Proposing rule making related to waste tire management and providing an opportunity for public comment
The Environmental Protection Commission (Commission) hereby proposes to amend Chapter 116, “Registration of Waste Tire Haulers,” and Chapter 117, “Waste Tire Management,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 455D.11(7) and 455D.11I(7).State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 455D.11A(5) and 455D.11I(6) and 2021 Iowa Acts, House File 560.Purpose and Summary Chapters 116 and 117 collectively establish standards for the proper management of waste tires. Specifically, the rules set forth requirements for the disposal, collection, storage, processing, and beneficial use of waste tires. They also require permits, require the registration of waste tire haulers, and dictate certain industry fees. The purpose of this proposed rule making is to align Chapters 116 and 117 with their recently amended authorizing statutes. Iowa Code sections 455D.11A(5) and 455D.11I(6) as amended by 2021 Iowa Acts, House File 560, made several substantive changes to the waste tire program. The following amendments are proposed, consistent with the legislation:
Proposing rule making related to sales or leases by regulatory agency officials or employees and providing an opportunity for public comment
The Ethics and Campaign Disclosure Board hereby proposes to amend Chapter 1, “Iowa Ethics and Campaign Disclosure Board,” and Chapter 6, “Executive Branch Ethics,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 68B.32A.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 68B.4 as amended by 2021 Iowa Acts, House File 491.Purpose and Summary These proposed amendments implement 2021 Iowa Acts, House File 491, prohibiting state regulatory agency officials and employees from selling or leasing real estate to persons subject to the agency’s regulatory authority unless certain conditions are met.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 351—Chapter 15. Public Comment Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Board no later than 4:30 p.m. on September 28, 2021. Comments should be directed to: Michael Marshall Iowa Ethics and Campaign Disclosure Board 510 East 12th Street, Suite 1A Des Moines, Iowa 50319 Fax: 515.281.4073 Email: mike.marshall@iowa.gov Public Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: September 29, 2021 2 to 2:15 p.m. Zoom link: us02web.zoom.us/j/82254559463?pwd=cmd EZU9LY1ZLaFhwbFkzUkRXNGNydz09 Meeting ID: 822 5455 9463 Passcode: 174520 Phone: +1 312.626.6799 US (Chicago) (enter meeting ID and passcode) Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Board and advise of specific needs. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:
ITEM 1. Amend subrule 1.4(9) as follows: 1.4(9) As the board is defined as a “regulatory agency” under Iowa Code section 68B.2(23), members and staff of the board shall comply with the requirements of Iowa Code section 68B.4 and rule 351—6.11(68B) prior to selling or leasing goods, real estate, or services to individuals, associations, or corporations subject to the board’s regulatory authority. ITEM 2. Amend 351—Chapter 6, Division III heading, as follows:SALES OR LEASES OF GOODS, REAL ESTATE, OR SERVICES ITEM 3. Amend rule 351—6.11(68B), introductory paragraph, as follows:351—6.11(68B) Sales or leases by regulatory agency officials or employees. An official or employee of a regulatory agency shall not directly or indirectly sell or lease any goods, real estate, or services to individuals, associations, or corporations subject to the regulatory authority of the official’s or employee’s agency except as provided by Iowa Code section 68B.4 and this rule. This prohibition does not apply to sales or leases that are part of the official’s or employee’s state duties. ITEM 4. Rescind subrule 6.11(1). ITEM 5. Renumber subrules 6.11(2) to 6.11(8) as 6.11(1) to 6.11(7). ITEM 6. Amend renumbered subrule 6.11(2) as follows: 6.11(2) Request for consent. An official’s or employee’s request for an agency’s consent to the sale or lease of goods, real estate, or services shall comply with all of the following: a. The request shall be in writing and shall be filed with the official’s or employee’s agency at least 20 calendar days in advance of the proposed sale or lease of any goods, real estate, or services. b. The request shall include all of the following: (1) The name of the individual, association, or corporation to which the goods, real estate, or services are to be sold or leased; (2) The relationship of the individual, association, or corporation to the agency; (3) A description of the goods, real estate, or services; (4) The date or dates that the goods, real estate, or services will be delivered; and (5) A statement by the official or employee explaining how the proposed sale or lease of the goods, real estate, or services will not violate the provisions of Iowa Code section 68B.4 or create a conflict of interest under Iowa Code section 68B.2A. ITEM 7. Amend renumbered subrule 6.11(3) as follows: 6.11(3) Agency guidelines. Iowa Code section 68B.4 and the guidelines in this subrule shall be the sole legal authorities to be used by an agency in considering the granting of consent. In determining whether to grant consent, the agency shall take the following guidelines into consideration: a. The official or employee seeking consent is not the person with the authority to determine whether consent should be granted. b. The duties and functions performed by the official or employee seeking consent are not related to the regulatory authority of the agency over the individual, association, or corporation to which the goods, real estate, or services will be sold or leased. c. The selling or leasing of the goods, real estate, or services does not affect the official’s or employee’s duties or functions at the agency. d. The selling or leasing of the goods, real estate, or services will not cause the official or employee to advocate on behalf of the individual, association, or corporation to the agency. e. The selling or leasing of the goods, real estate, or services does not cause the official or employee to sell or lease goods, real estate, or services to the agency on behalf of the individual, association, or corporation. f. The selling or leasing of the goods, real estate, or services will not result in a conflict of interest as provided in Iowa Code section 68B.2A. g. The request complies with the procedural requirements of subrule 6.11(3)6.11(2). h. A regulatory agency may grant blanket consent for sales or leases to classes of individuals, associations, or persons when such blanket consent is consistent with subrule 6.11(4)6.11(3) and the granting of single consents is impractical or impossible to determine.These guidelines shall be publicized and made known to all personnel throughout the agency.ARC 5904CHuman Services Department[441]Notice of Intended ActionProposing rule making related to medical assistance eligibility and payment and providing an opportunity for public comment
The Human Services Department hereby proposes to amend Chapter 75, “Conditions of Eligibility,” and Chapter 80, “Procedure and Method of Payment,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 249A.3.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 249A.3.Purpose and Summary The Department is aligning administrative rules with current policy and federal regulations in several areas. The proposed rules:
Proposing rule making related to provider rates and fee schedules and providing an opportunity for public comment
The Human Services Department hereby proposes to amend Chapter 78, “Amount, Duration and Scope of Medical and Remedial Services,” Chapter 79, “Other Policies Relating to Providers of Medical and Remedial Care,” and Chapter 83, “Medicaid Waiver Services,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 249A.4 and 2021 Iowa Acts, House File 891, section 32.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 249A.4.Purpose and Summary As part of the 2021 Legislative Session, 2021 Iowa Acts, House File 891, appropriates funds to increase specific provider reimbursement rates. The proposed amendments to Chapter 78, 79 and 83 do the following:
Proposing rule making related to frequency of game nights and providing an opportunity for public comment
The Inspections and Appeals Department hereby proposes to amend Chapter 100, “General Provisions for Social and Charitable Gambling,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 99B.2.State or Federal Law Implemented This rule making implements, in whole or in part, 2021 Iowa Acts, House File 311.Purpose and Summary The proposed amendment to Chapter 100 implements 2021 Iowa Acts, House File 311. The legislation modifies the frequency of game nights conducted by licensed qualified organizations.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 481—Chapter 6. Public Comment Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Department no later than 4:30 p.m. on September 28, 2021. Comments should be directed to: Sara Throener Iowa Department of Inspections and Appeals Lucas State Office Building 321 East 12th Street Des Moines, Iowa 50319 Email: Sara.Throener@dia.iowa.gov Public Hearing No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making action is proposed:
ITEM 1. Amend rule 481—100.2(99B) as follows:481—100.2(99B) Licensure. Gambling shall only occur upon receipt of a license issued by the department. The license shall be prominently displayed at the gambling location. 100.2(1) Types of gambling licenses—qualified organizations. A qualified organization (QO), as defined in Iowa Code section 99B.1(26), may apply for the six following license types, each of which permits the activities listed. A QO with a two-year QO license may also apply for a seventh license type, a very large raffle license.License type/Activity typeTwo-year QOOne-year QO180-day QO90-day QO14-day QOBingo at a fair or festivalBingoThree occasions per week; 15 occasions per monthNoNoNoTwo occasionsOne occasion per day for length of fair or festivalGames of skill and chanceUnlimited carnival-style gamesNoNoNoUnlimited carnival-style gamesNoGame nightOne per calendar yearmonthOne per calendar yearmonthOne per calendar yearmonthOne per calendar yearmonthOne per calendar yearmonthNoVery small and small rafflesUnlimitedUnlimitedUnlimitedUnlimitedUnlimitedNoLarge rafflesOne per calendar yearEight per license period, each conducted in a different countyOne per calendar yearOne per calendar yearOne per calendar yearNoVery large rafflesOne per calendar year, requires additional very large raffle licenseOne per calendar year, requires additional very large raffle licenseNoNoNoNoElectronic rafflesOne small raffle per day; one large raffle per calendar yearNoNoNoNoNo 100.2(2) Other types of gambling licenses. There are four other types of gambling licenses: a. One-year license for an amusement concession. b. Two-year license for social gambling in beer and liquor establishments. c. Two-year license for social gambling in public places. d. Annual license for manufacturers and distributors of bingo equipment and supplies or electronic raffle systems. 100.2(3) Political action committees ineligible. Political action committees are not qualified organizations as defined in Iowa Code section 99B.1(26) and are not eligible for gambling licenses.ARC 5885CRevenue Department[701]Notice of Intended ActionProposing rule making related to appeals of the rejection of an assessor appointment or reappointment and providing an opportunity for public comment
The Revenue Department hereby proposes to amend Chapter 7, “Practice and Procedure Before the Department of Revenue,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 421.14 and 441.6(3).State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 441.6(3) and chapter 17A.Purpose and Summary This proposed rule making is intended to implement and clarify procedures for appeals of the Director of Revenue’s rejection of an assessor appointment or reappointment under Iowa Code section 441.6(3). This rule making alters the existing appeal procedures to clarify that the Director of Revenue is the presiding officer in contested cases under rule 701—7.37(441). Additionally, this rule making clarifies cross-references to the Department’s rule regarding contested cases before the Department.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A). Public Comment Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on September 28, 2021. Comments should be directed to: Nick Behlke Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.336.9025 Email: nick.behlke@iowa.gov Public Hearing No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making action is proposed:
ITEM 1. Amend rule 701—7.37(441) as follows:701—7.37(441) Appeals of director’s confirmation decision regarding conference boardrejection of assessor appointment or reappointment of assessor. 7.37(1) Appeal processWritten request for appeal. Any assessor or conference board wishing to contest the director’s rejection of the conference board’s appointment or reappointment of an assessor under 701—subrule 72.15(4) orreappointment of an assessor under 701—subrule 72.16(3) shall file an appeal, in writing, within 30 days of the director’s notice of decision. Any person who does not seek an appeal within 30 days of the director’s notice shall be precluded from challenging the director’s decision. Appeals will be governed by the procedures set forth in this rule together with the process set forth in the following rules: rule 701—7.8(17A), excluding the first sentence of the introductory paragraph of 701—7.8(17A) and excluding subrules 7.8(1) to 7.8(7); subrules 7.8(8) and 7.8(9); subrule 7.8(10), except the clerk of the hearings section will file the protest file to the division of administrative hearings within ten days; subrules 7.9(1) and 7.9(2); rule 701—7.10(17A); paragraphs 7.11(2)“d” and “e”; subrules 7.12(2) to 7.12(4); subrules 7.12(7) and 7.12(8); rule 701—7.13(17A); rule 701—7.14(17A); rule 701—7.15(17A); rule 701—7.16(17A); subrules 7.17(1) to 7.17(7); subrule 7.17(8), except paragraph 7.17(8)“b” related to costs shall not apply; additionally, Iowa Code section 421.60(4) shall not apply; subrules 7.17(9) and 7.19(10); subrules 7.17(13) and 7.17(14); rule 701—7.18(17A); rule 701—7.19(17A); rule 701—7.20(17A); rule 701—7.21(17A); and rule 701—7.22(17A). 7.37(2) Procedures. Appeals will be governed by the procedures set forth in this rule together with the procedures set forth in the following rules: a. The introductory paragraph of rule 701—7.8(17A), excluding the first sentence of the introductory paragraph of rule 701—7.8(17A); and subrules 7.8(8) and 7.8(9); b. Subrules 7.9(1) and 7.9(2); c. Rule 701—7.10(17A); d. Paragraphs 7.11(2)“d” and “e”; e. Subrules 7.12(2) to 7.12(4); f. Rule 701—7.13(17A); g. Rule 701—7.14(17A); h. Rule 701—7.15(17A); i. Rule 701—7.16(17A); j. Subrule 7.17(1); subrules 7.17(3) through 7.17(7); subrule 7.17(8), except paragraph 7.17(8)“b” related to costs shall not apply; additionally, Iowa Code section 421.60 shall not apply; subrules 7.17(9), 7.17(10), and 7.17(14); k. Rule 701—7.18(17A); l. Rule 701—7.19(17A); m. Rule 701—7.20(17A); n. Rule 701—7.21(17A); and o. Rule 701—7.22(17A). 7.37(3) Presiding officer. The director shall be the presiding officer in a contested case under this rule. The director may request that an administrative law judge assist and advise the director with any matters related to the contested case proceedings, including but not limited to ruling on any prehearing matters, presiding at the contested case hearing, and issuing orders and rulings. 7.(2) 7.37(4) Contentsof the appeal. The appeal shall contain the following in separate numbered paragraphs: a. A statement of the department action giving rise to the appeal. b. The date of the department action giving rise to the appeal. c. Each error alleged to have been committed, listed as a separate paragraph. For each error listed, an explanation of the error and all relevant facts related to the error shall be provided. d. Reference to the particular statutes, rules, or agreement terms, if known. e. References to and copies of any documents or other evidence relevant to the appeal. f. Any other matters deemed relevant to the appeal. g. A statement setting forth the relief sought. h. The signature, mailing address, and telephone number of the person or that person’s representative. 7.(3) 7.37(5) Burden of proof. The burden of proof is on the party challenging the director’s decision under 701—subrule 72.15(4) or 72.16(3). This rule is intended to implement Iowa Codesection 441.6(3) and chapter 17A.ARC 5884CRevenue Department[701]Notice of Intended ActionProposing rule making related to nonresident and part-year resident credit and providing an opportunity for public comment
The Revenue Department hereby proposes to amend Chapter 42, “Adjustments to Computed Tax and Tax Credits,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 422.68.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 422.5.Purpose and Summary This proposed rule making relates to the Iowa individual income tax credit used to apportion a nonresident’s or part-year resident’s income among Iowa and other jurisdictions. The primary objective of the amendments is to modify the Iowa income percentage used to calculate the credit so that the percentage is computed to the nearest ten-thousandth of a percent (i.e., four digits to the right of the decimal point) for tax years beginning on or after January 1, 2022. Under the current rules, the Iowa income percentage is computed to the nearest tenth of a percent (i.e., one digit to the right of the decimal point). This change will result in more accurate credit calculations and will create more uniformity under the Iowa income tax because corporations and other business entities apportion their income using a business activity ratio that is calculated to the nearest ten-thousandth of a percent. The amendments also make a number of changes to improve clarity and readability of the rules and to update or remove outdated language or outdated year or form references.Fiscal Impact The change to the credit calculation is expected to result in a minimal increase or decrease to General Fund revenues. The total impact is expected to be less than $100,000 each year.Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).Public Comment Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on September 28, 2021. Comments should be directed to: Michael Mertens Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.587.0458 Email: michael.mertens@iowa.gov Public Hearing If requested, a public hearing at which persons may present their views orally or in writing will be held as follows: September 29, 2021 9 to 10 a.m. Via video/conference call Persons who wish to participate in the video/conference call should contact Michael Mertens before 4:30 p.m. on September 28, 2021, to facilitate an orderly hearing. A conference call number will be provided to participants prior to the hearing. Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs.Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making action is proposed:
ITEM 1. Amend rule 701—42.5(422) as follows:701—42.5(422) Nonresident and part-year resident credit. For tax years beginning on or after January 1, 1982, anAn individual who is a nonresident of Iowa for the entire tax year, or an individual who is an Iowa resident for a portion of the tax year, is allowed a credit against the individual’s Iowa income tax liability for the Iowa income tax on the portion of the individual’s income which was earned outside Iowa while the person was a nonresident of Iowa. This credit is computed on Schedule IA 126, which is included in the Iowa individual income tax booklet. The following subrules clarifyexplain how the nonresident and part-year resident credit is computed fortaxpayers who are nonresidents of Iowa and taxpayers who are part-year residents of Iowa during the tax year. 42.5(1) Nonresident/part-year resident creditCredit calculation for nonresidents of Iowa. a. APrior to the calculation of the nonresident credit, a nonresident of Iowa shall complete the Iowa individual return in the same way an Iowa resident completes the form by reporting the individual’s total net income, including income earned outside Iowa, on the front of the IA 1040 return form. A nonresident individual is allowed the same deduction for federal income tax and the same itemized deductions as an Iowa resident taxpayer with identical deductions for these expenditurescompute taxable income in the same manner as a full-year Iowa resident. Thus, a nonresident with a taxable income of $40,000 would have the same initial Iowa income tax liability as afull-year Iowa resident taxpayer with a taxable income of $40,000with the same taxable income before the nonresident/part-year resident credit is computed. b. The nonresident/part-year resident credit is computed on Schedule IA 126. The lines referred to in this subrule are from Schedule IA 126 and Form IA 1040 for the 2008 tax year. Similar lines on the schedule and form may apply for subsequent tax years. The individual’s Iowa source net income from lines 1 through 25 of the schedule is totaled on line 26 of the schedule. If the nonresident’s Iowa source net income is less than $1,000, the taxpayer is not subject to Iowa income tax and is not required to file an Iowa income tax return for the tax year. However, if the Iowa source net income amount is $1,000 or more, the Iowa source net income is then divided by the person’s all source net income on line 27 of Schedule IA 126 to determine the percentage of the Iowa net income to all source net incomeby dividing the taxpayer’s Iowa source net income by the taxpayer’s total net income.See 701—Chapter 40 to determine a nonresident’s Iowa source net income and total net income. This Iowa income percentage, which is rounded to the nearest tenth of a percent, is inserted on line 28 of the schedule, and this(e.g., 1.2 percent) for tax years beginning before January 1, 2022, and to the nearest ten-thousandth of a percent (e.g., 1.2345 percent) for tax years beginning on or after January 1, 2022. The Iowa income percentage is then subtracted from 100 percent to arrive at the nonresident/part-year resident credit percentage or the, which represents the percentage of the individual’s total income which was earned outside Iowa. The nonresident/part-year resident credit percentage is entered on line 29 of Schedule IA 126. The Iowa income tax on total income from line 43 of the IA 1040 is entered on line 30 of Schedule IA 126. The total of nonrefundable credits from line 49 of the IA 1040 is then shown on line 31 of Schedule IA 126. The amount on line 31 is subtracted from the amount on line 30, which results in the Iowa total tax after nonrefundable credits, which is entered on line 32. This Iowa tax-after-credits amount is multiplied by the nonresident/part-year resident credit percentage from line 29net Iowa tax to compute the nonresident/part-year resident credit. The amount of the credit is inserted on line 33 of Schedule IA 126 and on line 51 of the IA 1040.For purposes of this subrule, “net Iowa tax” means the Iowa regular income tax after reduction for the nonrefundable credits provided in Iowa Code section 422.12.The Iowa tax from line 43 of the IA 1040before reduction for the nonrefundable credits under Iowa Code section 422.12 is $1,508. The total nonrefundable credit from line 49 isThe individual is allowed an exemption credit under Iowa Code section 422.12 of $40, which leaves a tax amount of $1,468 when the credit is subtracted from $1,508($1,508 - $40). When $1,468 is multiplied by the nonresident/part-year resident credit percentage of 62.562.5000, a nonresident credit of $918 is computed which is entered on line 33 of Schedule IA 126 as well as on line 51 of the IA 1040 for 2008.The taxpayers’ taxable income on their joint Iowa return was $70,000. The taxpayers had an Iowa income tax liability of $4,583 after application of the personal exemption credits of $80under Iowa Code section 422.12. The taxpayers had an Iowa sourcenet income of $20,000 and an all sourcea total net income of $100,000. Therefore, the Iowa income percentage was 2020.0000. Subtracting the Iowa income percentage of 20 percent from 100 percent leaves a nonresident/part-year resident credit percentage of 8080.0000.When the Iowa income tax liability of $4,583 is multiplied by 80 percent, this results in a nonresident/part-year resident credit of $3,666. This credit amount is entered on line 33 of the Schedule IA 126 and on line 51 of Form IA 1040. 42.5(2) Nonresident/part-year resident creditCredit calculation for part-year residents of Iowa. a. AnPrior to the calculation of the part-year resident credit, an individual who is a resident of Iowa for part of the tax year shall complete the front of the IA 1040 income tax return form as a resident taxpayer by showing the taxpayer’s total income, including income earned outside Iowa, on the front of the IA 1040 return form. A part-year resident of Iowa is allowed the same federal tax deduction and itemized deductions as a resident taxpayer who has paid the same amount of federal income tax and has paid for the same deductions that can be claimed on Schedule A in the tax yearcompute taxable income in the same manner as a full-year Iowa resident. Therefore, a part-year resident would have the same initial Iowa income tax liability as ana full-year Iowa resident with the same taxable income before computation of the nonresident/part-year resident credit. b. The nonresident/part-year resident credit for a part-year resident is computed on Schedule IA 126. The lines referred to in this subrule are from the IA 1040 income tax return form and the Schedule IA 126 for 2008. Similar lines may apply for tax years after 2008. The individual’s Iowa source income is totaled on line 26 of Schedule IA 126 and includesby adding all the individual’snet income received while the taxpayer was a resident of Iowa and all the Iowa sourcenet income received during the period of the tax year when the individual was a resident of a state other than Iowa. Iowa source income includes, but is not limited to, wages earned in Iowa while a resident of another state as well as income from Iowa farms and other Iowa businesses that was earned during the portion of the year that the taxpayer was a nonresident of Iowa. In the case of interest from a part-year resident’s account at an Iowa financial institution, only interest earned during the period of the individual’s Iowa residence is Iowa source income unless the account is for an Iowa business. If the part-year resident’s account at a financial institution is for an Iowa business, all interest earned in the year by the part-year resident from the account is taxable to Iowa.Income earned outside Iowa by the part-year resident during the portion of the year the individual was an Iowa resident is taxable to Iowa and is part of the individual’s Iowa source income. To compute the nonresident/part-year resident credit for a part-year resident, the taxpayer’s Iowa source income on Schedule IA 126 is totaled. If the Iowa source income is less than $1,000, the taxpayer is not subject to Iowa income tax and is not required to file an Iowa return. If the Iowa source income is $1,000 or more, it is divided by the taxpayer’s all source net income on line 27 of Schedule IA 126nonresident of Iowa, and dividing that sum by the taxpayer’s total net income. See 701—Chapter 40 to determine a part-year resident’s Iowa source net income and total net income. The percentage computed by this procedure is the Iowa income percentage and is entered on line 28 of the Schedule IA 126. TheThis Iowa income percentage, which is rounded to the nearest tenth of a percent,(e.g., 1.2 percent) for tax years beginning before January 1, 2022, and to the nearest ten-thousandth of a percent (e.g., 1.2345 percent) for tax years beginning on or after January 1, 2022. The Iowa income percentage is then subtracted from 100 percent to arrive at the nonresident/part-year resident credit percentage, which is entered on line 29 of Schedule IA 126. The Iowa tax from line 43 of the IA 1040 is then shown on line 30 of Schedule IA 126. The total of the Iowa nonrefundable credits from line 49 of the IA 1040 is entered on line 31 of Schedule IA 126 and is subtracted from the Iowa tax amount on line 30. The tax-after-credits amount on line 32 is next multiplied by the nonresident/part-year resident credit percentage from line 28. The amount calculated from this procedure is the nonresident/part-year resident credit, which is shown on line 33 of Schedule IA 126 and on line 51 of Form IA 1040represents the percentage of the individual’s total income which was earned outside of Iowa while a nonresident. The part-year resident credit percentage is multiplied by the net Iowa tax to compute the part-year resident credit. For purposes of this subrule, “net Iowa tax” means the Iowa regular income tax after reduction for the nonrefundable credits provided in Iowa Code section 422.12.The part-year resident’s all sourcetotal net income was $58,500 and the Iowa source net income was $34,300, which includes the Iowa wages, the Nebraska ranch income of $4,000 earned during the individual’s period of Iowa residence, as well as the interest income of $300 earned during that time of the tax year. The Iowa taxable income for the part-year resident for 20082022 was $44,500, which included the federal income tax deduction of $11,000 and itemized deductions of $3,000due to allowable deductions of $14,000 ($58,500 - $14,000). The individual’s Iowa income percentage was 58.658.6325, which was determined by dividing the Iowa source income of $34,300 by the all sourcetotal income of $58,500. Subtracting the Iowa income percentage of 58.658.6325 from 100 percent results in a nonresident/part-year resident credit percentage of 41.441.3675. The Iowa tax on total income was $2,529, which was reduced to $2,489 after subtraction of the personal exemption credit of $40under Iowa Code section 422.12.When $2,489 is multiplied by the nonresident/part-year resident percentage of 41.441.3675, a nonresident/part-year resident credit of $1,030 is computed for this part-year resident.The part-year resident’s all sourcetotal net income was $44,000 and the Iowa sourcenet income was $32,000, which consisted of $15,000 in wages, $2,000 in interest income, and $15,000 in income from the Iowa farm. Since the farm was in Iowa, theall farm income received in the first half of 2008, including the income received while the individual was not a resident of Iowa, was taxable to Iowa as well as the farm income received while the individual was an Iowa resident. The individual’s Iowa taxable income was $34,250, which was computed after subtracting the federal income tax deduction of $8,000 and a standard deduction of $1,750$9,750 in allowable deductions ($44,000 - $9,750). The taxpayer’s Iowa income tax liability was $1,757 after subtraction of a personal exemption credit of $40under Iowa Code section 422.12.The taxpayer’s Iowa income percentage was 72.772.7273, which was computed by dividing the Iowa sourcenet income of $32,000 by the all sourcetotal net income of $44,000. The nonresident/part-year resident credit percentage was 27.327.2727, which was arrived at by subtracting the Iowa income percentage of 72.772.7273 from 100 percent. The taxpayer’s nonresident/part-year resident credit is $480$479. This was determined by multiplying the Iowa income tax liability after personal exemption credit amount of $1,757 by the nonresident/part-year resident percentage of 27.327.2727. This rule is intended to implement Iowa Code section 422.5.ARC 5886CRevenue Department[701]Notice of Intended ActionProposing rule making related to out-of-state tax credit and providing an opportunity for public comment
The Revenue Department hereby proposes to amend Chapter 42, “Adjustments to Computed Tax and Tax Credits,” and Chapter 89, “Fiduciary Income Tax,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 422.68.State or Federal Law Implemented This rule making implements, in whole or in part, 2020 Iowa Acts, House File 2641.Purpose and Summary This proposed rule making relates to the Iowa out-of-state tax credit against regular Iowa income tax for income tax paid to other jurisdictions on a resident individual’s or fiduciary’s income that is also taxed by Iowa. The primary purpose of these amendments is to implement 2020 Iowa Acts, House File 2641, division XVII. That legislation modified the out-of-state tax credit to allow a resident partner, shareholder, or beneficiary to claim certain entity-level income taxes owed and paid by a partnership, S corporation, estate, or trust (i.e., a “pass-through entity”) in another jurisdiction in the calculation of the resident’s out-of-state tax credit. That legislation also allowed a resident shareholder of a regulated investment company (e.g., mutual fund) to claim certain entity-level foreign income taxes owed and paid by the regulated investment company in the calculation of the resident’s out-of-state tax credit. In general, the amendments provide that resident individuals and fiduciaries who are direct or indirect members of a pass-through entity may include in the calculation of the out-of-state tax credit their pro rata share of entity-level income tax owed and paid by such pass-through entity in another qualifying jurisdiction if the income tax would otherwise qualify for inclusion in the calculation of the out-of-state tax credit, had it been imposed on and paid by the resident, and if the pass-through entity provides certain statements to the resident and to other intermediate pass-through entities in the case of indirect ownership. The amendments also provide rules for regulated investment companies and their resident shareholders. The amendments also significantly update, rewrite, or expand other parts of the out-of-state tax credit rule not directly impacted by 2020 Iowa Acts, House File 2641, in order to provide more guidance to taxpayers on the application of the credit. These amendments provide relevant definitions and describe the general application of the credit, the calculation of the credit including the maximum credit calculation, other limitations and considerations for the credit, and supporting documentation required for the taxpayer to prove eligibility for the credit and credit amount. Finally, the amendments modify the Iowa income percentage used to calculate the maximum credit so that it is computed to the nearest ten-thousandth of a percent (i.e., four digits to the right of the decimal point) for tax years beginning on or after January 1, 2022. Under current rules, the Iowa income percentage is computed to the nearest tenth of a percent (i.e., one digit to the right of the decimal point). This change will result in more accurate credit calculations and will create more uniformity under the Iowa income tax because corporations and other business entities apportion their income using a business activity ratio that is calculated to the nearest ten-thousandth of a percent.Fiscal Impact Modifying the maximum credit calculation to compute to the nearest ten-thousandth of a percent instead of the nearest tenth of a percent is expected to result in a minimal increase or decrease to General Fund revenues. The total impact is expected to be less than $100,000 each year. Apart from that change, this rule making has no fiscal impact to the State of Iowa beyond the legislation it is intended to implement. The final fiscal note for 2020 Iowa Acts, House File 2641, division XVII, estimated that the out-of-state tax credit changes enacted in that legislation will reduce General Fund revenues in fiscal years 2021 through 2025 by $4.2 million, $4.2 million, $4.3 million, $4.3 million, and $4.4 million, respectively.Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).Public Comment Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on September 28, 2021. Comments should be directed to: Michael Mertens Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.587.0458 Email: michael.mertens@iowa.gov Public Hearing If requested, a public hearing will be held as follows: September 29, 2021 11 a.m. to 12 noon Via video/conference call Persons who wish to participate in the video/conference call should contact Michael Mertens before 4:30 p.m. on September 28, 2021, to facilitate an orderly hearing. A conference call number will be provided to participants prior to the hearing. Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs.Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:
ITEM 1. Rescind rule 701—42.6(422) and adopt the following new rule in lieu thereof:701—42.6(422) Out-of-state tax credits. 42.6(1) Definitions. For purposes of this rule: "Foreign country" means any country, other than the United States, and any political subdivision of that country. "Income tax" means any direct tax imposed upon a taxpayer and measured by the taxpayer’s income for a specified period of time. The out-of-state jurisdiction’s characterization of the tax is not controlling in the department’s determination of whether a tax is an income tax. Fees, penalty, and interest paid in connection with an income tax do not qualify. For purposes of this rule, the term “income tax” does not include a minimum tax imposed on preference items. "Pass-through entity" means an entity taxed as a partnership for federal tax purposes, an S corporation, an estate, or a trust other than grantor trusts. "Regulated investment company" means any domestic corporation that meets the requirements of Section 851 of the Internal Revenue Code and that has made a valid election under Section 853 of the Internal Revenue Code to have its shareholders’ pro rata share of entity-level income tax paid by the electing corporation be deemed to have been paid by its shareholders. The term “regulated investment company” includes, but is not limited to, a mutual fund. "State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any political subdivision thereof. "Tiered owner" means an owner or beneficiary of a pass-through entity that is itself a pass-through entity. 42.6(2) General application. a. Residents.Iowa residents, including part-year residents, are allowed an out-of-state tax credit against the resident’s Iowa income tax liability for income taxes owed and paid by the resident to another state or foreign country on income for which all of the following are true: (1) The income was derived from sources within the other state or foreign country. In determining whether income is derived from sources within that other state or foreign country, Iowa statutes and rules on the sourcing of a nonresident’s income shall govern. (2) The income is subject to Iowa income tax. Income tax imposed by another state or foreign country on income that is not subject to Iowa income tax does not qualify for the credit. (3) The income was earned while the taxpayer was an Iowa resident and is included on the resident’s Iowa income tax return. The credit is allowable only if the taxpayer files an Iowa income tax return as a resident or part-year resident. b. Nonresidents.Nonresidents of Iowa shall not claim the out-of-state tax credit. 42.6(3) Rule for pass-through entities. a. Direct owners. (1) If the Iowa resident is a direct partner, shareholder, or beneficiary of a pass-through entity that owed and paid entity-level income tax, or income tax on a composite return basis, to another state or foreign country on income derived from sources in that state or foreign country, the resident is allowed to treat the resident’s pro rata share of that income tax as paid by the resident for purposes of the out-of-state tax credit, provided the resident’s pro rata share of that income flows through to the resident and meets the requirements of paragraph 42.6(2)“a.” (2) The entity-level income tax or composite income tax paid to the other state or foreign country is the net state or foreign income tax actually owed and paid for the tax year on income taxed by that state or foreign country, as properly computed on the pass-through entity’s income tax return or composite return (not a withholding return) in the other state or foreign country after reduction for all nonrefundable credits provided to the pass-through entity. Paragraph 42.6(6)“b” provides an additional limitation if the Iowa resident receives a refundable credit in the other state or foreign country for the Iowa resident’s share of the income tax owed and paid by the pass-through entity. The resident’s pro rata share of entity-level income tax or composite income tax paid by the pass-through entity shall be in the same proportion as the resident’s pro rata share of income derived from sources in that state or foreign country, as properly reported on the entity’s return in the other state or foreign country. (3) To qualify, the pass-through entity must provide to the resident a statement identifying the jurisdiction and the resident’s pro rata share of the income, income tax liability, and income tax paid in that jurisdiction. b. Indirect owners. (1) If the Iowa resident is an indirect partner, shareholder, or beneficiary of a pass-through entity that paid entity-level income tax, or income tax on a composite return basis, to another state or foreign country on income derived from sources in that state or foreign country, the resident is allowed to treat the resident’s pro rata share of that income tax as paid by the resident for purposes of the out-of-state tax credit if both of the following requirements are satisfied: 1. The tiered owner reduces the amount of the paying pass-through entity’s income tax that the tiered owner reports to its partners, shareholders, or beneficiaries by the amount of any credit available from that other state or foreign country to the tiered owner for the tax liability of the paying pass-through entity. 2. The resident’s pro rata share of that income flows through one or more tiered owners to the resident and meets the requirements of paragraph 42.6(2)“a.” (2) The entity-level income tax or composite income tax paid to the other state or foreign country is the net state or foreign income tax actually owed and paid for the tax year on income taxed by that state or foreign country, as properly computed on the pass-through entity’s income tax return or composite tax return (not a withholding return) in the other state or foreign country, after reduction for all nonrefundable credits provided to the pass-through entity, and after further reduction by a tiered owner for any credits provided by that other state or foreign country to the tiered owner for the tax liability of the paying pass-through entity. Paragraph 42.6(6)“b” provides an additional limitation if the Iowa resident receives a refundable credit in the other state or foreign country for the Iowa resident’s share of the income tax owed and paid by a pass-through entity. The resident’s pro rata share of entity-level income tax or composite income tax paid by the pass-through entity shall be in the same proportion as the resident’s pro rata share of income derived from sources in that state or foreign country, as properly reported on the entity’s return in the other state or foreign country, after flowing through one or more tiered pass-through entities to the resident. (3) To qualify, the paying pass-through entity must provide to the tiered owner a statement identifying the jurisdiction and the tiered owner’s pro rata share of the income, income tax liability, and income tax paid in that jurisdiction. The tiered owner, in turn, must provide the indirect partner, shareholder, or beneficiary with a statement that includes all of the following information: 1. The jurisdiction to which income tax was paid; the paying pass-through entity and any other tiered owner through which the income flowed; and the indirect partner’s, shareholder’s, or beneficiary’s pro rata share of the paying pass-through entity’s income. 2. The indirect partner’s, shareholder’s, or beneficiary’s pro rata share of the paying pass-through entity’s income tax liability and income tax paid to the other jurisdiction after reduction for any credit available to the tiered owner for the tax liability of the paying pass-through entity. If no such credit was provided to the tiered owner, the statement must include a declaration from the tiered owner to that effect. 42.6(4) Rule for regulated investment companies. If the Iowa resident is a shareholder of a regulated investment company making an election under Section 853 of the Internal Revenue Code, the resident shareholder is allowed an out-of-state tax credit for the resident shareholder’s pro rata share of entity-level income tax paid to a foreign country or possession of the United States by the regulated investment company and treated as paid by the resident shareholder under Section 853 of the Internal Revenue Code if the income taxed by the foreign country or possession of the United States is also subject to tax in Iowa and is included on the resident shareholder’s Iowa income tax return as earned while an Iowa resident. To qualify, the regulated investment company must provide to the resident shareholder a statement identifying the jurisdiction and the resident shareholder’s pro rata share of the income, income tax liability, and income tax paid in that jurisdiction. 42.6(5) Computing the out-of-state tax credit—preliminary calculation. a. Required form.The tax credit must be computed on the IA 130, Iowa Out-of-State Tax Credit Schedule. Married taxpayers filing separate Iowa returns, or filing separately on a combined Iowa return, must complete a separate IA 130 for each spouse. b. Computed separately by jurisdiction.The tax credit must be computed separately for each out-of-state jurisdiction. A separate IA 130 is required for each out-of-state jurisdiction. However, separate computations and separate IA 130s are not required for foreign income taxes paid by a regulated investment company. c. Computed separately by income tax type.The tax credit must be computed separately for regular income tax and special lump-sum distribution tax. If the taxpayer was assessed a special tax on a lump-sum distribution by another state or foreign country, compute the tax credit separately under these rules using only the lump-sum distribution and lump-sum distribution tax imposed in Iowa and imposed in the other state or foreign country. A lump-sum distribution taxed by another state or foreign country shall not be included as part of gross income. A minimum tax or income tax imposed on preference items derived from sources in another state or foreign country are not eligible for the out-of-state tax credit under this rule. For rules on the out-of-state tax credit with respect to minimum tax paid, see rule 701—42.7(422). d. Full-year Iowa residents.For a taxpayer who is an Iowa resident for the entire tax year, the income tax paid to the other state or foreign country is the sum of the following amounts: (1) Income tax treated as paid by the resident under subrules 42.6(3) and 42.6(4). The income tax shall be treated as paid by the resident for the tax year that the out-of-state pass-through income is considered taxable Iowa income to the resident. (2) The net state or foreign income tax actually owed and paid by the resident for the tax year on income qualifying under paragraph 42.6(2)“a,” as properly computed on the resident’s income tax return in the other state or foreign country, less all nonrefundable credits provided to the resident, and less any refundable credits provided to the resident for entity-level income taxes or composite income taxes paid by a pass-through entity. See Example 5 below. e. Part-year Iowa residents.A taxpayer who is a part-year resident of Iowa may only claim the out-of-state tax credit against the taxpayer’s Iowa income tax liability for income tax paid to another state or foreign country on income qualifying under paragraph 42.6(2)“a” that is earned during the period of the tax year that the taxpayer was an Iowa resident. The income tax paid to the other state or foreign country is the sum of the following amounts: (1) Income tax treated as paid by the resident under subrules 42.6(3) and 42.6(4) on income earned during the period of the tax year that the taxpayer was an Iowa resident. The income tax shall be treated as paid by the resident for the tax year that the out-of-state pass-through income is considered taxable Iowa income. (2) The net state or foreign income tax actually owed and paid by the taxpayer for the tax year on income qualifying under paragraph 42.6(2)“a” that was earned during the period of the tax year that the taxpayer was an Iowa resident, as properly computed on the resident’s income tax return in the other state or foreign country, less all nonrefundable credits provided to the resident, and less any refundable credits provided to the resident for entity-level income taxes or composite income taxes paid by a pass-through entity. See Example 6 below. 42.6(6) Computing the out-of-state tax credit—additional limitations and considerations. a. Maximum credit.The out-of-state tax credit cannot exceed the amount of Iowa income tax that would have been imposed on the same income which was taxed by the other state or foreign country. The maximum out-of-state tax credit must be computed according to the formula in this paragraph. If gross income is subject to tax in a jurisdiction at more than one level (i.e., at the pass-through entity level and at the individual level), it shall only be counted once for purposes of computing the maximum credit. (1) Full-year Iowa residents. Gross income qualifying under paragraph 42.6(2)“a” and taxed by the other state or foreign country shall be divided by the total gross income of the Iowa resident taxpayer. This quotient, multiplied by the net Iowa tax as determined on the total gross income of the taxpayer as if entirely earned in Iowa, shall be the maximum tax credit. For tax years beginning before January 1, 2022, this quotient shall be computed as a percentage rounded to the nearest tenth of a percent (e.g., 1.2 percent). For tax years beginning on or after January 1, 2022, this quotient shall be computed as a percentage rounded to the nearest ten-thousandth of a percent (e.g., 1.2345 percent). For purposes of this subparagraph, “net Iowa tax” means the Iowa regular income tax after reduction for the nonrefundable credits provided in Iowa Code section 422.12. (2) Part-year Iowa residents. Gross income qualifying under paragraph 42.6(2)“a” that was earned during the period of the tax year that the taxpayer was an Iowa resident and taxed by the other state or foreign country shall be divided by the total gross income of the Iowa taxpayer earned while an Iowa resident or otherwise sourced to Iowa. This quotient, multiplied by the net Iowa tax as determined on the total gross income of the taxpayer as if entirely earned in Iowa, shall be the maximum tax credit. For tax years beginning before January 1, 2022, this quotient shall be computed as a percentage rounded to the nearest tenth of a percent (e.g., 1.2 percent). For tax years beginning on or after January 1, 2022, this quotient shall be computed as a percentage rounded to the nearest ten-thousandth of a percent (e.g., 1.2345 percent). For purposes of this subparagraph, “net Iowa tax” means the Iowa regular income tax after reduction for the nonrefundable credits provided in Iowa Code section 422.12 and after reduction for the nonresident and part-year resident credit in rule 701—42.5(422). b. Refund attributable to credit for entity-level income tax or composite income tax paid by a pass-through entity.If the resident claims a refundable tax credit in another state or foreign country for entity-level income tax or composite income tax paid by a pass-through entity, that refundable credit reduces the resident’s income tax liability in that state or foreign country as described in subparagraphs 42.6(5)“d”(2) and 42.6(5)“e”(2). However, any refund attributable to that refundable credit also reduces the amount of income tax treated as paid by the resident under subrules 42.6(3) and 42.6(4). In computing this credit reduction, the refundable credit for entity-level income tax or composite income tax paid by a pass-through entity shall be applied on the other state’s or foreign country’s income tax return after all nonrefundable credits, but before any other refundable credit. The credit reduction is required whether the resident receives the refund or applies the amount to a different tax liability or tax period. c. Taxpayers claiming the S corporation apportionment tax credit.A taxpayer who is a shareholder of an S corporation and who has income that was apportioned outside of Iowa through a claim to the S corporation apportionment tax credit is not permitted to claim the out-of-state tax credit on the same S corporation income. Income tax paid by the resident or a pass-through entity with respect to the S corporation income shall not be included in the resident’s preliminary credit calculation in paragraph 42.6(5)“d” or “e.” Gross income from the S corporation shall not be included in the resident’s maximum credit calculation in paragraph 42.6(6)“a.” d. Married taxpayers using a different filing status in the other state or foreign country.If married taxpayers use a separate filing status in the other state or foreign country, but file jointly for Iowa tax purposes, the taxpayers must combine both spouses’ income and income tax paid in the other state or foreign country for purposes of computing the out-of-state tax credit. If married taxpayers file jointly in the other state or foreign country, but file separate Iowa returns, or separately on a combined Iowa return, the taxpayers must prorate the income tax paid in the other state or foreign country according to each spouse’s respective gross income earned in that state or foreign country. e. Tax on income that does not flow through to resident.Entity-level income tax or composite income tax paid by a pass-through entity on income that does not flow through to the Iowa resident and meet the requirements of paragraph 42.6(2)“a” does not qualify for the out-of-state tax credit. For example, a LIFO recapture tax installment paid by an S corporation in another state would not qualify because that tax is measured by the income of the entity in the last tax year it was a C corporation, when such income did not flow through to the shareholders. Also, income tax paid by a trust in another state on income not distributed to the beneficiaries would not qualify because that income did not flow through to the beneficiaries. These examples are not intended to be exhaustive. f. Recalculating credit following adjustments in the other jurisdiction.If the taxpayer or the taxpayer’s pass-through entity amends the amount of income or income tax liability reported and paid to the other state or foreign country, either through an amended return, audit, or otherwise, the taxpayer shall file an amended Iowa return and recalculate the allowable out-of-state tax credit. Any refund must be requested by the later of three years after the due date of the return, or one year after payment of the tax, as prescribed in Iowa Code section 422.73(2)“a.” Iowa law does not provide additional time to request a refund following an audit by another state or foreign country. g. Nonrefundable and nontransferable.The out-of-state tax credit cannot exceed the resident’s tax liability; thus, no amount is eligible to be carried forward to any future tax year. The credit may not be transferred to any other person. 42.6(7) Claiming the out-of-state tax credit—supporting documentation. To claim the out-of-state tax credit, the taxpayer claiming the credit must submit the following to the department with the return or upon request as indicated below: a. Out-of-state tax return.A copy of the income tax return filed with the other state or foreign country must be submitted. The department may further request a copy of the return which has been certified by the tax authority of that state or foreign country and showing thereon that the income tax assessed has been paid to them. b. Iowa income tax return.To claim the out-of-state tax credit, a taxpayer must file an Iowa income tax return for the tax year for which the credit is claimed. A taxpayer must file an Iowa income tax return to claim the out-of-state tax credit even if the taxpayer would not otherwise have an obligation to file an Iowa income tax return for the year for which the credit is claimed. c. Iowa out-of-state tax credit schedule.An IA 130, Iowa Out-of-State Tax Credit Schedule, must be submitted for the tax year for which the credit is claimed. d. Pass-through entity statements.A taxpayer who is claiming an out-of-state tax credit for entity-level income tax or composite income tax paid by a pass-through entity must submit a statement from the pass-through entity that meets the requirements of subrule 42.6(3). The pass-through entity’s actual income tax returns must be submitted to the department upon request. A taxpayer who is claiming an out-of-state tax credit for entity-level income tax paid by a regulated investment company must submit a statement from the regulated investment company that meets the requirements of subrule 42.6(4). e. Additional foreign income tax documentation.A taxpayer who is claiming the out-of-state tax credit for income taxes paid to a foreign country must provide the department with a copy of federal Form 1116, Foreign Tax Credit, if that form was required to be submitted with the taxpayer’s federal income tax return. This submission requirement does not mean that all amounts on federal Form 1116 qualify for the Iowa out-of-state tax credit. Additionally, if the income tax was paid in foreign currency, the taxpayer shall include a detailed explanation of how the taxpayer figured the conversion rate. The conversion rate is the rate of exchange in effect on the day the taxpayer paid the foreign income tax. f. Proof of payment.Upon request, the taxpayer must provide the department with a photocopy, or other similar reproduction, of either: (1) The receipt issued by the other state or foreign country for payment of the tax, or (2) The canceled check (both sides) with which the tax was paid to the other state or foreign country together with a statement of the amount and kind (e.g., wage or salary income, rental income, business income) of total income on which such tax was paid. This rule is intended to implement Iowa Code section 422.8. ITEM 2. Amend subrule 89.8(11) as follows: 89.8(11) Credits against the tax. a. The personal exemption credit.The estate of a decedent and a trust, whether simple or complex, are allowed the same credit against the tax as the credit allowed an individual taxpayer, that is currently $40. The personal exemption credit is not prorated for short taxable years. The federal exemption allowed estates and trusts under 26 U.S.C. Section 642(b), in lieu of the personal exemption for individuals, has no application to Iowa income tax. b. Credit for tax paid to another state or foreign country.Iowa Code section 422.8 grants Iowa situs trusts and estates of Iowa resident decedents, which have income derived from sources in another state or foreign country, a credit against the Iowa tax for the income tax paid to the state or foreign country where the income was derived. To be eligible for the credit, the income must have been includable for income tax purposes both in Iowa and the other state or foreign country. The credit allowable against the Iowa tax is limited to the lesser of: (1) the tax paid to the other state or foreign country on the income, or (2) the Iowa income tax paid on the foreign source income. The Iowa income tax paid on the foreign source income is computed by multiplying the Iowa computed tax, less the personal exemption credit, by a fraction of which the foreign source income included in the Iowa gross income is the numerator and the total Iowa gross income is the denominator. The resulting amount is the Iowa tax paid on foreign source income. Any tax paid to another state or foreign country in excess of the Iowa credit allowable is not refundable.The credit is computed in the same manner as a full-year resident under rules 701—42.6(422) and 701—42.7(422). Foreign situs trusts and estates of foreign decedents are not allowed a credit against the Iowa tax for the income tax paid another state or foreign country on Iowa source income. This ruleRule 701—42.6(422) as applied to an Iowa situs trust or estate is illustrated by the following example:Decedent A died a resident of Webster City, Iowa, on February 15, 1997.Decedent A at the time of death owned income-producing property both in Iowa and the state of Missouri. For the short taxable year ending December 31, 1997, A’s estate had the following income and expenses:Interest$ 5,000Dividends7,500Iowa farm income20,000Missouri farm income 10,000Iowa gross income$ 42,500Less allowable deductions 8,000Iowa taxable income$ 34,500Iowa computed tax$2,587.87 Less personal credit 40.00 Tax subject to credit for foreign taxes paid$2,547.87 Tentative credit for tax paid to Missouri$ 413.00Maximum credit$ 604.20Less credit for tax paid MissouriLesser of tentative credit or maximum credit 413.00 Iowa tax due$2,134.87 A’s estate paid $413.00 income tax to the state of Missouri on the $10,000 Missouri farm income.This is A’s tentative credit.The Iowa taxmaximum credit on the foreign source income is $604.20 computed as follows:Foreign income included in gross income $10,000×$2,547.87*=$604.20Total Iowa gross income $42,500*$2,547.87 is the Iowa computed tax less the $40.00 personal credit.The allowableout-of-state tax credit for taxes paid the state of Missouri is $413.00, because itthe $413.00 of income tax paid to Missouri (tentative credit) is less than the Iowa tax paid on the Missouri incomemaximum credit of $604.20. If the Missouri tax paid had been greater than the Iowa tax on the Missouri incomemaximum credit, the allowable credit would have been the Iowa tax on the Missouri incomemaximum credit.See 701—subrule 42.6(3) for the computation of the credit allowed Iowa resident individuals for income tax paid to another state or foreign country. c. Motor vehicle fuel tax credit.An estate or trust incurring Iowa motor vehicle fuel tax expense attributable to nonhighway uses may, in lieu of obtaining an Iowa motor vehicle fuel refund, claim as a credit against its Iowa income tax liability, the Iowa motor vehicle fuel taxes paid during the taxable year.A copy of the Iowa motor vehicle fuel tax credit Form IA 4136 must be submitted with the fiduciary return of income to substantiate the claim for credit. Any credit in excess of the income tax due shall be refunded to the estate or trust, subject to the right of offset against other state taxes owing. d. Nonresident/part-year resident credit.The nonresident/part-year resident credit is available for part-year trusts described in subrule 89.3(3) and trusts whose situs is outside Iowa. See rule 701—42.5(422) for the computation of the nonresident/part-year resident credit allowed for individuals who are either part-year residents of Iowa or nonresidents of Iowa. e. Other tax credits.All other tax credits set forth in Iowa Code chapter 422, division II, are also available for any estate or trust that meets the criteria for claiming these tax credits. For tax years beginning on or after January 1, 2013, estates and trusts with a situs in Iowa which are shareholders in S corporations which carry on business within and without Iowa can take advantage of the apportionment provisions for S corporation income set forth in 701—Chapter 50. The criteria to determine whether the S corporation is carrying on business within and without Iowa is set forth in 701—subrule 54.1(4).ARC 5883CRevenue Department[701]Notice of Intended ActionProposing rule making related to deduction of credits and providing an opportunity for public comment
The Revenue Department hereby proposes to amend Chapter 42, “Adjustments to Computed Tax and Tax Credits,” Chapter 52, “Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits,” and Chapter 58, “Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 422.68.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapter 422.Purpose and Summary This proposed rule making updates the Department’s rules that dictate the order in which Iowa income and franchise tax credits must be deducted by Iowa taxpayers. The amendments strike from the deduction list recently repealed tax credits and add newly enacted tax credits such as the Beginning Farmer Tax Credit, the Hoover Presidential Library Tax Credit, and the Renewable Chemical Production Tax Credit. Updates are also proposed to certain tax credits that have experienced a change in name, claim period, or claim procedure, or that were previously grouped together with other similar tax credits on the list. These amendments change the order of deduction for the alternative minimum tax credit in tax year 2021 for corporations and financial institutions, and in tax year 2023 for individuals, because that is the final tax year that credit may be claimed for those tax types, so the carryforward period is reduced to zero. This change will allow the alternative minimum tax credit to be claimed in 2021 or 2023, as applicable, before other tax credits with a carryforward period. These amendments also provide for the order in which tax credits carried forward from a previous tax year must be deducted. Finally, this rule making proposes a rule regarding order of deduction for tax credits claimed under the Iowa franchise tax.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A). Public Comment Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on September 28, 2021. Comments should be directed to: Michael Mertens Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.587.0458 Email: michael.mertens@iowa.gov Public Hearing If requested, a public hearing will be held as follows: September 29, 2021 10 to 11 a.m. Via video/conference call Persons who wish to participate in the video/conference call should contact Michael Mertens before 4:30 p.m. on September 28, 2021, to facilitate an orderly hearing. A conference call number will be provided to participants prior to the hearing. Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:
ITEM 1. Amend rule 701—42.44(422) as follows:701—42.44(422) Deduction of credits. 42.44(1) Sequencing of credit deductions. The credits against computed tax set forth in Iowa Code sections 422.5, 422.8, 422.10 through 422.12C,422.12N, and 422.110 shall be claimed in the following sequence: 1a. Personal exemption credit. 2b. Tuition and textbook credit. 3c. Volunteer fire fighter, volunteer emergency medical services personnel and reserve peace officer tax credit. 4d. Nonresident and part-year resident credit. e. Out-of-state tax credit. 5f. Franchise tax credit. 6g. S corporation apportionment credit. h. Alternative minimum tax credit (for tax years beginning during 2023 only). i. Historic preservation tax credit (when the taxpayer has elected that the credit be nonrefundable under Iowa Code section 404A.2(4)). 7j. School tuition organization tax credit. 8k. Venture capital tax credits (excluding redeemed Iowa fund of funds tax credit).Innovation fund investment tax credit. 9l. Endow Iowa tax credit.- Film qualified expenditure tax credit.
- Film investment tax credit.
- Redeemed Iowa fund of funds tax credit.
- Economic development region revolving fund tax credit.
- Out-of-state tax credit.
- Wage-benefits tax credit.
- Film qualified expenditure tax credit.
- Film investment tax credit.
- Redeemed Iowa fund of funds tax credit.
- Economic development region revolving fund tax credit.
- Corporate tax credit for certain sales tax paid by developer.
- Ethanol promotion tax credit.
- Wage-benefits tax credit.
Proposing rule making related to restrictions on assessors and deputy assessors assessing their own property and providing an opportunity for public comment
The Revenue Department hereby proposes to amend Chapter 71, “Assessment Practices and Equalization,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 421.14 and 441.17(2).State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 441.17(2) as amended by 2021 Iowa Acts, Senate File 366, section 76.Purpose and Summary This proposed rule making is intended to implement changes made in the 2021 Legislative Session. Specifically, 2021 Iowa Acts, Senate File 366, section 76, removes the “immediate family” component from Iowa Code section 441.17(2), which prohibits assessors and deputy assessors from assessing their own property, property the assessor or deputy assessor has a financial interest in, and property owned by an entity in which the assessor or deputy assessor has a financial interest. Additionally, this rule making removes reporting requirements and requires that assessors and deputy assessors certify annually to the Director that they have not personally assessed the above properties.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).Public Comment Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on September 28, 2021. Comments should be directed to: Nick Behlke Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.336.9025 Email: nick.behlke@iowa.gov Public Hearing No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making action is proposed:
ITEM 1. Amend rule 701—71.27(441) as follows:701—71.27(441) Assessor shall not assess own property. 71.27(1) Assessorand deputy assessor prohibited from assessing own property. An assessor or deputy assessor shall not personally assess a property if the assessor or deputy assessor or a member of the assessor’s or deputy assessor’s immediate family owns the property, has a financial interest in the property, or has a financial interest in the entity that owns the property. The assessing jurisdiction shall pay all costs and expenses associated with the assessment of the above property. 71.27(2) ReportCertification to the department. a. Not later than January 1 of each year, assessors, and in the case that an assessing jurisdiction has a deputy assessor, deputy assessors, shall reportcertify to the director, using forms and procedures prescribed by the director, an inventory of all of the following real property in the assessor and deputy assessor’s assessing jurisdictionthat the assessor did not personally assess the following property in the previous assessment year: (1) Property owned by the assessor; (2) Property in which the assessor has a financial interest; (3) Property owned by an entity in which the assessor has a financial interest. (1) Properties owned by the assessor; (2) Properties owned by a member of the assessor’s immediate family; (3) Properties in which the assessor or a member of the assessor’s immediate family has a financial interest; (4) Properties owned by an entity in which the assessor or a member of the assessor’s immediate family has a financial interest; (5) Properties owned by a deputy assessor; (6) Properties owned by a member of the deputy assessor’s immediate family; (7) Properties in which a deputy assessor or a member of a deputy assessor’s immediate family has a financial interest; (8) Properties owned by an entity in which a deputy assessor or a member of a deputy assessor’s immediate family has a financial interest. b. Not later than March 1 of each year, assessors, and in the case that an assessing jurisdiction has a deputy assessor, deputy assessors, shall report to the director, using forms and procedures prescribed by the director, the property record card of each of the properties described in paragraph 71.27(2)“a” and additional information as required by the director. In the event a property described in paragraph 71.27(2)“a” was reported on January 1 but is no longer owned by one of the parties described in paragraph 71.27(2)“a” and none of the parties described in paragraph 71.27(2)“a” has a financial interest in the property or has a financial interest in the entity that owns the property, the assessor is not required to make the March 1 report described in this subrule for that property but shall report to the department the sale or other circumstances under which the property no longer requires reporting under this subrule. c. In the event of an appeal to the board of review regarding the assessment of any of the properties described in paragraph 71.27(2)“a,” the board of review shall report the results of the appeal to the director within 15 days following the adjournment of any regular or special session of the board of review. b. Not later than January 1 of each year, deputy assessors shall certify to the director that the deputy assessor did not personally assess the following property in the previous assessment year: (1) Property owned by the deputy assessor; (2) Property in which the deputy assessor has a financial interest; (3) Property owned by an entity in which the deputy assessor has a financial interest. c. Assessors and deputy assessors shall use forms and procedures prescribed and provided by the director for the certifications described in paragraphs 71.27(2)“a” and “b.” 71.27(3) Powers and duties of director. The director shall have and assume all of the powers and duties under Iowa Code section 421.17 in administering this rule. 71.27(4) Definitions. For purposes of this rule, the following definitions shall govern. "Financial interest" includes but is not limited to the holding of legal title to real property or any ownership interest in an entity that holds legal title to real property. Notwithstanding the preceding sentence, ownership interest in an entity shall not be deemed a “financial interest” when a person’s ownership interest equals less than 10 percent of the entity’s total ownership interest. "Immediate family" includes the spouse, children, or parents of the assessor or deputy assessor, including adoptive relationships. There is a rebuttable presumption that relatives of the assessor or deputy assessor beyond the relation of the spouse, children, or parents of the taxpayer are not within the taxpayer’s immediate family. "Personally assess" means engaging in the listing, valuation, and classification of real property. This rule is intended to implement Iowa Code section 441.17 as amended by 2020 Iowa Acts, House File 2641.ARC 5896CHuman Services Department[441]Adopted and Filed EmergencyRule making related to provider rates and fee schedules
The Human Services Department hereby amends Chapter 78, “Amount, Duration and Scope of Medical and Remedial Services,” Chapter 79, “Other Policies Relating to Providers of Medical and Remedial Care,” and Chapter 83, “Medicaid Waiver Services,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 249A.4 and 2021 Iowa Acts, House File 891, section 32.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 249A.4 and 2021 Iowa Acts, House File 891.Purpose and Summary As part of the 2021 Legislative Session, 2021 Iowa Acts, House File 891, appropriates funds to increase specific provider reimbursement rates. The amendments to Chapters 78, 79 and 83 do the following:
Rule making related to prescription drug monitoring
The Human Services Department hereby amends Chapter 79, “Other Policies Relating to Providers of Medical and Remedial Care,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code chapter 249A.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapter 249A.Purpose and Summary Section 5042 of the SUPPORT for Patients and Communities Act, codified in 42 U.S.C. 1396w–3a, requires covered providers who are permitted to prescribe controlled substances and who participate in Medicaid to query qualified prescription drug monitoring programs (PDMPs) before prescribing controlled substances to most Medicaid beneficiaries, beginning October 1, 2021. This rule making adds requirements consistent with the federal and state requirements for Medicaid-participating providers. Iowa Medicaid providers must also comply with requirements under Iowa Code section 124.551A and their respective licensing boards in regard to utilizing the PDMP.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 16, 2021, as ARC 5708C. The Department received comments on the proposed rule in the following areas. Comment 1: One respondent commented on the ability to allow a covered provider to delegate the ability to utilize the Prescription Monitoring Program (PMP) database. Response 1: The Department agrees with the comment and has revised subrule 79.17(1) to add the prescribing practitioner’s designated agent. Comment 2: One respondent asked to amend the rules for practitioners to exclude utilizing the PMP database for an inpatient setting. Response 2: The rule allows practitioners’ review of the database to be conducted in accordance with all requirements under the practitioner’s specific professional licensing authority. No changes were made as a result of this comment. Comment 3: Two respondents commented on the additional work required for practitioners who prescribe controlled substances for Attention Deficit Hyperactivity Disorder and epilepsy. For example: checking the PMP every month or every six months. Response 3: The federal law (Section 5042 of the SUPPORT for Patients and Communities Act, codified in 42 U.S.C. 1396w–3a) requires covered providers who are permitted to prescribe controlled substances and who participate in Medicaid to query qualified PDMPs before prescribing controlled substances. Medicaid is implementing this requirement to comply with the federal requirements. No changes were made as a result of this comment. Comment 4: One respondent asked if providers would be required to check the PMP for other states. Response 4: The requirement is to check the Iowa PMP. The Iowa PMP allows registered users to query other states’ PMPs by selecting those states at the bottom of a patient request in the section titled “PMP InterConnect Search.” Additional information can be found there. Providers would also have the discretion to sign up for surrounding states’ PMPs. No changes were made as a result of this comment. Comment 5: Two respondents asked if the State would require software requirements and provide state assistance with cost. Response 5: The PMP is not a Medicaid system; it is operated by the Iowa Board of Pharmacy under the Iowa Department of Public Health. Providers would need to check with their electronic health record provider. Additional information can be found at Integration with PMP. No changes were made as a result of this comment.Reason for Waiver of Normal Effective Date Pursuant to Iowa Code section 17A.5(2)“b”(1)(b), the Department finds that the normal effective date of this rule making, 35 days after publication, should be waived and the rule making made effective on October 1, 2021, because the effective date of federal legislation is October 1, 2021, and because it provides a benefit to individual consumers and the general public by providing a method to monitor prescription controlled substance use to prevent drug misuse and improve patient care.Adoption of Rule Making This rule making was adopted by the Council on Human Services on August 12, 2021.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 441—1.8(17A,217).Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date This rule making will become effective on October 1, 2021. The following rule-making action is adopted:
ITEM 1. Adopt the following new rule 441—79.17(249A):441—79.17(249A) Requirements for prescribing controlled substances. 79.17(1) Review of Iowa prescription monitoring program database. A prescribing practitioner, as defined in Iowa Code section 124.550, or the prescribing practitioner’s designated agent, shall review patient information in the Iowa prescription monitoring program (PMP) database prior to issuing a prescription for a controlled substance as defined in 42 U.S.C. 1396w–3a, inclusive of Schedules II, III and IV, unless the patient is receiving inpatient hospice care or long-term residential facility care. Review shall be conducted in accordance with all requirements under the prescribing practitioner’s specific professional licensing authority. 79.17(2) Documentation. The prescribing practitioner shall include documentation in the patient file to demonstrate compliance with subrule 79.17(1). Subject to the requirements under Iowa Code chapter 124, subchapter VI, if the prescribing practitioner is not able to conduct a review of the PMP database despite a good-faith effort, the prescribing practitioner must document in the patient file such good-faith effort, including the reasons why the prescribing practitioner was not able to conduct the review. The prescribing practitioner shall submit such documentation to the Iowa Medicaid program upon request. This rule is intended to implement Iowa Code chapters 124 and 249A. [Filed Emergency After Notice 8/17/21, effective 10/1/21][Published 9/8/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/8/21.ARC 5898CEnvironmental Protection Commission[567]Adopted and FiledRule making related to air quality
The Environmental Protection Commission (Commission) hereby amends Chapter 20, “Scope of Title—Definitions,” Chapter 22, “Controlling Pollution,” Chapter 23, “Emission Standards for Contaminants,” and Chapter 25, “Measurement of Emissions,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 455B.133.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 455B.133 and 455B.134.Purpose and Summary This rule making adopts several new mandatory federal air quality standards. These amendments are identical to the federal regulations, and the amendments do not impose any regulations on Iowa businesses not already required by federal law. Additionally, the adoption of these amendments will ensure that Iowa’s administrative rules are consistent with federal regulations and not any more stringent. More specifically, the amendments adopt updated federal new source performance standards (NSPS) and air toxics standards, also known as National Emissions Standards for Hazardous Air Pollutants (NESHAP). These standards apply whether they are adopted into state regulation or not; however, by incorporating these terms into the State’s rules, the Department of Natural Resources (Department) can continue to be a delegated authority under the Clean Air Act (CAA). This allows the Department, rather than the U.S. Environmental Protection Agency (EPA), to be the primary compliance and implementation agency in Iowa. In more detail, this rule making adopts the following six amendments: Item 1 amends rule 567—20.2(455B), definition of “EPA reference method,” to adopt the most current EPA methods for measuring air pollutant emissions, performance testing (sometimes called “stack testing”), and continuous monitoring. EPA’s revisions to 40 Code of Federal Regulations (CFR) Parts 51, 60, 61, and 63 to correct and update regulations for source testing of emissions were published in the Federal Register on October 7, 2020. See 85 Fed. Reg. 63394–63422 (Oct. 7, 2020) (a correction to Part 63 was subsequently published in 85 Fed. Reg. 77384 (Dec. 2, 2020)). EPA states in the final regulations that these revisions include corrections to inaccurate testing provisions, updates to outdated procedures, and approved alternative procedures that will provide flexibility to testers. EPA also states that the updates will improve the quality of data and will not impose any new substantive requirements on source owners or operators. Adopting EPA’s updates ensures that state reference testing methods match current federal reference methods and are no more stringent than the federal methods. The amendment in Item 2 is adopted concurrently with the amendment in Item 1. It revises the definition of “EPA reference method” in rule 567—22.100(455B) to similarly reflect updates to EPA testing and monitoring methods, which are the methods that apply to the Title V Operating Permit rules in Chapter 22. The amendments in Items 3, 4, and 5 adopt changes to the federal NSPS and NESHAP. The CAA obligates EPA to issue standards to control air pollution. The NSPS and NESHAP set federal standards and deadlines for industrial, commercial or institutional facilities to meet uniform standards for equipment operation and air pollutant emissions. Because the NSPS and NESHAP adopted by reference are federal regulations, affected sources are subject to the federal requirements regardless of whether the Commission adopts the standards into the State’s rules. However, the CAA allows a state or local agency to implement NSPS and NESHAP as a delegated authority. Upon state adoption of the standards, the Department becomes the delegated authority for the specific NSPS or NESHAP and is the primary implementation agency in Iowa. Two local agencies, those in Polk County and Linn County, implement these standards within their counties. The Commission’s rules, including all compliance deadlines, are identical to the federal NSPS and NESHAP as of a specific federal publication date. With delegation authority and adoption of the federal standards into the State’s rules and the rules of Polk County and Linn County, the State and local agencies have the ability to make applicability determinations for facilities, rather than referring these decisions to EPA. Stakeholders affected by NSPS and NESHAP typically prefer for the Department, rather than EPA, to be the primary implementation agency in Iowa. Upon adoption of the new and amended standards, the Department will work with affected facilities to provide any needed compliance assistance. Additionally, affected area sources that are small businesses are eligible for free assistance from the small business technical assistance program. Notably, the Commission is excluding from adoption the recent changes that EPA made to the NSPS for Kraft Pulp Mills (40 CFR 60, Subpart BB) due to active litigation of the federal regulation. This is described in more specificity below. An additional amendment to subrule 23.1(2) indicates the previous date for which Subpart BB was adopted by reference, which will exclude the recent federal amendments from being adopted. Finally, Item 6 amends subrule 25.1(9) to adopt the changes EPA made to the federal test methods for measuring emissions, as explained above for Item 1. Risk and technology review Most of EPA’s amendments adopted in subrule 23.1(4) address the risk and technology reviews required under the CAA. The CAA requires EPA to address air toxics emissions from large industrial facilities (major sources) in two phases. The first phase is “technology-based,” where EPA develops standards for controlling the emissions of air toxics from sources in an industry group or “source category” (for example, industrial boilers). These maximum achievable control technology (MACT) standards are based on emissions levels that controlled and low-emitting sources in an industry are already achieving. Typically, MACT affects only a “major source” of air toxics (a source with a potential to emit at least 10 tons per year of any one hazardous air pollutant (HAP) or 25 tons per year of any combination of HAPs). The second phase is a “risk-based” approach called residual risk. In this step, EPA must determine whether more health-protective standards are necessary. Within eight years of setting the MACT standards, the CAA requires EPA to assess the remaining health risks from each source category to determine whether the MACT standards protect public health with an ample margin of safety and protect against adverse environmental effects. On this same schedule, the CAA also requires EPA to review the standards and, if necessary, revise them to account for improvements in air pollution controls or prevention. The combined review of public health risk and air pollution control is called the “risk and technology review” (RTR). Impact of the NESHAP amendments For most of the recent NESHAP RTR updates, EPA has determined that the risks from emissions from affected source categories are acceptable and that there are no new cost-effective controls available. However, the updates do include revisions to the requirements for periods of startup, shutdown, and malfunction (SSM) and require electronic reporting of performance test results and compliance reports. In some cases, EPA made minor amendments to correct errors, clarify requirements, and provide technical amendments. EPA also provided additional flexibilities in several of the final NESHAP RTRs, such as alternative testing methods or reduced monitoring. A few of the recent and upcoming NESHAP RTRs do include more substantive requirements for pollution control and monitoring. Table 1 below identifies the amendments to the NESHAP source categories adopted by reference. The standards are identified by source category and are listed in order of publication date in the Federal Register. The table also indicates the subpart in 40 CFR Part 63, as well as the associated paragraph in subrule 23.1(4). Additionally, the table indicates the number of facilities that the Department estimates are currently affected by the specific standard. The Commission is adopting standards that currently do not affect any Iowa sources in case a new facility of that type is constructed in the future.Table 1Adopted NESHAP AmendmentsNESHAP: Affected Source Category (Note: “Mfg” is the abbreviation for “manufacturing”)Date Published in Federal Register40 CFR 63 Subpart/Subrule 23.1(4) ParagraphEstimated Iowa Facilities AffectedSurface Coating of Metal Cans2/25/2020KKKK/“ck”0Surface Coating of Metal Coil2/25/2020SSSS/“cs”0Asphalt Processing3/12/2020LLLLL/“dl”0Vegetable Oil Production3/18/2020GGGG/“cg”17Boat Mfg3/20/2020VVVV/“cv”0Reinforced Plastics3/20/2020WWWW/“cw”15HCl Acid Production4/15/2020NNNNN/“dn”0Engine Test Cells6/3/2020PPPPP/“dp”1Cellulose Products7/2/2020UUUU/“cu”0Automobiles and Light Duty Trucks7/8/2020IIII/“ci”0Miscellaneous Metal Parts7/8/2020MMMM/“cm”31Plastic Parts7/8/2020PPPP/“cp”12Paper and Other Web Coatings7/9/2020JJJJ/“cj”2Rubber Tire Mfg7/24/2020XXXX/“cx”1Miscellaneous Coating Mfg8/14/2020HHHHH/“dh”1Iron and Steel Foundries9/10/2020EEEEE/“de”4Phosphoric Acid Mfg11/3/2020AA/“aa”0 There are several recent NESHAP amendments that the Commission excluded from adoption at this time due to active legal challenges of the federal regulations. Additional amendments to subrule 23.1(4) indicate the previous dates for which the specific NESHAP were adopted by reference, which excludes the recent federal amendments from being adopted. Table 2 below indicates the NESHAP amendments being excluded from adoption. Affected sources remain subject to these federal requirements regardless of whether the Commission adopts the standards into the State’s rules. Table 2 NESHAP Amendments Excluded from Adoption Due to Legal ChallengesNESHAP: Affected Source Category (Note: “Mfg” is the abbreviation for “manufacturing”)Date Published in Federal Register40 CFR 63 Subpart/Subrule 23.1(4) paragraph and the previous adoption dateEstimated Iowa Facilities Affected by the NESHAPCombustion Turbines3/9/2020YYYY/“cy” 4/20/20062Municipal Solid Waste Landfills3/26/2020AAAA/“ca” 4/20/20065Ethylene Production7/6/2020YY/“ay” 10/8/20141Organic Liquids (Non-Gasoline) Distribution7/7/2020EEEE/“ce” 7/17/20083Site Remediation7/10/2020GGGGG/“dg” 11/29/20060Integrated Steel Mfg7/13/2020FFFFF/“df” 7/13/20060Lime Mfg7/24/2020AAAAA/“da” 4/20/20060Miscellaneous Organic Chemical Mfg (MON)8/12/2020FFFF/“cf” 7/14/200619Plywood & Composites Mfg8/13/2020DDDD/“cd” 10/29/20072Pulp Mills11/5/2020MM/“am” 10/11/20170Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 16, 2021, as ARC 5678C. A public hearing was held on July 19, 2021, at 1 p.m. via video/conference call. No one attended the public hearing. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by the Commission on August 17, 2021.Fiscal Impact After analysis and review of this rule making, these amendments will have no fiscal impact to either the State of Iowa or to regulated facilities, the general public, or county or local governments. Some of the amendments may benefit the private sector because they streamline current air quality programs. Affected businesses and the public benefit from up-to-date air quality requirements and increased effectiveness. A copy of the fiscal impact statement is available from the Department upon request. Jobs Impact After analysis and review of this rule making, these amendments will have an overall neutral impact on private-sector jobs. Some of these amendments may benefit the private sector because they streamline current air quality programs. For the amendments specified in Items 3, 4, and 5, the Commission has determined that there may be job impacts to Iowa businesses. However, the amendments are only implementing federally mandated regulations, thus any resulting impact originates at the federal level. These amendments are identical to the federal regulations and will not impose any regulations on Iowa businesses not already required by federal law. In some cases, the revised federal standards being adopted provide more flexibility and potential cost savings for affected businesses, offering a positive impact on private-sector jobs. A copy of the jobs impact statement is available from the Department upon request.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 561—Chapter 10.Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date This rule making will become effective on October 13, 2021. The following rule-making actions are adopted:
ITEM 1. Amend rule 567—20.2(455B), definition of “EPA reference method,” as follows: "EPA reference method" means the following methods used for performance tests and continuous monitoring systems:- Performance test (stack test). A stack test shall be conducted according to EPA reference methods specified in 40 CFR 51, Appendix M (as amendedor corrected through November 14, 2018October 7, 2020); 40 CFR 60, Appendix A (as amendedor corrected through November 14, 2018October 7, 2020); 40 CFR 61, Appendix B (as amendedor corrected through August 30, 2016October 7, 2020); and 40 CFR 63, Appendix A (as amendedor corrected through November 14, 2018December 2, 2020).
- Continuous monitoring systems. Minimum performance specifications and quality assurance procedures for performance evaluations of continuous monitoring systems are as specified in 40 CFR 60, Appendix B (as amendedor corrected through November 14, 2018October 7, 2020); 40 CFR 60, Appendix F (as amendedor corrected through November 14, 2018October 7, 2020); 40 CFR 75, Appendix A (as amendedor corrected through August 30, 2016); 40 CFR 75, Appendix B (as amendedor corrected through August 30, 2016); and 40 CFR 75, Appendix F (as amendedor corrected through August 30, 2016).
- Performance test (stack test). A stack test shall be conducted according to EPA reference methods specified in 40 CFR 51, Appendix M (as amendedor corrected through November 14, 2018October 7, 2020); 40 CFR 60, Appendix A (as amendedor corrected through November 14, 2018October 7, 2020); 40 CFR 61, Appendix B (as amendedor corrected through August 30, 2016October 7, 2020); and 40 CFR 63, Appendix A (as amendedor corrected through November 14, 2018December 2, 2020).
- Continuous monitoring systems. Minimum performance specifications and quality assurance procedures for performance evaluations of continuous monitoring systems are as specified in 40 CFR 60, Appendix B (as amendedor corrected through November 14, 2018October 7, 2020); 40 CFR 60, Appendix F (as amendedor corrected through November 14, 2018October 7, 2020); 40 CFR 75, Appendix A (as amendedor corrected through August 30, 2016); 40 CFR 75, Appendix B (as amendedor corrected through August 30, 2016); and 40 CFR 75, Appendix F (as amendedor corrected through August 30, 2016).
Rule making related to dams and water storage permitting
The Environmental Protection Commission (Commission) hereby amends Chapter 50, “Scope of Division—Definitions—Forms—Rules Of Practice,” Chapter 51, “Water Permit or Registration—When Required,” Chapter 52, “Criteria and Conditions for Authorizing Withdrawal, Diversion and Storage of Water,” Chapter 70, “Scope of Title—Definitions—Forms—Rules of Practice,” Chapter 71, “Flood Plain or Floodway Development—When Approval is Required,” and Chapter 72, “Criteria for Approval”; rescinds Chapter 73, “Use, Maintenance, Removal, Inspections, and Safety of Dams”; and adopts a new Chapter 73, “Approval, Construction, Use, Maintenance, Removal, Inspections, and Safety of Dams,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code sections 455B.275(9), 455B.276(1) and 455B.278.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 455B.262, 455B.264, 455B.265, 455B.267, 455B.268, 455B.270, 455B.271, 455B.275 and 455B.278.Purpose and Summary Until adoption of these amendments, the regulation of dams was located in seven different Iowa Administrative Code chapters. This rule making reduces and consolidates these administrative rules to ease administrative and regulatory burdens on dam owners and consultants. Simultaneously, this rule making updates the rules to make them consistent with national standards and best management practices. More specifically, this rule making consolidates rules governing dam approval, construction, maintenance, and inspections. Formerly, these rules were scattered across four Iowa Administrative Code chapters (Chapters 70, 71, 72, and 73), as well as included in one rule-referenced technical bulletin. The rules are now located in large part in new Chapter 73, and almost all rules regarding dam safety from the previous seven Iowa Administrative Code chapters are now in new Chapter 73. This rule making also streamlines water storage permits involving the use of a dam (i.e., to establish a new pond or lake). Previously, this process required two separate permit applications to two different programs (water supply and floodplains) and touched on four different Iowa Administrative Code chapters (Chapters 50, 51, 52, and 73). The rule making consolidates this process into one chapter (new Chapter 73) and requires only one application and one approval process to obtain both permits. Strategic rule rescissions and amendments are included in this consolidation effort. For example, dam size thresholds subject to the Department of Natural Resources’ (Department’s) oversight are being simplified to make it easier to know when permits are required. Prescriptive design standards have been relaxed. Dams designated as “high hazard,” which are those likely to cause loss of life in the event of a failure, will now be required to have an emergency action plan to mitigate risk. Finally, certain updates to the inflow design storm requirements have been made. These two changes in particular bring Iowa’s administrative rules on dams up to national standards and reflect best management practices.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 16, 2021, as ARC 5677C. A public hearing was held on July 12, 2021, at 2 p.m. via video/conference call. A representative of the Iowa Farm Bureau Federation (IFBF) attended but did not provide oral comments. Written comments were received from the IFBF. Two revisions to the rules were requested, both of which have been addressed as explained below. First, IFBF stated that proposed paragraph 73.10(8)“i” “requires the department to include a permit condition which gives the department access to the dam site for inspections. The rule does not set any limitations on government access to private property.” The commenter requested that reasonable limitations be placed on dam site access. Second, IFBF stated that “subrule 73.10(2) requires the preliminary application packet to be prepared by or under the supervision of an Iowa licensed profession engineer. Subrule 73.10(4) requires the final submittal of engineering plans to be certified by a professional engineer licensed in the state of Iowa. Many conservation structures, such as channel stabilization, constructed wetlands, sediment control basins and farm ponds, are designed by the Natural Resources Conservation Service (NRCS) each year. The NRCS employees assisting with the design and permit application may or may not be professional engineers licensed in the state of Iowa, but these federal employees are working from NRCS design standards. We recommend that the rules allow for the preliminary and final submission to be prepared by an NRCS qualified staff person or an Iowa licensed professional engineer.” The Commission has revised subrule 73.10(2), the introductory paragraph of subrule 73.10(4) and paragraph 73.10(8)“i” to read as follows: “73.10(2) Preliminary application packet. The preliminary application packet includes the joint application form and requires submittal of preliminary design data prepared by or under supervision of a professional engineer licensed in the state of Iowa or by an engineer working for the United States government. The preliminary design data packet shall contain a report summarizing the preliminary design, hydrologic data and reservoir routing, a hazard potential analysis, preliminary design drawings, the soils and geotechnical engineering analysis, and a list of the engineering references used as the basis for design and construction.” “73.10(4) Final submittal. After the department’s review of and concurrence with the preliminary submittal, the engineering plans and other engineering information shall be certified by a professional engineer licensed in the state of Iowa, unless prepared by an engineer working for the United States government, and submitted with the following information:” “i. Postconstruction department inspections. A department approval which authorizes construction or modification, operation, and maintenance of a dam for which ongoing inspections are required by these rules shall include a condition stating that the department shall have access to the dam site for such inspections at a reasonable time after notification of the dam owner.”Adoption of Rule Making This rule making was adopted by the Commission on August 17, 2021.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. A copy of the fiscal impact statement is available from the Department upon request.Jobs Impact After analysis and review of this rule making, no impact on jobs has been found. A copy of the jobs impact statement is available from the Department upon request. Waivers This rule is subject to the waiver provisions of 561—Chapter 10. Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions.Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date This rule making will become effective on October 13, 2021. The following rule-making actions are adopted:
ITEM 1. Amend paragraph 50.4(1)"a" as follows: a. Application for approval of a new withdrawal,or diversion or storage of water unrelated to the use of an agricultural drainage well.For withdrawals,or diversions, or storage of water unrelated to the use of an agricultural drainage well, a request for a new permit as distinguished from modification or renewal of an existing permit shall be made on Form 16 (542-3106)542-3106. An application form must be submitted by or on behalf of the owner, lessee, easement holder or option holder of the area where the water is to be withdrawn, diverted or stored, and used. An application must be accompanied by a map portraying the points of withdrawal or diversion and storage, and the land on which water is to be used oriented as to section, township, and range. One application normally will be adequate for all uses on contiguous tracts of land. Tracts of land involved in the same operation separated only by roads or railroads will be deemed contiguous tracts.For water storage permits, applications will be made in conjunction with dam construction permits as required in rule 567—73.10(455B). ITEM 2. Rescind and reserve rule 567—51.2(455B). ITEM 3. Rescind and reserve rule 567—52.20(455B). ITEM 4. Amend rule 567—70.2(455B,481A), definition of “Dam,” as follows: "Dam" means a barrier which impounds or stores waterthe same as defined in rule 567—73.2(455B). ITEM 5. Rescind the definitions of “Height of dam,” “Low head dam” and “Major dam structure” in rule 567—70.2(455B,481A). ITEM 6. Amend rule 567—71.3(455B) as follows:567—71.3(455B) Dams. Approval by the department for construction, operation, or maintenance of a dam in the floodway or flood plain of any water source shall be required when the dimensions and effects of such dam exceed the thresholds established by this rulerepair, or modification of any dam shall be required when the dam exceeds the thresholds under rule 567—73.3(455B). Other structures across a stream may require approval under rule 567—71.12(455B). Exception: Public road embankments with culverts which impound water only in temporary storage are exempt from the requirements of this rule and shall be reviewed under rules 567—71.1(455B) and 567—72.1(455B). Approval required by this rule shall be coordinated with approval for storage of water required by 567—Chapter 51. Approval by the department shall be required in the following instances: 71.3(1) Rural areas. In rural areas: a. Any dam designed to provide a sum of permanent and temporary storage exceeding 50 acre-feet at the top of dam elevation, or 25 acre-feet if the dam does not have an emergency spillway, and which has a height of 5 feet or more. b. Any dam designed to provide permanent storage in excess of 18 acre-feet and which has a height of 5 feet or more. c. Any dam across a stream draining more than 10 square miles. d. Any dam located within 1 mile of an incorporated municipality, if the dam has a height of 10 feet or more, stores 10 acre-feet or more at the top of dam elevation, and is situated such that the discharge from the dam will flow through the incorporated area. 71.3(2) Urban areas. Any dam which exceeds the thresholds in 71.3(1)“a,” “b” or “d.” 71.3(3) Low head dams. Any low head dam on a stream draining 2 or more square miles in an urban area, or 10 or more square miles in a rural area. 71.3(4) Modifications to existing dams. Modification or alteration of any dam or appurtenant structure beyond the scope of ordinary maintenance or repair, or any change in operating procedures, if the dimensions or effects of the dam exceed the applicable thresholds in this rule. Changes in the spillway height or dimensions of the dam or spillway are examples of modifications for which approval is required. 71.3(5) Mill dams. Rescinded IAB 2/20/91, effective 3/27/91. 71.3(6) Maintenance of preexisting dams. Approval shall be required to maintain a preexisting dam as described in 567—Chapter 73 only if the department determines that the dam poses a significant threat to the well-being of the public or environment and should therefore be removed or repaired and safely maintained. Preexisting dams are subject to the water, air and waste management dam safety inspection program as set forth in 567—Chapter 73. This rule is intended to implement Iowa Code sections 455B.262, 455B.264, 455B.267, 455B.275 and 455B.277. ITEM 7. Rescind and reserve rule 567—72.3(455B). ITEM 8. Adopt the following new subrule 72.11(3): 72.11(3) Structures or materials across a channel. The following criteria shall apply to structures or materials such as riprap that span the channel of a stream or river and do not meet the thresholds of rule 567—73.3(455B): a. The location and design of the structure shall not adversely affect the fisheries or recreational use of the stream. b. The pool created by the structure shall not adversely affect drainage on lands not owned or under easements by the applicant. c. The structure shall be hydraulically designed to submerge before bankfull stage is reached in the stream channel in order that increased or premature overbank flooding does not occur. Where this cannot be reasonably accomplished in order for the structure to fulfill its intended purpose, the applicant shall demonstrate that any increased flooding will affect only lands owned or controlled by the applicant. d. For projects that include significant appurtenant structures or works outside the stream channel, the combined effect of the total project shall not create more than one foot of backwater during floods which exceed the flow capacity of the channel, unless the proper lands, easements, or rights-of-way are obtained. e. The structure shall be capable of withstanding the effects of normal and flood flows across its crest and against the abutments with erosion protection added as required to prevent failure of the structure during flood events. ITEM 9. Rescind 567—Chapter 73 and adopt the following new chapter in lieu thereof: CHAPTER 73APPROVAL, CONSTRUCTION, USE, MAINTENANCE, REMOVAL, INSPECTIONS, AND SAFETY OF DAMS DIVISION ISCOPE AND DEFINITIONS567—73.1(455B) Scope and applicability. The department regulates the storage of water and the construction and maintenance of dams. Any person who desires to construct, repair, modify, abandon, or remove a dam has a responsibility to determine whether approval is required from the department prior to undertaking any such work.567—73.2(455B) Definitions. "Abandonment" means to render a dam nonimpounding by dewatering and filling the reservoir created by that dam with solid materials and by diverting the natural drainage around the site. "Acre-foot" means a volume of water that would cover one acre of land one foot deep, equal to 43,560 cubic feet of water. "Adverse consequences" means negative impacts that may occur upstream, downstream, or at locations remote from the dam. The primary concerns are loss of human life, economic loss including but not limited to property damage, public damages, disruption of public utilities, and environmental impact. "Appurtenant structures" means structures such as spillways, either in the dam or separate therefrom; the reservoir and its rim; low-level outlet works; and water conduits such as tunnels, pipelines, or penstocks, occurring through either the dam or its abutments. "Auxiliary spillway" means any secondary spillway that is designed to be operated infrequently. "Confinement feeding operation" means the same as defined in rule 567—65.1(459,459B). "Dam" means a barrier that impounds or stores water. "Dam owner" means any person who owns, controls, operates, maintains, or manages a dam. "Hazard potential" means a classification based on the possible incremental adverse consequences that result from the release of water or stored contents due to a failure or misoperation of the dam or appurtenances. The hazard potential classification of a dam does not reflect in any way on the current condition of the dam and its appurtenant structures (e.g., safety, structural integrity, or flood routing capacity). "Height of dam" means the vertical distance from the top of the dam to the natural bed of the stream or water source measured at the downstream toe of the dam or to the lowest elevation of the outside limit of the dam if it is not across a water source. "Incremental consequence" means the difference, under the same conditions (e.g., flood, earthquake, or other event), between the consequences that are likely to occur from the failure or misoperation of the dam and appurtenances as compared to the consequences that are likely to occur without such failure or misoperation. "Probable" means more likely than not to occur; reasonably expected; realistic. "Probable maximum flood" means the same as defined in rule 567—70.2(455B,481A). "Public damages" means as defined in rule 567—70.2(455B,481A). "Q100,” “Q50,” “Q25,” “Q15,” “Q10," et cetera, means the same as defined in rule 567—70.2(455B,481A).567—73.3(455B) Regulated dams. 73.3(1) Thresholds. Dams meeting any of the following thresholds shall be regulated by the department: a. A dam with a height of at least 25 feet and a storage of 15 acre-feet or more at the top of the dam elevation; or b. A dam with a storage of 50 acre-feet or more at the top of the dam elevation and a height of at least 6 feet; or c. A dam that is assigned a hazard potential of high hazard. 73.3(2) Exceptions. Road embankments or driveways with culverts are exempt unless such structure serves, either primarily or secondarily, a purpose commonly associated with dams, such as the temporary storage of water for flood control. 73.3(3) New construction. Before construction begins, approval is required for construction of any dam meeting the thresholds of a regulated dam. The proposed dam must meet the criteria outlined in this chapter. 73.3(4) Existing dams. a. Approval is required for: (1) Modification, repair, alteration, breach, abandonment, or removal of any existing dam or appurtenant structure beyond the scope of ordinary maintenance if the height of the dam or storage of the dam exceeds the applicable thresholds in this rule. (2) Any change in operating procedures if the height of the dam or storage of the dam exceeds the applicable thresholds in this rule. b. Spillway reconstruction, changes in normal water level, and modification of the dam embankment or spillway are examples of modifications that require approval. The dam must meet the criteria outlined in this chapter. Dams found to be unsafe according to rule 567—73.33(455B) shall be repaired or removed. 73.3(5) Required upgrades. Improvements may be required for existing dams in order to reduce the risk of a dam failure. a. Existing dams assigned a high hazard potential or significant hazard potential that have been inspected or analyzed and found not to meet the criteria in this chapter will be required to meet the requirements outlined in this chapter for the appropriate hazard potential. b. Existing dams assigned a low hazard potential that have been inspected or analyzed and found to have a significant hazard potential or high hazard potential shall be required to be upgraded to meet the requirements outlined in this chapter for the appropriate hazard potential.567—73.4(455B) Assignment of hazard potential. All existing and proposed dams reviewed by the department shall be assigned a hazard potential. Anticipated future land and impoundment use shall be considered in the determination of hazard potential. The hazard potential shall be determined using the following criteria: 73.4(1) Low hazard. A dam shall be classified as “low hazard” if failure of the dam would result in no probable loss of human life, low economic losses, and low public damages. 73.4(2) Significant hazard. A dam shall be classified as “significant hazard” if failure of the dam would result in no probable loss of human life but may damage residential structures or industrial, commercial, or public buildings; may negatively impact important public utilities or moderately traveled roads or railroads; or may result in significant economic losses or significant public damages. 73.4(3) High hazard. A dam shall be classified as “high hazard” if located in an area where failure would result in probable loss of human life. 73.4(4) Consideration of changes affecting hazard potential. In locating the site of a dam and in obtaining easements and rights-of-way, the applicant shall consider the impacts to the hazard potential of a dam from anticipated changes in land use downstream or adjacent to the impoundment, the operation of the dam, and the potential liability of the dam owner. 73.4(5) Changes in hazard potential. Any future changes in downstream land use, development, impoundment use, or critical hydraulic structures shall require a reevaluation of the hazard potential of the dam. If the hazard potential of the dam changes, the dam shall be required to meet all applicable criteria for that hazard potential. This may require additional increases in spillway capacity for the dam. The owner and any other persons responsible for the construction and operation of the dam shall assume all risks for future costs to upgrade a dam in the event there is a change in hazard potential.567—73.5() Reserved.567—73.6() Reserved.567—73.7() Reserved.567—73.8() Reserved.567—73.9() Reserved.DIVISION IIAPPROVAL PROCESS567—73.10(455B) Review and approval process for dam construction, modification, abandonment, or removal. 73.10(1) Application process. Application materials are provided by the department. The application shall be submitted by or on behalf of the person or persons who will be the future dam owner or owners. The application shall be signed by the applicant or a duly authorized agent. Completed applications along with supporting information shall be submitted to the department through an online application system or mailed to Iowa Department of Natural Resources, Attn: Joint Application, 502 East 9th Street, Des Moines, Iowa 50319. For dam repairs, abandonment, or removal, the department may waive the requirements of the application process outlined in this rule if the requirements are unnecessary for the application approval or if the dam has been designated as unsafe and immediate temporary emergency stabilization repairs are required to prevent failure of the dam. Permanent repairs or modifications will require review and approval. 73.10(2) Preliminary application packet. The preliminary application packet includes the joint application form and requires submittal of preliminary design data prepared by or under supervision of a professional engineer licensed in the state of Iowa or by an engineer working for the United States government. The preliminary design data packet shall contain a report summarizing the preliminary design, hydrologic data and reservoir routing, a hazard potential analysis, preliminary design drawings, the soils and geotechnical engineering analysis, and a list of the engineering references used as the basis for design and construction. 73.10(3) Project review. The department shall review a preliminary application packet and provide feedback or concurrence on the initial design and assumptions. After concurrence with the preliminary application packet and upon reception of the final submittal as required by subrule 73.10(4), the department will review the final submittal and issue a decision based on whether the project meets criteria for approval outlined in this chapter. 73.10(4) Final submittal. After the department’s review of and concurrence with the preliminary submittal, the engineering plans and other engineering information shall be certified by a professional engineer licensed in the state of Iowa, unless prepared by an engineer working for the United States government, and submitted with the following information: a. One complete set of certified construction plans; b. One complete set of construction specifications; c. An operating plan, if required; d. Easements, if required; e. For high hazard dams, an emergency action plan; and f. An engineering design report documenting all aspects of the design of the dam and how the design of the dam meets the criteria outlined in this chapter. The engineering design report shall include the following: hazard potential analysis; hydrology and hydraulic calculations; embankment design and foundation analysis; and structural calculations, where applicable. 73.10(5) Public notice. Public notice shall be issued by the department to inform persons who may experience adverse consequences by the permitted project. Adverse consequences may occur through maintenance of the dam and appurtenant structures, spillway discharges, temporary ponding of floodwater behind the dam, or failure of the dam. It is the applicant’s responsibility to submit sufficient information with the preliminary application packet and on request to enable the department to accurately identify the owners, occupants, and addresses of affected lands. 73.10(6) Project approval or disapproval. a. Approval.Issuance of a dam construction permit shall constitute approval of a project. The permit may include one or more special conditions when reasonably necessary to implement relevant criteria. b. Disapproval.A letter to the applicant denying the application shall constitute disapproval of a project. c. Notice of decision.Copies of the decision shall be mailed or electronically transmitted to the applicant and any person who commented. 73.10(7) Appeal of decision. Any person aggrieved by a decision issued under these rules may file a notice of appeal as governed by 567—Chapter 7. 73.10(8) General conditions. Department approvals of a project shall be subject to the following conditions: a. Change in ownership.The dam owner and any successor in interest to the real estate on which the project or activity is located shall be responsible for notifying the department of change in ownership. b. Maintenance.The dam owner has a responsibility to maintain the dam and appurtenant structures in a safe condition. Maintenance shall include keeping earthen portions of the dam well vegetated, keeping trees and brush off the dam, preventing and repairing erosion, keeping the spillway free of obstructions, repairing deteriorated structural elements, and performing required maintenance on mechanical appurtenances such as gates. c. Responsibility.No legal or financial responsibility arising from the construction or maintenance of the approved works shall attach to the state of Iowa or the department due to the issuance of an approval or administrative waiver. d. Lands.The applicant shall be responsible for obtaining such government licenses, permits, and approvals, and lands, easements, and rights-of-way which are required for the construction, operation, and maintenance of the authorized work. e. Change in plans.No material change from the plans and specifications approved by the department shall be made unless authorized in writing by the department. f. Revocation of permit.A department permit may be revoked if construction is not completed within the period of time specified in the department permit. g. Performance bond.A performance bond may be required when necessary to secure the construction, operation, and maintenance of approved projects and activities in a manner that does not create a hazard to the public’s health, welfare, and safety. The amount and conditions of the bond shall be specified as special conditions in the department permit. h. Construction inspection.For high hazard and significant hazard dams, construction shall be inspected by or under the supervision of a professional licensed engineer in the state of Iowa. The engineer shall prepare and certify as-built plans after completion and a report documenting that the dam was constructed in general conformance with the approved plans (or approved changes) and outlining unusual circumstances encountered during construction. The water storage permit shall not be issued until the department accepts the as-built plans and report. i. Postconstruction department inspections.A department approval which authorizes construction or modification, operation, and maintenance of a dam for which ongoing inspections are required by these rules shall include a condition stating that the department shall have access to the dam site for such inspections at a reasonable time after notification of the dam owner. j. Owner inspections.For high hazard and significant hazard dams, the owner is responsible for annual inspections and submission of written inspection reports to the department as required in subrule 73.30(4).567—73.11(455B) Water storage permits. 73.11(1) A water storage permit shall be required for all regulated dams in order to legally impound water. No water shall be impounded by a dam or reservoir prior to issuance of a water storage permit. 73.11(2) Application for a dam construction permit shall constitute application for a water storage permit if the appropriate fee (as stated in 567—subrule 50.4(2)) is received with the application. 73.11(3) A water storage permit shall be issued upon a finding by the department that the dam and reservoir are safe to impound water within the conditions prescribed in the dam construction permit and the project meets the following conditions: a. The proposed storage is for a specified beneficial use such as human or livestock water supply, flood control, water quality, recreation, aesthetic value, erosion control, or low-flow augmentation. b. The impounding structure can be operated in a manner which will not adversely affect any applicable protected flow in the impounded stream. Protected flows are listed in 567—Chapter 52. c. For high hazard and significant hazard dams, the water storage permit will not be issued until as-built plans and a construction report have been submitted documenting that the dam has been constructed in general conformance with the approved plans and conditions of the dam construction permit and until the department has conducted an inspection of the dam. 73.11(4) A water storage permit may be modified, canceled, or suspended pursuant to Iowa Code section 455B.271. Conditions of cancellation or suspension of water storage permits shall include draining the lake with any available low-level drain and may include dewatering with other methods or breaching of the dam. 567—73.12() Reserved.567—73.13() Reserved.567—73.14() Reserved.DIVISION IIICRITERIA FOR APPROVAL567—73.15(455B) General criteria. 73.15(1) Required findings. The department shall approve the construction, repair, modification, abandonment, or removal of a dam only after finding that the project is designed in accordance with accepted engineering practice and methods, and in a manner consistent with the applicable department criteria in this rule. 73.15(2) Waiver. A request for a waiver to this chapter shall be submitted in writing pursuant to 561—Chapter 10. The contents of a petition for waiver shall include information pursuant to rule 561—10.9(17A,455A).567—73.16(455B) Lands, easements, and rights-of-way. An application for approval of a dam project shall include information showing the nature and extent of lands, easements, and rights-of-way that the applicant has acquired or proposes to acquire to satisfy the following criteria: 73.16(1) Ownership or perpetual easements shall be obtained for the area to be occupied by the dam embankment, spillways, and appurtenant structures, and the permanent or maximum normal pool. 73.16(2) Ownership or easements shall be obtained for temporary flooding of areas that would be inundated by the flood pool up to the top of dam elevation and for spillway discharge areas. 73.16(3) Easements covering areas affected by temporary flooding or spillway discharges shall include provisions prohibiting the erection and usage of structures for human habitation or commercial purposes without prior approval by the department. 73.16(4) As a condition of granting approval of a dam rated less than high hazard, the applicant may be required to acquire control over lands downstream from the dam as necessary to prevent downstream development which would affect the hazard classification of the dam.567—73.17(455B) Emergency action plans for high hazard dams. 73.17(1) Emergency action plan required. All high hazard dams shall be required to have an approved emergency action plan on file with the department. The plan shall include the following: a. A statement of purpose; b. A project description; c. An emergency response process; d. An emergency notification plan with flowchart; e. Responsibilities of all parties; f. A list of emergency preparedness and plan maintenance activities; and g. Inundation maps or another acceptable description of the inundated area. 73.17(2) Emergency action plan maintenance. The owner of the dam shall keep the emergency action plan up to date. Contact information shall be verified in the plan at least once a year, and an exercise shall be performed at least every five years. The owner of the dam shall keep an up-to-date copy of the emergency action plan on file with the department and with the local county emergency manager.567—73.18(455B) Encroachment on a confinement feeding operation structure. A dam shall not be constructed or modified so that the ordinary high water of the lake, pond, or reservoir created by the dam is closer than the following distances from a confinement feeding operation structure unless a secondary containment barrier according to 567—subrule 65.15(17) is in place. Measurement shall be from the closest point of the confinement feeding operation structure to the water edge of the lake, pond, or reservoir for a pool level at the elevation of the crest of the auxiliary spillway or at the top of dam elevation if the dam does not have an auxiliary spillway. 73.18(1) The minimum separation between a water source other than a major water source and a confinement feeding operation structure is 500 feet. 73.18(2) The minimum separation between a major water source and a confinement feeding operation structure is 1,000 feet or such distance that the structure is not located on land that would be inundated by Q100, whichever is greater.567—73.19(455B) Hydrologic and hydraulic criteria. 73.19(1) Hydrology and hydraulic calculations. Hydrology and hydraulic calculations shall be submitted in the design report documenting the methods and analysis followed in modeling software selection, inflow design hydrograph determination, and reservoir routing. The hydrology and hydraulics section of the design report shall include design references, inflow hydrograph, reservoir stage storage, and stage discharge curves and clearly identify peak inflows, peak discharges, and reservoir elevations for the design floods. 73.19(2) Design floods. The specified freeboard design floods in the table below shall be passed without overtopping of the dam or the dam shall be designed to withstand such overflow. The specified spillway design flood in the table below shall be passed by the principal spillway without need for operation of an auxiliary spillway unless the auxiliary spillway is designed such that erosion is not expected during operation.Hazard Potential Freeboard Design FloodSpillway Design FloodLow HazardQ100Q10Significant HazardQ1000Q50High HazardProbable Maximum FloodQ100 73.19(3) Precipitation amounts. The National Oceanic and Atmospheric Administration’s NOAA Atlas 14, Precipitation-Frequency Atlas of the United States, Volume 8, Version 2.0, dated 2013, shall be used for the Q10–Q1000 frequency storm events. NOAA Hydrometeorological Report No. 51, Probable Maximum Precipitation Estimates, United States, East of the 105th Meridian, dated 1978, shall be used for the probable maximum precipitation. 73.19(4) Spatial and temporal rainfall distributions and storm durations. The design report shall document the sources and methodologies for inflow hydrograph development. Distributions and durations that produce the highest impoundment water level shall be used for design. 73.19(5) Spillway discharge capacity. The spillway discharge capacity shall be sufficient to evacuate at least 80 percent of the volume of water temporarily stored during the principal spillway design flood within ten days. If this cannot be accomplished, the auxiliary spillway and freeboard design flood routings shall be made beginning with the impoundment level at the ten-day drawdown elevation. 73.19(6) Incremental consequence analysis. An inflow design flood based on an incremental consequence analysis may be developed and submitted to the department for review as an alternative to the design floods stated in subrule 73.19(2). The design flood selected using incremental consequence analysis is the flood above which there is a negligible increase in downstream water surface elevation, velocity, and consequences due to failure of the dam when compared to the same flood without failure. If the department concurs with the analysis, the freeboard design storm may be reduced. The minimum design flood for a high hazard dam shall be Q500. The minimum design flood for low hazard and significant hazard dams shall be Q100.567—73.20(455B) Spillway design requirements. 73.20(1) Spillways shall be designed to operate safely for the life of the structure and at the discharges and pressures that would be experienced under all flow conditions, including the freeboard design flood. 73.20(2) Spillways shall be provided with a means of piping and seepage control (e.g., drainage diaphragms), antivortex devices, trash racks, or other inlet debris control measures, and stable outlets capable of handling design exit flow velocities. 73.20(3) When a conduit is proposed to be used in a high hazard or significant hazard dam, detailed hydraulic, hydrologic, and structural computations supporting selection of the size and type of pipe to be used shall be provided by the applicant. 73.20(4) Detailed drawings and specifications relating to the installation of the pipe shall include, but not be limited to, construction measures that adequately address critical load bedding, backfill, compaction, joints, and seepage precautions related to installation of the pipe. 73.20(5) Structural computations and drawings shall be submitted for all proposed concrete structures. Drawing details, as necessary, shall be provided showing reinforcement, cutoffs, underdrains/filters, waterstops, construction joints, control joints, and any other details necessary to construct. 73.20(6) If an auxiliary spillway is proposed, it shall be analyzed, designed, and constructed adequately to establish and maintain stability during the passage of design flows without blockage or breaching. Open-channel auxiliary spillways shall have a minimum depth of 2 feet and minimum width of 10 feet and be designed with appropriate curvature and slopes to prevent excessive erosion. 73.20(7) A gated low-level outlet shall be provided for high hazard and significant hazard dams. The gated low-level outlet shall be capable of draining at least 50 percent of the permanent storage behind the dam within ten days. The pipe conduit shall be designed so that negative pressures will not occur at any point.567—73.21(455B) Embankment design requirements. 73.21(1) The applicant shall document the engineering standards and design references used for dam embankment design. Drawing details, as necessary, shall be provided showing embankment slopes, required additional fill for anticipated settlement, top width, foundation preparation, core trench or cutoff wall, fill materials and methodology, internal seepage controls, and embankment erosion protection. 73.21(2) A geotechnical report shall be submitted for high hazard and significant hazard dams documenting the evaluation of slope stability requirements, anticipated vertical settlement and horizontal elongation, seepage and underseepage potential, whether cathodic protection is needed for metal pipes, and proper construction practices for the soil types and conditions encountered. A stability evaluation shall include end-of-construction, steady-state seepage and sudden-drawdown conditions.567—73.22(455B) Operating plan. A written operating plan shall be prepared for any dam with gates or other movable structures that must operate or be operated during times of flood or to provide a minimum downstream release rate. Development of the operating plan is considered part of the design process. An operating plan shall include, at a minimum, the following items: 73.22(1) Responsibility. The operating plan shall outline and identify the necessary personnel who will be present to operate the equipment or, in the case of automatic equipment, to monitor it and ensure it is functioning properly. 73.22(2) Operating circumstances. The circumstances under which operation must occur shall be clearly defined, and a means shall be provided to ensure that operating personnel are present when necessary. 73.22(3) Method of operation. The means and methods by which operation is to be conducted shall be clearly defined and shall include, at a minimum, the following items: rates and sequences for opening or closure of gates, target water levels, and target flow rates. 73.22(4) Flood capacity. The operating plan shall allow for safe passage of all floods up to and including the freeboard design flood. Flood discharges through the dam greater than the design peak flood inflows into the impoundment shall not be permitted. 73.22(5) Low flow. The operating plan shall address low flow situations and shall specify a minimum release rate if required by the department and how the minimum release will be provided and maintained. 73.22(6) Equipment. Consideration shall be given to and allowance made for the possible failure of or malfunctioning of the equipment. 73.22(7) Discharge measurement. A means shall be provided to determine the discharge through the control structures, especially where operation is to maintain a minimum downstream flow. Stage discharge tables, streamflow gages or other means of obtaining discharge readings shall be provided. The settings of control structures shall be easily read.567—73.23(455B) Removal and abandonment of dams. Removal is the draining of the impoundment and removal of all or a significant portion of the embankment. A dam may be abandoned by rendering a dam nonimpounding by dewatering and filling the reservoir with solid materials and by diverting the natural drainage around the site. 73.23(1) Removal requirements. A dam removal project shall meet all of the following requirements: a. The dam removal plan shall clearly show removal limits and will demonstrate how the proposed construction will render the dam height and storage below thresholds in rule 567—73.3(455B); b. An impoundment dewatering plan shall be submitted that documents how the water will be released in a controlled manner and not cause upstream erosion or pose a flooding risk downstream; c. A dam breach plan shall be submitted that demonstrates how the breach process will not pose an increased risk compared to the existing structure; and d. A sediment disposition plan shall be submitted that provides for stabilization, release, or removal of stored sediment and shall demonstrate no significant adverse consequences on fish and wildlife habitat downstream from the proposed construction. 73.23(2) Abandonment requirements. An abandonment plan shall be submitted documenting the final site stabilization, evidence that the structure will no longer impound water or waterborne materials that would be released in the event of a dam failure, and evidence that the structure will not store water above the thresholds outlined in this chapter. 567—73.24() Reserved.567—73.25() Reserved.567—73.26() Reserved.567—73.27() Reserved.567—73.28() Reserved.567—73.29() Reserved.DIVISION IVDAM OWNERSHIP, INSPECTIONS, AND ENFORCEMENT567—73.30(455B) Dam owner responsibilities. 73.30(1) Operation and maintenance required. The intent to permanently cease or cause to cease all acts of construction, operation, and maintenance of a dam is prohibited. If any person wishes to be relieved of the responsibilities inherent in the ownership or control of a dam structure, those responsibilities shall be undertaken by another person through sale, transfer, or other means or the dam shall be removed. 73.30(2) Dam maintenance. The dam owner shall be required to maintain the dam and appurtenant structures in a safe condition. Maintenance shall include, but not be limited to, keeping earthen portions of the dam well vegetated, keeping trees and brush off the dam, preventing and repairing erosion, keeping spillways and drains free of obstructions, repairing structural deterioration, and performing required maintenance on mechanical appurtenances such as gates. The dam owner shall perform regular inspections to identify potential maintenance problems. 73.30(3) Dam repairs. The dam owner shall arrange for performance of engineering investigations when needed to evaluate potential safety problems. The dam owner shall perform any required repairs. When the department determines the need for follow-up inspections, the dam owner may be required to have a qualified person make inspections and prepare written inspection reports at specified intervals. 73.30(4) Maintenance inspections by dam owner. The dam owner of a high hazard or significant hazard structure shall be responsible for annual inspections and submission of written inspection reports. Annual inspection reports are due to the department on or before December 1. Inspection reports shall include: a. Maintenance work done since the previous annual report; b. Observed deficiencies on the dam or appurtenant structures; c. Remedial measures necessary and the method and schedule the dam owner proposes to correct the deficiencies found; and d. Changes in land use downstream of the dam.567—73.31(455B) Dam safety inspection program. 73.31(1) Scope of dam safety inspection program. Dams subject to inspection under these rules are regulated dams as defined in this chapter. The scope of department staff field inspections normally is limited to visually observable features of dams and their appurtenant structures. 73.31(2) Purpose of dam safety inspection program. The general purposes of inspections are as follows: to evaluate the construction, operation, and maintenance of dams; to identify observable deficiencies in dams or appurtenant structures; and to identify other floodplain structures or uses which may affect the hazard potential of a dam or use of an associated impoundment. Inspection reports shall be used by the department in determining whether a proposed dam project complies with applicable criteria and to determine whether any of the following conditions exist: a. A permit violation; b. A violation of law which requires that a permit be obtained; or c. A condition which constitutes a public nuisance by causing unacceptable risk of injury to the public health, safety or welfare. 73.31(3) Inspections of significant hazard and high hazard dam structures. a. Inspection prior to construction.A field inspection may be made by the department to determine the hazard potential of the dam and verify the location and plan information upon receipt of an application for approval of construction or modification of a dam. b. Inspection during construction.Construction or modification of a dam structure shall be inspected by an engineer licensed in the state of Iowa or by a trained inspector under the supervision of the engineer. After completion of construction or modification of a dam structure, the engineer shall prepare and submit a construction report, as-built plans, and a statement that in the engineer’s professional opinion the work was conducted in general conformance with the approved plans and specifications. c. Acceptance inspections.When construction of a dam or modifications thereto is completed, and as-built plans and a construction report have been submitted, the department shall make a field inspection to determine whether visually observable features of the dam and appurtenant structures are consistent with the approved plans and the conditions of the dam construction permit. The department shall thereafter issue the water storage permit or a letter stating that additional work is required for acceptance of construction. Closure of the low-level outlet gate shall not begin until the department has issued the water storage permit. d. Periodic inspections after acceptance.High hazard structures shall be inspected at least once every two years by the department. Significant hazard structures shall be inspected at least once every five years by the department. Structures poorly maintained or those that require repairs identified by the department shall be inspected more frequently until required maintenance and repairs are completed. The department shall notify the dam owner or agent before each inspection. Each inspection shall assess the condition of the dam and appurtenant structures and the adequacy of operation and maintenance practices. The inspection may include reevaluation of the ability of the dam and appurtenant structures to adequately withstand the hydraulic loadings and pass the appropriate design floods. 73.31(4) Inspections of low hazard dams. a. Preliminary site evaluation.The department may evaluate the site of a proposed dam from maps and aerial photographs in lieu of a field inspection. b. Inspection during construction.The applicant shall be responsible for providing supervision of construction by a person experienced in the type of construction involved. c. Inspection of dams with operating plans.Low hazard dams with operating plans shall be inspected by the department at least once every five years. Any problems noted shall be reported to the dam owner in writing. d. General inspections of low hazard dams.Low hazard dams may be periodically inspected by the department to determine their condition. Any serious problems noted shall be reported to the dam owner in writing. 73.31(5) Special inspections and investigations. Special inspections and investigations shall be made by department personnel in the following instances: a. Upon notice or evidence of unauthorized construction; b. Upon notice or evidence that a dam has failed or is in a condition where failure appears likely, and public damages would result from such failure; or c. Upon notice or evidence that the hazard classification of a dam may no longer be valid due to changes in downstream conditions. 73.31(6) Inspections by others. At the discretion of the department, an inspection report submitted by a qualified individual may be accepted in lieu of an inspection and report by the department. 73.31(7) Inspection reports. The department shall prepare a report of each inspection and provide a copy to the dam owner. The report shall state the deficiencies observed during the inspection. If appropriate, the report shall detail the actions required to address the noted deficiencies.567—73.32(455B) Raising or lowering of impoundment levels. 73.32(1) When approval is required. A separate approval is required to temporarily or permanently raise or lower the normal level of water impounded by a regulated dam unless the raising and lowering has been authorized as part of an approved operating plan. Such approval shall be in the form of a letter authorizing the lowering or raising and may be conditioned upon various requirements. 73.32(2) Information required for approval. The applicant shall submit the following information: a. The date when the raising or lowering will be initiated, the level to which the impoundment will be raised or lowered and, if the raising or lowering is temporary, the anticipated date when the normal water level will be restored; and b. Evidence that the discharge rate during lowering will not exceed the capacity of the stream channel below the dam. 73.32(3) Criteria for approval. The department’s review of the raising or lowering of the impoundment includes determining the effects on flooding or flood control for any proposed works and adjacent lands and property; on the wise use and protection of water resources; on the quality of water; on fish, wildlife, and recreational facilities or uses; and on all other public rights and requirements. 73.32(4) Conditions. Conditions of approving the temporary or permanent raising or lowering of water levels may include: a. Giving prior notice to the director of the local county conservation board or local enforcement officer for the department; b. Publicizing the lowering locally in order to notify downstream users, persons who have boats or docks on the impoundment and other persons whose use of the impoundment might be affected; and c. Maintaining a minimum release rate as determined by the department during refilling.567—73.33(455B) Unsafe dams. 73.33(1) Procedures for designation of a dam as unsafe. a. Department report.If after inspection or other investigation the department determines that a dam is unsafe, a report shall be prepared. Copies of the report shall be provided to the dam owner and any other person whom the report identifies as responsible for the unsafe condition of the dam. The report shall identify the problems which cause the dam to be unsafe and recommend action to remedy the unsafe condition. b. Opportunity for comment.The department shall provide the dam owner or other responsible person with a reasonable opportunity to comment on the department report considering the degree and imminence of hazard identified in the department report. 73.33(2) Criteria for designating a dam as unsafe. Designation of a dam as unsafe shall be based on one or more of the following findings: a. The dam has serious deficiencies in its design, construction, use, maintenance, or physical condition which would contribute to failure or otherwise increase flood damages; b. A high hazard or significant hazard dam has inadequate spillway capacity for the size and hazard potential of the dam. 73.33(3) Department action concerning an unsafe dam. After completion of the procedures for designating an unsafe dam, the department shall issue an initial decision which may order remedial work depending on the degree and imminence of hazard caused by the unsafe condition. Remedial work may include draining of the impoundment or removal of any structure determined to constitute a public nuisance. Procedures for appealing an initial decision are the procedures in 567—Chapter 7. If the initial decision requires emergency remedial work to abate an imminent danger of failure which would cause significant public damages, the director of the department may request the assistance of the attorney general to seek an appropriate judicial order compelling performance of emergency remedial work. These rules are intended to implement Iowa Code chapter 455B, division III, part 4. [Filed 8/17/21, effective 10/13/21][Published 9/8/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/8/21.ARC 5897CEnvironmental Protection Commission[567]Adopted and FiledRule making related to mercury-added switch recovery from end-of-life vehicles
The Environmental Protection Commission (Commission) hereby rescinds Chapter 215, “Mercury-Added Switch Recovery from End-of-Life Vehicles,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 455B.806.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 455B.801 to 455B.809.Purpose and Summary This rule making rescinds and reserves Chapter 215. The Mercury-Free Recycling Act, passed in 2006, required auto manufacturers to implement and fund a system to recover mercury switches from scrap vehicles before they were crushed or shredded for recycling. Mercury switches were used in convenience lighting (hood and trunk lights) in vehicles as recently as 2002. The Mercury-Free Recycling Act included a sunset date of July 1, 2020, based on the expectation that the vast majority of vehicles containing the switches would be scrapped by then. The sunset deadline was not extended by the Legislature. As such, the Commission no longer has the authority to enforce this program. Accordingly, the rules must be rescinded. Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 16, 2021, as ARC 5676C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by the Commission on August 17, 2021.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. A copy of the fiscal impact statement is available from the Department of Natural Resources (Department) upon request. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found. A copy of the jobs impact statement is available from the Department upon request.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 561—Chapter 10.Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date This rule making will become effective on October 13, 2021. The following rule-making action is adopted:
ITEM 1. Rescind and reserve 567—Chapter 215. [Filed 8/17/21, effective 10/13/21][Published 9/8/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/8/21.ARC 5889CHuman Services Department[441]Adopted and FiledRule making related to home- and community-based services eligibility
The Human Services Department hereby amends Chapter 77, “Conditions of Participation for Providers of Medical and Remedial Care,” and Chapter 78, “Amount, Duration and Scope of Medical and Remedial Services,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code chapter 249A.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapter 249A.Purpose and Summary The purpose of these amendments to the Home- and Community-Based Services (HCBS) Habilitation program is to adopt the Level of Care Utilization System (LOCUS) for adults ages 19 and older and Child and Adolescent Level of Care Utilization System (CALOCUS) for youth ages 16 to 18 for the purposes of the needs-based eligibility determination, person-centered service planning, and HCBS tier authorization. These amendments also add provisions related to intensive residential habilitation services as defined in rule 441—25.1(331), adopt training criteria for direct service staff providing HCBS services, and clarify the scope of services included in Home-Based Habilitation (HBH).Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 16, 2021, as ARC 5706C. The Department received 26 comments and questions from five respondents on the proposed amendments. The comments and questions and the corresponding responses from the Department are divided into three topic areas: (1) provider standards, (2) needs-based eligibility and LOCUS/CALOCUS implementation, and (3) general comments. HCBS habilitation and HBH provider standards Comment 1: Does the training proposed in the rule packet need to be competency-based? Response 1: The training required in paragraph 77.25(8)“b” does not have to be competency-based; however, that is best practice. Comment 2: What is the proposed effective date for the rule changes? Response 2: The effective date of these adopted amendments is November 1, 2021. Comment 3: How do we approach staff training if a person served moves from a “home-based habilitation” service to an “intensive residential habilitation” service? Do the staff need an additional 48 hours of training? Twenty-four hours of training since they already had their initial 24 hours, or just an additional 12 hours of training on top of the 12 hours they need to have annually? Response 3: Staff training is not affected if a member moves from HBH services to intensive residential habilitation services. Staff that will be delivering intensive residential habilitation services must meet the criteria of subparagraph 77.25(8)“b”(3), which states that a person providing direct support to members receiving intensive residential habilitation services shall complete 48 hours of training within the first year of employment in mental health and multi-occurring conditions pursuant to subrule 25.6(8). Comment 4: How will these training rules apply to existing staff? Will the staff be grandfathered in, or will they need to take 24 or 48 hours of training within a year of implementation of the rule? How do the new training expectations impact current staff? Will they need the initial 24 or 48 hours of training in the first year following rule implementation or default to the 12-hour annual training immediately? Response 4: Existing staff will be expected to have completed the initial 24 or 48 hours of training, as applicable, within 12 months of November 1, 2021. When completing the 2022 HCBS provider self-assessment, the provider will attest to compliance with the HBH training requirements and the intensive residential habilitation training requirements, if applicable. In addition, during future HCBS quality oversight desk reviews and targeted reviews, HBH providers will be expected to show evidence of completion of the required training based on the services being delivered by the employee as documented in each employee’s training file. Comment 5: Do training expectations apply solely to the HBH tier services, or will they additionally apply to staff in employment and day habilitation services as well? Response 5: The training requirements in paragraph 77.25(8)“b” are applicable to HBH services only. Day habilitation service provider training requirements are included in paragraph 77.25(7)“b,” and the supported employment service provider training requirements are listed in paragraph 77.25(10)“c.” Comment 6: Will training types including webinars, seminars and video tutorials that apply to the approved topics be an appropriate training method for staff, or is the expectation that trainings be such that staff must show competency for the topic? Response 6: Providers may choose from a wide variety of training modalities to deliver the required training. Comment 7: Do staff providing services to persons served who are receiving services in Intensive I, II, III, and IV need to have 48 hours of training within the first year of employment? Or is this just needed for staff working with persons served who are approved for the new level of service Intensive IV? Response 7: When a staff person is delivering HBH services, that employee must be provided training in accordance with subparagraphs 77.25(8)“b”(4) and 77.25(8)“b”(5). When a direct support professional is providing intensive residential habilitation – Intensive IV services, that employee must be provided training in accordance with subparagraph 77.25(8)“b”(3). Since publication of the Notice of Intended Action, the Department has revised subparagraph 77.25(8)“b”(3) in Item 2 by adding a requirement that 24 hours of training be completed each year after the employee’s first year of employment. Comment 8: Paragraphs 77.25(8)“c” and “d.” Do these line items pertain to only the “intensive residential service homes” as being “designed to serve up to four persons,” or do these pertain to any home providing HBH services? Response 8: Paragraphs 77.25(8)“c” and “d” apply to any home where HCBS habilitation or HCBS waiver services are provided. These paragraphs implement Iowa Code section 135C.6. Comment 9: Subparagraph 77.25(8)“b”(1) states that a person providing direct support shall be at least 18 years old and have a high school diploma or its equivalent. This field is drastically short staffed, and this rule may continue to prohibit a provider’s ability to hire staff. Is it necessary to have a high school diploma or its equivalent? What exactly does “its equivalent” mean? With the increase in training hours to provide HBH, it appears that providers will be able to train on the skills that are necessary to provide these services regardless if a person has a high school diploma or its equivalent. Response 9: The age and education requirements for a direct support professional that will be delivering the HBH services set the minimum expectation for the staff. A “high school diploma or equivalent” means having either a high school diploma or a GED certificate. Due to the level of maturity needed to support adults with functional limitations as a result of a diagnosis of serious mental illness, it was determined that the services should be delivered by an adult. If a provider wishes to employ someone who does not meet the minimum requirements under subparagraph 77.25(8)“b”(1), the provider may seek an exception to policy to employ the person in the delivery of HBH services. Comment 10: Numbered paragraph 78.27(7)“c”(1)“1.” What exactly does “medically managed residential services” mean? Response 10: Once generated, the LOCUS score is used to recommend a person for a level of care. There are seven different levels of care described in the LOCUS that differ according to:
Rule making related to child and spousal support and parenting time
The Human Services Department hereby amends Chapter 99, “Support Establishment and Adjustment Services,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 252B.7A.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 252B.7A.Purpose and Summary This rule making is necessitated by recent changes to 45 CFR Section 302.56 for guidelines for setting child support awards and to 45 CFR Section 303.4 for establishment of support obligations. To conform to these federal regulations, this rule making updates the Child Support Recovery Unit’s current rules for determining income to consider a parent’s specific circumstances when evidence of income is limited. The federal Family Support Act of 1988 required each state to maintain uniform child support guidelines and criteria and to review the guidelines and criteria at least once every four years. The Iowa General Assembly entrusted the Iowa Supreme Court with this responsibility in Iowa Code section 598.21B. These amendments update Chapter 99 to conform to upcoming changes to the Iowa Supreme Court guidelines. This rule making adds the term “parenting time” in reference to the rights awarded a parent to time with the parent’s child. The term “parenting time” is becoming the more preferred terminology, as compared to the term “visitation,” and there has been recent proposed legislation to replace the term throughout the Iowa Code.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 16, 2021, as ARC 5709C. No public comments were received; however, the Department has made some minor corrections since publication of the Notice to ensure the rules adopted are consistent throughout the chapter. To ensure conformity, changes were made in the introductory paragraph of subrule 99.1(4) in Item 1 and subrule 99.109(2) in Item 7, and they now read as follows: “99.1(4) Use of occupational wage rate information or median income for parents on the CSRU caseload. CSRU shall use occupational wage rate information or median income for parents on the CSRU caseload to determine a parent’s income when the parent has failed to return a completed financial statement when requested, and when complete and accurate income information from other readily available sources cannot be secured. If a parent’s most recent residential address is in Iowa, CSRU shall use Iowa workforce development regional data to determine income. If a parent’s most recent residential address is in another state, the District of Columbia, or Puerto Rico, CSRU shall use wage data from the place of the parent’s most recent residence to determine income. For all other cases, CSRU shall use Iowa statewide occupational wage rate or median income for parents on the CSRU caseload to determine income.” “99.109(2) Orders eligible for suspension. “a. The unit shall assist an obligor in suspending support for a child under this part only when there is no order in effect regarding legal custody, physical care, visitation, or parenting time for the child. “b. If an order exists that contains language regarding legal custody, physical care, visitation, or parenting time for the child, the unit shall deny the suspension request.”Adoption of Rule Making This rule making was adopted by the Council on Human Services on August 12, 2021.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 441—1.8(17A,217).Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date This rule making will become effective on January 1, 2022. The following rule-making actions are adopted:
ITEM 1. Amend rule 441—99.1(234,252B,252H) as follows:441—99.1(234,252B,252H) Income considered. The child support recovery unit shall consider all regularly recurring income of both legal parents to determine the amount of the support award in accordance with the child support guidelines prescribed by the Iowa Supreme Court.Spousal support shall be considered as specified in the Iowa Supreme Court guidelines, and prior obligation spousal support actually paid or received shall be calculated in the same manner as the deductions for support in subrule 99.2(4). These rules on child support guidelines shall not apply if the child support recovery unit is determining the support amount by a cost-of-living alteration as provided in Iowa Code chapter 252H, subchapter IV. 99.1(1) Exempt income. The following income of the parent is exempt in the establishment or modification of support: a. Income received by the parent under the family investment program (FIP). b. Income or other benefits derived from public assistance programs funded by a federal, state, or local governmental agency or entity that are listed in rule 441—41.27(239B) as exempt from consideration in determining eligibility under FIP. c. Income such as child support, social security dependent benefits received by a parent for a child because of the other parent’s disability, and veteran’s dependent benefits received by a parent on behalf of a child. d. Stepparent’s income. e. Income of a guardian who is not the child’s parent. f. Income of the child’s siblings. g. Earned income tax credit. 99.1(2) Determining income. Any of the following may be used in determining a parent’s income for establishing or modifying a support obligation: a. Income reported by the parent in a financial statement. b. Income established by any of the following: (1) Income verified by an employer or other source of income. (2) Income reported to the department of workforce development. (3) For a public assistance recipient, income reported to the department of human services caseworker assigned to the public assistance case. (4) Other written documentation that identifies income. c. Income as determined through occupational wage rate information published by the Iowa workforce development department or other state or federal agencies. d. The median income for parents on the CSRU caseload, calculated annually. e. Social security dependent benefits. Social security dependent benefits paid for a child because of a parent’s disability shall be included in the disabled parent’s income. Social security dependent benefits paid for a parent due to the other parent’s disability shall be included in the receiving parent’s income. 99.1(3) Verification of income. Verification of income and allowable deductions from each parent shall be requested. a. Verification of income may include, but is not limited to, the following: (1) Federal and state income tax returns. (2) W-2 statements. (3) Pay stubs. (4) Signed statements from an employer or other source of income. (5) Self-employment bookkeeping records. (6) Award letters confirming entitlement to benefits under a program administered by a government or private agency such as social security, veterans’ or unemployment benefits, military or civil service retirement or pension plans, or workers’ compensation. b. Cases in which the information or verification provided by a parent is questionable or inconsistent with other circumstances of the case may be investigated. If the investigation does not reveal any inconsistencies, the financial statement and other documentation provided by the parent shall be used to establish income. c. If discrepancies exist in the financial statement provided by the parent and additional income information is not available, the child support recovery unit may: (1) Request a hearing before the court if attempting to establish a support order through administrative process. (2) Conduct discovery if a parent places the matter before the court by answering a petition or requesting a hearing before the court. (3) When attempting to establish a default order, provide the court with a copy of the parent’s financial information and the reasons the information may be questionable. d. If the child support recovery unit is unable to obtain verification of a parent’s income, the financial statement provided by the parent may be used to establish support. 99.1(4) Use of occupational wage rate information or median income for parents on the CSRU caseload. OccupationalCSRU shall use occupational wage rate information or median income for parents on the CSRU caseload shall be used to determine a parent’s income when the parent has failed to return a completed financial statement when requested, and when complete and accurate income information from other readily available sources cannot be secured.If a parent’s most recent residential address is in Iowa, CSRU shall use Iowa workforce development regional data to determine income. If a parent’s most recent residential address is in another state, the District of Columbia, or Puerto Rico, CSRU shall use wage data from the place of the parent’s most recent residence to determine income. For all other cases, CSRU shall use Iowa statewide occupational wage rate or median income for parents on the CSRU caseload to determine income. a. Occupation known.WhenCSRU can reasonably ascertain thecurrent or last-known occupation of a parent can be determined through a documented source including, but not limited to, Iowa workforce development or the National Directory of New Hires,CSRU shall use occupational wage rate information shall be used to determine income. When the last-known occupation of a parent cannot be determined through a documented source, information may be gathered from the other parent and occupational wage rate information applied. Wage rate information shall be converted to a monthly amount in accordance with subrule 99.3(1). b. Occupation unknown.WhenCSRU cannot reasonably ascertain thecurrent or last-known occupation of a parent is unknown, CSRU shall estimatedetermine the income of a parent using the median income amount for parents on the CSRU caseload, based upon the parent’s most recent residential address. 99.1(5) Self-employment income. A self-employed parent’s adjusted gross income, rather than the net taxable income, shall be used in determining net income. The adjusted gross income shall be computed by deducting business expenses involving actual cash expenditures that affect the actual dollar income of the parent. a. A person is self-employed when the person: (1) Is not required to report to the office regularly except for specific purposes such as sales training meetings, administrative meetings, or evaluation sessions. (2) Establishes the person’s own working hours, territory, and methods of work. (3) Files quarterly reports of earnings, withholding payments, and FICA payments to the Internal Revenue Service (IRS). b. In calculating net income from self-employment, the child support recovery unit shall deduct only those items allowed by the child support guidelines. Amounts from a prior period claimed as net losses shall not be allowed as deductions. c. Net profits from self-employment may be determined through a review of self-employment bookkeeping records, sales and expenditure records, quarterly reports filed with the IRS, previous year’s federal or state income tax returns, or other documentation. The parent shall provide records of bookkeeping, sales, and expenditures for the most recent 12-month period or, if the self-employment is less than 12 months old, for the period since the self-employment began. 99.1(6) Fluctuating income. A person has a fluctuating income when the calculated gross income or the adjusted gross income, as defined in subrule 99.1(5), for the current year varies from the gross or adjusted gross income of the previous year by more than 20 percent. a. If requested, the child support recovery unit shall average the income of a person whose income fluctuated because the nature of the person’s occupation is of a type that normally experiences fluctuations in income. b. In determining a person’s average income, the following procedures shall be used: (1) For non-self-employed persons, the child support recovery unit shall estimate the gross income for the current year and add the amount to the gross income from relevant years that would accurately depict fluctuations in the person’s income. The unit shall divide this sum by the number of years added, prior and current, to arrive at an average gross annual income. The unit shall divide the average gross annual income by 12 to arrive at the person’s average gross monthly income. (2) For income from self-employment, the child support recovery unit shall compute the adjusted gross annual income as defined in subrule 99.1(5) for the relevant years that would accurately depict fluctuations in the person’s income. The unit shall use the adjusted gross annual income to compute the average adjusted gross monthly income in the same manner as the computation of average gross monthly income in 99.1(6)“b”(1). ITEM 2. Amend rule 441—99.2(234,252B) as follows:441—99.2(234,252B) Allowable deductions. The deductions specified in the supreme courtIowa Supreme Court child support guidelines shall be allowed when determining the amount of income subject to application of the guidelines. The parent claiming the deduction shall provide the documentation necessary for computing allowable deductions. Allowable deductions are: 99.2(1) Federal and state income tax. a. The child support recovery unit shall calculate the amount of the deduction for federal and state income tax as specified in the Iowa Supreme Court guidelines. b. The unit shall calculate the amount of the deduction for self-employed persons with fluctuating incomes, as defined in subrule 99.1(6), by computing the person’s averaged income and applying the method of calculating a tax deduction as required by Iowa Supreme Court guidelines. 99.2(2) Social security and Medicare tax deductions, mandatory pensions, and union dues as specified in the Iowa Supreme Court guidelines. 99.2(3) Mandatory occupational license fees as specified in the Iowa Supreme Court guidelines. 99.2(4) Actual payments of child and spousal support pursuant to a prior court or administrative order. The date of the original court or administrative order, rather than the date of any modifications, shall establish a prior order under this subrule. Support paid under an order established subsequent to the order being modified shall not be deducted. All support payments shall be verified before being allowed as a deduction. The child support recovery unit shall calculate deductions for support as follows: a. In establishing prior support payments, the child support recovery unit shall verify payments made for the 12 months preceding the month in which the amount of support for the new order is determined. If the support obligation is less than one year old, the child support recovery unit shall verify each monthly payment since the beginning of the obligation. b. If the obligation is one year old or older, the child support recovery unit shall add together all verified amounts paid during the past 12 months up to the total of the current support obligation that accrued during this 12-month period, and divide by 12. All amounts collected shall be included, regardless of the source. c. If the support obligation is less than one year old, the child support recovery unit shall add together the verified amounts paid since the obligation began up to the total of the current support obligation that accrued during this period, and divide by the number of months that the obligation has existed. d. When a parent has more than one prior support order, the child support recovery unit shall calculate the allowable deduction for each obligation separately, and then add the amounts together to determine the parent’s total allowable deduction. 99.2(5) Actual medical support paid pursuant to a court order or administrative order in another orderHealth insurance premium costs for other children, notin the pending matter, as specified in the Iowa Supreme Court guidelines. All medical support paymentsHealth insurance premium costs shall be verified before being allowed as a deduction and shall be calculated in the same manner as the deductions for support in subrule 99.2(4). 99.2(6) Actual child care expenses during the custodial parent’s employment, less the applicable federal income tax creditas specified in the Iowa Supreme Court guidelines. The child support recovery unit shall determine the amount of the child care deduction as follows: a. Actual child care expenses related to the custodial parent’s employment shall be verified by a copy of the custodial parent’s federal or state income tax return or by a signed statement from the person or agency providing the child care. b. Only the amount of reported child care expenses in excess of the amount allowed as “credit for child and dependent care expenses” for federal income tax purposes shall be allowed as a deduction in determining the custodial parent’s net income. c. In determining the deduction allowed to the custodial parent for child care expenses due to employment, the following procedures shall be used: (1) If the custodial parent provides a copy of a federal income tax return for the current tax processing year and the amount is consistent with the current financial circumstances of the parent, the child support recovery unit shall use the amount reported as “credit for child and dependent care expenses.” (2) If income tax information is not available, or if the parent indicates or there is reason to believe that the amount stated in the return is no longer representative of the parent’s financial conditions or child care expenses, the child support recovery unit shall determine the allowable deduction for child care expenses for federal income tax purposes using the custodial parent’s income only. d. The child support recovery unit shall compute the child care deduction as follows: (1) Divide the amount of child care expense the parent may claim as a deduction for federal income tax purposes by 12 to arrive at a monthly amount. (2) If the child care expense reported on the financial statement is not a monthly amount, convert the reported amount to an equivalent monthly figure and round the figure to two decimal places. (3) Subtract the amount the parent may claim as “credit for child and dependent care expenses” for federal income tax from the amount of child care expenses reported on the financial statement. The difference is the amount allowed for a deduction in determining income for child support. 99.2(7) Qualified additional dependent deduction (QADD). The qualified additional dependent deduction is the amount specified in the supreme courtIowa Supreme Court guidelines as a deduction for any child for whom parental responsibility has been legally established as defined by the child support guidelines. However, this deduction may not be used for a child for whom the parent may be eligible to take a deduction under subrule 99.2(4). a. The deduction for qualified additional dependents may be used: (1) For dependents of the custodial or noncustodial father or mother, whether in or out of the parent’s home. The father may establish the deduction by providing written verification of a legal obligation to the children through one of the actions enumerated in the guidelines. The mother may establish the deduction by providing written verification of a legal obligation to the children, including the mother’s statement. (2) In the establishment of original orders. (3) In the modification of existing orders. The deduction may be used in an upward modification. The deduction cannot be used to affect the threshold determination of eligibility for a downward modification, but may be used after the threshold determination is met. b. Reserved. 99.2(8) Cash medical support, either ordered in the pending matter or for other children, not in the pending matter, as specified in the Iowa Supreme Court guidelines.All cash medical support payments for other children, not in the pending matter, shall be verified before being allowed as a deduction and shall be calculated in the same manner as the deductions for support in subrule 99.2(4). ITEM 3. Amend subrule 99.4(5) as follows: 99.4(5) Extraordinary visitation adjustmentAdjustment for extraordinary visitation or parenting time. TheCSRU shall calculate an extraordinary visitation adjustment is aor parenting time credit as specified in the supreme courtIowa Supreme Court guidelines. The credit shall not reduce the child support below the amount required by the supreme courtIowa Supreme Court guidelines.The extraordinary visitation adjustmentor parenting time credit shall be given if all of the following apply: a. There is an existing order for the noncustodial parent that meets the criteria for extraordinary visitationor parenting time in excess of 127 overnights per year on an annual basis for the child for whom support is sought. The order granting visitationor parenting time can be a different order than the child support order. If a controlling order is determined pursuant to Iowa Code chapter 252K and that controlling support order does not meet the criteria for extraordinary visitationor parenting time, there is another order that meets the criteria. b. The noncustodial parent has provided CSRU with a file-stamped or certified copy of the order. c. The court has not ordered equally shared physical care. ITEM 4. Amend subrule 99.69(4) as follows: 99.69(4) The request is based entirely on issues such as custody,or visitation, or parenting time rights, which are not directly related to child support. ITEM 5. Amend paragraph 99.85(1)"d" as follows: d. The unit may also use the most recentoccupational wage rate information published by the department of workforce development or the median income for parents on the unit caseload to estimatedetermine the net earnedgross income of a parent when a parent has failed to return a completed financial statement when requested and complete and accurate information is not readily available from other sources. ITEM 6. Amend subrule 99.91(1) as follows: 99.91(1) Nonsupport issues. The request is based entirely on issues such as custody,or visitation, or parenting time rights. ITEM 7. Amend subrule 99.109(2) as follows: 99.109(2) Orders eligible for suspension. a. The unit shall assist an obligor in suspending support for a child under this part only when there is no order in effect regarding legal custody, physical care, visitation, or other parenting time for the child. b. If an order exists that contains language regarding legal custody, physical care, visitation, or other parenting time for the child, the unit shall deny the suspension request. [Filed 8/13/21, effective 1/1/22][Published 9/8/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/8/21.ARC 5890CHuman Services Department[441]Adopted and FiledRule making related to foster home insurance fund
The Human Services Department hereby amends Chapter 158, “Foster Home Insurance Fund,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 237.13.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 237.13 as amended by 2021 Iowa Acts, House File 891, section 54.Purpose and Summary The Foster Home Insurance Fund (Fund) was established to provide liability coverage to licensed foster parents who have a child placed in their home. Pursuant to Iowa Code section 237.13, the Fund is created within the Office of the Treasurer of State to be administered by the Department of Human Services. The Fund consists of all moneys appropriated by the General Assembly for deposit into the Fund. Iowa Code section 237.13 was updated in the 2020 Legislative Session to state that the Department shall use moneys in the Fund to reimburse foster parents for the cost of purchasing foster care liability insurance and to perform the administrative functions necessary to carry out the Iowa Code section. The initial plan was for the Department to offer financial assistance for licensed foster parents to purchase or offset liability insurance. Following extensive research, it was determined that this was not an existing coverage offered by insurance companies. Therefore, the Department worked with the Legislature to update Iowa Code section 237.13 during the 2021 Legislative Session to add language to the Iowa Code to reflect that moneys in the Fund shall be used to provide home and property coverage for foster parents to cover damages resulting from the actions of a child residing in a foster home. In addition, language was added to the Iowa Code to allow the Department to establish limitations of liability for individual claims as deemed reasonable by the Department. The Department has contracted with a private organization to perform the administrative functions required of the Fund and sign up all licensed foster parents to ensure that there is coverage in the event foster parents need to submit a claim.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 16, 2021, as ARC 5707C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by the Council on Human Services on August 12, 2021.Fiscal Impact The annual amount budgeted for the Foster Home Insurance Fund is $675,000. Changes to the annual limit and an increased deductible could reduce costs, so it is possible the full amount will not be utilized.Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 441—1.8(17A,217).Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date This rule making will become effective on November 1, 2021. The following rule-making actions are adopted:
ITEM 1. Renumber rules 441—158.1(237) to 441—158.5(237) as 441—158.3(237) to 441—158.7(237). ITEM 2. Adopt the following new rule 441—158.1(237):441—158.1(237) Applicability. This chapter specifically relates to the foster home insurance fund established by Iowa Code section 237.13. A foster home insurance fund shall be developed by the department. The fund shall provide reimbursement for any property damages caused by the acts of a foster child residing in a foster home. The department may contract with another state agency or private organization to perform the administrative functions necessary to carry out this rule. ITEM 3. Adopt the following new rule 441—158.2(237):441—158.2(237) Definitions. "Department" means the Iowa department of human services. "Foster family home" or "licensed foster home" means an individual, as defined in Iowa Code section 237.1(7), who is licensed to provide child foster care. "Personal property" means any movable thing of value which is owned, rented, or leased by a person and not recognized as real property. "Real property" means anything owned, leased, or rented which is permanently affixed to, or built upon, a piece of land. Real property is best characterized as property that does not move or that is attached to the land. "Third-party property" means property belonging to any person or entity other than the foster family or foster child. ITEM 4. Amend renumbered subrule 158.3(1) as follows: 158.3(1) Eligible foster family claims. The foster home insurance fund shall pay the following within the limits defined in Iowa Code section 237.13, subsections 3 and 4237.13(2): a. Valid and approved claims of family foster care children, their parents, guardians or guardians ad litema licensed foster family home. b. Compensation to licensed foster families forpersonal or real property damage, at replacement cost, or for bodily injury, as a result of the activities of the family foster care child.Coverage also extends to third-party property damages caused by actions of the foster child. c. Reasonable and necessary legal fees incurred by licensed foster families in defense of civil claims filed pursuant to Iowa Code section 237.13, subsection 7, paragraph “d,” and any judgments awarded as a result of these claims. The reasonableness and necessity of legal fees shall be determined by the department or its contract agent.Non-property-based liability, bodily injury, sexual abuse or molestation, auto liability, and professional liability are not covered. ITEM 5. Amend renumbered rule 441—158.4(237) as follows:441—158.4(237) Payment limits. The fund is not liable for the first $100 for all claims arising out of one or more occurrences during a fiscal year related to a single foster home$150 per claim deductible per family. Each claim shall be limited to one incident/occurrence. The fund is not liable for damages in excess of $300,000$5,000 for all claims arising out of one or more occurrences during a fiscal year related to a single home.Claims for losses related to bedbugs or other insect infestations will have an annual sublimit set by the department. ITEM 6. Amend renumbered rule 441—158.5(237) as follows:441—158.5(237) Claim procedures. Claims against the fund shall be filed with the department’s contractor. If the department does not have a contractor, claims shall be filed on Form 470-2470, Foster Home Insurance Fund Claim.Claims shall be filed on Form 470-5659, Foster Home Property Fund Notice of Loss Form. The decision to approve or deny the claim shall be made by the department or its contractor and the notice mailed or given to the claimant within 180 days of the date the claim is received. ITEM 7. Amend renumbered rule 441—158.6(237) as follows:441—158.6(237) Time frames for filing claims. Claims by children who were under the age of 18 at the time of the occurrence shall be submitted within two yearssix months of the date of the occurrence or after the child’s eighteenth birthday, but before the child’s nineteenth birthday. 158.6(2) Claims by persons who were aged 18 or older at the time of the occurrence shall be submitted within two years of the occurrence. 158.6(3) Claims by foster parents pursuant to paragraph 158.1(1)“c” for legal fees or court-ordered judgments shall be submitted within two years of the date of the judgment. ITEM 8. Amend 441—Chapter 158, implementation sentence, as follows: These rules are intended to implement Iowa Code section 237.13 as amended by 2011 Iowa Acts, Senate File 482, division II2021 Iowa Acts, House File 891. [Filed 8/12/21, effective 11/1/21][Published 9/8/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/8/21.ARC 5891CHuman Services Department[441]Adopted and FiledRule making related to child care assistance provider reimbursement rates
The Human Services Department hereby amends Chapter 170, “Child Care Services,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 234.6 and 2021 Iowa Acts, House File 891.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 234.6 and 45 CFR Part 98.Purpose and Summary The Department is revising the child care assistance provider reimbursement rate ceiling tables. This is being done to comply with federal requirements (45 CFR Part 98) that states must use the most recent market rate survey in establishing child care reimbursement rates. Iowa’s most recent market rate survey was conducted in December 2020. Reimbursement rates for providers of child care assistance are increased to at least the 50th percentile of the 2020 market rate for child care providers. The base rates for the Quality Rating System (QRS) bonuses reflect increased child care provider reimbursement rates. The base rates are updated to the 50th percentile and the QRS highest rates to the 75th percentile of the 2020 survey. Previously, the highest rates had been at the 75th percentile based on the 2017 market rate survey.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 30, 2021, as ARC 5732C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by the Council on Human Services on August 12, 2021.Fiscal Impact Increasing the maximum provider rates as shown in the rate tables is estimated to cost $13,355,730 per year. This cost is expected to be funded by federal Child Care Development Fund (CCDF) funds carried forward until SFY25, when it is anticipated that the balance of CCDF funds will be fully expended.Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 441—1.8(17A,217).Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date This rule making will become effective on November 1, 2021. The following rule-making action is adopted:
ITEM 1. Amend paragraph 170.4(7)"a" as follows: a. Rate of payment.The rate of payment for child care services, except for in-home care which shall be paid in accordance with 170.4(7)“d,” shall be the actual rate charged by the provider for a private individual, not to exceed the maximum rates shown below. When a provider does not have a half-day rate in effect, a rate is established by dividing the provider’s declared full-day rate by 2. When a provider has neither a half-day nor a full-day rate, a rate is established by multiplying the provider’s declared hourly rate by 4.5. Payment shall not exceed the rate applicable to the provider type and age group as shown in the tables below. To be eligible for the special needs rate, the provider must submit documentation to the child’s service worker that the child needing services has been assessed by a qualified professional and meets the definition for “child with special needs,” and a description of the child’s special needs, including, but not limited to, adaptive equipment, more careful supervision, or special staff training.Table 1 Half-Day Rate Ceilings for (Licensed Center)No QRS QRS 1 or 2QRS 3 or 4QRS 5Age GroupBasicSpecial NeedsBasicSpecial NeedsBasicSpecial NeedsBasicSpecial NeedsInfant and Toddler$17.00$19.30$51.94$19.75$20.50$51.94$20.50$21.50$51.94$21.90$23.21$51.94Preschool$14.75$17.00$30.43$15.50$18.00$30.43$16.40$18.98$30.43$18.69$20.00$30.43School Age$12.18$13.50$30.34$12.50$14.75$30.34$13.50$15.00$30.34$15.00$16.00$30.34Table 2 Half-Day Rate Ceilings for (Child Development Home A/B)No QRS QRS 1 or 2QRS 3 or 4QRS 5Age GroupBasicSpecial NeedsBasicSpecial NeedsBasicSpecial NeedsBasicSpecial NeedsInfant and Toddler$12.98$19.47$13.50$20.25$13.75$20.63$14.00$21.00Preschool$12.50$18.75$12.75$19.13$13.00$19.50$13.75$20.63School Age$10.82$16.23$11.25$16.88$12.00$18.00$12.50$18.75Table 3 Half-Day Rate Ceilings for (Child Development Home C)No QRS QRS 1 or 2QRS 3 or 4QRS 5Age GroupBasicSpecial NeedsBasicSpecial NeedsBasicSpecial NeedsBasicSpecial NeedsInfant and Toddler$13.00$14.00$19.50$21.00$14.00$14.50$21.00$21.75$14.50$15.00$21.75$22.50$15.00$15.25$22.50$22.88Preschool$12.50$13.75$18.75$20.63$13.00$14.50$19.50$21.75$13.50$14.75$20.25$22.13$15.00$22.50School Age$11.25$16.88$12.00$12.50$18.00$18.75$12.50$13.00$18.75$19.50$14.00$14.50$21.00$21.75Table 4 Half-Day Rate Ceilings for Child Care Home (Not Registered) Age Group Basic Special Needs Infant and Toddler $8.19$12.98 $12.29$19.47 Preschool $7.19$12.50 $10.79$18.75 School Age $7.36$10.82 $11.04$16.23The following definitions apply in the use of the rate tables: (1) “Licensed center” shall mean those providers as defined in 170.4(3)“a.” “Child development home A/B” or “child development home C” shall mean those providers as defined in 170.4(3)“b.” “Child care home (not registered)” shall mean those providers as defined in 441—Chapter 120. (2) Under age group, “infant and toddler” shall mean age two weeks to three years; “preschool” shall mean three years to school age; “school age” shall mean a child in attendance in full-day or half-day classes. (3) “No QRS” shall mean a provider who is not participating in the quality rating system. (4) A provider who is rated under the quality rating system shall be paid according to the corresponding QRS payment level in the tables above only during the period the rating is valid as defined in 441—Chapter 118. If the provider’s QRS rating expires, the provider shall be paid according to the “No QRS” payment level. (5) For a provider rated “QRS 1” through “QRS 4,” if the rating period expires before a new QRS level is approved, the provider will be paid according to the “No QRS” payment level until the new QRS level is approved. (6) For a provider rated “QRS 5,” if a renewal application is received before the current rating period expires, the provider will continue to be paid according to the “QRS 5” payment level until a decision is made on the provider’s application. (7) “QRS 1 or 2” shall mean a provider who has achieved a rating of Level 1 or Level 2 under the quality rating system. (8) “QRS 3 or 4” shall mean a provider who has achieved a rating of Level 3 or Level 4 under the quality rating system. (9) “QRS 5” shall mean a provider who has achieved a rating of Level 5 under the quality rating system. [Filed 8/12/21, effective 11/1/21][Published 9/8/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/8/21.ARC 5900CNatural Resource Commission[571]Adopted and FiledRule making related to state parks, recreation areas, and state forest camping
The Natural Resource Commission (Commission) hereby amends Chapter 61, “State Parks, Recreation Areas, and State Forest Camping,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 455A.5(6).State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 461A.3 and 461A.48.Purpose and Summary These amendments address different aspects of the operations of the Department of Natural Resources (Department) by clarifying existing rules, rescinding outdated rules, modernizing Department systems, and streamlining camping procedures. More specifically, this rule making:
- Existing permits. Those persons possessing a valid permit for use of a motorized vehicle on game management areas as provided in 571—51.7(461A) may use a motorized vehicle to gain access to specific areas for recreational opportunities and facilities within state parks, recreation areas and preserves.
- Except as provided in 61.7(8)“b,” the use of a motorized vehicle on any park, recreation area or preserve by a person without a valid permit or at any site not approved on a signed map is prohibited. Permits and maps shall be carried by the permittee at any time the permittee is using a motorized vehicle in a park, recreation area or preserve and shall be exhibited to any department employee or law enforcement official upon request.
- The speed limit for an approved motormotorized vehicle off-road will be no more than 5 mph3 miles per hour. The permit of a person who is found exceeding the speed limit will be revoked.
- The permit of any person who is found causing damage to cultural and natural features or abusing the privilege of riding off-road within the park will be revoked, and restitution for damages or other remedies available under the law may be sought.
Rule making related to standards of practice and telepsychology
The Board of Psychology hereby amends Chapter 240, “Licensure of Psychologists”; adopts new Chapter 243, “Practice of Psychology”; and amends Chapter 244, “Prescribing Psychologists,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code sections 147.76 and 272C.4.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapter 154B and sections 147.9, 147.55, 272C.4, 272C.9 and 272C.10 and 2020 Iowa Acts, House File 2389.Purpose and Summary This rule making establishes standards of practice for psychologists who provide patient care through telepsychology, requires Health Insurance Portability and Accountability Act (HIPAA)-compliant technology, and imposes other requirements to ensure the patient’s confidential health information is secure. These rules align with the Board of Medicine’s rules governing telemedicine, which will ensure that psychologists operate under uniform standards when coordinating remote care. The new chapter also establishes the minimum standards of practice for licensed psychologists, provides definitions of practice terminology, and specifies the requirements for patient records management, psychological testing, participation in judicial proceedings and reporting to the Board. In addition, there are two amendments that pertain to technical corrections. The first amendment pertains to Chapter 240 and ensures uniformity with the chapter by removing the requirement that supervised professional experience by a postdoctoral supervisee take place in the same physical setting as the supervisor. The second amendment pertains to 2020 Iowa Acts, House File 2389, which amended Iowa Code chapter 17A to remove the term “variance” and required that agencies’ rules about waiver procedures refer only to waivers. The word “variance” is therefore removed from Chapter 244.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on May 5, 2021, as ARC 5617C. A virtual public hearing was held on May 25, 2021, at 10 a.m. No one attended the public hearing. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by the Board on August 6, 2021.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 645—Chapter 18.Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date This rule making will become effective on October 13, 2021. The following rule-making actions are adopted:
ITEM 1. Amend subparagraph 240.6(2)"a" as follows: (3) Work in the same physical setting as the supervisor unless a completed off-site supervision form is submitted to and approved by the boardthe requirements stated in subparagraph 240.6(2)“b”(11) are met; ITEM 2. Adopt the following new 645—Chapter 243: CHAPTER 243PRACTICE OF PSYCHOLOGY645—243.1(154B) Definitions. 645—243.1645—243.1645—243.1645—243.1645—243.1645—243.1645—243.1645—243.1645—243.1645—243.1 "APA" means the American Psychological Association. "Clinical records" means records created by a licensee regarding the observation and treatment of patients, such as progress notes, but does not include psychotherapy notes. "Examinee" means a person who is the subject of a forensic examination for the purpose of informing a decision maker or attorney about the psychological functioning of that examinee. "HIPAA" means the Health Insurance Portability and Accountability Act of 1996 and regulations promulgated thereunder. "Licensee" "licensed" means an individual with an active license to practice psychology, including a provisional license, or a certificate of exemption issued by the board. "Patient" means an individual under the care of a licensee in a clinical role and is synonymous with the term client. "Personal representative" means a person authorized to act on behalf of the patient in making health care-related decisions. A personal representative may include a parent or legal guardian, an individual with a health care power of attorney, an individual with a general power of attorney or durable power of attorney that includes the power to make health care decisions, or a court-appointed legal guardian. "Psychotherapy notes" means notes recorded by a licensee documenting or analyzing the contents of a conversation during a private therapy session with a patient, or a group, joint, or family therapy session, that are maintained separately from the patient’s clinical records. Psychotherapy notes excludes medication prescription monitoring, counseling session start and stop times, the modalities and frequencies of treatment furnished, results of any clinical tests, and any summary of the following items: diagnosis, functional status, treatment plan, symptoms, prognosis, and progress to date. "Telepsychology" means the provision of psychological services using telecommunication technologies. "Test data" means raw and scaled scores, patient responses to test questions or stimuli, and notes and recordings concerning patient statements and behavior during an examination. 645—243.2(147,154B,272C) Purpose and scope. The purpose of this chapter is to set the minimum standards of practice for licensees practicing in Iowa. The practice of psychology is occurring in Iowa if the patient or examinee is located in Iowa. Licensees shall ensure any interns or residents under supervision adhere to the minimum standards of practice and must comply with the requirements set forth in rule 645—240.9(154B). The APA Code of Ethics is applicable and enforceable to the extent it does not conflict with any standards of practice set forth in this chapter. A licensee may be disciplined for any violation of this chapter or the APA Code of Ethics.645—243.3(154B) Access to records. 243.3(1) Clinical records generally. Upon a signed release from the patient or the patient’s personal representative, a licensee shall provide clinical records in accordance with the release unless there is a ground for denial under HIPAA. 243.3(2) Psychotherapy notes. A licensee is not required to release psychotherapy notes in response to a signed release, but a licensee who chooses to release psychotherapy notes may only provide psychotherapy notes if the signed release specifically authorizes the release of psychotherapy notes. 243.3(3) Substance use disorder treatment programs. Licensees who practice in a federally assisted substance use disorder treatment program, also known as a part 2 program, are prohibited from disclosing any information that would identify a patient as having a substance use disorder unless the patient provides written consent in compliance with part 2 requirements. 243.3(4) Clinical records of minor patients. A minor patient is a patient who is under the age of 18 and is not emancipated. A licensee is not required to release the clinical records of a minor patient to the minor’s personal representative if releasing such records is not in the minor’s best interest. When a minor patient reaches the age of 18, the clinical records belong to the patient. 243.3(5) Clinical records of deceased patients. A licensee shall provide the clinical records of a deceased patient to the deceased patient’s executor upon a written request accompanied by a copy of the patient’s death certificate and a copy of the legal document identifying the requestor as the patient’s executor. 243.3(6) Forensic records. A licensee shall provide forensic records consistent with the APA Specialty Guidelines for Forensic Psychology. 243.3(7) Board. A licensee shall provide clinical records, test data, or forensic records to the board as requested during the investigation of a complaint. A licensee is not required to obtain a patient release to send such information to the board because the board is a health oversight agency. 243.3(8) Exceptions. Nothing herein shall be construed as requiring a licensee to disclose information when there is a legal basis for not disclosing the information.645—243.4(154B) Psychological testing. A licensee may administer psychological tests and assessments to a patient or examinee provided the licensee has appropriate training for any psychological test or assessment utilized and the test or assessment is scientifically founded. 243.4(1) Use of proctors. A licensee may delegate the administration of a standardized test, intelligence test, or objective personality assessment to an appropriately trained individual. The licensee is responsible for supervising any proctors. 243.4(2) Release of test data. A licensee shall not provide test data to any person, except that upon a written request of a patient or examinee who is the subject of a test, the test data shall be disclosed to a licensed psychologist designated by the patient or examinee. A psychologist who receives test data in this manner may not further disseminate the test data. 645—243.5(154B) Judicial proceedings. Prior to participating in a judicial proceeding, a licensee shall become familiar with the rules governing the proceeding. A licensee shall understand and clearly identify the licensee’s role in the proceeding. 243.5(1) Licensure. A license to practice psychology in Iowa or an exemption from licensure is not required solely to testify as an expert witness in court, provided the psychologist did not personally examine the examinee. A psychologist who personally examines an examinee located in Iowa for the purpose of providing an expert opinion is required to be licensed or exempt from licensure at the time of the evaluation. 243.5(2) Custody evaluations. A licensee who performs a child custody evaluation shall comply with the APA Guidelines for Child Custody Evaluations in Family Law Proceedings. 645—243.6(147,154B,272C) Reports required. Within 30 days, a licensee shall report to the board the following: 243.6(1) A change of name or address. Name and address changes may be reported at www.idph.iowa.gov/Licensure. 243.6(2) A criminal conviction, even if the adjudication of guilt is deferred, withheld, or not entered. A conviction includes Alford pleas and pleas of nolo contendere. 243.6(3) Any disciplinary action taken by another licensing authority in this state, another state, territory, or country. 243.6(4) Any occurrence of any judgment or settlement of a malpractice claim or action. 243.6(5) Acts or omissions of the board’s statute or administrative rules committed by another person licensed to practice by the board when a licensee has first-hand knowledge of such acts or omissions. This duty to report does not apply when a licensee has knowledge as a result of the other licensee being a patient.645—243.7(154B) Telepsychology. A psychologist may practice telepsychology provided the following are met: 243.7(1) The psychologist must be licensed or be exempt from licensure in the jurisdiction where the patient or examinee is located. 243.7(2) Prior to initiating telepsychology with a new patient or examinee, a licensee shall take reasonable steps to verify the identity and location of the patient or examinee. 243.7(3) A licensee shall ensure informed consent for telepsychology includes a description of any limitations of services as a result of the technology utilized. 243.7(4) A licensee shall gain competency in the use of a particular technology prior to utilizing it in practice. A licensee shall only use technologies that are secure and functioning properly. 243.7(5) A licensee shall apply the same ethical and professional standards of care and professional practice that are required when providing in-person psychological services. If the same standard of care cannot be met with telepsychology, a licensee shall not utilize telepsychology.645—243.8(154B) Records. A licensee shall complete clinical records as soon as practicable to ensure continuity of services. All clinical records shall be completed within 30 days after the service or evaluation is complete in the absence of significant extenuating circumstances. Clinical records and psychotherapy notes shall be retained for at least seven years after the last date of service, or until at least three years after a minor reaches the age of 18, whichever is later. Forensic records shall be completed and retained consistent with the APA Specialty Guidelines for Forensic Psychology. These rules are intended to implement Iowa Code chapters 147, 154B, and 272C. ITEM 3. Amend rule 645—244.12(148,154B) as follows:645—244.12(148,154B) Joint waiver or variance—joint rule. Any rule identified as a joint rule may only be waived upon approval by both the board and the board of medicine. [Filed 8/18/21, effective 10/13/21][Published 9/8/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/8/21.ARC 5906CRevenue Department[701]Adopted and FiledRule making related to marketable food products for human consumption
The Revenue Department hereby amends Chapter 230, “Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 421.17.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 423.3.Purpose and Summary Iowa Code section 423.3(49) provides a limited exemption for manufacturers producing “marketable food products for human consumption.” Specifically, the Iowa Code section exempts from sales tax: “The sales price from the sale of carbon dioxide in a liquid, solid, or gaseous form, electricity, steam, and other taxable services and the lease or rental of tangible personal property when used by a manufacturer of food products to produce marketable food products for human consumption, including but not limited to treatment of material to change its form, context, or condition, in order to produce the food product, maintenance of quality or integrity of the food product, changing or maintenance of temperature levels necessary to avoid spoilage or to hold the food product in marketable condition, maintenance of environmental conditions necessary for the safe or efficient use of machinery and material used to produce the food product, sanitation and quality control activities, formation of packaging, placement into shipping containers, and movement of the material or food product until shipment from the building of manufacture.” [Emphasis added.] This exemption was first codified in 1985 and has only been amended once, in 2005, to add leases or rentals of otherwise-qualifying tangible personal property to the exemption. The phrase “marketable food products for human consumption” has never been defined in the Iowa Code or the Department’s administrative rules. The Department’s long-standing interpretation of the term, articulated through audits and protests, has been that only final food products, not food ingredients, are “marketable food products for human consumption.” This interpretation is consistent with the statutory construction principle that exemption provisions be narrowly construed. To provide clarity to taxpayers seeking to claim this exemption as manufacturers of marketable food products for human consumption, the Department is adopting this definition of the term. The Department notes that if a taxpayer does not produce marketable food products for human consumption, the taxpayer may still be eligible for other processing-related exemptions, such as those in Iowa Code section 423.3(47). Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on May 5, 2021, as ARC 5614C. An Amended Notice of Intended Action was published in the Iowa Administrative Bulletin on June 16, 2021, as ARC 5720C. A virtual public hearing was held on July 8, 2021, at 1:30 p.m. The Department received public comments from the Iowa Taxpayers Association (ITA) and the Iowa Association of Business and Industry (ABI) at each stage of the process: two public hearings and both Administrative Rules Review Committee (ARRC) meetings, at which the Notice and the Amended Notice were reviewed. The Department also received written comments from ITA and ABI, as well as other interested tax professionals, in the initial public comment period. All comments received opposed the rule as proposed, rooted in a disagreement with the Department’s interpretation. The Department did not amend the rule from its proposed form prior to adoption. The Department understands impacted stakeholders continue to disagree with the Department’s interpretation of this exemption and is willing and interested in working with these stakeholders to bring this issue to a resolution. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by the Department on August 18, 2021.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date This rule making will become effective on October 13, 2021. The following rule-making action is adopted:
ITEM 1. Adopt the following new subrule 230.2(1): 230.2(1) “Marketable food products for human consumption” means products intended to be sold ultimately at retail as items which furnish energy, sustain growth, support vital processes in the human body, and are final products ready for and capable of consumption without the need for further processing after being sold to the purchaser. “Marketable food products for human consumption” includes food products traditionally accepted and sold as food products and products that have been enhanced or compounded with nutritional elements. “Marketable food products for human consumption” does not include medicines or dietary or food supplements. A product that may be consumed by a human but is sold for other purposes is not a marketable food product for human consumption. a. Certain entities eligible.An entity that processes a product owned by another entity is eligible for this exemption, subject to satisfying the other requirements to properly claim the exemption. b. Determination.The burden is on the taxpayer seeking to claim this exemption to establish a product is a marketable food product for human consumption. The department’s determination shall be a fact-based determination based on the information provided by a manufacturer and the individual circumstances at issue. [Filed 8/18/21, effective 10/13/21][Published 9/8/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/8/21.ARC 5893CTransportation Department[761]Adopted and FiledRule making related to motor vehicles operated by an automated driving system
The Transportation Department hereby adopts new Chapter 380, “Motor Vehicles Operated by an Automated Driving System,” and amends Chapter 400, “Vehicle Registration and Certificate of Title,” Chapter 524, “For-Hire Intrastate Motor Carrier Authority,” and Chapter 540, “Transportation Network Companies,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code sections 307.12 and 321.519.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 321.514 through 321.519.Purpose and Summary This rule making establishes Chapter 380 and makes conforming changes to existing Chapters 400, 524 and 540. 2019 Iowa Acts, Senate File 302, enacted Iowa Code sections 321.514 through 321.519, which authorize operation of autonomous (driverless-capable) vehicles on Iowa roadways and provide the Department with rule-making authority to regulate such vehicles. New Chapter 380 applies to the regulation of driverless-capable vehicles in Iowa. A driverless-capable vehicle means a vehicle that is capable of performing the entire driving task within the automated driving system’s operational design domain without intervention of a conventional human driver. The following paragraphs further explain the amendments: Definitions. While many of the definitions applicable to driverless-capable vehicles can be found in Iowa Code section 321.514, a few definitions require further clarification in the rules. For example, the term “driverless-capable vehicle” is further defined to mean a vehicle meeting the definition of a Level 3, 4 or 5 classification, which are classifications of higher-level automated vehicles widely recognized within the autonomous vehicle community. Chapter 380 also defines “operational design domain” as that document established by the vehicle manufacturer that is very important in assessing the capabilities and intended uses of a driverless-capable vehicle. Identification and operational restrictions. The rules incorporate a fundamental requirement in regulating driverless-capable vehicles in Iowa, namely, the requirement to identify the vehicle as driverless-capable in the Department’s vehicle registration system. The rules also address operational restrictions for driverless-capable vehicles. The Department already has the authority to place operational restrictions on a vehicle registered in Iowa, for example, if the vehicle is unable to meet certain equipment standards. The new chapter and amendments extend this authority to driverless-capable vehicles, especially for when the Department begins to see fully autonomous vehicles with no human driver required to be present in the vehicle. There may be operational restrictions needed for a vehicle due to the intended design of the vehicle. Two examples of potential operational restrictions would be to limit the vehicle to being operated only during daylight hours or to being operated only on roadways with a certain classification, such as a highway or a city street. Part of establishing any operational restrictions will include a review of the vehicle’s operational design domain or other necessary documentation to assess the vehicle’s operational capabilities. If the Department does issue a restricted registration, the Department will issue a certificate of restriction to be provided to the vehicle owner, which shall be carried in the vehicle and available for inspection by law enforcement upon request. These amendments also provide that if an applicant receives a software update or otherwise modifies the vehicle to make it driverless-capable after registration, the applicant is required to notify the Department within 30 days. Driverless-capable vehicle networks. These amendments address driverless-capable vehicle networks that may be operated by transportation network companies (e.g., Uber or Lyft) or other commercial carriers. These networks and carriers are already required to apply to the Department for operating authority, and the rules now require a network or carrier intending to operate driverless-capable vehicles in Iowa to notify the Department. The Department may also require additional documentation as part of the application process. Vehicle registration and titling. This rule making amends the existing chapter governing vehicle registration and titling to address that the applicant must indicate whether the vehicle the applicant is seeking to register is driverless-capable. In addition to requiring this information on the vehicle registration application, the Department will also have the internal ability to capture this information from the Department’s vehicle identification system. Supporting documentation requirements for a vehicle registration application are also being changed to include the authority to require the operational design domain for the driverless-capable vehicle or any other documentation necessary to assess the driverless-capable vehicle’s operational capabilities. Finally, these amendments allow a driverless-capable vehicle indicator to be placed on the vehicle title or registration, which may also include whether any operational restrictions exist. This indicator may only appear in the electronic vehicle records system.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on May 19, 2021, as ARC 5621C. A public hearing was held on June 11, 2021. The Department received oral and written comments from the Alliance for Automotive Innovation (AFAI) regarding rules 761—380.1(321) through 761—380.7(17A,321) and subrules 400.4(10) and 400.21(6). AFAI shared concerns about the Department’s proposed rules and amendments, in particular as related to the Department’s proposal to establish a driverless-capable vehicle testing permit in rule 761—380.7(17A,321). AFAI expressed that the Iowa Code already provides a comprehensive framework for driverless-capable vehicles to operate safely and that creation of an additional testing permit process was unnecessary and would potentially discourage driverless-capable vehicle companies from bringing business to Iowa. AFAI also submitted several suggestions to further align the Department’s rules with the Iowa Code and industry experience, including deleting terminology that is not used in the rule chapter, making definitions and references consistent with existing technology, and removing requirements to submit extra documentation to the Department other than the operational design domain of the vehicle. The Department received written comments from the National Association of Mutual Insurance Companies (NAMIC) suggesting that subrule 380.7(2) be revised to add that a manufacturer or entity applying for a testing permit submit evidence of the vehicle’s driving operations in order to conform to Iowa state traffic laws and regulations. The Department has not adopted the testing permit provision that was proposed in rule 761—380.7(17A,321); therefore, the suggested change is no longer applicable. A description of the changes made by the Department in response to AFAI’s comments on each of these rules and subrules is as follows: Rule 761—380.1(321) establishes the applicability of Chapter 380. The Department has removed the proposed language regarding system-equipped driverless-capable vehicles since this term is not used in this chapter. Rule 761—380.2(321) adopts new definitions for Chapter 380. The Department has removed the proposed definition of “ADS-equipped vehicle” because that term is not used in this chapter. The Department has revised the definition of a Level 3 driverless-capable vehicle to conform with existing technology, which provides that a Level 3 vehicle requires a human operator to respond to a request to intervene issued by the vehicle’s automated driving system, although the human operator need not be present in the vehicle. The definition of “operational design domain” has also been revised to align with the definition in the Iowa Code. Rule 761—380.3(17A) provides contact information for the Department. This rule has been revised to remove a proposed reference to driverless-capable vehicle testing permits, which has been replaced with a reference to driverless-capable vehicle exemptions. Driverless-capable vehicle exemptions are discussed in further detail in the paragraph explaining the changes to rule 761—380.7(17A,321) below. Rule 761—380.4(321) addresses identification of driverless-capable vehicles at the time of registration. The Department has added terminology describing the vehicle classification level that is commonly used, as well as language to acknowledge changes in a vehicle’s recorded SAE level of automation if the automated driving system is subsequently upgraded. Rule 761—380.5(321) authorizes the Department to impose operational restrictions on a driverless-capable vehicle as a condition of registration pursuant to rule 761—400.21(321). The Department has added language requiring a driverless-capable vehicle manufacturer to provide information to the Department regarding the vehicle’s operational design domain and associated operational restrictions. This revision also allows the manufacturer to provide subsequent information to the Department about automated driving system design upgrades to the vehicle so that the Department may update its records. Rule 761—380.6(321) addresses documentation submission requirements for a person seeking to operate a for-hire driverless-capable vehicle network in Iowa. The Department has not adopted the proposed application requirement for the submission of additional documentation regarding features other than the vehicle’s operational design domain. Rule 761—380.7(17A,321) creates a driverless-capable vehicle testing process in Iowa. However, upon further review of the Iowa Code, which already provides a framework for a driverless-capable vehicle to operate in Iowa, the Department has not adopted the proposed testing permit provision because the Department agrees that the driverless-capable vehicle exemption pursuant to Iowa Code section 321.515(1)“b” is sufficient to address any circumstance in which a driverless-capable vehicle is unable to meet all of the traffic and motor vehicle safety laws and regulations in Iowa. This new rule establishes an application, review, and issuance process for the exemption as well as a suspension and hearing process. Subrule 400.4(10) addresses supporting documentation as part of an application for vehicle registration and title. The Department has removed the proposed application requirement for the submission of additional documentation other than the vehicle’s operational design domain. The Department has also removed a cross-reference to a proposed subrule concerning the testing permit process that was not adopted. Subrule 400.21(6) authorizes operational restrictions. The Department has revised this subrule to clarify that the Department will use the operational design domain to evaluate a driverless-capable vehicle’s intended operational design. Nonsubstantive grammar and punctuation changes have also been made from the Notice.Adoption of Rule Making This rule making was adopted by the Department on August 12, 2021.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 761—Chapter 11.Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date This rule making will become effective on October 13, 2021. The following rule-making actions are adopted:
ITEM 1. Adopt the following new 761—Chapter 380: CHAPTER 380MOTOR VEHICLES OPERATED BY AN AUTOMATED DRIVING SYSTEM761—380.1(321) Applicability. This chapter applies to driverless-capable motor vehicles operated by an automated driving system, which shall be regulated exclusively by the department under Iowa Code section 321.519. This rule is intended to implement Iowa Code sections 321.514 through 321.519.761—380.2(321) Definitions. The definitions in Iowa Code section 321.514 are adopted and incorporated herein. In addition: "Conventional human driver" means the same as defined in Iowa Code section 321.514 but does not include a driverless-capable vehicle user. "Driverless-capable vehicle" as defined in Iowa Code section 321.514 means the vehicle meets one of the following classifications:- Level 3—conditional driving automation. The vehicle is capable of achieving the sustained and specific performance of the entire dynamic driving task as provided in the operational design domain. An SAE Level 3 vehicle requires a human operator to respond to a request to intervene issued by the automated driving system, as well as to dynamic driving task performance-relevant system failures in other vehicle systems. However, a driverless-capable Level 3 vehicle can be remotely operated without a human operator present in the vehicle.
- Level 4—high driving automation. The vehicle is capable of achieving the sustained and specific performance of the entire dynamic driving task as provided in the operational design domain. An SAE Level 4 vehicle does not require a conventional human driver and does not require a driverless-capable vehicle user to be present in the vehicle or to perform remote operation to respond to a request to intervene issued by the automated driving system. A Level 4 vehicle is capable of fallback to a minimal risk condition without human intervention.
- Level 5—full driving automation. The vehicle is capable of achieving the sustained and unconditional performance of the entire dynamic driving task. An SAE Level 5 vehicle is capable of performing all driving functions under all conditions. A Level 5 vehicle does not require a conventional human driver and does not require a driverless-capable vehicle user to be present in the vehicle or to perform remote operation to respond to a request to intervene issued by the automated driving system. A Level 5 vehicle is capable of fallback to a minimal risk condition without human intervention.
Rule making related to hazardous liquid pipelines and underground storage
The Utilities Board hereby amends Chapter 13, “Hazardous Liquid Pipelines and Underground Storage,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code chapter 479B.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapter 479B.Purpose and Summary The Board is conducting a comprehensive review of its administrative rules in accordance with Iowa Code section 17A.7(2). The purpose of the comprehensive review is to identify and update or eliminate rules that are outdated, redundant, or inconsistent with statutes and other administrative rules. This rule making reorganizes the chapter, retains necessary provisions, introduces new provisions to address issues that have arisen in various dockets, and aligns the chapter with other chapters of the Board’s rules. On August 12, 2021, the Board issued an order adopting new rules. The order is available on the Board’s electronic filing system, efs.iowa.gov, under Docket No. RMU-2020-0013.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 27, 2021, as ARC 5403C. An oral presentation was held April 15, 2021, at 1:30 p.m. in the Board Hearing Room, 1375 East Court Avenue, Des Moines, Iowa. The Board received comments at the oral presentation from the Office of Consumer Advocate (OCA), a division of the Iowa Department of Justice; the Iowa Farm Bureau Federation (Farm Bureau); the American Petroleum Institute and Association of Oil Pipelines (Associations); and the Sierra Club Iowa Chapter (Sierra Club) relating to the scope of the rules as well as other technical changes throughout the rules. On February 16, 2021, OCA, Farm Bureau, and Associations filed their initial comments on the Notice. On February 17, 2021, Sierra Club filed its initial comments on the Notice. On May 26, 2021, the Board issued an order requesting stakeholder comments on a draft Adopted and Filed rule making. OCA, Farm Bureau, and Sierra Club filed comments based on the Board’s order requesting stakeholder comments on its proposed draft Adopted and Filed rule making, which addressed the last remaining issues stakeholders had regarding the rule. The changes to the chapter are based upon comments made at the oral presentation, as well as the written comments submitted by interested parties. Adoption of Rule Making This rule making was adopted by the Board on August 12, 2021.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers No waiver provision is included in this amendment because the Board has a general waiver provision in rule 199—1.3(17A,474,476) that provides procedures for requesting a waiver of the rules in this chapter.Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date This rule making will become effective on October 13, 2021. The following rule-making actions are adopted:
ITEM 1. Amend subrule 13.1(1) as follows: 13.1(1) AuthorityPurpose and authority. The purpose of this chapter is to implement the requirements of Iowa Code chapter 479B to establish procedures and filing requirements for a permit to construct, maintain, and operate an interstate hazardous liquid pipeline, for an amendment to an existing permit, and for renewal of an existing permit. This chapter also implements the requirements of Iowa Code chapter 479B for permits for underground storage of hazardous liquids.The standardsrules in this chapter relating to hazardous liquid pipelines and underground storage of hazardous liquids are prescribedadopted by the Iowa utilities board pursuant to Iowa Code section 479B.1chapter 479B. ITEM 2. Rescind subrule 13.1(2) and adopt the following new subrule in lieu thereof: 13.1(2) When a permit is required. A hazardous liquid pipeline permit shall be required for any hazardous liquid pipeline to be constructed in Iowa, regardless of length or operating pressure of the pipeline. ITEM 3. Amend subrule 13.1(3) as follows: 13.1(3) Definitions. Words and terms not otherwise defined in this chapter shall be understood to have their usual meaning. For the administration and interpretation of this chapter, the following words and terms, when used in these rules, shall have thefollowing meanings indicated below: "Affected person" means any person with a legal right or interest in the property, including but not limited to a landowner, a contract purchaser of record, a person possessing the property under a lease, a record lienholder, and a record encumbrancer of the property. "Amendment of permit" means changes to the pipeline permit or pipeline that require the filing of a petition to amend an existing pipeline permit as described in rule 199—13.9(479B). "Approximate right angle" means within 5 degrees of a 90 degree90-degree angle. "Board" means the utilities board within the utilities division of the department of commerce. "CFR" means the Code of Federal Regulations, which contains the general administrative rules adopted by federal departments and agencies, in effect as of October 13, 2021, unless a separate effective date is identified in a specific rule. "County inspector" means a professional engineer licensed under Iowa Code chapter 542B, familiar with agricultural and environmental inspection requirements, who has been employed by a county board of supervisors to do an on-site inspection of a proposed pipeline for compliance with 199—Chapter 9 and Iowa Code chapter 479B. "Hazardous liquid" means crude oil, refined petroleum products, liquefied petroleum gases, anhydrous ammonia, liquid fertilizers, liquefied carbon dioxide, alcohols, and coal slurries. "Multiple line crossing" means a point at which a proposed pipeline will either cross over or under an existing pipeline. "Negotiating" means contact between a pipeline company and a person with authority to negotiate an easement or other interest in land that involves the location, damages, compensation, or other matter that is restricted by Iowa Code section 479B.4(6). Contact for purposes of obtaining addresses and other contact information from a landowner or tenant is not considered negotiation. "Permit" means a new, amended, or extendedrenewal permit issued after appropriate application to and determination by the board. "Person" means an individual, a corporation, a limited liability company, a government or governmental subdivision or agency, a business trust, an estate, a trust, a partnership or association, or any other legal entity as defined in Iowa Code section 4.1(20). "Pipeline" means any pipe or pipeline and necessary appurtenances used for the transportation or transmission of any hazardous liquid. "Pipeline company" means any person, firm, copartnership, association, corporation, or syndicate engaged in or organized for the purpose of owning, operating, or controlling pipelines for the transportation or transmission of any hazardous liquid or underground storage facilities for the underground storage of any hazardous liquid. "Renewal permit" means the extension and reissuance of a permit after appropriate application to and determination by the board. "Underground storage" means storage of hazardous liquid in a subsurface stratum or formation of the earth. ITEM 4. Rescind subrule 13.1(4). ITEM 5. Rescind rule 199—13.2(479B) and adopt the following new rule in lieu thereof:199—13.2(479B) Informational meetings. Informational meetings shall be held for any proposed pipeline project five miles or more in length, including both the current project and future anticipated extensions, and which is to be operated at a pressure in excess of 150 pounds per square inch. A separate informational meeting shall be held in each county in which real property or property rights would be affected. 13.2(1) Time frame for holding meeting. Informational meetings shall be held not less than 30 days nor more than two years prior to the filing of the petition for pipeline permit. 13.2(2) Facilities. A pipeline company shall be responsible for all negotiations and compensation for a suitable facility to be used for each informational meeting, including but not limited to a building or facility which is in substantial compliance with any applicable requirements of the Americans with Disabilities Act Standards for Accessible Design, including both Title II regulations at 28 CFR part 36, subpart D, and the 2004 Americans with Disabilities Act Accessibility Guidelines at 36 CFR part 1191, appendices B and D (as amended through October 13, 2021), where such a building or facility is reasonably available. 13.2(3) Location. The informational meeting location shall be reasonably accessible to all persons who may be affected by the granting of a permit or who have an interest in the proposed pipeline. 13.2(4) Board approval. A pipeline company proposing to schedule an informational meeting shall file a request to schedule the informational meeting and shall include a proposed date and time for the informational meeting, an alternate time and date, and a description of the proposed project and map of the route. The pipeline company shall be notified within ten days of the filing of the request whether the request is approved or alternate times and dates are required. Once a date and time for the informational meeting have been approved, the pipeline company shall file the location of the informational meeting and a copy of the pipeline company’s presentation with the board. The pipeline company shall file a copy of its presentation with the board 14 days prior to the date the informational meeting is to be held. 13.2(5) Notices. Announcement by mailed and published notice of each informational meeting shall be given to persons as listed on the tax assessment rolls as responsible for payment of real estate taxes imposed on the property and those persons in possession of or residing on the property in the corridor in which the pipeline company intends to seek easements. a. The notice shall include the following: (1) The name of the pipeline company; (2) The pipeline company’s principal place of business; (3) The general description and purpose of the proposed project; (4) The general nature of the right-of-way desired; (5) The possibility that the right-of-way may be acquired by condemnation if approved by the board; (6) A map showing the route of the proposed project; (7) 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; (8) A statement that an affected landowner and any other affected person with a legal interest in the property, or residing on the property, has the right to be present at the informational meeting and to file objections with the board; (9) The following statement: “Persons with disabilities requiring assistive services or devices to observe or participate should contact the board at (515) 725-7300 in advance of the scheduled date to request accommodations”; (10) Designation of the date, time, and place of the meeting; and (11) A copy of the statement of damage claims as required by paragraph 13.3(3)“b.” b. The pipeline company shall cause a written copy of the meeting notice to be served, by certified United States mail with return receipt requested, on all persons as listed on the tax assessment rolls as responsible for payment of real estate taxes imposed on the property and persons in possession of or residing on the property, whose addresses are known. The certified meeting notice shall be deposited in the United States mail not less than 30 days prior to the date of the meeting. c. The pipeline company shall cause the meeting notice, including the map, to be published once in a newspaper of general circulation in each county where the pipeline is proposed to be located at least one week and not more than three weeks prior to the date of the meeting. Publication shall be considered as notice to affected persons listed on the tax assessment rolls as responsible for paying the real estate taxes imposed on the property and persons in possession of or residing on the property whose addresses are not known, provided a good faith effort to obtain the address can be demonstrated by the pipeline company. The map used in the published notice shall clearly delineate the pipeline route. d. The pipeline company shall file prior to the informational meeting an affidavit that describes the good faith effort the pipeline company undertook to locate the addresses of all affected persons. The affidavit shall be signed by a corporate officer or an attorney representing the pipeline company. 13.2(6) Personnel. The pipeline company shall provide qualified personnel to present the following information at the informational meeting: a. Service requirements and planning which have resulted in the proposed project. b. When the pipeline will be constructed. c. In general terms, the elements involved in pipeline construction. d. In general terms, the rights which the pipeline company will seek to acquire through easements. e. Procedures to be followed in contacting the affected persons for specific negotiations in acquiring voluntary easements. f. Methods and factors used in arriving at an offered price for voluntary easements including the range of cash amount for each component. g. Manner in which voluntary easement payments are made, including discussion of conditional easements, signing fees, and time of payment. h. Other factors or damages not included in the easement for which compensation is made, including features of interest to affected persons but not limited to computation of amounts and manner of payment. 13.2(7) Notice to county board of supervisors. The pipeline company shall send notice of the request for an informational meeting to the county board of supervisors in each county where the proposed pipeline is to be located. The pipeline company shall request from the board of supervisors the name of the county inspector, a professional engineer who shall conduct the on-site inspection required by Iowa Code section 479B.20(2). The pipeline company shall provide the name and contact information of the county inspector to the board, landowners, and other affected persons at the meeting, if known. ITEM 6. Rescind rule 199—13.3(479B) and adopt the following new rule in lieu thereof:199—13.3(479B) Petition for permit. 13.3(1) A petition for a permit shall be filed with the board upon the form prescribed and shall include all required exhibits. The petition shall be considered filed with the board on the date accepted by the board’s electronic filing system as provided for in 199—Chapter 14. The petition shall be attested to by an officer, official, or attorney with authority to represent the pipeline company. Required exhibits shall be in the following form: a. Exhibit A.A legal description showing, at minimum: (1) The beginning and ending points of the proposed pipeline. (2) The general direction of the proposed route through each quarter section of land to be crossed, including township and range. (3) Whether the proposed pipeline will be located on private or public property, public highway, or railroad right-of-way. (4) Other pertinent information. (5) When the route is in or adjacent to the right-of-way of a named road or a railroad, the exhibit shall specifically identify the road or railroad by name. b. Exhibit B.Maps showing the proposed routing of the pipeline. The maps may be to any scale appropriate for the level of detail to be shown, but not smaller than one inch to the mile, and shall be legible when printed on paper no larger than 11 by 17 inches. Maps based on satellite imagery are preferred. An additional map of the entire route, if the route is located in more than one county or there is more than one map for a county, shall be filed in this exhibit on paper no larger than 11 by 17 inches without regard to scale. The pipeline company shall also provide the board with a KMZ file showing the proposed route of the pipeline. Data files necessary to provide mapping of the route through the use of a geographic information system application shall be provided upon the request of the board. The following minimum information shall be provided on the maps: (1) The route of the pipeline which is the subject of the petition, including the starting and ending points, and when paralleling a road or railroad, which side the pipeline is on. Multiple pipelines on the same right-of-way shall be indicated, and the distance between paralleling pipelines shall be shown. (2) The name of the county, county lines, section lines, section numbers, township numbers, and range numbers. (3) The location and identity of adjacent or crossed public roads, railroads, named streams or bodies of water, and other pertinent natural or man-made features influencing the route. (4) The name and corporate limits of cities and the name and boundaries of any public lands or parks. (5) Other pipelines and the identity of the owner. (6) Any buildings or places of public assembly within six tenths of a mile of the pipeline. c. Exhibit C.A showing of engineering specifications covering the engineering features, materials and manner of construction of the proposed pipeline; its approximate length, diameter and the name and location of each railroad and primary highway and the number of secondary highways to be crossed, if any; and such other information as may be deemed pertinent on forms prescribed by the board, which are located on the board’s website. In addition, the maximum and normal operating pressure and maximum capacity of the proposed pipeline shall be provided. d. Exhibit D.Satisfactory proof of solvency and financial ability to pay damages in the sum of $250,000 or more; or surety bond satisfactory to the board in the penal sum of $250,000 with surety approved by the board, conditioned that the pipeline company will pay any and all damages legally recovered against the pipeline company growing out of the construction and operation of its pipeline or hazardous liquid storage facilities in the state of Iowa; security satisfactory to the board as a guarantee for the payment of damages in the sum of $250,000; or satisfactory proofs that the company has property subject to execution within this state, other than pipelines, of a value in excess of $250,000. The board may require additional surety or insurance policies to ensure the payment of damages resulting from the construction and operation of a hazardous liquid pipeline in a county. e. Exhibit E. (1) Consent or documentation of appropriate public highway authorities, or railroad companies, where the pipeline will be placed longitudinally on, over or under, or at other than an approximate right angle to railroad tracks or highway, when consent is obtained prior to filing of the petition, shall be filed with the petition. (2) If any consent is not obtained at the time the petition is filed, the pipeline company shall file a statement that it will obtain all necessary consents or file other documentation of the right to commence construction prior to commencement of construction of the pipeline. A pipeline company may request board approval to begin construction on a segment of a pipeline prior to obtaining all necessary consents for construction of the entire pipeline. (3) Whether there are permits that will be required from other state agencies for construction of the pipeline and, if so, a description of the permit required and whether the permit has been obtained shall be included. (4) Whether there are permits from federal agencies that will be required for construction of the pipeline and, if so, a description of the permit required and whether the permit has been obtained shall be included. f. Exhibit F.This exhibit shall contain the following information: (1) A statement of the purpose of the project and a description of how the services rendered by the pipeline will promote the public convenience and necessity. (2) A general statement covering each of the following topics: 1. The nature of the lands, waters, and public or private facilities to be crossed; 2. The possible use of alternative routes; 3. The relationship of the proposed pipeline to present and future land use and zoning ordinances; and 4. The inconvenience or undue injury which may result to property owners as a result of the proposed project. (3) For an existing pipeline, the year of original construction and a description of any amendments or reportable changes since the permit or latest renewal permit was issued. g. Exhibit G.If informational meetings were required, an affidavit that the meetings were held in each county affected by the proposed project and the time and place of each meeting. Copies of the mailed notice letter, the corridor map, and the published notice(s) of the informational meeting shall be attached to the affidavit. h. Exhibit H.This exhibit is required only if the petition requests the right of eminent domain. The extent of the eminent domain request may be uncertain at the time the petition is filed. However, the exhibit must be in final form before a hearing is scheduled. The exhibit shall consist of a map of the route showing the location of each property for which the right of eminent domain is sought and the following information for each property: (1) The legal description of the property. (2) The legal description of the desired easement. (3) A specific description of the easement rights being sought. (4) The names and addresses of all affected persons for the property over which eminent domain is requested based upon a good faith effort to identify all affected persons. (5) A map drawn to an appropriate scale showing the boundaries of the property, the boundaries and dimensions of the proposed easement, the location of pipelines or pipeline facilities within the proposed easement, the location of and distance to any building within 300 feet of the proposed pipeline, and any other features pertinent to the location of the pipeline to the rights being sought. (6) An overview map showing the location of the property over which eminent domain is requested, with the property identified as required by 199—Chapter 9. (7) An updated KMZ file required by paragraph 13.3(1)“b” to show the locations of the property over which the pipeline company is seeking eminent domain. 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 for in rule 199—9.2(479,479B). The name and contact information of each county inspector designated by county boards of supervisors pursuant to Iowa Code section 479B.20(2) shall be included in the land restoration plan, when known. j. Underground storage.If permission is sought to construct, maintain, and operate facilities for underground storage of hazardous liquid, the petition shall include the following information, in addition to that stated above: (1) A description of the public or private highways, grounds and waters, streams, and private lands of any kind under which the storage is proposed, together with a map. (2) Maps showing the location of proposed machinery, appliances, fixtures, wells, and stations necessary for the construction, maintenance, and operation of the facilities. k. Exhibit K.The pipeline company shall file additional information as follows: (1) An affidavit describing the good faith effort the company has undertaken to identify all affected persons in the property for all parcels over which the pipeline is proposed to be located before easements were signed or eminent domain requested. The affidavit shall be signed by an attorney representing the pipeline company. (2) Whether any private easements will be required for the proposed pipeline and, if a private easement will be required, when the easement negotiations will be completed and whether all affected persons associated with the property have been notified. (3) Whether there are permits that will be required from other state agencies for the construction of the pipeline and, if so, a description of the permit required and whether the permit has been obtained. (4) Whether there are permits from federal agencies that will be required for construction of the pipeline and, if so, a description of the permit required and whether the permit has been obtained. (5) Whether there are any agreements or additional facilities that need to be constructed to transport or receive hazardous liquids. (6) Projected date when construction of the pipeline will begin. l. Exhibit L.Other exhibits. The board may require filing of additional exhibits if further information on a particular project is deemed necessary. 13.3(2) Construction on an existing easement. a. Petitions proposing new pipeline construction on an existing easement where the pipeline company has previously constructed a pipeline shall include a statement indicating whether any unresolved damage claims remain from the previous pipeline construction and, if so, shall include the name of each landowner or tenant, a legal description of the property involved, and the status of proceedings to settle the claim. b. A petition for permit proposing a new pipeline construction on an existing easement where the pipeline company has previously constructed a pipeline shall not be acted upon by the board if a damage claim from the installation of the previous pipeline has not been resolved by negotiation, arbitration, or court action. The board may take action on the petition if the damage claim is under litigation or arbitration. 13.3(3) Statement of damage claims. a. A petition for permit proposing new pipeline construction shall not be acted upon by the board if the pipeline company does not file with the board a written statement in compliance with Iowa Code chapter 479B as to how damages resulting from the construction of the pipeline shall be determined and paid. b. The statement shall contain the following information: the type of damages which will be compensated, how the amount of damages will be determined, the procedures by which disputes may be resolved, the manner of payment, and the procedures that the affected person is required to follow to obtain a determination of damages by a county compensation commission. c. The statement shall be amended as necessary to reflect changes in the law, company policy, or the needs of a specific project. d. A copy of this statement shall be mailed with the notice of informational meeting as provided for in Iowa Code section 479B.4. If no informational meeting is required, a copy shall be provided to each affected person prior to entering into negotiations for payment of damages. e. Nothing in this rule shall prevent a person from negotiating with the pipeline company for terms which are different, more specific, or in addition to the statement filed with the board. 13.3(4) Negotiation of easements. The pipeline company is not prohibited from responding to inquiries concerning existing easements or from requesting and collecting tenant and affected person information, provided that the pipeline company is not “negotiating” as defined at subrule 13.1(3). ITEM 7. Amend rule 199—13.4(479B) as follows:199—13.4(479B) Notice of hearing. 13.4(1) When a proper petition for permit is received byfiled with the board, it shall be docketed for hearing and the petitioner shall be advised of the time and place of hearing, except as provided for in rule 13.8(479B). Petitioner shall also be furnished copies of the official notice of hearing which petitioner shall cause to be published once each week for two consecutive weeks in a newspaper of general circulation in each county in or through which construction is proposed. The second publication shall be not less than 10 nor more than 30 days prior to the date of the hearing. Proof of publication shall be filed prior to or at the hearingthe petition shall be reviewed by board staff for compliance with applicable laws. Once board staff has completed the review and filed a report regarding the proposed pipeline and petition, the petition shall be set for hearing. This subrule does not apply to renewal petitions filed pursuant to rule 199—13.8(479B) which do not require a hearing. 13.4(2) The pipeline company shall be furnished copies of the official notice of hearing, which the pipeline company shall cause to be published once each week for two consecutive weeks in a newspaper of general circulation in each county in or through which construction is proposed. The second publication shall be not less than 10 and no more than 30 days prior to the date of the hearing. Proof of publication shall be filed prior to the hearing. 13.4(3) The published notice shall include a map showing either the pipeline route or the area affected by underground gashazardous liquid storage, or a telephone number and an address through which interested persons canmay obtain a copy of a map from petitionerthe pipeline company at no charge. If a map other than that filed as Exhibit B will be published or provided, a copy shall be filed with the petition. 13.(2) 13.4(4) If a petition for permit seeks the right of eminent domain, petitionerthe pipeline company shall, in addition to the published notice of hearing, serve a copy of the notice of hearing toon the owners and parties in possession of landslandowners and any affected person with an interest in the property over which eminent domain is sought. A copy of the Exhibit H filed with the board for the affected property shall accompany the notice. Service shall be by certified United States mail, return receipt requested, addressed to theirthe person’s last-known address;, and this notice shall be mailed notno later than the first day of publication of the official notice of hearing on the petition. Not less than five days prior to the date of the hearing, the petitionerpipeline company shall file with the board a certificate of service showing allpersons and addresses to which notice was sent by certified mail,and the date of the mailing, and an affidavit that all affected persons were served. 13.(3) 13.4(5) If a petition does not seek the right of eminent domain, but all required interests in private property have not yet been obtainedat the time the petition is filed, a copy of the notice of hearing shall be served upon the owners and parties in possession of those landsany affected person with interests in the property. Service shall be by ordinary mail, addressed to the last-known address,and mailed notno later than the first day of publication of the official notice. A copy of each letter of notification, or one copy of the letter accompanied by a written statement listing all partiespersons to which itwhom the notice was mailed,and the date of mailing,and an affidavit that all affected persons were served, shall be filed with the board not less than five days prior to the hearing. ITEM 8. Amend rule 199—13.5(479B) as follows:199—13.5(479B) Objections. AAny person, including a governmental entity, whose rights or interests may be affected by the object of a petitiona proposed pipeline or underground storage facility may file a written objectionwith the board. The written objectionWritten objections shall be filed with the secretary of the board not less than five days prior to date of hearing. The board may, for good cause shown, permit filing of objections less than five days prior to hearing, but in such event petitionerthe pipeline company shall be granted a reasonable time to meet objectionsrespond to a late-filed objection. ITEM 9. Amend rule 199—13.6(479B) as follows:199—13.6(479B) Hearing. Hearing shall beA petition for a pipeline permit, or amendment to a pipeline permit, shall be scheduled for hearing not less than 10 ornor more than 30 days from the date of last publication ofthe notice of hearing.Petitioner shall be represented by one or more duly authorized representatives or counsel or both. The board may examine the proposed route of the pipeline or location of the underground storage facilities which are the object of the petition or may cause examination to be made on its behalf by an engineer of its selection. One or more members of the board or a duly appointed administrative law judge shall consider the petition and any objections filed thereto and may hear testimony deemed appropriate. One or more petitions may be considered at the same hearing. Petitions may be consolidated. Hearing shall be held in the office of the board or at any other place within the state of Iowa as the board may designate. Any hearing permitted by these rules in which there are no objections, interventions or material issues in dispute may be conducted by telephonic means. Notice of the telephonic hearings shall be given to parties within a reasonable time prior to the date of hearing. 13.6(1) Representation of a pipeline company at a pipeline permit hearing shall comply with the requirements of 199—subrule 7.4(8). 13.6(2) The board or presiding officer may schedule a prehearing conference to consider a procedural schedule for the petition and a hearing date. 13.6(3) One or more petitions may be consolidated for hearing. 13.6(4) Hearings shall be scheduled and held in the office of the board or at any other place within the state of Iowa as the board may designate pursuant to Iowa Code section 479B.6. Requests for conducting a hearing or taking testimony by telephone or electronic means may be approved by the board or presiding officer. 13.6(5) The hearing requirements in this rule also apply to petitions for hazardous liquid underground storage permits and amendments to hazardous liquid underground storage permits. ITEM 10. Amend rule 199—13.7(479B) as follows:199—13.7(479B) Pipeline permit. If after hearing and appropriate findings of fact it is determined a permit should be granted, a permit shall be issued. Otherwise, the petition shall be dismissed with or without prejudice. Where proposed construction has not been established definitely, the permit will be issued on the route or location as set forth in the petition, subject to deviation of up to 660 feet (one-eighth mile) on either side of the proposed route. If the proposed construction is not completed within two years from the date of issue, subject to extension at the discretion of the board, the permit shall be void and of no further force or effect. Upon completion of the proposed construction, maps accurately showing the final routing of the pipeline shall be filed with the board.A permit shall normally expire 25 years from date of issue. No permit shall be granted for a period longer than 25 years. 13.7(1) A pipeline permit shall be issued once an order granting the permit is final and the compliance requirements have been met. A pipeline company may request board approval to delay obtaining consent to cross railroad right-of-way until after the pipeline permit is issued. 13.7(2) The issuance of the permit authorizes construction on the route or location as approved by the board, subject to deviation within the permanent route easement right-of-way. If a deviation outside the permanent route easement right-of-way becomes necessary, construction of the line in that location shall be suspended and the pipeline company shall follow the procedures for filing a petition for amendment of a permit, except that the pipeline company need only file Exhibits A, B, E and F, reflecting the proposed deviation. In case of any deviation from the approved permanent route easement, the pipeline company shall secure the necessary easements before construction may commence on the altered route. The right of eminent domain shall not be used to acquire any such easement except as specifically approved by the board, and a hearing will not be required unless the board determines a hearing is necessary to complete a review of the petition for amendment. 13.7(3) If the construction of facilities authorized by a permit is not commenced within two years of the date the permit is granted, or within two years after final disposition of judicial review of a permit or of condemnation proceedings, the permit shall be forfeited, unless the board grants an extension of the permit filed prior to the expiration of the two-year period. 13.7(4) Upon completion of the proposed construction, maps accurately showing the final routing of the pipeline, in compliance with 199—Chapter 9 and revised Exhibits A, B, and C, shall be filed with the board. 13.7(5) The board shall set the term of the permit. The term of the permit may be less than, but shall not exceed, 25 years from the date of issuance. ITEM 11. Amend rule 199—13.8(479B) as follows:199—13.8(479B) Renewal permits. A petition for renewal of permit may be filed at any time subsequent to issuance of a permit and prior to expiration. The petition shall be made on the form prescribed by the board. Instructions for the petition are included as a part of the form. The procedure for petition for permit shall be followed with respect to publication of notice, objections, and assessment of costs. If review of the petition finds unresolved issues of fact or law, or if an objection is filed within 20 days of the second publication of the published notice, the matter will be set for hearing. If a hearing is not required, a renewal permit will be issued upon the filing of the proof of publication required by subrule 13.4(1). Renewal permits shall normally expire 25 years from date of issue. No permit shall be granted for a period longer than 25 years. The same procedure shall be followed for subsequent renewals. 13.8(1) A petition for renewal of an original or previously renewed pipeline permit may be filed at any time subsequent to issuance of the permit and shall be filed at least one year prior to expiration of the permit. This requirement is not applicable to renewal of permits that expire within one year of October 13, 2021. The petition shall be made on the form prescribed by the board. Instructions for the petition are included as part of the form, and the form is available on the board’s website. The petition shall include the name of the pipeline company requesting renewal of the permit, the pipeline company’s principal office and place of business, a description of any amendment or reportable change since the permit or previous renewal permit was issued, and the same exhibits as required for a new permit. The petition shall be considered filed with the board on the date accepted into the board’s electronic filing system as provided for in 199—Chapter 14. The petition shall be attested to by an officer, official, or attorney with authority to represent the pipeline company. 13.8(2) The procedure for a petition for permit shall be followed with respect to publication of notice, objections, and assessment of costs. 13.8(3) If there are unresolved issues of fact or law, or if an objection is filed within 20 days of the second publication of the published notice, the board shall set the matter for hearing. If a hearing is not required, and the petition satisfies the requirements of this rule, a renewal permit will be issued upon the filing of the proof of publication as required by rule 199—13.4(479B). 13.8(4) The board shall set the term of a renewal permit. The term may be less than, but shall not exceed, 25 years from the date of issuance. The same procedure shall be followed in subsequent renewals. This rule is intended to implement Iowa Code sections 476.2 and 479B.14. ITEM 12. Amend rule 199—13.9(479B) as follows:199—13.9(479B) Amendment of permits. 13.9(1) An amendment ofa pipeline permit by the board is required in any of the following circumstances: a. Construction of aan additional pipeline parallelingall or part of an existing linepipeline of petitioner;the pipeline company. b. Extension of an existing pipeline of petitioner by more than 660 feet (one-eighth mile);the pipeline company outside of the permitted permanent route easement. c. Relocationor replacement of an existing pipeline of petitionerthe pipeline company which: (1) Relocates the pipeline more than 660 feet (one-eighth mile) from the routeoutside of the permitted permanent route easement approved by the board; or (2) Involves relocationor replacement requiring new or additional interests in property for five miles or more of pipe to be operated at over 150 psig. Informational meetings as provided for by rule 199—13.3(479B) shall be held for these relocations.If the relocation or replacement is for five miles or more of pipe to be operated in excess of 150 pounds per square inch gauge, an informational meeting, as provided in rule 199—13.2(479B), shall be held. d. Contiguous extension of an underground storage area of petitioner; orthe pipeline company. e. Modification of any condition or limitation placed on the construction or operation of the pipeline in the final order granting the pipeline permitor previous renewal of the permit. 13.9(2) Petition for amendment. a. The petition for amendment shall include the docket number and issue date of the permit for which amendment is sought and shall clearly state the purpose of the petition. If the petition is for construction of additional pipeline facilities, or expansion of an underground storage area, the same exhibits as required for a petition for permit shall be attached. b. The applicable procedures for petition for permit, including hearing, shall be followed. Upon appropriate determination by the board, an amendment to a permit willshall be issued. The amendment shall be subject to the same conditions with respect to completioncommencement of construction within two years and the filing of final routing maps as attached to a permitrequired for pipeline permits. ITEM 13. Amend rule 199—13.10(479B) as follows:199—13.10(479B) Fees and expenses. The petitionerpipeline company shall pay the actual unrecovered cost incurred by the board attributable to theinformational meeting, processing, investigation, andhearing, inspection related to a petition requesting a pipeline permit action, and any other activity of the board related to a pipeline permit, pursuant to 199—Chapter 17.Any moneys collected by the board from other sources for chargeable activities will be deducted from billings for actual expenses submitted to the petitioner. ITEM 14. Renumber rule 199—13.12(479B) as 199—13.11(479B). ITEM 15. Amend renumbered rule 199—13.11(479B) as follows:199—13.11(479B) Land restoration. Pipelines shall be constructed in compliance with 199 IAC199—Chapter 9, “Restoration of Agricultural Lands During and After Pipeline Construction.” ITEM 16. Renumber rule 199—13.14(479B) as 199—13.12(479B). ITEM 17. Amend renumbered rule 199—13.12(479B) as follows:199—13.12(479B) Crossings of highways, railroads, and rivers. 13.12(1) Iowa Code chapter 479B gives the Iowa utilities board primary authority over the routing of pipelines. However, highway and railroad authorities and environmental agencies may have a jurisdictional interest in the routing of the pipeline, including requirements that permits or other authorizations be obtained prior to construction for crossings of highway or railroad right-of-way, or rivers or other bodies of water. 13.12(2) Except for other than approximate right angle crossings of highway or railroad right-of-way, the approvalApproval of other authorities need not be obtained prior to petitioning the board for a pipeline permit. It is recommended the appropriateThe pipeline company shall file with the petition information that shows the pipeline company contacted the othernecessary authorities be contacted well in advance of constructionfiling the petition to determine what restrictions or conditions may be placed on the crossing,by those authorities and to obtain information on any proposed reconstruction or relocation of existing facilities which may impact the routing of the pipeline.Approvals and any restrictions, conditions, or relocations of existing facilities are required to be filed with the board prior to the grant of the permit. A pipeline company may request board approval to begin construction on a segment of a pipeline prior to obtaining all necessary consents for construction of the entire pipeline. 13.(2) 13.12(3) Pipeline routes which include crossings of highway or railroad right-of-way at other than an approximate right angle, or longitudinally on the right-of-way, shall not be constructed unless a showing of consent by the appropriate authority has been provided by the petitionerpipeline company as required in paragraph 13.2(1)“e.”13.3(1)“e.” ITEM 18. Renumber rules 199—13.18(479B) and 199—13.19(479B) as 199—13.13(479B) and 199—13.14(479B). ITEM 19. Amend renumbered rule 199—13.13(479B) as follows:199—13.13(479B) Reportable changes to pipelines under permit. 13.13(1) The boardA pipeline company shall receivefile prior noticewith the board of any of the following actions affecting a pipeline under permit: a. Abandonment or removal from service.The pipeline company shall also notify the landowners of the abandonment or removal of the pipeline from service. b. Relocation of more than 300 feet from the original alignment, or any relocation that would bring the pipeline to within 300 feet of an occupied residence. Relocations of 660 feet (one-eighth mile) or more shall require the filing of a petition for amendment of a permit.Pressure test or increase in maximum allowable operating pressure. c. Change in product being transported. d. c. Replacement of a pipeline or significant portion thereof, not including short repair sections of pipe at least as strong as the original pipe. e. Extensions of existing pipelines by 660 feet (one-eighth mile) or less. 13.13(2) The notice shall include the docket and permit numbers of the pipeline, the location involved, a description of the proposed activity, anticipated dates of commencement and completion, revised maps and facility descriptions, where appropriate, and the name and telephone number of a person to contact for additional information. ITEM 20. Amend renumbered rule 199—13.14(479B) as follows:199—13.14(479B) Sale or transfer of permit. 13.14(1) No permit shall be soldor transferred without prior written approval of the board. A petition for approvalof the sale or transfer shall be jointly filed by the buyer, or transferee, andthe seller, or transferor, and shall include assurances that the buyer, or transferee, is authorized to transact business in the state of Iowa; that the buyerand is willing and able to construct, operate, and maintain the pipeline in accordance with these rules; and, if. If the sale, or transfer, is prior to completion of construction of the pipeline, that the buyer, or transferee, shall demonstrate it has the financial ability to pay,up to $250,000 infor damagesassociated with construction or operation of the pipeline, up to $250,000 or any other amount the board determined necessary when granting the permit. 13.14(2) No transfer of pipeline permit prior to completion of pipeline construction shall be effective until the person to whom the permit was issued files notice with the board of the transfer. The notice shall include the date of the transfer and the name and address of the transferee. 13.14(3) The board shall receive notice from the transferor of any other transfer of a pipeline permit after completion of construction. 13.14(2) For the purposes of this rule, reassignment of a pipeline permit as part ofa name change or a corporate restructuring, with no change in pipeline operating personnel or procedures, is considered a transferand requires prior board approval. ITEM 21. Adopt the following new rule 199—13.15(479B):199—13.15(479B) Reports to federal agencies. 13.15(1) Upon submission of any incident, annual, or other report to the U.S. Department of Transportation pursuant to 49 CFR Part 195, a pipeline company shall file a copy of the report with the board. The board shall also be advised of any telephonic incident report made by the pipeline company. The pipeline company shall notify the board, as soon as possible, of any incident by emailing the duty officer at dutyofficer@iub.iowa.gov or, if email is not available, by calling the board duty officer at (515)745-2332. 13.15(2) Pipeline companies operating in other states shall provide to the board data for Iowa only. ITEM 22. Adopt the following new rule 199—13.16(479B):199—13.16(479B) Termination of petition for pipeline permit proceedings. If a pipeline company fails to correct an identified deficiency within six months after written notification by the board, or after such shorter period as the board may specify in the written notification, to cure an incomplete or deficient permit petition, or a pipeline company fails to publish the official notice within 90 days after the official notice is provided by the board, the board may dismiss the petition. [Filed 8/12/21, effective 10/13/21][Published 9/8/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/8/21.