Proposing rule making related to processes and procedures and providing an opportunity for public comment
The Department of Administrative Services hereby proposes to amend Chapter 4, “Public Records and Fair Information Practices,” Chapter 6, “Agency Procedure for Rule Making,” Chapter 43, “Employee Payroll Deductions for Charitable Organizations,” Chapter 45, “Payroll Deduction for Tuition Program Contributions,” Chapter 46, “Payroll Deduction for Additional Insurance Coverage,” Chapter 60, “Separations, Disciplinary Actions and Reduction in Force,” Chapter 64, “Benefits,” Chapter 71, “Combined Charitable Campaign,” Chapter 103, “State Employee Driving Guidelines,” Chapter 110, “Inventory Guidelines for State of Iowa Personal and Real Property,” Chapter 117, “Procurement of Goods and Services of General Use,” Chapter 118, “Purchasing Standards for Service Contracts,” and Chapter 119, “Uniform Terms and Conditions for Service Contracts,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 8A.104, 8A.311, 17A.3 and 17A.4.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 8A.104 and 17A.7(2).Purpose and Summary These rules are being amended to correct outdated processes, procedures, and references. The proposed amendments address 13 of the Department’s chapters in the Iowa Administrative Code and are submitted as part of the Department’s five-year review of rules.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 The Department will not grant waivers under the provisions of these rules, other than as may be allowed under Chapter 9 of the Department’s rules concerning waivers.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 October 18, 2018. Comments should be directed to: Tami Wiencek Department of Administrative Services Hoover State Office Building 1305 East Walnut Street Des Moines, Iowa 50319-0114 Phone: 515.725.2017 Fax: 515.281.6140 Email: tami.wiencek@iowa.govPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: October 18, 2018 10 to 11 a.m. Conference Room 5, A Level Hoover State Office Building Des Moines, Iowa Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:
ITEM 1. Amend paragraph 4.13(2)"l" as follows: l. Confidential assignments of state vehicles by the state vehicle dispatcherfleet services. These records include letters/memos detailing driver assignments and plate numbers for selected vehicles pursuant to 2003 Iowa Code Supplement sectionsections8A.362, and Iowa Code section 321.19(1). ITEM 2. Amend paragraph 4.14(6)"f" as follows: f. Telephone directory of state employees.The information technology enterpriseoffice of the chief information officer maintains a telephone directory of state employees. The directory contains names, department names, business addresses and telephone numbers. The publication also includes private industry information and advertising containing business names, addresses and telephone numbers. This record is stored on bothon paper and electronically. ITEM 3. Amend rule 11—6.10(17A) as follows:11—6.10(17A) Exemptions from public rule-making procedures. 6.10(1) Omission of notice and comment. To the extent the department for good cause finds that public notice and participation are unnecessary, impracticable, or contrary to the public interest in the process of adopting a particular rule, theThe department may adopt thata rule without publishing advance Notice of Intended Action in the Iowa Administrative Bulletin and without providing for written or oral public submissions prior to its adoptionpursuant to Iowa Code section 17A.4(3)“a” when the statute so provides or with the approval of the administrative rules committee. The department shall incorporate the required finding and a brief statement of its supporting reasons in each rule adopted in reliance upon this subrule. 6.10(2) Categories exempt. The following narrowly tailored categories of rules are exempted from the usual public notice and participation requirements because those requirements are unnecessary, impracticable, or contrary to the public interest with respect to each and every member of the defined class: rules mandated by either state or federal law. 6.(3) 6.10(2) Public proceedings on rules adopted without them. The department may, at any time, commence a standard rule-making proceeding for the adoption of a rule that is identical or similar to a rule it adopts in reliance upon subrule 6.10(1). Upon written petition by a governmental subdivision, the administrative rules review committee, an agency, the administrative rules coordinator, an association having not less than 25 members, or at least 25 persons, the department shall commence a standard rule-making proceeding for any rule specified in the petition that was adopted in reliance upon subrule 6.10(1). Such a petition must be filed within one year of the publication of the specified rule in the Iowa Administrative Bulletin as an adopted rule. The rule-making proceeding on that rule must be commenced within 60 days of the receipt of such a petition. After a standard rule-making proceeding commenced pursuant to this subrule, the department may either readopt the rule it adopted without benefit of all usual procedures on the basis of subrule 6.10(1), or may take any other lawful action, including the amendment or repeal of the rule in question, with whatever further proceedings are appropriate. ITEM 4. Amend rule 11—6.17(17A) as follows:11—6.17(17A) Review by department of rulesby department. Pursuant to Iowa Code section 17A.7(2) beginning July 1, 2012, over each five-year period of time, the department shall conduct an ongoing and comprehensive review of the department’s rules. 6.17(1) Any interested person, association, agency, or political subdivision may submit a written request to the administrative rules coordinator requesting the department to conduct a formal review of a specified rule. Upon approval of that request by the administrative rules coordinator, the department shall conduct a formal review of a specified rule to determine whether a new rule should be adopted instead or whether the rule should be amended or repealed. The department may refuse to conduct a review if it has conducted such a review of the specified rule within five years prior to the filing of the written request. 6.17(2) In conducting the formal review, the department shall prepare within a reasonable time a written report summarizing its findings, its supporting reasons, and any proposed course of action. The report must include a concise statement of the department’s findings regarding the rule’s effectiveness in achieving its objectives, including a summary of any available supporting data. The report shall also concisely describe significant written criticisms of the rule received during the previous five years, including a summary of any petitions for waiver of the rule received by the department or granted by the department. The report shall describe alternative solutions to resolve the criticisms of the rule, the reasons any were rejected, and any changes made in the rule in response to the criticisms as well as the reasons for the changes. A copy of the department’s report shall be sent to the administrative rules review committee and the administrative rules coordinator. The report must also be available for public inspection. ITEM 5. Amend subrule 43.2(2) as follows: 43.2(2) Have 100 or more eligible state officers and employees participating for any payroll system except as follows:as set forth in rule 11—43.5(70A). a. In the case of employees at the University of Northern Iowa, 50 or more. b. In the case of employees at the Iowa School for the Deaf and the Iowa Braille and Sight Saving School, 25 or more participants. ITEM 6. Amend rule 11—43.5(70A) as follows:11—43.5(70A) Payroll system. A payroll system for the purpose of this chapter is any one of the following:- State of Iowa centralized.
- Department of transportation.
- Iowa State University of Science and Technology.
- State University of Iowa.
- University of Northern Iowa.
- Iowa Braille and Sight Saving School.
- Iowa School for the Deaf.
- Iowa state fair board.
- Community-based corrections.
- State of Iowa centralized.
- Department of transportation.
- Iowa State University of Science and Technology.
- State University of Iowa.
- University of Northern Iowa.
- Iowa Braille and Sight Saving School.
- Iowa School for the Deaf.
- Iowa state fair board.
- Department.
- Tag number.
- Description.
- Acquisition value.
- Location(s).
- Acquisition date.
- Disposition date (not applicable until disposal of property).
- The only depreciation method allowed shall be the straight-line method.
- If the department depreciates personal propertyis depreciated, the information must include the useful life of the asset.
Proposing rule making related to hiring practices for Iowa national service corps or AmeriCorps participants and providing an opportunity for public comment
The Department of Administrative Services hereby proposes to amend Chapter 54, “Recruitment, Application and Examination,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 8A.104, 8A.413(4), 8A.413(7), 17A.3, and 17A.4.State or Federal Law Implemented This rule making implements, in whole or in part, 2018 Iowa Acts, House File 2420.Purpose and Summary 2018 Iowa Acts, House File 2420, establishes an Iowa National Service Corps Program administered by the Iowa Commission on Volunteer Service. Pursuant to 2018 Iowa Acts, House File 2420, state agencies or political subdivisions of the state may establish hiring preferences for any Iowa National Service Corps or AmeriCorps participant who has successfully completed a year of full-time service or 1,700 hours of service over a period extending beyond a year. The proposed amendment comports with 2018 Iowa Acts, House File 2420.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 The Department will not grant waivers under the provisions of these rules, other than as may be allowed under Chapter 9 of the Department’s rules concerning waivers.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 October 17, 2018. Comments should be directed to: Tami Wiencek Department of Administrative Services Hoover State Office Building 1305 East Walnut Street Des Moines, Iowa 50319-0114 Phone: 515.725.2017 Fax: 515.281.6140 Email: tami.wiencek@iowa.govPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: October 17, 2018 3 to 4 p.m. Conference Room 5, A Level Hoover State Office Building Des Moines, Iowa Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making action is proposed:
ITEM 1. Adopt the following new subrule 54.5(3): 54.5(3) Preference for Iowa national service corps or AmeriCorps. State agencies may establish hiring preferences for an applicant who has participated in Iowa national service corps or AmeriCorps in accordance with 2018 Iowa Acts, House File 2420.ARC 4020CAdministrative Services Department[11]Notice of Intended ActionProposing rule making related to continuation of benefits and providing an opportunity for public comment
The Department of Administrative Services hereby proposes to amend Chapter 64, “Benefits,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 8A.104, 17A.3 and 17A.4.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 8A.402(1)“c” and 2018 Iowa Acts, House File 2502.Purpose and Summary 2018 Iowa Acts, House File 2502, division XVII, creates a new section of Iowa Code, 509A.13C, addressing continuing coverage of health care benefits for the surviving spouse and each surviving child of an eligible peace officer or fire fighter killed in the line of duty. Pursuant to Iowa Code section 8A.402(1)“c,” the Department is the central agency responsible for state human resource management, including employee benefits. The new section in Iowa Code chapter 509A says, in part, if a governing body, a county board of supervisors, or a city council has procured accident or health care coverage for its employees under this chapter, such coverage shall permit continuation of existing coverage or reenrollment in previously existing coverage for the surviving spouse and each surviving child of an eligible peace officer or fire fighter killed in the line of duty. The proposed amendment comports with 2018 Iowa Acts, House File 2502.Fiscal Impact The fiscal impact cannot be determined. While there is an eligible population, there is no evidence of participation in the new offering. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers The Department will not grant waivers under the provisions of these rules, other than as may be allowed under Chapter 9 of the Department’s rules concerning waivers.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 October 16, 2018. Comments should be directed to: Tami Wiencek Department of Administrative Services Hoover State Office Building 1305 East Walnut Street Des Moines, Iowa 50319-0114 Phone: 515.725.2017 Fax: 515.281.6140 Email: tami.wiencek@iowa.govPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: October 16, 2018 10 to 11 a.m. Conference Room 5, A Level Hoover State Office Building Des Moines, Iowa Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making action is proposed:
ITEM 1. Adopt the following new subrule 64.15(3): 64.15(3) The surviving spouse and each surviving child of an eligible peace officer or fire fighter, as defined in 2018 Iowa Acts, House File 2502, are eligible for the continuation of existing, or reenrollment in previously existing, health insurance coverage.ARC 4018CAdministrative Services Department[11]Notice of Intended ActionProposing rule making related to procurement of state vehicles and providing an opportunity for public comment
The Department of Administrative Services hereby proposes to amend Chapter 117, “Procurement of Goods and Services of General Use,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 8A.104, 8A.311, 17A.3 and 17A.4.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 8A.311(20) and 2018 Iowa Acts, Senate File 2416.Purpose and Summary 2018 Iowa Acts, Senate File 2416, amends Iowa Code section 8A.311(20), eliminating life cycle costing as a determination in purchasing vehicles for the State of Iowa fleet. 2018 Iowa Acts, Senate File 2416, instead provides that the purchase of passenger vehicles; light, medium-duty, and heavy-duty trucks; passenger and cargo vans; and sport utility vehicles shall be awarded to the lowest responsive and responsible bidder based solely on bid price. The proposed amendments comport with 2018 Iowa Acts, Senate File 2416.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 The Department will not grant waivers under the provisions of these rules, other than as may be allowed under Chapter 9 of the Department’s rules concerning waivers. 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 October 17, 2018. Comments should be directed to: Tami Wiencek Department of Administrative Services Hoover State Office Building 1305 East Walnut Street Des Moines, Iowa 50319-0114 Phone: 515.725.2017 Fax: 515.281.6140 Email: tami.wiencek@iowa.govPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: October 17, 2018 2 to 3 p.m. Conference Room 5, A Level Hoover State Office Building Des Moines, Iowa Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:
ITEM 1. Amend subrule 117.12(3) as follows: 117.12(3) Life cycle cost and energy efficiency. The department and agencies shall utilize life cycle cost and energy efficiency criteria in developing standards and specifications for procuring energy-consuming productsexcept for passenger vehicles; light, medium-duty, and heavy-duty trucks; passenger and cargo vans; and sport utility vehicles. ITEM 2. Amend subrule 117.12(6) as follows: 117.12(6) Vehicle procurement. a. Specifications for procurement of all non-law enforcement, light-duty vehicles, excluding those purchased and used for off-road maintenance work or to pull loaded trailers, shall be for flexible fuel vehicles (as defined by Iowa Code section 8A.362(5)) when an equivalent flexible fuel model is available. b. Use of specifications for hybrid-electric or other alternative fuel vehicles (as defined by Iowa Code section 8A.362(5)) is encouraged. Procurement of hybrid-electric or other alternative fuel vehicles may be dependent upon whether the costscost of the vehicle’s life cycle arevehicle is equivalent to a non-alternative fuel vehicle or non-flexible fuel vehicle (a vehicle with a gasoline E10 engine) prior to the year 2010. c. The life cycle costs of American motor vehicles shall be reduced by 5 percent in order to determine if the motor vehicle is comparable to foreign-made motor vehicles. The life cycle costs of a motor vehicle shall be determined on the basis of the bid price, the resale value, and the operating costs based upon a useable life of five years or 75,000 miles, whichever occurs first. d. c. The average fuel efficiency for new passenger vehicles and light trucks, as defined in paragraph 117.12(6)“a,” that are purchased in a year shall equal or exceed the average fuel economy standard for the vehicles’ model years as published by the United States Secretary of Transportation.ARC 4004CAgriculture and Land Stewardship Department[21]Notice of Intended ActionProposing rule making related to agricultural lime and providing an opportunity for public comment
The Agriculture and Land Stewardship Department hereby proposes to amend Chapter 43, “Fertilizers and Agricultural Lime,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 201A.5 and 201A.8.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 201A.5.Purpose and Summary The proposed amendments increase the cost of testing an individual sample of agricultural lime from $25 to $60. The testing fee has not been increased since 1988. The proposed amendments also reduce the number of samples that have to be taken and remove references to Iowa State University.Fiscal Impact Last year, 181 samples were tested. If the same number holds, an additional $6,335 in fees would be collected under the proposed amendments. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 21—Chapter 8. Public Comment Any interested person may submit written 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 October 16, 2018. Comments should be directed to: Margaret Thomson Iowa Department of Agriculture and Land Stewardship Wallace State Office Building 502 East 9th Street Des Moines, Iowa 50319 Fax: 515.281.6236 Email: margaret.thomson@Iowaagriculture.govPublic Hearing No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:
ITEM 1. Amend subrule 43.20(2) as follows: 43.20(2) Sample fee. The manufacturer or producer of agricultural lime, limestone, or aglime shall pay a fee of no more than $25$60 per sample collected. This fee may be adjusted by the secretary of agriculture by a separate notice letter to each manufacturer or producer to reflect as accurately as possible the actual cost of sampling and testing expended by the Iowa department of agriculture and land stewardship and Iowa State University for each sample taken at the manufacturer’s or producer’s facilities. ITEM 2. Amend rule 21—43.20(201), implementation sentence, as follows: This rule is intended to implement Iowa Code sections 201.6201A.6 and 201.12201A.11. ITEM 3. Amend subrules 43.32(1) and 43.32(4) as follows: 43 43.32 32(1) Samples of agricultural liming material for analyzing the number of pounds of ECCE shall be obtained by taking samples from the manufacturer’s production belt or stockpile. SamplesA minimum of one sample and up to five samples shall be taken at locations where there are permanent production facilities once each calendar month during the monthsyear that agricultural liming material is being produced. Samples shall be taken at locations where there are no permanent production facilities once during the first weektime that a portable plant is at the location producing agricultural liming material and once each week. Subsequent samples will be taken either during the period that the portable plant is at the locationor from the stockpile created, until a total ofthree to five representative samplesfrom the pile have been accumulated and submitted for analysis, after which a sample shall be obtained and tested once each calendar month during the months in which agricultural liming material is being produced. The manufacturer or producer of agricultural liming material shall notify the secretary of agriculture or person or persons appointed by the secretary of the production of agricultural liming material seven calendar days prior to the manufacture or production of agricultural liming material so that samples may be obtained by a person or persons appointed by the secretary in compliance with this rule. 43 43.32 32(4) Samples of water treatment plant lime for analyzing the number of pounds of ECCE shall be obtained by taking samples from the water plant designated sampling point. Samples shall be taken once each month during the months when agricultural liming material is being taken off-site for land application. The producer of the agricultural liming material shall notify the secretary of agriculture or person(s) appointed by the secretary about the intent to land apply the liming material seven calendar days prior to the land application ofwhen agricultural liming materialis stockpiled so that samples may be obtained in compliance with this rule. ITEM 4. Amend rule 21—43.34(201A) as follows:21—43.34(201A) Sample fee. The manufacturer or producer of agricultural liming material or specialty limestone shall pay a fee of no more than $25$60 per sample collected. This fee may be adjusted by the secretary of agriculture by a separate notice letter to each manufacturer or producer to reflect as accurately as possible the actual cost of sampling and testing expended by the Iowa department of agriculture and land stewardship and Iowa State University of Science and Technology for each sample collected. ITEM 5. Amend subrule 43.35(1) as follows: 43.35(1) The secretary of agriculture shall, upon receipt of the analysis provided in rule 21—43.33(201A), certify the number of pounds of ECCE, using the method provided in rule 21—43.31(201A). The certification shall be forwarded to the manufacturer or producer from whom the sample was obtained by written notice and sent by United States mail.Each certification of ECCE shallshould be based on the average of a maximum of five analyses from five samples. Each new analysis received shallshould be added to the previous five analyses and the oldest analysis shall be omitted. Fewer than five analyses shall be averaged on the basis of the actual number of analyses. Nothing in this rule shall preclude a manufacturer or producer from having a certification on separate stockpiles of agricultural liming material provided that each stockpile shall be separated from any other stockpile and each separate stockpile has been sampled and certified as required.ARC 4005CDental Board[650]Notice of Intended ActionProposing rule making related to dental licensure and providing an opportunity for public comment
The Dental Board hereby proposes to amend Chapter 11, “Licensure to Practice Dentistry or Dental Hygiene,” and Chapter 20, “Dental Assistants,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 147.76.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 147.2, 153.15A, 153.21, 153.33B and 153.39.Purpose and Summary The purpose of the proposed amendments is to clarify when the executive director can administratively issue a license, permit, or registration and to clarify the role of the license and registration committee in reviewing license, permit, and registration applications.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 The proposed amendments are not subject to waiver or variance pursuant to 650—Chapter 7.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 October 26, 2018. Comments should be directed to: Steve Garrison Iowa Dental Board 400 S.W. Eighth Street, Suite D Des Moines, Iowa 50309 Phone: 515.281.3248 Fax: 515.281.7969 Email: steven.garrison@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 actions are proposed:
ITEM 1. Amend rule 650—11.8(147,153) as follows:650—11.8(147,153) Review of applications. Upon receipt of a completed application, the executive director as authorized by the board has discretion to:- Authorize the issuance of the license, permit, or registration.
- Refer the license, permit, or registration application to the licenseand registration committee for review and consideration when the executive director determines that matters including, but not limited to, prior criminal history, chemical dependence, competency, physical or psychological illness, malpractice claims or settlements, or professional disciplinary history are relevant in determining the applicants’ qualifications for license, permit, or registration.
Proposing rule making related to providers of behavioral health services to medical assistance recipients and providing an opportunity for public comment
The Human Services Department hereby proposes to amend Chapter 77, “Conditions of Participation for Providers of Medical and Remedial Care,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 249A.4; 249A.15 as amended by 2018 Iowa Acts, Senate File 2418; and 249A.15A as amended by 2018 Iowa Acts, Senate File 192.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 249A.4; 2018 Iowa Acts, Senate File 2418, sections 135 and 136; and 2018 Iowa Acts, Senate File 192, section 12.Purpose and Summary These proposed amendments reflect a recent statutory change entitling behavior analysts and assistant behavior analysts who are licensed pursuant to Iowa Code chapter 154D to payment for behavioral health services provided to recipients of medical assistance. These amendments also reflect recent statutory changes entitling provisionally licensed psychologists, temporarily licensed marital and family therapists and temporarily licensed mental health counselors who are licensed pursuant to Iowa Code section 154D.7 to payment for behavioral health services provided to recipients of medical assistance.Fiscal Impact These changes may allow Medicaid members additional access to behavioral health services; however, any fiscal impact is expected to be minimal. Medicaid currently allows behavioral analysts and assistant behavioral analysts to provide services, but the supervising authority must do the billing. These amendments will allow for these two professional types to bill Medicaid directly. Since the Medicaid program is already incurring these costs, minimal fiscal impact is expected. The amendments adding provisionally licensed psychologists, temporarily licensed marital and family therapists, and temporarily licensed mental health counselors as eligible providers under Medicaid is expected to have minimal fiscal impact since the change is consistent with current policy.Jobs Impact These amendments may incentivize additional behavior analysts and assistant behavior analysts to practice in Iowa and enroll with Medicaid to deliver behavioral health services to Medicaid members.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).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 October 16, 2018. Comments should be directed to: Harry Rossander Bureau of Policy Coordination Department of Human Services Hoover State Office Building, Fifth Floor 1305 East Walnut Street Des Moines, Iowa 50319-0114 Email: policyanalysis@dhs.state.ia.usPublic Hearing No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:
ITEM 1. Amend rule 441—77.22(249A) as follows:441—77.22(249A) Psychologists. 77.22(1) All psychologists licensed to practice in the state of Iowa and meeting the current credentialing requirements of the National Register of Health Service Psychologists are eligible to participate in the medical assistance program. Psychologists in other states are eligible to participate when they are duly licensed to practice in that state and meet the current credentialing requirements of the National Register of Health Service Psychologists. 77.22(2) A psychologist provisionally licensed to practice in the state of Iowa pursuant to Iowa Code section 154B.6 is eligible to participate in the medical assistance program when the person: a. Possesses a doctoral degree in psychology from an institution approved by the board of behavioral science; and b. Provides treatment under the supervision of a licensed psychologist pursuant to Iowa Code section 154B.6. Claims for payment for such services must be submitted by the licensed psychologist. 77.22(3) A psychologist provisionally licensed in another state is eligible to participate when the person: a. Possesses a doctoral degree in psychology from an institution approved by the board of behavioral science; and b. Provides treatment under the supervision of a licensed psychologist pursuant to Iowa Code section 154B.6. Claims for payment for such services must be submitted by the licensed psychologist who is duly licensed to practice in that state. This rule is intended to implement Iowa Code sections 249A.4 and 249A.15as amended by 2018 Iowa Acts, Senate File 2418. ITEM 2. Amend rule 441—77.26(249A) as follows:441—77.26(249A) Behavioral health services. The following persons are eligible to participate in the Medicaid program as providers of behavioral health services. 77.26(1) Licensed marital and family therapists (LMFT). Any person licensed by the board of behavioral science as a marital and family therapist pursuant to 645—Chapter 31 is eligible to participate. A marital and family therapist in another state is eligible to participate when duly licensed to practice in that state. 77.26(2) Temporarily licensed marital and family therapists. Any person who holds a temporary license to practice marital and family therapy pursuant to Iowa Code section 154D.7 is eligible to participate when the temporarily licensed marital and family therapist provides treatment under the supervision of a qualified marital and family therapist as determined by the board of behavioral science by rule. Claims for payment for such services must be submitted by the supervising licensed marital and family therapist. 77.(2) 77.26(3) Licensed independent social workers (LISW). Any person licensed by the board of social work as an independent social worker pursuant to 645—Chapter 280 is eligible to participate. An independent social worker in another state is eligible to participate when duly licensed to practice in that state. 77.(3) 77.26(4) Licensed master social workers (LMSW). a. A person licensed by the board of social work as a master social worker pursuant to 645—Chapter 280 is eligible to participate when the person: (1) Holds a master’s or doctoral degree as approved by the board of social work; and (2) Provides treatment under the supervision of an independent social worker licensed pursuant to 645—Chapter 280. b. A master social worker in another state is eligible to participate when the person: (1) Is duly licensed to practice in that state; and (2) Provides treatment under the supervision of an independent social worker duly licensed in that state. 77.(4) 77.26(5) Licensed mental health counselors (LMC). Any person licensed by the board of behavioral science as a mental health counselor pursuant to Iowa Code chapter 154D and 645—Chapter 31 is eligible to participate. A mental health counselor in another state is eligible to participate when duly licensed to practice in that state. 77.26(6) Temporarily licensed mental health counselors. Any person temporarily licensed by the board of behavioral science as a mental health counselor pursuant to Iowa Code section 154D.7 is eligible to participate when the temporarily licensed mental health counselor provides treatment under the supervision of a qualified mental health counselor as determined by the board of behavioral science by rule. Claims for payment for such services must be submitted by the supervising licensed mental health counselor. 77.(5) 77.26(7) Certified alcohol and drug counselors. Any person certified by the nongovernmental Iowa board of substance abuse certification as an alcohol and drug counselor is eligible to participate. 77.26(8) Licensed behavior analysts. Any person licensed by the board of behavioral science as a behavior analyst pursuant to Iowa Code chapter 154D is eligible to participate. A licensed behavior analyst in another state is eligible to participate when duly licensed to practice in that state. 77.26(9) Licensed assistant behavior analysts. A person licensed by the board of behavioral science as an assistant behavior analyst pursuant to Iowa Code chapter 154D is eligible to participate when the licensed assistant behavior analyst: a. Holds current certification as an assistant behavior analyst by a certifying entity; and b. Provides treatment under the supervision of a behavior analyst licensed pursuant to Iowa Code chapter 154D. Claims for payment for such services must be submitted by the supervising licensed behavior analyst. This rule is intended to implement Iowa Code chapter 249A as amended by 2011 Iowa Acts, Senate File 2332018 Iowa Acts, Senate Files 192 and 2418.ARC 4033CHuman Services Department[441]Notice of Intended ActionProposing rule making related to subsidized adoptions and providing an opportunity for public comment
The Human Services Department hereby proposes to amend Chapter 201, “Subsidized Adoptions,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 234.6.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 234.6, Social Security Act Section 473(a)(4)(A) and (B), and 45 CFR 205.10.Purpose and Summary The administrative rules for subsidized adoptions are being revised to update outdated language, clarify eligibility criteria for special needs children, and clarify allowable expenses under special services and to add a provision to suspend adoption subsidy under defined circumstances. The proposed amendments promote consistency in the application of eligibility criteria through clarification of the rules. Federal policy has been updated to allow states to suspend adoption subsidy payments when concerns arise that the family is not financially supporting the family’s adoptive child. Suspension of adoption subsidy payments was not previously allowed by federal policy. Adoptive families would be affected by these amendments, potentially to their detriment. These amendments formalize the ability of the Department to assess and suspend a family’s use of adoption subsidy funds if concerns are brought forward that the adoptive child is not being supported. Payments would be suspended during the Department’s review and would be reinstated if the family is found to be supporting the family’s adoptive child or if the family agrees to provide documentation that the family is providing appropriate support and provides that documentation. These amendments would allow the Department to terminate the subsidy agreement if the family is not supporting the adoptive child and will not agree to provide and document support for the adoptive child.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). 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 October 16, 2018. Comments should be directed to: Harry Rossander Bureau of Policy CoordinationDepartment of Human Services Hoover State Office Building, Fifth Floor1305 East Walnut StreetDes Moines, Iowa 50319-0114Email: policyanalysis@dhs.state.ia.usPublic Hearing No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:
ITEM 1. Amend rule 441—201.2(600), definitions of “Maintenance subsidy,” “Mental health professional,” “Mental retardation professional,” “Presubsidy,” and “Special services subsidy,” as follows: "Maintenance subsidy" means a monthly payment to assistthe family in meeting the living expenses and expenses related to the care of a special needs child in covering the cost of room, board, clothing, and spending money. The child will also be eligible for medical assistance pursuant to 441—Chapter 75. "MentalQualified mental health professional" means the same as defined in rule 441—24.1(225C).a person who meets all of the following conditions:- Holds a master’s degree in a mental health field including, but not limited to, psychology, counseling and guidance, or psychiatric nursing and social work; or is a doctor of medicine or osteopathic medicine; and
- Holds a current Iowa license when required by the Iowa professional licensure laws for persons practicing as a psychiatrist, a psychologist, a marital and family therapist, a mental health counselor, an advanced registered nurse practitioner, a psychiatric nurse, or a social worker; and
- Has at least two years of postdegree experience supervised by a mental health professional in assessing mental health problems, mental illness, and services needs and in providing mental health services.
- A doctor of medicine or osteopathy.
- A registered nurse.
- A person who holds at least a bachelor’s degree in a human services field including, but not limited to:, social work, sociology, special education, rehabilitation counseling, andor psychology.
- The services are not available from a Medicaid provider within a reasonable distance from the family.
- The child and the family were already receiving therapy or counseling from a non-Medicaid provider and it would not be in the child’s best interest to disrupt the services.
- Available Medicaid providers lack experience in working with foster, adoptive, or blended families.
Proposing rule making related to subsidized guardianship program and providing an opportunity for public comment
The Human Services Department hereby proposes to amend Chapter 204, “Subsidized Guardianship Program,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 234.6.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 234.6, 45 CFR 1356.21, and the Social Security Act, Sections 472 and 473(d)(3).Purpose and Summary The administrative rules for subsidized guardianship are being amended in order to implement the program under the guidelines of the federal Fostering Connections to Success and Increasing Adoptions Act. The previous program was administered through a federal waiver which has been eliminated.Fiscal Impact This rule making has a fiscal impact of $100,000 annually or $500,000 over five years to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers These amendments do not provide for waivers in specified situations because requests for the waiver of any rule may be submitted under the Department’s general rule on exceptions at 441—1.8(17A,217). 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 October 16, 2018. Comments should be directed to: Harry Rossander Bureau of Policy Coordination Department of Human Services Hoover State Office Building, Fifth Floor 1305 East Walnut Street Des Moines, Iowa 50319-0114 Email: policyanalysis@dhs.state.ia.usPublic Hearing No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:
ITEM 1. Amend 441—Chapter 204, Preamble, as follows: PreambleThis chapter implemented a five-year demonstration waiver project forimplements a subsidized guardianship program to provide financial assistance to guardians of eligible children who arein foster care but are not able to be adopted and who are not able to return home. Notification has been given to the United States Department of Health and Human Services that the demonstration project will end effective September 1, 2010. A subsidized guardianship agreement authorized under this chapter will remain in effect until the agreement is terminated under the terms of this chapter. ITEM 2. Adopt the following new definition of “Relative” in rule 441—204.1(234): "Relative" means, for this chapter only, a person to whom a child is related by blood, marriage, or adoption, or a person who has a significant, committed, positive relationship with the child. ITEM 3. Amend subrule 204.2(1) as follows: 204.2(1) General conditions of eligibility. The guardian named in a permanency order under Iowa Code section 232.104(2)“d”(1) or Iowa Code chapter 633 for a child who was previously in the custody of the department is eligible for subsidy when all of the following conditions exist: a. The child has a documented permanency goal of: (1) Long-term foster care; (2) (1) Guardianship; or (3) (2) Another planned permanent living arrangement. b. The child has been in a licensed foster care placement and has lived in foster care for at least 6 of the last 12 months. c. b. The child is either: (1) 14 years of age or older and consents to the guardianship; or (2) 12 years of age or older and guardianship has been determined to be in the child’s best interest; or (3) (2) UnderNo younger than 12 years of age and part of a sibling group with a child aged 1214 or older. d. c. The child has lived in continuous placementfoster family care with the prospective guardian for the six months before initiation of the guardianship subsidy. e. d. Theprospective guardian is a personlicensed relative foster parent who has a significant relationship with the child and demonstrates a willingness to make a long-term commitment to the child’s care. (1) The guardian mayshall be a relative or nonrelative,as defined in this chapter. (2) Placement with that guardian must be in the best interest of the child. The best-interest determination must be documented in the case file. e. A child 12 years of age or older and part of a sibling group with a child 14 years of age or older may be eligible for subsidy if all criteria are met. The following conditions for the younger sibling shall also be met: (1) The sibling is placed as a foster child in the same prospective guardian home. (2) The guardian and the department agree it is appropriate for guardianship to be granted for the sibling. f. The child has been randomly selected to participate in the waiver demonstration project. ITEM 4. Amend subrule 204.2(4) as follows: 204.2(4) Other services. Rescinded IAB 10/11/06, effective 11/1/06.Other services available to meet the needs of the child that are free of charge, such as federal, state, and local governmental programs, or private assistance programs, shall be explored and used prior to the expenditure of subsidized guardianship funds. ITEM 5. Amend rule 441—204.3(234) as follows:441—204.3(234) Application. Applications for the subsidized guardianship program shall not be accepted after August 31, 2010may be made at any county office of the department. 204.3(1) Application forms. Application for a subsidized guardianship shall be made on the approved department form. 204.3(2) Eligibility determination. The determination of whether a child meets the eligibility requirements is made by the department. The proposed guardian shall be notified in writing of the decision of the department regarding the child’s eligibility for the program and the amount of subsidy to be provided. 204.3(3) Effective date. The effective date of the guardianship subsidy payment shall be the date the guardianship order is signed if all other conditions of eligibility are met. 204.3(4) Redetermination. The department worker shall review the child’s eligibility, the needs of the child and the child’s unearned income every 12 months. Reviews may be done more often if needed due to the child’s need for special services, revision of the subsidy amount because of the child’s age, or a request for review by the guardian. 204.3(5) Determination of eligibility after age 18. The department shall review the subsidy agreement when the child reaches the age of 17½ to determine whether the child is eligible to receive subsidy to the age of 21 due to the child’s physical, intellectual, or mental health disability. a. A disability shall be diagnosed by a physician, a qualified mental health professional or a qualified intellectual disability professional. b. The diagnosed disability shall be current within one year prior to the child’s eighteenth birthday. c. Documentation of the child’s diagnosed disability shall be provided by the child’s parents to the department to make the determination of continued eligibility to the age of 21. ITEM 6. Amend rule 441—204.4(234) as follows:441—204.4(234) Negotiation of amount of subsidy. 204.4(1) Subsidy agreement. The amount of subsidy shall be negotiated between the department and the guardian, and shall be based upon the needs of the child, and the circumstances of the family. Each time negotiations are completed, the Guardianship Subsidy Agreement, Form 470-3631, shall be completed and signed by the guardian and the department worker. 204.4(2) Amount of subsidy. The department shall enter into the agreement based upon available funds. Each time negotiations are completed, the department worker andthe guardian shall complete Form 470-3631,and sign a new Guardianship Subsidy Agreement. a. The guardianship subsidy shall be based on a flat daily foster care rate adjusted according to the needs of the child and the circumstances of the family.The maximum monthly maintenance payment for a child in subsidized guardianship shall be made pursuant to the foster family care maintenance rates according to the age and special needs of the child as found in 441—subrule 156.6(1) and 441—paragraphs 156.6(4)“b” and “f.” (1) The rate for the guardianship subsidy shall not exceed the state’s current daily basic foster care rate plus any daily level 1 or 2 special needs allowance or sibling allowance for which the child is eligible, as found atin 441—subrule 156.6(1) and 441—paragraphs 156.6(4)“b” and “f.” (2) Rescinded IAB 1/3/07, effective 1/1/07. b. If thesubsidized guardianship payment is less than the maximum amount allowed, the guardian may request an increase if thethere is a substantial change in the child’s or family’s needs and circumstances requirethat requires additional resources. c. Guardianship payments shall continue if the guardian dies or becomes incapacitated and has named a successor guardian in the Guardianship Subsidy Agreement or in any amendments to the agreement. 204.4(3) Placement outside of home. If a child needs to be placed out of the guardian’s home and the plan is for the child to return to the guardian within six months, a partial subsidy amount may be negotiated. 204.4(4) Nonrecurring expenses. The nonrecurring expenses necessary to finalize a guardianship shall be limited to the amount found in 441—subparagraph 201.6(1)“a”(7)not exceed $2,000. 204.4(5) Special services. a. Reimbursement to the guardian family or direct payment made to a provider is limited to the following services. (1) Outpatient individual or family services provided from a non-Medicaid provider only with approval from the service area manager or designee and when one of the following applies: 1. The services are not available for a Medicaid provider within a reasonable distance from the family. 2. The child and the family were receiving therapy or counseling from a non-Medicaid provider and it would not be in the child’s best interest to disrupt the services. 3. Available Medicaid providers experienced in working with foster, adopted, or blended families. (2) Travel-related expenses including transportation, meals and lodging not covered by Medicaid for visitation or family therapy when the child is receiving Medicaid-paid services out of the home. (3) Supplies and equipment as required by the child’s special needs and unavailable through other resources. (4) Funeral benefits at the amount allowed for a foster child in accordance with rule 441—156.8(234). b. Any single special service and any special service delivered over a 12-month period costing $500 or more shall have prior approval from the central office program manager prior to expending program funds. c. For all Medicaid-covered services, the department shall reimburse at the same rate and duration as Medicaid as set forth in rule 441—79.1(249A). ITEM 7. Amend rule 441—204.6(234) as follows:441—204.6(234) Termination of subsidy. A guardianship subsidy agreement negotiated based on an application signed on or before August 31, 2010, shall remain in effect until the subsidy is terminated based on one of the grounds listed in this rule. The subsidy shall terminate when any of the following occur, and a notice shall be sent which states the reason for the termination:- The child reaches the age of 18, unless the department determines that the subsidy may continue until the child reaches the age of 19 to facilitate the child’s completion of high school or a high school equivalency diploma.
- The child marries or enlists in the military.
- The child no longer lives with the guardian, except for placement outside the home as limited by subrule 204.4(3).
- The relationship ends due to the death of the child or the death of the guardian of the child (one in a single-parent family or both in a two-parent family).
- The terms of Form 470-3631,the Guardianship Subsidy Agreement, are concluded.
- The guardian requests that the guardianship payment cease.
- Due to incapacity, the guardian can no longer discharge the responsibilities necessary to protect and care for the child, and the guardianship has been or will be vacated.The department has determined the guardian is not providing financial support to the child.
- The guardian fails to abide by the terms of Form 470-3631,the Guardianship Subsidy Agreement.
- The guardianship case is terminated by court order.
- The department funds for subsidized guardianship are no longer available.
Proposing rule making related to food and consumer safety and providing an opportunity for public comment
The Inspections and Appeals Department hereby proposes to amend Chapter 30, “Food and Consumer Safety,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 10A.104, 137C.6, 137D.2 and 137F.2.State or Federal Law Implemented This rule making implements, in whole or in part, 2018 Iowa Acts, Senate File 2390.Purpose and Summary The proposed amendments implement changes made to Iowa Code chapter 137F resulting from the enactment of 2018 Iowa Acts, Senate File 2390. The legislation amended definitions to be consistent with the current Food Code issued by the U.S. Food and Drug Administration (FDA) and modified fees and penalties. Prior to submission of this Notice, the Department distributed for comment a draft of these proposed amendments to industry associations, local contracting health departments and food safety educators. No comments were received. Fiscal Impact The Legislative Services Agency, Fiscal Services Division, estimated an increase in revenue to the General Fund of approximately $1.3 million annually due to the fee increases approved in Senate File 2390 (Fiscal Note, April 26, 2018). 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 October 16, 2018. Comments should be directed to: David Werning Iowa Department of Inspections and Appeals Lucas State Office Building 321 East 12th Street Des Moines, Iowa 50319-0083 Email: david.werning@dia.iowa.govPublic Hearing No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:
ITEM 1. Adopt the following new definitions of “Event,” “Time/temperature control for safety” and “Vending machine location” in rule 481—30.2(10A,137C,137D,137F): "Event" means a significant occurrence or happening sponsored by a civic, business, governmental, community, or veterans organization and may include an athletic contest. For example, an event does not include a single store’s grand opening or sale. "Time/temperature control for safety" means a food that requires time and temperature controls for safety to limit pathogenic microorganism growth or toxin formation. "Vending machine location" means the room, enclosure, space, or area where one or more vending machines are installed and operated, including the storage areas on the premises that are used to service and maintain the vending machine. ITEM 2. Amend rule 481—30.2(10A,137C,137D,137F), definitions of “Farmers market potentially hazardous food license,” “Food establishment,” “Home bakery,” “Pushcart,” “Temporary food establishment” and “Vending machine,” as follows: "Farmers market potentially hazardoustime/temperature control for safety food license" means a license for a temporary food establishment that sells potentially hazardoustime/temperature control for safety foods at farmers markets. A separate annual farmers market potentially hazardoustime/temperature control for safety food license is required for each county in which the licensee sells potentially hazardoustime/temperature control for safety foods at farmers markets. The license is only applicable at farmers markets and is not required in order to sell wholesome, fresh shell eggs to consumer customers. "Food establishment" means an operation that stores, prepares, packages, serves, vends or otherwise provides food for human consumption and includes a food service operation in a salvage or distressed food operation, nutrition program operated pursuant to Title III-C of the Older Americans Act, school, summer camp, residential service substance abuse treatment facility, halfway house substance abuse treatment facility, correctional facility operated by the department of corrections,or the state training school and the Iowa juvenile home. Assisted living programs and adult day services are included in the definition of food establishment to the extent required by 481—subrules 69.28(6) and 70.28(6). “Food establishment” does not include the following:- A food processing plant.
- An establishment that offers only prepackaged foods that are not potentially hazardoustime/temperature control for safety foods.
- A produce stand or facility which sells only whole, uncut fresh fruits and vegetables.
- Premises which are a home bakery pursuant to Iowa Code chapter 137D.
- Premises which operate as a farmers marketif time/temperature control for safety foods are not sold or distributed from the premises.
- Premises of a residence in which food that is not potentially hazardousa time/temperature control for safety food is sold for consumption off the premises to a consumer customer, if the food is labeled to identify the name and address of the person preparing the food and the common name of the food. This exception does not apply to resale goods. This exception applies only to sales made from the residence in person and does not include mail order or Internet sales.
- A kitchen in a private home where food is prepared or stored for family consumption or in a bed and breakfast home.
- A private home or private party where a personal chef or hired cook is providing food preparation services to a client and the client’s nonpaying guests.
- A private home that receives catered or home-delivered food.
- Child day care facilities and other food establishments located in hospitals or health care facilities that serve only patients and staff and are subject to inspection by other state agencies or divisions of the department.
- Supply vehicles or vending machine locations.
- Establishments that are exclusively engaged in the processing of meat and poultry and are licensed pursuant to Iowa Code section 189A.3.
- The following premises, provided they are exclusively engaged in the sale of alcoholic beverages in a prepackaged form:
- Premises covered by a current Class “A” beer permit, including a Class “A” native beer permit as provided in Iowa Code chapter 123;
- Premises covered by a current Class “A” wine permit, including a Class “A” native wine permit as provided in Iowa Code chapter 123; and
- Premises of a manufacturer of distilled spirits under Iowa Code chapter 123.
- Premises or operations that are exclusively engaged in the processing of milk and milk products, are regulated by Iowa Code section 192.107, and have a milk or milk products permit issued by the department of agriculture and land stewardship.
- Premises or operations that are exclusively engaged in the production of shell eggs, are regulated by Iowa Code section 196.3, and have an egg handler’s license.
- The premises of a residence in which honey is stored; prepared; packaged, including by placement in a container; or labeled or from which honey is distributed.
- Premises regularly used by a nonprofit organization which engages in the serving of food on the premises as long as the nonprofit organization does not exceed the following restrictions:
- The nonprofit organization serves food no more than one day per calendar week and not on two or more consecutive days;
- Twice per year, the nonprofit organization may serve food to the public for up to three consecutive days; and
- The nonprofit organization may use the premises of another nonprofit organization not more than twice per year for one day to serve food.
- A food establishment;
- A food processing plant;
- A residence where food is prepared to be used or sold by churches, fraternal societies, or charitable, civic or nonprofit organizations;
- A residence that prepares or distributes honey;
- A residence that distributes shell eggs;
- A residence that prepares nonhazardous foodsthat are not time/temperature control for safety foods for sale at a farmers market; or
- A residence that prepares nonhazardous baked goodsthat are not time/temperature control for safety foods sold directly from the residence. This exception does not apply to resale goods. This exception applies only to sales made from the residence in person and does not include mail order or Internet sales.
Proposing rule making related to food establishment and food processing plant inspections and providing an opportunity for public comment
The Inspections and Appeals Department hereby proposes to amend Chapter 31, “Food Establishment and Food Processing Plant Inspections,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 10A.104 and 137F.2.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 10A.104 and 137F.2.Purpose and Summary The proposed amendments reflect 2018 Code of Federal Regulations updates and remove the expired transition compliance dates for section 2-102.12 of the 2013 FDA Model Food Code with supplement, which requires the employment of a certified food protection manager. Prior to filing this Notice, the Department distributed for comment a draft of these proposed amendments to industry associations, local contracting health departments and food safety educators. No comments were received.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 October 16, 2018. Comments should be directed to: David Werning Iowa Department of Inspections and Appeals Lucas State Office Building 321 East 12th Street Des Moines, Iowa 50319-0083 Email: david.werning@dia.iowa.govPublic Hearing No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members.Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:
ITEM 1. Amend subparagraph 31.1(2)"a" as follows: (4) Food establishments at which food is not prepared, where customers may purchase only commercially prepared nonpotentially hazardousnon-time/temperature control for safety foods that are dispensed either unpackaged or packaged andthat are intended for off-premises consumption. ITEM 2. Amend paragraph 31.1(2)"b" as follows: b. For all other establishments, the following time frames apply for employment of an individual who is a certified food protection manager: (1) For establishments newly licensed after January 1, 2014establishments, the requirement of section 2-102.12 must be met within six months of licensure. (2) Establishments in existence as of January 1, 2014, that do not receive a foodborne illness risk factor or public health intervention violation on or before July 1, 2017, shall meet the requirement of section 2-102.12 by January 1, 2018. (3) Establishments in existence as of January 1, 2014, that receive a foodborne illness risk factor or public health intervention violation on or before July 1, 2017, shall meet the requirement of section 2-102.12 within six months of the violation. (4) (2) If the individual meeting the requirement of section 2-102.12 leaves employment with an establishment required to meet section 2-102.12, the establishment shall meet the requirement of section 2-102.12 within six months. ITEM 3. Amend subrule 31.1(4) as follows: 31.1(4) Morel mushrooms. Section 3-201.16, paragraph (A), is amended by adding the following:“A food establishment or farmers market potentially hazardoustime/temperature control for safety food licensee may serve or sell morel mushrooms if procured from an individual who has completed a morel mushroom identification expert course. Every morel mushroom shall be identified and found to be safe by a certified morel mushroom identification expert whose competence has been verified and approved by the department through the expert’s successful completion of a morel mushroom identification expert course provided by either an accredited college or university or a mycological society. The certified morel mushroom identification expert shall personally inspect each mushroom and determine it to be a morel mushroom. A morel mushroom identification expert course shall be at least three hours in length. To maintain status as a morel mushroom identification expert, the individual shall have successfully completed a morel mushroom identification expert course described above within the past three years. A person who wishes to offer a morel mushroom identification expert course must submit the course curriculum to the department for review and approval. Food establishments or farmers market potentially hazardoustime/temperature control for safety food licensees offering morel mushrooms shall maintain the following information for a period of 90 days from the date the morel mushrooms were obtained:“1. The name, address, and telephone number of the morel mushroom identification expert;“2. A copy of the morel mushroom identification expert’s certificate of successful completion of the course, containing the date of completion; and“3. The quantity of morel mushrooms purchased and the date(s) purchased.“Furthermore, a consumer advisory shall inform consumers by brochures, deli case or menu advisories, label statements, table tents, placards, or other effective written means that wild mushrooms should be thoroughly cooked and may cause allergic reactions or other effects.” ITEM 4. Amend subrule 31.1(16) as follows: 31.1(16) Nonprofit exception for temporary events. Nonprofit organizations that are licensed as temporary food establishments may serve nonpotentially hazardousnon-time/temperature control for safety food from an unapproved source for the duration of the event. ITEM 5. Amend subrule 31.2(1) as follows: 31.2(1) Definitions. For the purposes of this rule, the following definitions shall apply. The definitions of “food,” “label,” “labeling,” and “dietary supplement” are as defined in 21 U.S.C. Section 321 (2012). ITEM 6. Amend subrule 31.2(2) as follows: 31.2(2) Prohibited acts. The prohibited acts identified in 21 U.S.C. Section 331(a) to (f), (k), and (v) (2012) shall also be prohibited acts in Iowa. ITEM 7. Amend subrule 31.2(9), introductory paragraph, as follows: 31.2(9) Adoption of Code of Federal Regulations. The following parts of the Code of Federal Regulations (April 1, 20172018) are adopted: ITEM 8. Amend paragraph 31.2(9)"v" as follows: v. 21 CFR Part 117, current good manufacturing practice and hazard analysis and risk-based preventive controls for human food, as followsshall apply, with the following exceptions: (1) As of October 1, 2017, subparts A, B and F of 21 CFR 117 shall be in effect for all food processing plants. (2) As of October 1, 2017, all other subparts of 21 CFR 117 shall be effective upon the effective date established by the federal government. (3) (1) As of October 1, 2018, qualifiedQualified facilities, as defined in 21 CFR 117, shall not include food processing plants manufacturing foods for interstate commerce orfor use as an ingredient to other foods. (2) Warehousing operations located on the premises of residences that store food for sale directly to a consumer customer or at a farmers market shall comply with subparts A, B, and F of 21 CFR 117. ITEM 9. Amend subrule 31.2(10) as follows: 31.2(10) Egg products processing plants. The department shall generally use the good manufacturing practices adopted in paragraph 31.2(9)“b,” unless such practices are inconsistent with standards set by the United States Department of Agriculture, Food Safety and Inspection Service, in 9 CFR Parts 590-592, January 1, 20152018. If the standards are inconsistent, the standards adopted in 9 CFR Parts 590-592, January 1, 20152018, apply. ITEM 10. Amend rule 481—31.5(137F), introductory paragraph, as follows:481—31.5(137F) Temporary food establishments and farmers market potentially hazardoustime/temperature control for safety food licensees. While the retail food code adopted in rule 481—31.1(137F) applies to temporary food establishments, the following subrules provide a simplified version of requirements for temporary food establishments. If the two rules are inconsistent, the standards in this rule apply. ITEM 11. Amend paragraph 31.5(1)"c" as follows: c. All employees, including volunteers, shall be under the direction of the person in charge. The person in charge shall ensure that the workers are effectively cleaning their hands, that potentially hazardoustime/temperature control for safety food is adequately cooked, held or cooled, and that all multiuse equipment or utensils are adequately washed, rinsed and sanitized. ITEM 12. Amend paragraph 31.5(1)"d" as follows: d. Employees and volunteers shall not work at a temporary food establishment or farmers market potentially hazardoustime/temperature control for safety food establishment if the employees and volunteers have open cuts, sores or communicable diseases. The person in charge shall take appropriate action to ensure that employees and volunteers who have a disease or medical condition transmissible by food are excluded from the food operation. ITEM 13. Amend paragraph 31.5(2)"b" as follows: b. Cold storage.Refrigeration units shall be provided to keep potentially hazardoustime/temperature control for safety foods at 41°F or below. The inspector may approve an effectively insulated, hard-sided container with sufficient coolant for storage of less hazardoustime/temperature control for safety food or the use of such a container at events of short duration if the container maintains the temperature at 41°F or below. ITEM 14. Amend paragraph 31.5(2)"c" as follows: c. Hot storage.Hot food storage units shall be used to keep potentially hazardoustime/temperature control for safety food at 135°F or above. Electrical equipment is required for hot holding, unless the use of propane stoves and grills capable of holding the temperature at 135°F or above is approved by the department. Sterno cans are allowed for hot holding if adequate temperatures can be maintained. Steam tables or other hot holding devices are not allowed to heat foods and are to be used only for hot holding after foods have been adequately cooked.ARC 4041CInsurance Division[191]Notice of Intended ActionProposing rule making related to fully insured multiple employer welfare arrangements and fully insured and self-insured association health plans and providing an opportunity for public comment
The Insurance Division hereby proposes to amend Chapter 77, “Multiple Employer Welfare Arrangements,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 505.8 and 507A.4; 2018 Iowa Acts, Senate File 2349; and U.S. Department of Labor, 83 FR 28912.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapter 507A; 2018 Iowa Acts, Senate File 2349; and U.S. Department of Labor, 83 FR 28912.Purpose and Summary The new rules proposed in this Notice of Intended Action serve two purposes, explained below; a third purpose of regulatory clarity is met by including in one chapter both the rules in this Notice together with the rules in ARC 4039C, IAB 9/26/18, on self-insured multiple employer welfare arrangements. The first purpose of the new rules is to comply with 2018 Iowa Acts, Senate File 2349, section 2, which requires the Insurance Commissioner to adopt rules to implement the legislation’s provisions. Senate File 2349 provides, among other things, that an entity that wants to act in Iowa as a multiple employer welfare arrangement (MEWA) must, in addition to meeting the other requirements of Iowa Code chapter 507A, meet certain “membership stability” requirements set forth by the Insurance Commissioner by rule. The new rules proposed in this Notice are intended to set forth such membership requirements for entities wishing to establish a fully insured MEWA, by ascertaining that there is a firm foundation for the stability of the underlying organization. Such stability is critical to ensure consumer protection. In addition, the Division has promulgated concurrently an Adopted and Filed Emergency After Notice rule making (ARC 4039C) which rescinds the current Chapter 77 and replaces it with a new Chapter 77 whose rules set forth such membership requirements for entities wishing to establish a self-insured MEWA. During the comment period for the Notice of Intended Action (ARC 3894C, IAB 7/18/18) in which new Chapter 77 was proposed, the Insurance Division received comments from stakeholders who asked about the extent of the application of those new rules to fully insured MEWAs. Accordingly, by making changes to the Noticed rules of ARC 3894C and incorporating those changes in the adopted rules in ARC 4039C, the Division clarified that those rules shall apply only to self-insured MEWAs. In that rule making, together with this rule making (in which the Division clarifies that some of these rules specifically apply only to fully insured MEWAs), the Division addresses the confusion and clarifies the requirements for both types of MEWAs. The second purpose intended by these proposed new rules is to address the U.S. Department of Labor’s rule 83 FR 28912 (DOL rule), issued on June 19, 2018, which establishes criteria for the creation and administration of association health plans (AHPs) and permits the establishment of AHPs in a staggered implementation timeline beginning September 1, 2018. The new DOL rule establishes some criteria under the Employee Retirement Income Security Act (ERISA) (Section 3(5)) that are in addition to criteria already there. The new criteria permit a determination whereby employers may join together in a group or association of employers and whereby, if the criteria are met, the group or association of employees will be permitted to be treated as if it were an employer sponsor of a single multiple employer “employee welfare benefit plan” and “group health plan,” as those terms are defined in Title I of ERISA. The DOL rule establishes a more flexible “commonality of interest” test for the employer members to support the establishment and maintenance of AHPs under ERISA. The DOL rule facilitates the adoption and administration of AHPs and expands access to affordable health coverage. In anticipation of this rule, the Iowa Legislature granted the Insurance Commissioner rule-making authority, including emergency rule-making authority, over such AHPs in 2018 Iowa Acts, Senate File 2349, sections 5 and 7. The rules proposed in this rule making provide a framework for the establishment of both fully insured and self-insured AHPs, as contemplated in the DOL rule. The rule makings of ARC 4039C and ARC 4040C were adopted emergency to be made effective September 12, 2018. If the Division determines through the rule-making process of this Notice that changes need to be made to the emergency-adopted rules of ARC 4040C, the Division intends that the rule-making process of this Notice shall incorporate those changes and shall be effective December 26, 2018.Fiscal Impact This rule making may have some fiscal impact to the State of Iowa, in that an increase in the number of these plans being sold would increase the amount of premium tax funds collected by the State from insurance companies providing coverage to fully insured MEWAs and fully insured AHPs. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers The Division’s general waiver provisions of 191—Chapter 4 apply to these rules. Public Comment Any interested person may make written suggestions or comments on these proposed amendments on or before 4:30 p.m. on October 30, 2018. Comments should be directed to: Ann Outka Insurance Division Two Ruan Center 601 Locust Street, Fourth Floor Des Moines, Iowa 50309 Fax: 515.281.3059 Email: ann.outka@iid.iowa.govPublic Hearing Also, there will be a public hearing, at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the rule making. October 30, 2018 11 a.m. to 12 noon Division Offices, Fourth Floor Two Ruan Center 601 Locust Street Des Moines, Iowa Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Division 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).Emergency Rule Making Adopted by Reference This proposed rule making is also published herein as an Adopted and Filed Emergency rule making (see ARC 4040C). The purpose of this Notice of Intended Action is to solicit public comment on that emergency rule making, whose subject matter is hereby adopted by reference.
ARC 4028CIowa Finance Authority[265]Notice of Intended ActionProposing rule making related to military service member home ownership assistance program and providing an opportunity for public comment
The Iowa Finance Authority hereby proposes to amend Chapter 27, “Military Service Member Home Ownership Assistance Program,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 16.5.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 16.54 and 2018 Iowa Acts, House File 2480, section 2.Purpose and Summary This proposed rule making amends Chapter 27 by adding the definition of “manufactured home” and amending the definition of “qualified home” to exclude requirements that the manufactured home be attached to a permanent foundation and be taxed as real estate.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Authority for a waiver of the discretionary provisions, if any. 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 Authority no later than 4:30 p.m. on October 16, 2018. Comments should be directed to: Mark Thompson Iowa Finance Authority 2015 Grand Avenue Des Moines, Iowa 50312 Phone: 515.725.4937 Email: mark.thompson@iowa.govPublic Hearing No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:
ITEM 1. Adopt the following new definition of “Manufactured home” in rule 265—27.2(16): "Manufactured home" means the same as defined in Iowa Code section 435.1. ITEM 2. Amend rule 265—27.2(16), definition of “Qualified home,” as follows: "Qualified home" means a home located in the state of Iowa that an eligible service member purchases, occupies, and uses as the service member’s primary residence. The home must fall into one of the following categories:- Single-family residence, including “stick-built” homes, modular homes, or manufactured homes, provided the home is attached to a permanent foundation and is taxed as real estate;
- Condominium;
- Townhome;
- A property containing two to four residential units, where one unit is to be occupied by the eligible service member as the service member’s primary residence.
Proposing rule making related to suspension and reinstatement of state funds and providing an opportunity for public comment
The Department of Management hereby proposes to adopt Chapter 13, “Suspension and Reinstatement of State Funds,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 8.6 and 2018 Iowa Acts, Senate File 481.State or Federal Law Implemented This rule making implements, in whole or in part, 2018 Iowa Acts, Senate File 481.Purpose and Summary The proposed rule making will establish procedures and guidelines to deny state funds to a local entity intentionally violating the provisions of 2018 Iowa Acts, Senate File 481, [Iowa Code chapter 27A] and to reinstate eligibility to receive state funds when a local entity comes into compliance with Senate File 481. These rules establish the process by which the Department of Management receives a final judicial determination that the local entity is out of compliance with Senate File 481 and is ineligible to receive state funds and state funds are denied. These rules also establish the process by which the Department of Management receives the declaratory judgment that the local entity is in full compliance with Senate File 481 and is eligible to receive state funds and state funds are reinstated.Fiscal Impact At this time it is not possible to estimate the total fiscal impact of 2018 Iowa Acts, Senate File 481, sections 9 and 10, and Chapter 13. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Waivers may be requested of the Department for any discretionary part of this rule making pursuant to Iowa Code chapter 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 October 16, 2018. Comments should be directed to: Linda Leto Iowa Department of Management State Capitol, Room 13 1007 East Grand Avenue Des Moines, Iowa 50319 Phone: 515.281.3322 Email: linda.leto@iowa.govPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: October 24, 2018 9 to 11 a.m. State Capitol, Room 116 1007 East Grand Avenue Des Moines, Iowa Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making action is proposed:
ITEM 1. Adopt the following new 541—Chapter 13: CHAPTER 13SUSPENSION AND REINSTATEMENT OF STATE FUNDS541—13.1(87GA,SF481) Definitions. For purposes of this chapter: "City" means a municipal corporation but does not include a county, township, school district, or any special-purpose district or authority. "County" means an administrative subdivision in the state governed by a locally elected board of supervisors and may be comprised of subdivisions including cities, townships, school districts, or any special-purpose district or authority. "Declaratory judgment" means a judgment issued by a district court declaring a local entity is in full compliance with 2018 Iowa Acts, Senate File 481. "Department" means the Iowa department of management pursuant to Iowa Code chapter 8. "Final judicial determination" means a district court ruling on a civil action brought by the state attorney general’s office finding a local entity to have violated the provisions of 2018 Iowa Acts, Senate File 481. "Fiscal year" means the time period beginning on July 1 and ending the following June 30 as defined in Iowa Code section 8.36. "Governing body" means the mayor and city council of a city or the board of supervisors of a county. "Local entity" means the governing body of a city or county and includes an officer or employee of a local entity or a division, department, or other body that is part of a local entity, including but not limited to a sheriff, police department, city attorney, or county attorney. “Local entity” does include local city and county boards and commissions in which membership in the board or commission is the result of an appointment by the city council or the county board of supervisors. “Local entity” does not include local city and county boards and commissions whose membership is determined by election or is specifically set forth by the Iowa Code. “Local entity” does not include multijurisdictional boards and commissions in which a city or county is one of multiple local government members. "State agencies" means any boards, commissions, or departments, as defined by Iowa Code section 7E.4, or other administrative offices or units of the executive branch of the state. "State funds" means those funds held by the state that originate from revenues, fees or receipts collected by the state and distributed to local entities. Funds held by the state that are not defined as state funds include:- Federal funds (unless provided to the state and awarded as a grant by the state).
- Funds paid out per gubernatorial or presidential emergency proclamation.
- Any revenue collected and administered by the state on behalf of a local entity due to a locally imposed tax, fee or fine.
- Any state funds for the provision of wearable body protective gear used for law enforcement purposes.
- Payment for public protection, utilities, or goods and services.
- Payment of settlements.
- Setoffs as defined by Iowa Code section 8A.504.
Proposing rule making related to pharmacy technicians and electronic transfer of prescriptions and providing an opportunity for public comment
The Pharmacy Board hereby proposes to amend Chapter 3, “Pharmacy Technicians,” and Chapter 6, “General Pharmacy Practice,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 147.76, 155A.6A, 155A.33 and 155A.34.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 155A.6A and 155A.33 and 2018 Iowa Acts, Senate File 2322.Purpose and Summary The proposed amendments allow a certified pharmacy technician to transfer a prescription for a noncontrolled substance to another pharmacy or receive a prescription transfer for a noncontrolled substance from another pharmacy, allow a certified pharmacy technician to dispense a verified prescription which has been deemed to not require counseling to a patient while the pharmacist is on a break, and simplify rule language relating to the electronic transfer of prescriptions in anticipation of enhanced technologies in pharmacy software system capabilities. 2018 Iowa Acts, Senate File 2322, section 6, amended the Iowa Code during the 2018 Legislative Session to provide for the transfer of prescriptions between licensed pharmacies in accordance with Board rules. Electronic systems, technician training, and pharmacist oversight provide sufficient safeguards to ensure certified technicians are capable of transmitting such prescription information. Pharmacists often find it difficult to take a rest or lunch break due, in part, to technicians being prohibited from dispensing a prescription when the pharmacist is away from the immediate dispensing area. These proposed amendments would allow a certified pharmacy technician, at the discretion of the on-duty supervising pharmacist and pursuant to policies and procedures, to dispense a verified prescription which has been deemed to not require counseling to a patient when the pharmacist is absent from the pharmacy department on a break of limited duration.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 657—Chapter 34. Public Comment Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Board no later than 4:30 p.m. on October 16, 2018. Comments should be directed to: Sue Mears Board of Pharmacy 400 S.W. 8th Street, Suite E Des Moines, Iowa 50309 Email: sue.mears@iowa.govPublic Hearing No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:
ITEM 1. Amend rule 657—3.21(155A) as follows:657—3.21(155A) Delegation of functions. 3.21(1) Technical dispensing functions. A pharmacist may delegate technical dispensing functions to an appropriately trained and registered pharmacy technician, but only if the pharmacist is on site and available to supervise the pharmacy technician when delegated functions are performed, except as provided in 657—subrule 6.7(2)rule 657—6.7(124,155A) or 657—subrule 7.6(2)657—7.6(155A), as appropriate, or as provided for telepharmacy in 657—Chapter 9657—Chapter 13. Except as provided for an approved tech-check-tech program pursuant to 657—Chapter 40, the pharmacist shall provide and document the final verification for the accuracy, validity, completeness, and appropriateness of the patient’s prescription or medication order prior to the delivery of the medication to the patient or the patient’s representative. A pharmacy technician shall not delegate technical functions to a pharmacy support person. 3.21(2) Nontechnical functions. A pharmacist may delegate nontechnical functions to a pharmacy technician or a pharmacy support person only if the pharmacist is present to supervise the pharmacy technician or pharmacy support person when delegated nontechnical functions are performed, except as provided in 657—subrule 6.7(2)rule 657—6.7(124,155A) or 657—subrule 7.6(2)657—7.6(155A), as appropriate, or as provided for telepharmacy in 657—Chapter 9657—Chapter 13. ITEM 2. Adopt the following new paragraphs 3.22(1)"k" and 3.22(1)"l": k. Transfer via oral, facsimile, or electronic means the original prescription drug order information and prescription refill information of a prescription for a noncontrolled substance to a pharmacy as requested by a patient or patient’s caregiver pursuant to rule 657—6.9(124,155A). A technician shall not transfer by any means the original prescription drug order information or prescription refill information for a controlled substance. l. Receive via oral, facsimile, or electronic means the transfer of original prescription drug order information and prescription refill information of a prescription for a noncontrolled substance from a pharmacy as requested by a patient or patient’s caregiver pursuant to rule 657—6.9(124,155A). A technician shall not receive via transfer by any means the original prescription drug order information or prescription refill information of a prescription for a controlled substance. ITEM 3. Amend rule 657—3.23(155A) as follows:657—3.23(155A) Tasks a pharmacy technician shall not perform. A pharmacy technician shall not be authorized to perform any of the following judgmental tasks:- Except for a certified pharmacy technician participating in an approved tech-check-tech program pursuant to 657—Chapter 40, provide the final verification for the accuracy, validity, completeness, or appropriateness of a filled prescription or medication order;
- Conduct prospective drug use review or evaluate a patient’s medication record for purposes identified in rule 657—8.21(155A);
- Provide patient counseling, consultation, or patient-specific drug information, tender an offer of patient counseling on behalf of a pharmacist, or accept a refusal of patient counseling from a patient or patient’s agent;
- Make decisions that require a pharmacist’s professional judgment, such as interpreting prescription drug orders or applying information;
- Transfer a prescription drug orderfor a controlled substance to another pharmacy or receive the transfer of a prescription drug orderfor a controlled substance from another pharmacy;
- Delegate technical functions to a pharmacy support person.
Proposing rule making related to pharmacy operations and providing an opportunity for public comment
The Pharmacy Board hereby proposes to amend Chapter 5, “Pharmacy Support Persons,” Chapter 7, “Hospital Pharmacy Practice,” and Chapter 8, “Universal Practice Standards,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 124.301 and 147.76.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 124.301, 124.303, 124.306, 124.308, 126.10, 126.11, 155A.6A to 155A.7, 155A.13, 155A.15, 155A.27, 155A.28, 155A.31 to 155A.36, 155A.38, 155A.41, 155A.43 and 155A.44.Purpose and Summary Pursuant to Iowa Code section 17A.7(2), the Board has conducted an overall review of Chapters 5 and 7 of its administrative rules. The proposed amendments update requirements for references to be consistent with recent Board action for other practice settings, provide clarification where needed, reorganize where appropriate, remove the requirement that the hospital’s approved drug formulary be included in the pharmacy’s policies and procedures, add documentation requirements related to the pharmacy’s accountability of stock supplies of controlled substances previously required in Chapter 10, update language relating to outpatient automated dispensing systems to use a general term rather than a specific industry brand product, clarify that outpatient automated dispensing systems do not qualify for a unique pharmacy license, and update storage requirements for records to be consistent with recent Board action for other practice settings.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 657—Chapter 34. Public Comment Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Board no later than 4:30 p.m. on October 16, 2018. Comments should be directed to: Sue Mears Board of Pharmacy 400 S.W. 8th Street, Suite E Des Moines, Iowa 50309 Email: sue.mears@iowa.govPublic Hearing No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:
ITEM 1. Amend rule 657—5.22(155A) as follows:657—5.22(155A) Delegation of nontechnical functions. A pharmacist may delegate nontechnical functions to an appropriately trained and registered pharmacy support person, but only if the pharmacist is present to supervise the pharmacy support person when delegated functions are performed, except as provided in 657—subrule 6.7(2)rule 657—6.7(124,155A) or 657—subrule 7.6(2)657—7.6(155A), as appropriate. ITEM 2. Amend rule 657—7.3(155A) as follows:657—7.3(155A) Reference library. References may be printed or computer-accessed. Apharmacy shall maintain a reference libraryshall be maintained whichincludes, at a minimum, one current reference from each of the following categories, including access to current periodic updatesis either printed or computer-accessed and which adequately meets the needs of the services provided and patients served.Examples of such references include:- A reference including all pertinent Iowa laws, rules, and regulations that impact the pharmacy’s practice.
- A patient information reference that includes or provides patient information in compliance with rule 657—6.14(155A).
- A reference on drug interactions.
- A generaldrug information reference.
- A drug equivalency reference.
- An injectable-drug compatibility reference.
- A drug identification reference to enable identification of drugs brought into the facility by patients.
- The readily accessible telephone number of a poison control center that serves the area.
- Additional references as may be necessary for the pharmacist to adequately meet the needs of the patients servedrelating to specific patient populations served, such as pediatrics or geriatrics, or disease states treated, such as oncology or infectious disease. For example, the treatment of pediatric patients and oncology patients would require additional references unique to those specialties.
- Name and address of the hospital;
- Date dispensed;
- Name of prescriber;
- Name of patient;
- Directions for use;
- Name, quantity, and strength of drug.
Proposing rule making related to organization and operation and providing an opportunity for public comment
The Professional Licensing and Regulation Bureau hereby proposes to amend Chapter 1, “Organization and Operation,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 546.3 and 546.10.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapters 542, 542B, 543B, 544A, 544B and 544C and section 546.10.Purpose and Summary The Professional Licensing and Regulation Bureau of the Banking Division coordinates the functions of six professional licensing boards. Chapter 1 describes the organization of the Bureau. The proposed amendments update the chapter to reflect legislative changes to the Bureau and its boards. The proposed amendment relating to the composition of the Engineering and Land Surveying Examining Board reflects a change made in 2018 Iowa Acts, House File 2382. The proposed amendment relating to the Architectural Examining Board changes the terminology from “registered” to “licensed” as a result of 2017 Iowa Acts, Senate File 408. The change of title from “registered” to “professional” relating to the membership of the Landscape Architectural Examining Board reflects the terminology used in Iowa Code section 544B.3. Striking the subrule providing for the Real Estate Appraiser Examining Board is the result of 2016 Iowa Acts, House File 2436. The proposed amendment in Item 4 allows for staff to remove abandoned applications from the licensing database.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 Bureau for a waiver of the discretionary provisions, if any, pursuant to 193—Chapter 5. 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 Bureau no later than 4:30 p.m. on October 16, 2018. Comments should be directed to: Lori SchraderBachar Professional Licensing and Regulation Bureau 200 East Grand Avenue, Suite 350 Des Moines, Iowa 50309 Phone: 515.725.9030 Email: lori.schraderbachar@iowa.govPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: October 16, 2018 9 a.m.Bureau Offices, Suite 350 200 East Grand Avenue Des Moines, Iowa Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Bureau 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 193—1.4(546) as follows:193—1.4(546) Purpose of the bureau. The bureau exists to coordinate the administrative support for the following sevensix professional licensing boards: 1.4(1) The engineering and land surveying examining board is a seven-member board appointed by the governor and confirmed by the senate. It is composed of fourthree professional engineers, onetwo land surveyorsurveyors, and two public members. The board administers Iowa Code chapter 542B, Professional Engineers and Land Surveyors, and board rules published under agency number [193C] in the Iowa Administrative Code. 1.4(2) The accountancy examining board is an eight-member board appointed by the governor and confirmed by the senate. The board is composed of five certified public accountants, two public members, and one licensed public accountant. The board administers Iowa Code chapter 542, Public Accountants, and board rules published under agency number [193A] in the Iowa Administrative Code. 1.4(3) The real estate commission is a seven-member commission appointed by the governor and confirmed by the senate. It is composed of five members, one of whom must be a salesperson, licensed under Iowa Code chapter 543B and two public members. The commission administers Iowa Code chapters 543B, Real Estate Brokers and Salespersons; 543C, Sales of Subdivided Land Outside of Iowa; 557A, Time-Shares; and commission rules published under agency number [193E] in the Iowa Administrative Code. 1.4(4) The architectural examining board is a seven-member board appointed by the governor and confirmed by the senate. It is composed of five registeredlicensed architects and two public members. The board administers Iowa Code chapter 544A, RegisteredLicensed Architects, and board rules published under agency number [193B] in the Iowa Administrative Code. 1.4(5) The landscape architectural examining board is a seven-member board appointed by the governor and confirmed by the senate. It is composed of five registeredprofessional landscape architects and two public members. The board administers Iowa Code chapter 544B, Landscape Architects, and board rules published under agency number [193D] in the Iowa Administrative Code. 1.4(6) The real estate appraiser examining board is a seven-member board appointed by the governor and confirmed by the senate. It is composed of five certified real estate appraisers and two public members. The board administers Iowa Code chapter 543D, Real Estate Appraisals and Appraisers, and board rules published under agency number [193F] in the Iowa Administrative Code. 1.(7) 1.4(6) The interior design examining board is a seven-member board appointed by the governor and confirmed by the senate. It is composed of five registered interior designers and two public members. The board administers Iowa Code chapter 544C, Registered Interior Designers, and board rules published under agency number [193G] in the Iowa Administrative Code. ITEM 2. Amend rule 193—1.9(272C,542,542B,543B,543D,544A,544B,544C), parenthetical implementation statute, as follows:193—1.9(272C,542,542B,543B,543D,544A,544B,544C) Applicant contact information. ITEM 3. Amend rule 193—1.10(272C,542,542B,543B,543D,544A,544B,544C), parenthetical implementation statute, as follows:193—1.10(272C,542,542B,543B,543D,544A,544B,544C) Newsletter. ITEM 4. Adopt the following new rule 193—1.11(272C,542,542B,543B,544A,544B,544C):193—1.11(272C,542,542B,543B,544A,544B,544C) Applications. Unless otherwise regulated by an individual board’s rules, abandoned applications shall be deemed withdrawn. An application is abandoned if the applicant has not accessed or modified the application through the bureau’s electronic licensing database within the preceding six months.ARC 4035CProfessional Licensure Division[645]Notice of Intended ActionProposing rule making related to licensure by endorsement and providing an opportunity for public comment
The Board of Speech Pathology and Audiology hereby proposes to amend Chapter 300, “Licensure of Speech Pathologists and Audiologists,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code chapters 154F and 272C and section 147.76.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapters 147, 154F and 272C.Purpose and Summary Applicants for licensure by endorsement are not able to provide examination scores from the testing center when it has been more than ten years since the examination was taken because the examination company, Praxis, purges these scores after a decade has passed. The Board has granted waivers for applicants and, in review of rule 645—300.9(147), has found the rule unduly restrictive. The proposed amendment allows applicants for licensure by endorsement to satisfy the requirement of proof of passing the Board-designated examination by providing evidence of a current clinical competence certification through the American Speech-Language-Hearing Association (ASHA), which confirms the completion of clinical hours and passing of the Praxis examination.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. 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 Board no later than 4:30 p.m. on October 16, 2018. Comments should be directed to: Venus Vendoures Walsh Professional Licensure Division Department of Public Health Lucas State Office Building 321 East 12th Street Des Moines, Iowa 50319 Phone: 515.242.6529 Email: venus.vendoures-walsh@idph.iowa.govPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: October 16, 2018 8:30 to 9 a.m. Fifth Floor Board Conference Room 526 Lucas State Office Building Des Moines, Iowa Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the 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 action is proposed:
ITEM 1. Amend rule 645—300.9(147) as follows:645—300.9(147) Licensure by endorsement. 300.9(1) An applicantThe board may issue a license by endorsement to any applicant from the District of Columbia or another state, territory, province or foreign country who has been a licensed speech pathologist or audiologist under the laws of another jurisdiction shall file an application for licensure by endorsement with the board office. The board may receive by endorsement any applicant from the District of Columbia or another state, territory, province or foreign country who:- Submits to the board a completed application;
- Pays the licensure fee;
- Shows evidence of licensure requirements that are similar to those required in Iowa;
- Shows evidence of a current ASHA certificate or at least nine months of full-time clinical experience or its equivalent;
- Shows evidence that the Praxis Examination scores have been sent directly from the examination service to the board;
- Provides official copies of the academic transcripts; and
- Provides verification of license(s) from every jurisdiction in which the applicant has been licensed, sent directly from the jurisdiction(s) to the board office. Web-based verification may be substituted for verification direct from the jurisdiction’s board office if the verification provides:
- Licensee’s name;
- Date of initial licensure;
- Current licensure status; and
- Any disciplinary action taken against the license.
Proposing rule making related to code of ethics and providing an opportunity for public comment
The Board of Speech Pathology and Audiology hereby proposes to amend Chapter 304, “Discipline for Speech Pathologists and Audiologists,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code chapter 272C and Iowa Code section 147.76.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapters 147, 154F and 272C.Purpose and Summary This proposed amendment updates the chapter to incorporate language used in the American Academy of Audiology (AAA) and the American Speech-Language-Hearing Association (ASHA) codes of ethics. This amendment includes a reference to the reporting requirements in Iowa Code section 135.131 and 641—Chapter 3 as the requirements relate to newborn and infant care screening evaluations.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. 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 Board no later than 4:30 p.m. on October 16, 2018. Comments should be directed to: Venus Vendoures Walsh Professional Licensure Division Iowa Department of Public Health Lucas State Office Building 321 East 12th Street Des Moines, Iowa 50319 Phone: 515.242.6529 Email: venus.vendoures-walsh@idph.iowa.govPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: October 16, 2018 8:30 to 9 a.m. Fifth Floor Board Conference Room 526 Lucas State Office Building Des Moines, Iowa Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the 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 action is proposed:
ITEM 1. Amend subrule 304.2(31) as follows: 304.2(31) Violation of the following code of ethics: a. Licensees shall provide ethical, professional services, conduct research with honesty and compassion, and respect the dignity, worth and rights of those served. a. b. Claims of expected clinical results shall be based upon sound evidence and shall accurately convey the probability and degree of expected improvement. b. c. Records shall be adequately maintained for the period of time required by applicable state and federal laws. c. d. Persons served professionally or the files of such persons will be used for teaching or research purposes only after obtaining informed consent from those persons or from the legal guardians of such persons. d. e. Information of a personal or professional nature obtained from persons served professionally will be released only to individuals authorized by the persons receiving professional service or to those individuals to whom release is required by law. f. Licensees who engage in research shall comply with all institutional, state, and federal regulations that address any aspects of research, including those that involve human participants and animals, such as those promulgated in the current Responsible Conduct of Research by the U.S. Office of Research Integrity. g. Individuals in administrative or supervisory roles shall not require or permit their professional staff to provide services or conduct clinical activities that compromise the staff members’ independent and objective professional judgment. e. h. Relationships between professionals and between a professional and a client shall be based on high personal regard and mutual respect without concern for race, religious preference, sex, or age, ethnicity, gender identity/gender expression, sexual orientation, national origin, disability, culture, language or dialect. f. i. Referral of clients for additional services or evaluation and recommendation of sources for purchasing appliances shall be without any consideration for financial or material gain to the licensee making the referral or recommendation for purchase. g. j. Licensees who dispense products to persons served professionally shall provide clients with freedom of choice for the source of services and products. h. k. Failure to comply with current Food and Drug Administration regulations 21 CFR §801.420, “Hearing aid devices; professional and patient labeling,” and 21 CFR §801.421, “Hearing aid devices; conditions for sale.” l. Licensees shall comply with universal newborn and infant hearing screening requirements within Iowa Code section 135.131 and 641—Chapter 3.ARC 4034CPublic Health Department[641]Notice of Intended ActionProposing rule making related to concussion and brain injury and providing an opportunity for public comment
The Public Health Department hereby proposes to adopt Chapter 54, “Concussion and Brain Injury Return-to-Play Protocol,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in 2018 Iowa Acts, House File 2442.State or Federal Law Implemented This rule making implements, in whole or in part, 2018 Iowa Acts, House File 2442.Purpose and Summary The proposed rules describe the return-to-play protocol for returning a student to participation in any extracurricular interscholastic activity after the student shows signs, symptoms, or behaviors consistent with a concussion or brain injury. The return-to-play protocol is based on peer-reviewed scientific evidence consistent with the guidelines of the Centers for Disease Control and Prevention of the United States Department of Health and Human Services. The Department worked in cooperation with the Iowa High School Athletic Association and the Iowa Girls High School Athletic Union in the drafting of the proposed rules. 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 the Department’s variance and waiver provisions contained in 641—Chapter 178. 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 State Board of Health no later than 4:30 p.m. on October 16, 2018. Comments should be directed to: Maggie Ferguson Department of Public Health Lucas State Office Building 321 East 12th Street Des Moines, Iowa 50319 Email: maggie.ferguson@idph.iowa.govPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: October 16, 2018 10:30 to 11:30 a.m. Room 518 Lucas State Office Building Des Moines, Iowa Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making action is proposed:
ITEM 1. Adopt the following new 641—Chapter 54: CHAPTER 54CONCUSSION AND BRAIN INJURY RETURN-TO-PLAY PROTOCOL641—54.1(280) Purpose. This chapter describes the return-to-play protocol for concussion and brain injury to be adopted by July 1, 2019, by the board of directors of each school district and the authorities in charge of each accredited nonpublic school with enrolled students who participate in an extracurricular interscholastic activity in grades seven through twelve.641—54.2(280) Definitions. For the purpose of these rules, the following definitions shall apply. "Asymptomatic" means the student is no longer showing signs, symptoms, or behaviors consistent with a concussion or brain injury. "Contest" means an interscholastic athletic game or competition. "Extracurricular interscholastic activity" means any dance or cheerleading activity or extracurricular interscholastic activity, contest, or practice governed by the Iowa high school athletic association or the Iowa girls high school athletic union that is a contact or limited contact activity as identified by the American Academy of Pediatrics. "Licensed health care provider" means a physician, physician assistant, chiropractor, advanced registered nurse practitioner, nurse, physical therapist, or athletic trainer licensed by a board designated under Iowa Code section 147.13. "Medical clearance" means written clearance from a licensed health care provider releasing the student following a concussion or brain injury to return to or commence participation in any extracurricular interscholastic activity. "Return-to-learn plan" means the plan developed by personnel of a school district or accredited nonpublic school based on guidance developed as required under 2018 Iowa Acts, House File 2442, to provide adjustments or accommodations as the student returns to the classroom. "Return-to-play" means the gradual, step-wise approach to returning a student to participation in any extracurricular interscholastic activity following a concussion or brain injury. 641—54.3(280) Return-to-play protocol. The following return-to-play step-wise process shall begin when the student who has been removed from participation in any extracurricular interscholastic activity governed by the Iowa high school athletic association or the Iowa girls high school athletic union is no longer showing signs, symptoms, or behaviors consistent with a concussion or brain injury for a minimum of 24 hours and has received written medical clearance from a licensed health care provider to return to or commence such participation. 54.3(1) Return-to-play process. Each step shall take a minimum of 24 hours. a. If the student shows signs, symptoms, or behaviors consistent with a concussion or brain injury at any step of the return-to-play protocol, the student must stop the activity and the student’s licensed health care provider or parent/guardian, or both, shall be contacted. b. If the student shows signs, symptoms, or behaviors consistent with a concussion or brain injury during this process, an additional 24-hour period of rest shall take place. After the 24-hour period of rest, the student shall drop back to the previous level when the student showed no signs, symptoms, or behaviors consistent with a concussion or brain injury and begin the progression again. 54.3(2) Return-to-play steps. Step 1Athlete has received written medical clearance from a licensed health care provider to begin the return-to-play process, AND the athlete is back to regular activities, including school, without experiencing any concussion signs, symptoms, or behaviors for a minimum of 24 hours. Step 2Low impact, light aerobic exercise. Walking or stationary cycling at slow to medium pace. No resistance/weight training. Step 3Basic exercise, such as running in the gym or on the field. No helmet or other equipment.Step 4Noncontact, sport-specific training drills (dribbling, ball handling, batting, fielding, running drills) in full equipment. Resistance/weight training may begin.Step 5Full contact practice and participation in normal training activities.Step 6Contest participation. These rules are intended to implement 2018 Iowa Acts, House File 2442. ARC 4006CReal Estate Appraiser Examining Board[193F]Notice of Intended ActionProposing rule making related to real estate appraiser qualification criteria and providing an opportunity for public comment
The Real Estate Appraiser Examining Board hereby proposes to amend Chapter 1, “Organization and Administration,” Chapter 3, “General Provisions for Examinations,” Chapter 4, “Associate Real Property Appraiser,” Chapter 5, “Certified Residential Real Property Appraiser,” Chapter 6, “Certified General Real Property Appraiser,” and Chapter 15, “Supervisor Responsibilities,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 543D.5.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapter 543D.Purpose and Summary Under the provisions of Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), the Appraiser Qualifications Board (AQB) establishes the Real Property Appraiser Qualification Criteria (Criteria), or the minimum education, experience, and examination requirements for real property appraisers to obtain a state certification. As of May 1, 2018, the AQB has lowered the minimum education, experience, and examination requirements. States may choose to have higher standards, but standards may not fall below the minimum requirements. The Board considered the May 1, 2018, Criteria changes and has decided to lower the educational portion to mirror that of the May 1, 2018, Criteria.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. 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 Board no later than 4:30 p.m. on October 16, 2018. Comments should be directed to: Brandy March Real Estate Appraiser Examining Board East Grand Office Park 200 East Grand Avenue, Suite 350 Des Moines, Iowa 50309 Phone: 515.725.9025 Email: brandy.march@iowa.govPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: October 16, 2018 8:30 to 9:30 a.m. Small Conference Room, Third Floor 200 East Grand Avenue Des Moines, Iowa Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Board and advise of specific needs. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:
ITEM 1. Amend rule 193F—1.19(543D) as follows:193F—1.19(543D) January 1, 2015May 1, 2018, criteria. 1.19(1) Effective on and after January 1, 2015May 1, 2018, the AQB has changed the criteria for eligibility for registration as an associate appraiser and certification as a certified appraiser. No person may be registered as an associate appraiser or certified as a certified appraiser on or after January 1, 2015May 1, 2018, unless the person is eligible under the revisedmost recent criteria. 1.19(2) The January 1, 2015May 1, 2018, criteria were adopted by the AQB in 20112018 and have been widely disseminated, including on the board’s Web sitewebsite at: http://www.state.ia.us/government/com/ prof/appraiser/home.htmlwww.idob.state.ia.us/reap/. a. For associate appraisers, the revised criteria place a five-year restriction on the time period in which qualifying education must be completed prior to the submission of an application for associate appraiser registration and require completion of supervisory appraiser/associate coursework by both the supervisory appraiser and the associate appraiser applicant.b. For certified appraisers, the revisedThe May 1, 2018, criteria modify the conditions under which applicants for certification are eligible to take the required examinations and require a bachelor’s degree for all certified appraisers, including residential appraisers. ITEM 2. Amend rule 193F—1.20(543D) as follows:193F—1.20(543D) Application and work product deadlines. 1.20(1) December 31, 2014, application deadline. In order to be considered for registration as an associate appraiser or certification as a certified appraiser under the criteria in effect prior to January 1, 2015, an applicant must submit an original, fully completed application to the board office for the board’s actual receipt no later than December 31, 2014, at 4:30 p.m. 1.(2) 1.20(1) Deadline for associate appraiser applicantsSummary of registration requirements for registration as an associate. The associate appraiser and supervisory appraiser provisions are more fully set out in 193F—Chapters 4 and 15, respectively. Before submitting an application for registration with the board, a person seeking registration as an associate appraiser must complete 75 hours of appraisal education and secure a qualified supervisory appraiser. An associate appraiser applicant who submits an application to the board office after December 31, 2014, at 4:30 p.m. shall be subject to the January 1, 2015, criteria and will accordingly be subject to the five-year restriction onmust have completed all required qualifying education and the supervisory appraiser/associate courseworkprior to submitting an application for registration. 1.(3) 1.20(2) Summary of certification requirements before January 1, 2015. As more fully set out in 193F—Chapters 3, 5, and 6, a person who is in the process of completing the education, experience, and examination required for certification as a certified appraiser may not submit an application for certification to the board until all prerequisites have been satisfactorily completed. The prerequisites include the following: qualifying college and core criteria appraiser education, qualifying examination, 2,500 hours of qualifying experience in a minimum of 24 months for residential appraisers or 3,000 hours of qualifying experience in a minimum of 30 months for general appraisers, and work product review. Work product review requires numerous steps, as provided in 193F—5.6(543D) and 193F—6.6(543D). The work product review process includes the applicant’s submission of a work product experience log to the board; the board’s selection of three appraisals to review; communication of the selected appraisals to the applicant; the applicant’s submission of the three appraisals and associated work files to the board in electronic and paper formats; review of the appraisals and work files by a reviewer retained by the board; the reviewer’s submission of review reports to the board; a meeting between the applicant and the board’s work product review committee; a formal board vote at a board meeting; and communication of approval, denial, or deferral to the applicant. All of these steps must be completed before an applicant with approved work product can submit an application for certification to the board office. 1.20(4) October 1, 2014, deadline for submission of appraisals and work files. a. As a result of the minimum periods of time needed to accomplish all work product review steps summarized in 1.20(3), an applicant for certification as a certified appraiser must fully submit to the board office the three appraisals and associated work files for work product review, as provided in 193F—5.6(543D) and 193F—6.6(543D), no later than October 1, 2014. b. To allow sufficient time for board selection of three appraisals from the work product review experience log, board communication of the selected appraisals to the applicant, and applicant submission of the appraisals and work files to the board office by October 1, 2014, applicants for residential certification should submit their work product experience log to the board by September 1, 2014, and applicants for general certification should submit their work product experience log to the board by August 1, 2014. c. Applicants for certification as residential or general certified appraisers who submit appraisals and work files for work product review on or after October 2, 2014, shall be considered for certification under the January 1, 2015, criteria. If an applicant submitting appraisals and work files for work product review on or after October 2, 2014, has previously passed the required examination, the examination results will remain valid for the 24-month period of validity, as described in 193F—Chapter 3. ITEM 3. Amend subrule 3.4(3) as follows: 3.4(3) An initial certificate shall not be issued until the applicant has demonstrated compliance with all required appraiser qualifications for certification, which include examination, educationcore criteria, a bachelor’s degreecollegiate education, and real property appraiser experience pursuant to Iowa Code section 543D.9 and 193F—Chapter 5 or 6. ITEM 4. Amend paragraph 4.1(1)"b" as follows: b. Beginning January 1, 2015, theThe initial qualifying education must be completed no more than five years prior to the date of application. ITEM 5. Amend subrule 4.1(2) as follows: 4.1(2) Training. Effective January 1, 2015, priorPrior to registration as an associate, a person must complete a course that complies with the specifications for course content established by the AQB specifically oriented to the requirements and responsibilities of supervisory appraisers and associate appraisers. The course must be completed before the person can obtain an associate credential. This course cannot be applied toward the required hours of qualifying or continuing education. ITEM 6. Amend rule 193F—5.2(543D) as follows:193F—5.2(543D) Education. Education requirements for an applicant to obtain a certificate as a certified residential real property appraiser shall be in compliance with the criteria as set forth by the Appraiser Qualifications Board (AQB) of the Appraisal Foundation.If an accredited college or university (accredited by the Commission on Colleges, by a regional or national accreditation association, or by an accrediting agency that is recognized by the U.S. Secretary of Education) accepts the College-Level Examination Program© (CLEP) examination(s) and issues a transcript for the examination(s) showing the college’s or university’s approval, the CLEP credit will be considered as credit for the college course. 5.2(1) FormalCollegiate education. There are five options toward certification as a certified residential real property appraiser. An applicant must meet at least one of the five options identified in paragraphs 5.2(1)“a” through 5.2(1)“e,” below, in order to be eligible for certification as a residential real property appraiser. a. Applicants must hold an associate’s degree or higher from an accredited college, junior college, community college, or university. In lieu of the associate’s degree, an applicant shall successfully pass all of the following collegiate subject matter courses from an accredited college, junior college, community college, or university:An applicant holds a bachelor’s degree in any field of study from an accredited college or university. (1) English composition; (2) Principles of economics (micro or macro); (3) Finance; (4) Algebra, geometry, or higher mathematics; (5) Statistics; (6) Computer science; and(7) Business or real estate law. b. Total hours of equivalent college courses in lieu of an associate’s degree are 21 semester credit hours or equivalent. If an accredited college or university (accredited by the Commission on Colleges, by a regional or national accreditation association, or by an accrediting agency that is recognized by the U.S. Secretary of Education) accepts the College-Level Examination Program© (CLEP) examination(s) and issues a transcript for the examination(s) showing the college’s or university’s approval, the CLEP credit will be considered as credit for the college course.An applicant holds an associate’s degree in a field of study from an accredited college, junior college, community college, or university that relates to: (1) Business administration; (2) Accounting; (3) Finance; (4) Economics; or (5) Real estate. c. Effective January 1, 2015, applicants must hold a bachelor’s degree or higher from an accredited college or university.Successful completion of 30 semester hours of college-level courses from an accredited college, junior college, community college, or university that cover each of the following specific areas and hours: (1) English composition (3 hours); (2) Microeconomics (3 hours); (3) Macroeconomics (3 hours); (4) Finance (3 hours); (5) Algebra, geometry, or higher math (3 hours); (6) Statistics (3 hours); (7) Computer science (3 hours); (8) Business law or real estate law (3 hours); (9) Two electives in any of the above topics or in accounting, geography, agriculture, economics, business management, or real estate (3 hours each). d. Successful completion of at least 30 semester hours of College-Level Examination Program© (CLEP) examinations that cover each of the following specific areas and hours: (1) College algebra (3 semester hours); (2) College composition (6 semester hours); (3) College composition modular (3 semester hours); (4) College mathematics (6 semester hours); (5) Principles of macroeconomics (3 semester hours); (6) Principles of microeconomics (3 semester hours); (7) Introductory business law (3 semester hours); and (8) Information systems (3 semester hours). e. Any combination of paragraphs 5.2(1)“c” and 5.2(1)“d,” above, that ensures coverage of all of the topics and hours identified in paragraph 5.2(1)“c.” For purposes of determining whether coverage of the topics and hours identified in paragraph 5.2(1)“c” has occurred: (1) The college algebra CLEP examination may be considered for satisfying the algebra, geometry, or higher math requirement of paragraph 5.2(1)“c.” (2) The college composition CLEP examination may be considered for satisfying the English composition requirement of paragraph 5.2(1)“c.” (3) The college composition modular CLEP examination may be considered for satisfying the English composition requirement of paragraph 5.2(1)“c.” (4) The college mathematics CLEP examination may be considered for satisfying the algebra, geometry, or higher math requirement of paragraph 5.2(1)“c.” (5) The principles of macroeconomics CLEP examination may be considered for satisfying the macroeconomics or finance requirement of paragraph 5.2(1)“c.” (6) The principles of microeconomics CLEP examination may be considered for satisfying the microeconomics or finance requirement of paragraph 5.2(1)“c.” (7) The introductory business law CLEP examination may be considered for satisfying the business law or real estate law requirement of paragraph 5.2(1)“c.” (8) The information systems CLEP examination may be considered for satisfying the computer science requirement of paragraph 5.2(1)“c.” 5.2(2) Core criteria. In addition to the formal education in subrule 5.2(1), an applicant must complete 200 creditable class hours before taking the AQB-approved examination. All courses must be AQB-approved current core criteria to be considered creditable. The required courses and 200 hours consist of the following: a. Basic appraisal principles 30 hours b. Basic appraisal procedures 30 hours c. The 15-hour USPAP course or equivalent 15 hours d. Residential market analysis and highest and best use 15 hours e. Residential appraiser site valuation and cost approach 15 hours f. Residential sales comparison and income approaches 30 hours g. Residential report writing and case studies 15 hours h. Statistics, modeling and finance 15 hours i. Advanced residential applications and case studies 15 hours j. Appraisal subject matter electives 20 hours 5.2(3) Degree program. Credit toward core criteria qualifying education requirements may also be obtained via the completion of a degree in real estate from an accredited degree-granting college or university, provided that the college or university has had its curriculum reviewed and approved by the AQB. ITEM 7. Amend rule 193F—5.3(543D) as follows:193F—5.3(543D) Examination. The prerequisite for taking the AQB-approved examination is completion of 200 creditable course hours as specified in subrule 5.2(2). Effective January 1, 2015, theThe 200 creditable course hours, college or university degreecollegiate education, and all experience must be completed as specified in subrules 5.2(1) and 5.2(2) and rule 193F—5.4(543D) prior to the examination. For 5.2(2)“c,” equivalency shall be determined through the AQB Course Approval Program or by an alternate method established by the AQB. USPAP qualifying education shall be awarded only when the class is instructed by at least one AQB-certified USPAP instructor who holds a state-issued certified residential or certified general appraiser credential in active status and good standing. 5.3(1) Qualification. a. In order to qualify to sit for the certified residential real property appraiser examination, the applicant must: (1) Complete the board’s application form and provide copies of documentation of completion of all courses claimed that qualify the applicant to sit for the examination. (2) Pay the fee specified in 193F—Chapter 12. b. Effective January 1, 2015, the bachelor’s degree, educationThe core criteria, collegiate education, and experience must be completed and the documentation submitted to the board at the time of application to sit for the examination. 5.3(2) The board may verify educational credits claimed. Undocumented credits will be sufficient cause to invalidate the examination results pursuant to 193F—paragraph3.3(2)“c.” 5.3(3) Responsibility for documenting the educational credits claimed rests with the applicant. 5.3(4) An applicant must supply the original examination scores when applying for certification. Copies of the scores will not be accepted. 5.3(5) If an applicant who has passed an examination does not obtain the related appraiser credential within 24 months after passing the examination, that examination result loses its validity to support issuance of an appraiser credential. To regain eligibility for the credential, the applicant must retake and pass the examination. This requirement applies to individuals obtaining an initial certified credential or upgrading from an associate credential. ITEM 8. Amend rule 193F—5.4(543D) as follows:193F—5.4(543D) Supervised experience required for initial certification. Commencing with experience attained on or after July 1, 2007, allAll experience required for initial certification pursuant to Iowa Code section 543D.9 shall be performed as a registered associate real property appraiser under the direct supervision of a certified real property appraiser pursuant to the provisions of 193F—Chapter 15. 5.4(1) Acceptable experience. The board will accept as qualifying experience the documented experience attained while the applicant for initial certification was in an educational program recognized by the Appraiser Qualifications Board and Appraisal Subcommittee as providing qualifying experience for initial certification, whether or not the applicant was registered as an associate real property appraiser at the time the educational program was completed. Such programs, if approved by federal authorities, will incorporate direct supervision by a certified real property appraiser and such additional program features as to satisfy the purpose of requiring that qualifying experience be attained by the applicant as an associate real property appraiser. 5.4(2) Exceptions. a. Applicants for initial certification in Iowa who request that the board approve experience performed in the absence of registration as an associate real property appraiser may file an application for approval on a form provided by the board. The burden shall be on the applicant to establish by clear and convincing evidence all of the following: (1) The experience is qualifying experience under the substantive and documentation standards of the Appraiser Qualifications Board and Appraisal Subcommittee. (2) Denial of the application would impose an undue hardship on the applicant. (3) The nature of the experience attained is qualitatively and substantially equivalent to the experience an associate real property appraiser would receive under the direct supervision of a certified real property appraiser pursuant to the standards established in 193F—Chapter 15. (4) Approval of the application would foster the board’s goal of fair and consistent treatment of applicants. (5) A basis exists beyond the individual control of the applicant to explain why the experience at issue could not have been attained by the applicant as an associate real property appraiser under the direct supervision of a certified real property appraiser. b. Among the circumstances the board may consider favorably in ruling on an application for approval of unsupervised experience or experience attained by the applicant in the absence of registration as an associate real property appraiser are: (1) The experience was attained in a jurisdiction that, at the time, did not register associate real property appraisers or otherwise offer an associate, trainee or equivalent category of certification. (2) The applicant attained the experience while employed in a county assessor’s office engaged in mass appraisals, and the experience would otherwise qualify under applicable federal standards. (3) The experience was attained between July 1, 2007, and January 1, 2008, and the appraiser could not reasonably have become registered and associated with a supervising certified appraiser by July 1, 2007, which is the effective date of the requirement that qualifying experience be attained by the applicant as an associate real property appraiser working under the direct supervision of a certified real property appraiser. ITEM 9. Amend subrule 5.5(2) as follows: 5.5(2) The applicant shall accumulate a total of 25002,500 hours ofresidential appraisal experience in no fewer than 24 months while in active status, of which a minimum of 1500 hours must consist of residential appraisal experience. While the hours may be cumulative, the 24 months must have elapsed before the applicant can apply to take the examination. Experience claimed must have been performed in compliance with USPAP in which the appraiser demonstrates proficiency in appraisal principles methodology, procedures and reporting conclusions. Acceptable appraisal experience includes, but is not limited to, the following: a. Fee and staff appraisal; b. Ad valorem tax appraisal; c. Review appraisal; d. Appraisal analysis; e. Appraisal consulting; f. Highest and best use analysis; and g. Feasibility analysis/study. ITEM 10. Amend subrule 5.6(11) as follows: 5.6(11) Upon successful completion of the work product review process, an applicant will have 60 days to submit an application. Any applicationAll applications filed on or after January 1, 2015, must meet 2015the current AQB criteria. ITEM 11. Amend subrule 5.7(1) as follows: 5.7(1) Education. a. FormalCollegiate education.Certified residential real property appraisers must satisfy the college-level education requirements as specified in rule 193F—6.2(543D). b. Core criteria.In addition to the formal education, an applicant must complete 100 creditable class hours before taking the AQB-approved examination. All courses must be AQB-approved under current core criteria to be considered creditable. The required courses and 100 hours consist of the following: (1) General appraiser market analysis and highest and best use 15 hours (2) General appraiser sales comparison approach 15 hours (3) General appraiser site valuation and cost approach 15 hours (4) General appraiser income approach 45 hours (5) General appraiser report writing and case studies 10 hours ITEM 12. Amend subrule 6.2(1) as follows: 6.2(1) FormalCollegiate education. a. Applicants must hold a bachelor’s degree or higher from an accredited college, junior college, community college, or university. In lieu of the bachelor’s degree, an applicant shall successfully pass all of the following collegiate subject matter courses from an accredited college, junior college, community college, or university:If an accredited college or university (accredited by the Commission on Colleges, by a regional or national accreditation association, or by an accrediting agency that is recognized by the U.S. Secretary of Education) accepts the College-Level Examination Program© (CLEP) examination(s) and issues a transcript for the examination(s) showing the college’s or university’s approval, the CLEP credit will be considered as credit for the college course. An applicant who submits a master’s degree or higher as proof of the applicant’s bachelor’s degree must include an affidavit or a copy of the bachelor’s degree attesting that the bachelor’s degree is from an accredited college or university.(1) English composition;(2) Microeconomics;(3) Macroeconomics;(4) Finance;(5) Algebra, geometry, or higher mathematics;(6) Statistics;(7) Computer science;(8) Business or real estate law; and(9) Two elective courses in accounting, geography, agricultural economics, business management, or real estate. b. Total hours of equivalent college courses in lieu of a bachelor’s degree are 30 semester credit hours or equivalent. If an accredited college or university (accredited by the Commission on Colleges, by a regional or national accreditation association, or by an accrediting agency that is recognized by the U.S. Secretary of Education) accepts the College-Level Examination Program© (CLEP) examination(s) and issues a transcript for the examination(s) showing the college’s or university’s approval, the CLEP credit will be considered as credit for the college course. c. Effective January 1, 2015, applicants must hold a bachelor’s degree or higher from an accredited college or university. ITEM 13. Amend rule 193F—6.3(543D) as follows:193F—6.3(543D) Examination. The prerequisite for taking the AQB-approved examination is completion of 300 creditable course hours as specified in subrule 6.2(2). Effective January 1, 2015, theThe 300 core criteria hours, college or university degreecollegiate education, and all experience must be completed as specified in subrules 6.2(1) and 6.2(2) and rule 193F—6.4(543D) prior to the examination. For 6.2(2)“c,” equivalency shall be determined through the AQB Course Approval Program or by an alternate method established by the AQB. USPAP qualifying education shall be awarded only when the class is instructed by at least one AQB-certified USPAP instructor who holds a state-issued certified residential or certified general appraiser credential in active status and good standing. 6.3(1) In order to qualify to sit for the certified general real property appraiser examination, the applicant must: a. Complete the board’s application form and provide copies of documentation of completion of all courses claimed that qualify the applicant to sit for the examination. b. Pay the fee specified in 193F—Chapter 12. c. Effective January 1, 2015, theThe degree, education and experience must be completed and documentation submitted to the board at the time of application to sit for the examination. 6.3(2) The board may verify educational credits claimed. Undocumented credits will be sufficient cause to invalidate the examination results pursuant to 193F—paragraph 3.3(2)“c.” 6.3(3) Responsibility for documenting the educational credits claimed rests with the applicant. 6.3(4) An applicant must supply the original examination scores when applying for certification. Copies of the scores will not be accepted. 6.3(5) If an applicant who has passed an examination does not obtain the related appraiser credential within 24 months after passing the examination, that examination result loses its validity to support issuance of an appraiser credential. To regain eligibility for the credential, the applicant must retake and pass the examination. This requirement applies to individuals obtaining an initial certified credential or upgrading from an associate credential. ITEM 14. Amend rule 193F—6.4(543D) as follows:193F—6.4(543D) Supervised experience required for initial certification. Commencing with experience attained on or after July 1, 2007, allAll experience required for initial certificationto obtain certification as a certified general real property appraiser pursuant to Iowa Code section 543D.9 shall be performed as a registered associate real property appraiser under the direct supervision of a certifiedgeneral real property appraiser pursuant to the provisions of 193F—Chapter 15. 6.4(1) Acceptable experience. The board will accept as qualifying experience the documented experience attained while the applicant for initial certification was in an educational program recognized by the Appraiser Qualifications Board and Appraisal Subcommittee as providing qualifying experience for initial certification, whether or not the applicant was registered as an associate real property appraiser at the time the educational program was completed. Such programs, if approved by federal authorities, will incorporate direct supervision by a certified real property appraiser and such additional program features as to satisfy the purpose of requiring that qualifying experience be attained by the applicant as an associatea real property appraiser. 6.4(2) Exceptions. a. Applicants for initialcertified general real property certification in Iowa who request that the board approve experience performed in the absence of registration as an associate real property appraiser may file an application for approval on a form provided by the board. The burden shall be on the applicant to establish by clear and convincing evidence all of the following: (1) The experience is qualifying experience under the substantive and documentation standards of the Appraiser Qualifications Board and Appraisal Subcommittee. (2) Denial of the application would impose an undue hardship on the applicant. (3) The nature of the experience attained is qualitatively and substantially equivalent to the experience an associate real property appraiser would receive under the direct supervision of a certified real property appraiser pursuant to the standards established in 193F—Chapter 15. (4) Approval of the application would foster the board’s goal of fair and consistent treatment of applicants. (5) A basis exists beyond the individual control of the applicant to explain why the experience at issue could not have been attained by the applicant as an associate real property appraiser under the direct supervision of a certifiedgeneral real property appraiser. b. Among the circumstances the board may consider favorably in ruling on an application for approval of unsupervised experience or experience attained by the applicant in the absence of registration as an associate real property appraiser are: (1) The experience was attained in a jurisdiction that, at the time, did notrequire direct supervision or register associate real property appraisers or otherwise offer an associate, trainee or equivalenta category of certification. (2) The applicant attained the experience while employed in a county assessor’s office engaged in mass appraisals, and the experience would otherwise qualify under applicable federal standards. (3) The experience was attained between July 1, 2007, and January 1, 2008, and the appraiser could not reasonably have become registered and associated with a supervising certified appraiser by July 1, 2007, which is the effective date of the requirement that qualifying experience be attained by the applicant as an associate real property appraiser working under the direct supervision of a certified real property appraiser. ITEM 15. Amend subrule 6.5(2) as follows: 6.5(2) The applicant shall accumulate a total of 30003,000 hours of appraisal experience in no fewer than 30 months while in active status, of which 15001,500 hours must consist of nonresidential appraisal experience. While the hours may be cumulative, the 30 months must have elapsed before an applicant can be certified. Experience claimed must have been performed in compliance with USPAP where the appraiser demonstrates proficiency in appraisal principles methodology, procedures and reporting conclusions. Acceptable appraisal experience includes, but is not limited to, the following: a. Fee and staff appraisal; b. Ad valorem tax appraisal; c. Review appraisal; d. Appraisal analysis; e. Appraisal consulting; f. Highest and best use analysis; and g. Feasibility analysis/study. ITEM 16. Amend subrule 6.6(11) as follows: 6.6(11) Upon successful completion of the work product review process, an applicant will have 60 days to submit an application. Any applicationAll applications filed on or after January 1, 2015, must meet 2015current AQB criteria. ITEM 17. Amend subrule 15.3(4) as follows: 15.3(4) Effective January 1, 2015, aA certified appraiser shall perform as a supervisory appraiser in Iowa only if the appraiser has completed a course that, at a minimum, complies with the specifications for course content established by the Appraiser Qualifications Board. The course is to be completed before the certified appraiser provides supervision.ARC 4022CRevenue Department[701]Notice of Intended ActionProposing rule making related to section 179 expensing and providing an opportunity for public comment
The Revenue Department hereby proposes to amend Chapter 40, “Determination of Net Income,” Chapter 53, “Determination of Net Income,” and Chapter 59, “Determination of Net Income,” 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, 2018 Iowa Acts, Senate File 2417.Purpose and Summary These rules are intended to implement 2018 Iowa Acts, Senate File 2417, which, in part, conforms Iowa’s tax laws to recent changes to the federal deduction for expensing certain depreciable business assets (section 179 deduction) but imposes Iowa-specific limitations on that deduction for certain years. These rules also implement the new special election available to taxpayers who receive section 179 deductions from pass-through entities under certain circumstances.Fiscal Impact These rules have no known fiscal impact beyond that of the legislation they are intended to implement. 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.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 October 17, 2018. Comments should be directed to: Benjamin Clough Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.725.2176 Email: ben.clough@iowa.govPublic Hearing If requested, a public hearing at which persons may present their views orally or in writing will be held as follows: October 17, 2018 9 to 10 a.m. Auditorium Wallace State Office Building Des Moines, Iowa Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs. The Department reserves the right to cancel the hearing if no timely requests for a public hearing are received.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—40.65(422) and adopt the following new rule in lieu thereof:701—40.65(422) Section 179 expensing. 40.65(1) In general. Iowa taxpayers who elect to expense certain depreciable business assets in the year the assets were placed in service under Section 179 of the Internal Revenue Code must also expense those same assets for Iowa income tax purposes in that year. However, for certain years, the Iowa limitations on this deduction are different from the federal limitations for the same year. This means that for some tax years, adjustments are required to determine the correct Iowa section 179 expensing deduction, as described in this rule. 40.65(2) Claiming the deduction. a. Timing and requirement to follow federal election.A taxpayer who takes a federal section 179 deduction must also take the deduction for the same asset in the same year for Iowa purposes, except as expressly provided by Iowa law or this rule. A taxpayer who takes a federal section 179 deduction is not permitted to opt out of taking the same deduction for Iowa purposes. A taxpayer who does not take a federal section 179 deduction on a specific qualifying asset is not permitted to take a section 179 deduction for Iowa purposes on that asset. b. Qualifying for the deduction.Whether a specific business asset qualifies for a section 179 deduction is determined by the Internal Revenue Code (Title 26, U.S. Code) and applicable federal regulations for both federal and Iowa purposes. c. Amount of the Iowa deduction.Generally, the Iowa deduction must equal the amount of the federal deduction taken for the same asset in the same year, subject to special Iowa limitations. The following chart provides a comparison of the Iowa and federal section 179 dollar limitations and reduction limitations. For tax years beginning on or after January 1, 2018, and before January 1, 2019, the Iowa limitations applicable to individuals and corporations are not the same; see rule 701—53.23(422) for the section 179 limitations imposed on corporations and other entities subject to the corporate income tax, and see rule 701—59.24(422) for the section 179 limitations imposed on financial institutions subject to the franchise tax.Section 179 Deduction Allowances Under Federal and Iowa LawFederalIowa Tax YearDollar LimitationReduction LimitationDollar Limitation Reduction Limitation2003$ 100,000$ 400,000$ 100,000$ 400,0002004102,000410,000102,000410,0002005105,000420,000105,000420,0002006108,000430,000108,000430,0002007125,000500,000125,000500,0002008250,000800,000250,000800,0002009250,000800,000133,000530,0002010500,0002,000,000500,0002,000,0002011500,0002,000,000500,0002,000,0002012500,0002,000,000500,0002,000,0002013500,0002,000,000500,0002,000,0002014500,0002,000,000500,0002,000,0002015500,0002,000,000500,0002,000,0002016500,0002,010,00025,000200,0002017510,0002,030,00025,000200,00020181,000,0002,500,00070,000* 280,0002019Indexed amount unknown as of 8/2/18Indexed amount unknown as of 8/2/18100,000400,0002020 and laterIowa limitations are the same as federal* The Iowa limitations for 2018 are applicable to individuals, trusts and estates, and pass-through entities other than corporations or financial institutions. For Iowa limitations applicable to corporations and entities subject to the corporate income tax, or to financial institutions subject to the franchise tax, see rules 701—53.23(422) and 701—59.24(422), respectively. d. Reduction.Both the federal and the Iowa deductions for section 179 assets are reduced (phased out dollar for dollar) for taxpayers whose total section 179 assets placed in service during a given year cost more than the amount specified (reduction limitation) for that year. Like the deduction limitation, the Iowa and federal reduction limitations are different for certain years. See paragraph 40.65(2)“c” for applicable limitations. e. Amounts in excess of the Iowa limits. (1) Recovering the excess. Due to the differences between the Iowa and federal limitations for certain years, taxpayers may have a federal section 179 deduction that exceeds the amount allowed for Iowa purposes. This excess amount is handled in different ways depending on the source of the deduction. 1. Assets placed in service by the taxpayer or entity reporting the deduction. The cost of any section 179 assets placed in service by the taxpayer in excess of the Iowa limitation for a given year may be recovered through regular depreciation under Section 168 of the Internal Revenue Code, without regard to bonus depreciation under Section 168(k). The Iowa section 179 and depreciation deductions and any basis adjustments resulting from the difference in timing of the recovery between Iowa and federal law are calculated and tracked on forms made available on the department’s website. 2. Special election for assets placed in service by a pass-through entity when the section 179 deduction is claimed by the owner of that pass-through. See subrule 40.65(3) for information on a special election available to certain owners of pass-through entities related to any section 179 deductions passed through from a partnership or other entity that, in the aggregate, exceed the Iowa limitations. (2) Application of limitation to pass-throughs. In the case of pass-through entities, section 179 limitations apply at both the entity level and the owner level. Pass-through entities that are required to file an Iowa return and that actually place section 179 assets in service should follow 40.65(2)“e”(1)“1” to account for any assets for which the total federal section 179 deductions for a given year exceeded the Iowa limitation. Owners of pass-throughs receiving section 179 deductions from one or more pass-throughs that, in the aggregate, exceed the Iowa limitations should follow 40.65(2)“e”(1)“2.” f. Income limitation.The Iowa section 179 deduction for any given year is limited to the taxpayer’s income from active conduct in a trade or business in the same manner that the section 179 deduction is limited for federal purposes. If an allowable Iowa section 179 deduction exceeds the taxpayer’s business income for a given year, any excess may be carried forward as described in paragraph 40.65(2)“g.” g. Carryforward.This paragraph applies only to amounts that do not exceed the Iowa section 179 deduction limitations for a given year but do exceed the taxpayer’s business income for that year. As with the federal deduction, allowable Iowa section 179 deductions claimed in a given year that exceed a taxpayer’s business income may be carried forward and claimed in future years. This carryforward, if any, is calculated using only amounts up to the Iowa limit. Any federal section 179 deduction the taxpayer claimed in excess of the Iowa limit is not an Iowa section 179 deduction and therefore is not eligible for the carryforward described in this paragraph. Such amounts must instead be recovered as described in paragraph 40.65(2)“e,” or in subrule 40.65(3) for taxpayers receiving the deduction from one or more pass-through entities and making the special election as described in that subrule. h. Differences in basis.Iowa adjustments for differences between the Iowa and federal section 179 deduction limitations may cause the taxpayer to have a different basis in the same asset for Iowa and federal purposes. Taxpayers are required to use forms made available on the department’s website to calculate and track these differences. 40.65(3) Section 179 deduction received from a pass-through entity. In some cases, an individual or entity that receives income from one or more pass-through entities may receive a section 179 deduction in excess of the Iowa deduction limitation listed in paragraph 40.65(2)“c” for a given year. The individual or entity may be eligible for a special election with regard to that excess section 179 deduction, as described in this subrule. a. Tax years beginning before January 1, 2018.For tax years beginning before January 1, 2018, the amount of any section 179 deduction received in excess of the Iowa deduction limitation for that year is not eligible for the special election. b. Special election available for tax years 2018 and 2019.For tax years beginning on or after January 1, 2018, but before January 1, 2020, an individual or entity, other than a corporation or an entity subject to the corporate income tax or franchise tax, that receives a section 179 deduction from one or more pass-through entities in excess of the Iowa deduction limitation for that tax year may elect to deduct the excess in future years, as described in this subrule. See rule 701—53.23(422) for special rules applicable to corporations and other entities subject to the corporate income tax, and see rule 701—59.24(422) for special rules applicable to financial institutions subject to the franchise tax. (1) This special election applies only to section 179 deductions passed through to the individual or entity by one or more other entities. (2) If the total Iowa section 179 deduction passed through to the individual or entity exceeds the federal section 179 deduction limitation for that year, the individual or entity may only use the amount up to the federal limitation when calculating the deduction under this election. Any amount in excess of the federal limitation shall not be deducted for Iowa purposes. c. Section 179 assets of an individual or entity.An individual or entity that makes the special election may not claim an Iowa section 179 deduction for any assets the individual or entity placed in service during the same year but must instead depreciate such assets using the modified accelerated cost recovery system (MACRS) without regard to bonus depreciation under Section 168(k) of the Internal Revenue Code. To the extent the individual or entity claimed a federal section 179 deduction on those assets, the Iowa depreciation deductions and any basis adjustments resulting from the difference in timing of the recovery between Iowa law and federal law are calculated and tracked on forms made available on the department’s website. d. Calculating the special election.An eligible individual or entity electing to take advantage of the special election must first add together all section 179 deductions which the individual or entity received from all relevant pass-through entities. The individual or entity must claim an aggregate Iowa section 179 deduction equal to the Iowa limit for the tax year. This amount must be subtracted from the total. Whatever remains is the amount the individual or entity will be permitted to deduct (special election deduction) in future years. e. Special election deduction. (1) Calculation. The remaining amount from paragraph 40.65(3)“d” must be divided into five equal shares. (2) Claiming the special election deduction. The individual or entity may deduct one of the five shares in each of the next five years. The dollar limitations and reduction limitations on section 179 deductions do not apply to special deduction amounts allowed over the five-year period under this paragraph. (3) Excess special deduction. The special election deduction for a given year is limited to the taxpayer’s business income for that year. Any excess may be carried forward to future years. Any amounts carried forward under this subparagraph shall be added to, and treated in the same manner as, regular Iowa section 179 deduction carryforwards as described in paragraph 40.65(2)“g.” f. Basis.The individual’s or entity’s basis in the pass-through entity assets is adjusted by the full amount of the section 179 deduction passed through in the year that the section 179 deduction is received and is therefore the same for both Iowa and federal purposes. g. Later tax years.For tax years beginning on or after January 1, 2020, Iowa fully conforms to the federal section 179 deduction and special Iowa treatment for excess section 179 deductions received from pass-throughs is not available. This rule is intended to implement Iowa Code section 422.7 as amended by 2018 Iowa Acts, Senate File 2417. ITEM 2. Rescind rule 701—53.23(422) and adopt the following new rule in lieu thereof:701—53.23(422) Section 179 expensing. 53.23(1) In general. Iowa taxpayers that elect to expense certain depreciable business assets in the year the assets were placed in service under section 179 of the Internal Revenue Code must also expense those same assets for Iowa income tax purposes in that year. However, for certain years, the Iowa limitations on this deduction are different from the federal limitations for the same year. This means that for some tax years, adjustments are required to determine the correct Iowa section 179 expensing deduction, as described in this rule. 53.23(2) Claiming the deduction. a. Timing and requirement to follow federal election.A taxpayer that takes a federal section 179 deduction must also take the deduction for the same asset in the same year for Iowa purposes, except as expressly provided by Iowa law or this rule. A taxpayer that takes a federal section 179 deduction is not permitted to opt out of taking the same deduction for Iowa purposes. A taxpayer that does not take a federal section 179 deduction on a specific qualifying asset is not permitted to take a section 179 deduction for Iowa purposes on that asset. b. Qualifying for the deduction.Whether a specific business asset qualifies for a section 179 deduction is determined by the Internal Revenue Code (Title 26, U.S. Code) and applicable federal regulations for both federal and Iowa purposes. c. Amount of the Iowa deduction.Generally, the Iowa deduction must equal the amount of the federal deduction taken for the same asset in the same year, subject to special Iowa limitations. The following chart provides a comparison of the Iowa and federal section 179 dollar limitations and reduction limitations. For tax years beginning on or after January 1, 2018, and before January 1, 2019, the Iowa limitations applicable to corporations and other entities subject to the corporate income tax and to financial institutions subject to the franchise tax are not the same as the limitations applicable to individuals and other entities; see rule 701—40.65(422) for the section 179 limitations imposed on individuals and other noncorporate entities, and see rule 701—59.24(422) for the section 179 limitations subject to financial institutions subject to the franchise tax.Section 179 Deduction Allowances Under Federal and Iowa LawFederalIowa Tax YearDollar LimitationReduction LimitationDollar Limitation Reduction Limitation2003$ 100,000$ 400,000$ 100,000$ 400,0002004102,000410,000102,000410,0002005105,000420,000105,000420,0002006108,000430,000108,000430,0002007125,000500,000125,000500,0002008250,000800,000250,000800,0002009250,000800,000133,000530,0002010500,0002,000,000500,0002,000,0002011500,0002,000,000500,0002,000,0002012500,0002,000,000500,0002,000,0002013500,0002,000,000500,0002,000,0002014500,0002,000,000500,0002,000,0002015500,0002,000,000500,0002,000,0002016500,0002,010,00025,000200,0002017510,0002,030,00025,000200,00020181,000,0002,500,00025,000* 200,0002019Indexed amount unknown as of 8/2/18Indexed amount unknown as of 8/2/18100,000400,0002020 and laterIowa limitations are the same as federal* The Iowa limitations for 2018 are applicable to corporations, entities subject to the corporate income tax, and financial institutions subject to the franchise tax. For Iowa limitations applicable to individuals, trusts and estates, and pass-through entities which are not corporations, see rule 701—40.65(422). d. Reduction.Both the federal and the Iowa deductions for section 179 assets are reduced (phased out dollar for dollar) for taxpayers whose total section 179 assets placed in service during a given year cost more than the amount specified (reduction limitation) for that year. Like the deduction limitation, the Iowa and federal reduction limitations are different for certain years. See paragraph 53.23(2)“c” for applicable limitations. e. Amounts in excess of the Iowa limits. (1) Recovering the excess. Due to the differences between the Iowa and federal limitations for certain years, taxpayers may have a federal section 179 deduction that exceeds the amount allowed for Iowa purposes. This excess amount is handled in different ways depending on the source of the deduction. 1. Assets placed in service by the taxpayer or entity reporting the deduction. The cost of any section 179 assets placed in service by the taxpayer in excess of the Iowa limitation for a given year may be recovered through regular depreciation under Section 168 of the Internal Revenue Code, without regard to bonus depreciation under Section 168(k). The Iowa section 179 and depreciation deductions and any basis adjustments resulting from the difference in timing of the recovery between Iowa and federal law are calculated and tracked on forms made available on the department’s website. 2. Special election for assets placed in service by a pass-through entity when the section 179 deduction is claimed by an owner of that pass-through. See subrule 53.23(3) for information on a special election available to certain owners of pass-through entities related to any section 179 deductions passed through from a partnership or other entity that, in the aggregate, exceed the Iowa limitations. (2) Special information for pass-throughs. In the case of pass-through entities, section 179 limitations apply at both the entity level and the owner level. Pass-through entities that are required to file an Iowa return and that actually place section 179 assets in service should follow 53.23(2)“e”(1)“1” to account for any assets for which the total federal section 179 deductions for a given year exceeded the Iowa limitation. Owners of pass-throughs receiving section 179 deductions from one or more pass-throughs that, in the aggregate, exceed the Iowa limitations should follow 53.23(2)“e”(1)“2.” f. Income limitation.The Iowa section 179 deduction for any given year is limited to the taxpayer’s income from active conduct in a trade or business in the same manner that the section 179 deduction is limited for federal purposes. If an allowable Iowa section 179 deduction exceeds the taxpayer’s business income for a given year, any excess allowable Iowa section 179 deduction may be carried forward as described in paragraph 53.23(2)“g.” g. Carryforward.This paragraph applies only to amounts that do not exceed the Iowa section 179 deduction limitations for a given year but do exceed the taxpayer’s business income for that year. As with the federal deduction, allowable Iowa section 179 deductions claimed in a given year that exceed a taxpayer’s business income may be carried forward and claimed in future years. This carryforward, if any, is calculated using only amounts up to the Iowa limit. Any federal section 179 deduction the taxpayer claimed in excess of the Iowa limit is not an Iowa section 179 deduction and therefore is not eligible for the carryforward described in this paragraph. Such amounts must instead be recovered as described in paragraph 53.23(2)“e,” or in subrule 53.23(3) for taxpayers receiving the deduction from one or more pass-through entities and making the special election as described in that subrule. h. Difference in basis.Iowa adjustments for differences between the Iowa and federal section 179 deduction limitations may cause the taxpayer to have a different basis in the same asset for Iowa and federal purposes. Taxpayers are required to use forms made available on the department’s website to calculate and track these differences. 53.23(3) Section 179 deduction received from a pass-through entity. In some cases, an entity that receives income from one or more pass-through entities may receive a section 179 deduction in excess of the Iowa deduction limitation listed in paragraph 53.23(2)“c” for a given year. The entity may be eligible for a special election with regard to that excess section 179 deduction, as described in this subrule. a. Tax years beginning before January 1, 2019.For tax years beginning before January 1, 2019, the amount of any section 179 deduction received by a corporation or an entity subject to the corporate income tax in excess of the Iowa deduction limitation for that year is not eligible for the special election. b. Special election available for tax year 2019.For tax years beginning on or after January 1, 2019, but before January 1, 2020, a corporation or an entity subject to the corporate income tax that receives a section 179 deduction from one or more pass-through entities in excess of the Iowa deduction limitation for that tax year may elect to deduct the excess in future years, as described in this subrule. See rule 701—40.65(422) for special rules applicable to individuals and other noncorporate entities, and see rule 701—59.24(422) for special rules applicable to financial institutions subject to the franchise tax. (1) This special election applies only to section 179 deductions passed through to the corporation or entity subject to the corporate income tax by one or more other entities. (2) If the total Iowa section 179 deduction passed through to the corporation or entity subject to the corporate income tax exceeds the federal section 179 deduction limitation for that year, the corporation or other entity may only use the amount up to the federal limitation when calculating the deduction under this election. Any amount in excess of the federal limitation shall not be deducted for Iowa purposes. c. Section 179 assets of a corporation or entity subject to the corporate income tax.A corporation or entity subject to the corporate income tax that makes this special election may not claim an Iowa section 179 deduction for any assets the corporation or entity placed in service during the same year but must instead depreciate such assets using the modified accelerated cost recovery system (MACRS) without regard to bonus depreciation under Section 168(k) of the Internal Revenue Code. To the extent the corporation or entity claimed a federal section 179 deduction on those assets, the Iowa depreciation deductions and any basis adjustments resulting from the difference in timing of the recovery between Iowa law and federal law are calculated and tracked on forms made available on the department’s website. d. Calculating the special election.A corporation or other entity subject to the corporate income tax that elects to take advantage of the special election must first add together all section 179 deductions which the corporation or other entity received from all relevant pass-through entities. The corporation or other entity must claim an aggregate Iowa section 179 deduction equal to the Iowa limit for the tax year. This amount must be subtracted from the total. Whatever remains is the amount the corporation or other entity will be permitted to deduct (special election deduction) in future years. e. Special election deduction. (1) Calculation. The remaining amount from paragraph 53.23(3)“d” must be separated into five equal shares. (2) Claiming the special election deduction. The corporation or other entity may deduct one of the five shares in each of the next five years. The dollar limitations and reduction limitations on section 179 deductions do not apply to special deduction amounts allowed over the five-year period under this paragraph. (3) Excess special deduction. The special election deduction for a given year is limited to the taxpayer’s business income for that year. Any excess may be carried forward to future years. Any amounts carried forward under this subparagraph shall be added to, and treated in the same manner as, regular Iowa section 179 deduction carryforwards as described in paragraph 53.23(2)“g.” f. Basis.The individual’s or entity’s basis in the pass-through entity assets is adjusted by the full amount of the section 179 deduction passed through in the year that the section 179 deduction is received and is therefore the same for both Iowa and federal purposes. g. Later tax years.For tax years beginning on or after January 1, 2020, Iowa fully conforms to the federal section 179 deduction and special Iowa treatment for excess section 179 deductions received from pass-throughs is not available. This rule is intended to implement Iowa Code section 422.35 as amended by 2018 Iowa Acts, Senate File 2417. ITEM 3. Rescind rule 701—59.24(422) and adopt the following new rule in lieu thereof:701—59.24(422) Section 179 expensing. 59.24(1) In general. Iowa taxpayers that elect to expense certain depreciable business assets in the year the assets were placed in service under Section 179 of the Internal Revenue Code must also expense those same assets for Iowa income tax purposes in that year. However, for certain years, the Iowa limitations on this deduction are different from the federal limitations for the same year. This means that for some tax years, adjustments are required to determine the correct Iowa section 179 expensing deduction, as described in this rule. 59.24(2) Claiming the deduction. a. Timing and requirement to follow federal election.A taxpayer that takes a federal section 179 deduction must also take the deduction for the same asset in the same year for Iowa purposes, except as expressly provided by Iowa law or this rule. A taxpayer that takes a federal section 179 deduction is not permitted to opt out of taking the same deduction for Iowa purposes. A taxpayer that does not take a federal section 179 deduction on a specific qualifying asset is not permitted to take a section 179 deduction for Iowa purposes on that asset. b. Qualifying for the deduction.Whether a specific business asset qualifies for a section 179 deduction is determined by the Internal Revenue Code (Title 26, U.S. Code) and applicable federal regulations for both federal and Iowa purposes. c. Amount of the Iowa deduction.Generally, the Iowa deduction must equal the amount of the federal deduction taken for the same asset in the same year, subject to special Iowa limitations. The following chart provides a comparison of the Iowa and federal section 179 dollar limitations and reduction limitations. For tax years beginning on or after January 1, 2018, and before January 1, 2019, the Iowa limitations applicable to financial institutions subject to the franchise tax and to corporations and other entities subject to the corporate income tax are not the same as the limitations applicable to individuals and other entities; see rule 701—40.65(422) for the section 179 limitations imposed on individuals and other noncorporate entities, and see rule 701—53.23(422) for the section 179 limitations imposed on corporations and other entities subject to the corporate income tax.Section 179 Deduction Allowances Under Federal and Iowa LawFederalIowa Tax YearDollar LimitationReduction LimitationDollar Limitation Reduction Limitation2003$ 100,000$ 400,000$ 100,000$ 400,0002004102,000410,000102,000410,0002005105,000420,000105,000420,0002006108,000430,000108,000430,0002007125,000500,000125,000500,0002008250,000800,000250,000800,0002009250,000800,000133,000530,0002010500,0002,000,000500,0002,000,0002011500,0002,000,000500,0002,000,0002012500,0002,000,000500,0002,000,0002013500,0002,000,000500,0002,000,0002014500,0002,000,000500,0002,000,0002015500,0002,000,000500,0002,000,0002016500,0002,010,00025,000200,0002017510,0002,030,00025,000200,00020181,000,0002,500,00025,000* 200,0002019Indexed amount unknown as of 8/2/18Indexed amount unknown as of 8/2/18100,000400,0002020 and laterIowa limitations are the same as federal* These Iowa limitations for 2018 are applicable to financial institutions subject to the franchise tax, corporations, and entities subject to the corporate income tax. For Iowa limitations applicable to individuals, trusts and estates, and pass-through entities which are not financial institutions or corporations, see rule 701—40.65(422). d. Reduction.Both the federal and the Iowa deductions for section 179 assets are reduced (phased out dollar for dollar) for taxpayers whose total section 179 assets placed in service during a given year cost more than the amount specified (reduction limitation) for that year. Like the deduction limitation, the Iowa and federal reduction limitations are different for certain years. See paragraph 59.24(2)“c” for applicable limitations. e. Amounts in excess of the Iowa limits. (1) Recovering the excess. Due to the differences between the Iowa and federal limitations for certain years, taxpayers may have a federal section 179 deduction that exceeds the amount allowed for Iowa purposes. This excess amount is handled in different ways depending on the source of the deduction. 1. Assets placed in service by the taxpayer or entity reporting the deduction. The cost of any section 179 assets placed in service by the taxpayer in excess of the Iowa limitation for a given year may be recovered through regular depreciation under Section 168 of the Internal Revenue Code, without regard to bonus depreciation under Section 168(k). The Iowa section 179 and depreciation deductions and any basis adjustments resulting from the difference in timing of the recovery between Iowa and federal law are calculated and tracked on forms made available on the department’s website. 2. Special election for assets placed in service by a pass-through entity when the section 179 deduction is claimed by an owner of that pass-through. See subrule 59.24(3) for information on a special election available to certain owners of pass-through entities related to any section 179 deductions passed through from a partnership or other entity that, in the aggregate, exceed the Iowa limitations. (2) Special information for pass-throughs. In the case of pass-through entities, section 179 limitations apply at both the entity level and the owner level. Pass-through entities that are required to file an Iowa return and that actually place section 179 assets in service should follow 59.24(2)“e”(1)“1” to account for any assets for which the total federal section 179 deductions for a given year exceeded the Iowa limitation. Owners of pass-throughs receiving section 179 deductions from one or more pass-throughs that, in the aggregate, exceed the Iowa limitations should follow 59.24(2)“e”(1)“2.” f. Income limitation.The Iowa section 179 deduction for any given year is limited to the taxpayer’s income from active conduct in a trade or business in the same manner that the section 179 deduction is limited for federal purposes. If an allowable Iowa section 179 deduction exceeds the taxpayer’s business income for a given year, any excess allowable Iowa section 179 deduction may be carried forward as described in paragraph 59.24(2)“g.” g. Carryforward.This paragraph applies only to amounts that do not exceed the Iowa section 179 deduction limitations for a given year but do exceed the taxpayer’s business income for that year. As with the federal deduction, allowable Iowa section 179 deductions claimed in a given year that exceed a taxpayer’s business income may be carried forward and claimed in future years. This carryforward, if any, is calculated using only amounts up to the Iowa limit. Any federal section 179 deduction the taxpayer claimed in excess of the Iowa limit is not an Iowa section 179 deduction and therefore is not eligible for the carryforward described in this paragraph. Such amounts must instead be recovered as described in paragraph 59.24(2)“e,” or in subrule 59.24(3) for taxpayers receiving the deduction from one or more pass-through entities and making the special election as described in that subrule. h. Difference in basis.Iowa adjustments for differences between the Iowa and federal section 179 deduction limitations may cause the taxpayer to have a different basis in the same asset for Iowa and federal purposes. Taxpayers are required to use forms made available on the department’s website to calculate and track these differences. 59.24(3) Section 179 deduction received from a pass-through entity. In some cases, a financial institution that receives income from one or more pass-through entities may receive a section 179 deduction in excess of the Iowa deduction limitation listed in paragraph 59.24(2)“c” for a given year. The financial institution may be eligible for a special election with regard to that excess section 179 deduction, as described in this subrule. a. Tax years beginning before January 1, 2019.For tax years beginning before January 1, 2019, the amount of any section 179 deduction received by a financial institution subject to the franchise tax in excess of the Iowa deduction limitation for that year is not eligible for the special election. b. Special election available for tax year 2019.For tax years beginning on or after January 1, 2019, but before January 1, 2020, a financial institution subject to the franchise tax that receives a section 179 deduction from one or more pass-through entities in excess of the Iowa deduction limitation for that tax year may elect to deduct the excess in future years, as described in this subrule. See rule 701—40.65(422) for special rules applicable to individuals and other noncorporate entities, and see rule 701—53.23(422) for special rules applicable to corporations and other entities subject to the corporate income tax. (1) This special election applies only to section 179 deductions passed through to the financial institution by one or more other entities. (2) If the total Iowa section 179 deduction passed through to the financial institution exceeds the federal section 179 deduction limitation for that year, the financial institution may only use the amount up to the federal limitation when calculating the deduction under this election. Any amount in excess of the federal limitation shall not be deducted for Iowa purposes. c. Section 179 assets of a financial institution.A financial institution that makes this special election may not claim an Iowa section 179 deduction for any assets the financial institution placed in service during the same year but must instead depreciate such assets using the modified accelerated cost recovery system (MACRS) without regard to bonus depreciation under Section 168(k) of the Internal Revenue Code. To the extent the financial institution claimed a federal section 179 deduction on those assets, the Iowa depreciation deductions and any basis adjustments resulting from the difference in timing of the recovery between Iowa law and federal law are calculated and tracked on forms made available on the department’s website. d. Calculating the special election.A financial institution that elects to take advantage of the special election must first add together all section 179 deductions which the financial institution received from all relevant pass-through entities. The financial institution must claim an aggregate Iowa section 179 deduction equal to the Iowa limit for the tax year. This amount must be subtracted from the total. Whatever remains is the amount the financial institution will be permitted to deduct (special election deduction) in future years. e. Special election deduction. (1) Calculation. This remaining amount from paragraph 59.24(3)“d” must be separated into five equal shares. (2) Claiming the special election deduction. The financial institution may deduct one of the five shares in each of the next five years. The dollar limitations and reduction limitations on section 179 deductions do not apply to special deduction amounts allowed over the five-year period under this paragraph. (3) Excess special deduction. The special election deduction for a given year is limited to the taxpayer’s business income for that year. Any excess may be carried forward to future years. Any amounts carried forward under this subparagraph shall be added to, and treated in the same manner as, regular Iowa section 179 deduction carryforwards as described in paragraph 59.24(2)“g.” f. Basis.The financial institution’s basis in the pass-through entity assets is adjusted by the full amount of the section 179 deduction passed through in the year that the section 179 deduction is received and is therefore the same for both Iowa and federal purposes. g. Later tax years.For tax years beginning on or after January 1, 2020, Iowa fully conforms to the federal section 179 deduction and special Iowa treatment for excess section 179 deductions received from pass-throughs is not available. This rule is intended to implement Iowa Code section 422.35 as amended by 2018 Iowa Acts, Senate File 2417.ARC 4025CRevenue Department[701]Notice of Intended ActionProposing rule making related to research activities credit for individual and corporate income tax 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 52, “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 421.17.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 15.335, 422.10 and 422.33 as amended by 2018 Iowa Acts, Senate File 2417.Purpose and Summary This proposed rule making amends the Department’s rules relating to the research activities credit (RAC) for both individual and corporate income tax. 2018 Iowa Acts, Senate File 2417, amends the corresponding Iowa Code sections. This rule making reflects those legislative changes and also removes unnecessary or outdated language from the rules. The Department sought input from a variety of stakeholders and incorporated several suggestions into these amendments and will continue to look for ways to incorporate feedback submitted either in writing or during the public hearing.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. The statutory change underlying this rule making was estimated in the Legislative Services Agency’s Fiscal Note for 2018 Iowa Acts, Senate File 2417, to increase General Fund revenues by $4.5 million in FY 2019, $7.2 million in FY 2020, $7.5 million in FY 2021, $7.8 million in FY 2022, $8.1 million in FY 2023, and $8.4 million in FY 2024. 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 October 17, 2018. Comments should be directed to: Tim Reilly Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.725.2294 Email: tim.reilly@iowa.govPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: October 17, 2018 10 to 11 a.m. Auditorium Wallace State Office Building Des Moines, Iowa Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:
ITEM 1. Amend rule 701—42.11(15,422) as follows:701—42.11(15,422) Research activities credit. Effective for tax years beginning on or after January 1, 1985, taxpayers are allowed a credit equal to 6½ percent of the state’s apportioned share of qualified expenditures for increasing research activities. Effective for tax years beginning on or after January 1, 1991, the Iowa research activities credit will be computed on the basis of the qualifying expenditures for increasing research activities as allowable under Section 41 of the Internal Revenue Code in effect on January 1, 1999. The state’s apportioned share of the qualifying expenditures for increasing research activities is a percent equal to the ratio of qualified research expenditures in Iowa to the total qualified research expenditures. The Iowa research activities credit is made permanent for tax years beginning on or after January 1, 1991, even though there may no longer be a research activities credit for federal income tax purposes.The taxes imposed on individual income shall be reduced by a state tax credit for increasing research activities in this state. For individual income tax, the requirements of the research activities credit are described in Iowa Code section 422.10. This rule explains terms not defined in the statute and procedures for claiming the credit. 42.11(1) Qualified expenditures in Iowa are: a. Wages for qualified research services performed in Iowa. b. Cost of supplies used in conducting qualified research in Iowa. c. Rental or lease cost of personal property used in Iowa in conducting qualified research. Where personal property is used both within and without Iowa in conducting qualified research, the rental or lease cost must be prorated between Iowa and non-Iowa use by the ratio of days used in Iowa to total days used both within and without Iowa. d. Sixty-five percent of contract expenses paid by a corporation to a qualified organization for basic research performed in Iowa. 42.11(2) Total qualified expenditures are: a. Wages paid for qualified research services performed everywhere. b. Cost of supplies used in conducting qualified research everywhere. c. Rental or lease cost of personal property used in conducting qualified research everywhere. d. Sixty-five percent of contract expenses paid by a corporation to a qualified organization for basic research performed everywhere.“Qualifying expenditures for increasing research activities” is the smallest of the amount by which the qualified research expenses for the taxable year exceed the base period research expenses or 50 percent of the qualified research expenses for the taxable year.A taxpayer may claim on the taxpayer’s individual income tax return the pro rata share of the credit for qualifying research expenditures incurred in Iowa by a partnership, subchapter S corporation, or estate or trust. The portion of the credit claimed by the individual must be in the same ratio as the individual’s pro rata share of the earnings of the partnership, subchapter S corporation, or estate or trust.Any research credit in excess of the individual’s tax liability, less the nonrefundable credits authorized in Iowa Code chapter 422, division II, may be refunded to the taxpayer or may be credited to the estimated tax of the taxpayer for the following year. 42.11(1) Definitions. "Accountant" means a person authorized under Iowa Code chapter 542 to engage in the practice of public accounting in Iowa as defined in Iowa Code section 542.3(23) or authorized to engage in such practice in another state under a similar law of another state. "Architect" means a person licensed under Iowa Code chapter 544A or a similar law of another state. "Aviation and aerospace" means the design, development or production of aircraft, rockets, missiles, spacecraft and other machinery and equipment that operate in aerospace. "Collection agency" means a person primarily engaged in the business of collecting debt, including but not limited to consumer debt collection subject to the provisions of the federal Fair Debt Collections Practices Act in 15 U.S.C. §1692 et seq., the Iowa debt collection practices Act in Iowa Code sections 537.7101 through 537.7103, or other similar state law. "Finance or investment company" means a person primarily engaged in finance or investment activities broadly consisting of the holding, depositing, or management of a customer’s money or assets for investment purposes, or the provision of loans or other similar financing or credit to customers. “Finance or investment company” includes but is not limited to a person organized or licensed under Iowa Code chapter 524, 533, or 533D or other similar state or federal law, or an investment company as defined in 15 U.S.C. §80a-3. "Life sciences" means the sciences concerned with the study of living organisms, including agriscience, biology, botany, zoology, microbiology, physiology, biochemistry, and related subjects. "Manufacturing" means the same as defined in 2018 Iowa Acts, Senate File 2417, section 182. "Publisher" means a person whose primary business is the publishing of books, periodicals, newspapers, music, or other works for sale in any format. "Real estate company" means a person licensed under Iowa Code chapter 543B or otherwise primarily engaged in acts constituting dealing in real estate as described in Iowa Code section 543B.6. "Retailer" means a person that primarily engages in sales of personal property as defined in 2018 Iowa Acts, Senate File 2417, section 158, or services directly to an ultimate consumer. A business that primarily makes sales for resale is not a retailer. "Software engineering" means the detailed study of the design, development, operation, and maintenance of software. "Transportation company" means a person whose primary business is the transportation of persons or property from one place to another. "Wholesaler" means a person that primarily engages in buying large quantities of goods and reselling them in smaller quantities to retailers or other merchants who in turn sell those goods to the ultimate consumer. 42.11(2) Requirement that the business claim and be allowed the federal credit. To claim this credit, a taxpayer’s business must claim and be allowed a research credit for such qualified research expenses under Section 41 of the Internal Revenue Code for the same taxable year as the taxpayer’s business is claiming the credit. a. Being “allowed” the federal credit.For purposes of this subrule, a federal credit is “allowed” if the taxpayer meets all requirements to claim the credit under Section 41 of the Internal Revenue Code and any applicable federal regulation and Internal Revenue Service guidance and such credit has not been disallowed by the Internal Revenue Service. b. Applicability of requirement to pass-throughs.If the individual received the Iowa credit through a pass-through entity, the pass-through entity that conducted the research must have claimed and been allowed the federal credit in order for the individual to claim the Iowa credit. c. Impact of federal audit.If the Internal Revenue Service audits or otherwise reviews the return and disallows the credit, the taxpayer shall file an amended Iowa return along with supporting schedules, including an amended federal return or a copy of the federal revenue agent’s report and notification of final federal adjustments, to add back the Iowa credit to the extent not previously disallowed by the department. d. Authority of the department.Nothing in this subrule shall limit the department’s authority to review, examine, audit, or otherwise challenge an Iowa tax credit claim under Iowa Code section 422.10, regardless of inaction, a settlement, or a determination by the Internal Revenue Service under Section 41 of the Internal Revenue Code. 42.11(3) Research activities credit for tax years beginning in 2000. Effective for tax years beginning on or after January 1, 2000, the taxes imposed for individual income tax purposes will be reduced by a tax credit for increasing research activities in this state. a. The credit equals the sum of the following: (1) Six and one-half percent of the excess of qualified research expenses during the tax year over the base amount for the tax year based upon the state’s apportioned share of the qualifying expenditures for increasing research activities. (2) Six and one-half percent of the basic research payments determined under Section 41(e)(1)(A) of the Internal Revenue Code during the tax year based upon the state’s apportioned share of the qualifying expenditures for increasing research activities. The state’s apportioned share of the qualifying expenditures for increasing research activities is a percent equal to the ratio of qualified research expenditures in this state to total qualified research activities. b. In lieu of the credit computed under paragraph 42.11(3)“a,” a taxpayer may elect to compute the credit amount for qualified research expenses incurred in this state in a manner consistent with the alternative incremental credit described in Section 41(c)(4) of the Internal Revenue Code for tax years beginning on or after January 1, 2000, but beginning before January 1, 2010. The taxpayer may make this election regardless of the method used by the taxpayer on the taxpayer’s federal income tax return. The election made under this paragraph is for the tax year, and the taxpayer may use another method or this same method for any subsequent tax year. For purposes of this alternative incremental research credit computation, the credit percentages applicable to qualified research expenses described in clauses (i), (ii), and (iii) of Section 41(c)(4)(A) of the Internal Revenue Code are 1.65 percent, 2.20 percent, and 2.75 percent, respectively. c. In lieu of the credit computed under paragraph 42.11(3)“a,” a taxpayer may elect to compute the credit amount for qualified research expenses incurred in this state in a manner consistent with the alternative simplified credit described in Section 41(c)(5) of the Internal Revenue Code for tax years beginning on or after January 1, 2010. The taxpayer may make this election regardless of the method used by the taxpayer on the taxpayer’s federal income tax return. The election made under this paragraph is for the tax year, and the taxpayer may use another method or this same method for any subsequent tax year.For purposes of this alternative simplified research credit computation, the credit percentages applicable to qualified research expenses described in Section 41(c)(5)(A) and clause (ii) of Section 41(c)(5)(B) of the Internal Revenue Code are 4.55 percent and 1.95 percent, respectively. d. For purposes of this subrule, the terms “base amount,” “basic research payment,” and “qualified research expense” mean the same as defined for the federal credit for increasing research activities under Section 41 of the Internal Revenue Code, except that, for purposes of the alternative incremental credit described in paragraph 42.11(3)“b” and the alternative simplified credit described in paragraph 42.11(3)“c,” such amounts are limited to research activities conducted within this state. For purposes of this subrule, “Internal Revenue Code” means the Internal Revenue Code in effect on January 1, 2014. e. An individual may claim a research activities credit incurred by a partnership, S corporation, limited liability company, estate, or trust electing to have the income of the business entity taxed to the individual. The amount claimed by an individual from the business entity shall be based upon the pro rata share of the individual’s earnings from a partnership, S corporation, estate or trust. Any research credit in excess of the individual’s tax liability, less the nonrefundable credits authorized in Iowa Code chapter 422, division II, may be refunded to the individual or may be credited to the individual’s tax liability for the following tax year. f. An eligible business approved under the new jobs and income program prior to July 1, 2005, is eligible for an additional research activities credit as described in 701—subrule 52.7(4). An eligible business approved under the enterprise zone program is eligible for an additional research activities credit as described in 701—subrules 52.7(5) and 52.7(6). g. Tax years ending on or after July 1, 2005, but before July 1, 2009. For eligible businesses approved under the enterprise zone program and the high quality job creation program, research activities allowable for the Iowa research activities credit include expenses related to the development and deployment of innovative renewable energy generation components manufactured or assembled in Iowa. These expenses are not eligible for the federal credit for increasing research activities. These innovative renewable energy generation components do not include components with more than 200 megawatts in installed effective nameplate capacity. The research activities credit related to renewable energy generation components under the enterprise zone program and the high quality job creation program shall not exceed $1 million in the aggregate.These expenses are available only for the additional research activities credit set forth in subrule 42.11(3), paragraph “f,” for businesses in enterprise zones and the additional research activities credit set forth in subrule 42.29(1) for businesses approved under the high quality job creation program. These expenses are not available for the research activities credit set forth in subrule 42.11(3), paragraphs “a,” “b” and “c.” h. Tax years ending on or after July 1, 2009. For eligible businesses approved under the enterprise zone program prior to July 1, 2014, research activities allowable for the Iowa research activities credit include expenses related to the development and deployment of innovative renewable energy generation components manufactured or assembled in Iowa; such expenses related to the development and deployment of innovative renewable energy generation components are not eligible for the federal credit for increasing research activities. The enterprise zone program was repealed on July 1, 2014. However, any research activities credit earned by businesses approved under the enterprise zone program prior to July 1, 2014, remains valid and can be claimed on tax returns filed after July 1, 2014. (1) For purposes of this paragraph, innovative renewable energy generation components do not include components with more than 200 megawatts in installed effective nameplate capacity. (2) The research activities credit related to renewable energy generation components under the enterprise zone program and the high quality jobs program described in subrule 42.42(1) shall not exceed $2 million for the fiscal year ending June 30, 2010, and $1 million for the fiscal year ending June 30, 2011. (3) These expenses related to the development and deployment of innovative renewable energy generation components are applicable only to the additional research activities credit set forth in subrule 42.11(3), paragraph “f,” for businesses in enterprise zones and the additional research activities credit set forth in subrule 42.42(1) for businesses approved under the high quality jobs program, and are not applicable to the research activities credit set forth in subrule 42.11(3), paragraphs “a,” “b” and “c.” 42.11(4) Reporting of research activities credit claims. Beginning with research activities credit claims filed on or after July 1, 2009, the department shall issue an annual report to the general assembly of all research activities credit claims in excess of $500,000. The report, which is due by February 15 of each year, will contain the name of each claimant and the amount of the research activities credit for all claims filed during the previous calendar year in excess of $500,000. 42.11(3) Calculating the credit. For information on how the credit is calculated, see Iowa Code section 422.10. 42.11(4) Claiming the tax credit. a. Forms.The credit must be claimed on the forms provided on the department’s website and must include all information required by the forms. b. Allocation to the individual owners of an entity or beneficiaries of an estate or trust.An individual may claim a research activities credit incurred by a partnership, S corporation, limited liability company, estate, or trust electing to have the income of the business entity taxed to the individual. The amount claimed by an individual from the business entity shall be based upon the pro rata share of the individual’s earnings from a partnership, S corporation, estate or trust. c. Refundability.Any research credit in excess of the individual’s tax liability, less the nonrefundable credits authorized in Iowa Code chapter 422, division II, may be refunded to the individual or may be credited to the individual’s tax liability for the following tax year. d. Transferability.Tax credit certificates shall not be transferred to any other person. e. Enterprise zone claimants.The enterprise zone program was repealed on July 1, 2014. However, any supplemental research activities credit earned by businesses pursuant to Iowa Code section 15.335 and approved under the enterprise zone program prior to July 1, 2014, remains valid and can be claimed on tax returns filed after July 1, 2014. This rule is intended to implement Iowa Code sections 15.335 and 422.10 as amended by 2014 Iowa Acts, House File 24352018 Iowa Acts, Senate File 2417. ITEM 2. Amend rule 701—52.7(422) as follows:701—52.7(422) Research activities credit. Effective for tax years beginning on or after January 1, 1985, taxpayers are allowed a tax credit equal to 6.5 percent of the state’s apportioned share of qualifying expenditures for increasing research activities. For purposes of this credit, “qualifying expenditures” means the qualifying expenditures for increasing research activities as defined for purposes of the federal credit for increasing research activities computed under Section 41 of the Internal Revenue Code. For tax years beginning on or after January 1, 1991, “qualifying expenditures” means the qualifying expenditures for increasing research activities as defined for purposes of the federal credit for increasing research activities computed under Section 41 of the Internal Revenue Code as in effect on January 1, 1998. The Iowa research activities credit is made permanent for tax years beginning on or after January 1, 1991, even though there may no longer be a research activities credit for federal income tax purposes. The “state’s apportioned share of qualifying expenditures for increasing research activities” must be the ratio of the qualified expenditures in Iowa to total qualified expenditures times total qualifying expenditures for increasing research activities.The taxes imposed on corporate income shall be reduced by a state tax credit for increasing research activities in this state. For corporate income tax, the requirements of the research activities credit are described in Iowa Code section 422.33. This rule explains terms not defined in the statute and procedures for claiming the credit. 52.7(1) Qualified expenditures in Iowa are: a. Wages for qualified research services performed in Iowa. b. Cost of supplies used in conducting qualified research in Iowa. c. Rental or lease cost of personal property used in Iowa in conducting qualified research. Where personal property is used both within and without Iowa in conducting qualified research, the rental or lease cost must be prorated between Iowa and non-Iowa use by the ratio of days used in Iowa to total days used both within and without Iowa. d. Sixty-five percent of contract expenses paid by a corporation to a qualified organization for basic research performed in Iowa. 52.7(2) Total qualified expenditures are: a. Wages paid for qualified research services performed everywhere. b. Cost of supplies used in conducting qualified research everywhere. c. Rental or lease cost of personal property used in conducting qualified research everywhere. d. Sixty-five percent of contract expenses paid by a corporation to a qualified organization for basic research performed everywhere.Qualifying expenditures for increasing research activities is the smallest of the amount by which the qualified research expenses for the taxable year exceed the base period research expenses or 50 percent of the qualified research expenses for the taxable year.A shareholder in an S corporation may claim the pro rata share of the Iowa credit for increasing research expenditures on the shareholder’s individual income tax return. The S corporation must provide each shareholder with a schedule showing the computation of the corporation’s Iowa credit for increasing research expenditures and the shareholder’s pro rata share. The shareholder’s pro rata share of the Iowa credit for increasing research activities must be in the same ratio as the shareholder’s pro rata share in the earnings of the S corporation.Any research credit in excess of the corporation’s tax liability less the credits authorized in Iowa Code sections 422.33, 422.91 and 422.111 may be refunded to the taxpayer or credited to the estimated tax of the taxpayer for the following year. 52.7(3) Research activities credit for tax years beginning in 2000. Effective for tax years beginning on or after January 1, 2000, the taxes imposed for corporate income tax purposes will be reduced by a tax credit for increasing research activities. a. The credit equals the sum of the following: (1) Six and one-half percent of the excess of qualified research expenses during the tax year over the base amount for the tax year based upon the state’s apportioned share of the qualifying expenditures for increasing research activities. (2) Six and one-half percent of the basic research payments determined under Section 41(e)(1)(A) of the Internal Revenue Code during the tax year based upon the state’s apportioned share of the qualifying expenditures for increasing research activities.The state’s apportioned share of the qualifying expenditures for increasing research activities is a percent equal to the ratio of qualified research expenditures in this state to total qualified research expenditures. b. In lieu of the credit computed under paragraph 52.7(3)“a,” a taxpayer may elect to compute the credit amount for qualified research expenses incurred in this state in a manner consistent with the alternative incremental credit described in Section 41(c)(4) of the Internal Revenue Code for tax years beginning on or after January 1, 2000, but beginning before January 1, 2010. The taxpayer may make this election regardless of the method used by the taxpayer on the taxpayer’s federal income tax return. The election made under this paragraph is for the tax year and the taxpayer may use another method or this same method for any subsequent tax year.For purposes of this alternative incremental research credit computation, the credit percentages applicable to qualified research expenses described in clauses (i), (ii), and (iii) of Section 41(c)(4)(A) of the Internal Revenue Code are 1.65 percent, 2.20 percent, and 2.75 percent, respectively. c. In lieu of the credit computed under paragraph 52.7(3)“a,” a taxpayer may elect to compute the credit amount for qualified research expenses incurred in this state in a manner consistent with the alternative simplified credit described in Section 41(c)(5) of the Internal Revenue Code for tax years beginning on or after January 1, 2010. The taxpayer may make this election regardless of the method used by the taxpayer on the taxpayer’s federal income tax return. The election made under this paragraph is for the tax year, and the taxpayer may use another method or this same method for any subsequent tax year.For purposes of this alternative simplified research credit computation, the credit percentages applicable to qualified research expenses described in Section 41(c)(5)(A) and clause (ii) of Section 41(c)(5)(B) of the Internal Revenue Code are 4.55 percent and 1.95 percent, respectively. d. For purposes of this subrule, the terms “base amount,” “basic research payment,” and “qualified research expense” mean the same as defined for the federal credit for increasing research activities under Section 41 of the Internal Revenue Code, except that, for purposes of the alternative incremental credit described in paragraph 52.7(3)“b” and the alternative simplified credit described in paragraph 52.7(3)“c,” such amounts are limited to research activities conducted within this state. For purposes of this subrule, “Internal Revenue Code” means the Internal Revenue Code in effect on January 1, 2014. e. A shareholder in an S corporation may claim the pro rata share of the Iowa credit for increasing research activities on the shareholder’s individual return. The S corporation must provide each shareholder with a schedule showing the computation of the corporation’s Iowa credit for increasing research activities and the shareholder’s pro rata share. The shareholder’s pro rata share of the Iowa credit for increasing research activities must be in the same ratio as the shareholder’s pro rata share in the earnings of the S corporation.Any research credit in excess of the corporation’s tax liability less the credits authorized in Iowa Code sections 422.33, 422.91 and 422.111 may be refunded to the taxpayer or credited to the estimated tax of the corporation for the following year. 52.7(1) Definitions. "Accountant" means a person authorized under Iowa Code chapter 542 to engage in the practice of public accounting in Iowa as defined in Iowa Code section 542.3(23) or authorized to engage in such practice in another state under a similar law of another state. "Architect" means a person licensed under Iowa Code chapter 544A or a similar law of another state. "Aviation and aerospace" means the design, development or production of aircraft, rockets, missiles, spacecraft and other machinery and equipment that operate in aerospace. "Collection agency" means a person primarily engaged in the business of collecting debt, including but not limited to consumer debt collection subject to the provisions of the federal Fair Debt Collections Practices Act in 15 U.S.C. §1692 et seq., the Iowa debt collection practices Act in Iowa Code sections 537.7101 through 537.7103, or other similar state law. "Finance or investment company" means a person primarily engaged in finance or investment activities broadly consisting of the holding, depositing, or management of a customer’s money or assets for investment purposes, or the provision of loans or other similar financing or credit to customers. “Finance or investment company” includes but is not limited to a person organized or licensed under Iowa Code chapter 524, 533, or 533D or other similar state or federal law, or an investment company as defined in 15 U.S.C. §80a-3. "Life sciences" means the sciences concerned with the study of living organisms, including agriscience, biology, botany, zoology, microbiology, physiology, biochemistry, and related subjects. "Manufacturing" means the same as defined in 2018 Iowa Acts, Senate File 2417, section 182. "Publisher" means a person whose primary business is the publishing of books, periodicals, newspapers, music, or other works for sale in any format. "Real estate company" means a person licensed under Iowa Code chapter 543B or otherwise primarily engaged in acts constituting dealing in real estate as described in Iowa Code section 543B.6. "Retailer" means a person that primarily engages in sales of personal property as defined in 2018 Iowa Acts, Senate File 2417, section 158, or services directly to an ultimate consumer. A business that primarily makes sales for resale is not a retailer. "Software engineering" means the detailed study of the design, development, operation, and maintenance of software. "Transportation company" means a person whose primary business is the transportation of persons or property from one place to another. "Wholesaler" means a person that primarily engages in buying large quantities of goods and reselling them in smaller quantities to retailers or other merchants who in turn sell those goods to the ultimate consumer. 52.7(2) Requirement that the business claim and be allowed the federal credit. To claim this credit, a taxpayer’s business must claim and be allowed a research credit for such qualified research expenses under Section 41 of the Internal Revenue Code for the same taxable year as the taxpayer’s business is claiming the credit. a. Being “allowed” the federal credit.For purposes of this subrule, a federal credit is “allowed” if the taxpayer meets all requirements to claim the credit under Section 41 of the Internal Revenue Code and any applicable federal regulation and Internal Revenue Service guidance and such credit has not been disallowed by the Internal Revenue Service. b. Applicability of requirement to pass-throughs.If the individual received the Iowa credit through a pass-through entity, the pass-through entity that conducted the research must have claimed and been allowed the federal credit in order for the individual to claim the Iowa credit. c. Impact of federal audit.If the Internal Revenue Service audits or otherwise reviews the return and disallows the credit, the taxpayer shall file an amended Iowa return along with supporting schedules, including an amended federal return or a copy of the federal revenue agent’s report and notification of final federal adjustments, to add back the Iowa credit to the extent not previously disallowed by the department. d. Authority of the department.Nothing in this subrule shall limit the department’s authority to review, examine, audit, or otherwise challenge an Iowa tax credit claim under Iowa Code section 422.33, regardless of inaction, a settlement, or a determination by the Internal Revenue Service under Section 41 of the Internal Revenue Code. 52.7(3) Calculating the credit. For information on how the credit is calculated, see Iowa Code section 422.33. 52.7(4) Research activities credit for an eligible business.Claiming the tax credit. Effective for tax years beginning on or after January 1, 2000, an eligible business may claim a tax credit for increasing research activities in this state during the period the eligible business is participating in the new jobs and income program with the Iowa department of economic development. An eligible business must meet all the conditions listed under Iowa Code section 15.329, which include requirements to make an investment of $10 million as indexed for inflation and the creation of a minimum of 50 full-time positions. The research credit authorized in this subrule is in addition to the research activities credit described in 701—subrule 42.11(3) or the research credit described in subrule 52.7(3). a. The additional research activities credit for an eligible business is computed under the criteria for computing the research activities credit under 701—subrule 42.11(3) or under subrule 52.7(3), depending on which of those subrules the initial research credit was computed. The same qualified research expenses and basic research expenses apply in computation of the research credit for an eligible business as were applicable in computing the credit in 701—subrule 42.11(3) or 52.7(3). In addition, if the alternative incremental credit method was used to compute the initial research credit under 701—subrule 42.11(3) or 52.7(3), that method would be used to compute the research credit for an eligible business. Therefore, if a taxpayer that met the qualifications of an eligible business had a research activities credit of $200,000 as computed under subrule 52.7(3), the research activities credit for the eligible business would result in an additional credit for the taxpayer of $200,000. a. Forms.The credit must be claimed on the forms provided on the department’s website and must include all information required by the forms. b. Allocation to the individual owners of an entity or beneficiaries of an estate or trust.If the eligible business is a partnership, S corporation, limited liability company, estate or trust where the income from the eligible business is taxed to the individual owners of the business, these individual owners may claim the additional research activities credit allowed to the eligible business. The research credit is allocated to each of the individual owners of the eligible business on the basis of the pro rata share of that individual’s earnings from the eligible business. c. Refundability.Any research credit in excess of the corporation’s tax liability for the taxable year may be refunded to the taxpayer or credited to the corporation’s tax liability for the following year. d. Transferability.Tax credit certificates shall not be transferred to any other person. e. Enterprise zone claimants.The enterprise zone program was repealed on July 1, 2014. Any supplemental research activities credit earned by businesses pursuant to Iowa Code section 15.335 and approved under the enterprise zone program prior to July 1, 2014, remains valid and can be claimed on tax returns filed after July 1, 2014. 52.7(5) Corporate tax research credit for increasing research activities within an enterprise zone. Effective for tax years beginning on or after January 1, 2000, for awards made by the Iowa department of economic development prior to July 1, 2010, the taxes imposed for corporate income tax purposes will be reduced by a tax credit for increasing research activities within an area designated as an enterprise zone. This credit for increasing research activities is in lieu of the research activities credit described in 701—subrule 42.11(3) or the research activities credit described in subrule 52.7(3). For the amount of the credit for increasing research activities within an enterprise zone for awards made by the economic development authority on or after July 1, 2010, see subrule 52.7(6). a. The credit equals the sum of the following: (1) Thirteen percent of the excess of qualified research expenses during the tax year over the base amount for the tax year based upon the state’s apportioned share of the qualifying expenditures for research activities. (2) Thirteen percent of the basic research payments determined under Section 41(e)(1)(A) of the Internal Revenue Code during the tax year based upon the state’s apportioned share of the qualifying expenditures for increasing research activities. The state’s apportioned share of the qualifying expenditures for increasing research activities is a percent equal to the ratio of qualified research expenditures in the enterprise zone to total qualified research expenditures. b. In lieu of the credit computed under paragraph 52.7(5)“a,” a taxpayer may elect to compute the credit amount for qualified research expenses incurred in the enterprise zone in a manner consistent with the alternative incremental credit described in Section 41(c)(4) of the Internal Revenue Code for tax years beginning prior to January 1, 2010. The taxpayer may make this election regardless of the method used by the taxpayer on the taxpayer’s federal income tax return. The election made under this paragraph is for the tax year and the taxpayer may use another method or this same method for any subsequent tax year. For purposes of this alternative research credit computation, the credit percentages applicable to qualified research expenses described in clauses (i), (ii), and (iii) of Section 41(c)(4)(A) of the Internal Revenue Code are 3.30 percent, 4.40 percent, and 5.50 percent, respectively. c. In lieu of the credit computed under paragraph 52.7(5)“a,” a taxpayer may elect to compute the credit amount for qualified research expenses incurred in the enterprise zone in a manner consistent with the alternative simplified credit described in Section 41(c)(5) of the Internal Revenue Code for tax years beginning on or after January 1, 2010. The taxpayer may make this election regardless of the method used by the taxpayer on the taxpayer’s federal income tax return. The election made under this paragraph is for the tax year and the taxpayer may use another method or this same method for any subsequent tax year. For purposes of this alternative research credit computation, the credit percentages applicable to qualified research expenses described in Section 41(c)(5)(A) and clause (ii) of Section 41(c)(5)(B) are 9.10 percent and 3.90 percent, respectively. d. For purposes of this subrule, the terms “base amount,” “basic research payment,” and “qualified research expense” mean the same as defined for the federal credit for increasing research activities under Section 41 of the Internal Revenue Code, except that, for purposes of the alternative incremental credit described in paragraph 52.7(3)“b” and the alternative simplified credit described in paragraph 52.7(3)“c” of this rule, such amounts are limited to research activities conducted within the enterprise zone. For purposes of this rule, “Internal Revenue Code” means the Internal Revenue Code in effect on January 1, 2014. e. Any research credit in excess of the corporation’s tax liability for the taxable year may be refunded to the taxpayer or credited to the corporation’s tax liability for the following year. 52.7(6) Research activities credit for awards made by the economic development authority on or after July 1, 2010, but before July 1, 2014. For eligible businesses approved under the enterprise zone program prior to July 1, 2014, by the economic development authority when an award is made on or after July 1, 2010, but before July 1, 2014, the taxes imposed for corporate income tax purposes will be reduced by a tax credit for increasing research activities within an area designated as an enterprise zone. The enterprise zone program was repealed on July 1, 2014. Any research activities credit earned by businesses approved under the enterprise zone program prior to July 1, 2014, remains valid and can be claimed on tax returns filed after July 1, 2014. This credit for increasing research activities is in lieu of the research activities credit described in 701—subrule 42.11(3) or the research activities credit described in subrule 52.7(3). The amount of the credit depends upon the gross revenues of the eligible business. a. The credit equals the sum of the following for eligible businesses with gross revenues of less than $20 million. (1) Sixteen and one-half percent of the excess of qualified research expenses during the tax year over the base amount for the tax year based upon the state’s apportioned share of the qualifying expenditures for research activities. (2) Sixteen and one-half percent of the basic research payments determined under Section 41(e)(1)(A) of the Internal Revenue Code during the tax year based upon the state’s apportioned share of the qualifying expenditures for increasing research activities. The state’s apportioned share of the qualifying expenditures for increasing research activities is a percentage equal to the ratio of qualified research expenditures in the enterprise zone to total qualified research expenditures. b. The credit equals the sum of the following for eligible businesses with gross revenues of $20 million or more. (1) Nine and one-half percent of the excess of qualified research expenses during the tax year over the base amount for the tax year based upon the state’s apportioned share of the qualifying expenditures for research activities. (2) Nine and one-half percent of the basic research payments determined under Section 41(e)(1)(A) of the Internal Revenue Code during the tax year based upon the state’s apportioned share of the qualifying expenditures for increasing research activities. The state’s apportioned share of the qualifying expenditures for increasing research activities is a percentage equal to the ratio of qualified research expenditures in the enterprise zone to total qualified research expenditures. c. In lieu of the credit computed under paragraphs 52.7(6)“a” and “b,” a taxpayer may elect to compute the credit amount for qualified research expenses incurred in the enterprise zone in a manner consistent with the alternative simplified credit described in Section 41(c)(5) of the Internal Revenue Code. The taxpayer may make this election regardless of the method used by the taxpayer on the taxpayer’s federal income tax return. The election made under this paragraph is for the tax year and the taxpayer may use another method or this same method for any subsequent tax year. For purposes of this alternative research credit computation, the credit percentages applicable to qualified research expenses described in Section 41(c)(5)(A) and clause (ii) of Section 41(c)(5)(B) of the Internal Revenue Code depend upon the gross revenues of the eligible business. (1) The percentages are 7 percent and 3 percent, respectively, for eligible businesses with gross revenues of less than $20 million. (2) The percentages are 2.1 percent and 0.9 percent, respectively, for eligible businesses with gross revenues of $20 million or more. d. For purposes of this subrule, the terms “base amount,” “basic research payment,” and “qualified research expense” mean the same as defined for the federal credit for increasing research activities under Section 41 of the Internal Revenue Code, except that, for purposes of the alternative simplified credit described in paragraph 52.7(3)“c” of this rule, such amounts are limited to research activities conducted within the enterprise zone. For purposes of this rule, “Internal Revenue Code” means the Internal Revenue Code in effect on January 1, 2014. e. Any research credit in excess of the corporation’s tax liability for the taxable year may be refunded to the taxpayer or credited to the corporation’s tax liability for the following year. 52.7(7) Reporting of research activities credit claims. Beginning with research activities credit claims filed on or after July 1, 2009, the department shall issue an annual report to the general assembly of all research activities credit claims in excess of $500,000. The report, which is due by February 15 of each year, will contain the name of each claimant and the amount of the research activities credit for all claims filed during the previous calendar year in excess of $500,000. This rule is intended to implement Iowa Code sections 15.335 and 422.33 as amended by 2014 Iowa Acts, House File 24352018 Iowa Acts, Senate File 2417.ARC 4024CRevenue Department[701]Notice of Intended ActionProposing rule making related to state-imposed and locally imposed hotel and motel taxes and providing an opportunity for public comment
The Revenue Department hereby proposes to amend Chapter 103, “State-Imposed and Locally Imposed Hotel and Motel Taxes—Administration,” rescind Chapter 104, “Hotel and Motel—Filing Returns, Payment of Tax, Penalty, and Interest,” and Chapter 105, “Locally Imposed Hotel and Motel Tax,” and amend Chapter 241, “Excise Taxes Not Governed by the Streamline Sales and Use Tax Agreement,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 421.14.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapter 423A as amended by 2018 Iowa Acts, Senate File 2417.Purpose and Summary Item 1 proposes to consolidate the hotel and motel tax rules into a single chapter and implement changes to the tax made by division XIII of 2018 Iowa Acts, Senate File 2417. Items 2 and 3 propose to eliminate Chapters 104 and 105, respectively, the content of which has been incorporated into Chapter 103. Item 4 proposes to rescind duplicative rules on the hotel and motel tax found in Chapter 241 (rules 701—241.3(423A) to 701—241.5(423A)).Fiscal Impact This rule making has no fiscal impact beyond the impact estimated by the Legislative Services Agency for 2018 Iowa Acts, Senate File 2417. 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 October 17, 2018. Comments should be directed to: Joe Fraioli Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.725.4057 Email: joe.fraioli@iowa.govPublic Hearing If requested, a public hearing at which persons may present their views orally or in writing will be held as follows: October 17, 2018 11 a.m. to 12 noon Auditorium Wallace State Office Building Des Moines, Iowa Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs. The Department reserves the right to cancel the hearing if no timely requests for a public hearing are received.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 701—Chapter 103 as follows: CHAPTER 103STATE-IMPOSED AND LOCALLY IMPOSED HOTEL AND MOTEL TAXES—ADMINISTRATION[Prior to 12/17/86, Revenue Department[730]]701—103.1(423A) Definitions, administration, and imposition. 103.1(1) Incorporation of definitions. Definitions. For the purposes of this chapter and 701—Chapters 104 and 105, unless the context otherwise requires:To the extent it is consistent with Iowa Code chapter 423A and this chapter, all other words and phrases used in this chapter shall mean the same as defined in Iowa Code section 423.1 and rule 701—211.1(423). 103.1(2) Chapter-specific definitions. For purposes of this chapter, unless the context otherwise requires: "Department" means the department of revenue. "Director" means the director of the department of revenue. "Land use district" means a district created under Iowa Code chapter 303, subchapter IV. "Lessor" means any person engaged in the business of renting lodging to users. “Lessor” is synonymous with the word “retailer.” "Locally imposed tax" means the hotel and motel tax levied by Iowa Code section 423A.4. "Lodging" means rooms, apartments, or sleeping quarters in a hotel, motel, inn, public lodging house, rooming house, or manufactured or mobile home which is tangible personal property, or in a tourist court, or in any place where sleeping accommodations are furnished to transient guests for rent, whether with or without meals. "Person" means the same as the term is defined in rule 701—211.1(423). "Renting" "rent" means a transfer of possession or control of lodging for a fixed or indeterminate term for consideration and includes any kind of direct or indirect charge for such lodging or its use. "Retailer" means a person required to collect hotel and motel tax, including but not limited to lodging providers, lodging facilitators, and lodging platforms. "Sales price" means the amount of consideration for renting of lodging and means the same as the term is defined in rule 701—211.1(423). "State-imposed tax" means the hotel and motel tax levied by Iowa Code section 423A.3. "Tax" "hotel and motel tax" means either the state-imposed or locally imposed hotel and motel tax levied by Iowa Code sectionssection 423A.3 andany locally imposed hotel and motel tax levied by Iowa Code section 423A.4, respectively. "User" means a person to whom lodging is rented.All other words and phrases used in this chapter and 701—Chapters 104 and 105 and defined in rule 701—211.1(423) have the meaning set forth in that rule for the purposes of these chapters. 103.1(2) Administration. The department is charged with the administration of the tax, subject to the rules, regulations, and direction of the director. The department is required to administer the tax as nearly as possible in conjunction with the administration of the state sales tax except that portion of the law which implements the streamlined sales and use tax agreement. Therefore, the term “retailer” will be used interchangeably between the two taxes. 103.1(3) Imposition. A state-imposed tax of 5 percent is imposed upon the sales price for the rental of any lodging if the rental occurs in this state. The state-imposed tax shall be collected by any lessor of lodging from the user of that lodging. The lessor shall add the tax to the sales price of the lodging, and the state-imposed tax, when collected, shall be stated as a distinct item, separate and apart from the sales price of the lodging and the local tax imposed, if any, under Iowa Code section 423A.4. 103.1(4) A city, county, or land use district may impose a tax on lodging, at a rate not to exceed 7 percent, which shall be imposed in increments of one or more full percentage points upon the sales price from the renting of lodging. See 701—Chapter 105 for more information on locally imposed hotel and motel tax. This rule is intended to implement Iowa Code sections423A.2, 423A.3, and 423A.4.701—103.2(423A) Statute of limitations, supplemental assessments and refund adjustments. Within three years after a return is filed, the department shall examine it, determine the tax due, and give notice of assessment to the taxpayer. If no return has been filed, the department may determine the tax due and give notice thereof. If such determination is based upon an examination of books, papers, records, or memoranda, such an examination will not include any transactions completed three years or more prior to such examination.Whenever books and records are examined by an employee designated by the director, whether to verify a return or claim for refund or in making an audit, an assessment must be issued within one year from the date of the completion of the examination. If not, the period for which the books and records were examined becomes closed and no assessment can be made. In no case is the one-year period of limitation an extension of or in addition to the three-year period of limitation.The department may, at any time within the period prescribed for assessment or refund adjustment, make a supplemental assessment or refund adjustment whenever it is ascertained that any assessment or refund adjustment is imperfect or incomplete in any respect.If an assessment or refund adjustment is appealed (protested under rule 701—7.8(17A)) and is resolved whether by informal proceedings or by adjudication, the department and the taxpayer are precluded from making a supplemental assessment or refund adjustment concerning the same issue involved in such appeal for the same tax period unless there is a showing of mathematical or clerical error or a showing of fraud or misrepresentation. This rule is intended to implement Iowa Code sections 423.37 and 422.70 and 2005 Iowa Code Supplement sections 423A.3 and 423A.4.701—103.3 701—103.2(423A) Credentials and receiptsAdministration. Employees of the department have official credentials, and the retailer should require proof of the identity of persons claiming to represent the department. No charges shall be made or gratuities of any kind accepted by an employee of the department for assistance given in or out of the office of the department.All employees authorized to collect money are supplied with official receipt forms. When cash is paid to an employee, the retailer should require the employee to issue an official receipt. Such receipt shall show the retailer’s name, address and permit number; the purpose for the payment; and the amount of the payment. The retailer should retain all receipts, and only official receipts for payment will be recognized by the department. 103.2(1) Generally. The department is charged with the administration of the tax, subject to the rules, regulations, and direction of the director. The department is required to administer the tax as nearly as possible in conjunction with the administration of the state sales tax except that portion of the law which implements the streamlined sales and use tax agreement. 103.2(2) Incorporation of 701—Chapter 11. Except as otherwise stated in this chapter, the requirements of 701—Chapter 11 shall apply to retailers required to collect hotel and motel tax in the same manner that those requirements apply to all sellers and retailers making sales subject to state sales tax. This rule is intended to implement Iowa Code sections 422.68(1) and 422.70 and 2005 Iowa Code Supplement sections 423A.3 and 423A.4section 423A.6.701—103.4 701—103.3(423A) Retailers required to keep recordsTax imposition and exemptions. 103.4(1) 103.3(1) Tax imposed. Every retailer shall keep and preserve the following records:A state-imposed tax of 5 percent is imposed upon the sales price for the rental of any lodging if the lodging is located in this state. A locally imposed tax of up to 7 percent is imposed to the extent permitted by Iowa Code section 423A.4. a. A daily record of the amount of all cash and time payments and credit sales from the renting of rooms subject to tax under Iowa Code chapter 423A. b. A record of all deductions and exemptions taken in filing a tax return. 103.4(2) 103.3(2) Exemptions. The records required in this rule must be preserved for a period of three years and open for examination by the department during this period of time.The only exemptions from the hotel and motel tax are those in Iowa Code section 423A.5. The exemptions apply to both the state-imposed tax and the locally imposed tax under Iowa Code chapter 423A. 103.3(3) Retailers performing all or part of their record keeping and retention of books, records, and other sources of information under electronic data interchange process or technology, see 701—subrule 11.4(4). 103.3(4) If a tax liability has been assessed and an appeal is pending to the department, district court or an appellate court, books, papers, records, memoranda or documents specified in this rule that relate to the period covered by the assessment shall be preserved until the final disposition of the appeal. This provision applies equally to parties to the appeal and other retailers who could claim a refund as a result of the resolution of the appeal. 103.3(5) Failure to keep and preserve adequate records shall be grounds for revocation of the state-imposed tax permit. This rule is intended to implement Iowa Code section 423.41 and 2005 Iowa Code Supplement sections 423A.3,and 423A.4, and 423A.5.701—103.5 701—103.4(423A) Audit of recordsFiling returns; payment of tax; penalty and interest. The department shall have the right and duty to examine or cause to be examined the books, papers, records, memoranda or documents of a taxpayer for the purposes of verifying the correctness of a return filed or estimating the tax liability of any retailer. The right to examine records includes the right to examine copies of the retailer’s state and federal income tax returns. When a retailer fails or refuses to produce the records for examination when requested by the department, the director shall have authority to require, by a subpoena, the attendance of the retailer and any other witness whom the department deems necessary or expedient to examine and compel the retailer and witness to produce books, papers, records, memoranda or documents relating in any manner to the tax.The department shall have the obligation to inform the retailer when an examination of the retailer’s books, papers, records, memoranda or documents has been completed and the amount of tax liability, if any, due upon completion of the audit. Tax liability includes the amount of tax, interest, penalty and fees which may be due. 103.4(1) Incorporation of 701—Chapter 12. Except as otherwise stated in this chapter, the requirements of 701—Chapter 12 shall apply to retailers required to collect hotel and motel tax in the same manner that those requirements apply to all sellers and retailers making sales subject to state sales tax. 103.4(2) Quarterly returns only. Retailers required to collect hotel and motel tax must file returns on a quarterly basis; retailers may not file annual returns. 103.4(3) Combined sales/hotel and motel tax return. a. On the quarterly sales tax return, a retailer shall report the gross sales subject to the hotel and motel tax for the entire quarter, listing allowable deductions and calculating tax for the entire quarter. The information required for the computation of the hotel and motel tax liability shall be separate from that required for the computation of the retail sales tax liability and must be stated and computed separately even though total tax liability may be paid with a single remittance. b. The quarterly returns are due on the last day of the month following the end of the calendar quarter during which the tax is collected. If a person is required to collect the hotel and motel tax and file a monthly deposit for retail sales tax purposes, the monthly deposit should not include the hotel and motel tax collected during the period covered by the deposit. 103.4(4) Application of partial payments. a. All payments received with the return will be applied to satisfy state sales tax and hotel and motel tax liabilities, which include penalty and interest. b. Application of partial payments received with the tax return and any subsequent partial payment received for that tax period will be applied based on a ratio formula, unless properly designated by the taxpayer as provided in Iowa Code section 421.60(2)“d.” The denominator in the ratio shall be the total of the hotel and motel tax due and the state sales tax due less any monthly sales tax deposits. The numerators in the ratio formula shall be the amounts of hotel and motel tax due and the net state sales tax due. 600_______×500=$300Hotel and motel tax1,000400_______×500=$200State sales tax1,000 103.4(5) Application of payments upon termination by a land use district. If a land use district terminates its local hotel and motel tax, lodging within the district becomes subject to any local hotel and motel tax imposed by a city or county within the corporate boundaries of that district on the date of termination. If a city or county imposes a local hotel and motel tax within the district, all revenues received from or moneys refunded to lodging within the district after the date on which the land use district terminates its local hotel and motel tax shall be treated as collected from or refunded to lodging in such city or county. If no city or county imposes a local hotel and motel tax within the district, all revenues received from or moneys refunded to lodging within the district at least 180 days after the date on which the land use district terminates its local hotel and motel tax shall be deposited in or withdrawn from the state general fund as described in Iowa Code section 423A.6(1). This rule is intended to implement Iowa Code sections 422.70 and 423.41 and 2005 Iowa Code Supplement sections 423A.3,and 423A.4, and 423A.6.701—103.6 701—103.5(423A) BillingsPermits. 103.6(1) 103.5(1) Notice of adjustmentsIncorporation of 701—Chapter 13. Except as otherwise stated in this chapter, the requirements of 701—Chapter 13 shall apply to retailers required to collect hotel and motel tax in the same manner that those requirements apply to all sellers and retailers making sales subject to state sales tax. a. An employee of the department, designated by the director to examine returns or make audits, who discovers discrepancies in returns or learns that a sales price subject to the tax may not have been listed, in whole or in part, or that no return was filed when one was due, is authorized to notify the person of the discovery by ordinary mail. The notice shall not be termed an assessment. It merely informs the person what amount would be due if the information discovered is correct. b. Right of person upon receipt of notice of adjustment. A person who has received notice of an adjustment in connection with a return may pay the additional amount stated to be due. If payment is made, and the person wishes to contest the matter, the person should then file a claim for refund. However, payment will not be required until a certified assessment has been made (although interest will continue to accrue on any amount of tax which is determined to be due if payment is not made). If no payment is made, the person may discuss with the employee who notified the person of the discrepancy, either in person or through correspondence, all matters of fact and law which the person considers relevant to the situation. This person may also ask for a conference with the department. Documents and records supporting the person’s position may be requested. c. Power of employee to compromise tax claim. Only the director has the power to compromise any tax claims. The power of the employee who notified the person of the discrepancy is limited to the determination of the correct amount of tax. 103.6(2) 103.5(2) Notice of assessmentSales tax permit required. If, after following the procedure outlined in paragraph 103.6(1)“b,” no agreement is reached and the person does not pay the amount determined to be correct within 20 days, a notice of the amount of tax due shall be sent to the person responsible for paying the tax. This notice of assessment shall bear the signature of the director and will be sent by mail.If the notice of assessment is timely protested according to the provisions of rule 701—7.8(17A) and Iowa Code section 423.37, proceedings to collect the tax will not be commenced until the protest is ultimately determined, unless the department has reason to believe that a delay caused by such appeal proceedings will result in an irrevocable loss of tax ultimately found to be due and owing the state of Iowa. The department will consider a protest to be timely if filed no later than 60 days following the date of the assessment notice. See rule 701—7.8(17A). a. There is no separate hotel and motel tax permit; retailers required to collect and remit hotel and motel tax shall obtain an Iowa sales tax permit. b. Any person not in the business of renting rooms to transient guests but that facilitates rentals of lodging at varying locations in Iowa to transient guests may register once under this chapter. A lodging facilitator shall not be required to register under this chapter if the lodging facilitator and its affiliates do not exceed the transaction and sales thresholds in 2018 Iowa Acts, Senate File 2417, section 250. This rule is intended to implement Iowa Code sections 422.70, 423.37, and 423.39,and 2005 Iowa Code Supplement sections 423A.3, and 423A.4.701—103.7 701—103.6(423A) CollectionsSpecial collection and remittance obligations. If determined expedient or advisable to do so, the director may enforce the collection of the tax liability which has been determined to be due. In such action, the attorney general shall appear for the department and have the assistance of the county attorney in the county in which the action is pending.The remedies for the enforcement and collection of the tax are cumulative, and action taken by the department or attorney general shall not be construed to be an election on the part of the state or any of its officers to pursue any remedy to the exclusion of any other remedy. 103.6(1) Obligations of lodging providers. a. Rentals without lodging facilitators or lodging platforms.A lodging provider must collect and remit the hotel and motel tax on the entire sales price of the rental if the transaction does not involve a lodging facilitator or lodging platform. In transactions without lodging facilitators or lodging platforms, only the lodging provider has a hotel and motel tax collection and remittance obligation on the transaction. See example 1C below. b. Rentals involving lodging facilitators.See subrule 103.6(2) for obligations of a lodging provider in rental transactions involving a lodging facilitator. 103.6(2) Obligations of retailers in transactions involving lodging facilitators. Where a user rents lodging through a lodging facilitator, the lodging facilitator shall collect from the user the hotel and motel tax on the entire sales price paid by the user to the lodging facilitator and the lodging provider shall collect from the user the hotel and motel tax on the entire sales price paid by the user to the lodging provider. The remittance obligations of the retailers depend on whether the lodging provider charges the user for facilitating the user’s rental of the lodging. a. Remittance of tax when lodging facilitators do not charge the user a facilitation fee.If the lodging facilitator does not charge the user a facilitation fee, the lodging facilitator shall transmit to the lodging provider the entire hotel and motel tax collected from the user. The lodging provider shall receive the hotel and motel tax transmitted from the lodging facilitator. The lodging provider shall remit that tax, together with any hotel and motel tax collected by the lodging provider directly from the user, to the department. See examples 2D and 2F below. b. Remittance of tax when lodging facilitators charge the user a facilitation fee.If the lodging facilitator charges the user a facilitation fee, the lodging facilitator shall transmit to the lodging provider the portion of the hotel and motel tax that represents the discount room charge incurred from the lodging provider and shall remit to the department the remaining hotel and motel tax, which represents tax on the facilitation fee charged to the user. The lodging provider shall receive the hotel and motel tax transmitted from the lodging facilitator and shall remit that tax, together with any hotel and motel tax collected by the lodging provider directly from the user, to the department. See examples 2C and 2D below. c. Exclusion from the definition of facilitation fee.The commission that a lodging provider pays to a lodging facilitator or lodging platform is not a facilitation fee. d. Examples. 103.6(3) Obligations of lodging platforms. Where a retailer is a lodging platform, the retailer must collect and remit to the department the hotel and motel tax on the entire sales price of the transaction. This rule is intended to implement Iowa Code sections 422.70, 423.37, and 423.39,and 2005 Iowa Code Supplement sections 423A.3, and 423A.4.701—103.8 701—103.7(423A) No property exempt from distress and saleCertification of funds. The provisions of Iowa Code section 422.26 apply with respect to a tax liability determined to be due by the department. The department shall proceed to collect the tax liability after it has become delinquent; and no property of the taxpayer is exempt from the process whereby the tax is collected. 103.7(1) Certification of funds. Within 45 days after the date that the quarterly returns and payments are due, the director will certify to the treasurer of state the amount of locally imposed tax to be transferred from the general fund to the local transient guest tax fund that is to be distributed to each city, county, and land use district that has adopted the tax. Payments received after the date of certification will remain in the general fund until the next quarterly certification. 103.7(2) Revenues credited to local fund. All locally imposed hotel and motel tax revenues received under Iowa Code chapter 423A are to be credited to the local transient guest tax fund. Revenues include all interest and penalties applicable to any locally imposed hotel and motel tax report or remittance, whether resulting from delinquencies or audits. This rule is intended to implement Iowa Code sections 422.26 and 423.42 and 2005 Iowa Code Supplement sections 423A.3 and 423A.4section 423A.7.701—103.9(423A) Information confidential. When requested to do so by any person having a legitimate interest in such information, the department shall, after being presented with sufficient proof of the entire situation, disclose to such person the amount of unpaid taxes due by a taxpayer. Such person shall provide the department with sufficient proof consisting of all relevant facts and the reason or reasons for seeking information as to the amount of unpaid taxes due by the taxpayer. The information sought shall not be disclosed if the department determines that the person requesting information does not have a legitimate interest. The director may also authorize the examination of returns filed by a retailer by (1) other officers of the state of Iowa, (2) tax officers of another state if a reciprocal arrangement exists, or (3) tax officers of the federal government if a reciprocal arrangement exists. The director is also empowered to publish annual statistical reports relating to the operation of the tax. See rule 701—6.3(17A).All other information obtained by employees of the department in the performance of their official duties is confidential as provided by law and cannot be disclosed. This rule is intended to implement Iowa Code section 422.72 and 2005 Iowa Code Supplement sections 423A.3 and 423A.4.701—103.10(423A) Bonding procedure. The director may, when necessary and advisable in order to secure the collection of the tax, require any person subject to the tax to file with the department a bond in an amount which the director may fix, or in lieu of such bond, securities approved by the director in an amount which the director may prescribe.The determination of when and in what amount a bond is required will be determined pursuant to rule 701—11.10(422). The bond required under this rule and rule 701—11.10(422) shall be a single requirement with the amount to be determined with reference to both the potential state-imposed tax (see 701—Chapter 241) and the locally imposed tax liabilities, plus any applicable local option taxes. Whether or not the person required to post the bond files a monthly deposit for state-imposed tax purposes, the basis for determining the locally imposed tax portion of the bond shall be an amount sufficient to cover nine months or three quarters of tax liability. This rule is intended to implement Iowa Code section 423.35 and 2005 Iowa Code Supplement sections 423A.3 and 423A.4.701—103.11(423A) Sales tax. The hotel and motel tax is levied in addition to the state sales tax imposed in Iowa Code chapter 423. Additionally, the director of revenue is required to administer the hotel and motel tax as nearly as possible in conjunction with the administration of the state sales tax law except that portion of the law which implements the streamlined sales and use tax agreement. See 701—Chapters 12 to 14 for details. The computation of the tax shall be based on the sales price of the room excluding the sales tax. This rule is intended to implement 2005 Iowa Code Supplement sections 423A.3, 423A.4, and 423A.6.701—103.12(423A) Judicial review. Judicial review of actions of the director may be sought in accordance with the terms of the Iowa administrative procedure Act in a manner similar to that provided for review of sales tax matter. See 701—Chapter 7 for details. This rule is intended to implement Iowa Code section 423.38 and 2005 Iowa Code Supplement sections 423A.3 and 423A.4.701—103.13(423A) Registration. All persons who are required to collect and remit the locally imposed tax are required to register with the department as a hotel and motel tax collector. This rule is intended to implement 2005 Iowa Code Supplement section 423A.6.701—103.14(423A) Notification. Before the local option hotel and motel tax of a city, county, or land use district can become effective, be revised, or be repealed, 45 days’ notice of such action must be given to the director in writing by mail. This rule is intended to implement Iowa Code section 423A.4.701—103.15(423A) Certification of funds. Within 45 days after the date that the quarterly returns and payments are due, the director will certify to the treasurer of state the amount of locally imposed tax to be transferred from the general fund to the local transient guest tax fund, which is to be distributed to each city, county, and land use district that has adopted the tax. Payments received after the date of certification will remain in the general fund until the next quarterly certification. This rule is intended to implement Iowa Code section 423A.7. ITEM 2. Rescind and reserve 701—Chapter 104. ITEM 3. Rescind and reserve 701—Chapter 105. ITEM 4. Rescind and reserve rules 701—241.3(423A) to 701—241.5(423A).ARC 4009CRevenue Department[701]Notice of Intended ActionProposing rule making related to baseball and softball complex sales tax rebate and providing an opportunity for public comment
The Revenue Department hereby proposes to amend Chapter 235, “Rebate of Iowa Sales Tax Paid,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed 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 423.4 and 2018 Iowa Acts, Senate File 2417.Purpose and Summary This proposed rule making clarifies the process for seeking a rebate of Iowa sales tax that is available to an owner or operator of a baseball and softball complex, in accordance with Iowa Code section 423.4(10).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 October 16, 2018. Comments should be directed to: Tim Reilly Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.725.2294 Email: tim.reilly@iowa.govPublic Hearing No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making action is proposed:
ITEM 1. Amend rule 701—235.2(423) as follows:701—235.2(423) Sanctioned baseballBaseball and softball tournament facility and movie sitecomplex sales tax rebate. Effective July 1, 2012, qualifying 235.2(1) Generally. a. Rebate approval.The economic development authority and the enhance Iowa board are authorized by the general assembly and the governor to oversee the application and award process for the baseball and softball complex sales tax rebate, created in Iowa Code section 15F.207. An entity whose project is reviewed and recommended by the economic development authority and approved by the enhance Iowa board is entitled to rebate of qualifying sales tax in accordance with Iowa Code section 423.4(10) as amended by 2018 Iowa Acts, Senate File 2417, and this rule, not to exceed the amount awarded by the economic development authority. b. Qualifying rebates.Qualifyingrebates of Iowa state sales tax may be made to the owner or operator of a sanctioned baseball and softball tournament facility and movie sitecomplex as defined in this rule for sales occurring on or after January 1, 2014, and ending January 1, 2024the project completion date for a period of ten years or the date the award was made, whichever is later. Qualifying rebates are for state sales tax only. Local option taxes are not subject to rebate under this program. 235.(1) 235.2(2) Definitions. For the purpose of this program, the definitions in Iowa Code section 423.4(10) as amended by 2018 Iowa Acts, Senate File 2417, apply. In addition, the following definitions apply: "Change of control" means any of the following:- Any change in the ownership of the original or any subsequent legal entity that is the owner or operator of the baseball and softball tournament facility and movie site such that more than 51 percent of the equity interests in the legal entity cease to be owned by individuals who are residents of Iowa, an Iowa corporation, or combination of both.
- The original owners of the legal entity that is the owner or operator of the baseball and softball tournament facility and movie site shall collectively cease to own more than 50 percent of the voting equity interests of such legal entity or shall otherwise cease to have effective control of such legal entity.
- The facility is sanctioned as a baseball and softball tournament facility and movie site;
- The sanctioned baseball and softball tournament facility and movie site is located on a maximum of 279 acres of Iowa land;
- The sanctioned baseball and softball tournament facility and movie site is located in a city with a population, as defined by the rules governing this program, of at least 4,000 but not more than 5,500 residents;
- The city in which the sanctioned baseball and softball tournament facility and movie site is located is in a county with a population, as defined by the rules governing this program, of at least 93,000 but not more than 100,000 residents;
- Construction of the sanctioned baseball and softball tournament facility and movie site was commenced on or before July 1, 2013;
- Cost of construction of the sanctioned baseball and softball tournament facility and movie site upon completion is at least $38 million; and
- There has not been a “change of control” as defined in the rules governing this program regarding the legal ownership or operation of the baseball and softball tournament facility and movie site.
Proposing rule making related to raceway facility sales tax rebate and providing an opportunity for public comment
The Revenue Department hereby proposes to amend Chapter 235, “Rebate of Iowa Sales Tax Paid,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed 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 sections 423.2 and 423.4 as amended by 2018 Iowa Acts, Senate File 2407.Purpose and Summary This rule making proposes new rule 701—235.3(423) relating to rebates of Iowa sales and use tax that are available to an owner or operator of a raceway facility that meets certain criteria set forth in Iowa Code section 423.4(11). The proposed rule describes the process by which a qualifying owner or operator may seek rebates and provides additional information about how sales qualify for the rebate. 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 October 16, 2018. Comments should be directed to: Tim Reilly Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.725.2294 Email: tim.reilly@iowa.govPublic Hearing No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making action is proposed:
ITEM 1. Adopt the following new rule 701—235.3(423):701—235.3(423) Raceway facility sales tax rebate. Qualifying rebates of Iowa state sales and use tax may be made to the owner or operator of a raceway facility that meets the requirements of Iowa Code section 423.4(11) as amended by 2018 Iowa Acts, Senate File 2407. The maximum rebate is limited to project costs incurred and paid on or after May 16, 2018, and before January 1, 2025, or $1.8 million, whichever is less. 235.3(1) Definitions. For purposes of this rebate, unless further defined below, the terms used in this rule mean the same as defined in Iowa Code section 423.4(11) as amended by 2018 Iowa Acts, Senate File 2407. "Incurred date" means the date on which the payment for the project cost was made or the performance of the work that gave rise to the payment occurred, whichever is later. 235.3(2) Retailer identification. a. Identification of retailers.Prior to or in conjunction with the filing of its initial rebate request, the owner or operator shall provide the identity of all retailers at the raceway facility that will be collecting sales tax and provide the department with the sales tax permit number for each retailer. During the period in which rebates may be claimed, the owner or operator shall keep the information current. b. Notification to department.The owner or operator shall notify the department within ten days of the termination or start-up of a retailer collecting sales tax at the raceway facility. For purposes of this subrule, termination occurs when the retailer provides notice to the owner or operator that the retailer will no longer collect sales tax at the raceway facility or after one calendar year expires since the retailer collected sales tax at the raceway facility. c. Verification by department.The department shall verify the identity of a retailer collecting sales tax at the raceway facility before rebates are paid for sales made by that retailer. 235.3(3) Project cost report and rebate form and filing requirements. The owner or operator must submit a project cost report and rebate request to the department on the authorized form. The report and rebate form will be made available on the department’s website. A properly completed rebate form shall contain the following. a. Documentation and information required. (1) Invoices for project costs. (2) An explanation of how each cost meets the definition of “project costs.” (3) The date each cost was incurred and the date each cost was paid. b. Additional information.The department may request any other additional information, from any person, necessary to verify the rebate. c. Sworn statement.The department may require a sworn statement regarding the truthfulness and eligibility of the report. d. Filing frequency.The form and supporting documentation must be provided to the department within 90 days of the date the project cost was paid. Generally, this report is filed quarterly with the rebate request form. However, the project cost report may be filed more frequently if necessary to meet the 90-day filing requirement. Project cost reports and rebate forms will not be accepted on or after the date on which $1.8 million in total rebates has been provided, or June 30, 2025, whichever is earlier. 235.3(4) Raceway facility retailer sales report and filing requirements. The owner or operator must submit a retailer sales report to the department on the authorized form. The form will be made available on the department’s website. A properly completed form shall contain the following. a. Who may file the claim.The claim must be filed by the owner or operator. Claims filed under the name of an affiliated entity will be denied. b. Information regarding retailers making sales at the raceway facility.The following information shall be provided: (1) Business name, (2) Responsible party, (3) Federal employer identification number (FEIN), and (4) Sales tax permit number. c. Sales at the raceway facility.Sales occurring at the raceway facility and sales tax collected on those sales must be reported. Only sales by retailers meeting the requirements of paragraph 235.3(4)“b” and Iowa Code section 423.4(11) as amended by 2018 Iowa Acts, Senate File 2407, are eligible for rebate. Only sales occurring on or after January 1, 2015, and before January 1, 2025, are eligible for the rebate. d. Additional information.The department may request any other additional information, from any person, necessary to verify the rebate. e. Sworn statement.The department may require a sworn statement by the retailer and the owner or operator regarding the truthfulness and eligibility of the claim. f. Filing frequency.The forms are due quarterly, on or before the last day of the month following the quarter in which the sales at the raceway facility took place. 235.3(5) Raceway facility retailer sales report for sales occurring on or after January 1, 2015, and before May 16, 2018. a. Sales report required.A comprehensive raceway facility retailer sales report comprising sales occurring at the raceway facility on or after January 1, 2015, and before May 16, 2018, must be filed by the owner or operator by March 30, 2019. b. Report requirements.The report must include a list of retailers that meet the requirements of subrule 235.3(2), all information described in subrule 235.3(4), and any other information requested by the department to calculate the eligible sales that occurred at the raceway facility during that time period. The report shall be in the same or substantially similar format as the quarterly raceway facility retailer sales report required by subrule 235.3(4). 235.3(6) Sourcing of sales. a. Generally.In general, sales are considered to occur at the raceway facility if they occur within the boundaries of the raceway facility portion of the fairgrounds and are sourced to that raceway facility under Iowa Code section 423.15. b. Advance ticket and admission sales.Advance ticket and admissions sales shall be considered occurring at the raceway facility regardless of where the transactions actually occur. Consequently, the state sales tax and any applicable local option tax in effect for the jurisdiction in which the raceway facility is located must be imposed on the sales price of advance ticket and admissions sales. 235.3(7) Local option sales tax. Local option taxes imposed under Iowa Code chapter 423B are not eligible for rebate under this program. This rule is intended to implement Iowa Code sections 423.2(11) and 423.4(11) as amended by 2018 Iowa Acts, Senate File 2407.ARC 4039CInsurance Division[191]Filed Emergency After NoticeRule making related to multiple employer welfare arrangements
The Insurance Division hereby rescinds Chapter 77, “Multiple Employer Welfare Arrangements,” Iowa Administrative Code, and adopts a new Chapter 77 with the same title. Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code sections 505.8 and 507A.4 and 2018 Iowa Acts, Senate File 2349.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 507A.4 and 2018 Iowa Acts, Senate File 2349.Purpose and Summary The adoption of new Chapter 77, which supersedes the previous Chapter 77 relating to multiple employer welfare arrangements, serves two purposes. The first purpose of the new chapter is to comply with 2018 Iowa Acts, Senate File 2349, section 2, which requires the Insurance Commissioner to adopt rules to implement the legislation’s provisions. Senate File 2349 provides, among other things, that an entity that wants to act in Iowa as a multiple employer welfare arrangement (MEWA) must, in addition to meeting the other requirements of Iowa Code chapter 507A, meet certain “membership stability” requirements set forth by the Insurance Commissioner by rule. New Chapter 77 is intended to set forth such membership requirements for entities wishing to establish a self-insured MEWA, by ascertaining that there is a firm foundation for the stability of the underlying organization. Such stability is critical to ensure consumer protection. The second purpose intended by the adoption of new Chapter 77 is to implement the observations related to current Chapter 77 made during the Insurance Division’s five-year review of all of the Division’s administrative rules (under agency identification number 191 in the Iowa Administrative Code). That five-year review was conducted pursuant to Iowa Code section 17A.7(2) and was completed in July 2017. Pursuant to those observations, new Chapter 77 reflects changes to the former chapter for purposes of clarification, updating, and consistency with other Iowa Code and Iowa Administrative Code provisions. The changes made to the content of former Chapter 77 for the purpose of implementing 2018 Iowa Acts, Senate File 2349, section 2, are as follows:
Rule making related to fully insured multiple employer welfare arrangements and fully insured and self-insured association health plans
The Insurance Division hereby amends Chapter 77, “Multiple Employer Welfare Arrangements,” Iowa Administrative Code. Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code sections 505.8 and 507A.4; 2018 Iowa Acts, Senate File 2349; and U.S. Department of Labor, 83 FR 28912.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapter 507A; 2018 Iowa Acts, Senate File 2349; and U.S. Department of Labor, 83 FR 28912.Purpose and Summary The new rules adopted herein serve two purposes, explained below; a third purpose of regulatory clarity is met by including in one chapter both these rules together with the rules in ARC 4039C, IAB 9/26/18, on self-insured multiple employer welfare arrangements. The first purpose of the new rules is to comply with 2018 Iowa Acts, Senate File 2349, section 2, which requires the Insurance Commissioner to adopt rules to implement the legislation’s provisions. Senate File 2349 provides, among other things, that an entity that wants to act in Iowa as a multiple employer welfare arrangement (MEWA) must, in addition to meeting the other requirements of Iowa Code chapter 507A, meet certain “membership stability” requirements set forth by the Insurance Commissioner by rule. The new rules included in this rule making are intended to set forth such membership requirements for entities wishing to establish a fully insured MEWA, by ascertaining that there is a firm foundation for the stability of the underlying organization. Such stability is critical to ensure consumer protection. Concurrently with the adoption of these rules, the Division has promulgated an Adopted and Filed Emergency After Notice rule making (ARC 4039C), which rescinds current Chapter 77 and replaces it with a new Chapter 77 whose rules set forth such membership requirements for entities wishing to establish a self-insured MEWA. During the comment period for the Notice of Intended Action (ARC 3894C, IAB 7/18/18) in which new Chapter 77 was proposed, the Insurance Division received comments from stakeholders who asked about the extent of the application of those new rules to fully insured MEWAs. Accordingly, by making changes to the Noticed rules of ARC 3894C and incorporating those changes in the adopted rules in ARC 4039C, the Division clarified that those rules shall apply only to self-insured MEWAs. In that rule making, together with this rule making (in which the Division clarifies that some of these rules specifically apply only to fully insured MEWAs), the Division addresses the confusion and clarifies the requirements for both types of MEWAs. The second purpose intended by these new rules is to address the U.S. Department of Labor’s rule 83 FR 28912 (DOL rule), issued on June 19, 2018, which establishes criteria for the creation and administration of association health plans (AHPs) and permits the establishment of AHPs in a staggered implementation timeline beginning September 1, 2018. The new DOL rule establishes some criteria under the Employee Retirement Income Security Act (ERISA) (Section 3(5)) that are in addition to criteria already there. The new criteria permit a determination whereby employers may join together in a group or association of employers and whereby, if the criteria are met, the group or association of employers will be permitted to be treated as if they were an employer sponsor of a single multiple employer “employee welfare benefit plan” and “group health plan,” as those terms are defined in Title I of ERISA. The DOL rule establishes a more flexible “commonality of interest” test for the employer members to support the establishment and maintenance of AHPs under ERISA. The DOL rule facilitates the adoption and administration of AHPs and expands access to affordable health coverage. In anticipation of the DOL rule, the Iowa Legislature granted the Insurance Commissioner rule-making authority, including emergency rule-making authority, over such AHPs in 2018 Iowa Acts, Senate File 2349, sections 5 and 7. The rules adopted in this rule making provide a framework for the establishment of both fully insured and self-insured AHPs, as contemplated in the DOL rule. The DOL rule contains a staggered implementation timeline, allowing associations to establish a fully insured AHP beginning September 1, 2018. This rule making is adopted emergency in order to comply with both the requirements of the DOL rule and the authority granted to the Commissioner in 2018 Iowa Acts, Senate File 2349, sections 5 and 7.Reason for Adoption of Rule Making Without Prior Notice and Opportunity for Public Participation Pursuant to Iowa Code section 17A.4(3), the Division finds that notice and public participation are unnecessary or impractical because the statute so provides. In compliance with Iowa Code section 17A.4(3), these rules are filed emergency for two purposes. First, these rules are filed emergency, as the concurrent filing to ARC 4039C, to complete the clarification of how the rules in Chapter 77 apply to both self-insured MEWAs and fully insured MEWAs. Second, these rules are filed emergency to provide guidance for associations to establish AHPs, as permitted by the DOL rule beginning September 1, 2018, while providing consumer protection to Iowa consumers. All of the rules in this rule making fall within the authority of the Commissioner to file emergency rules under 2018 Iowa Acts, Senate File 2349, sections 5, 6 and 7. As part of the federal rule-making process, notice of the proposed rule was provided on February 20, 2018, and public comment was accepted from that date through April 21, 2018. (The comment submitted by the Insurance Division can be found at www.regulations.gov/document?D=CMS-2018-0015-8866.) Delays caused by the notice and public participation requirements of Iowa Code section 17A.4 would be contrary to public interest, and these rules are also published under Notice of Intended Action as ARC 4041C (IAB 9/26/18) to allow for public comment.Reason for Waiver of Normal Effective Date Pursuant to Iowa Code section 17A.5(2)“b”(1)(a) and (b), the Division also finds that the normal effective date of this rule making, 35 days after publication, should be waived and the rule making made effective on September 12, 2018. First, the Commissioner was given authority to adopt emergency rules under 2018 Iowa Acts, Senate File 2349, section 7, which meets the requirement of Iowa Code section 17A.5(2)“b”(1)(a). Second, the rule making confers public benefits, as described in the prior section and further in this paragraph, which meets the requirement of Iowa Code section 17A.5(2)“b”(1)(b). The Division finds that the availability and affordability of health insurance is critical for the greater public interest, and the necessity of ensuring that MEWA and AHP coverage has appropriate consumer protections requires these rules to be immediately implemented.Adoption of Rule Making This rule making was adopted by Doug Ommen, Iowa Insurance Commissioner, on September 6, 2018.Concurrent Publication of Notice of Intended Action In addition to its adoption on an emergency basis, this rule making has been initiated through the normal rule-making process and is published herein under Notice of Intended Action as ARC 4041C to allow for public comment.Fiscal Impact This rule making may have some fiscal impact to the State of Iowa, in that an increase in the number of these plans being sold would increase the amount of premium tax funds collected by the State from insurance companies providing coverage to fully insured MEWAs and fully insured AHPs.Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers The Division’s general waiver provisions of 191—Chapter 4 apply to these rules.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 became effective on September 12, 2018. The following rule-making action is adopted:
ITEM 1. Adopt the following new rules 191—77.4(507A) to 191—77.6(507A):191—77.4(507A) Fully insured multiple employer welfare arrangements. 77.4(1) Certificate of registration. A person shall not establish or maintain a fully insured employee welfare benefit plan that is a fully insured MEWA in this state unless the MEWA obtains and maintains a certificate of registration pursuant to this rule. Such certificate of registration is required for all MEWAs that elect to offer fully insured employee welfare benefit plans to residents of this state whether or not the MEWA is domiciled in the state. 77.4(2) Application for certificate of registration. a. A person wishing to obtain a certificate of registration as a fully insured MEWA pursuant to this chapter shall submit an application for registration to the commissioner. This application shall include the following: (1) A business plan, including a copy of all health coverage contracts or other instruments which the fully insured MEWA applicant proposes to make with or sell to its employer members or its association’s or group’s members, a copy of its health coverage description, and the printed matter to be used in the solicitation of employer members or its association’s or group’s members to purchase the health coverage. (2) Copies of all articles, bylaws, agreements, or other documents or instruments describing the rights and obligations of employers, employees, and beneficiaries with respect to the fully insured MEWA applicant. (3) A current list of all members of the employer group or association sponsoring the fully insured MEWA applicant, a description of the relationship among the employers, a description of how the relationship serves as the basis for the formation of the association or employer group, and a description of how the employer group or association complies with paragraphs 77.4(4)“a” and 77.4(4)“b,” if applicable. (4) A description of the activities of the association or group of employers on behalf of its employer members or its association’s or group’s members other than the sponsorship of the fully insured MEWA applicant, to further demonstrate compliance with 77.4(4)“a,” if applicable. (5) A statement from an authorized representative of the fully insured MEWA applicant that certifies all of the following: 1. The fully insured MEWA applicant shall be administered by an insurer authorized to do the business of insurance in this state or by an authorized third-party administrator that holds a current certificate of registration issued by the commissioner pursuant to Iowa Code section 510.21. 2. The fully insured MEWA applicant is established by a trade, industry, or professional association of employers that has a constitution or bylaws, is organized and maintained in good faith, and meets all membership requirements set forth in subrule 77.4(4). 3. The association or group of employers sponsoring the fully insured MEWA applicant is engaged in substantial activity for its members other than sponsorship of an employee welfare benefit plan. 4. The association is a nonprofit entity organized or authorized to do business under applicable Iowa law. 5. No insurance producers or benefits consultants established, sponsored, administer, or serve as a trustee or on the governing body of the fully insured MEWA applicant. (6) A certificate from an authorized representative of the fully insured MEWA applicant that, to the best of the authorized representative’s knowledge and belief, the fully insured MEWA applicant is in compliance with all applicable provisions of the Employee Retirement Income Security Act of 1974 (29 U.S.C. Section 1001 et seq.). (7) A description of and evidence of a mechanism, approved by the commissioner, to ensure that claims shall be paid in the event a member of the fully insured MEWA applicant is unable to comply with the fully insured MEWA applicant’s contribution requirements. (8) A copy of the most recent Form M-1 filed by the fully insured MEWA applicant with the U.S. Department of Labor, Pension and Welfare Benefits Administration. (9) Biographical affidavits from all members of the board of directors of the fully insured MEWA applicant. The affidavits shall be prepared using the current template for biographical affidavits prescribed by the National Association of Insurance Commissioners. This requirement shall not apply to any MEWA registered with the state prior to January 1, 2018. (10) Any additional information requested by the commissioner. b. The commissioner shall examine the application and any supporting documents submitted by the fully insured MEWA applicant. The commissioner may conduct any investigation that the commissioner may deem necessary and may examine under oath any persons interested in or connected with the fully insured MEWA applicant. c. Within a reasonable time, either the commissioner shall issue to the fully insured MEWA applicant a certificate of registration upon finding that the fully insured MEWA applicant has met all requirements or the commissioner shall deny the application for a certificate of registration and provide notice to the fully insured MEWA applicant setting forth reasons for finding that the fully insured MEWA applicant does not meet all the requirements. An unsuccessful applicant may file a new application for a certificate of registration at any time. 77.4(3) Filing requirements. A fully insured MEWA shall annually, on or before the first day of March, file a certificate of compliance, which shall be signed and dated by the fully insured MEWA’s authorized representative and shall certify all of the following: a. That the fully insured MEWA meets the requirements of this rule and the applicable provisions of Iowa statutes and regulations; and b. That the fully insured MEWA has contracted with an insurer authorized to do the business of insurance in this state or with a third-party administrator that holds a current certificate of registration issued by the commissioner pursuant to Iowa Code section 510.21. 77.4(4) Membership requirements. a. Any employer group or association that intends to form a fully insured MEWA shall have been established for a good-faith purpose other than for the purpose of providing insurance or a health plan. b. The employer group or association that wishes to form a fully insured MEWA shall have been in existence for a period of five years at the time it seeks a certificate of registration as a fully insured MEWA. c. The employer group or association sponsoring the fully insured MEWA shall collect annual dues from its employer members. d. Each employer member that participates in an employee welfare benefit plan offered by the fully insured MEWA may only provide coverage to “eligible employees” as defined in Iowa Code section 513B.2. This requirement only applies to the type of employees permitted to be employed by an employer member of the fully insured MEWA and has no impact on what type of rating must be utilized by the fully insured MEWA. e. Any employer member that participates in an employee welfare benefit plan offered by a fully insured MEWA shall be a member of the employer group or association sponsoring the fully insured MEWA. f. Any employer member that participates in an employee welfare benefit plan offered by a fully insured MEWA shall be required to participate in the fully insured MEWA for a period of not less than five calendar years. Any contract issued by a fully insured MEWA to an employer shall contain reasonable enforcement provisions, including but not limited to reasonable fees or assessments for early departure or for enrollment in another fully insured MEWA during the early-departure period. g. The activities of the fully insured MEWA, including the establishment and maintenance of the employee welfare benefit plan, shall be controlled by the fully insured MEWA’s employer members, either directly or indirectly through the regular nomination and election of directors, trustees, officers, or other similar representatives to control on the employer members’ behalf. h. The membership requirements set forth in paragraphs 77.4(4)“a” through 77.4(4)“g” are not applicable to fully insured MEWAs that received a certificate of registration from the commissioner prior to January 1, 2018. 77.4(5) Policy or contract. Every health benefit plan offered by any insurer to the fully insured MEWA shall comply with the following: a. Notice to purchasers.Every health benefit plan application for coverage and every policy and certificate issued by an insurer to the fully insured MEWA shall contain in 14-point type or, if electronic, of equivalent prominence, on the front page the following notice prominently displayed:NOTICEThis policy is issued by a fully insured multiple employer welfare arrangement (MEWA). MEWAs are not subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your MEWA.Please review the policy closely to understand the covered benefits. b. Guaranteed issue.An insurer offering a health benefit plan to a fully insured MEWA shall guarantee acceptance of all eligible individuals who are part of the employer members or association’s or group’s members of the fully insured MEWA and, if coverage is offered to spouses and dependents, to all of the spouses and dependents. c. Types of benefits that can be offered.Fully insured MEWAs shall offer only medical, dental, optical, surgical, hospital, accident and sickness, prescription, life insurance, or disability benefits. A fully insured MEWA that offers life insurance benefits shall comply with all applicable provisions of the Iowa Code relating to life insurance and life insurance companies. d. Compliance with HIPAA.All contracts or policies issued by an insurer to a fully insured MEWA shall conform to all the provisions of P.L. 104-191, the Health Insurance Portability and Accountability Act of 1996 (HIPAA), including but not limited to guaranteed issue of all products, preexisting condition limitations, renewability, and portability provisions as well as the issuance of prior coverage certificates to enrollees no longer eligible for plan coverage. e. Compliance with state mandates.Every health benefit plan offered by an insurer to a fully insured MEWA shall comply with all applicable state mandates, including Iowa Code chapter 514C, as if the health benefit plan were a group health policy under Iowa Code chapter 509. f. Actuarial value.Every health benefit plan offered by an insurer to a fully insured MEWA must contain a level of coverage equal to or greater than that designed to provide benefits that are actuarially equivalent to 60 percent of the full actuarial value of the benefits provided under the plan. 77.4(6) Trade practices and enforcement. A fully insured MEWA is subject to applicable provisions of Iowa Code chapter 507B, and rules promulgated under that chapter, as if the fully insured MEWA is a “person” as defined in Iowa Code section 507B.2(1). The commissioner may investigate whether a fully insured MEWA or an insurer providing health benefit plans under the direction of a fully insured MEWA has violated this rule and, after a hearing conducted pursuant to Iowa Code chapters 17A and 507B, may enter any orders authorized under Iowa Code chapter 505, 507A, or 507B or any other applicable chapters. 77.4(7) Filing fee. A filing fee of $100 shall accompany each application for a certificate of registration as a fully insured MEWA. 77.4(8) Suspension or revocation of certificate of registration. The commissioner may sanction a fully insured MEWA or suspend or revoke any certificate of registration issued to a fully insured MEWA upon any of the following grounds: a. Failure to comply with any provision of these rules or any applicable provision of the Iowa Code. b. Failure to comply with any lawful order of the commissioner. c. A finding that the application or any necessary forms that have been filed with the commissioner contain fraudulent information or omissions.191—77.5(507A,513D) Self-insured association health plans. 77.5(1) Certificate of registration. A person shall not establish or maintain a self-insured association health plan in this state unless the self-insured AHP obtains and maintains a certificate of registration pursuant to this rule. Such certificate of registration is required for all AHPs that elect to offer self-insured association health plans to residents of this state whether or not the AHP is domiciled in the state. 77.5(2) Application for certificate of registration. a. A person wishing to obtain a certificate of registration as a self-insured AHP pursuant to this chapter shall submit an application and a plan of operation to the commissioner. This application and plan of operation shall include the following: (1) A business plan, including a copy of all health coverage contracts or other instruments which the self-insured AHP applicant proposes to make with or sell to its employer members or its association’s or group’s members, a copy of its health coverage description and the printed matter to be used in the solicitation of employer members or its association’s or group’s members to purchase the health coverage. (2) Copies of all articles, bylaws, agreements, or other documents or instruments describing the rights and obligations of employers, employees, and beneficiaries with respect to the self-insured AHP applicant. (3) A current list of all members of the employer group or association sponsoring the self-insured AHP applicant, a description of the relationship among the employers, a description of how the relationship serves as the basis for the formation of the association or employer group, and a description of how the employer group or association complies with paragraphs 77.5(5)“a” and 77.5(5)“b,” if applicable. (4) A description of the activities of the association or group of employers on behalf of its employer members or its association’s or group’s members other than the sponsorship of the self-insured AHP applicant, to further demonstrate compliance with paragraph 77.5(5)“a,” if applicable. (5) Current financial statements of the self-insured AHP applicant that shall include, at a minimum, balance sheets, an income statement, a cash flow statement and a detailed listing of assets. (6) An actuarial opinion which is prepared, signed, and dated by a person who is a member of the American Academy of Actuaries and which states that appropriate loss and loss adjustment reserves have been established, that adequate premiums are being charged, and that the association is operating in accordance with sound actuarial principles and in conformance with this rule. (7) A statement from an authorized representative of the self-insured AHP applicant that certifies all of the following: 1. The self-insured AHP applicant shall be administered by an insurer authorized to do business in this state or by an authorized third-party administrator that holds a current certificate of registration issued by the commissioner pursuant to Iowa Code section 510.21. 2. The self-insured AHP applicant is established by a trade, industry, or professional association of employers that has a constitution or bylaws, is organized and maintained in good faith, and meets all membership requirements set forth in subrule 77.5(5). 3. The association or group of employers sponsoring the self-insured AHP applicant is engaged in at least one substantial business purpose for its members other than sponsorship of an employee welfare benefit plan. 4. The association is a nonprofit entity organized or authorized to do business under applicable Iowa law. 5. No insurance producers or benefits consultants established, sponsored, administer, or serve as a trustee or on the governing body of the self-insured AHP applicant. (8) A certificate from an authorized representative of the self-insured AHP applicant that, to the best of the authorized representative’s knowledge and belief, the self-insured AHP applicant is in compliance with all applicable provisions of the Employee Retirement Income Security Act of 1974 (29 U.S.C. Section 1001 et seq.). (9) A description of and evidence of a mechanism, approved by the commissioner, to ensure that claims shall be paid in the event a member of the self-insured AHP applicant is unable to comply with the self-insured AHP applicant’s contribution requirements. (10) A copy of the most recent Form M-1 filed by the self-insured AHP applicant with the U.S. Department of Labor, Pension and Welfare Benefits Administration. (11) Biographical affidavits from all members of the board of directors of the self-insured AHP applicant. The affidavits shall be prepared using the current template for biographical affidavits prescribed by the National Association of Insurance Commissioners. (12) Any additional information requested by the commissioner. b. The commissioner shall examine the application, the plan of operation, and any supporting documents submitted by the self-insured AHP applicant. The commissioner may conduct any investigation that the commissioner may deem necessary and may examine under oath any persons interested in or connected with the self-insured AHP applicant. c. Within a reasonable time, either the commissioner shall issue to the self-insured AHP applicant a certificate of registration upon finding that the self-insured AHP applicant has met all requirements or the commissioner shall deny the application for a certificate of registration and provide notice to the self-insured AHP applicant setting forth reasons for finding that the self-insured AHP applicant does not meet all the requirements. An unsuccessful self-insured AHP applicant may file a new application for a certificate of registration at any time. 77.5(3) Financial requirements. a. Surplus. (1) Unless otherwise provided below or pursuant to the discretion of the commissioner, each self-insured AHP shall deposit with an organization or trustee meeting the requirements of rule 191—32.4(508) cash, securities or any combination of these that is acceptable to the commissioner in the amount set forth below. In addition to the requirements set forth below, the commissioner may increase the amount required to be deposited based on the commissioner’s written determination that such an increase is necessary to adequately secure any potential liability of the self-insured AHP to its employer members and enrollees, subject to Iowa Code chapter 17A proceedings. (2) The surplus requirement for a self-insured AHP shall be the greater of: 1. $500,000; or 2. An amount equal to 10 percent of the written premium as of the previous December 31. b. Reserves and stop-loss coverage. (1) A self-insured AHP shall have at all times aggregate excess stop-loss coverage providing the self-insured AHP with coverage with an attachment point which is not greater than 120 percent of actuarially projected losses on a calendar-year basis. (2) A self-insured AHP shall establish and maintain specific stop-loss coverage providing the self-insured AHP with coverage with an attachment point which is not greater than 5 percent of annual expected claims for purposes of this subrule and shall provide for adjustments in the amount of that percentage as may be necessary to carry out the purposes of this subrule as determined by sound actuarial principles. (3) A self-insured AHP shall establish and maintain appropriate loss and loss adjustment reserves determined by sound actuarial principles. (4) Premiums shall be set to fund at least 100 percent of the self-insured AHP’s actuarially projected losses plus all other costs of the self-insured AHP. (5) All coverage obtained pursuant to 77.5(3)“b”(1) and 77.5(3)“b”(2) shall contain a provision allowing for at least 90 days’ notice to the commissioner upon cancellation or nonrenewal of the contract. (6) No contract or policy of per-occurrence or aggregate excess insurance shall be recognized in considering the ability of an applicant to fulfill its financial obligations under this subrule, unless such contract or policy is issued by a company that is: 1. Licensed to transact business in this state; or 2. Authorized to do business in Iowa as an accredited or certified reinsurer. 77.5(4) Filing requirements. A self-insured AHP shall file the following reports with the commissioner: a. Annual report.A self-insured AHP shall annually, on or before the first day of March, file a report which has been verified by at least two of its principal officers and which covers the preceding calendar year. The report shall be on the form designated by the commissioner. The report shall be completed using statutory accounting practices and shall include information required by the commissioner. The commissioner may request additional reports and information from a self-insured AHP as deemed necessary. b. Independent actuarial report.A self-insured AHP shall annually, on or before the first day of March, file an independent actuarial opinion prepared in conformance with this rule. The commissioner may conduct an independent actuarial review of a self-insured AHP in addition to the actuarial opinion required by this rule. The cost of any actuarial review shall be paid by the AHP. c. Certificate of compliance.A self-insured AHP shall annually, on or before the first day of March, file a certificate of compliance, which shall be signed and dated by the appropriate officer representing the self-insured AHP and shall certify all of the following: (1) That the plan meets the requirements of this rule and the applicable provisions of Iowa statutes and regulations. (2) That an independent actuarial opinion that attests to the adequacy of reserves, rates, and the financial condition of the plan has been attached to the certificate of compliance. The actuarial opinion must include, but is not limited to, a brief commentary about the adequacy of the reserves, rates, and other financial condition of the plan, a test of the prior year’s claim reserve, a brief description of how the reserves were calculated, and whether or not the plan is able to cover all reasonably anticipated expenses. The actuarial opinion shall be prepared, signed, and dated by a person who is a member of the American Academy of Actuaries. (3) That a written complaint procedure has been implemented. The certificate of compliance shall also list the number of complaints filed by participants under the written complaint procedure, and the percentage of participants filing written complaints in the prior calendar year. (4) That the self-insured AHP has contracted with an insurer authorized to do the business of insurance in this state or with a third-party administrator that holds a current certificate of registration issued by the commissioner pursuant to Iowa Code section 510.21. d. Quarterly updates.A self-insured AHP formed on or after September 12, 2018, shall provide during the first year after the commissioner issues the self-insured AHP’s certificate of registration a quarterly update comparing projections to actual experience. e. Modifications to plan of operation.A self-insured AHP shall file any modifications to the self-insured AHP’s plan of operation, including but not limited to amendments to articles of incorporation and bylaws. 77.5(5) Membership requirements. a. Any employer group or association that intends to form a self-insured AHP must have at least one substantial business purpose unrelated to offering and providing health coverage or other employee benefits to its employer members and their employees as set forth in 29 CFR Section 2510.3-5(b)(1). b. The employer group or association that wishes to form a self-insured AHP shall have been in existence for a period of five years at the time it seeks a certificate of registration as an AHP. c. The employer group or association sponsoring the self-insured AHP shall collect annual dues from its employer members. d. Each employer member of the group or association participating in the group health plan must be a person acting directly as an employer of at least one employee who is a participant covered under the plan. A working owner of a trade or business without common law employees may qualify as both an employer and employee when such working owner meets the requirements set forth in 29 CFR Section 2510.3-5(e). e. Employer members of a group or association must demonstrate that there is a commonality of interest as defined in 29 CFR Section 2510.3-5(c). f. Any employer member that participates in an employee welfare benefit plan offered by an AHP shall be a member of the employer group or association sponsoring the self-insured AHP. g. Any employer member that participates in an employee welfare benefit plan offered by a self-insured AHP shall be required to participate in the self-insured AHP for a period of not less than five calendar years. Any contract issued by a self-insured AHP to an employer shall contain reasonable enforcement provisions, including but not limited to reasonable fees or assessments for early departure and for enrollment in another self-insured AHP during the early-departure period. h. The activities of the self-insured AHP, including the establishment and maintenance of the employee welfare benefit plan, shall be controlled by the self-insured AHP’s employer members, either directly or indirectly through the regular nomination and election of directors, trustees, officers, or other similar representatives to control on the employer members’ behalf. 77.5(6) Policy or contract. All contracts issued by a self-insured AHP shall comply with the following: a. Notice to purchasers.Every self-insured AHP application for coverage under the health plan and every policy and certificate issued by a self-insured AHP shall contain in 14-point type or, if electronic, of equivalent prominence, on the front page the following notice prominently displayed:NOTICEThis policy is issued by an association health plan (AHP), a type of multiple employee welfare arrangement (MEWA). MEWAs are not subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your AHP MEWA.Please review the policy closely to understand the covered benefits. b. Guaranteed issue.Self-insured AHPs shall offer on a guaranteed-issue basis health coverage to all individuals who qualify as enrollees of the employee welfare benefit plan offered by an employer member participating in the self-insured AHP. Further, if coverage is offered to spouses and dependents, the AHP shall offer on a guaranteed-issue basis health coverage to all of the spouses and dependents. c. Types of benefits that can be offered.Self-insured AHPs shall offer only medical, dental, optical, surgical, hospital, accident and sickness, prescription, life insurance, or disability benefits. A self-insured AHP that offers life insurance benefits shall comply with all applicable provisions of the Iowa Code relating to life insurance and life insurance companies. d. Compliance with HIPAA.All contracts or policies issued by a self-insured AHP shall conform to all the provisions of P.L. 104-191, the Health Insurance Portability and Accountability Act of 1996 (HIPAA), including but not limited to guaranteed issue of all products, preexisting condition limitations, renewability, and portability provisions as well as the issuance of prior coverage certificates to enrollees no longer eligible for plan coverage. e. Compliance with state mandates.The health benefit plan offered by a self-insured AHP shall comply with all applicable state mandates, including Iowa Code chapter 514C, as if such self-insured AHP were offering a group health policy under Iowa Code chapter 509. f. Actuarial value.Every health benefit plan offered by a self-insured AHP must contain a level of coverage equal to or greater than that designed to provide benefits that are actuarially equivalent to 60 percent of the full actuarial value of the benefits provided under the plan. g. Nondiscrimination.The self-insured AHP, and any health coverage offered by the self-insured AHP, must comply with the nondiscrimination provisions set forth in 29 CFR Section 2510.3-5(d)(1)-(5). 77.5(7) Disclosure. The following disclosure shall be made to each employer member of the self-insured AHP:The benefits and coverages described herein are provided through a self-insured trust fund established and funded in full or in part by a group of employers. It is not a licensed insurance company, and it is not protected by a guaranty fund in the event of insolvency. 77.5(8) Filing fee. A filing fee of $100 shall accompany each application for a certificate of registration as a self-insured AHP. 77.5(9) Applicability date. This rule is applicable on January 1, 2019, for any association that is in existence as of June 21, 2018. This rule is applicable on April 1, 2019, for any other employee welfare benefit plan established to be operated as an association health plan sponsored by a group or association of employers as set forth herein. 77.5(10) Agreements and management contracts. Any agreement between the self-insured AHP and any administrator, service company, or other entity shall be made available for review in the office of the commissioner upon request by the commissioner. 77.5(11) Examination. a. Each self-insured AHP shall be subject to examination by the commissioner in accordance with Iowa Code chapter 507, as a “company,” and as if the self-insured AHP is an “insurer,” under the definitions of that chapter. Iowa Code chapter 507 shall govern all aspects of the examination. b. The commissioner may make an examination of a self-insured AHP as often as the commissioner considers it necessary, but not less frequently than once every five years. The expenses of the examination shall be assessed against the self-insured AHP being examined in a manner in which expenses of examinations are assessed against a company under Iowa Code chapter 507. 77.5(12) Trade practices and enforcement. A self-insured AHP is subject Iowa Code chapter 507B, and rules promulgated under that chapter, as if the AHP is a “person” as defined in Iowa Code section 507B.2(1). The commissioner may investigate whether a self-insured AHP has violated this rule and, after a hearing conducted pursuant to Iowa Code chapters 17A and 507B, may enter any orders authorized under Iowa Code chapter 505, 507A, or 507B or any other applicable chapters. 77.5(13) Insolvency. The provisions of Iowa Code chapter 507C shall apply to self-insured AHPs, which shall be considered insurers for purposes of that chapter. However, a self-insured AHP shall not be subject to Iowa Code chapter 508C. 77.5(14) Suspension or revocation of certificate of registration. The commissioner may sanction a self-insured AHP or suspend or revoke any certificate of registration issued to an AHP upon any of the following grounds: a. Failure to comply with any provision of these rules or any applicable provision of the Iowa Code. b. Failure to comply with any lawful order of the commissioner. c. Failure to promptly pay lawful benefit claims. d. Committing an unfair or deceptive act or practice. e. Deterioration of financial condition adversely affecting the self-insured AHP’s ability to pay claims. f. A finding that the application or any necessary forms that have been filed with the commissioner contain fraudulent information or omissions. g. A finding that the self-insured AHP or its administrator has misappropriated, converted, illegally withheld, or refused to pay over upon proper demand any moneys that belong to an employer member, a participant, or a person otherwise entitled thereto and that have been entrusted to the self-insured AHP or its administrator in its fiduciary capacity.191—77.6(507A) Fully insured association health plans. 77.6(1) Certificate of registration. A person shall not establish or maintain a fully insured association health plan in this state unless the group or association of employers obtains and maintains a certificate of registration pursuant to this rule. Such certificate of registration is required for all fully insured association health plans that elect to offer fully insured association health plans to residents of this state whether or not the AHP is domiciled in the state. 77.6(2) Application for certificate of registration. a. A person wishing to obtain a certificate of registration as a fully insured AHP pursuant to this chapter shall submit an application to the commissioner. This application shall include the following: (1) A business plan, including a copy of all health coverage contracts or other instruments which the fully insured AHP applicant proposes to make with or sell to its employer members or its association’s or group’s members, a copy of its health coverage description, and the printed matter to be used in the solicitation of employer members or its association’s or group’s members to purchase the health coverage. (2) Copies of all articles, bylaws, agreements, or other documents or instruments describing the rights and obligations of employers, employees, and beneficiaries with respect to the fully insured AHP applicant. (3) A current list of all members of the employer group or association sponsoring the fully insured AHP applicant, a description of the relationship among the employers, a description of how the relationship serves as the basis for the formation of the association or employer group, and a description of how the employer group or association complies with paragraphs 77.6(4)“a” and 77.6(4)“b,” if applicable. (4) A description of the activities of the association or group of employers on behalf of its employer members or its association’s or group’s members other than the sponsorship of the fully insured AHP applicant, to further demonstrate compliance with paragraph 77.6(4)“a,” if applicable. (5) A statement from an authorized representative of the fully insured AHP applicant that certifies all of the following: 1. The fully insured AHP applicant shall be administered by an insurer authorized to do the business of insurance in this state or by an authorized third-party administrator that holds a current certificate of registration issued by the commissioner pursuant to Iowa Code section 510.21. 2. The fully insured AHP applicant is established by a trade, industry, or professional association of employers that has a constitution or bylaws, is organized and maintained in good faith, and meets all membership requirements set forth in subrule 77.6(4). 3. The association or group of employers sponsoring the fully insured AHP applicant is engaged in at least one substantial business purpose for its members other than sponsorship of an employee welfare benefit plan. 4. The association is a nonprofit entity organized or authorized to do business under applicable Iowa law. 5. No insurance producers or benefits consultants established, sponsored, administer, or serve as a trustee or on the governing body of the fully insured AHP applicant. (6) A certificate from an authorized representative of the fully insured AHP applicant that, to the best of the authorized representative’s knowledge and belief, the fully insured AHP applicant is in compliance with all applicable provisions of the Employee Retirement Income Security Act of 1974 (29 U.S.C. Section 1001 et seq.). (7) A description of and evidence of a mechanism, approved by the commissioner, to ensure that claims shall be paid in the event a member of the fully insured AHP applicant is unable to comply with the fully insured AHP applicant’s contribution requirements. (8) A copy of the most recent Form M-1 filed by the fully insured AHP applicant with the U.S. Department of Labor, Pension and Welfare Benefits Administration. (9) Biographical affidavits from all members of the board of directors of the fully insured AHP applicant. The affidavits shall be prepared using the current template for biographical affidavits prescribed by the National Association of Insurance Commissioners. (10) Any additional information requested by the commissioner. b. The commissioner shall examine the application and any supporting documents submitted by the fully insured AHP applicant. The commissioner may conduct any investigation that the commissioner may deem necessary and may examine under oath any persons interested in or connected with the fully insured AHP applicant. c. Within a reasonable time, either the commissioner shall issue to the fully insured AHP applicant a certificate of registration upon finding that the fully insured AHP applicant has met all requirements or the commissioner shall deny the application for a certificate of registration and provide notice to the fully insured AHP applicant setting forth reasons for finding that the fully insured AHP applicant does not meet all the requirements. An unsuccessful fully insured AHP applicant may file a new application for a certificate of registration at any time. 77.6(3) Filing requirements. A fully insured AHP shall annually, on or before the first day of March, file a certificate of compliance, which shall be signed and dated by the appropriate officer representing the fully insured AHP and shall certify all of the following: a. That the plan meets the requirements of this rule and the applicable provisions of Iowa statutes and regulations. b. That the fully insured AHP has contracted with an insurer authorized to do the business of insurance in this state or with a third-party administrator that holds a current certificate of registration issued by the commissioner pursuant to Iowa Code section 510.21. 77.6(4) Membership requirements. a. Any employer group or association that intends to form a fully insured AHP must have at least one substantial business purpose unrelated to offering and providing health coverage or other employee benefits to its employer members and their employees as set forth in 29 CFR Section 2510.3-5(b)(1). b. The employer group or association that wishes to form a fully insured AHP shall have been in existence for a period of five years at the time it seeks a certificate of registration as a fully insured AHP. c. The employer group or association sponsoring the fully insured AHP shall collect annual dues from its employer members. d. Each employer member of the group or association participating in the association health plan must be a person acting directly as an employer of at least one employee who is a participant covered under the plan. A working owner of a trade or business without common law employees may qualify as both an employer and employee when such working owner meets the requirements set forth in 29 CFR Section 2510.3-5(e). e. Employer members of a group or association must demonstrate that there is a commonality of interest as defined in 29 CFR Section 2510.3-5(c). f. Any employer member that participates in an employee welfare benefit plan offered by a fully insured AHP shall be a member of the employer group or association sponsoring the AHP. g. Any employer member that participates in an employee welfare benefit plan offered by a fully insured AHP shall be required to participate in the fully insured AHP for a period of not less than five calendar years. Any contract issued by a fully insured AHP to an employer shall contain reasonable enforcement provisions, including but not limited to reasonable fees or assessments for early departure and for enrollment in another fully insured AHP during the early-departure period. h. The activities of the fully insured AHP, including the establishment and maintenance of the employee welfare benefit plan, shall be controlled by the fully insured AHP’s employer members, either directly or indirectly through the regular nomination and election of directors, trustees, officers, or other similar representatives to control on the employer members’ behalf. 77.6(5) Policy or contract. Every health benefit plan offered by any insurer to the fully insured AHP shall comply with the following: a. Notice to purchasers.Every health benefit plan application for coverage and every policy and certificate issued by an insurer to a fully insured AHP shall contain in 14-point type or, if electronic, of equivalent prominence, on the front page the following notice prominently displayed:NOTICEThis policy is issued by a fully insured association health plan (AHP), a type of multiple employer welfare arrangement (MEWA). MEWAs are not subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your AHP MEWA.Please review the policy closely to understand the covered benefits. b. Guaranteed issue.An insurer offering a health benefit plan to a fully insured AHP shall guarantee acceptance of all eligible individuals who are part of the employer members or association’s or group’s members of the fully insured AHP and, if coverage is offered to spouses and dependents, to all of the spouses and dependents. c. Types of benefits that can be offered.Fully insured AHPs shall offer only medical, dental, optical, surgical, hospital, accident and sickness, prescription, life insurance, or disability benefits. A fully insured AHP that offers life insurance benefits shall comply with all applicable provisions of the Iowa Code relating to life insurance and life insurance companies. d. Compliance with HIPAA.All contracts or policies issued by a fully insured AHP shall conform to all the provisions of P.L. 104-191, the Health Insurance Portability and Accountability Act of 1996 (HIPAA), including but not limited to guaranteed issue of all products, preexisting condition limitations, renewability, and portability provisions as well as the issuance of prior coverage certificates to enrollees no longer eligible for plan coverage. e. Compliance with state mandates.Every health benefit plan offered by an insurer to a fully insured AHP shall comply with all applicable state mandates, including Iowa Code chapter 514C, as if the health benefit plan were a group health policy under Iowa Code chapter 509. f. Actuarial value.Every health benefit plan offered by an insurer to a fully insured AHP must contain a level of coverage equal to or greater than that designed to provide benefits that are actuarially equivalent to 60 percent of the full actuarial value of the benefits provided under the plan. g. Nondiscrimination.Any health coverage offered by an insurer to the fully insured AHP must comply with the nondiscrimination provisions set forth in 29 CFR Section 2510.3-5(d)(1)-(5). 77.6(6) Filing fee. A filing fee of $100 shall accompany each application for a certificate of registration as a fully insured AHP. 77.6(7) Trade practices and enforcement. A fully insured AHP is subject to applicable provisions of Iowa Code chapter 507B, and rules promulgated under that chapter, as if the AHP is a “person” defined in Iowa Code section 507B.2(1). The commissioner may investigate whether a fully insured AHP or an insurer providing health benefit plans under the direction of a fully insured AHP has violated this rule and, after a hearing conducted pursuant to Iowa Code chapters 17A and 507B, may enter any orders authorized under Iowa Code chapter 505, 507A, or 507B or any other applicable chapters. 77.6(8) Suspension or revocation of certificate of registration. The commissioner may sanction a fully insured AHP or suspend or revoke any certificate of registration issued to a fully insured AHP upon any of the following grounds: a. Failure to comply with any provision of these rules or any applicable provision of the Iowa Code. b. Failure to comply with any lawful order of the commissioner. c. A finding that the application or any necessary forms that have been filed with the commissioner contain fraudulent information or omissions. [Filed Emergency 9/7/18, effective 9/12/18][Published 9/26/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/26/18.ARC 4010CPublic Safety Department[661]Filed Emergency After NoticeRule making related to the statewide sobriety and drug monitoring program
The Department of Public Safety hereby adopts Chapter 159, “Statewide Sobriety and Drug Monitoring Program,” Iowa Administrative Code. Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 901D.4.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapter 901D.Purpose and Summary 2017 Iowa Acts, Senate File 444, division II, [codified as Iowa Code chapter 901D] established the statewide sobriety and drug monitoring program for the purpose of protecting the public health and welfare by reducing the number of people on the highways who operate a motor vehicle while under the influence of alcohol or a controlled substance and by reducing the number of repeat offenders who commit crimes in which the use of alcohol or a controlled substance is a contributing factor in the commission of the crime. The statute requires the Department to establish a statewide sobriety and drug monitoring program that will provide for testing which is available at least twice per day at designated times during the day, seven days per week. The program provides that a court or authorized government entity such as a sheriff’s office or a parole or probation office may require a person who has been charged with, pled guilty to, or been convicted of an eligible offense involving the abuse of drugs or alcohol to be subject to testing to determine whether alcohol or a controlled substance is present in the person’s body. The program will be available to offenders who are required to participate in the program as ordered by a court or a probation or parole officer as a condition of bond, pretrial release, sentence, probation or parole. Breath testing for alcohol must be done at least twice per day as a condition of the program, and immediate sanctions must be effectively applied if alcohol or controlled substance usage is detected. Testing for controlled substances can be done randomly as often as three times per week. The program also requires that in situations where the Department of Transportation requires a person to install an ignition interlock device as a condition of the person’s license to operate noncommercial motor vehicles, a person must be eligible for a temporary restricted license and must install an ignition interlock device along with participating in the 24/7 program, in jurisdictions where the program is available. Finally, the program will allow testing by an approved alternative method, where twice-a-day testing creates a documented hardship, if such methods and devices have been approved by the Commissioner of Public Safety. The statute also requires the Department to promulgate rules to provide for the nature and manner of testing, including the procedures and apparatus used for testing; to establish a fee structure to pay for the costs of the program; to provide for the acceptance of public and private grants and donations to support the program; to establish a stakeholder group to review and recommend changes to the program; and to establish an application process for jurisdictions that want to participate in the program. The statute further requires the Department to provide a data management system to be used by the Department and all participating jurisdictions for the program. The purposes of the program are focused on highway safety, and specifically on offenders who commit an eligible offense involving alcohol or controlled substances and driving a motor vehicle. Research shows that persons who have committed an eligible offense and who then participate in a sobriety monitoring program that requires twice-a-day testing make changes and better decisions about their use of alcohol or controlled substances before driving a motor vehicle, which results in a lower recidivism rate. These changes will also result in safer roads and healthier employees and families. The program implemented by these rules is not designed or intended as a substitute for an appropriate alcohol or drug treatment program or as a substitute for parole or probation supervision.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on February 14, 2018, as ARC 3628C. A public hearing was held on March 6, 2018, at 10 a.m. in the First Floor Public Conference Room 125, Oran Pape State Office Building, Des Moines, Iowa. Members of the public offered comments at the hearing on the noticed rules, and written comments were also received. The comments included recommendations to consider approving additional testing methodologies that research has shown can also help to maintain sobriety and that additional, more flexible approaches should be considered. Based on the comments received from stakeholders and a review of the noticed rule making by other state agencies that will be using the program, changes were made to the rule making to reflect the input and comments received. The substance and major provisions of the rule making are unchanged. The following list outlines the changes made from the Notice: 1. In rule 661—159.10(901D), at the request of the Department of Corrections (DOC), the words “parole or probation office of the Iowa department of corrections” were removed from the definition of “law enforcement agency.” The DOC will not be administering the 24/7 program, although persons under the DOC’s supervision may be required to participate in the program. 2. Language was changed in subrule 159.11(1) so that the testing is available twice per day at times designated by the local law enforcement agency, rather than literally being available 24 hours per day, which would have created staffing problems for the law enforcement agency or third-party provider. This change was also made in rule 661—159.1(901D). 3. In subrule 159.11(1), changes were made to provide that the law enforcement agency is the designated entity to handle the collection of program fees and administer the program account. 4. In subrule 159.11(2), language was added to clarify that the third-party provider will provide testing services but is not responsible to impose the sanctions or manage the program fee account, which must be done by the law enforcement agency. 5. Language was added in subrule 159.12(1) to reflect that an ignition interlock device (IID) must be installed if required by Iowa Code chapter 321J. This language makes the rule consistent with Iowa Code section 321J.20(10). 6. In subrule 159.20(2), proposed paragraphs “d” through “g” were removed because testing methods must be designated by rule making. New paragraph “d” was added to include the SCRAM® alcohol monitoring and remote breath device as the approved method for testing in cases of hardship. 7. In rule 661—159.30(901D), the fees for each of the approved testing methods are now set forth in the rule, as required by Iowa Code chapter 17A, and language was added to provide that an indigent’s program fees will be paid only to the extent that funds are available. 8. In subrule 159.40(1), language was added so that an application for court-appointed counsel filed in the court case can be used in making a determination of indigency for purposes of the 24/7 program. Changes were also made concerning the process for making a determination of indigency for purposes of the 24/7 program. The law enforcement agency is no longer required to be the agency to make a determination of indigency.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 8, 2018, because the statewide sobriety and drug monitoring program will benefit those persons who participate by adding an additional method to help them maintain sobriety and employment. The program will also benefit highway safety by decreasing the number of alcohol- or drug-impaired drivers on the highways and roads.Adoption of Rule Making This rule making was adopted by the Commissioner of Public Safety on August 31, 2018.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. The statute provides that the program fees, including the costs of testing, are paid by the participants or by funds collected from grants, gifts, donations or other program fees that are made available to pay the costs for indigent persons. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Pursuant to the provisions of rule 661—10.222(17A), the Department does not have authority to waive requirements established by statute. 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 the provisions of rule 661—10.222(17A), the Department has the authority to grant waivers from the rules.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 8, 2018. The following rule-making action is adopted:
ITEM 1. Adopt the following new 661—Chapter 159: CHAPTER 159STATEWIDE SOBRIETY AND DRUG MONITORING PROGRAM661—159.1(901D) Program created. The statewide sobriety and drug monitoring program, also referred to as the “24/7 program,” is established in the department of public safety for use by participating jurisdictions. The program shall be available at least twice per day during hours designated by the law enforcement agency, seven days per week in the participating jurisdictions. Participation in or use of the 24/7 program is a voluntary decision of a participating jurisdiction. A participating jurisdiction cannot be required to participate in or to continue to participate in the 24/7 program.661—159.2() Reserved.661—159.3() Reserved.661—159.4() Reserved.661—159.5() Reserved.661—159.6() Reserved.661—159.7() Reserved.661—159.8() Reserved.661—159.9() Reserved.661—159.10(901D) Definitions. The following definitions apply to this chapter: "Alcohol" means an alcoholic beverage as defined in Iowa Code section 321J.1. "Commissioner" means the commissioner of public safety as defined in Iowa Code section 80.1A. "Controlled substance" means the same as defined in Iowa Code section 124.101. "Department" means the department of public safety. "Eligible offense" means a criminal offense in which the abuse of alcohol or a controlled substance was a contributing factor in the commission of the offense, as determined by the court or a governmental entity of the participating jurisdiction. For purposes of operating while intoxicated offenses committed in violation of Iowa Code section 321J.2, “eligible offense” includes only the following offenses:- A first offense in which the person’s alcohol concentration exceeded .15.
- A first offense in which an accident resulting in personal injury or property damage occurred.
- A first offense in which the person refused to submit to a chemical test requested pursuant to Iowa Code section 321J.6.
- A second or subsequent offense.
- A test or combination of tests that shows the presence of alcohol, a controlled substance, a combination of alcohol and one or more controlled substances, or a combination of two or more controlled substances, if any of the controlled substances are not prescribed by a health care provider or are not used in accordance with the health care provider’s written instructions.
- A failure or refusal to submit to testing, including but not limited to the nonpayment of the required fee.
- Incomplete testing or results that indicate efforts to tamper with or interfere with the test or with valid test results, whether or not those efforts are successful.
- Failure to appear to submit to testing.
Rule making related to hazard mitigation and disaster recovery plan
The Department of Homeland Security and Emergency Management hereby amends Chapter 9, “Iowa Comprehensive Plan,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 17A.3.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 29C.8.Purpose and Summary This rule making formally adopts the Iowa Hazard Mitigation Plan and the Iowa Disaster Recovery Plan. Both plans are reviewed on a regular basis and, when needed, updated versions of the plans are adopted by the Department. The review and public comment period have been completed for both plans, and the Department formally adopted these plans on September 17, 2018. In accordance with federal requirements, each plan will now be reviewed and amended as appropriate at a minimum of every five years.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 20, 2018, as ARC 3846C. A public hearing was held on July 10, 2018, at 11 a.m. in the Cyclones Conference Room, Suite 500, 7900 Hickman Road,Windsor Heights, Iowa. No one attended the public hearing. No public comments were received. The Notice of Intended Action listed the projected adoption date for both plans as July 26, 2018. During the plan review conducted by FEMA, FEMA requested to have the adoption date moved to September 17, 2018, so that the adoption of the plans would occur on the same day as the five-year expiration of the prior plan. The Department accommodated that request by making changes from the Notice to set the adoption date for both plans in Items 1 and 2 as September 17, 2018.Adoption of Rule Making This rule making was adopted by the Department on September 5, 2018.Fiscal Impact This rule making has a fiscal impact to the state of Iowa. During times of major disaster as declared by the President, these plans are key to allowing federal recovery and mitigation funds to flow into the state. While the timing and scale of disasters cannot be predicted, these plans provide detail on how efforts and funding in the state will be applied to provide an effective recovery for Iowa. Since 1990, these plans have enabled $2.25 billion in federal recovery and mitigation funds to flow into Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date This rule making will become effective on October 31, 2018. The following rule-making actions are adopted:
ITEM 1. Amend rule 605—9.3(29C) as follows:605—9.3(29C) Part B: Iowa Hazard Mitigation Plan. The Part B: Iowa Hazard Mitigation Plan is developed in accordance with Iowa Code section 29C.8, and has been adopted on September 17, 2013September 17, 2018, published, and maintained by the department. Part B details the state government goals, objectives, and strategies to mitigate a wide range of natural, technological or human-caused disasters in accordance with Section 322 of the Stafford Act, 42 U.S.C. 5165.- A copy of Part B will be placed in the state library located in the Ola Babcock Miller Building, 1112 East Grand Avenue, Des Moines, Iowa.
- Part B shall be distributed to state agencies and departments that have participated in the writing of the plan or are assigned hazard mitigation functions and to all local emergency management agencies.
- The Iowa Hazard Mitigation Plan serves as the state hazard mitigation document and demonstrates the state’s commitment to reduce risks from natural, technological, and human-caused hazards and serves as a guide for the commitment of resources to reducing the effects of natural, technological, and human-caused hazards.
- The department updates the plan by amendments promulgated by rule in accordance with Iowa Code chapter 17A and distributes amendments to all plan holders on the department distribution list. Part B shall be reviewed and amended as appropriate at a minimum of every threefive years.
- Part B shall be available for public view at the Homeland Security and Emergency Management Department, 7900 Hickman Road, Suite 500, Windsor Heights, Iowa.
- A copy of Part C will be placed in the state library located in the Ola Babcock Miller Building, 1112 East Grand Avenue, Des Moines, Iowa.
- Part C shall be distributed to state agencies and departments that have been assigned recovery functions and to all local emergency management agencies.
- The Iowa Disaster Recovery Plan serves as the state disaster recovery document.
- The department updates the plan by amendments promulgated by rule in accordance with Iowa Code chapter 17A and distributes amendments to all plan holders on the department distribution list. Part C shall be reviewed and amended as appropriate at a minimum of every threefive years.
- Part C shall be available for public view at the Homeland Security and Emergency Management Department, 7900 Hickman Road, Suite 500, Windsor Heights, Iowa.
Rule making related to social and charitable gambling
The Inspections and Appeals Department hereby rescinds Chapter 100, “Administration,” and adopts a new Chapter 100, “General Provisions for Social and Charitable Gambling,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code sections 10A.104 and 99B.2.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 99B.2.Purpose and Summary The adopted rule making implements changes made to Iowa Code chapter 99B resulting from 2015 Iowa Acts, Senate File 482. The legislation modernized Iowa Code chapter 99B by streamlining processes and eliminating unnecessary licenses. Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on August 1, 2018, as ARC 3919C. No public comments were received. The adopted rule making includes two changes from the Notice. Rule 481—100.6(99B) and subrule 100.11(1) were revised to implement changes made to Iowa Code chapter 99B resulting from 2018 Iowa Acts, Senate File 2333 and House File 2417. These changes were inadvertently left out of the Notice. Senate File 2333 increases the actual retail value of allowable prizes for amusement concessions from $100 to $950. House File 2417 allows a participant in an amusement concession at a fair to make payment by credit card.Adoption of Rule Making This rule making was adopted by the Department on September 5, 2018.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.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 31, 2018. The following rule-making action is adopted:
ITEM 1. Rescind 481—Chapter 100 and adopt the following new chapter in lieu thereof: CHAPTER 100GENERAL PROVISIONS FOR SOCIAL AND CHARITABLE GAMBLING481—100.1(99B) Definitions. In addition to the definitions found in Iowa Code chapter 99B, and unless specifically defined in 481—Chapters 101 to 107, the following definitions apply to all social and charitable gambling rules. "Bingo supplies and equipment" means a machine, display board, monitor, card, bingo paper, or any other implement or provision used in the conduct of the game of bingo licensed pursuant to Iowa Code chapter 99B. "Director" means the director of the department of inspections and appeals. "Responsible party" means the individual identified on the license application as the contact person. The responsible party is expected to have a general knowledge of Iowa gambling laws and rules. This individual is deemed to be an agent of the organization until the department is notified otherwise in writing.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 yearOne per calendar yearOne per calendar yearOne per calendar yearOne per calendar yearNoVery 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.481—100.3(99B) License application. 100.3(1) Applications. Applications may be completed online or downloaded by visiting dia.iowa.gov and clicking on the link for “Social and Charitable Gambling.” A paper application may be requested from the Social and Charitable Gambling Unit, Iowa Department of Inspections and Appeals, Lucas State Office Building, Des Moines, Iowa 50319-0083; or by calling (515)281-6848. 100.3(2) Receipt of application. An application shall be submitted at least 30 days before the beginning date requested. 100.3(3) Fees. License fees are not refundable. 100.3(4) Documentation. Qualified organizations applying for a charitable gambling license must submit with the application documentation, as described in the application, to prove tax-exempt status. 100.3(5) Application for incorrect license. If the applicant does not apply for the appropriate license, the license fee may be applied to the appropriate license within 30 days of notification to the applicant by the department. For example, the applicant applies for a 90-day qualified organization license but wishes to conduct bingo. The fee for the 90-day qualified organization license may be applied to a two-year or 14-day qualified organization license, if the applicant responds within 30 days of notification by the department. 100.3(6) Incomplete application submitted. If the applicant submits an incomplete application, the application may be completed and submitted within 30 days of notification to the applicant by the department without forfeiting the fee submitted with the incomplete application.481—100.4(99B) Additional requirements for licensure. In addition to requirements for licensure found in Iowa Code chapter 99B, the department may use the following standards to determine whether to issue a gambling license. These standards do not apply to licensure of manufacturers or distributors of bingo equipment and supplies or electronic raffle equipment. 100.4(1) Sales tax permit—exemptions. Qualified organizations shall either possess or have made application for a sales tax permit at the time the license application is submitted. The following gambling activities are exempt from sales and local option taxes: a. Gambling activities conducted by county and city governments. b. Gambling activities held by the Iowa state fair, Iowa state fair authority, or Iowa state fair foundation (organized under Iowa Code chapter 173), including gambling activities that occur outside of the annual scheduled fair event. c. Gambling activities held by a fair (as defined in Iowa Code section 174.1(2)), including gambling activities that occur outside of scheduled fair events. d. Raffles held by a licensed qualified organization at a fair as defined in Iowa Code section 99B.1 and pursuant to the requirements specified in Iowa Code section 99B.24. e. Raffles, whether or not they are conducted at a fair event, where the proceeds are used to provide educational scholarships by a qualifying organization representing veterans as defined in Iowa Code section 99B.27(1)“b.” 100.4(2) State tax liabilities. The applicant must have no outstanding state tax liabilities or, if there are outstanding state tax liabilities, the applicant must have entered into a negotiated repayment plan with the department of revenue and be current in all payments pursuant to the plan. A copy of the repayment plan shall be submitted with the licensure application. 100.4(3) Revocation—no license issued. a. No one involved in an organization with a gambling license revocation action pending will be granted a license similar to the license revoked. b. No one with a gambling license currently under revocation may be issued any gambling license during the period of revocation. c. A license will not be issued if there is a current revocation of either a gambling or a liquor license for the location named on the license application. 100.4(4) Criminal violations. No applicant shall have been convicted of or pled guilty to a criminal violation of Iowa gambling law. 100.4(5) Violations of gambling law or Iowa alcoholic beverage control Act. Violation of gambling law or the Iowa alcoholic beverage control Act affects whether a gambling license is issued. a. The applicant may have no more than two convictions of or guilty pleas to serious or aggravated misdemeanors in the last two years. This includes any combination of serious or aggravated misdemeanors. b. No liquor license shall have been suspended within the last 12 months because of a conviction of or guilty plea to a criminal violation of the Iowa alcoholic beverage control Act (Iowa Code chapter 123). c. No liquor license shall have been revoked because of a conviction of or guilty plea to a criminal violation of the Iowa alcoholic beverage control Act. d. No applicant shall have been convicted of a felony, federal or state, within five years of the date of the application. For felony convictions more than five years prior to the date of the application, citizenship rights must have been restored in order for the application to be considered.481—100.5(99B) Returned checks. If a check intended to pay for any license provided for under Iowa Code chapter 99B is not honored for payment by the bank on which the check is drafted, the department will attempt to redeem the check. The department will notify the applicant of the need to provide sufficient payment. An additional fee of $25 shall be assessed for each dishonored check. If the department does not receive cash to replace the check, no license will be issued.481—100.6(99B) Payment systems. Licensees allowing participants to make payment by debit card, as authorized by Iowa Code section 99B.5, shall ensure that payment systems comply with all applicable federal and state laws regarding payment card processing and the protection of personal information. Licensees conducting amusement concessions at a fair and allowing participants to make payment by credit card, as authorized by 2018 Iowa Acts, House File 2417, section 1, shall ensure that payment systems comply with all applicable federal and state laws regarding payment card processing and the protection of personal information.481—100.7(99B) Participation—game of skill, game of chance or raffle. No one who conducts a game of skill, game of chance or raffle may participate in the game or raffle. For purposes of this rule, an individual “conducts” a raffle if the individual directly participates in the mechanism of selection of the prize, such as drawing the winning entry. For purposes of this rule, an individual “conducts” a game of skill or game of chance if, for example, the person is a dealer or a croupier or otherwise operates the game.481—100.8(99B) Posted rules—games other than bingo and raffles. Rules established by the licensee shall be posted on a sign near the front of the playing area or made available electronically at each player’s location. Rules shall be in large, easily readable print and shall include:- The name and mailing address of the licensee;
- Prices to play;
- How winners will be determined;
- Prize(s) or categories of prizes for each game; and
- Rules established by the licensee for the game. Rules shall define a game and indicate the cost per game. For example, a game might be one opportunity to shoot and make one basket, or three opportunities to shoot and make one basket.
- Punchboard,
- Pushcard,
- Pull-tab,
- Craps,
- Chuck-a-luck,
- Roulette,
- Klondike,
- Blackjack,
- Baccarat,
- Equality, or
- Three-card monte.
Rule making related to bingo
The Inspections and Appeals Department hereby amends Chapter 103, “Bingo,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code sections 10A.104 and 99B.2.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 99B.2.Purpose and Summary The adopted rule making implements changes made to Iowa Code chapter 99B resulting from 2015 Iowa Acts, Senate File 482. The legislation modernized Iowa Code chapter 99B by streamlining processes and eliminating unnecessary licenses. Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on August 1, 2018, as ARC 3920C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by the Department on September 5, 2018.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.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 31, 2018. The following rule-making actions are adopted:
ITEM 1. Rescind rule 481—103.1(10A,99B) and adopt the following new rule in lieu thereof:481—103.1(99B) Definitions. In addition to definitions found in Iowa Code chapter 99B and in rule 481—100.1(99B), the following definitions apply to all qualified organizations where bingo is played. "Cash" means any legal tender of the United States. "Category" means the name given to a particular type of playing face to distinguish one from another. "Limited license" means a 14-day license issued only to a qualified organization. There are no limits on the number of games played or occasions held, except that only two bingo occasions may be held during the period of 14 days, with no limit on the number of bingo games or the number of hours played during each designated bingo day. "Playing face" means the grid on which a player marks numbers and letters called as the game progresses. ITEM 2. Rescind rule 481—103.2(10A,99B) and adopt the following new rule in lieu thereof:481—103.2(99B) License. 103.2(1) License required—exception. A license is required in order to conduct a bingo occasion unless all of the following requirements are met: a. Participants in the bingo occasion are not charged to enter the premises where bingo is conducted. b. Participants in the bingo occasion are not charged to play. c. Any prize awarded at the bingo occasion is donated. d. The bingo occasion is conducted as an activity and not for fundraising purposes. 103.2(2) Location. Bingo occasions are restricted to the location for which application is made by the qualified organization and approved by the department. For good cause, a license may be transferred to a different location only after written notice by the licensee and approval by the department. “Good cause,” for purposes of this subrule, may include flood, fire or other natural disasters; sale of the building; or nonrenewal of lease. 103.2(3) Application. Before any organization may conduct bingo, a license application must be approved by the department. Application and license requirements are found in rules 481—100.3(99B), 481—100.4(99B), and 481—100.5(99B). 103.2(4) Examples. The following are examples of circumstances affecting whether a license is granted. a. Qualified organization X applies for and is issued a two-year license to conduct bingo occasions at 313 Cherry Street, Des Moines, Iowa. The license is effective from August 1, 2017, to July 31, 2019. On October 1, 2017, qualified organization Y applies for a 14-day limited license to conduct bingo at the same location. The license is approved and issued because a limited license can be issued for the same location used for a two-year bingo license. b. Qualified organization ABC applies for and is issued a two-year qualified organization license to conduct bingo at 1002 West 2nd Avenue in Jones Town, Iowa. The license is effective from October 1, 2017, to September 30, 2019. On November 15, 2017, qualified organization EFG applies for a two-year qualified organization license for the same location. A license may be issued to organization EFG for the same location during the same period to conduct any games of chance, games of skill or raffles. Organization EFG shall not conduct bingo at the location. c. Hometown Community School applies for and is issued a two-year qualified organization license to conduct games of skill, games of chance and raffles at the grade school building. The license is effective from September 1, 2017, to August 31, 2019. During the time that the Hometown Community School license is in effect, the school-sponsored pep club applies for a 14-day limited license to conduct games of skill at the grade school building. The school-sponsored pep club may be issued a limited license for the same location during the same time. Under this example, the school-sponsored pep club would not be required to obtain a separate license, because school-affiliated organizations may operate separate events under a school’s two-year license. ITEM 3. Rescind rule 481—103.3(99B) and adopt the following new rule in lieu thereof:481—103.3(99B) Bingo occasion. A qualified organization may conduct only 3 bingo occasions per week, but not more than 15 occasions per month, under a two-year qualified organization license. A week starts on Sunday and ends on Saturday. At the end of each occasion, the person conducting the games shall announce both the gross receipts and the use to which the net receipts will be dedicated and distributed. ITEM 4. Amend rule 481—103.4(99B), introductory paragraph, as follows:481—103.4(99B) Game of bingo. Each game shall meet all of the requirements of the definition of “bingo” in Iowa Code section 99B.1(5)99B.1(4) to be a legal game of bingo. Games ordinarily considered bingo may be played. ITEM 5. Amend paragraph 103.4(1)"f" as follows: f. House rulesRules established by the licensee may require that a player have the last number called for a bingo. If not posted in the house rulesestablished by the licensee, the player is not required to have the last number called. ITEM 6. Amend subrule 103.4(3) as follows: 103.4(3) The cost to play each game shall not exceed $5. Cards or games may be sold only within the premises of the bingo occasion. The cost for each packet, playing face, or tear sheet shall be the same for each participant, i.e., the cost for an opportunity to play shall be equal. Players may pay for games with cash or, at the option of the licensee, checks, personal check, money order, bank check, cashier’s check, electronic check, or debit card. a. All cards or games shall be assigned a price. b. The price shall be posted. Cards may be sold only for the posted price. c. Free games shall not be given. Free games include gift cards redeemable for games. This paragraph does not prohibit giving free concession items such as food, beverages or daubers. d. Bingo games allowing for a trade-in of a bingo card during a bingo game for not more than fifty cents per trade-in may be allowed. ITEM 7. Rescind the implementation sentence in rule 481—103.4(99B). ITEM 8. Amend rule 481—103.5(99B) as follows:481—103.5(99B) Staterules and house rulesestablished by the licensee. Iowa administrative rules and specific house rulesestablished by the licensee must be readily available to every bingo player. The house has discretion regarding reserved seating and age restrictions for children to play, but must post such restrictions in the house rules. 103.5(1) A copy of these rules, 481—Chapter 103, “Bingo,” shall be maintained at every bingo location during every bingo occasion. Bingo players who request it shall have the opportunity to read the administrative rules. 103.5(2) House rulesRules established by the licensee shall be posted on a sign near the front of the playing area. a. The sign shall be at least 30 inches by 30 inches. b. Permanent letters 3 inches high shall proclaim “Rules of the Game.” c. a. Rules shall be in large, easily readable print and shall include: (1) The name and mailing address of the licensee; (2) Prices to play; and (3) House rulesRules established by the licensee for the game. 1b. House rulesRules established by the licensee shall include how to indicate “bingo” to halt the game,how to collect a prize, andhow the licensee will verify winners’ names and addresses.- Reserved seating may be observed if the house so chooses and posts the information.
- People of any age are allowed to play bingo. The house may choose to restrict children of certain ages, as long as the restriction is posted in the house rules.
- All buildings in which bingo occasions are conducted must meet state or local standards for occupancy and safety.
- The name of the licensee shall be posted on the sign of each building or location where bingo occasions are held.
- A name which is closely associated with the licensee and which clearly identifies the lawful uses of the proceeds may also be used. Generic-type names, such as “Nelson Street Bingo” or “Uncle Bob’s Bingo,” shall not be used.
- The rent shall not be related to nor be a percentage of the receipts.
- The licensee may terminate any lease or rental agreement without paying a penalty or forfeiting money or a deposit. Damage deposit money is excepted.
- Alcoholic beverages may be served in a bingo location if that location possesses a beer permit or liquor license.
- The lessor of the building shall not participate in conducting bingo.
- During a bingo occasion, the lessor shall not sell any beverage, food or any other merchandise in the room in which bingo is played.
- Only one licensedqualified organization may holdconduct bingo occasions at a locationwithin the same structure or building. However, the following exception applies: A 14-day limited licensee may hold bingo occasions at the same location.
Rule making related to amusement devices
The Inspections and Appeals Department hereby amends Chapter 104, “General Provisions for All Amusement Devices,” and Chapter 105, “Registered Amusement Devices,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code sections 10A.104, 99B.2 and 99B.52(7).State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 99B.2.Purpose and Summary The adopted rule making implements changes made to Iowa Code chapter 99B, “Social and Charitable Gaming,” resulting from 2015 Iowa Acts, Senate File 482. The legislation modernized Iowa Code chapter 99B by streamlining processes and eliminating unnecessary licenses.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on August 1, 2018, as ARC 3922C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by the Department on September 5, 2018.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.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 31, 2018. The following rule-making actions are adopted:
ITEM 1. Amend rule 481—104.1(10A,99B), definitions of “Amusement device” and “Gambling device,” as follows: "Amusement device" means an electrical or mechanical device possessed and used in accordance with Iowa Code section 99B.10chapter 99B. An amusement device is not a game of skill or chance as defined in Iowa Code section 99B.1, a gambling device, or a device that plays poker, blackjack, or keno. Roulette wheels, slot machines, and other devices specified in Iowa Code section 725.9 as gambling devices are not amusement devices. "Gambling device" means a device possessed or used or designed to be used for gambling and includes, but is not limited to: , roulette wheels, klondike tables, punchboards, faro layouts, keno layouts, numbers tickets, slot machines,pachislo skill-stop machine or any other similar machine or device, push cards, jar tickets, pull-tabs, and video machines or other devices that do not comply with Iowa Code section 99B.10chapter 99B. ITEM 2. Adopt the following new definition of “Progressive games” in rule 481—104.1(10A,99B): "Progressive games" means games in which the value of the prizes increases an incremental amount with each game. ITEM 3. Amend rule 481—104.2(99B) as follows:481—104.2(99B) Device restrictions. An amusement device, except for an amusement device which shall be registered pursuant to Iowa Code section 99B.10(1)“f,”99B.53, may be owned, possessed, or offered for use by any person at any location. All amusement devices shall comply with all of the following:- The device must be electrical, which includes both electronic and video, or mechanical, or a combination of both.
- The device shall not be designed or adapted to issue or pay coins or currency.
- The device may be designed or adapted to award free games without additional consideration.
- The device may be designed or adapted to award merchandise or tickets or tokens redeemable for merchandise not to exceed a retail value of more than $50 per play or game.
- The device may be designed or adapted to issue tickets or tokens, but not coins or currency. However, the device shall not be designed or adapted to issue tickets or tokens that may be used to play any device or game.
- The device shall not have a “knock-off” switch to release either free games or credits awarded by the device. However, credits may be released by the insertion of coins, currency, or tokens to activate a new game. Free games may only be utilized for playing the device and may not be released in any other manner.
- The device shall not be capable of being altered to enable a person using the device to increase or decrease the chances to win a game or other prize by paying more than is ordinarily required to play the game.
- The device must be designed or adapted to accept only coins, currency, or tokens to play the game. However, the device shall not be designed or adapted to accept tokens that have been awarded as a prize.
- The device must be registered if it meets the registration requirements set forth inIowa Code section 99B.53 and rule 481—104.5(99B).
- Devices that pay coins or currency.
- Gambling games permitted in Iowa Code chapter 99F, such as slot machines and roulette wheels, or any similar device.
- Any machine that does not conform to the requirements in these rules or Iowa Code section 99B.10chapter 99B.
- Any machine designed or resembling a machine which is normally used for casino-type gambling.
- Amusement devices designed or adapted to facilitate gambling.
- Progressive games.
- Conviction for illegal gambling under the provisions of Iowa Code chapter 725.
- Forfeiture of property under the provisions of Iowa Code chapter 809.
- Conviction for illegal gambling may result under the provisions of Iowa Code chapter 725.
- Suspension or revocation of a wine or beer permit or of a liquor license may result under the provisions of Iowa Code chapter 123.
- Property may be forfeited under the provisions of Iowa Code chapter 809.
- Violation of any laws pertaining to gambling may result in suspension or revocation of a registration as prescribed in Iowa Code section 99B.10B or 99B.10C99B.55.
- Unless otherwise prescribed in Iowa Code section 99B.10B or 99B.10C99B.55, a registration may be revoked upon the violation of any gambling law, rule or regulation, including Iowa Code chapter 99B, 481—Chapter 104, or this chapter.
- A registration may be revoked if the registrant or an agent of the registrant engages in any act or omission that would have permitted the department to refuse to issue a registration under Iowa Code chapter 99B.
- A person under the age of 21 shall not participate in the operation of an electrical or mechanical amusement devicethat is required to be registered. A person who violates the provisions of Iowa Code section 99B.10C(1)99B.57 commits a scheduled violation under Iowa Code section 805.8C(4).
Rule making related to card game tournaments
The Inspections and Appeals Department hereby rescinds Chapter 106, “Card Game Tournaments by Veterans Organizations,” Iowa Administrative Code, and adopts a new Chapter 106 with the same title.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code sections 10A.104 and 99B.2.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 99B.2.Purpose and Summary The adopted rule making implements changes made to Iowa Code chapter 99B resulting from 2015 Iowa Acts, Senate File 482. The legislation modernized Iowa Code chapter 99B by streamlining processes and eliminating unnecessary licenses. Iowa Code section 99B.27 addresses much of what was formerly found in Chapter 106; accordingly, the rule making eliminates duplicative material. Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on August 1, 2018, as ARC 3921C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by the Department on September 5, 2018.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.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 31, 2018. The following rule-making action is adopted:
ITEM 1. Rescind 481—Chapter 106 and adopt the following new chapter in lieu thereof: CHAPTER 106CARD GAME TOURNAMENTS BY VETERANS ORGANIZATIONS481—106.1(99B) Definitions. In addition to definitions found in Iowa Code chapter 99B, for the purposes of this chapter, the following definitions apply: "Card game tournament" "tournament" means a series of card games held by a licensee during a consecutive period of time of not more than 24 hours and not held as part of an annual game night licensed pursuant to Iowa Code section 99B.26. "Department" means the department of inspections and appeals. "Educational, civic, public, charitable, patriotic, or religious uses" means the same as defined in Iowa Code section 99B.1(14). "Licensee" means a qualified organization representing veterans that has been issued a license pursuant to Iowa Code section 99B.12 and the rules in 481—Chapter 100 and this chapter.481—106.2(99B) Licensing. Before any card game tournament may occur, a license application must be approved by the department. Application and license requirements are found in rules 481—100.3(99B), 481—100.4(99B), and 481—100.5(99B). A qualified organization intending to conduct veterans card game tournaments must complete the section of the license application for veterans card game tournaments.481—106.3(99B) Card game tournament. In addition to the requirements found in Iowa Code section 99B.27, licensees conducting tournaments shall comply with all of the following: 106.3(1) Licensee to conduct tournament. The licensee shall conduct each tournament and shall not contract with or permit another person to conduct the tournament or any card game during the tournament. 106.3(2) Tournament rules. Tournament rules shall be posted or distributed to all participants before the tournament begins. Rules shall include the following: a. Card games and the rules of each card game; b. Participation fees; c. Prize(s) for each card game and tournament; d. How winners will be determined; and e. Any other tournament rules.481—106.4(99B) Records. The licensee shall comply with the record-keeping requirements found in Iowa Code sections 99B.16 and 99B.27(3) and 481—Chapter 100. The licensee shall keep a journal of all dates of events, amount of gross receipts, amount given out as prizes, expenses, amount collected for taxes, and amount collected as revenue. These rules are intended to implement Iowa Code sections 99B.2 and 99B.27. [Filed 9/5/18, effective 10/31/18][Published 9/26/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/26/18.ARC 4011CInterior Design Examining Board[193G]Adopted and FiledRule making related to registration and continuing education
The Interior Design Examining Board hereby amends Chapter 2, “Registration,” and Chapter 3, “Continuing Education,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 544C.3.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapter 544C.Purpose and Summary The rules in Chapter 2 describe the process for registration. The amendments to Chapter 2 clarify the continuing education requirements for reinstatement of registration and list the fee for a formal wall certificate in the fee section. The rules in Chapter 3 describe licensees’ continuing education requirement as a condition of registration renewal. The amendments to Chapter 3 rescind the definition of “self-directed activity” as the term is no longer used and modify the number of continuing education hours required.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 20, 2018, as ARC 3841C. A public hearing was held on July 10, 2018, at 9 a.m. at the Board office, Suite 350, 200 E. Grand Avenue, Des Moines, Iowa. One person attended the public hearing but did not offer comments. 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, 2018.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 193—Chapter 5. 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 31, 2018. The following rule-making actions are adopted:
ITEM 1. Amend subrule 2.2(1) as follows: 2.2(1) It is the policy of the board to mailsend to each registrant at the registrant’s last-known address a notice of the pending expiration date approximately one month prior to the date the certificate of registration is scheduled to expire. Failure to receive this notice does not relieve the registrant of the responsibility to timely renew the certificate and pay the renewal fee. ITEM 2. Amend rule 193G—2.3(544C,17A) as follows:193G—2.3(544C,17A) Reinstatement of certificates of registration. An individual may reinstate a lapsed certificate of registration to active registration by doing the following:- Paying the current renewal fee;
- Paying the reinstatement fee of $100;
- Providing a written statement outlining the professional activities that the applicant performed in Iowa during the period of nonregistration. The statement shall include a list of all projects with which the applicant had involvement and shall explain the service provided by the applicant; and
- Submitting documented evidence of completion of 5 contact hours of continuing education for each year or partial year since the registrant’s last renewal year in active status with a maximum of 20 contact hours.10 continuing education hours, which should have been reported on the June 30 renewal date on which the applicant failed to renew, and 5 continuing education hours for each year or portion of a year of expired registration up to a maximum of 20 continuing education hours. All continuing education hours must be completed in health, safety, and welfare subjects; be acquired in structured educational activities; and be in compliance with requirements in 193G—Chapter 3. The continuing education hours used for reinstatement may not be used again at the next renewal and shall not have been earned more than four years prior to the date of the application to reinstate.
Rule making related to qualified allocation plans
The Iowa Finance Authority hereby amends Chapter 12, “Low-Income Housing Tax Credits,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 16.5.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 16.35 and Section 42 of the Internal Revenue Code.Purpose and Summary The updated 2019 9% Qualified Allocation Plan and the 4% Qualified Allocation Plan (QAPs) dated September 5, 2018, set forth the purposes of the plans, administrative information required for participation, threshold criteria, selection criteria, postreservation requirements, appeal process, and compliance monitoring components. The plans also establish the fees for filing an application for low-income housing tax credits and for compliance monitoring. Copies of the qualified allocation plans are available upon request from the Authority and are available electronically on the Authority’s website at www.iowafinanceauthority.gov. It is the Authority’s intent to incorporate the updated QAPs by reference consistent with Iowa Code chapter 17A and 265—subrules 17.4(2) and 17.12(2).Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on August 1, 2018, as ARC 3917C. A public hearing was held on August 21, 2018, at 9 a.m. at the Authority offices, 2015 Grand Avenue, Des Moines, Iowa. Comments on the QAPs received at the public hearing included comments on the timing of the due date of the application for the 9% QAP, set-aside issues, the requirement that 50 percent of the developer fee above $750,000 be deferred, and a perception that income averaging is discouraged by the QAPs. Written comments received about the QAPs were similar to the comments made at the public hearing. The only changes from the amendments published under Notice were made in rules 265—12.1(16) and 265—12.2(16) and reflect a change in the date subsequent to which no amendments or additions to the QAPs are included and no modifications or amendments to the Internal Revenue Code are incorporated by reference. The date proposed in the Notice was July 11, 2018, and that date has been changed to September 5, 2018. In addition, in response to public comments about the QAPs, the Authority made certain changes to the QAPs based on those comments. For example, among other changes, the timing of the application was revised to allow more time between the final adoption of the QAP and the application deadline, and the requirement that 50 percent of the developer fee above $750,000 be deferred was removed. Additionally, based on public comments, a Disaster Relief Set-Aside was added, and the prohibition against building in a 100-year flood plain was eased, as long as certain criteria are met.Adoption of Rule Making This rule making was adopted by the Authority on September 5, 2018.Fiscal Impact The fees that will be increased will result in an estimated additional $18,500 in revenue for the Authority. Due to fluctuations in requests and the lack of historical data, the estimated fiscal impact of the new fees on the increase in revenue for the Authority is unknown. Jobs Impact After analysis and review of this rule making, the impact on jobs is expected to be consistent with the impact of previous years’ QAPs. The Low-Income Housing Tax Credit program has a substantial positive impact on job creation in Iowa, with many jobs created annually in the construction, finance, and property management fields, among others.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Authority for a waiver of the discretionary provisions, if any.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 31, 2018. The following rule-making actions are adopted:
ITEM 1. Amend rule 265—12.1(16) as follows:265—12.1(16) Qualified allocation plans. 12.1(1) Four percent qualified allocation plan. The qualified allocation plan entitled Iowa Finance Authority Low-Income Housing Tax Credit Program 4% Qualified Allocation Plan (“4% QAP”) dated September 7, 2016September 5, 2018, shall be the qualified allocation plan for the allocation of 4 percent low-income housing tax credits consistent with IRC Section 42 and the applicable Treasury regulations and Iowa Code section 16.35. The 4% QAP is incorporated by reference pursuant to Iowa Code section 17A.6 and 265—subrules 17.4(2) and 17.12(2). The 4% QAP does not include any amendments or editions created subsequent to September 7, 2016September 5, 2018. 12.1(2) Nine percent qualified allocation plan. The qualified allocation plan entitled Iowa Finance Authority Low-Income Housing Tax Credit Program 20182019 Qualified Allocation Plan (“9% QAP”) shall be the qualified allocation plan for the allocation of 9 percent low-income housing tax credits consistent with IRC Section 42 and the applicable Treasury regulations and Iowa Code section 16.35. The 9% QAP is incorporated by reference pursuant to Iowa Code section 17A.6 and 265—subrules 17.4(2) and 17.12(2). The 9% QAP does not include any amendments or editions created subsequent to September 6, 2017September 5, 2018. ITEM 2. Amend rule 265—12.2(16) as follows:265—12.2(16) Location of copies of the plans. 12.2(1) 4% QAP. The 4% QAP can be reviewed and copied in its entirety on the authority’s Web sitewebsite at http://www.iowafinanceauthority.govwww.iowafinanceauthority.gov. Copies of the 4% QAP, application, and all related attachments and exhibits shall be deposited with the administrative rules coordinator and at the state law library and shall be available on the authority’s Web sitewebsite. The 4% QAP incorporates by reference IRC Section 42 and the regulations in effect as of September 7, 2016September 5, 2018. Additionally, the 4% QAP incorporates by reference Iowa Code section 16.35. These documents are available from the state law library, and information about these statutes, regulations and rules is on the authority’s Web sitewebsite. 12.2(2) 9% QAP. The 9% QAP can be reviewed and copied in its entirety on the authority’s Web sitewebsite at http://www.iowafinanceauthority.govwww.iowafinanceauthority.gov. Copies of the 9% QAP, application, and all related attachments and exhibits shall be deposited with the administrative rules coordinator and at the state law library and shall be available on the authority’s Web sitewebsite. The 9% QAP incorporates by reference IRC Section 42 and the regulations in effect as of September 6, 2017September 5, 2018. Additionally, the 9% QAP incorporates by reference Iowa Code section 16.35. These documents are available from the state law library, and information about these statutes, regulations and rules is on the authority’s Web sitewebsite. [Filed 9/6/18, effective 10/31/18][Published 9/26/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/26/18.ARC 4038CIowa Finance Authority[265]Adopted and FiledRule making related to home and community-based services rent subsidy program
The Iowa Finance Authority hereby amends Chapter 24, “Home and Community-Based Services Rent Subsidy Program,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 16.5.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 16.55.Purpose and Summary The purposes of these amendments are to clarify the rules, remove an unnecessary defined term, and strike a sentence that prohibits subsidy recipients from residing in rental units owned by immediate family members.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on August 1, 2018, as ARC 3916C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by the Authority Board of Directors on September 5, 2018.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Authority for a waiver of the discretionary provisions, if any.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 31, 2018. The following rule-making actions are adopted:
ITEM 1. Rescind the definition of “Immediate family member” in rule 265—24.2(16). ITEM 2. Amend rule 265—24.2(16), definition of “Qualified rental unit,” as follows: "Qualified rental unit" means a housing unit for which a signed written rental agreement exists and which is governed by Iowa Code chapter 562A. A qualified rental unit does not include a home owned by an immediate family member. ITEM 3. Amend rule 265—24.3(16) as follows:265—24.3(16) Eligibility requirements. All of the following criteria shall be met. 24.3(1) Demonstrated need. An applicant must demonstrate need for rent subsidy by meeting all of the following requirements: a. The applicant shall provide a copy of an executed rental agreement showing the applicant as a tenant, with signatures by the landlord and the applicant or the applicant’s legal guardian; b. The applicant shall provide evidence that the applicant pays more than 30 percent of the applicant’s gross income for rent, with a minimum contribution of $25 per month; c. The applicant shall not receive any other permanent rental assistance; d. The applicant may not use this program to substitute for any other permanent rent subsidy that the applicant had been receiving at the time of or immediately prior to the time of application to this program; and e. The applicant’s rental unitmust be a qualified rental unit and may not be owned by someone who lives in the unit. 24.3(2) Ineligible for other rent subsidies. The applicant shall have been determined ineligible or be on the waiting list, or provide documentation that the waiting list is closed, under the HUD Housing Choice Voucher (HCV) program administered by Iowa’s public housing authorities. In the event that the HCV waiting list is currently closed, the applicant is responsible for monitoring the status of the waiting list application period and must apply at the first available opportunity and provide documentation of HCV application submission to the local public housing authority or be subject to removal from the HCBS rent subsidy program or the HCBS rent subsidy program waiting list. ITEM 4. Amend 265—Chapter 24, implementation sentence, as follows: These rules are intended to implement Iowa Code section 16.5(17) and 2005 Iowa Acts, House File 825, section 4516.55. [Filed 9/6/18, effective 10/31/18][Published 9/26/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/26/18.ARC 4017CSecretary of State[721]Adopted and FiledRule making related to post-election audit
The Secretary of State hereby amends Chapter 26, “Counting Votes,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code sections 17A.4 and 50.51 [2017 Iowa Acts, House File 516, section 43].State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 50.51.Purpose and Summary The Secretary of State has determined that as a result of the enactment of 2017 Iowa Acts, House File 516, these amendments are necessary to keep administrative rules in compliance with the Iowa Code. House File 516 makes significant changes to elections in the state of Iowa, creating a need to update Chapter 26, which pertains to elections.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on August 1, 2018, as ARC 3915C. The Secretary of State received comments and questions following the publication of the Notice of Intended Action. The comments can be summarized into four categories:
- Change the deadline for completion of post-election audit so that it aligns with the deadline to request an administrative recount.
- Better define who is eligible to serve on the audit board.
- Provide auditors with more flexibility on how many members an audit board may have.
- Provide auditors with more flexibility on how many ballots to count in an absentee and special voters precinct.
- Audits must be completed not later than 12:00 noon three days after the county canvass of votes. This deadline gives auditors the afternoon to file a request with their board of supervisors if the auditors believe an administrative recount is necessary.
- Additional language was added regarding who can serve on the audit board. Auditors now have the flexibility to expand boards past five members if they deem it necessary.
- Added language to clarify that all ballots cast at a precinct polling place must be audited.
- Added language regarding the supervision of the handling of ballots to protect ballots from alteration, damage, or loss.
- Added language to clarify that an auditor may expand the number of ballots audited past 2,000 in an absentee and special voters precinct.