correct organizational references related to offset of county debts owed the Department. These incorrect references were identified by the Department while completing the rule assessment mandated by Executive Order Number 8.

These amendments do not provide for waivers in specified situations because these amendments merely correct organizational references.

Any interested person may make written comments or suggestions on the proposed amendments on or before March 27, 2002. Comments or suggestions should be addressed to the Office of Policy Analysis, Department ofHuman Services, Hoover State Office Building, 1305East Walnut, Des Moines, Iowa 50319–0114. Comments may be sent by fax to (515)281–4980 or by electronic mailto policyanalysis@dhs.state.ia.us.

These amendments are intended to implement Iowa Code section 234.6.

The following amendments are proposed.

ITEM 1. Amend rule 441—14.2(234) as follows:

Amend subrule 14.2(1), paragraph “c,” as follows:

c. Require the county to send a written response to the bureau of finance division of fiscal management within 20 calendar days of the date of notification.

Amend subrule 14.2(2), introductory paragraph, as follows:

14.2(2) Response from county regarding debt. The written response from the county to the bureau of finance division of fiscal management shall state the position of the county regarding the amount due.

Amend subrule 14.2(3) as follows:

14.2(3) Review of county response regarding debt. The bureau of finance division of fiscal management shall review within ten calendar days of receipt of the written response the basis for the bill and the county’s position as stated in the written response.

a. The bureau of finance division of fiscal management shall make the necessary adjustments to subsequent billings sent to the county when the bureau of finance division of fiscal management agrees with the county’s position regarding the liability and shall so notify the county.

b. The bureau of finance division of fiscal management shall forward to the appropriate departmental division all information regarding the basis for the bill and the county’s written response when the bureau of finance division of fiscal management disagrees with the county’s position.

(1) The division shall establish the department’s final decision regarding the amount owed in accordance with established procedures.

(2) The division shall notify the county and the bureau of finance division of fiscal management within 30 calendar days of receipt of the appeal by the division of the department’s final decision regarding the amount owed.

(3) The bureau of finance division of fiscal management shall make the necessary adjustments to subsequent billings sent to the county regarding the liability and shall so notify the county.

ITEM 2. Amend rule 441—14.3(234) as follows:

14.3(1) Notification to department of revenue and finance. The bureau of finance division of fiscal management shall provide to the department of revenue and finance a list of the counties with amounts owed as established through rule 441—14.2(234). This list shall be maintained by the department of revenue and finance in a liability file.

14.3(2) Notification of change. The bureau of finance division of fiscal management shall notify the department of revenue and finance of any change in the status of a debt in the liability file within 30 calendar days from the occurrence of the change.

14.3(3) Certification of file. The bureau of finance division of fiscal management shall certify the file to the department of revenue and finance semiannually in a manner prescribed by the department of revenue and finance.

ITEM 3. Amend subrule 14.4(1) as follows:

Amend the introductory paragraph as follows:

14.4(1) Notice. The bureau of finance division of fiscal management shall send notification to the county within ten calendar days from the date the bureau of finance division of fiscal management is notified by the department of revenue and finance of a potential offset. This notification shall include:

Amend paragraph “e,” subparagraph (1), as follows:

(1) The county shall send a written response to the bureau of finance division of fiscal management within 20 calendar days of the date of the notification.

Amend paragraph “g” as follows:

g. The bureau of finance division of fiscal management telephone number for the county to contact in the case of questions.

ITEM 4. Amend rule 441—14.5(234) as follows:

441—14.5(234) Review of county response regarding offset. The bureau of finance division of fiscal management shall review within ten calendar days of receipt of the written response the basis for the offset and the county’s position as stated in the written appeal.

14.5(1) Agreement with county. The bureau of finance division of fiscal management shall not respond to the department of revenue and finance if the bureau of finance division of fiscal management agrees with the county’s position. The amount of the payment shall be released to the county by the department of revenue and finance as prescribed in department of revenue and finance rule 701—150.5(421).

14.5(2) Disagreement with county. The bureau of finance division of fiscal management shall certify to the department of revenue and finance that the requirements of Iowa Code section 421.17 have been met.

ITEM 5. Amend subrule 14.6(2) as follows:

14.6(2) Notification to county. Once the offset has been completed, the bureau of finance division of fiscal management shall notify the county of the action taken along with the balance, if any, still due to the department.

Pursuant to the authority of Iowa Code section 225C.6, the Department of Human Services proposes to amend Chapter 25, “Disability Services Management,” appearing in the Iowa Administrative Code.

These amendments reinstate the criteria for the Mental Health and Developmental Disabilities Commission to grant a waiver from the Iowa Code requirement that a county must be affiliated with a community mental health center to qualify for receiving a payment from the Community Services Fund appropriation. These criteria were inadvertently rescinded from the Iowa Administrative Code, but are still used by the Commission.

These criteria were previously found in 441—Chapter 23, “Mental Illness, Mental Retardation, Developmental Disabilities, and Brain Injury Community Services,” at subrule 23.4(3). This chapter was written to establish policy for the creation and composition of the county or multicounty mental illness, mental retardation, developmental disabilities, and brain injury (MI/MR/DD/BI) planning councils and to define the responsibility of the planning councils. The chapter was rescinded effective July 1, 1999, since planning councils were no longer required to develop a services plan to apply for state MI/MR/DD/BI funds. (See ARC 8932A in the May 5, 1999, Iowa Administrative Bulletin.)

These amendments do not provide for waivers because this is an Iowa Code requirement that cannot be waived.

Consideration will be given to all written data, views, and arguments thereto received by the Office of Policy Analysis, Department of Human Services, Hoover State Office Building, 1305 East Walnut, Des Moines, Iowa 50319–0114, on or before March 27, 2002.

These amendments are intended to implement Iowa Code section 225C.7.

The following amendments are proposed.

ITEM 1. Reserve rules 441—25.78 to 441—25.80.

ITEM 2. Amend 441—Chapter 25 by adopting the following new Division VII:

PREAMBLE

This division establishes a process for the mental health and developmental disabilities commission to grant a waiver to any county not affiliated with a community mental health center.

441—25.81(225C) Waiver request. Counties that havenot established or that are not affiliated with a community mental health center under Iowa Code chapter 230A are required to expend a portion of the money received from theMI/MR/DD/BI community services fund to contract with a community mental health center for services. When a county determines that a contractual arrangement is undesirable or unworkable, it may request a waiver from this requirement for a fiscal year. The waiver request and justification may be submitted to the mental health and developmental disabilities commission with the application for MI/MR/DD/BI community services funds on Form 470–0887, Waiver Request, or it may be submitted separately. The commission may grant a waiver if the request successfully demonstrates that all of the following conditions are met:

25.81(1) Accreditation of provider. The provider or network of providers that the county has contracted with to deliver the identified mental health services is accredited as another mental health provider pursuant to 441—Chapter 24.

25.81(2) Contracted services. The county has contracted to provide services that are equal to or greater than the smallest set of services provided by an accredited community mental health center in the department’s service area for that county.

25.81(3) Eligible populations. The county contract includes the following eligible populations:

a. Children.

b. Adults.

c. Elderly.

d. Chronically mentally ill.

e. Mentally ill.

This rule is intended to implement Iowa Code section 225C.7.

Pursuant to the authority of Iowa Code sections 234.6 and 249A.4, the Department of Human Services proposes to amend Chapter 78, “Amount, Duration and Scope of Medical and Remedial Services,” appearing in the Iowa Administrative Code.

2002 Iowa Acts, House File 2245, limits Medicaid coverage for dental services for adults aged 21 and over. Adult Medicaid recipients in need of crowns, posts, cores, periodontal treatment, endodontic treatment, and orthodontia will need to identify alternative sources of funding or do without these services.

Early and Periodic Screening, Diagnosis and Treatment requirements mandate dental services for children. Adult dental services are an optional Medicaid service. Eliminating all adult dental services would increase other Medicaid expenditures for more costly emergency care, infection, and pain control. Cost–effective dental preventative services are being maintained for adults. Reducing all dental fees for children and adults would worsen the serious access problem already existing due to the relationship between access and fees.

These amendments do not provide for waivers in specified situations because of the underlying budget constraints. Needed savings would not be achieved if waivers were provided.

Any interested person may make written comments or suggestions on the proposed amendments on or before March 27, 2002. Address comments or suggestions to the Office of Policy Analysis, Department of Human Services, 1305 East Walnut, Des Moines, Iowa 50319–0114; by faxto (515)281–4980; or by E–mail to policyanalysis@ dhs.state.ia.us.

The substance of these amendments is also Adopted and Filed Emergency and is published herein as ARC 1426B. The purpose of this Notice is to solicit comment on that submission, the subject matter of which is incorporated by reference.

These amendments are intended to implement Iowa Code sections 234.6 and 249A.4.

Pursuant to the authority of Iowa Code sections 147.76 and 272C.3, the Board of Medical Examiners hereby gives Notice of Intended Action to amend Chapter 8, “Fees,” Iowa Administrative Code.

The Board approved the proposed amendment to current Chapter 8 during its regularly held meeting on February 7, 2002.

The proposed amendment will eliminate the fee for the Special Purpose Examination (SPEX) since it is no longer administered directly by the Board.

Any interested person may present written comments on this proposed amendment not later than 4 p.m. on March 26, 2002. Such written materials should be sent to Ann E. Mowery, Executive Director, Board of Medical Examiners, 400 S.W. Eighth Street, Suite C, Des Moines, Iowa 50309–4686, or ann.mowery@ibme.state.ia.us.

There will be a public hearing on March 26, 2002, at 4:15 p.m. in the Board office, at which time persons may present their views either orally or in writing. The Board of Medical Examiners office is located at 400 S.W. Eighth Street, Suite C, Des Moines, Iowa.

This amendment is intended to implement Iowa Code section 147.80.

The following amendment is proposed.

Amend rule 653—8.3(147,148,272C) as follows:

8.3(1) Fee to take USMLE Step 3. The fee for taking the United States Medical Licensing Examination Step 3 administered by the board’s designated testing service is the fee established by the Federation of State Medical Boards plus $50. See 653—subrule 9.4(2) for information about the examination.

Pursuant to the authority of Iowa Code section 147.76, the Medical Examiners Board hereby terminates the rule making initiated by its Notice of Intended Action published in the Iowa Administrative Bulletin on January 9, 2002, as ARC 1265B, amending Chapter 8, “Fees,” Chapter 9, “Permanent Physician Licensure,” and Chapter 10, “Resident, Special and Temporary Physician Licensure,” Iowa Administrative Code.

The Board approved the termination in a regularly scheduled meeting on February 7, 2002.

The Notice proposed to amend Chapters 8, 9, and 10 by increasing fees for initial and renewed permanent licenses and initial and renewed resident licenses.

The Board is terminating the rule making commenced in ARC 1265B and may renotice proposed rules if determined appropriate following further review.

Pursuant to the authority of Iowa Code sections 147.76 and 272C.3, the Board of Medical Examiners hereby gives Notice of Intended Action to amend Chapter 9, “Permanent Physician Licensure,” and Chapter 10, “Resident, Special and Temporary Physician Licensure,” Iowa Administrative Code.

The Board approved the proposed amendments to Chapters 9 and 10 during its regularly held meeting on February 7, 2002.

The proposed amendments reduce the total number of special physician licenses a foreign medical graduate may hold to five one–year licenses. The amendments affect anyone who applies for a special license for the first time after July 1, 2002. The amendments assist those with special licensure in qualifying for permanent licensure by allowing credit for postgraduate training for the years spent practicing under a special license.

Any interested person may present written comments on these proposed amendments not later than March 26, 2002, at 4 p.m. Such written materials should be sent to Ann E. Mowery, Executive Director, Board of Medical Examiners, 400 S.W. Eighth Street, Suite C, Des Moines, Iowa 50309– 4686, or ann.mowery@ibme.state.ia.us.

There will be a public hearing on March 26, 2002, at3 p.m. in the Board office, at which time persons may present their views either orally or in writing. The Board of Medical Examiners office is located at 400 S.W. Eighth Street, Suite C, Des Moines, Iowa.

These amendments are intended to implement Iowa Code sections 148.3 and 148.11.

The following amendments are proposed.

ITEM 1. Amend paragraph 9.3(1)“d” by adopting new subparagraph (4) as follows:

(4) The board shall accept each 12 months of practice as a special licensee as equivalent to one year of postgraduate training in a hospital–affiliated program approved by the board.

ITEM 2. Amend paragraph 10.4(1)“b” as follows:

b. A special license may be issued for a period of not more than one year and may be renewed annually prior to expiration. The number of renewals granted by the board is not limited for those holding a special license on July 1, 2002; thereafter, the board shall limit special licensure to no more than five years total. The renewal of any special license granted for the first time after July 1, 2001, shall be limited to those physicians who continue to meet the requirements of paragraph “a” of this subrule and subrule 10.4(5). Academic institutions are encouraged to assist special licensees in qualifying for permanent licensure if the physician is to remain in Iowa long term.

ITEM 3. Amend paragraph 10.4(1) by adopting newparagraph “i” as follows:

i. The board shall accept each 12 months of practice as a special licensee as equivalent to one year of postgraduate training in a hospital–affiliated program approved by the board for the purposes of permanent licensure.

Pursuant to the authority of Iowa Code sections 147.76 and 272C.3, the Board of Medical Examiners hereby amends Chapter 11, “Licensure Requirements,” Iowa Administrative Code.

The proposed amendment defines which physicians must take the mandatory training on identifying and reporting child and adult abuse.

The Board approved the amendment to Chapter 11 during its regularly held meeting on February 7, 2002.

Any interested person may present written comments on this proposed amendment not later than 4 p.m. on March 26, 2002. Such written materials should be sent to Ann E. Mowery, Executive Director, Board of Medical Examiners, 400 S.W. 8th Street, Suite C, Des Moines, Iowa 50309–4686 or ann.mowery@ibme.state.ia.us.

There will be a public hearing on March 26, 2002, at3 p.m. in the Board office, at which time persons may present their views either orally or in writing. The Board of Medical Examiners office is located at 400 S.W. 8th Street, Suite C, Des Moines, Iowa.

This amendment is intended to implement Iowa Code chapter 272C.

The following amendment is proposed.

Amend paragraph 11.4(1)“c” as follows:

c. Mandatory training for identifying and reporting abuse for permanent or special license renewal. The licensee shall complete the training as part of a category 1 activity or an approved training program. The licensee may utilize category 1 activity credit received for this training during the license period in which the training occurred to meet continuing education requirements in paragraph 11.4(1)“a.”

(1) A licensee who regularly provides primary health care to children shall indicate on the renewal application the completion of two hours of training in child abuse identification and reporting in the previous five years. “A licensee who regularly provides primary health care to children” means all emergency physicians, family practitioners, general practice physicians, pediatricians, and psychiatrists, and any other physician who regularly provides care to children.

(2) A licensee who regularly provides primary health care to adults shall indicate on the renewal application the completion of two hours of training in dependent adult abuse identification and reporting in the previous five years. “A licensee who regularly provides primary health care to adults” means all emergency physicians, family practitioners, general practitioners, internists, obstetricians, gynecologists, and psychiatrists, and any other physician who regularly provides care to adults.

(3) A licensee who regularly provides primary health care to adults and children shall indicate on the renewal application the completion of training on abuse identification and reporting in dependent adults and children. This training may be completed through separate courses as identified in subparagraphs (1) and (2) above or in one combined two–hour course that includes curricula for identifying and reporting child abuse and dependent adult abuse. “A licensee who regularly provides primary health care to children and adults” means all emergency physicians, family practitioners, general practitioners, internists, and psychiatrists, and any other physician who regularly provides care to children and adults.

(4) A licensee shall maintain a file containing records documenting mandatory training for identifying and reporting abuse, including dates, subjects, duration of programs, and proof of participation, for five years after the date of the training. The board may audit this information at any time within the five–year period.

Pursuant to the authority of Iowa Code sections 147.76, 272C.3, 272C.4, and 272C.5, the Board of Medical Examiners hereby gives Notice of Intended Action to amend Chapter 12, “Mandatory Reporting and Grounds for Discipline,” Iowa Administrative Code.

The Board approved the proposed amendments during its regularly held meeting on February 7, 2002.

The proposed amendment in Item 1 specifies relatives to whom a physician may not prescribe or dispense controlled substances.

The proposed amendments in Items 2 and 3 allow the Board to subpoena information that is privileged or confidential, as allowed under Iowa Code chapter 272C, for investigations or in contested cases.

Any interested person may present written comments on the proposed amendments not later than 4 p.m. on March 26, 2002. Such written materials should be sent to Ann E. Mowery, Executive Director, Board of Medical Examiners, 400 S.W. Eighth Street, Suite C, Des Moines, Iowa 50309–4686, or ann.mowery@ibme.state.ia.us.

There will be a public hearing on March 26, 2002, at 3:45 p.m. in the Board office, at which time persons may present their views either orally or in writing. The Board of Medical Examiners office is located at 400 S.W. Eighth Street, Suite C, Des Moines, Iowa.

The following amendments are proposed.

ITEM 1. Rescind subparagraph 12.4(19)“b”(2) and adopt the following new subparagraph in lieu thereof:

(2) Immediate family means the following individuals:

1. The physician’s spouse or domestic partner and either of the physician’s, spouse’s, or domestic partner’s parents, stepparents or grandparents,

2. The physician’s natural or adopted children or stepchildren and any child’s spouse, domestic partner or children,

3. The siblings of the physician or the physician’s spouse or domestic partner and the sibling’s spouse or domestic partner, or

4. Anyone else living with the physician.

ITEM 2. Amend subrule 12.6(4) as follows:

Amend the introductory paragraph as follows:

12.6(4) Issuance of investigatory subpoenas. Pursuant to Iowa Code sections 17A.13(1) and 272C.6(3), the board has the authority to issue subpoenas to compel the production of professional records, books, papers, correspondence and other records or real evidence which are deemed necessary as evidence in connection with a licensee disciplinary investigation. A subpoena issued by the board in connection with a licensee disciplinary investigation may seek evidence whether or not privileged or confidential under law.

Amend paragraph “a,” introductory paragraph, as follows:

a. The board administrator or designee may, upon the written request of a board investigator or on the administrator’s own initiative, issue a subpoena for evidence books, papers, records, and other real evidence which is necessary for the board to decide whether to institute a contested case proceeding. In the case of a subpoena for mental health records, each of the following conditions shall be satisfied prior to the issuance of a subpoena:

ITEM 3. Amend rule 653—12.21(17A,272C) as follows:

Amend the introductory paragraph as follows:

Amend subrule 12.21(1) as follows:

12.21(1) Subpoenas issued in a contested case may compel the attendance of witnesses at depositions or hearing, and may compel the production of books, papers, records, and other real evidence. The board administrator or designee may, upon the written request of the licensee or the state, issue a subpoena to compel the attendance of witnesses or to obtain evidence which is deemed necessary in connection with a contested case. A command to produce evidence or to permit inspection may be joined with a command to appear at deposition or hearing, or may be issued separately. Subpoenas shall be issued by the board administrator or designee upon written request. A request for a subpoena of mental health records must confirm that the conditions described in 12.6(4)“a” have been satisfied prior to the issuance of the subpoena.

Adopt the following new implementation sentence:

This rule is intended to implement Iowa Code sections 17A.13(1) and 272C.6(3).

Pursuant to the authority of Iowa Code subsection 455A.5(6), the Natural Resource Commission hereby gives Notice of Intended Action to amend Chapter 16, “Public, Commercial, Private Docks and Dock Management Areas,” Iowa Administrative Code.

These proposed amendments address new issues involving roofing and enclosure of private docks. These amendments clarify that boat hoists and boat slips can be covered with soft–sided materials to protect boats from weather. These amendments prohibit roofing or enclosure of private docks. These amendments restate fees for commercial docks but do not change current fees.

Any interested person may make written suggestions or comments on the proposed amendments on or before March 26, 2002. Such written materials should be directed to Gregory Jones, Land Acquisition and Management Bureau, Department of Natural Resources, Wallace State Office Building, 900 East Grand Avenue, Des Moines, Iowa 50319–0034; fax (515)281–6629. Persons who want to convey their views orally should contact Gregory Jones at (515)281–5806 or at the Bureau offices on the fourth floor of the Wallace StateOffice Building.

There will be a public hearing on March 27, 2002, at1 p.m. in the Fourth Floor East Conference Room of the Wallace State Office Building at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the amendments.

Any persons who intend to attend the public hearing and have special requirements such as those related to hearing or mobility impairments should contact the Department of Natural Resources to advise of special needs.

These amendments are intended to implement Iowa Code sections 461A.4, 461A.25, 461A.27 and 462A.2.

The following amendments are proposed.

ITEM 1. Amend rule 571—16.1(461A), definition of “catwalk,” as follows:

“Catwalk” means a walkway constructed for access from the dock to moored vessels or boat storage structures and is considered a part of the dock.

ITEM 2. Amend rule 571—16.1(461A) by adopting the following new definition in alphabetical order:

“Slip” means a mooring site adjacent to a dock.

ITEM 3. Amend rule 571—16.3(461A) by adopting the following new subrule:

16.3(5) Enclosed docks. Sides or roofs shall not enclose private docks on lakes.

ITEM 4. Amend rule 571—16.4(461A) by adopting the following new subrule:

16.4(6) Enclosed docks. Sides or roofs shall not enclose private docks on rivers or river impoundments.

ITEM 5. Amend subrule 16.5(13) as follows:

16.5(13) Permanent structures. All docks, piers, or wharves which cannot be removed or stored in an approved location shall be considered permanent structures and shall be subject to 571—Chapter 18 or 571—Chapter 13, Iowa Administrative Code, as appropriate, and other regulations covering permanent structures.

ITEM 6. Amend rule 571—16.5(461A) by adopting the following new subrule:

16.5(14) Enclosed hoists and slips. Hoists and slips may be enclosed by roofs and sides constructed of soft–sided natural fiber or synthetic fiber materials for the purpose of protecting watercraft.

ITEM 7. Amend rule 571—16.8(461A) by adopting the following new subrule:

16.8(10) Enclosed commercial docks. Commercial docks will be considered for enclosure by roofs and sides on an individual basis, and in doing so the department will take into consideration the natural features including the water area, the size of the applicant’s land area, degree of interference with navigation and other approved activities for the area, the public need for such service and public safety.

ITEM 8. Amend rule 571—16.9(461A) by adopting the following new subrule:

16.9(3) Commercial docks in dock management areas. Commercial docks in dock management areas are considered concession operations and shall be subject to 571—Chapter 14, Iowa Administrative Code. Commercial docks in dock management areas that are also under management of a political subdivision under Iowa Code chapter 28E may be subject to concession operations regulations of the political subdivision in lieu of 571—Chapter 14, Iowa Administrative Code.

ITEM 9. Amend rule 571—16.10(461A), catchwords, as follows:

ITEM 10. Rescind subrule 16.10(1) and adopt the following new subrule in lieu thereof:

16.10(1) Fees for commercial docks. The following annual fees shall apply to each commercial dock that provides slips for boats other than those owned by the applicant and is used to carry on commerce under riparian rights.

1. $2 per slip to accommodate boats up to 26 feet in length.

2. $4 per slip to accommodate boats over 26 feet in length.

ITEM 11. Rescind subrule 16.10(2) and adopt the following new subrule in lieu thereof:

16.10(2) Fees for enclosed commercial docks. The following annual fees shall apply to each commercial dock constructed with a roof or one or more sides enclosed, in addition to all other required fees.

1. $50 for docks up to 15 feet wide and not more than 20 feet long.

2. $75 for docks over 15 feet wide and not more than 20 feet wide and not more than 24 feet long.

3. $100 for docks over 20 feet wide and not more than 25 feet wide and not more than 28 feet long.

4. Proportionate to the above width and length fees for docks over 25 feet wide and over 28 feet long.

Pursuant to the authority of Iowa Code subsection 455A.5(6), the Natural Resource Commission hereby gives Notice of Intended Action to amend Chapter 51, “Game Management Areas,” Iowa Administrative Code.

These rules give the regulations for public use of state game management areas. This amendment adds the Iowa River Corridor in Benton, Iowa and Tama Counties, all areas in Franklin County, and eliminates the exceptions in Worth and Wright Counties.

Any interested person may make written suggestions or comments on the proposed amendment on or before April 10, 2002. Such written materials should be directed to Richard Bishop, Department of Natural Resources, Wallace State Office Building, Des Moines, Iowa 50319–0034; fax (515)281–6794. Persons who wish to convey their views orally should contact the Wildlife Bureau at (515)281–6156 or at the Bureau offices on the fourth floor of the Wallace State Office Building.

There will be a public hearing on April 10, 2002, at 10 a.m. in the Fourth Floor East Conference Room of the Wallace State Office Building at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the amendment.

Any persons who intend to attend the public hearing and have special requirements such as those relating to hearing or mobility impairments should contact the Department of Natural Resources and advise of specific needs.

This amendment is intended to implement Iowa Code sections 456A.24 and 481A.6.

The following amendment is proposed.

Amend rule 571—51.9(481A) as follows:

571—51.9(481A) Use of nontoxic shot on wildlife areas. It shall be unlawful to hunt any migratory game bird or resident game or furbearers, except deer and turkeys, or target shoot with a shotgun while having in one’s possession any shot other than nontoxic shot approved by the U.S. Fish and Wildlife Service on the following wildlife areas:

Pursuant to the authority of Iowa Code subsection 455A.5(6), the Natural Resource Commission hereby gives Notice of Intended Action to amend Chapter 91, “Waterfowl and Coot Hunting Seasons,” Iowa Administrative Code.

These rules give the regulations for hunting waterfowl and coot and include season dates, bag limits, possession limits, shooting hours, and areas open to hunting. Season dates are adjusted annually to comply with federal law and to ensure that seasons open on a weekend.

Any interested person may make written suggestions or comments on the proposed amendments on or before April 10, 2002. Such written materials should be directed to the Wildlife Bureau Chief, Department of Natural Resources, Wallace State Office Building, Des Moines, Iowa 50319–0034; fax (515)281–6794. Persons who wish to convey their views orally should contact the Wildlife Bureau at (515)281–6156 or at the Bureau offices on the fourth floor of the Wallace State Office Building.

There will be a public hearing April 10, 2002, at 10 a.m. in the Fourth Floor East Conference Room of the Wallace State Office Building at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the amendments.

These amendments are intended to implement Iowa Code sections 481A.38, 481A.39 and 481A.48.

The following amendments are proposed.

ITEM 1. Amend rule 571—91.1(481A), introductory paragraph, as follows:

571—91.1(481A) Ducks (split seasons). Open season for hunting ducks shall be September 22 21 to September 26, 2001 25, 2002; October 13 12 to December 6, 2001 5, 2002, in that portion of the state lying north of a line beginning on the Nebraska–Iowa border at State Highway 175, southeast to State Highway 37, east to U.S. Highway 59, south to I–80 and along I–80 east to the Iowa–Illinois border; and September 22 21 to September 26, 2001 25, 2002; October 13 12 to December 6, 2001 5, 2002, in that portion of the state lying south of a line beginning on the Nebraska–Iowa border at State Highway 175, southeast to State Highway 37, east to U.S. Highway 59, south to I–80 and along I–80 east to the Iowa–Illinois border. Shooting hours are one–half hour before sunrise to sunset each day. The season for canvasbacks will be open only from October 27, 2001 26, 2002, to November 15, 2001 14, 2002, in the north zone and November 17, 2001 16, 2002, to December 6, 2001 5, 2002, in the south zone.

ITEM 2. Amend rule 571—91.3(481A) as follows:

571—91.3(481A) Geese. The north goose hunting zone is that part of Iowa north of a line beginning on the Nebraska–Iowa border at State Highway 175, east to State Highway 37, southeast to U.S. Highway 59, south to I–80 and along I–80 to the Iowa–Illinois border. The south goose hunting zone is the remainder of the state. The open season for hunting Canada geese, white–fronted geese and brant, collectively referred to as dark geese, is September 29 28 to December 7, 2001 6, 2002, in the north goose hunting zone and September 29 28 to October 21 20 and November 10 9 to December 26, 2001 25, 2002, in the south goose hunting zone. The open season for hunting white and blue–phase snow geese and Ross’ geese, collectively referred to as light geese, is September 29, 2001 28, 2002, to January 13, 2002 12, 2003, statewide. Light geese may also be taken under the conservation order from the U.S. Fish and Wildlife Service from February 2, 2002 1, 2003, through April 15, 2002 2003. Shooting hours are one–half hour before sunrise to sunset, except that during the conservation order shooting hours will be extended to one–half hour after sunset each day.

91.3(1) Bag limit. Daily bag limit is 2 Canada geese, 2 white–fronted geese, 2 brant, and 20 light geese.

91.3(2) Possession limit. Possession limit is twice the daily bag limit and no possession limit on light geese.

ITEM 3. Amend subrule 91.4(2), paragraphs “h,” “k,” “m,” and “n,” as follows:

h. Area eight. A portion of Adams County bounded as follows: Beginning at the intersection of State Highway 148 and Adams County Road N53 in Corning; thence east and north along Adams County Road N53 approximately 9.5 miles to Adams County Road H24 (including the right–of–way); thence west along Adams County Road H24 (including the right–of–way) about 8 6 miles to Hickory Avenue; thence south along Elm Hickory Avenue (including the right–of–way) about 6 miles to Adams County Road H34; thence east along Adams County Road H34 (including the right–of–way) to State Highway 148; thence north along State Highway 148 about three–fourths mile to the point of beginning.

k. Area eleven. Starting at the junction of the navigation channel of the Mississippi River and the mouth of the Maquoketa River in Jackson County, proceeding southwesterly along the high–water line on the west side of the Maquoketa River to U.S. Highway 52, ; thence south along U.S. Highway 52 (including the right–of–way) to the intersection with County Road Z–40, ; thence south on County Road Z–40 (including the right–of–way) to the junction with U.S. Highway 64, ; thence east on U.S. Highway 64 to 550th Avenue; thence north along 550th Avenue (including the right–of–way) to U.S. Highway 52; thence southeast along U.S. Highway 52 (including the right–of–way) to 607th Avenue; thence east along 607th Avenue to the Sioux Line Railroad at Sabula, ; thence north and west along the Sioux Line Railroad to the east edge of section 27, township 85N, range 6 east, north to the intersection of sections 27 and 22, west along the common boundary of sections 27 and 22 and sections 28 and 21, township 85N, range 6 east, to the Green Island levee, ; thence northeast along a line following the Green Island levee to the center of the navigational channel of the Mississippi River, ; thence north along the center of the navigational channel to the point of beginning.

m. Area thirteen. Portions of Van Buren and Davis Counties bounded as follows: Beginning at the junction of Iowa State Highway 16 and Iowa State Highway 98 in Van Buren County; thence east and south along State Highway 16 (including the right–of–way) to Iowa State Highway 1 in Van Buren County; thence south along Iowa State Highway 1 (including the right–of–way) to County Road J40 State Highway 2; thence east along County Road J40 State Highway 2 (including the right–of–way) to Iowa Highway 2 in Van Buren County Road W20; thence south and east along Highway 2 County Road W20 (including the right–of–way) to Iowa Highway 81 in Van Buren County; thence south and west along Highway 81 (including the right–of–way) to the Iowa–Missouri border; thence west along the Iowa–Missouri border to Iowa State Highway 15 in Van Buren County; thence north along State Highway 15 (including the right–of–way) to Iowa State Highway 2 in Van Buren County; thence west along Iowa State Highway 2 (including the right–of–way) to County Road V42 in Davis County; thence north along County Road V42 (including the right–of–way) to County Road J40 in Davis County; thence east and south along County Road J40 (including the right–of–way) to County Road V64 in Van Buren County; thence north along County Road V64 (including the right–of–way) to Iowa State Highway 98 in Van Buren County; thence north along State Highway 98 (including the right–of–way) to the point of beginning.

n. Area fourteen. Portions of Bremer County bounded as follows: Beginning at the northeast corner of Section 4, township 93 north, range 11 west; thence south 16 miles, then east one–half mile, then south one mile along Bremer County Road V56; thence west 4 ½ miles along a county road right–of–way to Bremer County Road V49; thence north 4 miles along Bremer County Road V49 to Iowa Highway 3; thence west 2 miles along Iowa Highway 3 to Bremer County Road V43; thence north 4 miles along Bremer County Road V43 to Bremer County Road C33; thence west 4 miles along Bremer County Road C33 to U.S. Highway 63; thence north 9 miles along U.S. 63 to the Bremer–Chickasaw County line; thence east 10 miles along the Bremer–Chickasaw County line to the point of beginning. intersection of County Road V56 and 120th Street; thence south along County Road V56 (including the right–of–way) to State Highway 3; thence west along State Highway 3 (including the right–of–way) to County Road V43; thence north along County Road V43 (including the right–of–way) to County Road C33; thence west along County Road C33 (including the right–of–way) to U.S. Highway 63; thence north 9 miles along U.S. Highway 63 (including the right–of–way) to the Bremer–Chickasaw County line; thence east 5.5 miles along the Bremer–Chickasaw County line road (including the right–of–way) to Quantum Avenue; thence south along Quantum Avenue (including the right–of–way) to 120th Street; thence east along 120th Street (including the right–of–way) to the point of beginning.

ITEM 4. Amend rule 571—91.6(481A) as follows:

571—91.6(481A) Youth waterfowl hunt. A special youth waterfowl hunt will be held statewide on October 6 and 7, 2001 5 and 6, 2002. Youth hunters must be 15 years old or younger. Each youth hunter must be accompanied by an adult 18 years old or older. The youth hunter does not need to have a hunting license or stamps. The adult must have a valid hunting license and habitat stamp if normally required to have them to hunt and a state waterfowl stamp. Only the youth hunter may shoot ducks, and coots and Canada geese. The adult may hunt for any other game birds for which the season is open. The daily bag and possession limits are the same as for the regular waterfowl season, as defined in subrule 91.1(1), except the season for light geese will not be open. The possession limit is the same as the daily bag limit. All other hunting regulations in effect for the regular waterfowl season apply to the youth hunt.

Pursuant to the authority of Iowa Code section 455A.5, the Natural Resource Commission hereby gives Notice of Intended Action to amend Chapter 99, “Wild Turkey Fall Hunting by Residents,” Iowa Administrative Code.

These rules give the regulations for hunting wild turkeys by residents during the fall and include season dates, bag limits, possession limits, shooting hours, areas open to hunting, licensing procedures, means and method of take and procedures for obtaining licenses.

Any interested person may make written suggestions or comments on the proposed amendments prior to April 11, 2002. Such written materials should be directed to the Wildlife Bureau Chief, Department of Natural Resources, Wallace State Office Building, Des Moines, Iowa 50319–0034; fax (515)281–6794. Persons who wish to convey their views orally should contact the Wildlife Bureau at (515)281–6156 or at the Wildlife Bureau offices on the fourth floor of the Wallace State Office Building.

Also, there will be a public hearing on April 10, 2002, at 10 a.m. in the Fourth Floor East Conference Room of the Wallace State Office Building at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the amendments.

Any persons who intend to attend the public hearing and have special requirements such as those relating to hearing or mobility impairments should contact the Department of Natural Resources and advise of specific needs.

These amendments are intended to implement Iowa Code sections 481A.38, 481A.39, 481A.48 and 483A.7.

The following amendments are proposed.

ITEM 1. Rescind rule 571—99.9(481A) and adopt in lieu thereof the following new rule:

571—99.9(481A) Procedures to obtain licenses. All paid and free resident fall turkey hunting licenses must be obtained using the electronic licensing system for Iowa (ELSI). Licenses may be purchased from ELSI license agents or by calling the ELSI telephone ordering system.

99.9(1) Licenses with quotas. All paid turkey hunting licenses for which a quota is established may be obtained from ELSI agents on a first–come, first–served basis beginning the first Saturday in August until the quota fills or through the last day of the hunting period for which the license is valid or until December 14, whichever occurs first.

99.9(2) Licenses without quotas. All paid and free turkey hunting licenses that have no quota may be obtained from ELSI agents beginning the first Saturday in August through the last day of the hunting period for which a license is valid or until December 14, whichever occurs first.

99.9(3) Providing false information. If anyone provides false information when obtaining any fall turkey hunting license, that license and transportation tag and any other fall turkey hunting license and transportation tag obtained during the same year shall be invalid.

ITEM 2. Amend subrule 99.11(6) as follows:

99.11(6) Where free licenses are valid. Free licenses are valid only on that portion of the farm unit that is in a zone open to turkey hunting. “Farm unit” means all parcels of land that are operated as a unit for agricultural purposes and are under lawful control of the landowner or tenant. Individual parcels of land do not need to be adjacent to one another to be included in the farm unit. For purposes of obtaining a free turkey hunting license, all the land under the lawful control of a landowner and eligible family members or a tenant and eligible family members shall be considered as one farm unit, regardless of how that land is subdivided for agricultural or business purposes. “Agricultural purposes” includes but is not limited to field crops, livestock, horticultural crops (e.g., nurseries, orchards, truck farms, or Christmas tree plantations), and land managed for timber production.

Pursuant to the authority of Iowa Code subsection 455A.5(6), the Natural Resource Commission hereby gives Notice of Intended Action to amend Chapter 106, “Deer Hunting by Residents,” Iowa Administrative Code.

The rules in Chapter 106 give the regulations for hunting deer and include season dates, bag limits, possession limits, shooting hours, areas open to hunting, licensing procedures, means and methods of taking and transportation tag requirements.

Any interested person may make written suggestions or comments on the proposed amendments on or before April 18, 2002. Such written materials should be directed to the Wildlife Bureau Chief, Department of Natural Resources, Wallace State Office Building, Des Moines, Iowa 50319–0034; fax (515)281–6794. Persons who wish to convey their views orally should contact the Bureau at (515)281–6156 or at the Bureau offices on the fourth floor of the Wallace State Office Building.

There will be a public hearing on April 18, 2002, at 10 a.m. in the Fourth Floor East Conference Room of the Wallace State Office Building at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the amendments.

Any persons who intend to attend the public hearing and have special requirements such as hearing or mobility impairments should contact the Department of Natural Resources and advise of specific needs.

These amendments are intended to implement Iowa Code sections 481A.38, 481A.39 and 481A.48.

The following amendments are proposed.

ITEM 1. Amend subrule 106.1(5) as follows:

106.1(5) Free licenses for landowners and tenants. Free licenses for eligible landowners and tenants shall be available for the youth/disabled hunter season, early and or late muzzleloader seasons season, or first and second regular gun seasons. These licenses shall be valid for hunting any deer in the season(s) designated on the license and only on the farm unit of the landowner/tenant. For purposes of obtaining a free deer hunting license, all the land under the lawful control of a landowner and eligible family members or a tenant and eligible family members shall be considered as one farm unit, regardless of how that land is subdivided for agricultural or business purposes. A second free license valid for taking only antlerless deer in the special late season may be issued to landowners and tenants who have a portion of their farm unit in a county open during that season. The second free license shall be valid only in that portion of the farm unit located in a county open during the special late season. Landowners and tenants or their eligible family members that receive a free any deer license may also purchase upto two antlerless–only deer licenses for $10 each. Theseantlerless–only licenses shall also be valid only on the farm unit.

ITEM 2. Amend subrule 106.5(2), paragraph “b,” as follows:

b. Paid antlerless deer licenses for the special late season shall be valid only for antlerless deer and only in the following counties: Adair, Appanoose, Clarke, Davis, Decatur, Wayne, Van Buren, Ringgold, Taylor, Adams, Union, Fremont, Page and Montgomery. An antlerless deer is defined as a deer without a visible antler or with no antler longer than 7 inches.

ITEM 3. Amend subrule 106.6(3), paragraph “a,” as follows:

a. Early muzzleloader season. No more than 7,500 paid statewide licenses will be sold. Fifty additional licenses will be issued through and will be valid only for the Iowa Army Ammunition Plant. No one may purchase more than one paid license for the early muzzleloader season. A hunter obtaining a paid early muzzleloader season license shall not be eligible to purchase any other statewide gun season license or antlerless–only licenses for the second gun or late muzzleloader season but may purchase the following additional licenses: a statewide bow license; up to two antlerless bow licenses; and up to two antlerless licenses for the special late season.

ITEM 4. Amend subrule 106.7(3) as follows:

106.7(3) Muzzleloader seasons. Only muzzleloading rifles will be permitted for taking deer during the early muz–zleloader season. During the late muzzleloader season, deer may be taken with a muzzleloader, handgun or bow. Muzzleloading rifles are defined as flintlock or percussion cap lock muzzleloaded rifles and muskets of not less than .44 and not larger than .775 caliber, shooting single projectiles only. Centerfire handguns must be .357 caliber or larger shooting straight–walled cartridges propelling an expanding–type bullet (no full–metal jacket) and complying with all other requirements provided in Iowa Code section 481A.48. Legal handgun calibers are listed on the department of natural resources list of “acceptable handgun calibers for hunting deer in Iowa.” Revolvers, pistols and black powder handguns must have a 4–inch minimum barrel length. There can be no shoulder stock or long–barrel modifications to handguns. Black powder handguns must be .44 caliber or larger, shooting single projectiles only.

ITEM 5. Rescind rule 571—106.8(481A) and adopt the following new rule in lieu thereof:

571—106.8(481A) Procedures to obtain licenses. All paid and free resident deer hunting licenses must be obtained using the electronic licensing system for Iowa (ELSI). Licenses may be purchased from ELSI license agents or by calling the ELSI telephone ordering system.

106.8(1) Licenses with quotas. All paid deer hunting licenses for which a quota is established may be obtained from ELSI agents on a first–come, first–served basis beginning the first Saturday in August until the quota fills, or through the last day of the hunting period for which the license is valid, or until December 14, whichever occurs first.

106.8(2) Licenses without quotas. All paid and free deer hunting licenses that have no quota may be obtained from ELSI agents beginning the first Saturday in August through the last day of the hunting period for which a license is valid or until December 14, whichever occurs first.

106.8(3) Providing false information. If anyone provides false information when obtaining any deer hunting license, that license and transportation tag and any other deer hunting license and transportation tag obtained during the same year shall be invalid.

ITEM 6. Amend subrule 106.10(1), paragraph “a,” as follows:

a. Youth deer hunt. A special youth deer license may be issued to any Iowa resident who is at least 12 years old but not over 15 years old on September 1. The youth license may be paid or free to persons eligible for free licenses. If the youth obtains a free landowner/tenant license, it will count as the one free license for which the youth’s family is eligible. The youth must possess a valid hunter safety certificate to obtain a license.

Each participating youth must be accompanied by an adult who possesses a regular hunting license and has paid the habitat fee (if the adult is normally required to have a hunting license and to pay the habitat fee to hunt). Only one adult may participate for each youth hunter. The accompanying adult must not possess a firearm or bow and must be in direct company of the youth at all times. A person may obtain only one youth deer license but may also obtain one of the following additional licenses: one statewide bow or statewide gun license; up to two antlerless licenses for the bow, second regular gun or late muzzleloader season; and up to two antlerless licenses for the special late season.

ITEM 7. Amend subrules 106.11(4) and 106.11(5) as follows:

106.11(4) Depredation permits. Three types of permits may be issued under a depredation management plan.

a. Deer depredation licenses. Deer depredation licenses may be sold to resident hunters only for the regular deer license fee for use during one or more legal hunting seasons. Depredation licenses will be available to producers of agricultural and horticultural crops.

(1) Depredation licenses will be issued in blocks of five licenses up to the number specified in the management plan.

(2) Depredation licenses may be sold to individuals designated by the producer as having permission to hunt. No individual may obtain more than two depredation licenses per management plan. Licenses will be sold by designated department field employees.

(3) A depredation license issued to the producer or producer’s family member may be the one free license for which the producer producer’s family is eligible annually.

(4) Depredation licenses will be valid only for huntingantlerless deer, unless otherwise specified in the management plan, regardless of restrictions that may be imposed on regular deer hunting licenses in that county.

(5) Hunters may keep any deer legally tagged with a depredation license.

(6) All other regulations for the hunting season specified on the license will apply.

b. Deer shooting permits. Permits for shooting deer outside an established hunting season may be issued to producers of high–value horticultural crops when damage cannot be controlled in a timely manner during the hunting seasons (such as late summer buck rubs in an orchard and winter browsing in a Christmas tree plantation) and to other agricultural producers and on areas such as airports where public safety may be an issue.

(1) Deer shooting permits will be issued at no cost to the applicant.

(2) The applicant or one or more designees approved by the department may take all the deer specified on the permit.

(3) Permits available to producers of high–value horticultural crops will allow taking deer from August 1 through March 31. Permits issued for August 1 through August 31 shall be valid only for taking antlered deer. Permits issued for September 1 through March 31 may be valid for taking any deer, antlerless deer or antlered deer, depending on the nature of the damage. Permits available to other agricultural producers will allow taking deer from September 1 through October 31.

(4) Permits issued due to public safety concerns may be used for taking any deer, as necessary, to address unpredictable intrusion which could jeopardize public safety. Permits may be issued for an entire year (January 1 through December 31) if the facility involved maintains a deerproof fence. Disposal of deer killed under these permits shall be coordinated with the local conservation officer.

(5) The times, dates, place and other restrictions on the shooting of deer will be specified on the permit.

(6) Antlers from all deer recovered must be turned over to the conservation officer to be disposed of according to department rules.

(7) Shooters must wear blaze orange and comply with all other applicable laws and regulations pertaining to shooting and hunting.

c. Agricultural depredation shooting permits. Agricultural depredation shooting permits will be issued to a landowner or designated tenant who is a resident of Iowa who has sustained at least $1,000 of damage to agricultural crops if the resident is cooperating with the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) to reduce crop damage by deer or has an approved DNR deer depredation plan.

(1) Agricultural depredation shooting permits will be issued to the resident landowner or designated tenant at no cost and shall be valid only on the farm unit where the damage is occurring.

(2) Permits issued to the resident landowner or designated tenant shall allow the taking of antlerless deer from September 1 through November 30. The number of permits issued to individual landowners or tenants will be determined by a department depredation biologist and will be part of the deer depredation management plan.

(3) Deer taken on these permits must be taken by the resident landowner or the designated tenant only.

(4) Times, places, and other restrictions will be specified on the permit.

(5) Shooters must wear blaze orange and comply with all other applicable laws and regulations.

e. Depredation licenses, agricultural depredation shooting permits and shooting permits will be issued in addition to any other licenses for which the hunters may be eligible.

f. Depredation licenses, agricultural depredation shooting permits and shooting permits will not be issued if the producer restricts the legal take of deer from the property sustaining damage by limiting hunter numbers below levels required to control the deer herd.

106.11(5) Disposal. It shall be the producer’s responsibility for shooting permits, excluding those issued for public safety, and for agricultural depredation shooting permits to see that all deer are field dressed, tagged with a DNR salvage tag, and removed immediately from the field. Dead deer must be handled for consumption, and the producer must coordinate through the local conservation officer the disposal of deer offered to the public. Charitable organizations will have the first opportunity to take deer offered to the public. No producer shall keep more than two deer taken under special depredation permits. By express permission from a DNR enforcement officer, the landowner may dispose of deer carcasses through a livestock sanitation facility.

Pursuant to the authority of Iowa Code section 97B.15, the Department of Personnel hereby gives Notice of Intended Action to amend Chapter 17, “Public Records and Fair Information Practices”; Chapter 21, “Iowa Public Employees’ Retirement System”; Chapter 31, “Department Procedure for Rule Making”; and Chapter 33, “Uniform Rules for Waivers,” Iowa Administrative Code.

The amendments are intended to change IPERS’ contact address; to define covered employers for patient advocates apprenticed under Iowa Code section 229.19; to allow public K–12 school contract employees who retire after completing their contract obligation to receive trailing wages for the remainder of a school year without interfering with their first month of entitlement (FME); to bring the rules into compliance with the Iowa Code regarding the fee that IPERS may charge for processing withheld funds; to define allowable alternate payee dividends; and to provide for the method for supplying information concerning successor alternate payees to IPERS. These amendments propose to adopt, in the form of a new rule, a procedure for cases involving chronic loss of benefits payment warrants.

New rule 581—21.34(97B) may be subject to requests for waivers; the other amendments will not be subject to requests for waivers. The proposed amendments to subrule 21.18(2) and to subparagraph 21.29(2)“c”(2) confer benefits; the remaining amendments are required by statute.

Any interested person may make written suggestions or comments on the proposed amendments on or before March 26, 2002. Such written suggestions or comments shouldbe directed to the IPERS Administrative Rules Coordinator, IPERS, 7401 Register Drive, P.O. Box 9117, Des Moines, Iowa 50306–9117. Persons who wish to present their comments orally may contact the IPERS Administrative Rules Coordinator at (515)281–0089, or (800)622–3849, ext. 10089. Comments may also be submitted by fax to (515) 281–0045, or by E–mail to www.ipers.info.

There will be a public hearing on March 26, 2002, at 9 a.m. at IPERS, 7401 Register Drive, Des Moines, Iowa, at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject matter of the proposed amendments.

These amendments are intended to implement Iowa Code chapter 97B.

These amendments were also Adopted and Filed Emergency and are published herein as ARC 1410B. The content of that submission is incorporated here by reference.

Pursuant to the authority of Iowa Code section 147.76, the Board of Cosmetology Arts and Sciences Examiners hereby gives Notice of Intended Action to adopt a new Chapter 59, “Administrative and Regulatory Authority for the Board of Cosmetology Arts and Sciences Examiners,” Iowa Administrative Code.

The proposed amendment adopts new rules concerning the purpose of the Board, organization and proceedings of the Board, official communication, office hours, and public meetings.

Any interested person may make written comments on the proposed amendment no later than March 28, 2002, addressed to Ella Mae Baird, Professional Licensure Division, Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319–0075.

The Division revised these rules in accordance with Executive Order Number 8. Division staff and Board members had input on these rules. Decisions were made based on need, clarity, intent and statutory authority, cost and fairness.

A public hearing will be held on March 28, 2002, from 9 to 11 a.m. in the Fifth Floor Board Conference Room, Lucas State Office Building, at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the proposed amendment.

This amendment is intended to implement Iowa Code section 147.76 and chapters 17A, 157 and 272C.

The following new chapter is proposed.

CHAPTER 59
ADMINISTRATIVE AND REGULATORY AUTHORITY
FOR THE BOARD OF COSMETOLOGY ARTS AND
SCIENCES EXAMINERS

“Board” means the board of cosmetology arts and sciences examiners.

“Board office” means the office of the administrative staff.

“Department” means the department of public health.

“Disciplinary proceeding” means any proceeding under the authority of the board pursuant to which licensee discipline may be imposed.

“License” means a license to practice cosmetology.

“Licensee” means a person licensed to practice cosmetology.

645—59.2(17A) Purpose of board. The purpose of the board is to administer and enforce the provisions of Iowa Code chapters 17A, 147, 157 and 272C with regard to the practice of cosmetology arts and sciences. The mission of the board is to protect the public health, safety and welfare by licensing qualified individuals who provide services to consumers and by fair and consistent enforcement of the statutes and regulations of the licensure board. Responsibilities include, but are not limited to:

59.2(1) Licensing of qualified applicants to practice cosmetology, by examination, renewal, endorsement, and reciprocity.

59.2(2) Developing and administering a program of continuing education to ensure the continued competency of individuals licensed by the board.

59.2(3) Imposing discipline on licensees as provided by statute or rule.

59.3(1) The board is composed of seven members appointed by the governor and confirmed by the senate.

59.3(2) The members of the board shall include three who are licensed cosmetologists, one who is a licensed electrologist, esthetician, or nail technologist, one who is a licensed instructor of cosmetology arts and sciences at a public or private school and who does not own a school of cosmetology arts and sciences, and two who are not licensed in a practice of cosmetology arts and sciences and who shall represent the public.

59.3(3) The board shall elect a chairperson, vice chairperson, and secretary from its membership at the first meeting after April 30 of each year.

59.3(4) The board shall hold at least four meetings annually.

59.3(5) A majority of the members of the board shall constitute a quorum.

59.3(6) Board meetings shall be governed in accordance with Iowa Code chapter 21, and the board’s proceedings shall be conducted in accordance with Robert’s Rules of Order, Revised.

59.3(7) The division of professional licensure shall furnish the board with the necessary facilities and employees to perform the duties required by this chapter, but shall be reimbursed for all costs incurred from funds appropriated to the board.

59.3(8) The board has the authority to:

a. Develop and implement a program of continuing education to ensure the continued competency of individuals licensed by the board.

b. Establish fees.

c. Establish committees of the board, the members of which shall be appointed by the board chairperson and shall not constitute a quorum of the board. The board chairperson shall appoint committee chairpersons.

d. Hold a closed session if the board votes to do so in a public roll call vote with an affirmative vote of at least two–thirds if the total board is present or a unanimous vote if fewer are present. The board will recognize the appropriate statute allowing for a closed session when voting to go into closed session. The board shall keep minutes of all discussion, persons present, and action occurring at a closed session and shall tape–record the proceedings. The records shall be stored securely in the board office and shall not be made available for public inspection.

e. Investigate alleged violations of statutes or rules that relate to the practice of cosmetology upon receipt of a complaint or upon the board’s own initiation. The investigation will be based on information or evidence received by the board.

f. Initiate and impose licensee discipline.

g. Monitor licenses that are restricted by a board order.

59.4(1) All official communications, including submissions and requests, may be addressed to the Board of Cosmetology Arts and Sciences Examiners, Professional Licensure Division, Fifth Floor, Lucas State Office Building, Des Moines, Iowa 50319–0075.

59.4(2) Notice of address. Each licensee shall notify the board in writing of a change of the licensee’s current mailing address within 30 days after the change of address occurs.

645—59.5(17A) Office hours. The board office is open for public business from 8 a.m. to 4:30 p.m., Monday to Friday of each week, except holidays.

645—59.6(17A) Public meetings. Members of the public may be present during board meetings unless the boardvotes to hold a closed session. Dates and location of board meetings may be obtained from the board’s Web site (http://www.idph.state.ia.us/licensure) or directly from the board office.

59.6(1) At every regularly scheduled board meeting, time will be designated for public comment. During the public comment period, any person may speak for up to two minutes. Requests to speak for two minutes per person later in the meeting when a particular topic comes before the board should be made at the time of the public comment period and will be granted at the discretion of the chairperson. No more than ten minutes will be allotted for public comment at any one time unless the chairperson indicates otherwise.

59.6(2) Persons who have not asked to address the board during the public comment period may raise their hands to be recognized by the chairperson. Acknowledgment and an opportunity to speak will be at the discretion of the chairperson.

These rules are intended to implement Iowa Code chapters 17A, 147, and 157.

Pursuant to the authority of Iowa Code section 147.76, the Board of Examiners for Licensing and Regulation of Hearing Aid Dispensers hereby gives Notice of Intended Action to rescind Chapter 120, “Board of Examiners for the Licensing and Regulation of Hearing Aid Dealers,” and adopt new Chapter 120, “Administrative and Regulatory Authority for the Board of Examiners for the Licensing and Regulation of Hearing Aid Dispensers”; renumber Chapter 121, “Continuing Education for Hearing Aid Dealers,” as Chapter 122, adopt new Chapter 121, “Licensure of Hearing Aid Dispensers,” and amend renumbered Chapter 122; adopt new Chapter 124, “Discipline for Hearing Aid Dispensers,” and new Chapter 125, “Fees,” Iowa Administrative Code.

The proposed amendments rescind the current licensure rules and fees and adopt new chapters for the administrative and regulatory authority of the Board and for licensure, discipline and fees, and renumber and amend the continuing education chapter.

Any interested person may make written comments on the proposed amendments no later than March 26, 2002, addressed to Ella Mae Baird, Professional Licensure Division, Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319–0075.

The Division revised these rules according to Executive Order Number 8. The Division sent letters to the public for comment and four letters were received in return. Division staff also had input on these rules. The comments received were discussed by the Board and decisions were based on need, clarity, intent and statutory authority, cost and fairness.

A public hearing will be held on March 26, 2002, from 1 to 3 p.m. in the Fifth Floor Board Conference Room, Lucas State Office Building, at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the proposed amendments.

These amendments are intended to implement Iowa Code section 147.76 and chapters 17A, 154A and 272C.

The following amendments are proposed.

ITEM 1. Rescind 645—Chapter 120 and adopt the following new chapter in lieu thereof:

CHAPTER 120
ADMINISTRATIVE AND REGULATORY AUTHORITY FOR THE BOARD OF EXAMINERS
FOR THE LICENSING AND REGULATION OF HEARING AID DISPENSERS

“Board” means the board of examiners for the licensing and regulation of hearing aid dispensers.

“Board office” means the office of the administrative staff.

“Department” means the department of public health.

“Disciplinary proceeding” means any proceeding under the authority of the board pursuant to which licensee discipline may be imposed.

“License” means a license issued by the state to hearing aid dispensers.

“Licensee” means a person licensed to practice as a hearing aid dispenser in the state of Iowa.

645—120.2(17A,154A) Purpose of board. The purpose of the board is to administer and enforce the provisions of Iowa Code chapters 17A, 147, 154A and 272C with regard to the practice of fitting, dispensing and the sale of hearing aids and providing hearing aid services or maintenance. The mission of the board is to protect the public health, safety and welfare by licensing qualified individuals who provide services to consumers and by fair and consistent enforcement of the statutes and the rules of the licensure board. Responsibilities include, but are not limited to:

120.2(1) Licensing of qualified applicants as hearing aid dispensers through examination, renewal, endorsement, and reciprocity.

120.2(2) Developing and administering a program of continuing education to ensure continued competency of individuals licensed by the board.

120.2(3) Imposing discipline on licensees as provided by statute or rule.

120.3(1) The board is composed of five members appointed by the governor and confirmed by the senate.

120.3(2) The members of the board shall include three licensed hearing aid dispensers and two members who are not licensed hearing aid dispensers who shall represent the general public. Hearing aid dispensers appointed to the board shall:

a. Be actively employed as hearing aid dispensers for five years preceding the appointment; and

b. Have practiced in Iowa during the two years preceding the appointment.

120.3(3) The board shall elect a chairperson, vice chairperson and a secretary from its membership at the first meeting after April 30 of each year.

120.3(4) The board shall hold at least one meeting annually.

120.3(5) A majority of the members of the board shall constitute a quorum.

120.3(6) Board meetings shall be governed in accordance with Iowa Code chapter 21, and the board’s proceedings shall be conducted in accordance with Robert’s Rules of Order, Revised.

120.3(7) The division of professional licensure shall furnish the board with the necessary facilities and employees to perform the duties required by this chapter, but shall be reimbursed for all costs incurred from funds appropriated to the board.

120.3(8) The board has the authority to:

a. Develop and implement a program of continuing education to ensure continued competency of individuals licensed by the board.

b. Establish fees.

c. Establish committees of the board, the members of which shall be appointed by the board chairperson and shall not constitute a quorum of the board. The board chairperson shall appoint committee chairpersons.

d. Hold a closed session if the board votes to do so in a public roll call vote with an affirmative vote of at least two–thirds if the total board is present or a unanimous vote if less are present. The board will recognize the appropriate statute allowing for a closed session when voting to go into closed session. The board shall keep minutes of all discussion, persons present, and action occurring at a closed session and shall tape–record the proceedings. The records shall be stored securely in the board office and shall not be made available for public inspection.

e. Investigate alleged violations of statutes or rules that relate to the practice of fitting, dispensing and the sale of hearing aids and providing hearing aid services or maintenance upon receipt of a complaint or upon the board’s own initiation. The investigation will be based on information or evidence received by the board.

f. Initiate and impose licensee discipline.

g. Monitor licenses that are restricted by a board order.

120.4(1) All official communications, including submissions and requests, may be addressed to the Board of Hearing Aid Dispensers, Professional Licensure Division, Fifth Floor, Lucas State Office Building, Des Moines, Iowa 50319–0075.

120.4(2) Notice of address. Each licensee shall notify the board in writing of a change of the licensee’s current mailing address within 30 days after the change of address occurs.

645—120.5(154A) Office hours. The board office is open for public business from 8 a.m. to 4:30 p.m., Monday to Friday of each week, except holidays.

645—120.6(17A) Public meetings. Members of the public may be present during board meetings unless the boardvotes to hold a closed session. Dates and location of board meetings may be obtained from the board’s Web site (http://www.idph.state.ia.us/licensure) or directly from the board office.

120.6(1) At every regularly scheduled board meeting, time will be designated for public comment. During the public comment period, any person may speak for up to two minutes. Requests to speak for two minutes per person later in the meeting when a particular topic comes before the board should be made at the time of the public comment period and will be granted at the discretion of the chairperson. No more than ten minutes will be allotted for public comment at any one time unless the chairperson indicates otherwise.

120.6(2) Persons who have not asked to address the board during the public comment period may raise their hands to be recognized by the chairperson. Acknowledgment and an opportunity to speak will be at the discretion of the chairperson.

These rules are intended to implement Iowa Code chapters 17A, 147, 154A, and 272C.

ITEM 2. Renumber 645—Chapter 121 as 645—Chapter 122 and adopt the following new Chapter 121:

CHAPTER 121
LICENSURE OF HEARING AID DISPENSERS

645—121.1(154A) Definitions. For purposes of these rules, the following definitions shall apply:

“Board” means the board of examiners for the licensing and regulation of hearing aid dispensers.

“Department” means the department of public health.

“Dispense” or “sell” means a transfer of title or of the right to use by lease, bailment, or any other means, but excludes a wholesale transaction with a distributor or dispenser, and excludes the temporary, charitable loan or educational loan of a hearing aid without remuneration.

“Hearing aid dispenser” means any person engaged in the fitting, dispensing and the sale of hearing aids and providing hearing aid services or maintenance by means of procedures stipulated by Iowa Code chapter 154A or the board.

“Lapsed license” means a license that a person has failed to renew as required or the license of a person who failed to meet stated obligations for renewal within a stated time.

“License” means a license issued by the state to hearing aid dispensers.

“Licensee” means any person licensed to practice as a hearing aid dispenser in the state of Iowa.

“National examination” means the written licensing examination of the International Hearing Society or its successor organization.

“Reciprocal license” means the issuance of an Iowa license to practice as a hearing aid dispenser to an applicant who is currently licensed in another state that has a mutual agreement with the Iowa board of examiners for licensing and regulation of hearing aid dispensers to license persons who have the same or similar qualifications to those required in Iowa.

“Temporary permit” means a permit issued while the applicant is in training to become a licensed hearing aid dispenser.

“Trainee” means the holder of a temporary permit.

121.2(1) An applicant shall send a completed application and fee to the board office. The application must be accompanied by a statement from the employer, which includes the following information:

a. The type of supervision which shall be provided to the trainee;

b. A list of the subjects to be covered;

c. The books and other training materials to be used for training; and

d. An outline of the training program to be followed in preparing the trainee for examination.

121.2(2) A temporary permit is valid for one year and shall not be renewable.

121.2(3) The board reserves the right to deny an application for a temporary permit or rescind a temporary permit once issued.

121.2(4) The licensed hearing aid dispenser employing the holder of a temporary permit shall be responsible for the following:

a. Training of the temporary permit holder;

b. Evaluating the audiograms and determining which hearing aid and ear mold will best compensate for hearing loss of a particular person; and

c. Notifying the board of examiners for the licensing and regulation of hearing aid dispensers within 15 days of the termination of the holder of a temporary permit.

121.3(1) Supervision of temporary permit holders. The supervisor(s) shall:

a. Have a current hearing aid dispenser license that has been valid for the immediately preceding 24 months;

b. Have two years of actual experience in testing, fitting, and dispensing of hearing aids;

c. Supervise not more than three trainees with temporary permits at the same time;

d. For the first 90 days, provide a minimum of 20 hours of direct supervision per week in the physical presence of the trainee;

e. Provide direct supervision of the trainee before completion of the first 90 days for any client activity that would require dispensing of hearing aids, including evaluation, selection, fitting or selling of hearing aids; and

f. Cosign all audiometric evaluations and contracts processed by the trainee for the duration of the temporary permit.

121.3(2) A trainee with a temporary permit must notify the board in writing within ten days of an interruption of training due to loss of supervision. The trainee shall obtain a replacement supervisor for continuance of the training period and shall obtain and submit to the board a statement signed by the replacement supervisor, which states that the training program will be maintained.

121.3(3) If a statement by the replacement supervisor is not submitted, the trainee shall revert to new trainee status.

645—121.4(154A) Requirements for initial licensure. The following criteria shall apply to licensure:

121.4(1) The applicant shall complete a board–approved application packet. Application forms may be obtained from the board’s Web site (http://www.idph.state.ia.us/licensure) or directly from the board office. All applications shall be sent to Board of Hearing Aid Dispensers, Bureau of Professional Licensure, Fifth Floor, Lucas State Office Building, Des Moines, Iowa 50319–0075.

121.4(2) The applicant shall complete the application form according to the instructions contained in the application. If the application is not completed according to the instructions, the application will not be reviewed by the board.

121.4(3) Each application shall be accompanied by the appropriate fees, which include the following:

a. Application fee payable to the Board of Hearing Aid Dispensers; and

b. Examination fee payable to the International Hearing Society.

121.4(4) Exam score results must be received from the testing service.

121.4(5) Each applicant must successfully pass the national examination within the 12 months immediately prior to submission of the application.

121.4(6) Licensees who were issued their licenses within six months prior to the renewal date shall not be required to renew their licenses until the renewal month two years later.

121.4(7) Incomplete applications that have been on file in the board office for more than two years shall be:

a. Considered invalid and shall be destroyed; or

b. Maintained upon written request of the candidate. The candidate is responsible for requesting the file to be maintained.

121.4(8) Notification of eligibility for licensure shall be sent to the licensee by the board.

121.5(1) The following criteria shall apply to the written examination:

a. The supporting data and documentation must be received at least ten business days prior to the examination with check or money order made payable to the International Hearing Society in the amount specified in the application for the examination fee;

b. Applicants must pass the national examination with a minimum score of 75 percent. The passing score is set by the International Hearing Society.

121.5(2) Applicants who fail the national examination three times must apply to the board to retake the examination.

645—121.6(154A) Licensure by endorsement. An applicant who has been a licensed hearing aid dispenser under the laws of another jurisdiction shall file an application for licensure by endorsement with the board office. The board may receive by endorsement any applicant from the District of Columbia or another state, territory, province or foreign country who:

121.6(1) Submits to the board a completed application;

121.6(2) Pays the licensure fee;

121.6(3) Shows evidence of licensure requirements that are similar to those required in Iowa;

121.6(4) Provides verification of license(s) from every state in which the applicant has been licensed, sent directly from the state(s) to the board office;

121.6(5) Provides official verification of one of the following:

a. A passing score on the national examination. For the ten–part examination, the passing score is 70 percent on each subject or 75 percent overall. The International Hearing Society sets the passing score for the five–part competency examination;

b. A passing score on an examination that the board determines is equivalent to the national examination; or

c. Current certification from the National Board for Certification in Hearing Instrument Sciences; and

121.6(6) Provide copies of attendance certificates from continuing education activities completed during the 24 months immediately prior to endorsement or proof of current certification from the National Board for Certification in Hearing Instrument Sciences.

645—121.7(154A) Licensure by reciprocal agreement. The board may enter into a reciprocal agreement with the District of Columbia or any state, territory, province or foreign country with equal or similar requirements for licensure of hearing aid dispensers.

645—121.8(154A) Display of license. Persons licensed as hearing aid dispensers shall display their original licenses in a conspicuous public place at the primary site of practice.

121.9(1) The biennial license renewal period for a license to dispense hearing aids shall begin on January 1 of each odd–numbered year and end on December 31 of the next even–numbered year. All licensees shall renew on a biennial basis.

121.9(2) A renewal of license application and continuing education report form shall be mailed to the licensee at least 60 days prior to the expiration of the license. Failure to receive the renewal application shall not relieve the license holder of the obligation to pay the biennial renewal fee on or before the renewal date.

a. The licensee shall submit the completed application and continuing education report form with the renewal fee to the board office before the license expiration date.

b. An individual who was issued an initial license within six months of the license renewal date will not be required to renew the license until the next renewal month two years later.

c. An individual who was licensed for the first time shall not be required to complete continuing education as a prerequisite for the first renewal of the license.

d. Persons licensed to practice as hearing aid dispensers shall keep their renewal licenses displayed in a conspicuous public place at the primary site of practice.

121.9(3) Late renewal. If the renewal fee(s), continuing education report and renewal application are received within 30 days after the license renewal expiration date, the late fee for failure to renew before expiration is charged.

121.9(4) When all requirements for license renewal are met, the licensee shall be sent a license renewal card by regular mail.

121.10(1) A licensee who is not engaged in practice in the state of Iowa may be granted a waiver of compliance and obtain a certificate of exemption upon written application to the board. The application shall contain a statement that the applicant will not engage in the practice in the state of Iowa without first complying with all rules governing reinstatement after exemption. The application for a certificate of exemption shall be submitted within 30 days after thelicense expiration date upon the form provided by the board. A licensee must hold a current license to apply for exempt status. The licensee shall apply for inactive status prior to the license expiration date.

121.10(2) Reinstatement of exempted, inactive practitioners. Inactive practitioners who have requested and been granted a waiver of compliance with the renewal requirements and who have obtained a certificate of exemption shall, prior to engaging in the practice of the profession in Iowa, satisfy the requirements for reinstatement as outlined in 645—122.10(272C).

121.10(3) Licensees shall renew at the next scheduled renewal. Licensees whose licenses were reinstated within six months prior to the renewal shall not be required to renew their licenses until the renewal date two years later.

121.10(4) Reinstatement of inactive license after exemption. The following chart illustrates the requirements for reinstatement based on the length of time a license has been inactive.

121.11(1) If the renewal fee(s) and continuing education report are received more than 30 days after the license expiration date, the license is lapsed. An application for reinstatement must be filed with the board accompanied by the reinstatement fee, the renewal fee(s) for each biennium the license is lapsed and the late fee for failure to renew before expiration. The licensee may be subject to an audit of the licensee’s continuing education report.

121.11(2) Licensees who have not fulfilled the requirements for license renewal or for an exemption in the required time frame will have a lapsed license and shall not practice as hearing aid dispensers. Practicing without a license may be cause for disciplinary action.

121.11(3) To reinstate a lapsed license, licensees shall comply with all requirements for reinstatement as outlined in 645—122.6(272C).

121.11(4) After the reinstatement of a lapsed license, the licensee shall renew at the next scheduled renewal cycle.

121.11(5) Reinstatement of a lapsed license. The following chart illustrates the requirements for reinstatement based on the length of time a license has lapsed.

121.12(1) An applicant who has been denied licensure by the board may appeal the denial and request a hearing on the issues related to the licensure denial by serving a notice of appeal and request for hearing upon the board not more than 30 days following the date of mailing of the notification of licensure denial to the applicant. The request for hearing as outlined in these rules shall specifically describe the facts to be contested and determined at the hearing.

121.12(2) If an applicant who has been denied licensure by the board appeals the licensure denial and requests a hearing pursuant to this rule, the hearing and subsequent procedures shall be held pursuant to the process outlined in Iowa Code chapters 17A and 272C.

These rules are intended to implement Iowa Code chapters 17A, 147, 154A, and 272C.

ITEM 3. Amend renumbered 645—Chapter 122 by changing “dealer” to “dispenser,” “dealers” to “dispensers” and “dealer’s” to “dispenser’s” wherever they appear.

ITEM 4. Amend renumbered rule 645—122.6(154A) by rescinding paragraphs “3,” “5” and “6” and adopting the following new paragraphs in lieu thereof:

3. Pays the late fee;

5. Provides verification of license(s) from each state in which the licensee has practiced since the Iowa license lapsed; and

6. Provides evidence of one of the following:

• Satisfactory completion of Iowa continuing education requirements taken within the two bienniums immediately prior to the date of application for reinstatement. The total number of continuing education hours required for license reinstatement is computed by multiplying 32 by the number of bienniums since the license lapsed to a maximum requirement of 96 hours;

• Current full–time practice in another state of the United States or the District of Columbia and completion of continuing education substantially equivalent in the opinion of the board to that required under these rules; or

• Successfully passing the national written examination conducted within one year immediately prior to the submission of the application for reinstatement.

ITEM 5. Amend renumbered rule 645—122.9(154A, 272C) as follows:

645—122.9(154A,272C) Continuing education waiver exemption for disability or illness. The board may, in individual cases involving disability or illness, grant waivers exemptions of the minimum continuing education requirements or extension of time within which to fulfill the same or make the required reports. No waiver exemption or extension of time shall be granted unless written application therefor is made on forms provided by the board and signed by the licensee and appropriate licensed health care practitioners. The board may grant a waiver an exemption of the minimum educational continuing education requirements for any period of time not to exceed one calendar year from the onset of disability or illness. In the event that the disability or illness upon which a waiver an exemption has been granted continues beyond the period of waiver exemption, the licensee must reapply for an extension of the waiver exemption. The board may, as a condition of any waiver exemption granted, require the applicant to make up a certain portion or all of the minimum educational continuing education requirements waived exempted by such methods as may be prescribed by the board.

ITEM 6. Rescind renumbered rule 645—122.10(154A, 272C) and adopt the following new rule in lieu thereof:

645—122.10(154A,272C) Reinstatement of inactive practitioners. Inactive practitioners who have been granted a waiver of compliance with these rules and obtained a certificate of waiver shall, prior to engaging in practice as a hearing aid dispenser in the state of Iowa, satisfy the following requirements for reinstatement:

122.10(1) Submit written application for reinstatement to the board upon forms provided by the board;

122.10(2) Submit payment of the reinstatement fee;

122.10(3) Submit payment of the current renewal fee;

122.10(4) Furnish verification of license(s) from every state in which the licensee has practiced since the Iowa license lapsed; and

122.10(5) Furnish in the application evidence of one of the following:

a. Completion of 32 hours of approved continuing education taken within the two bienniums immediately prior to the date of application for reinstatement. The total number of continuing education hours required for license reinstatement is computed by multiplying 32 by the number of bienniums since the license lapsed, not to exceed 96 hours;

b. Proof of current valid hearing aid dispenser’s license in another state of the United States or the District of Columbia and completion of continuing education for each biennium of inactive status substantially equivalent in the opinion of the board to that required under these rules; or

c. Proof of successfully passing the national written examination within one year immediately prior to the submission of the application for reinstatement.

ITEM 7. Adopt new 645—Chapter 124 as follows:

CHAPTER 124
DISCIPLINE FOR HEARING AID DISPENSERS

124.1(1) The board hereby adopts by reference the Code of Ethics of the International Hearing Society as published by the International Hearing Society, 20361 Middlebelt Road, Livonia, Michigan 48152, revised October 1996.

124.1(2) The board may impose any of the disciplinary sanctions set forth in rule 645—13.1(272C), including civil penalties in an amount not to exceed $1000, when the board determines that a licensee is guilty of any of the following acts or offenses:

a. Willful or repeated violations of the provisions of Iowa Code chapter 154.

b. Violation of the rules promulgated by the board.

c. Knowingly making misleading, deceptive, untrue or fraudulent representations in the practice of the profession or engaging in unethical conduct or practice harmful or detrimental to the public. Proof of actual injury need not be established.

d. Fraud in representations as to skill or ability.

e. Personal disqualifications:

(1) Mental or physical inability reasonably related to and adversely affecting the licensee’s ability to practice in a safe and competent manner.

(2) Involuntary commitment for treatment of mental illness, drug addiction or alcoholism.

f. Practicing the profession while the license is suspended or lapsed.

g. Violating the terms of probation, settlement or decision and order.

h. Revocation, suspension, or other disciplinary action taken by a licensing authority of another state, territory, or country.

i. Negligence by the licensee in the practice of the profession, which is a failure to exercise due care including negligent delegation to or supervision of employees or other individuals, whether or not injury results; or any conduct, practice or conditions which impair the ability to safely and skillfully practice the profession.

j. Except in cases of selling replacement hearing aids of the same make or model within one year of the original sale, a hearing aid shall not be sold without adequate diagnostic testing and evaluation using established procedures. Instruments shall be calibrated to current standards at least annually or more often if necessary. The distributor shall keep with the instruments a certificate indicating the date of calibration. Established procedures mean use of pure tone air conduction and bone conduction and speech audiometry.

k. Prohibited acts consisting of the following:

(1) Permitting an unlicensed employee or person under the licensee’s control to perform activities requiring a license.

(2) Permitting another person to use the licensee’s license for any purpose.

(3) Practicing outside the scope of a license.

(4) Obtaining, possessing, or attempting to obtain or possess a controlled substance without lawful authority; or sell– ing, prescribing, giving away, or administering controlled substances.

(5) Verbally or physically abusing clients.

l. Unethical business practices, consisting of any of the following:

(1) Betrayal of a professional confidence.

(2) Falsifying clients’ records.

(3) Advertising that hearing testing or hearing screening is for the purpose of detection of or diagnosis of medical problems or medical screening for referral to a physician.

(4) Failure to place in an advertisement relating to hearing aids the hearing aid dispenser’s name, office address, and telephone number.

m. Failure to report a change of name or address within 30 days after it occurs.

n. Submission of a false report of continuing education or failure to submit the biennial report of continuing education.

o. Failure to notify the board within 30 days after occurrence of any judgment or settlement of a malpractice claim or action.

p. Failure to comply with a subpoena issued by the board.

q. Failure to report to the board as provided in 645—Chapter 9 any violation by another licensee of the reasons for the disciplinary action as listed in this rule.

This rule is intended to implement Iowa Code section 147, 154A and 272C.

ITEM 8. Adopt new 645—Chapter 125 as follows:

CHAPTER 125
FEES

645—125.1(147,154A) License fees. All fees are nonrefundable.

125.1(1) Application fee for a license to practice by examination, endorsement, and reciprocity is $130.

125.1(2) Examination fee (check or money order made payable to the International Hearing Society) is $95.

125.1(3) Renewal of license fee is $50.

125.1(4) Temporary permit fee is $35.

125.1(5) Late fee for a lapsed license is $50.

125.1(6) Reinstatement fee for a lapsed license or an inactive license is $50

125.1(7) Duplicate license fee is $10.

125.1(8) Verification of license fee is $10.

125.1(9) Returned check fee is $15.

125.1(10) Disciplinary hearing fee is a minimum of $75.

This rule is intended to implement Iowa Code chapter 154A.

Pursuant to the authority of Iowa Code section 147.76, the Board of Psychology Examiners hereby gives Notice of Intended Action to rescind Chapter 239, “Board of Psychology Examiners,” and adopt new Chapter 239, “Administrative and Regulatory Authority for the Board of Psychology Examiners,” Iowa Administrative Code.

The proposed amendment rescinds the current rules about the organization and purpose of the Board and adopts new rules on the purpose of the Board, organization and proceedings of the Board, official communication, office hours, and public meetings.

Any interested person may make written comments on the proposed amendment no later than March 28, 2002, addressed to Ella Mae Baird, Professional Licensure Division, Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319–0075.

The Division revised these rules in accordance with Executive Order Number 8. Division staff and board members had input on these rules. Decisions were made based on need, clarity, intent and statutory authority, cost and fairness.

A public hearing will be held on March 28, 2002, from9 to 11 a.m. in the Fifth Floor Board Conference Room, Lucas State Office Building, at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the proposed amendment.

This amendment is intended to implement Iowa Code section 147.76 and chapters 17A, 154B, and 272C.

The following amendment is proposed.

Rescind 645—Chapter 239 and adopt the following new chapter in lieu thereof:

CHAPTER 239
ADMINISTRATIVE AND REGULATORY AUTHORITY
FOR THE BOARD OF PSYCHOLOGY EXAMINERS

“Board” means the board of psychology examiners.

“Board office” means the office of the administrative staff.

“Department” means the department of public health.

“Disciplinary proceeding” means any proceeding under the authority of the board pursuant to which licensee discipline may be imposed.

“License” means a license to practice psychology.

“Licensee” means a person licensed to practice psychology.

“Peer review” means evaluation of professional services rendered by a professional practitioner.

“Peer reviewer(s)” means one or more persons acting in a peer review capacity who have been appointed by the board for such purpose.

645—239.2(17A) Purpose of board. The purpose of the board is to administer and enforce the provisions of Iowa Code chapters 17A, 147, 154B and 272C with regard to the practice of psychology. The mission of the board is to protect the public health, safety and welfare by licensing qualified individuals who provide services to consumers and by fair and consistent enforcement of the statutes and the rules of the licensure board. Responsibilities include, but are not limited to:

239.2(1) Licensing of qualified applicants to practice psychology through examination, renewal, endorsement, and reciprocity.

239.2(2) Developing and administering a program of continuing education to ensure continued competency of individuals licensed by the board.

239.2(3) Imposing discipline on licensees as provided by statute or rule.

239.3(1) The board is composed of seven members appointed by the governor and confirmed by the senate.

239.3(2) The members of the board shall include five members who are licensed to practice psychology and two members not licensed to practice psychology and who shall represent the general public. Of the five members who are licensed to practice psychology, one member shall be primarily engaged in graduate teaching in psychology, two members shall provide services in psychology, one member shall represent areas of applied psychology and may be affiliated with training institutions and shall devote a major part of the member’s time to providing service in psychology, and one member shall be primarily engaged in research psychology.

239.3(3) The board shall elect a chairperson, vice chairperson and a secretary from its membership at the first meeting after April 30 of each year.

239.3(4) The board shall hold at least four meetings annually.

239.3(5) A majority of the members of the board shall constitute a quorum.

239.3(6) Board meetings shall be governed in accordance with Iowa Code chapter 21, and the board’s proceedings shall be conducted in accordance with Robert’s Rules of Order, Revised.

239.3(7) The division of professional licensure shall furnish the board with the necessary facilities and employees to perform the duties required by this chapter, but shall be reimbursed for all costs incurred from funds appropriated to the board.

239.3(8) The board has the authority to:

a. Develop and implement a program of continuing education to ensure continued competency of individuals licensed by the board.

b. Establish fees.

c. Establish committees of the board, the members of which shall be appointed by the board chairperson and shall not constitute a quorum of the board. The board chairperson shall appoint committee chairpersons.

d. Hold a closed session if the board votes to do so in a public roll call vote with an affirmative vote of at least two–thirds if the total board is present or a unanimous vote if less are present. The board will recognize the appropriate statute allowing for a closed session when voting to go into closed session. The board shall keep minutes of all discussion, persons present, and action occurring at a closed session and shall tape–record the proceedings. The records shall be stored securely in the board office and shall not be made available for public inspection.

e. Investigate alleged violations of statutes or rules that relate to the practice of psychology upon receipt of a complaint or upon the board’s own initiation. The investigation will be based on information or evidence received by the board.

f. Initiate and impose licensee discipline.

g. Monitor licenses that are restricted by a board order.

h. Establish and register peer reviewers.

i. Refer to one or more registered peer reviewers for investigation and review. The peer reviewers will review cases and recommend appropriate action. However, the referral of any matter shall not relieve the board of any of its duties and shall not divest the board of any authority or jurisdiction.

239.4(1) All official communications, including submissions and requests, may be addressed to the Board of Psychology Examiners, Professional Licensure Division, Fifth Floor, Lucas State Office Building, Des Moines, Iowa 50319–0075.

239.4(2) Notice of address. Each licensee shall notify the board in writing of a change of the licensee’s current mailing address within 30 days after the change of address occurs.

645—239.5(17A) Office hours. The board office is open for public business from 8 a.m. to 4:30 p.m., Monday to Friday of each week, except holidays.

645—239.6(17A) Public meetings. Members of the public may be present during board meetings unless the board votes to hold a closed session. Dates and location of board meetings may be obtained from the board’s Web site (http://www. idph.state.ia.us/licensure) or directly from the board office.

239.6(1) At every regularly scheduled board meeting, time will be designated for public comment. During the public comment period, any person may speak for up to two minutes. Requests to speak for two minutes per person later in the meeting when a particular topic comes before the board should be made at the time of the public comment period and will be granted at the discretion of the chairperson. No more than ten minutes will be allotted for public comment at any one time unless the chairperson indicates otherwise.

239.6(2) Persons who have not asked to address the board during the public comment period may raise their hands to be recognized by the chairperson. Acknowledgment and an opportunity to speak will be at the discretion of the chairperson.

These rules are intended to implement Iowa Code chapters 17A, 147, and 154B.

Pursuant to the authority of Iowa Code sections 147.76 and 272C.3, the Board of Social Work Examiners hereby gives Notice of Intended Action to amend Chapter 280, “Licensure of Social Workers,” Iowa Administrative Code.

The proposed amendments will require social workers to report at the time of the renewal of their licenses that they have completed the mandatory training on identifying and reporting child and dependent adult abuse.

Any interested person may make written comments on the proposed amendments no later than March 26, 2002, addressed to Ella Mae Baird, Professional Licensure Division, Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319–0075.

A public hearing will be held on March 26, 2002, from1 to 3 p.m. in the Professional Licensure Conference Room, Lucas State Office Building, at which time persons may pre–sent their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the proposed amendments.

These amendments are intended to implement Iowa Code chapters 147 and 272C.

The following amendments are proposed.

ITEM 1. Amend rule 645—280.1(154C) by adopting the following new definition in alphabetical order:

“Mandatory training” means training on identifying and reporting child abuse or dependent adult abuse required of social workers who are mandatory reporters. The full requirements on mandatory reporting of child abuse and the training requirements are found in Iowa Code section 232.69. The full requirements on mandatory reporting of dependent adult abuse and the training requirements are found in Iowa Code section 235B.16.

ITEM 2. Renumber subrules 280.8(3) and 280.8(4) as 280.8(4) and 280.8(5) and adopt the following new subrule 280.8(3):

280.8(3) Mandatory reporting of child abuse and dependent adult abuse.

a. A licensee who regularly examines, attends, counsels or treats children in Iowa shall indicate on the renewal application completion of two hours of training in child abuse identification and reporting in the previous five years or condition(s) for waiver of this requirement as identified in paragraph “f.”

b. A licensee who regularly examines, attends, counsels or treats dependent adults in Iowa shall indicate on the renewal application completion of two hours of training in dependent adult abuse identification and reporting in the previous five years or condition(s) for waiver of this requirement as identified in paragraph “f.”

c. A licensee who regularly examines, attends, counsels or treats both dependent adults and children in Iowa shall indicate on the renewal application completion of training in abuse identification and reporting in dependent adults and children or condition(s) for waiver of this requirement as identified in paragraph “f.”

d. Training may be completed through separate courses as identified in paragraphs “a” and “b” or in one combined two–hour course that includes curricula for identifying and reporting child abuse and dependent adult abuse.

e. The licensee shall maintain written documentation for five years after mandatory training as identified in paragraphs “a” to “c,” including program date(s), content, duration, and proof of participation.

f. The requirement for mandatory training for identifying and reporting child and dependent adult abuse shall be suspended if the board determines that suspension is in the public interest or that a person at the time of license renewal:

(1) Is engaged in active duty in the military service of this state or the United States.

(2) Holds a current waiver by the board based on evidence of significant hardship in complying with training requirements, including waiver of continuing education requirements or extension of time in which to fulfill requirements due to a physical or mental disability or illness as identified in 645—Chapter 280.

g. The board may select licensees for audit of compliance with the requirements in paragraphs “a” to “e.”

In accordance with the provisions of Iowa Code section 535.2, subsection 3, paragraph “a,” the Superintendent of Banking has determined that the maximum lawful rate of interest shall be:

February 1, 2001 — February 28, 2001 8.00%

March 1, 2001 — March 31, 2001 7.25%

April 1, 2001 — April 30, 2001 7.00%

May 1, 2001 — May 31, 2001 7.00%

June 1, 2001 — June 30, 2001 7.25%

July 1, 2001 — July 31, 2001 7.50%

August 1, 2001 — August 31, 2001 7.25%

September 1, 2001 — September 30, 2001 7.25%

October 1, 2001 — October 31, 2001 7.00%

November 1, 2001 — November 30, 2001 6.75%

December 1, 2001 — December 31, 2001 6.50%

January 1, 2002 — January 31, 2002 6.75%

February 1, 2002 — February 28, 2002 7.00%

March 1, 2002 — March 31, 2002 7.00%

Pursuant to Iowa Code sections 17A.4, 68B.2A, and 476.2 (2001), the Utilities Board (Board) gives notice that on February 7, 2002, the Board issued an order in Docket No. RMU–02–4, In re: Sale of Goods and Services,“Order Commencing Rule Making.”

The Board is proposing to amend 199 IAC 1.6(2) to make the provisions consistent with the provisions of the Department of Personnel rules at 581  IAC 18.2(1), with regard to the definition of selling goods and services by state employees.

Pursuant to Iowa Code sections 17A.4(1)“a” and “b,” any interested person may file a written statement of position pertaining to the proposed amendment. The statement must be filed on or before March 26, 2002, by filing an original and ten copies in a form substantially complying with 199 IAC 2.2(2). All written statements should clearly state the author’s name and address and should make specific reference to this docket. All communications should be directed to the Executive Secretary, Utilities Board, 350 Maple Street, Des Moines, Iowa 50319–0069.

No oral presentation is scheduled at this time. Pursuant to Iowa Code section 17A.4(1)“b,” an oral presentation may be requested or the Board on its own motion after reviewing the statements may determine that an oral presentation should be scheduled.

This amendment is intended to implement Iowa Code sections 17A.4, 68B.4, 476.2.

The following amendment is proposed.

Amend subrule 1.6(2), definition of “selling goods or services,” as follows:

“Selling goods or services” may include “employment by” or “employment on behalf of.” means the receipt of compensation by an employee for providing goods or services, except the selling of goods or services shall not apply to outside employment activities that constitute an employer–employee relationship.

Pursuant to Iowa Code sections 476.1, 476.2, 478.2, 479.5, 479.29, 479A.14, 479B.20, and 17A.4 (2001), the Utilities Board (Board) gives notice that on February 7, 2002, the Board issued an order in Docket No. RMU–02–2, In re: Update of Pipeline and Transmission Line Rules, “Order Commencing Rule Making.” The Board is proposing to amend 199 IAC 10.2(1), 10.3(4)“a,” 11.5(1)“a,” and 13.2(1). The amendments to 10.2(1) and 13.2(1) will add the requirement of filing as Exhibit “I” the land restoration plan that must be filed if a company is proposing to construct a pipeline on agricultural land as defined in 199 IAC 9.1(3).

199 IAC 10.3(4)“a” is being amended to bring the notice requirements for informational meetings prior to filing a petition for a permit to construct a natural gas pipeline into compliance with Iowa Code section 479.5. 199 IAC 11.4(5)“a” is being amended to bring the notice requirements for informational meetings prior to the filing of a petition for a franchise to construct an electric transmission line into compliance with Iowa Code section 478.2.

Pursuant to Iowa Code sections 17A.4(1)“a” and “b,” any interested person may file a written statement of position pertaining to the proposed amendments. The statement must be filed on or before March 26, 2002, by filing an original and ten copies in a form substantially complying with 199 IAC 2.2(2). All written statements should clearly state the author’s name and address and should make specific reference to this docket. All communications should be directed to the Executive Secretary, Iowa Utilities Board, 350 Maple Street, Des Moines, Iowa 50319–0069.

No oral presentation is scheduled at this time. Pursuant to Iowa Code section 17A.4(1)“b,” an oral presentation may be requested or the Board on its own motion after reviewing the statements may determine that an oral presentation should be scheduled.

These amendments are intended to implement Iowa Code sections 476.1, 476.2, 478.2, 479.5, 479.29, 479A.14, 479B.20, and 17A.4.

The following amendments are proposed.

ITEM 1. Amend subrule 10.2(1) by relettering paragraphs “i” and “j” as “j” and “k” and adopting new paragraph “i” as follows:

i. Exhibit “I.” If pipeline construction on agricultural land as defined in 199—subrule 9.1(3) is proposed, a land restoration plan shall be prepared and filed as provided in rule 199—9.2(479,479A,479B).

ITEM 2. Amend paragraph 10.3(4)“a” as follows:

a. The meeting notice shall state the name of the prospective petitioner; state the address of the prospective petitioner’s principal place of business; state the general description and purpose of the proposed project; state the general nature of the right–of–way desired; include a map showing the proposed route; advise that the affected party has the right to be present at the informational meeting and to file objections with the board; The notice shall set forth the name of the applicant; the applicant’s principal place of business; the general description and purpose of the proposed project; the general nature of the right–of–way desired; the possibility that the right–of–way may be acquired by condemnation if approved by the board; a map showing the route of the proposed project; a description of the process used by the board in making a decision on whether to approve a permit including the right to take property by eminent domain; that the landowner has a right to be present at such meeting and to file objections with the board; and a designation of the time and place of the meeting; and contain the following statement: Persons with disabilities requiring assistive services or devices to observe or participate should contact the Utilities Board at (515)281–5256 in advance of the scheduled date to request the appropriate arrangements be made; and designate the date, time, and place of the meeting. Mailed notices shall also include a copy of the statement of damage claims as required by 10.2(3)“b.”