This rule modifies the Uniform Rules on Agency Procedure related to contested cases (7—Chapter 2506) to ensure that claims governed by Iowa Code chapter 669 (Iowa Tort Claims Act) are governed by the administrative procedures of the Iowa Tort Claims Act and not the contested case provisions of 7—Chapter 2506. 

This amendment modifies the Uniform Rules on Agency Procedure related to contested cases (761—Chapter 2506) which will be effective as of July 1, 2026. These changes are to ensure the Department’s compliance with Iowa Code and continued contested case operation within the uniform rules as enacted by the legislature in Iowa Acts 2026, Senate File 2463.

This amendment modifies the Uniform Rules on Agency Procedure related to declaratory orders (7—Chapter 2503) to ensure that criminal defendants cannot use the declaratory order process to collaterally attack criminal investigations, criminal prosecutions, criminal convictions, or the constitutionality of statutes.  

This rulemaking implements the transition to the statewide uniform rules on agency procedure as mandated by 2026 Iowa Acts, Senate File 2463. While the Department of Corrections (Department) adopts the majority of the uniform rules to ensure consistency across state government, this rulemaking includes critical additions and exceptions necessary to maintain institutional security and comply with correctional-specific statutes.

Pursuant to SF 2463, section 5, the Department has determined that the following modifications are necessary to fulfill its statutory duties under Iowa Code 904. These changes include the following:

Item 1: Chapter 5– Public Records and Fair Information Practices

Modification: Rescind 201–Chapter 5

Justification: Senate File 2463 rescinded the majority of 201–Chapter 5 effective July 1, 2026. The Department is required to maintain specific information policies regarding personally identifiable information (PII) pursuant to Iowa Code section 22.11. To avoid administrative “orphan” rules and potential confusion for the public, the Department is rescinding the entirety of 201–Chapter 5 and simultaneously adopting the mandatory PII provisions within the new 201-Chapter 2505. This ensures all Fair Information Practices are centralized and compliant with statutory requirements.

Item 2: Chapter 2501–Agency Procedure for Rulemaking

Modification: Rule 201–2501.2 regarding exemptions relating to incarcerated individuals/clients.

Justification: This addition reflects the Department’s existing authority under Iowa Code section 17A.2(11) “k,” which exempts policies, procedures, and statements relating only to inmates of a penal institution from the rulemaking process. These operational mandates are vital to the safe and orderly management of the incarcerated population. Maintaining these policies in departmental manuals, institutional manuals/handbooks, as well as on the Department’s website ensures they remain easily accessible to staff, the public, and the incarcerated individual/client population. This approach provides the Department the necessary flexibility to update security protocols and behavioral expectations promptly in response to evolving institutional needs.

Item 3: Chapter 2504–Rule Waivers

Modification: Rule 201–2504.6 regarding public availability and redaction of records.

Justification: Under Iowa Code section 904.602, the Department is the custodian of highly sensitive security and incarcerated individual/client data. While waiver petitions are public records, the Department must have the explicit authority to redact information mandated as confidential by correctional statutes prior to public inspection to ensure that transparency does not compromise institutional safety or violate the privacy and confidentiality rights of incarcerated individuals/clients as protected under Iowa law.

Item 4: Chapter 2505–Fair Information Practices

Modification 1: Subrule 201–2505.3(1) Location of record.

Justification: This clarification directs requesters to the specific place of confinement or the Iowa Medical and Classification Center, ensuring requests are handled by the correct custodial unit, promoting timely response and reducing administrative delays.

Modification 2: Paragraph 201–2505.3(7) “b” Fees and costs; and 201–2505.3(7) “c” Advanced payment.

Justification: The Department is opting out of the uniform "three-hour" free labor threshold and the "$250.00" advance payment. These modifications are necessary because the Department manages a high volume of complex record requests that often require extensive manual searches and highly technical confidentiality reviews by staff and legal counsel. Requiring three hours of staff or attorney labor at no charge would create a significant unfunded mandate, materially increasing the administrative workload and diverting limited Departmental resources away from core public safety and institutional security missions. The modified approach of providing 30 minutes of labor at no cost and requiring advance payment for estimated fees exceeding $25.00 reflects the Department's current successful practice. This structure appropriately balances the public's right to access records with the Department’s need to manage resources responsibly. The  $25.00 advance payment threshold is vital to ensure the Department can recover the actual costs of labor and to prevent the expenditure of significant staff time on requests that are later abandoned or left unpaid.

Modification 3: Rule 201–2505.9 Confidentiality under Iowa Code chapter 904.

Justification: Records maintained by the Department are not only subject to Iowa Code Chapter 22, but also the provisions of 904.601, 904.602, and 904.603. Including these provisions ensures requests are handled consistently with statutory confidentiality mandates and protects sensitive correctional, security, and incarcerated individual/client information.

Modification 4: Rule 201–2505.10 Personally Identifiable Information (PII). 

Justification: The Department is reintegrating the descriptions of PII systems, formerly located in 201–Chapter 5. This reintegration is necessary to fulfill the requirements of Iowa Code section 22.11, which mandates that state agencies describe the nature and extent of the PII they collect. By housing this information within 201–Chapter 2505, the Department ensures all Fair Information Practices are centralized in a single chapter, preventing administrative “straggler” provisions and providing the public with a cohesive guide to Departmental records.

Item 5: Chapter 2506–Contested Cases 

Modification: Rules 201–2506.32 through 201–2506.35

Justification: While the Department adopts the Uniform Rules on Contested Cases, specific additions are required to implement Iowa Code sections 356.36(2) and 356.43. These provisions, previously located in 201–Chapter 12, establish the mandatory criteria for a Notice of Noncompliance, the Informal Settlement process, and the specific triggers for requesting a hearing regarding facility inspections. Centralizing these “pre-hearing” procedures within the new 201–Chapter 2506 ensures local agencies have clear notice of the Department’s enforcement process before a formal contested case begins under the uniform rule framework.

This amendment modifies the Uniform Rules of Agency Procedure related to Fair Information Practices to ensure agency compliance with Iowa Code Section 22.11 regarding personally identifiable information (PII) that is unique to the State Public Defender. Section 22.11 imposes an obligation on each agency to adopt rules which provide the nature of PII collected by the agency and to indicate which records contain PII and if they are public or confidential. Since the uniform rule is not specific to each agency, this rulemaking is necessary to comply with the statute directive regarding PII.

The proposed rulemaking addresses the financial responsibility requirements for adjusters that had previously been set out in Iowa Code and in the Insurance Division Bulletin.  The rulemaking allows for expanded methods by which adjusters may comply with the financial responsibility requirements.  The financial responsibility requirements could be the subject of frequent adjustments; therefore, the rulemaking process affords greater flexibility in addressing such changes. 

This rulemaking rescinds rules 9.2 and 9.12, which were not automatically rescinded under the provisions of 2026 Iowa Acts, Senate File 2463.

These amendments also modify the Uniform Rules on Agency Procedure related to rule waivers (7—Chapter 2504), fair information practices (7—Chapter 2505) and contested cases (7—Chapter 2506) to maintain rules as determined necessary by the Department and to ensure that the Department follows all applicable State and federal requirements not currently contained in the Uniform Rules on Agency Procedure.

The rules involved and reasons for differences are detailed below.

• Rule Waivers (441—Chapter 2504)

• Did not adopt language from 7—subrule 2504.3(2) allowing an evidentiary hearing on the denial of a request for waiver. Iowa Code section 17.9A(2) provides that determinations on waivers are within the sole discretion of an agency and therefore would not properly be raised before an administrative law judge (ALJ).

• Fair information practices (441—Chapter 2505)

• Added definitions in 441—2505.1 necessitated by the new subrules, below.

• Added new subrule 441—2505.5(4) which provides that individuals may request restrictions on the use of protected health information (PHI) pursuant to 45 CFR 164.522.

• Added new subrule 441—2505.7(1) relating to disclosures of PHI allowed under the Health Insurance Portability and Accountability Act of 1996 (HIPAA).

• Added new subrule 441—2505.7(2) specifying that the Department will also maintain written policies for general uses of PHI for treatment, payment, and healthcare operations purusant to HIPAA.

• Added new subrule 441—2505.9 to restore the provisions of 441—rule 9.12(17A,22), which was allowed to be retained by the Department under the provisions of 2026 Iowa Acts, Senate File 2463.

• Contested cases (441—Chapter 2506)

• Added definitions to rule 441—2506.2(17A) that pertain to subsequent additions to the Uniform Rule.

• Replaced language of subrule 2506.3(1) pertaining to time computation with more specific provisions to account for time tolled for State holidays that is not accounted for in the Iowa Code section referenced in the Uniform Rule.

• Added subrule 441—2506.4(3) regarding “parties-in-interest” to a contested case. The Department frequently encounters situations in which a contested case hearing is requested by individuals who are not constitutionally or statutorily entitled to a hearing. Adding this subrule provides clear guidelines for those situations.

• Added subrule 441—2506.4(4) outlining situations in which a contested case hearing will not be granted by the Department.

• Added subrule 441—2506.4(5) which accounts for situations in which all other remedies must be exhausted prior to a contested case hearing being granted. For example, under Medicaid managed care, aggrieved enrollees must first go through the internal grievance process established by the Managed Care Organizations (MCOs) prior to requesting a contested case hearing from the State.

• Added subrule 441—2506.4(6) to accommodate federal regulations for appeals under Medicaid and the Supplemental Nutrition Assistance Program (SNAP). These regulations outline the methods in which appeals can be submitted and encompasses more than electronic submission, which is the only method allowed under the Uniform Rule.

• Added subrule 441—2506.4(7) which sets a standard timeframe to file appeals for situations in which another law or rule does not set forth the timeframe.

• Added subrule 441—2506.4(8) regarding acceptance or denial of an appeal. The Department receives approximately 10,000 appeal requests per year, many from unrepresented individuals. This provision allows the Department to vet the requests to determine whether they should move forward, facilitating efficiency, while still preserving an individual’s right to appeal.

• Added subrule 441—2506.4(9) which allows the Department to designate and certify exactly which issues are to be decided in the contested case proceeding. This creates clarity early in the process yet allows the issues to be adjusted as the appeal progresses. This provision is not included in the Uniform Rules.

• Added subrule 441—2506.4(10) to incorporate federal requirements for SNAP hearings.

• Added a revised subrule 441—2506.5(2), which excludes language from the Uniform rule that the Department has already clarified by previously adding subrule 441—2506.4(7). This clearly establishes that the Department bears the burden of identifying the issues of the matter. In addition, the revised subrule excludes language that would require the Department to set forth the telephone number and address of all representatives, which would require a system change for the Department.

• Added revised language subrule 441—2506.6(1). The revision reflects the fact that almost all the Department’s appeals go before an ALJ and therefore parties would only have to request an ALJ in the event one has not already been assigned.

• Added subrules 441—2506.10(3) and (4) to ensure compliance with federal regulations for Medicaid and SNAP appeals, respectively.

• Excluded 441—rule 2506.11(17A), which would require a formal petition in addition to the request for contested case hearing and would also require the Department to answer every appeal. Due to the Department’s high volume of appeals and current appeals system constraints, the requirements of this rule would be overly burdensome.

• Added conforming language to subrule 441—2506.12(1) to reflect the Department’s addition of subrule 441—2506.4(4) regarding filing methodology. This addition ensures compliance with federal Medicaid regulations.

• Added subrule 441—2506.18(1) which conforms to the federal regulations that dictate method of withdrawal from Medicaid appeals.

• Added subrule 441—2506.18(2) which conforms to the federal regulations that dictate method of withdrawal from SNAP appeals.

• Added language to subrule 441—2506.20(3) to:

• Explicitly state that the Department may be represented by its own employees or employees of Department contractors at contested case hearings.

• Explicitly state that Medicaid members may appoint an “authorized representative” to represent them in all Department matters as required by 42 CFR 435.923.

• Added subrule 441—2506.20(8) to help ensure that the terms of “authorized representation” are clearly defined and properly limited to protect Medicaid members’ interests.

• Added subrule 441—2506.20(9) to require legal counsel to enter an appearance. Because the Department does not require petitions and answers, requiring counsel to enter an appearance is necessary to ensure the Department is aware of representation. 

• Added subrule 441—2506.20(10) which provides that absent a mutual agreement by the parties, contested case hearings are closed to the public. This is necessary because many of the Department’s appeals pertain to sensitive, confidential situations and information.

• Added paragraphs to subrule 441—2506.27(1) to reflect the unique timeframes required by State or federal law for Medicaid, SNAP, child abuse, and the Special Supplemental Nutrition Program for Women and Children (WIC) appeals of proposed decisions.

• Added the qualifier, “Unless otherwise required by law,” to subrule 441—2506.27(2) to reflect the timeframes described in subrule 441—2506.27(1).

• Added new subrule 441—2506.27(7) to maintain the Department’s existing requirement that a director’s review on appeal is limited to the issues and record heard by the ALJ.

• Added new rule 441—2506.32(17A) to implement federal requirements for the timeframes within which contested cases must be held for Medicaid, division of spousal community resources for benefit determinations, SNAP, and WIC.

• Added new rule 441—2506.33(17A) to reflect the federal requirements for an expedited review for Medicaid appeals.

• Added new rule 441—2506.34(17A) to account for the federal requirements for administrative disqualifications hearings with respect to the SNAP program.

• Added new rule 441—2506.35(17A) containing federal requirements for continuation and reinstatement of benefits in certain circumstances and allowing the Department to recoup benefits in the event an adverse action is overturned. 

This amendment modifies the Uniform Rules on Agency Procedure related to contested cases (7—Chapter 2506) to ensure that contested cases arising from Workforce Innovation and Opportunity Act programs, Registered Apprenticeship programs, and Vocational Rehabilitation programs are governed by the applicable Federal regulations (20 CFR Part 683 Subpart F, 29 CFR Parts 29 and 30, and 34 CFR Part 361) and not the contested case provisions of 7—Chapter 2506.

 The new Uniform Rules on Agency Procedure are effective as of January 13, 2026, which means there is an inconsistency between the contested case provisions of the Uniform Rules and the procedures laid out in 20 CFR Part 683 Subpart F, 29 CFR Parts 29 and 30, and 34 CFR Part 361. Earlier adoption of this rulemaking will allow the Workforce Development Department to ensure any contested case coming before the Department has clear direction as to the appropriate procedural requirements.

Iowa Code section 17A.24 provides that if an agency does not have rules in effect covering certain procedural subjects, then uniform rules adopted by the administrative rules coordinator apply to the agency.  The administrative rules coordinator has adopted uniform administrative rules in title 7 of the Iowa Administrative Code.

Senate File 2463, section 4, subparagraphs (1)(be) and (bf) legislatively rescind certain Commission rules effective July 1, 2026.  Accordingly, under Iowa Code section 17A.24(2), the agency will not have rules in effect addressing the uniform rule subjects, and so the uniform rules will apply to the Commission.  However, under section 17A.24(3), an agency may adopt rules providing for additions, exceptions, or amendments to a uniform rule.  Senate File 2463, section 5, authorizes emergency rulemaking for this purpose.

Under Senate File 2463, section 5, subparagraph (2), an agency may only adopt emergency rules upon making certain findings.  The Commission finds that the emergency rules are otherwise necessary under subparagraph (2)(b), as explained below.

ITEM 1 modifies a uniform rule by streamlining the requirements applicable to intervenors in declaratory order proceedings before the Commission.  The uniform rule requires potential intervenors to detail facts supporting the intervenor’s standing and qualifications for intervention.  The Commission’s modification requires potential intervenors only to detail facts supporting the intervenor’s qualifications for intervention.  This modification is necessary because an intervenor’s qualifications for intervention necessarily includes their standing, rendering a separate mention of standing superfluous.

ITEM 2 modifies a uniform rule by providing that lengthy and technical filings will not be required in certain categories of licensing appeals.  The uniform rule provides that filing requirements in contested cases may be imposed by rule, by the notice of hearing, or by order of the presiding officer.  The Commission’s modification to this rule adds an exception clarifying that for certain categories of occupational licensing appeals, pleadings other than a notice of appeal will not be required.  Adding this language to the rule is necessary because it avoids imposing a potential burden on occupational license applicants, many of whom are not represented by counsel when going through the licensing process.

Pursuant to Sente File 2463, section 5, subsection 2, "b", these rules are determined to be necessary by the agency to enhance procedures related to contested cases and waivers before the Board. These rules supplement the uniform rules in a way that assists both applicants and the Board. This amendment modifies the Boiler and Pressure Vessel Board Administrative and Regulatory Authority rules to supplement the agency’s Uniform Rules on contested case provisions found in 7—Chapter 2506 and Uniform Rules related to waiver found in 7— Chapter 2504. 

 This proposed rulemaking removes the requirement that the department include a full Social Security number when mailing statements to reimbursable employers.

Uniform rules of agency procedures which are suitable for general applicability to agencies for rulemaking, petitions for rulemaking, waiver of rules, declaratory orders, contested cases and fair information practices.