PrintProposing rule making related to CPA examinations and providing an opportunity for public comment
The Accountancy Examining Board hereby proposes to amend Chapter 3, “Certification of CPAs,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 542.4.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapter 542.Purpose and Summary The proposed amendment to Chapter 3 reflects a change in the availability of the certified public accountant (CPA) examinations. Instead of examinations being available during four annual examination windows with dark periods during which the examinations are not available, the Board is permitted to make examinations available year-round.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. No current fees are being changed, and no new fees are being imposed.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 193A—Chapter 5. Public Comment Any interested person may submit comments concerning this proposed rule making. Comments in response to this rule making must be received by the Board no later than 4:30 p.m. on July 10, 2019. Comments should be directed to: Robert Lampe Iowa Accountancy Examining Board 200 East Grand Avenue, Suite 350 Des Moines, Iowa 50309 Phone: 515.725.9024 Email: robert.lampe@iowa.govPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: July 10, 2019 9 to 10 a.m. Professional Licensing Bureau Offices 200 East Grand Avenue, Suite 350 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 3.6(1) as follows: 3.6(1) Effective with the implementation of the computer-based examination, a candidate may take the required test subjects individually and in any order. Except as provided in rule 193A—3.7(542), credit for any subjects passed shall be valid for 18 months from the actual date the candidate sat for the subject, without the candidate’s having to attain a minimum score on any failed subject(s) and without regard to whether the candidate sat for any other subjects. The candidate shall also be subject to the following: a. The candidate must pass all four subjects of the examination within a rolling 18-month period that begins on the date that the first subject is passed. If all four subjects are not passed within the 18-month period, credit for any subject taken outside the 18-month period shall expire. b. IfSubject to paragraph 3.6(1)“c,” if a candidate fails a subject, the candidate cannot retake the same failed subject in an examination window. An examination window“examination window” refers to a three-month period in which a candidate has the opportunity to take the examination (comprised of two months when the examination is offered and one month when the examination will not be offered while routine maintenance is performed and the item bank is refreshed). Thus, the candidate will be able to sit for the examination two out of three months within an examination window. c. If and when the board determines that examination system changes necessary to eliminate examination window limitations have been implemented, paragraph 3.6(1)“b” will no longer be effective and a candidate will be permitted to retake a subject once the candidate’s grade for any previous attempt of that same subject has been released.ARC 4505CChief Information Officer, Office of the[129]Notice of Intended ActionProposing rule making related to broadband infrastructure and grants and providing an opportunity for public comment
The Office of the Chief Information Officer (Office) hereby proposes to amend Chapter 20, “Broadband Infrastructure—Targeted Service Areas,” Chapter 21, “Broadband Infrastructure—Project Certification,” and Chapter 22, “Broadband Grants Program,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 8B.4(5) and 8B.10(2) and sections 8B.11(8) and 427.1(40) as amended by 2019 Iowa Acts, House File 772.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 8B.1, 8B.10, 8B.11 and 427.1(40) as amended by 2019 Iowa Acts, House File 772.Purpose and Summary These proposed amendments interpret and implement 2019 Iowa Acts, House File 772, the Empower Rural Iowa Act, which authorizes the continued operation of broadband programs currently administered by the Office through 2025, and implement several policy changes and requirements related to these programs. In addition, these amendments clarify aspects of the broadband programs identified as requiring clarification following the Office’s administration of these programs over the past several years and make several clerical and ministerial updates which were identified throughout the drafting process.Fiscal Impact The Office will use existing budget and resources to implement these rules, including specific appropriations made during the 2019 Legislative Session for such purposes. Jobs Impact These amendments and continued support and operation of these programs will lead to the deployment of additional broadband projects by communications service providers and therefore increased job opportunities across the state.Waivers As it relates to the property tax program, an agencywide waiver provision has not yet been adopted by the Office but will be adopted in a subsequent rule making. As they relate to the broadband grants program, waivers will be handled in accordance with the terms of the Notice of Funding Availability, similar to the manner in which waivers for solicitations in the procurement context are handled. 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 Office no later than 4:30 p.m. on July 9, 2019. Comments should be directed to: Matt Behrens Office of the Chief Information Officer Hoover State Office Building, Level B 1305 East Walnut Street Des Moines, Iowa 50319 Phone: 515.281.5503 Fax: 515.281.6137 Email: cio@iowa.govPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: July 10, 2019 10 to 11 a.m. OCIO Innovation Lab, Room 12 Hoover State Office Building, Level A 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 Office and advise of specific needs by calling 515.281.5503. 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 129—20.1(8B,427) as follows:129—20.1(8B,427) Definitions. For purposes of this chapter, the following definitions shall govern.The definitions in Iowa Code section 8B.1 as amended by 2019 Iowa Acts, House File 772, shall apply to this chapter. In addition, for purposes of this chapter, the following definitions shall apply. "As of date" means the as of date of the broadband availability maps and corresponding data sources utilized by the office in determining whether a communications service provider offers or facilitates broadband service in a particular census block at or above the download and upload speeds specified in the definition of targeted service area and underlying the statewide map published and then in effect in accordance with rules 129—20.3(8B,427) and 129—20.4(8B,427). For example, until the office publishes an updated version of the statewide map in accordance with rules 129—20.3(8B,427) and 129—20.4(8B,427), the as of date remains July 1, 2015, which is the as of date of the first statewide map. "Broadband" means a high-speed, high-capacity electronic transmission medium, including fixed wireless and mobile wireless mediums, that can carry data signals from independent network sources by establishing different bandwidth channels and that is commonly used to deliver Internet services to the public. "Broadband infrastructure" means the physical infrastructure used for the transmission of data that provides broadband services. “Broadband infrastructure” does not include land, buildings, structures, improvements, or equipment not directly used in the transmission of data via broadband. "Census block" means a U.S. Census Bureau census block located in this state, including any crop operation located within the census block. "Chief information officer" "CIO" means the state chief information officer or the state chief information officer’s designee. "Communications service provider" means a service provider that provides broadband service. "Crop operation" means a commercial enterprise where a crop is maintained on the property of the commercial enterprise. "Date of commencement" means the date first occurring after July 1, 2015, and before July 1, 2020, in which broadband infrastructure used in a certified project becomes property taxed as real property as determined by Iowa Code section 427A.1. "Date of completion" "completed" means the date that a communications service provider offers or facilitates broadband service delivered at or above 25 megabits per second of download speed and 3 megabits per second of upload speed in a targeted service area. "Installation of the broadband infrastructure" means the labor, construction, building, and furnishing of new physical infrastructure used for the transmission of data that provides broadband services. “Installation of the broadband infrastructure” does not include the process of removing existing infrastructure, fixtures, or other real property in preparation of installation of the broadband infrastructure. "Is being performed" includes but is not limited to the planning, preparation, design, architecture, labor, construction, building, and furnishing of new physical infrastructure used for the transmission of data that provides broadband services. "Office" means the office of the chief information officer authorized by Iowa Code chapter 8B. "Targeted service area" means a U.S. Census Bureau census block located in this state, including any crop operation located within the census block, within which no communications service provider offers or facilitates broadband service at or above 25 megabits per second of download speed and 3 megabits per second of upload speed as of July 1, 2015. ITEM 2. Amend rule 129—20.2(8B,427) as follows:129—20.2(8B,427) Scope. This chapterinterprets relevant provisions of Iowa Code sections 8B.1, 8B.10, and 8B.11 as amended by 2019 Iowa Acts, House File 772; implements Iowa Code section 427.1(40) as amended by 2019 Iowa Acts, House File 772; and applies to the office’s determinations of whether a census block is a targeted service area and to persons who wish to challenge the office’s finding on whether a census block is a targeted service area. ITEM 3. Amend rule 129—20.3(8B,427) as follows:129—20.3(8B,427) Broadband availability maps and data sources. To determine whether a communications service provider offers or facilitates broadband service in a particular census block at or above 25 megabits per second of download speed and 3 megabits per second of upload speed as of July 1, 2015the download and upload speeds specified in the definition of targeted service area as of the as of date, the office utilizedutilizes fixed broadband availability maps and corresponding data sources made available by Connect Iowa, LLC, a subsidiary of Connected Nation, Incthe Federal Communications Commission (FCC) online, which as of [the effective date of these rules] was available at www.fcc.gov/general/broadband-deployment-data-fcc-form-477. Such maps and data sources wereare widely accepted for accuracy and made available for public review and comment. By selecting these maps and data sources, the office has satisfied its obligation to reference broadband availability maps or data sources that are widely accepted for accuracy and available for public review and comment as required by Iowa Code section 8B.10(1). ITEM 4. Amend rule 129—20.4(8B,427) as follows:129—20.4(8B,427) Targeted service area determination. 20.4(1) The office will create a statewide map divided into census blocks. Based on the maps and data sources referenced in rule 129—20.3(8B,427), the statewide map will designate census blocks within which, as of July 1, 2015the as of date, no communications service provider offered or facilitated broadband service to the public at or above 25 megabits per second of download speed and 3 megabits per second of upload speedthe download and upload speeds specified in the definition of targeted service area. This statewide map shall be availablepublished online at http://ocio.iowa.gov/ocio.iowa.gov/broadband. 20.4(2) In accordance with Iowa Code section 8B.10(1) as amended by 2019 Iowa Acts, House File 772, the office shall periodically make renewed determinations of whether a communications service provider offers or facilitates broadband service at or above the download or upload speeds specified in the definition of targeted service area by publishing an updated version of the statewide map. Such updates shall be made, to the extent updated maps and data sources are available at the time, no less frequently than prior to each round of grant applications solicited by the office pursuant to Iowa Code section 8B.11 as amended by 2019 Iowa Acts, House File 772. 20.4(3) As of November 30, 2016the date of the office’s publication of each version of the statewide map online at ocio.iowa.gov/broadband, targeted service area designations as shown on the statewide map shall be considered the office’s final determination and finding of whether a particular census block constitutes a targeted service area, unless a person or party successfully challenges the office’s determination pursuant to the appeals and contested case process outlined in this chapter, in which case the office will update the statewide map to reflect the outcome of such challenge(s). For the sake of clarity, failure to challenge the office’s determination and finding of whether a particular census block constitutes a targeted service area by filing a notice of appeal within the 20-day period established by subrule 20.5(1) shall render the office’s determination and finding with respect to that particular census block final and no longer subject to challenge. A party’s failure to challenge the office’s determination and finding of whether a particular census block constitutes a targeted service area by filing a notice of appeal within the 20-day period established by subrule 20.5(1) shall be deemed a failure to exhaust administrative remedies. 20.4(4) Until the office publishes an updated version of the statewide map in accordance with this rule, the as of date for purposes of determining whether any communications service provider offered and facilitated broadband service to the public at or above the download and upload speeds specified in the definition of targeted service area in accordance with Iowa Code section 8B.10(1) as amended by 2019 Iowa Acts, House File 772, and rule 129—20.3(8B,427) and this rule shall remain July 1, 2015, which is the as of date of the first statewide map. Thereafter, the as of date shall be the same as the as of date of the maps and corresponding data sources utilized by the office each time the office makes its renewed determination in accordance with Iowa Code section 8B.10(1) as amended by 2019 Iowa Acts, House File 772, and rule 129—20.3(8B,427) and this rule. ITEM 5. Amend subrule 20.5(3) as follows: 20.5(3) Notification of and input from affected persons or parties. Within 10ten calendar days of receipt of a notice of appeal, the office shall provide notification to any affected persons or parties by posting the notice of appeal at http://ocio.iowa.gov/ocio.iowa.gov/broadband. From the date of such posting, any affected persons or parties will have 20 calendar days to submit evidence and information in support of, or in opposition to, such appeal. Except to the extent not feasible, any such evidence and information shall be submitted by electronic mail (e-mail)email to cio@iowa.gov. To the extent electronic submission is not feasible, such evidence and information shall be mailed to: Office of the Chief Information Officer, Hoover State Office Building, Level B, 1305 East Walnut Street, Des Moines, Iowa 50319. If such evidence or information is submitted by mail, the evidence or information shall be accompanied by a written explanation of why electronic submission was not feasible. ITEM 6. Amend subrule 20.5(5) as follows: 20.5(5) Final agency decision. Following the internal review set forth in subrule 20.5(4), the office will issue a final agency decision stating the reasons for the office’s decision concerning the census blockblock(s) in question. In issuing the decision, the office shall consider the evidence and information submitted by all appellants related thereto, in conjunction with any other evidence and information submitted by any affected persons or parties pursuant to subrule 20.5(3), the maps and data sources originally utilized in rule 129—20.4(8B,427), and any other information deemed relevant by the office. The final agency decision will be posted online at http://ocio.iowa.gov/ocio.iowa.gov/broadband. The final agency decision shall become final unless within 30 days of such posting an appellant or an affected person or party that submitted evidence in support of, or in opposition to, the appeal files a request for a contested case proceeding pursuant to rule 129—20.6(8B,427). ITEM 7. Amend subparagraph 20.5(7)"a" as follows: (1) Fully complete and submit to the office Form 22 (available online at http://ocio.iowa.gov/ocio.iowa.gov/broadband); ITEM 8. Adopt the following new subrule 20.5(8): 20.5(8) Probative evidence and information. Examples of evidence and information the office would consider particularly probative of broadband service at or above the download and upload speeds specified in the definition of targeted service area as of the as of date for purposes of adjudicating an appeal of the office’s determination of whether a particular census block constitutes a targeted service area include: a. Signed attestations submitted to the office under penalty of perjury on forms provided by the office that the applicable census block(s) was or was not served as of the as of date with broadband service at or above the download and upload speeds specified in the definition of targeted service area. b. Bills or invoices provided to or received by customers in the applicable census block(s) which identify the specific download and upload speeds provided or received as of the as of date. ITEM 9. Amend 129—Chapter 20, implementation sentence, as follows: These rules are intended to implement Iowa Code sections 8B.1, 8B.10, 17A.3, and 427.1(40)as amended by 2019 Iowa Acts, House File 772. ITEM 10. Amend rule 129—21.2(8B,427) as follows:129—21.2(8B,427) Scope. This chapter applies to communications service providers who request certification pursuant to Iowa Code section 427.1(40) from the office that an installation of the broadband infrastructure is being performed or was completed in a targeted service area, and that the broadband infrastructure installed facilitates broadband service at or above 25 megabits per second of download speed and 3 megabits per second of upload speedwill facilitate broadband service at or above the download and upload speeds specified in the definition of targeted service area. ITEM 11. Amend rule 129—21.3(8B,427) as follows:129—21.3(8B,427) Application for certification. Applications for certification shall be completed and submittedby the means specified online at http://ocio.iowa.gov/ocio.iowa.gov/broadband. In order to receive certification from the office, applications must be filled out in their entirety. Communications service providers making application to the office will be required to certify that all of the information contained in the application is accurate. If it is later determined that any of the information contained in the application is inaccurate, the office may revoke the certification, in whole or in part. An application for certification shall include without limitation the following information:- The communications service provider’s legal and business namename(s) and addressaddress(es) and the name, address, telephone number, and e-mailemail address of the person authorized by the communications service provider to respond to inquiries regarding the application for certification;
- The census block number(s) as provided on the statewide map referenced in rule 129—20.4(8B,427) for the targeted service area(s) forming the basis of the application (i.e., the targeted service areaarea(s) in which the installation of the broadband infrastructure is being performed or was completedwill facilitate broadband service at or above the download and upload speeds specified in the definition of targeted service area);
- A description and overview of the specific technologies to be deployed (e.g., fixed wireless) that will facilitate broadband service at or above the download and upload speeds specified in the definition of targeted service area;
- 3Attestation that the broadband infrastructure installed in the targeted service area(s) facilitateswill facilitate broadband service at or above 25 megabits per second of download speed and 3 megabits per second of upload speedthe download and upload speeds specified in the definition of targeted service area; and
- 4Any other information as requested in the application.
Proposing rule making related to student loan default and providing an opportunity for public comment
The Educational Examiners Board hereby proposes to rescind Chapter 9, “Student Loan Default/Noncompliance with Agreement for Payment of Obligation,” and to amend Chapter 11, “Complaints, Investigations, Contested Case Hearings,” and Chapter 25, “Code of Professional Conduct and Ethics,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 272.2.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 272.2 and 2019 Iowa Acts, Senate File 304.Purpose and Summary The proposed amendments are intended to implement 2019 Iowa Acts, Senate File 304, which eliminates the suspension or revocation of a license issued to a person who is in default or is delinquent on repayment or a service obligation under federal or state postsecondary educational loans or public or private services-conditional postsecondary tuition assistance solely on the basis of such default or delinquency.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 282—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 Board no later than 4:30 p.m. on July 12, 2019. Comments should be directed to: Kimberly Cunningham Board of Educational Examiners Grimes State Office Building 400 East 14th Street Des Moines, Iowa 50319-0147 Fax: 515.281.7669 Email: kim.cunningham@iowa.govPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: July 10, 2019 1 p.m. Room 3 Southwest Grimes 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 actions are proposed:
ITEM 1. Rescind and reserve 282—Chapter 9. ITEM 2. Amend subparagraph 11.4(1)"e" as follows: (1) The executive director receives information that a practitioner:- Has been convicted of a felony criminal offense, or a misdemeanor criminal offense wherein the victim of the crime was 18 years of age or younger, and the executive director expressly determines within the complaint that the nature of the offense clearly and directly impacts the practitioner’s fitness or ability to retain the specific license(s) or authorization(s) which the practitioner holds; or
- Has been the subject of a founded report of child abuse placed upon the central registry maintained by the department of human services pursuant to Iowa Code section 232.71D and the executive director expressly determines within the complaint that the nature of the offense clearly and directly impacts the practitioner’s fitness or ability to retain the specific license(s) or authorization(s) which the practitioner holds; or
- Has not met a reporting requirement stipulated by Iowa Code section 272.15, Iowa Code section 279.43, 281—subrule 102.11(2), 282—Chapter 11, or 282—Chapter 25; or
- Has falsified a license or authorization issued by the board; or
- Has submitted false information on a license or authorization application filed with the board; or
- Does not hold the appropriate license for the assignment for which the practitioner is currently employed; or
- Has assigned another practitioner to perform services for which the practitioner is not properly licensed; or
- Has failed to comply with a board order as prohibited by 282—paragraph 25.3(7)“d”25.3(7)“c”; and
Proposing rule making related to temporary initial licensure and providing an opportunity for public comment
The Educational Examiners Board hereby proposes to amend Chapter 13, “Issuance of Teacher Licenses and Endorsements,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 272.2.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 272.2 and 2019 Iowa Acts, Senate File 159.Purpose and Summary The proposed amendment is intended to implement 2019 Iowa Acts, Senate File 159, which directs the Iowa Board of Educational Examiners to adopt rules to create a nonrenewable initial one-year license for applicants who have met all licensure requirements with the exception of a passing score on the required assessments.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 required assessment may not be waived except through the process outlined in 2019 Iowa Acts, Senate File 159, section 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 Board no later than 4:30 p.m. on July 12, 2019. Comments should be directed to: Kimberly Cunningham Board of Educational Examiners Grimes State Office Building 400 East 14th Street Des Moines, Iowa 50319-0147 Fax: 515.281.7669 Email: kim.cunningham@iowa.govPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: July 10, 2019 1 p.m. Room 3 Southwest Grimes 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 282—13.6(272) as follows:282—13.6(272) Specific requirements for an initial license. An initial license valid for a minimum of two years with an expiration date of June 30 may be issued to an applicant who meets the general requirements set forth in rule 282—13.5(272). 13.6(1) For an applicant applying pursuant to subrule 13.5(1), a nonrenewable temporary initial license may be issued if the applicant presents an assessment waiver issued by the director of the Iowa department of education within 30 days of the waiver issuance. The applicant must meet the assessment requirement in order to apply for full Iowa licensure. 13.6(2) For an applicant applying pursuant to subrule 13.5(2), a nonrenewable temporary initial license may be issued to the applicant if all requirements have been met with the exception of the assessments pursuant to subparagraph 13.5(2)“b”(2). The applicant must meet the assessment requirement in order to apply for full Iowa licensure. 13.6(3) The temporary initial license shall be valid for one year from the date of issuance. This license is nonrenewable and may not be extended. This license may only be issued if the applicant provides an affidavit from the administrator of an Iowa school district or accredited nonpublic school verifying that an offer of a teaching contract has been made and that the employer made every reasonable and good-faith effort to employ a fully licensed teacher for the specified subject and was unable to employ such a teacher.ARC 4504CEducational Examiners Board[282]Notice of Intended ActionProposing rule making related to abuse identification and reporting training and providing an opportunity for public comment
The Educational Examiners Board hereby proposes to amend Chapter 15, “Special Education Support Personnel Authorizations,” Chapter 19, “Evaluator Endorsement and License,” Chapter 20, “Renewals,” Chapter 22, “Authorizations,” Chapter 23, “Behind-the-Wheel Driving Instructor Authorization,” and Chapter 24, “Paraeducator Certificates,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 272.2.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 272.2 and sections 232.69 and 235B.16 as amended by 2019 Iowa Acts, House File 731.Purpose and Summary The proposed amendments are intended to implement 2019 Iowa Acts, House File 731, which amends Iowa Code sections 232.69 and 235B.16 by modifying the mandatory child abuse and dependent adult abuse identification and reporting training requirements.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 Training requirements for mandatory reporters are set forth in Iowa Code sections 232.69 and 235B.16 and therefore cannot be waived. 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 July 12, 2019. Comments should be directed to: Kimberly Cunningham Board of Educational Examiners Grimes State Office Building 400 East 14th Street Des Moines, Iowa 50319 Fax: 515.281.7669 Email: kim.cunningham@iowa.govPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: July 10, 2019 1 p.m. Room 3 Southwest Grimes 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 actions are proposed:
ITEM 1. Amend subparagraph 15.7(6)"d" as follows: (2) Submit documentation of completion of the child and dependent adult abuse training approved by the state abuse education review paneltrainings pursuant to 282—subrule 20.3(4). A waiver of this requirement may apply under the following conditions with appropriate documentation of any of the following:- A person is engaged in active duty in the military service of this state or of the United States.
- The application of this requirement would impose an undue hardship on the person for whom the waiver is requested.
- A person is practicing a licensed profession outside this state.
- A person is otherwise subject to circumstances that would preclude the person from satisfying the approved child and dependent adult abuse training in this state.
- A person is engaged in active duty in the military service of this state or of the United States.
- The application of this requirement would impose an undue hardship on the person for whom the waiver is requested.
- A person is practicing a licensed profession outside this state.
- A person is otherwise subject to circumstances that would preclude the person from satisfying the approved child and dependent adult abuse training in this state.
- The person has previously renewed a license or another authorization issued by the board of educational examiners and, at that time, reported the completion, within the past five years, of child and dependent adult abuse training approved by the state abuse education review panel.
- The person is engaged in active duty in the military service of this state or of the United States.
- The person has previously renewed a license or another authorization issued by the board of educational examiners and, at that time, reported the completion, within the past five years, of child and dependent adult abuse mandatory reporter training approved by the state abuse education review panel.
Proposing rule making related to preservice substitute authorization and providing an opportunity for public comment
The Educational Examiners Board hereby proposes to amend Chapter 22, “Authorizations,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 272.2.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 272.2.Purpose and Summary The proposed amendments would create a new preservice substitute authorization to allow certain teacher preparation candidates to serve as substitute teachers. 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 282—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 Board no later than 4:30 p.m. on July 12, 2019. Comments should be directed to: Kimberly Cunningham Board of Educational Examiners Grimes State Office Building 400 East 14th Street Des Moines, Iowa 50319-0147 Fax: 515.281.7669 Email: kim.cunningham@iowa.govPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: July 10, 2019 1 p.m. Room 3 Southwest Grimes 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. Adopt the following new subrule 22.2(4): 22.2(4) Preservice substitute authorization. A nonrenewable preservice substitute authorization may be issued to applicants who do not meet the requirements in subrule 22.2(1) but who are enrolled in a state-approved Iowa teacher preparation program. a. Requirements.Eligible applicants for the preservice substitute authorization shall meet the following requirements: (1) Recommendation from the designated recommending official at the Iowa institution where the applicant is enrolled as a teacher preparation candidate. The recommending official will verify the following for each applicant:- Full admission into a teacher preparation program, which must include passing scores on entry assessments.
- Junior or senior standing.
- Exemplary classroom readiness as identified by the teacher preparation program.
Proposing rule making related to flood recovery fund and providing an opportunity for public comment
The Homeland Security and Emergency Management Department hereby proposes to amend Chapter 14, “Flood Mitigation Program,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in 2019 Iowa Acts, Senate File 638.State or Federal Law Implemented This rule making implements, in whole or in part, 2019 Iowa Acts, Senate File 638.Purpose and Summary This proposed rule making amends Chapter 14 by adding a new rule that deals with the creation of the Flood Recovery Fund. The fund will be administered by the Flood Mitigation Board. The fund will provide financial support to political subdivisions of the state that have experienced or will experience expenses related to flood response, flood recovery, or flood mitigation. The proposed new rule provides details on eligible applicants, eligible projects, and the application process. This proposed rule making was approved by the Flood Mitigation Board on May 20, 2019.Fiscal Impact The funds will be used to support eligible political subdivisions as they seek to recover and rebuild from the recent flood events. At this point the Department cannot determine the fiscal impact to individual political subdivisions until applications are processed.Jobs Impact It is anticipated that this funding will enable eligible political subdivisions to more fully recover from the impacts of recent flooding events, thereby improving the short-term and long-term sustainability of the political subdivisions.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. 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 July 9, 2019. Comments should be directed to: John Benson Department of Homeland Security and Emergency Management 7900 Hickman Road, Suite 500 Windsor Heights, Iowa 50265 Email: john.benson@iowa.govPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: July 9, 2019 10 to 11 a.m. Cyclones Conference Room, Suite 500 7900 Hickman Road Windsor Heights, 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).Emergency Rule Making Adopted by Reference This proposed rule making is also published herein as an Adopted and Filed Emergency rule making (see ARC 4499C, IAB 6/19/19). 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 4496CInsurance Division[191]Notice of Intended ActionProposing rule making related to residential and motor vehicle services contracts and providing an opportunity for public comment
The Insurance Division (Division) hereby proposes to amend Chapter 103, “Residential Service Contracts,” and to rescind Chapter 104, “Motor Vehicle Service Contracts,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 516E.7 and 523C.10 and 2019 Iowa Acts, Senate File 619, section 18.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapters 516E and 523C and 2019 Iowa Acts, Senate File 619.Purpose and Summary These proposed amendments augment 2019 Iowa Acts, Senate File 619, which, in part, updates provisions regarding the licensing of residential service companies and motor vehicle service companies that enter into residential service contracts and motor vehicle service contracts with consumers. This rule making is intended to provide guidance to residential service companies and motor vehicle service companies regarding how their current license or registration status will be administered by the Division now that the new law has become effective. The new law took effect upon enactment, according to 2019 Iowa Acts, Senate File 619, section 19. The Governor signed the law, thereby making it effective, on May 16, 2019.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 These rules do not include a provision for the waiver of a rule because the Division’s general waiver rules of 191—Chapter 4 apply. 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 Division no later than 4:30 p.m. on July 16, 2019. 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 A public hearing at which persons may present their views orally or in writing will be held as follows: July 16, 2019 2 to 3 p.m. Division Offices, Fourth Floor Two Ruan Center 601 Locust Street Des Moines, Iowa 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. Any persons who intend to attend the public hearing and have special requirements, such as those relating to hearing or mobility impairments, should contact the 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 4495C, IAB 6/19/19). 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 4497CLabor Services Division[875]Notice of Intended ActionProposing rule making related to division organization and statutory and technical changes and providing an opportunity for public comment
The Labor Commissioner hereby proposes to amend Chapter 1, “Description of Organization and Procedures Before the Division,” to rescind Chapter 2, “IOSH Enforcement, IOSH Research and Statistics, IOSH Consultation and Education,” and to amend Chapter 4, “Recording and Reporting Occupational Injuries and Illnesses,” Chapter 8, “Consultative Services,” Chapter 32, “Child Labor,” Chapter 35, “Wage Payment Collection,” Chapter 38, “Employment Agency Licensing,” Chapter 155, “Asbestos Removal and Encapsulation,” and Chapter 156, “Bidder Preferences in Government Contracting,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 73A.21, 88.5, 88B.3, 91A.9, 92.21 and 94A.5.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapters 17A, 22, 73A, 88, 88B, 91A, 92 and 94A.Purpose and Summary The proposed amendments would update rules to reflect statutory changes, new phone numbers, a new office location, reorganization of the division, and revision of forms; rescind unnecessary rules; and amend the existing requirement for advance notice of an asbestos abatement project.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 Division for a waiver of the discretionary provisions, if any, pursuant to 875—Chapter 1 or 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 Division no later than 4:30 p.m. on July 16, 2019. Comments should be directed to: Kathleen Uehling Labor Services Division 150 Des Moines Street Des Moines, Iowa 50319Public Hearing If requested, a public hearing at which persons may present their views orally or in writing will be held as follows: July 16, 2019 9 a.m. 150 Des Moines 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). The following rule-making actions are proposed:
ITEM 1. Rescind rule 875—1.3(91) and adopt the following new rule in lieu thereof:875—1.3(91) Description of the division. General authority for the division is set forth in Iowa Code chapter 91. The labor commissioner is the executive head of the division and is appointed by the governor and confirmed by the senate. The division also includes employees under the supervision of the commissioner, the elevator safety board, and the boiler and pressure vessel board. 1.3(1) The function of the division is to administer and enforce the following: a. Bidder preference in government construction contracts as set forth in Iowa Code section 73A.21; b. Collection of payments owed to the workers’ compensation second injury fund as set forth in Iowa Code section 85.68; c. The occupational safety and health program as set forth in Iowa Code chapter 88; d. The amusement ride safety program as set forth in Iowa Code chapter 88A; e. The asbestos removal and encapsulation program as set forth in Iowa Code chapter 88B; f. The boiler and unfired steam pressure vessel program as set forth in Iowa Code chapter 89; g. The conveyance safety program as set forth in Iowa Code chapter 89A; h. The hazardous chemicals risks right to know program as set forth in Iowa Code chapter 89B; i. The boxing, mixed martial arts, and wrestling program as set forth in Iowa Code chapter 90A; j. The wage payment collection program as set forth in Iowa Code chapter 91A; k. The construction contractor registration and bonding program as set forth in Iowa Code chapter 91C; l. The minimum wage program as set forth in Iowa Code chapter 91D; m. The employment of non-English speaking employees program as set forth in Iowa Code chapter 91E; n. The child labor program as set forth in Iowa Code chapter 92; and o. The employment agency licensing program as set forth in Iowa Code chapter 94A. 1.3(2) Correspondence and payments may be mailed to Division of Labor Services, 1000 East Grand Avenue, Des Moines, Iowa 50319. The telephone number for the division is (515)242-5870. The division’s office is located at 150 Des Moines Street, Des Moines, Iowa. The division’s website is www.iowadivisionoflabor.gov. ITEM 2. Rescind subrule 1.12(1) and adopt the following new subrule in lieu thereof: 1.12(1) Filing a request. A request for access to a record may be sent to the division at 1000 East Grand Avenue, Des Moines, Iowa 50319, or open.records@iwd.iowa.gov. A request for access may be sent via facsimile to (515)281-7995 or may be delivered to the division’s office at 150 Des Moines Street, Des Moines, Iowa. If a request for access to a record is misdirected, division personnel will promptly forward the request to the appropriate person within the division. ITEM 3. Amend paragraphs 1.18(2)"h" to 1.18(2)"j" as follows: h. Records or portions of records containing attorney work product or attorney-client communications, or which are otherwise privileged pursuant to Iowa Code sections 22.7(4), 622.10, and 622.11, Iowa R.C.P. 122(c), Fed. R. Civ. P. 26(b)(3), rules of; rules of civil procedure, evidence,and professional responsibility for attorneys; and case law, and the Code of Professional Responsibility. i. Minutes of closed meetings of a government body pursuant to Iowa Code section 21.5(4)21.5. j. Information protected by 42 U.S.C. 11044(a) or by Iowa Code sections 89B.12,and 89B.13, and 91.12. ITEM 4. Rescind and reserve paragraph 1.18(2)"l". ITEM 5. Rescind rule 875—1.21(22,91) and adopt the following new rule in lieu thereof:875—1.21(22,91) Notice to suppliers of information. The division shall notify persons completing agency forms of the use that will be made of personal information, which persons outside the agency might routinely be provided this information, which parts of the requested information are required and which are optional, and the consequences of a failure to provide the information requested. This notice may be given in these rules, on the form used to collect the information, on a separate fact sheet or letter, in brochures, in formal agreements, in contracts, in handbooks, in manuals, verbally, or by other appropriate means. Notice need not be given in connection with discovery requests in litigation or administrative proceedings, subpoenas, investigations of possible violations of law, or similar demands for information. ITEM 6. Rescind and reserve subrule 1.23(1). ITEM 7. Amend subrule 1.23(16) as follows: 1.23(16) Personally identifiable information concerning private employment agency licensees is collected pursuant to Iowa Code chapter 9594A. The information includes biographical data and information about the private employment agency licenselicensee. ITEM 8. Amend paragraph 1.35(3)"a" as follows: a. Applicability.This subrule applies only to those oral rule-making proceedings in which an opportunity to make oral presentations is authorized or required by Iowa Code section 17A.4(1)“b” as amended by 1998 Iowa Acts, chapter 1202, section 8, or this chapter. ITEM 9. Amend subrule 1.35(5) as follows: 1.35(5) Accessibility. The division will schedule oral proceedings in rooms accessible to and functional for persons with physical disabilities. Persons who have special requirements should contact the division’s rules coordinator at (515)281-3445 in advance to arrange access or other needed services. ITEM 10. Amend subrule 1.36(1) as follows: 1.36(1) Definition of small business. A “small business” is defined in 1998 Iowa Acts, chapter 1202, section 10(7)Iowa Code section 17A.4A(8). ITEM 11. Rescind and reserve subrules 1.36(2) and 1.36(3). ITEM 12. Amend subrule 1.36(4), introductory paragraph, as follows: 1.36(4) Qualified requesters for regulatory analysis—economic impact. The division will issue a regulatory analysis of a proposed rule that conforms to the requirements of 1998 Iowa Acts, chapter 1202, section 10(2a)Iowa Code section 17A.4A, after a proper request from: ITEM 13. Amend subrule 1.36(5), introductory paragraph, as follows: 1.36(5) Qualified requesters for regulatory analysis—business impact. The division will issue a regulatory analysis of a proposed rule that conforms to the requirements of 1998 Iowa Acts, chapter 1202, section 10(2b)Iowa Code section 17A.4A, after a proper request from: ITEM 14. Amend subrules 1.36(6) to 1.36(11) as follows: .(6) Time period for analysis. Upon receipt of a timely request for a regulatory analysis the division will adhere to the time lines described in 1998 Iowa Acts, chapter 1202, section 10(4)Iowa Code section 17A.4A. .(7) Contents of request. A request for a regulatory analysis is made when it is mailed or delivered to the division. The request shall be in writing and satisfy the requirements of 1998 Iowa Acts, chapter 1202, section 10(1)Iowa Code section 17A.4A. .(8) Contents of concise summary. The contents of the concise summary shall conform to the requirements of 1998 Iowa Acts, chapter 1202, section 10(4,5)Iowa Code section 17A.4A. .(9) Publication of a concise summary. The division will make available, to the maximum extent feasible, copies of the published summary in conformance with 1998 Iowa Acts, chapter 1202, section 10(5)Iowa Code section 17A.4A. .(10) Regulatory analysis contents—rules review committee or rules coordinator. When a regulatory analysis is issued in response to a written request from the administrative rules review committee, or the administrative rules coordinator, the regulatory analysis will conform to the requirements of 1998 Iowa Acts, chapter 1202, section 10(2a)Iowa Code section 17A.4A, unless a written request expressly waives one or more of the items listed in the section. .(11) Regulatory analysis contents—substantial impact on small business. When a regulatory analysis is issued in response to a written request from the administrative rules review committee, the administrative rules coordinator, at least 25 persons signing that request who each qualify as a small business or by an organization representing at least 25 small businesses, the regulatory analysis shall conform to the requirements of 1998 Iowa Acts, chapter 1202, section 10(2b)Iowa Code section 17A.4A. ITEM 15. Rescind subrule 1.37(1) and adopt the following new subrule in lieu thereof: 1.37(1) The division will prepare and submit a fiscal impact statement to satisfy the requirements of Iowa Code section 17A.4(4) and section 25B.6 if a notice of intended action or a rule filed without notice necessitates new annual expenditures of at least $100,000 or combined expenditures of at least $500,000 within five years by all affected persons. ITEM 16. Rescind rule 875—1.40(17A) and adopt the following new rule in lieu thereof:875—1.40(17A) Exemptions from public rule-making procedures. 1.40(1) Omission of notice and comment. Pursuant to Iowa Code section 17A.4(3)“a,” the division may adopt a rule without publishing advance notice of intended action in the Iowa Administrative Bulletin and without providing for public comment when the statute so provides or if the administrative rules review committee approves. 1.40(2) Providing for notice and comment for a rule adopted without notice and comment. The commissioner may begin a standard rule-making proceeding for the adoption of a rule that is identical or similar to a rule adopted without notice and comment. After notice under this subrule, the commissioner may take any lawful action, including amendment, adoption, or repeal of the rule. ITEM 17. Amend paragraph 1.42(1)"b" as follows: b. A brief explanation of the principal reasons for the rule-making action if such reasons are required by 1998 Iowa Acts, chapter 1202, section 8,Iowa Code section 17A.4(2) or the division in its discretion decides to include the reasons; ITEM 18. Amend paragraph 1.42(1)"f" as follows: f. A brief explanation of the principal reasons for the failure to provide for waivers to the rule if no waiver provision is included and a brief explanation of any waiver or special exceptions provided in the rule if such reasons are required by 1998 Iowa Acts, chapter 1202, section 8,Iowa Code section 17A.4(2) or the division in its discretion decides to include such reasons; and ITEM 19. Amend subrule 1.43(4) as follows: 1.43(4) Significant writtenWritten criticisms. Written criticisms of a rule may be submitted to the division and directedmailed to the Division of Labor Services, Division Rules Coordinator, 1000 East GrandAvenue, Des Moines, Iowa 50319. A criticism of a specific rule must be more than a mere lack of understanding of a rule or a dislike regarding the rule. To constitute a criticism of a rule, the criticism must be in writing, state it is a criticism of a specific rule, state the rule number, and provide reasons for criticism of the rule. All written rule criticisms received will be kept in a separate record for a period of five years. ITEM 20. Amend subrule 1.52(3), introductory paragraph, as follows: 1.52(3) A petition for intervention shall be filed at themailed to Division of Labor Services, 1000 East Grand Avenue, Des Moines, Iowa 50319. The petition is deemed filed when it is received by that office. The division will provide the petitioner with a file-stamped copy of the petition for intervention if the petitioner provides an extra copy for this purpose. A petition for intervention must be typewritten or legibly handwritten in inklegible and must substantially conform to the following form: ITEM 21. Amend rule 875—1.54(17A) as follows:875—1.54(17A) Inquiries. Inquiries concerning the status of a declaratory order proceeding may be mademailed to the Declaratory Orders Coordinator, Division of Labor Services, 1000 East Grand Avenue, Des Moines, Iowa 50319. ITEM 22. Amend subrule 1.57(1) as follows: 1.57(1) Within the time allowed by 1998 Iowa Acts, chapter 1202, section 13(5)Iowa Code section 17A.9, after receipt of a petition for a declaratory order, the labor commissioner or designee shall take action on the petition as required by 1998 Iowa Acts, chapter 1202, section 13(5)Iowa Code section 17A.9. ITEM 23. Amend subrule 1.58(1), introductory paragraph, as follows: 1.58(1) The division shall not issue a declaratory order where prohibited by 1998 Iowa Acts, chapter 1202, section 13(1),Iowa Code section 17A.9 and may refuse to issue a declaratory order on some or all questions raised for the following reasons: ITEM 24. Amend rule 875—1.66(17A), definition of “Contested case,” as follows: "Contested case" means a proceeding defined by Iowa Code section 17A.2(5) and includes a no factual dispute contested case under 1998 Iowa Acts, chapter 1202, section 14without a factual dispute pursuant to Iowa Code section 17A.10A. ITEM 25. Amend paragraph 1.69(2)"j" as follows: j. Notification of the time period in which a party may request, pursuant to 1998 Iowa Acts, chapter 1202, section 15(1),Iowa Code section 17A.11 and rule 875—1.70(17A), that the presiding officer be an administrative law judge. ITEM 26. Amend subrule 1.72(2) as follows: 1.72(2) The term “personally investigated” means taking affirmative steps to interview witnesses directly or to obtain documents or other information directly. The term “personally investigated” does not include general direction and supervision of assigned investigators, unsolicited receipt of information which is relayed to assigned investigators, review of another person’s investigative work product in the course of determining whether there is probable cause to initiate a proceeding, or exposure to factual information while performing other division functions, including fact gathering for purposes other than investigation of the matter which culminates in a contested case. Factual information relevant to the merits of a contested case received by a person who later serves as presiding officer in that case shall be disclosed if required by 1998 Iowa Acts, chapter 1202, section 19(3),Iowa Code section 17A.17 and subrules 1.72(3) and 1.86(9). ITEM 27. Amend subrule 1.72(4) as follows: 1.72(4) If a party asserts disqualification on any appropriate ground, including those listed in subrule 1.72(1), the party shall file a motion supported by an affidavit pursuant to 1998 Iowa Acts, chapter 1202, section 19(7)Iowa Code section 17A.17. The motion must be filed as soon as practicable after the reason alleged in the motion becomes known to the party. If, during the course of the hearing, a party first becomes aware of evidence of bias or other grounds for disqualification, the party may move for disqualification but must establish the grounds by the introduction of evidence into the record.If the presiding officer determines that disqualification is appropriate, the presiding officer or other person shall withdraw. If the presiding officer determines that withdrawal is not required, the presiding officer shall enter an order to that effect. A party asserting disqualification may seek an interlocutory appeal under rule 875—1.88(17A) and seek a stay under rule 875—1.93(17A). ITEM 28. Amend subrule 1.75(4) as follows: 1.75(4) When filing is required. After the notice of hearing, all pleadings, motions, documents or other papers in a contested case proceeding shall be filed withmailed to the division at 1000 East Grand Avenue, Des Moines, Iowa 50319. All pleadings, motions, documents or other papers that are required to be served upon a party shall be filed simultaneously with the division. ITEM 29. Amend subrule 1.93(2) as follows: 1.93(2) When granted. In determining whether to grant a stay, the presiding officer or the commissioner shall consider the factors listed in 1998 Iowa Acts, chapter 1202, section 23(5c)Iowa Code section 17A.19. ITEM 30. Amend subrule 1.95(1), introductory paragraph, as follows: 1.95(1) Necessary emergency action. To the extent necessary to prevent or avoid immediate danger to the public health, safety, or welfare, and consistent with the Constitution and other provisions of law, the division may issue a written order in compliance with 1998 Iowa Acts, chapter 1202, section 21,Iowa Code section 17A.18A to suspend a license in whole or in part, order the cessation of any continuing activity, order affirmative action, or take other action within the jurisdiction of the division by emergency adjudicative order. Before issuing an emergency adjudicative order the division shall consider factors including, but not limited to, the following: ITEM 31. Amend subrule 1.101(1) as follows: 1.101(1) These rules provide general procedures for waivers and variances from division rules. Specific waiver or variance procedures must be followed when applicable. NoExcept where specific statutory authority is granted, no waiver or variance may be granted from a requirement or duty imposed by statute or when granting a waiver or variance would cause a denial of federal funds or be inconsistent with federal statute or regulation. Any waiver or variance must be consistent with statute. These waiver and variance procedures do not apply to rules that merely define the meaning of a statute or other provision of law unless the division possesses delegated authority to bind the courts with its rules. ITEM 32. Amend rule 875—1.102(17A,91), introductory paragraph, as follows:875—1.102(17A,91) Petitions. If the petition for waiver or variance relates to a pending contested case, the petition shall be filed in the contested case proceeding. Other petitions must be submitted in writingmailed to Labor Commissioner,Division of Labor Services, 1000 E.East Grand Avenue, Des Moines, Iowa 50319. In either case, the petition shall include the following information where applicable: ITEM 33. Amend 875—Chapter 1, implementation sentence, as follows: These rules are intended to implement Iowa Code chapters 17A, 22 and 91, 2000 Iowa Acts, House File 2206, and Executive Order Number Eleven. ITEM 34. Rescind and reserve 875—Chapter 2. ITEM 35. Amend paragraph 4.3(2)"a" as follows: a. Completing the incident report form available at www.iowaosha.gov and faxing the completed form to (515)242-5076(515)725-2024 or sending the completed form to osha@iwd.iowa.gov; ITEM 36. Amend paragraph 4.3(2)"c" as follows: c. Visiting 1000 E. Grand Avenue150 Des Moines Street, Des Moines, Iowa. ITEM 37. Amend rule 875—8.1(88), introductory paragraph, as follows:875—8.1(88) Purpose and scope. This chapter contains procedures for the division of labor services, bureau of consultation and education, to provide consultation services to private and public employers. Employers seeking information regarding consultative services should visit http://www.iowaworkforce.org/labor/iosh/consultation/index.htmwww.iowaosha.gov or telephone (515)281-7629. ITEM 38. Amend rule 875—32.2(92), implementation sentence, as follows: This rule is intended to implement Iowa Code chapter 92 as amended by 2015 Iowa Acts, House File 397. ITEM 39. Amend paragraph 32.11(1)"b" as follows: b. Each day that a child works without a permit, works on a prohibited daytoo many hours, works at a prohibited time, or works in a prohibited occupation shall be a separate violation. ITEM 40. Rescind and reserve paragraph 32.11(3)"b". ITEM 41. Amend subrule 32.11(4), introductory paragraph, as follows: 32.11(4) TimeHours violations. If a child is killed while working on a prohibited day or at a prohibited timeor for excessive hours, the civil penalty shall be $10,000 for each instance. OtherwiseFor other time or hour violations, the penalties set forth in this subrule shall be applied. ITEM 42. Rescind paragraph 32.11(4)"b" and adopt the following new paragraph in lieu thereof: b. For any time or hours violation not described elsewhere in this subrule, the following civil penalty schedule shall apply:InstancePenaltyFirst$100 civil penaltySecond$250 civil penaltyThird$500 civil penaltyFourth$1,000 civil penaltyFifth$2,500 civil penaltySixth$5,000 civil penaltySeventh$7,500 civil penaltyEach additional instance$10,000 civil penalty ITEM 43. Amend subrule 35.3(1) as follows: 35.3(1) Wage claim form. A wage claim form shall be available upon requestis available at www.iowawage.gov. An aggrieved employee shall supply such information as required by the commissioner to commence the investigation of a claim. The claimant shall certify by signature that such information is true to the best of the claimant’s knowledge and belief. A claim for wages shallmay be made by submitting a complete wage claim form to Division of Labor Services, 1000 East Grand Avenue, Des Moines, Iowa 50319sent to the division office by mail, facsimile, or email. ITEM 44. Amend paragraph 38.8(2)"c" as follows: c. All contracts and fee schedules must clearly state that the agency is licensed by the labor commissioner and that inquiries may be submittedmade via mail to the Division of Labor Services, 1000 East Grand Avenue, Des Moines, Iowa 50319,or by telephone (515)281-3606to (515)242-5870. ITEM 45. Rescind the definition of “Asbestos project” in rule 875—155.1(88B). ITEM 46. Amend subrule 155.2(1) as follows: 155.2(1) Application. To apply for or to renew a permit, a business entity shallcomplete and submit a completed application, Form 309-6504, tothe form provided by the division. All requested applicable information and attachments must be provided. A $500 nonrefundable application fee shall accompany each permit application. ITEM 47. Amend rule 875—155.4(88B), introductory paragraph, as follows:875—155.4(88B) Asbestos project records. TheIn addition to meeting requirements set forth in the occupational safety and health standards of 29 CFR 1910.1020, the permittee shall keep a record of each asbestos project it performs and shall make the record available to the division at any reasonable time. Records required by this rule shall be kept for at least six years. The records shall include: ITEM 48. Rescind and reserve subrules 155.4(7) to 155.4(9). ITEM 49. Amend paragraph 155.5(3)"d" as follows: d. The anticipatedscheduled dates of the project’s start and end. ITEM 50. Amend subrule 155.6(1) as follows: 155.6(1) FormsApplication form. Iowa Form 309-2068 must be used for all new and renewal asbestos license applications. The second page of the form is the respirator fit test and the third page is a physician’s certification. Forms from other states may not be substituted for the Iowa form or any part thereof.Except as noted in this subrule, the applicant must complete and submit the entire form provided by the division with the necessary attachments. Respirator fit tests and medical examinations must have occurred within the past 12 months. Only worker and contractor/supervisor license applicants must submit the respirator fit test and physician’s certification forms. Photocopies of the forms shall not be accepted. ITEM 51. Amend subrule 156.4(1) as follows: 156.4(1) Complaints. Any person with information regarding a violation of the Act may submit a written complaint to the commissioner. Any complaint must provide the information required pursuant to subrule 156.4(2) or as much of such information as is reasonably practicable under the circumstances. The completed written complaint form shall be submittedmailed to the commissioner at Labor Services Division, 1000 East Grand Avenue, Des Moines, Iowa 50319.ARC 4500CRevenue Department[701]Notice of Intended ActionProposing rule making related to like-kind exchanges of personal property 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, Iowa Code section 422.7; 2018 Iowa Acts, Senate File 2417; and 2019 Iowa Acts, House File 779.Purpose and Summary These proposed rules are intended to implement the temporary nonconformity of Iowa’s tax laws to the federal repeal of gain or loss deferral from exchanges of like-kind personal property in tax year 2018, and to implement 2018 Iowa Acts, Senate File 2417, and 2019 Iowa Acts, House File 779, which, in part, provide an election to taxpayers to defer gain or loss from exchanges of like-kind personal property in tax year 2019. Fiscal Impact This rule making has no fiscal impact to the State of Iowa beyond that of the legislation it is intended to implement. The Fiscal Note for 2018 Iowa Acts, Senate File 2417, does not provide a separate estimate for the cost of these specific provisions, only an aggregate impact of all income tax changes included in that legislation. The Department can provide additional information about the fiscal impacts of that legislation related to these specific provisions upon request. The Fiscal Note for 2019 Iowa Acts, House File 779, estimates that the Iowa Code changes implemented by this rule making will decrease General Fund revenues by $200,000 in FY 2019 and $700,000 in FY 2020. 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 July 9, 2019. Comments should be directed to: Michael Mertens Iowa Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.281.5162 Email: michael.mertens@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 rule 701—40.82(422):701—40.82(422) Like-kind exchanges of personal property completed after December 31, 2017, but before tax periods beginning on or after January 1, 2020. 40.82(1) In general. Public Law 115-97, Section 13303, repealed the deferral of gain or loss from exchanges of like-kind personal property for federal purposes under Section 1031 of the Internal Revenue Code. This federal repeal applies to exchanges completed after December 31, 2017, unless the taxpayer began the exchange by transferring personal property or receiving replacement personal property on or before that date. Iowa did not conform to this federal repeal for Iowa individual income tax purposes for tax periods beginning before January 1, 2019. For tax years beginning on or after January 1, 2019, but before January 1, 2020, Iowa generally conforms to the federal treatment of gain or loss from exchanges of like-kind personal property, but eligible taxpayers may elect the treatment that applied under prior federal law for Iowa purposes. For tax years beginning on or after January 1, 2020, Iowa fully conforms to the federal treatment for these exchanges, and no special election is available. This rule governs exchanges of like-kind personal property completed after December 31, 2017, but before tax periods beginning on or after January 1, 2020. This rule does not apply to exchanges completed during any tax year beginning on or after January 1, 2020. 40.82(2) Qualification. Section 1031 of the Internal Revenue Code in effect on December 21, 2017, and any applicable federal regulations govern whether transactions involving the disposition and acquisition of personal property qualify for Iowa individual income tax purposes as a like-kind exchange of personal property subject to the deferral of gain or loss, and also govern the date and tax period during which an exchange is considered completed. The treatment of such transactions as a like-kind exchange for Iowa individual income tax purposes is either mandatory or permissive depending on the date the like-kind exchange is completed. a. Like-kind exchanges completed after December 31, 2017, but before tax periods beginning on or after January 1, 2019.Transactions involving the disposition and acquisition of personal property that qualify under this subrule as a like-kind exchange completed after December 31, 2017, but before tax periods beginning on or after January 1, 2019, are required to be treated as a like-kind exchange for Iowa individual income tax purposes. b. Like-kind exchanges completed during tax periods beginning on or after January 1, 2019, but before January 1, 2020.For tax periods beginning on or after January 1, 2019, Iowa is conformed to the federal repeal of deferral of gain or loss from exchanges of like-kind personal property, so the federal and Iowa treatment of such transactions under Section 1031 of the Internal Revenue Code will generally be the same. However, transactions involving the disposition and acquisition of personal property that qualify under this subrule as a like-kind exchange completed during tax periods beginning on or after January 1, 2019, but before January 1, 2020, may at the election of the taxpayer be treated as a like-kind exchange for Iowa individual income tax purposes. The election is made by completing the necessary worksheets and forms and making the required adjustments on the Iowa return as described in subrule 40.82(3). No special attachment or statement is required. The election only applies to the transactions involved in the like-kind exchange, and the taxpayer may elect or not elect to treat other qualifying transactions as a like-kind exchange for Iowa purposes. 40.82(3) Calculation and Iowa adjustments. A taxpayer required to or electing to treat qualifying transactions as a like-kind exchange for Iowa tax purposes must make certain Iowa calculations and adjustments on forms and worksheets made available on the department’s website. The IA 8824 Worksheet described in this subrule need not be included with the Iowa return but must be kept with the taxpayer’s records. The taxpayer is responsible for providing documentation at the department’s request to substantiate a like-kind exchange under this rule. a. Like-kind exchange calculation.The taxpayer must complete Parts I and II of the IA 8824 Worksheet to compute the Iowa recognized gain, if any, the Iowa deferred gain or loss, and the Iowa basis of the like-kind personal property received in the like-kind exchange. b. Iowa nonconformity adjustment. (1) The taxpayer must complete Part III of the IA 8824 Worksheet to adjust for the difference between any recognized Iowa gain from the exchange as calculated on the IA 8824 Worksheet, Part II, and any gain or loss (including gain or loss recaptured as ordinary income) recognized on the taxpayer’s federal return. (2) If the total recognized federal gain is reported using the installment sale method under Section 453 of the Internal Revenue Code, the total amount of any Iowa nonconformity adjustment related to that federal gain must be claimed over the same installment period, and the proportion of the total Iowa nonconformity adjustment claimed for each tax year shall equal the same proportion that the federal gain reported for that tax year bears to the total amount of federal gain that will ultimately be reported for all tax years resulting from the disposition of the personal property. The taxpayer must complete an IA 8824 Worksheet for each tax year that an Iowa nonconformity adjustment is claimed. c. Cost recovery adjustments. (1) The taxpayer must complete the IA 4562A to account for any differences between the federal and Iowa cost recovery deductions related to the like-kind personal property involved in the like-kind exchange, including if the taxpayer’s basis in the like-kind personal property received is different for federal and Iowa purposes, or if the taxpayer claimed additional first-year depreciation or a section 179 deduction for federal purposes on the like-kind property received in the exchange. See rule 701—40.60(422) for requirements related to the disallowance of additional first-year depreciation for Iowa individual income tax purposes. See rule 701—40.65(422) for the section 179 limitations imposed under the Iowa individual income tax. (2) Treasury Regulation §1.168(i)-6 prescribes rules related to the calculation of depreciation for certain assets involved in a like-kind exchange, but a taxpayer may elect to not have those rules apply pursuant to Treasury Regulation §1.168(i)-6(i). A taxpayer may choose to make a similar election under Treasury Regulation §1.168(i)-6(i) for Iowa tax purposes with regard to a like-kind exchange under this rule if the personal property otherwise would have qualified for such federal election notwithstanding the fact that no like-kind exchange occurred for federal purposes or the fact that no election was actually made for federal tax purposes in accordance with Treasury Regulation §1.168(i)-6(j). The election is made by calculating depreciation for Iowa tax purposes on the personal property involved in the like-kind exchange using the method described in Treasury Regulation §1.168(i)-6(i) on the timely filed Iowa return, including extensions, for the same tax year that the like-kind exchange was completed. No special attachment or statement is required. This rule is intended to implement Iowa Code section 422.7 as amended by 2018 Iowa Acts, chapter 1161 [Senate File 2417]. ITEM 2. Adopt the following new rule 701—53.27(422):701—53.27(422) Like-kind exchanges of personal property completed after December 31, 2017, but before tax periods beginning on or after January 1, 2020. 53.27(1) In general. Public Law 115-97, Section 13303, repealed the deferral of gain or loss from exchanges of like-kind personal property for federal purposes under Section 1031 of the Internal Revenue Code. This federal repeal applies to exchanges completed after December 31, 2017, unless the taxpayer began the exchange by transferring personal property or receiving replacement personal property on or before that date. Iowa did not conform to this federal repeal for Iowa corporation income tax purposes for tax periods beginning before January 1, 2019. For tax years beginning on or after January 1, 2019, but before January 1, 2020, Iowa generally conforms to the federal treatment of gain or loss from exchanges of like-kind personal property, but eligible taxpayers may elect the treatment that applied under prior federal law for Iowa purposes. For tax years beginning on or after January 1, 2020, Iowa fully conforms to the federal treatment for these exchanges, and no special election is available. This rule governs exchanges of like-kind personal property completed after December 31, 2017, but before tax periods beginning on or after January 1, 2020. This rule does not apply to exchanges completed during any tax year beginning on or after January 1, 2020. 53.27(2) Qualification. Section 1031 of the Internal Revenue Code in effect on December 21, 2017, and any applicable federal regulations govern whether transactions involving the disposition and acquisition of personal property qualify for Iowa corporate income tax purposes as a like-kind exchange of personal property subject to the deferral of gain or loss and also govern the date and tax period during which an exchange is considered completed. The treatment of such transactions as a like-kind exchange for Iowa corporate income tax purposes is either mandatory or permissive depending on the date the like-kind exchange is completed. a. Like-kind exchanges completed after December 31, 2017, but before tax periods beginning on or after January 1, 2019.Transactions involving the disposition and acquisition of personal property that qualify under this subrule as a like-kind exchange completed after December 31, 2017, but before tax periods beginning on or after January 1, 2019, are required to be treated as a like-kind exchange for Iowa corporate income tax purposes. b. Like-kind exchanges completed during tax periods beginning on or after January 1, 2019, but before January 1, 2020.For tax periods beginning on or after January 1, 2019, Iowa is conformed to the federal repeal of deferral of gain or loss from exchanges of like-kind personal property, so the federal and Iowa treatment of such transactions under Section 1031 of the Internal Revenue Code will generally be the same. However, transactions involving the disposition and acquisition of personal property that qualify under this subrule as a like-kind exchange completed during tax periods beginning on or after January 1, 2019, but before January 1, 2020, may at the election of the taxpayer be treated as a like-kind exchange for Iowa corporate income tax purposes. The election is made by completing the necessary worksheets and forms and making the required adjustments on the Iowa return as described in subrule 53.27(3). No special attachment or statement is required. The election only applies to the transactions involved in the like-kind exchange, and the taxpayer may elect or not elect to treat other qualifying transactions as a like-kind exchange for Iowa purposes. 53.27(3) Calculation and Iowa adjustments. A taxpayer required to or electing to treat qualifying transactions as a like-kind exchange for Iowa tax purposes must make certain Iowa calculations and adjustments on forms and worksheets made available on the department’s website. The IA 8824 Worksheet described in this subrule need not be included with the Iowa return but must be kept with the taxpayer’s records. The taxpayer is responsible for providing documentation at the department’s request to substantiate a like-kind exchange under this rule. a. Like-kind exchange calculation. The taxpayer must complete Parts I and II of the IA 8824 Worksheet to compute the Iowa recognized gain, if any, the Iowa deferred gain or loss, and the Iowa basis of the like-kind personal property received in the like-kind exchange. b. Iowa nonconformity adjustment. (1) The taxpayer must complete Part III of the IA 8824 Worksheet to adjust for the difference between any recognized Iowa gain from the exchange as calculated on the IA 8824 Worksheet, Part II, and any gain or loss (including gain or loss recaptured as ordinary income) recognized on the taxpayer’s federal return. (2) If the total recognized federal gain is reported using the installment sale method under Section 453 of the Internal Revenue Code, the total amount of any Iowa nonconformity adjustment related to that federal gain must be claimed over the same installment period, and the proportion of the total Iowa nonconformity adjustment claimed for each tax year shall equal the same proportion that the federal gain reported for that tax year bears to the total amount of federal gain that will ultimately be reported for all tax years resulting from the disposition of the personal property. The taxpayer must complete an IA 8824 Worksheet for each tax year that an Iowa nonconformity adjustment is claimed. c. Cost recovery adjustments. (1) The taxpayer must complete the IA 4562A to account for any differences between the federal and Iowa cost recovery deductions related to the like-kind personal property involved in the like-kind exchange, including if the taxpayer’s basis in the like-kind personal property received is different for federal and Iowa purposes, or if the taxpayer claimed additional first-year depreciation or a section 179 deduction for federal purposes on the like-kind property received in the exchange. See rule 701—53.22(422) for requirements related to the disallowance of additional first-year depreciation for Iowa corporate income tax purposes. See rule 701—53.23(422) for the section 179 limitations imposed under the Iowa corporate income tax. (2) Treasury Regulation §1.168(i)-6 prescribes rules related to the calculation of depreciation for certain assets involved in a like-kind exchange, but a taxpayer may elect to not have those rules apply pursuant to Treasury Regulation §1.168(i)-6(i). A taxpayer may choose to make a similar election under Treasury Regulation §1.168(i)-6(i) for Iowa tax purposes with regard to a like-kind exchange under this rule if the personal property otherwise would have qualified for such federal election notwithstanding the fact that no like-kind exchange occurred for federal purposes or the fact that no election was actually made for federal tax purposes in accordance with Treasury Regulation §1.168(i)-6(j). The election is made by calculating depreciation for Iowa tax purposes on the personal property involved in the like-kind exchange using the method described in Treasury Regulation §1.168(i)-6(i) on the timely filed Iowa return, including extensions, for the same tax year that the like-kind exchange was completed. No special attachment or statement is required. This rule is intended to implement 2019 Iowa Acts, chapter 152 [House File 779], section 11. ITEM 3. Adopt the following new rule 701—59.25(422):701—59.25(422) Like-kind exchanges of personal property completed after December 31, 2017, but before tax periods beginning on or after January 1, 2020. 59.25(1) In general. Public Law 115-97, Section 13303, repealed the deferral of gain or loss from exchanges of like-kind personal property for federal purposes under Section 1031 of the Internal Revenue Code. This federal repeal applies to exchanges completed after December 31, 2017, unless the taxpayer began the exchange by transferring personal property or receiving replacement personal property on or before that date. Iowa did not conform to this federal repeal for Iowa franchise tax purposes for tax periods beginning before January 1, 2019. For tax years beginning on or after January 1, 2019, but before January 1, 2020, Iowa generally conforms to the federal treatment of gain or loss from exchanges of like-kind personal property, but eligible taxpayers may elect the treatment that applied under prior federal law for Iowa purposes. For tax years beginning on or after January 1, 2020, Iowa fully conforms to the federal treatment for these exchanges, and no special election is available. This rule governs exchanges of like-kind personal property completed after December 31, 2017, but before tax periods beginning on or after January 1, 2020. This rule does not apply to exchanges completed during any tax year beginning on or after January 1, 2020. 59.25(2) Qualification. Section 1031 of the Internal Revenue Code in effect on December 21, 2017, and any applicable federal regulations govern whether transactions involving the disposition and acquisition of personal property qualify for Iowa franchise tax purposes as a like-kind exchange of personal property subject to the deferral of gain or loss and also govern the date and tax period during which an exchange is considered completed. The treatment of such transactions as a like-kind exchange for Iowa franchise tax purposes is either mandatory or permissive depending on the date the like-kind exchange is completed. a. Like-kind exchanges completed after December 31, 2017, but before tax periods beginning on or after January 1, 2019. Transactions involving the disposition and acquisition of personal property that qualify under this subrule as a like-kind exchange completed after December 31, 2017, but before tax periods beginning on or after January 1, 2019, are required to be treated as a like-kind exchange for Iowa franchise tax purposes. b. Like-kind exchanges completed during tax periods beginning on or after January 1, 2019, but before January 1, 2020.For tax periods beginning on or after January 1, 2019, Iowa is conformed to the federal repeal of deferral of gain or loss from exchanges of like-kind personal property, so the federal and Iowa treatment of such transactions under Section 1031 of the Internal Revenue Code will generally be the same. However, transactions involving the disposition and acquisition of personal property that qualify under this subrule as a like-kind exchange completed during tax periods beginning on or after January 1, 2019, but before January 1, 2020, may at the election of the taxpayer be treated as a like-kind exchange for Iowa franchise tax purposes. The election is made by completing the necessary worksheets and forms and making the required adjustments on the Iowa return as described in subrule 59.25(3). No special attachment or statement is required. The election only applies to the transactions involved in the like-kind exchange, and the taxpayer may elect or not elect to treat other qualifying transactions as a like-kind exchange for Iowa purposes. 59.25(3) Calculation and Iowa adjustments. A taxpayer required to or electing to treat qualifying transactions as a like-kind exchange for Iowa tax purposes must make certain Iowa calculations and adjustments on forms and worksheets made available on the department’s website. The IA 8824 Worksheet described in this subrule need not be included with the Iowa return but must be kept with the taxpayer’s records. The taxpayer is responsible for providing documentation at the department’s request to substantiate a like-kind exchange under this rule. a. Like-kind exchange calculation.The taxpayer must complete Parts I and II of the IA 8824 Worksheet to compute the Iowa recognized gain, if any, the Iowa deferred gain or loss, and the Iowa basis of the like-kind personal property received in the like-kind exchange. b. Iowa nonconformity adjustment. (1) The taxpayer must complete Part III of the IA 8824 Worksheet to adjust for the difference between any recognized Iowa gain from the exchange as calculated on the IA 8824 Worksheet, Part II, and any gain or loss (including gain or loss recaptured as ordinary income) recognized on the taxpayer’s federal return. (2) If the total recognized federal gain is reported using the installment sale method under Section 453 of the Internal Revenue Code, the total amount of any Iowa nonconformity adjustment related to that federal gain must be claimed over the same installment period, and the proportion of the total Iowa nonconformity adjustment claimed for each tax year shall equal the same proportion that the federal gain reported for that tax year bears to the total amount of federal gain that will ultimately be reported for all tax years resulting from the disposition of the personal property. The taxpayer must complete an IA 8824 Worksheet for each tax year that an Iowa nonconformity adjustment is claimed. c. Cost recovery adjustments. (1) The taxpayer must complete the IA 4562A to account for any differences between the federal and Iowa cost recovery deductions related to the like-kind personal property involved in the like-kind exchange, including if the taxpayer’s basis in the like-kind personal property received is different for federal and Iowa purposes, or if the taxpayer claimed additional first-year depreciation or a section 179 deduction for federal purposes on the like-kind property received in the exchange. See rule 701—59.23(422) for requirements related to the disallowance of additional first-year depreciation for Iowa franchise tax purposes. See rule 701—59.24(422) for the section 179 limitations imposed under the Iowa franchise tax. (2) Treasury Regulation §1.168(i)-6 prescribes rules related to the calculation of depreciation for certain assets involved in a like-kind exchange, but a taxpayer may elect to not have those rules apply pursuant to Treasury Regulation §1.168(i)-6(i). A taxpayer may choose to make a similar election under Treasury Regulation §1.168(i)-6(i) for Iowa tax purposes with regard to a like-kind exchange under this rule if the personal property otherwise would have qualified for such federal election notwithstanding the fact that no like-kind exchange occurred for federal purposes or the fact that no election was actually made for federal tax purposes in accordance with Treasury Regulation §1.168(i)-6(j). The election is made by calculating depreciation for Iowa tax purposes on the personal property involved in the like-kind exchange using the method described in Treasury Regulation §1.168(i)-6(i) on the timely filed Iowa return, including extensions, for the same tax year that the like-kind exchange was completed. No special attachment or statement is required. This rule is intended to implement 2019 Iowa Acts, chapter 152 [House File 779], section 11.ARC 4506CUtilities Division[199]Notice of Intended ActionProposing rule making related to intrastate gas pipelines and underground storage and providing an opportunity for public comment
The Utilities Board hereby proposes to amend Chapter 10, “Intrastate Gas and Underground Gas Storage,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 479.17.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapter 479.Purpose and Summary As part of a comprehensive review of its rules, the Utilities Board has reviewed its rules that establish filing requirements for companies that propose to construct, operate, and maintain natural gas pipelines. This proposed rule making updates the requirements for obtaining natural gas pipeline permits and is based upon the Board’s experience in recent years in reviewing petitions for permits. Stakeholder comments were sought during the Board’s review and have been considered in the proposed amendments to the rules in Chapter 10. In addition, the Board is updating the safety standards for natural gas pipelines to make them consistent with federal and industry standards since pipeline companies are required to comply with the most recent federal and industry standards. The Board issued an order commencing rule making on May 31, 2019. The order is available on the Board’s electronic filing system, efs.iowa.gov, under Docket No. RMU-2016-0004.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 rule 199—1.3(17A,474,476).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 July 9, 2019. Comments should be directed to:Iowa Utilities Board Electronic Filing System (EFS) at efs.iowa.gov Phone: 515.725.7337 Email: efshelpdesk@iub.iowa.govPublic Hearing An oral presentation at which persons may present their views orally or in writing will be held as follows: August 1, 2019 1 to 3 p.m. Board Hearing Room 1375 East Court Avenue Des Moines, Iowa Persons who wish to make oral comments at the oral presentation 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 oral presentation and have special requirements, such as those related to hearing or mobility impairments, should contact the Board and advise of specific needs. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees 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 199—Chapter 10, title, as follows:INTRASTATE GASPIPELINES AND UNDERGROUND GAS STORAGE ITEM 2. Amend rule 199—10.1(479) as follows:199—10.1(479) General information. 10.1(1) AuthorityPurpose and authority. The purpose of this chapter is to implement the requirements in Iowa Code chapter 479 and to establish procedures and filing requirements for a permit to construct, maintain, and operate an intrastate gas pipeline, for an amendment to an existing permit, and for renewal of an existing permit. This chapter also implements the requirements in Iowa Code chapter 479 for permits for underground storage of natural gas.The standardsrules relating to intrastate gaspipelines and underground gas storage in this chapter are prescribedadopted by the Iowa utilities board (board) pursuant to Iowa Code section 479.17.The rules in this chapter do not apply to interstate pipe, pipes, or pipelines used in the transportation or transmission of natural gas or hazardous liquids. 10.1(2) PurposeWhen a permit is required. The purpose of this chapter is to establish standards for a petition for a permit to construct, maintain, and operate an intrastate gas pipeline and for the underground storage of gas. In addition, the rules in this chapter set forth safety standards for the construction, maintenance, and condition of pipelines, underground storage facilities, and equipment used in connection with pipelines and facilities.A pipeline permit shall be required for any pipeline which will operate at a pressure in excess of 150 pounds per square inch gauge (psig) or which, regardless of operating pressure, is a transmission line as defined in ASME B31.8 or 49 CFR 192.3. Using the factors set out in rule 199—10.14(479), the board shall determine whether a pipeline is a transmission line and requires a permit. 10.1(3) Definitions. Technical terms not defined in this chapter shall be as defined in the appropriate standard adopted in rule 199—10.12(479). For the administration and interpretation of this chapter, the following words and terms, when used in these rules, shall have thefollowing meanings indicated below: "Affected person" means any person with a legal right or interest in the property, including but not limited to a contract purchaser of record, a tenant occupying the property under a recorded lease, a record lienholder, and a record encumbrancer of the property. "Amendment of permit" means that changes to the pipeline permit or pipeline required the filing of a petition to amend an existing pipeline permit as described in rule 199—10.9(479). "Approximate right angle" means within 5 degrees of a 90 degree angle. "Board" means the utilities board within the utilities division of the department of commerce. "County inspector" means a professional engineer licensed under Iowa Code chapter 542B who is familiar with agricultural and environmental inspection requirements and has been employed by a county board of supervisors to do an on-site inspection of a proposed pipeline for compliance with 199—Chapter 9 and Iowa Code chapter 479. "Multiple line crossing" means a point at which a proposed pipeline will either overcross or undercrosscross over or under an existing pipeline. "Negotiating" means contact between a pipeline company and a person with authority to negotiate an easement that involves the location, damages, compensation, or other matter that is prohibited by Iowa Code section 479.5(5). "Permit" means a new, amended, or renewal permit issued after appropriate application to and determination by the board. "Person" means an individual, corporation, limited liability company, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. "Pipeline" means any pipe, pipes, or pipelines used for the intrastate transportation or transmission of any solid, liquid, or gaseous substance, except water. "Pipeline company" means any person, firm, copartnership, association, corporation, or syndicate engaged in or organized for the purpose of owning, operating, or controlling pipelines for the intrastate transportation or transmission of any solid, liquid, or gaseous substance, except water. "Renewal permit" means the extension and reissuance of a permit after appropriate application to and determination by the board. "Underground storage" means storage ofnatural gas in a subsurface stratum or formation of the earth. 10.1(4) Railroad crossings. Where these rules call for the consent or other showing of right from a railroad for a railroad crossing, an affidavit filed by a petitioner which states that proper application for approval of railroad crossing has been made, that a one-time crossing fee has been paid as provided for in rule 199—42.3(476), and that 35 days have passed since mailing of the application and payment with no claim of special circumstance or objection from the railroad will be accepted as a showing of consent for the crossing. ITEM 3. Renumber rules 199—10.2(479) and 199—10.3(479) as 199—10.3(479) and 199—10.2(479). ITEM 4. Amend renumbered rule 199—10.2(479) as follows:199—10.2(479) Informational meetings. Informational meetings shall be held for any proposed pipeline project over five milesor more in length, including both the current project and future anticipated extensions, and which is to be operated at a pressure of overin excess of 150 pounds per square inch. A separate informational meeting shall be held in each county in which real property orproperty rights therein would be affected. 10.2(1) Time frame for holding meeting. Informational meetings shall be held not less than 30 days nor more than two years prior to the filing of the petition for pipeline permit and shall comply with the following:. 10.(1) 10.2(2) Facilities. Prospective petitioners for a permitA pipeline company shall be responsible for all negotiations and compensation for a suitable facility to be used for each informational meeting, including but not limited to a building or facility which is in substantial compliance with theany applicable requirements of the Americans with Disabilities Act Accessibility Guidelines, Chapter 4Standards for Accessible Design, including both the Title III regulations at 28 CFR Part 36, Subpart D, and the 2004 Americans with Disabilities Act Accessibility Guidelines at 36 CFR Part 1191, Appendices B and D (as amended through [the effective date of this amendment]), where such a building or facility is reasonably available. 10.(2) 10.2(3) Location. The informational meeting location shall be reasonably accessible to all persons, companies or corporations whichwho may be affected by the granting of a permitor who have an interest in the proposed pipeline. 10.2(3) Route deviation. Prospective petitioners desiring a route corridor to permit minor route deviations beyond the proposed permanent right of way width shall include as affected all parties within the desired corridor. Prospective petitioners may also provide notice to affected parties on alternative route corridors. 10.2(4) Board approval. A pipeline company proposing to schedule an informational meeting shall file a request to schedule the informational meeting and shall include a proposed time and date for the informational meeting, an alternate time and date, and a description of the proposed project and route. The pipeline company shall be notified within ten days of the filing of the request whether the request is approved or alternate times and dates are required. 10.(4) 10.2(5) Notices. Announcement by mailed and published notice of theeach informational meeting shall be given to affected parties of interest in real estate. Affected parties of interest in real estate are those persons, companies or corporations listed on the tax assessment roles as responsible for payment of real estate taxes and partiespersons as listed on the tax assessment rolls as responsible for payment of real estate taxes imposed on the property and those persons in possession of or residing on the property over which the prospective petitioner willpipeline company intends to seek easements. a. The notice shall set forth theinclude the following: (1) Thename of the applicantpipeline company; the applicant’s (2) The pipeline company’sprincipal place of business; the (3) Thegeneral description and purpose of the proposed project; the (4) Thegeneral nature of the right-of-way desired; the (5) Thepossibility that the right-of-way may be acquired by condemnation if approved by the board; a (6) Amap showing the route of the proposed project; a (7) Adescription of the process used by the board in making a decision on whether to approve a permit, including the right to take property by eminent domain; that (8) Thatthe landownerand any other affected person with a legal interest in the property, or residing on the property, has a right to be present at suchthe meeting and to file objections with the board; and designation (9) Designationof the time, date and place of the meeting; and contain the (10) A copy of the statement of damage claims as required by paragraph 10.3(3)“b”; and (11) Thefollowing statement: Persons with disabilities requiring assistive services or devices to observe or participate should contact the Utilities Board at (515)725-7300 in advance of the scheduled date to request that appropriate arrangements be madeaccommodations. Mailed notices shall also include a copy of the statement of damage claims as required by 10.2(3)“b.” b. The prospective petitionerpipeline company shall cause a written copy of the meeting notice to be served, by certified United States mail with return receipt requested, on all affected partiespersons with a legal right or interest in property, or persons in possession of the property, whose address isaddresses are known. The certified meeting notice shall be deposited in the U.S. mailsUnited States mail not less than 30 days prior to the date of the meeting. c. The prospective petitionerpipeline company shall cause the meeting notice, including the map, to be published once in a newspaper of general circulation in theeach countywhere the pipeline is proposed to be located at least one week and not more than three weeks prior to the date of the meeting. Publication shall be considered as notice to affected partiespersons and landowners listed on the tax assessment rolls as responsible for paying the real estate taxes imposed on the property whose residence isaddresses are not known, provided a good-faith effort to notifyobtain the address can be demonstrated by the pipeline company. d. The pipeline company shall provide notice of an informational meeting to all persons with property interests in each corridor within which the pipeline company proposes to construct a pipeline. The notice shall include all of the information required in subrule 10.2(5). e. The pipeline company shall file an affidavit that describes the good-faith effort the pipeline company undertook to locate the addresses of all affected persons. 10.(5) 10.2(6) Personnel. The prospective petitionerpipeline company shall provide qualified personnel to speak for it in matters relating topresent the followinginformation at the informational meeting: a. Service requirements and planning which have resulted in the proposed project. b. When the pipeline will be constructed. c. In general terms, the elements involved in pipeline construction. d. In general terms, the rights which the prospective petitionerpipeline company will seek to acquire through easements. e. Procedures to be followed in contactingthe affected partiespersons for specific negotiations in acquiring voluntary easements. f. Methods and factors used in arriving at an offered price for voluntary easements, including the range of cash amount for each component. g. Manner in which voluntary easement payments are made, including discussion of conditional easements, signing fees and time of payment. h. Other factors or damages not included in the easement for which compensation is made, including features of interest to affected partiespersons but not limited to computation of amounts and manner of payment. 10.2(6) Coordinating with board. The date, time, and location of the informational meeting shall be selected after consultation with the board to allow for scheduling of presiding officers. 10.2(7) Notice to county board of supervisors. The pipeline company shall send notice of the request for an informational meeting to the county board of supervisors in each county where the pipeline is proposed to be located. The pipeline company shall request from the board of supervisors the name of the county inspector, a professional engineer who shall conduct the on-site inspection required in Iowa Code section 479.29(2). The pipeline company shall provide the name and contact information of the county inspector to the landowners and other affected persons at the meeting, if known. This rule is intended to implement Iowa Code section 479.5. ITEM 5. Amend renumbered rule 199—10.3(479) as follows:199—10.3(479) Petition for permit. 10.3(1) A petition for a permit shall be made tofiled with the board upon the form prescribed and shall include all required exhibits. The petition shall be considered as filed upon receipt at the office of the boardwith the board on the date accepted by the board’s electronic filing system as provided for in 199—Chapter 14. An original and two copies of the petition and exhibits shall be filed, unless the petition and exhibits are filed electronically pursuant to the board’s electronic filing rules at 199—Chapter 14.The petition shall be attested to by an officer, official or attorney with authority to represent the pipeline company. Required exhibits shall be in the following form: a. Exhibit A.A legal description showing, ata minimum, the: (1) The beginning and ending points of the proposed pipeline. (2) Thegeneral direction of the proposed route through each quarter section of land to be crossed, including township and range and whether. (3) Whether the proposed pipeline will be locatedon private or public property, public highway or railroad right-of-way, together with such other. (4) Other pertinentinformation as may be deemed pertinent. Construction deviation of 660 feet (one-eighth mile) from proposed routing will be permitted. (5) When the route is in or adjacent to the right-of-way of a named road or a railroad, the exhibit shall specifically identify the road or railroad by name.If it becomes apparent that there will be deviation of greater than 660 feet (one-eighth mile) in some area from the proposed route as filed with the board, construction of the line in that area shall be suspended. Exhibits A, B, E, and F reflecting the deviation shall be filed, and the procedures hereinafter set forth to be followed upon the filing of a petition for permit shall be followed. b. Exhibit B.Maps showing the proposed routing of the pipeline. Strip maps will be acceptable. Two copies of such maps shall be filed. The maps may be to any scale appropriate for the level of detail to be shown, but not smaller than one inch to the mile, and shall be legible when printed on paper no larger than 11 × 17 inches. Maps based on satellite imagery are preferred. A map of the entire route, if the route is located in more than one county or there is more than one map for a county, shall be filed in this exhibit on paper no larger than 11 × 17 inches without regard to scale. The following minimum information shall be providedon the maps: (1) The route of the pipeline which is the subject of the petition, including the starting and ending points, and when paralleling a road or railroad, which side it is on. Multiple pipelines on the same right-of-way shall be indicated, and the distance between paralleling pipelines shall be shown. (2) The name of the county, county andlines, section lines, and sectionnumbers, townshipnumbers, and range numbers. (3) The location and identity ofadjacent or crossed public roads, railroads, majornamed streams or bodies of water, and other pertinent natural or man-made features influencing the route. (4) The name and corporate limits of cities, and the name and boundaries of any public lands or parks. (5) Other pipelines and the identity of the owner. (6) Any buildings or places of public assembly within the potential impact radius of the pipeline as defined in 49 CFR 192.903. c. Exhibit C.A showing on forms prescribed by this board of engineering specifications covering the engineering features, materials and manner of construction of the proposed pipeline, its approximate length, diameter and the name and location of each railroad and primary highway and the number of secondary highways to be crossed, if any, and such other information as may be deemed pertinenton forms prescribed by the board, which are located on the board’s website. d. Exhibit D.Satisfactory attested proof of solvency and financial ability to pay damages in the sum of $250,000 or more; or surety bond satisfactory to thisthe board in the penal sum of $250,000 with surety approved by thisthe board, conditioned that the petitionerpipeline company will pay any and all damages legally recovered against it growing out of theconstruction and operation of its pipeline or gas storage facilities in the state of Iowa; security satisfactory to thisthe board as a guarantee for the payment of damages in the sum of $250,000; or satisfactory proofs that thepipeline company has property subject to execution within this state, other than pipelines, of a value in excess of $250,000.The board may require additional surety or insurance policies to ensure the payment of damages growing out of the construction and operation of the pipeline. e. Exhibit E. (1) Consent or other showing of rightdocumentation of appropriate public highway authorities, or railroad companies, where the pipeline will be placed longitudinally on, over or under, or at other than an approximate right angle to railroad tracks or highway, when such consent is obtained prior to filing of the petition,and hearing shall be filed with the petition. (2) If the exact and specific route is uncertainany consent is not obtained at the time ofthe petitionis filed,the pipeline company shall file a statement shall be made by petitioner thatit will obtain allnecessary consents orfile other showingdocumentation ofthe right will be obtainedto commence construction prior tocommencement of constructionof the segment of pipeline for which the consent is necessary, andthat the pipeline company shall file copies filed with thisthe board. f. Exhibit F.This exhibit shall contain the following: (1) A statement of the purpose of the project and a description of how the services rendered by the pipeline will promote the public convenience and necessity. (2) A general statement covering each of the following topics: the- Thenature of the lands, waters, and public or private facilities to be crossed; the
- Thepossible use of alternative routes; the
- Therelationship of the proposed pipeline to present and future land use and zoning ordinances; and the
- Theinconvenience or undue injury which may result to property owners as a result of the proposed project.
- The definitions of a transmission line in ASME B31.8 and 49 CFR 192.3.
- Pipeline Hazardous Material Safety Administration interpretations.
- The location of a distribution center.
- Interconnection with an interstate pipeline.
- Location of distribution regulator stations downstream of a proposed distribution center.
- Whether a proposed distribution center has more than one source of supply and the type of pipeline that provides the supply.
- Transfer of ownership of gas.
- Reduction in pressure of pipeline at a meter.
- No resale of gas downstream of a distribution center.
Proposing rule making related to future ready Iowa volunteer mentor program and providing an opportunity for public comment
The Iowa Commission on Volunteer Service hereby proposes to adopt new Chapter 13, “Future Ready Iowa Volunteer Mentor Program,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in 2018 Iowa Acts, chapter 1067, section 6.State or Federal Law Implemented This rule making implements, in whole or in part, 2018 Iowa Acts, chapter 1067.Purpose and Summary The purpose of this proposed rule making is to implement the Future Ready Iowa Volunteer Mentor Program. The Future Ready Iowa Volunteer Mentor Program is designed to support implementation of the Future Ready Iowa Skilled Workforce Last-Dollar Scholarship Program and the Future Ready Iowa Skilled Workforce Grant Program created in 2018 Iowa Acts, chapter 1067, by matching volunteer mentors with scholarship and grant recipients. The Volunteer Mentor Program is a voluntary program for scholarship and grant recipients that is designed to provide mentors to help recipients increase success in school and make meaningful career connections.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 Commission for a waiver of the discretionary provisions, if any. 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 Commission no later than 4:30 p.m. on July 9, 2019. Comments should be directed to: Adam Lounsbury Iowa Commission on Volunteer Service 200 East Grand Avenue Des Moines, Iowa 50309 Email: adam.lounsbury@iowaeda.comPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: July 9, 2019 11 a.m. Central First Floor Conference Room Economic Development Authority 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 Commission 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 817—Chapter 13: CHAPTER 13FUTURE READY IOWA VOLUNTEER MENTOR PROGRAM817—13.1(15H) Purpose and program description. The purpose of the future ready Iowa volunteer mentor program is to match volunteer mentors with student mentees and to support implementation of the future ready Iowa skilled workforce last-dollar scholarship program and the future ready Iowa skilled workforce grant program created in 2018 Iowa Acts, chapter 1067, sections 12 and 13. The future ready Iowa volunteer mentor program is an optional program for recipients of these scholarships and grants and is designed to provide mentors to help recipients increase success in school and make meaningful career connections. The Iowa commission on volunteer service will manage this statewide program by partnering with employers, local high schools, nonprofits, local eligible institutions of higher education and others to develop mentoring cohorts. 817—13.2(15H) Definitions. "Commission" means the Iowa commission on volunteer service. "Eligible institution" means an institution meeting the requirements outlined in 2018 Iowa Acts, chapter 1067, section 12. "Grant program" means the future ready Iowa skilled workforce grant program outlined in 2018 Iowa Acts, chapter 1067, section 13. "Last-dollar scholarship" means the future ready Iowa skilled workforce last-dollar scholarship program outlined in 2018 Iowa Acts, chapter 1067, section 12. "Program" means the future ready Iowa volunteer mentor program as defined in 2018 Iowa Acts, chapter 1067, section 6. "Student mentee" means a student who has elected to participate in the program, has agreed to program expectations, and has been matched with a volunteer mentor through the program. Student mentees must meet the criteria in 2018 Iowa Acts, chapter 1067, sections 12 and 13. "Volunteer mentor" means an adult who has applied to be a mentor, has met the screening guidelines, has attended mentor training, has committed to meeting with the mentee according to program guidelines, and has been matched with a mentee in the program. 817—13.3(15H) Program standards, guidelines, and expectations. The commission will maintain on its website standards, guidelines, and expectations for a productive and appropriate relationship between volunteer mentors and student mentees. Standards, guidelines, and expectations are aimed at helping students meet the last-dollar scholarship or grant program requirements, identify work-based learning opportunities, and make career-related connections that are advantageous to participants in the program through a healthy mentor-mentee relationship. Failure to adhere to the program standards may result in ineligibility to participate in the program. To the extent possible, volunteer mentors and student mentees will be matched based on gender, career aspirations, geography and mentor-to-mentee ratio.817—13.4(15H) Mentor/mentee agreement. All volunteer mentors and student mentees must complete and sign a written agreement issued by the commission as part of the program enrollment process. Agreements will include expectations on regular communication, appropriate conduct, utilization of the online platform and participation in any training or resources offered to improve the efficacy of the mentor-mentee relationship. Failure by either party to adhere to the agreement may result in dismissal from the program.817—13.5(15H) Mentor request and application process. 13.5(1) Mentor request process. Students may request a volunteer mentor through the commission’s website or partner agencies, including through referrals from high schools and eligible institutions. Eligible institutions must collaborate in the facilitation of this subrule by providing information on the mentor request process to all students who meet the criteria of 2018 Iowa Acts, chapter 1067, sections 12 and 13. 13.5(2) Mentor application process. Prospective mentors should apply to be a volunteer mentor through the commission’s website or through high schools, eligible institutions, or partner agencies or employers. These partner agencies may also enlist employers and other partners to help make direct mentoring connections with local mentoring cohorts. Prospective mentors must complete an application, consent to an Iowa division of criminal investigation criminal background check, attend orientation training and agree to the minimum commitment and guidelines outlined in the mentor/mentee agreement.817—13.6(15H) Subrecipient award process. If the commission deems it necessary, the commission may seek subrecipients to carry out components of the program through the commission’s regular grant program application processes. The commission may also work with partner state agencies to assist in the administration of this chapter. These rules are intended to implement 2018 Iowa Acts, chapter 1067, section 6.ARC 4499CHomeland Security and Emergency Management Department[605]Adopted and Filed EmergencyRule making related to flood recovery fund
The Homeland Security and Emergency Management Department hereby amends Chapter 14, “Flood Mitigation Program,” Iowa Administrative Code. Legal Authority for Rule Making This rule making is adopted under the authority provided in 2019 Iowa Acts, Senate File 638.State or Federal Law Implemented This rule making implements, in whole or in part, 2019 Iowa Acts, Senate File 638.Purpose and Summary This rule making amends Chapter 14 by adding a new rule that deals with the creation of the Flood Recovery Fund. The fund will be administered by the Flood Mitigation Board. The fund will provide financial support to political subdivisions of the state that have experienced or will experience expenses related to flood response, flood recovery, or flood mitigation. The new rule provides details on eligible applicants, eligible projects, and the application process. This rule making was approved by the Flood Mitigation Board on May 20, 2019.Reason for Adoption of Rule Making Without Prior Notice and Opportunity for Public Participation Pursuant to Iowa Code section 17A.4(3), the Department finds that notice and public participation are unnecessary or impractical because statute so provides. This emergency rule making will allow for the appropriated funds to be directed to impacted eligible political subdivisions. Reason for Waiver of Normal Effective Date Pursuant to Iowa Code section 17A.5(2)“b”(1)(a), the Department also finds that the normal effective date of this rule making, 35 days after publication, should be waived and the rule making made effective upon filing on May 22, 2019, because 2019 Iowa Acts, Senate File 638, section 29, allows for this rule making to be made effective immediately upon filing. The immediate effective date will allow for the appropriated funds to be directed to impacted eligible political subdivisions.Adoption of Rule Making This rule making was adopted by the Department on May 20, 2019.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 4498C to allow for public comment.Fiscal Impact The initial balance of the fund is $15 million. It is anticipated that the fund will be able to function as a revolving fund for some projects while also providing match funding to federally funded projects and full funding to projects that cannot be funded through other means. Jobs Impact It is anticipated that this funding will enable eligible political subdivisions to recover more fully from the impacts of recent flooding events, thereby improving the short-term and long-term sustainability of the political subdivisions.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 became effective on May 22, 2019. The following rule-making action is adopted:
ITEM 1. Adopt the following new rule 605—14.12(418):605—14.12(418) Flood recovery fund. 14.12(1) Purpose. A flood recovery fund is established in the state treasury under the control of the board. The fund shall consist of moneys appropriated to the fund by the general assembly and any other moneys available to, obtained by, or accepted by the board for deposit in the fund. Moneys in the fund are appropriated to the department and shall be used for the purposes designated in this rule. Moneys in the fund shall not supplant any federal disaster recovery moneys. Moneys in the fund that remain unencumbered or unobligated at the close of a fiscal year shall not revert to the general fund of the state but shall remain available for expenditure for the purposes designated in this rule. Interest or earnings on moneys deposited in the fund shall be credited to the fund. 14.12(2) An eligible applicant is a political subdivision of the state located in a county designated under presidential disaster declaration DR-4421-IA and also located in a county where the federal emergency management agency’s individual assistance program has been activated. 14.12(3) Eligible projects must support flood response, flood recovery, or flood mitigation activities. Eligible project types could include construction and reconstruction of levees, embankments, impounding reservoirs, conduits, or other means that are necessary for the protection of property from the effects of floodwaters and may include the deepening, widening, alteration, change, diversion, or other improvement of watercourses if necessary for the protection of such property from the effects of floodwaters. A project may consist of one or more phases of construction or reconstruction that are contracted for separately if the larger project, of which the project is a part, otherwise meets the requirements of this subrule. 14.12(4) Project applications shall be submitted to the department for consideration by the board. The board shall prescribe application instructions and forms. Applications, instructions, programmatic guidance and forms are available through the department and its website, www.homelandsecurity.iowa.gov. Project applications shall contain all of the following: a. A description of the project and how the project supports flood response, flood recovery, or flood mitigation activities. b. A description of financial assistance needed from the flood recovery fund. c. A description of the necessary expense or serious need of the political subdivision. d. Details on any additional funds to be applied to the project. 14.12(5) The board shall review the project applications. When reviewing a project application, the board shall consider, at a minimum, all of the following: a. Whether the project supports flood response, flood recovery, or flood mitigation activities. b. Whether financial assistance through the flood recovery fund is essential to meet the necessary expenses or serious needs of the political subdivision related to flood response, flood recovery, and flood mitigation.Upon review of a project application, the board shall approve, defer, or deny the project application. If a project application is approved, the board shall specify the amount of financial assistance from the flood recovery fund awarded to the political subdivision. If the board approves an application for financial assistance from the flood recovery fund, the board shall negotiate and execute on behalf of the department all necessary agreements to provide such financial assistance. If a project application is deferred or denied, the board shall state the reasons for such deferral or denial. 14.12(6) Reports. Following the approval of a project application, the political subdivision shall twice annually, until the project is complete, submit a report to the board detailing the following: a. The current status of the project. b. The total expenditures and types of expenditures that have been made related to the project. c. The amount of total project cost remaining as of the date the report is submitted. [Filed Emergency 5/22/19, effective 5/22/19][Published 6/19/19]Editor’s Note: For replacement pages for IAC, see IAC Supplement 6/19/19.ARC 4495CInsurance Division[191]Adopted and Filed EmergencyRule making related to residential and motor vehicle services contracts
The Insurance Division (Division) hereby amends Chapter 103, “Residential Service Contracts,” and rescinds Chapter 104, “Motor Vehicle Service Contracts,” Iowa Administrative Code. Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code sections 516E.7 and 523C.10 and 2019 Iowa Acts, Senate File 619, section 18.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapters 516E and 523C and 2019 Iowa Acts, Senate File 619.Purpose and Summary The amendments in this rule making augment 2019 Iowa Acts, Senate File 619, which became effective May 16, 2019, and which, in part, updates provisions regarding the licensing of residential service companies and motor vehicle service companies that enter into residential service contracts and motor vehicle service contracts with consumers. This rule making is intended to provide guidance to residential service companies and motor vehicle service companies regarding how their current license or registration status will be administered by the Division now that the new law has become effective. 2019 Iowa Acts, Senate File 619, consolidates Iowa Code chapters 516E and 523C and makes significant changes to the licensing of residential service companies and motor vehicle service companies. These emergency amendments consolidate Chapters 103 and 104 and meanwhile guide service companies until the next licensing cycle begins, pursuant to 2019 Iowa Acts, Senate File 619, on September 1, 2019.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. The new law was to take effect upon enactment, according to 2019 Iowa Acts, Senate File 619, section 19. The Governor signed the law, thereby making it effective, on May 16, 2019. The Commissioner of Insurance is authorized by 2019 Iowa Acts, Senate File 619, section 18, to adopt emergency rules under Iowa Code sections 17A.4(3) and 17A.5(2)“b” to implement the provisions of Senate File 619. Senate File 619, section 18, requires that such emergency rules also be published as a Notice of Intended Action as provided in Iowa Code section 17A.4.Reason for Waiver of Normal Effective Date Pursuant to Iowa Code section 17A.5(2)“b”(1)(a), 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 May 20, 2019, because the new law took effect upon enactment, according to 2019 Iowa Acts, Senate File 619, section 19. The Governor signed the law, thereby making it effective, on May 16, 2019. The Commissioner of Insurance is authorized by 2019 Iowa Acts, Senate File 619, section 18, to adopt emergency rules under Iowa Code sections 17A.4(3) and 17A.5(2)“b” to implement the provisions of Senate File 619.Adoption of Rule Making This rule making was adopted by Doug Ommen, Iowa Insurance Commissioner, on May 17, 2019.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 in accordance with 2019 Iowa Acts, Senate File 619, section 18, and is published herein under Notice of Intended Action as ARC 4496C to allow for public comment.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 These rules do not include a provision for the waiver of a rule because the Division’s general waiver rules of 191—Chapter 4 apply.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 May 20, 2019. The following rule-making actions are adopted:
ITEM 1. Amend 191—Chapter 103, title, as follows:RESIDENTIALAND MOTOR VEHICLE SERVICE CONTRACTS ITEM 2. Amend rule 191—103.1(523C) as follows:191—103.1(523C) Purpose. The purpose of this chapter is to administer Iowa Code chapter 523Cas amended by 2019 Iowa Acts, Senate File 619, relating to residential service contracts as defined in Iowa Code section 523C.1(9)service contracts and service companies. ITEM 3. Amend rule 191—103.2(523C) as follows:191—103.2(523C) Applicability, scope, and definitions. 103.2(1) This chapter shall apply to any person who issues or offers to issue a residential service contract as defined in Iowa Code section 523C.1(9). 103.(2) 103.2(1) This chapter shall apply when an offer to sell a residential service contract is made or accepted in this state. An offer to sell is made in this state when the offer either originates from this state or is directed by the offeror to a person in this state. 103.(3) 103.2(2) The definitions in Iowa Code sectionssection 523C.1 and 523C.8A(3)as amended by 2019 Iowa Acts, Senate File 619, section 1, are incorporated by this reference. In addition, the following definitions shall apply to this chapter. "Division" means the Iowa insurance division, supervised by the commissioner pursuant to Iowa Code section 505.8, in the division’s performance of the duties of the commissioner under Iowa Code chapter 523Cas amended by 2019 Iowa Acts, Senate File 619. "Division’s Web sitewebsite" means the Web sitewebsite of the Iowa insurance division, www.iid.iowa.goviid.iowa.gov. "Guarantee or warranty" means:- Any written affirmation or written promise made by a manufacturer or seller in connection with the sale of structural components or any tangible personal property which relates to the nature of the material or workmanship and affirms or promises that the material or workmanship is free of defects or will meet a specified level of performance over a specified period of time; or
- Any written affirmation, promise or undertaking by a manufacturer or seller in connection with the sale of structural components or any tangible personal property to refund, repair, replace or take other remedial action with respect to a product if the product fails to meet the specifications set forth in the undertaking, which written affirmation, promise or undertaking becomes part of the basis of the bargain for purposes other than resale.
Rule making related to regional sports authority districts
The Economic Development Authority hereby amends Chapter 38, “Regional Sports Authority Districts,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 15.106A.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 15E.321.Purpose and Summary The first amendment changes a rule regarding the composition of the regional sports authority district governing boards so that the rule now conforms to the statute. The second amendment addresses the scoring criteria for applications. The current rules require the use of marketing data that the Iowa Tourism Office no longer collects. The amendment sets forth a new formula that incorporates current and useful marketing data, to be provided to the applicant by the Iowa Tourism Office. Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on March 27, 2019, as ARC 4354C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by the Economic Development Authority Board on May 17, 2019.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, pursuant to 261—Chapter 199. 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 July 24, 2019. The following rule-making actions are adopted:
ITEM 1. Amend paragraph 38.3(1)"b" as follows: b. The board shall consist of seven members named by the applicant, of whom at least one memberthree members shall be a city council membermembers of a cityany cities located in the proposed district. ITEM 2. Amend paragraph 38.4(1)"a" as follows: a. Economic impact: 30 points. The authority will consider the amount of economic impact represented by the proposed nonprofessional sporting events and will view favorably events that have a greater economic impact. Economic impact will be determined based on the information required under subrule 38.3(2), and the authority will use that information in combination with the average daily spending data from the Iowa tourism office’s most recent marketing follow-up survey to calculate the estimated economic impact of the nonprofessional sporting events proposed in the applicationby using the following calculation: Applicants will estimate the number of hotel room nights generated by each proposed nonprofessional sporting event and multiply the number of estimated hotel room nights by the average daily room rate for Iowa hotels. The average daily room rate will be provided by the Iowa tourism office based on information obtained from a hotel market data service. Intentionally inflated estimates of attendance or a history of providing inaccurate estimates will negatively affect the scoring of an application and may result in noncertification of a district. [Filed 5/22/19, effective 7/24/19][Published 6/19/19]Editor’s Note: For replacement pages for IAC, see IAC Supplement 6/19/19.ARC 4510CEconomic Development Authority[261]Adopted and FiledRule making related to workforce housing tax incentives program
The Economic Development Authority hereby amends Chapter 48, “Workforce Housing Tax Incentives Program,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 15.106A.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 15.354.Purpose and Summary This rule making amends paragraph 48.5(3)“c” to reflect 2018 Iowa Acts, House File 2500. Currently, a housing business must complete the housing project within three years from the date of registration in order to remain eligible for the tax incentives under the program. The amendment allows the Authority discretion to extend the housing project’s completion deadline once by up to 12 months upon application by the housing business.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on March 27, 2019, as ARC 4353C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by the Economic Development Authority Board on May 17, 2019.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, pursuant to 261—Chapter 199.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 July 24, 2019. The following rule-making action is adopted:
ITEM 1. Amend paragraph 48.5(3)"c" as follows: c. Housing project completion deadline. (1) AExcept as provided in subparagraph 48.5(3)“c”(2), a housing business shall complete its housing project within three years from the date the housing project is registered by the authority. (2) The authority may for good cause within the discretion of the authority extend a housing project’s completion deadline once by up to 12 months upon application by the housing business, which application shall be made prior to the expiration of the three-year completion deadline in subparagraph 48.5(3)“c”(1) in the manner and form prescribed by the authority. [Filed 5/28/19, effective 7/24/19][Published 6/19/19]Editor’s Note: For replacement pages for IAC, see IAC Supplement 6/19/19.ARC 4511CEconomic Development Authority[261]Adopted and FiledRule making related to brownfield and grayfield redevelopment tax credit
The Economic Development Authority hereby amends Chapter 65, “Brownfield and Grayfield Redevelopment,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 15.106A.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 15.293B(4) and 15.295.Purpose and Summary The rule making makes the following changes. First, it removes the application scoring criterion which gives projects an additional 25 points if the project was registered under the program in a prior year. Although this criterion may have been desirable when the credit first became competitive, the Authority has experienced an influx of applications for projects that are not ready to move forward but rather are applying only for the purpose of receiving the additional 25 points in a future application round. Second, the rule making removes the 12-month maximum extension for project completion. The removal of this language brings the rules into agreement with language in Iowa Code section 15.293B(4).Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on February 13, 2019, as ARC 4281C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by the Economic Development Authority Board on May 17, 2019.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, pursuant to 261—Chapter 199. 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 July 24, 2019. The following rule-making actions are adopted:
ITEM 1. Amend paragraph 65.8(2)"a" as follows: a. Each application for tax credits during each established application period will be scored according to criteria set forth in this paragraph. Points will be added together and the resulting score averaged with the scores of applications evaluated by all council members. Scoring criteria include: (1) The project’s feasibility: 25 points. (2) The project’s financial need: 25 points. (3) The project’s quality: 25 points. (4) Whether the project was formerly registered under the program but did not receive an award: 25 points. ITEM 2. Amend paragraph 65.11(7)"b" as follows: b. A registered project shall be completed within 30 months of the project’s approval unless the authority, with the approval of the board, provides additional time to complete the project. A project shall not be provided more than 12 months of additional time. If the registered project is not completed within the time required, the project is not eligible to claim a tax credit. [Filed 5/23/19, effective 7/24/19][Published 6/19/19]Editor’s Note: For replacement pages for IAC, see IAC Supplement 6/19/19.ARC 4512CEconomic Development Authority[261]Adopted and FiledRule making related to sunset date extensions
The Economic Development Authority hereby amends Chapter 71, “Targeted Jobs Withholding Tax Credit Program,” and Chapter 116, “Tax Credits for Investments in Certified Innovation Funds,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 15.106A.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 15E.52 and 403.19A.Purpose and Summary The purpose of this rule making is to update program-specific sunset dates that were extended by 2018 Iowa Acts, Senate File 2417.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on March 27, 2019, as ARC 4355C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by the Economic Development Authority Board on May 17, 2019.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, pursuant to 261—Chapter 199.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 July 24, 2019. The following rule-making actions are adopted:
ITEM 1. Amend paragraph 71.4(2)"e" as follows: e. Sunset date.A pilot project city and the authority shall not enter into a withholding agreement with a business after June 30, 20182019. ITEM 2. Amend subrule 116.3(6) as follows: 116.3(6) The board will not certify an innovation fund after June 30, 20182023. ITEM 3. Amend 261—Chapter 116, implementation sentence, as follows: These rules are intended to implement 2013 Iowa Code section 15E.52 and 2013 Iowa Acts, House File 615. [Filed 5/23/19, effective 7/24/19][Published 6/19/19]Editor’s Note: For replacement pages for IAC, see IAC Supplement 6/19/19.ARC 4513CEconomic Development Authority[261]Adopted and FiledRule making related to community attraction and tourism programs
The Economic Development Authority hereby amends Chapter 211, “Community Attraction and Tourism Development (CATD) Programs,” and Chapter 213, “Vision Iowa Board: Uniform Waiver and Variance Rules,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code sections 15.106A and 15F.104.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 15F.201 to 15F.206.Purpose and Summary Pursuant to Iowa Code section 17A.7(2), the Enhance Iowa Board and Authority staff reviewed the administrative rules for the Community Attraction and Tourism (CAT) program. Authority staff recommended amendments to Chapters 211 and 213 to clarify the rules and make the programs easier to use for CAT program applicants and award recipients.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on March 13, 2019, as ARC 4329C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by the Economic Development Authority Board on May 17, 2019.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, pursuant to 261—Chapter 213.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 July 24, 2019. The following rule-making actions are adopted:
ITEM 1. Amend 261—Chapter 211, title, as follows:COMMUNITY ATTRACTION AND TOURISM DEVELOPMENT (CATD)(CAT) PROGRAMS ITEM 2. Amend rule 261—211.1(15F) as follows:261—211.1(15F) Purpose. The community attraction and tourism development programs are designed to assist communities in the development and creation of multiple-purpose attraction and tourism facilities. The CATDCAT programs include the CAT fund and the RECAT fund. The rules in this division apply to all applications and awards from the CAT and RECAT funds. ITEM 3. Amend rule 261—211.2(15F) as follows:261—211.2(15F) Definitions. When used in this chapter, unless the context otherwise requires: "Attraction" means a permanently located recreational, cultural, educational, or entertainment activity that is available to the general public. "Authority" means the economic development authority created in Iowa Code section 15.105. "Board" means the visionenhance Iowa board established by Iowa Code section 15F.102. "CAT" means the community attraction and tourism component of the CATD programs. "CATD" means community attraction and tourism development. "CATD programs" means the CAT fund and RECAT fund. "CAT fund" means the community attraction and tourism fund established pursuant to Iowa Code section 15F.204. "Community" "political subdivision" means a city or county, or an entity established pursuant to Iowa Code chapter 28E. "Community attraction and tourism program review committee" "CAT review committee" means the committee established by Iowa Code section 15F.203(2) and identified as the following members of the visionenhance Iowa board: three members of the general public, one from each of the three tourism regions; the mayor of a city with a population of less than 20,000; and the county supervisor from a county that has a population ranking in the bottom 33 counties according to the 1990 census. The chair and vice chair of the vision Iowa board may serve as ex officio members of any subcommittee of the boardone member from each congressional district and one member from the state at large. "Department" "IDED" means the Iowa department of economic development. "Economic development organization" means an entity organized to position a community to take advantage of economic development opportunities and strengthen a community’s competitiveness as a place to work and live. "Float loan" "interim financing" means a short-term loan (maximum of 30 months) from obligated but unexpended funds. "Loan" means an award of assistance with the requirement that the award be repaid with term, interest rate, and other conditions specified as part of the award. A deferred loan is one for which the payment of principal, interest, or both is not required for some specified period. A forgivable loan is one for which repayment is eliminated in part or entirely if the borrower satisfies specified conditions. "Local support" means endorsement by local individuals,and organizationsand political subdivisions that have a substantial interest in a project. "Nonfinancial support" may include, but is not limited to, the value of labor and services which may not total more than 25 percent of a local match. Real property and personal property donated for purposes of the project are considered financial support at their fair market value. "Private organization" means a corporation, partnership, or other organization that is operated for profit. "Public organization" means a not-for-profit economic development organization or other not-for-profit organization, including those that sponsor or supportone that sponsors or supports community or tourism attractions and activities. "RECAT" means river enhancement community attraction and tourism. "RECAT fund" means the river enhancement community attraction and tourism fund established pursuant to Iowa Code section 15F.205. "Recipient" means the entity under contract with the visionenhance Iowa board to receive CAT or RECAT funds and undertake the funded activity. "Recreational and cultural attraction" means an attraction that enhances the quality of life in the community. "River enhancement community attraction and tourism project" means a project that creates or enhances recreational opportunities and community attractions on and near lakes or rivers or river corridors within cities across the state under the purview of the program. "School district" means a school corporation organized under Iowa Code chapter 274. "Subrecipient" means a private organization or other entity operating under an agreement or contract with a recipient to carry out a funded CAT or RECAT activity. "Tourism opportunity" means a facility that draws people into the community from at least 50 miles (one way) away from home. "Vertical infrastructure" means land acquisition and construction, major renovation and major repair of buildings, all appurtenant structures, utilities, site development, and recreational trailsand water trails. “Vertical infrastructure” does not include routine, recurring maintenance or operational expenses or leasing of a building, appurtenant structure, or utility without a lease-purchase agreement. "Vision Iowa program review committee" means the committee established by Iowa Code section 15F.304(2) as amended by 2009 Iowa Acts, House File 822, and identified as the following members of the visionenhance Iowa board: four members of the general public, the mayor of a city with a population of 20,000 or more, the director of the Iowa department of economic development or designee, the treasurer of state or designee, and the auditor of state or designee. The chairperson and vice chairperson of the vision Iowa board may serve as ex officio members of any subcommittee of the boardone member from each congressional district and two members from the state at large. ITEM 4. Amend rule 261—211.3(15F) as follows:261—211.3(15F) Program componentsForms of assistance. There are four direct components of the CATD programs. The first component relates to community attraction, tourism or leisure projects that are sponsored by political subdivisions, public organizations, and school districts in cooperation with a city or county. This component is referred to as the community attraction component. The second component provides community attraction and tourism development funds for interim financing for eligible projects under the community attraction component. This component is referred to as the interim financing component. The third component relates to river enhancement community attraction and tourism projects. This component is referred to as the river enhancement component. The fourth component relates to marketing projects that have received funding from the vision Iowa or CATD programs. This component is referred to as the marketing component. 211.3(1) Community attraction componentand tourism—CAT. The objective of the CAT component is to provideCAT program provides financial assistance for community-sponsored attraction and tourism projects. Community attraction projects may include but are not limited to the following: museums, theme parks, cultural and recreational centers, heritage attractions, sports arenas and other attractions. 211.3(2) Interim financing component. a. The objective of the interim financing component is to provide short-term financial assistance for eligible community attraction and tourism projects. Financial assistance may be provided as a float loan. A float loan may only be made for projects that can provide the vision Iowa board with an irrevocable letter of credit or equivalent security instrument from a lending institution rated AA or better, in an amount equal to or greater than the principal amount of the loan. b. Applications for float loans shall be processed, reviewed and considered on a first-come, first-served basis to the extent funds are available. Applications that are incomplete or require additional information, investigation or extended negotiation may lose funding priority. Applications for float loans shall meet all other criteria required for the community attraction component. 211.(3) 211.3(2) River enhancement componentcommunity attraction and tourism—RECAT. The objective of the RECAT component is to provideprogram provides financial assistance for projects that are related to, closely connected with, and enhance rivers, lakes, or river corridors within cities. River enhancement projects may include but are not limited to pedestrian trails and walkways, amphitheaters, bike trails, water trails or white water courses for watercraft, and any modifications necessary for the safe mitigation of damscreate or enhance recreational opportunities and community attractions on and near lakes or rivers or river corridors within cities. 211.(4) 211.3(3) Marketing component. The objective of theCAT marketing component is to provideprovides financial assistance for the marketing of vision Iowa or CATD, CAT and RECAT projects. ITEM 5. Amend rule 261—211.4(15F) as follows:261—211.4(15F) Eligible applicants. Eligible applicants for CAT and RECAT funds include political subdivisions,cities, counties, public organizations, and school districts in cooperation with a city or county.Any eligible applicant may apply individually or jointly with another eligible applicant or other eligible applicants. A school district must apply jointly with a city or county. 211.4(1) Any eligible applicant may apply directly or on behalf of a subrecipient. 211.4(2) Any eligible applicant may apply individually or jointly with another eligible applicant or other eligible applicants. ITEM 6. Amend rule 261—211.5(15F) as follows:261—211.5(15F) Eligible projects and forms of assistance. 211.5(1) Eligible projects include those which are related to a community or tourism attraction, and which wouldprovide recreational, cultural, entertainment and educational opportunities. Funded projects must position a community to take advantage of economic development opportunities in tourism and strengthen a community’s competitiveness as a place to work and live. Eligible projects include building construction or reconstruction, rehabilitation, conversion, acquisition, demolition for the purpose of clearing lots for development, site improvement, equipment purchases, and other projects as may be deemed appropriate by the vision Iowa board.Completed projects must be open to the public for general use. 211.5(2) Eligible forms of assistance include grants, interest-bearing loans, non-interest-bearing loans, float loans under the interim financing component, interest subsidies, deferred payment loans, forgivable loans, or other forms of assistance as may be approved by the vision Iowa board.Eligible CAT and RECAT projects must be primarily vertical infrastructure projects. 211.5(3) Financial assistance for an eligible project may be provided in the form of a multiyear award to be paid in increments over a period of years, subject to the availability of funds.The enhance Iowa board has the option of funding a component of a proposed project. 211.5(4) IDED, with the approval of the chair or vice chair of the vision Iowa board, reserves the right to make technical corrections which are within the intent of the terms of a board-approved award. 211.5(5) Applicants must report other sources of funding or pending funding, public or private, for the project including the local recreation infrastructure grants program administered by the Iowa department of natural resources and the Iowa historic site preservation grant program administered by the historical division of the Iowa department of cultural affairs. IDED may consult with appropriate staff from the department of cultural affairs and the department of natural resources to coordinate the review of applications under the programs. ITEM 7. Amend rule 261—211.6(15F) as follows:261—211.6(15F) Ineligible projects. 211.6(1) The visionenhance Iowa board shall not approve an application for assistance under this program to refinance an existing loan. 211.6(2) An applicantA recipient may not receive more than oneCAT or RECAT award under the CATD programs for a single project. However, previously funded projects may receive an additional award(s) if the applicant demonstrates that the funding is to be used for a significant expansion of the project,or a new project, or a project that results from previous project-development assistance. 211.6(3) The visionenhance Iowa board shall not approve an application for assistance in which the combination of RECAT and CAT fundingCAT or RECAT funding plus other state funds would constitute more than 50 percent of the total project costs. RECAT funding may constitute up to one-third of the total project cost. A portion of the resources provided by the applicant for project costs may be in the form of in-kind or nonfinancial contributions. 211.6(4) Work completed and costs incurred, except the acquisition of real estate, prior to the date of a potential CAT or RECAT award are ineligible for funding under the CAT programs. ITEM 8. Amend rule 261—211.7(15F) as follows:261—211.7(15F) Threshold applicationApplication requirements. To be considered for funding under the CATD programs, an application must meet the following threshold requirementsAt a minimum, CAT and RECAT applications must contain the following information: 211.7(1) There must be demonstrated local support for the proposed activity.The total capital investment of the project, including but not limited to costs for construction, site acquisition, and infrastructure improvement. 211.7(2) A need for the CAT or RECAT funds must exist after other financial resources have been identified for the proposed project.The amount or percentage of local and private matching moneys which will be or have been provided for the project. Moneys raised at any time and not yet spent may be considered as local match. Up to 25 percent of the local match may be nonfinancial support. 211.7(3) The proposed project must primarily involve the creation or renovation of vertical infrastructure with demonstrated substantial regional or statewide economic impact.The total number of jobs to be created or retained by the project. 211.7(4) The project must provide and pay at least 50 percent of the cost of a standard medical insurance plan for all full-time employees working at the project after the completion of the project for which financial assistance was received.The long-term tax-generating impact of the project. 211.7(5) A joint application from a school district in cooperation with a city or county must demonstrate that the intended future use of the project shall be by both joint applicants. ITEM 9. Rescind rule 261—211.8(15F) and adopt the following new rule in lieu thereof:261—211.8(15F) Application review. 211.8(1) Authority staff will review CAT and RECAT applications to ensure the applications meet the threshold requirements set forth in subrule 211.8(2). All eligible applications will be forwarded to and reviewed by the enhance Iowa board. Applications that do not meet the threshold requirements will not be forwarded to the enhance Iowa board for review. 211.8(2) Authority staff will review each application for the following information: a. Local support for the proposed activity. b. Whether the proposed project is primarily a vertical infrastructure project. c. Certification from the applicant that the applicant will provide and pay for at least 50 percent of the cost of a standard medical insurance plan for all full-time employees working at the project after the completion of the project for which financial assistance was received. d. At least 65 percent of the funds needed to complete the proposed project have been raised or pledged. Other state funds cannot be counted as match until the applicant can document that at least 50 percent of the funds have been raised. 211.8(3) The CAT and vision Iowa program review committees shall consider, at a minimum, the following: a. Whether the wages, benefits, including health benefits, safety, and other attributes of the project would improve the quality of life or the quality of the attraction or tourism employment in the community. b. The extent to which such a project would generate additional recreational and cultural attractions or tourism opportunities. c. The ability of the project to produce a long-term tax-generating economic impact. d. The location of the projects and geographic diversity of the applications. e. The project is primarily a vertical infrastructure project with demonstrated substantial regional or statewide economic impact. f. Whether the applicant has received financial assistance under the program for the same project. g. The extent to which the project has taken the following planning principles into consideration: (1) Efficient and effective use of land resources and existing infrastructure by encouraging development in areas with existing infrastructure or capacity to avoid costly duplication of services and costly use of land. (2) Provision for a variety of transportation choices, including pedestrian traffic. (3) Maintenance of a unique sense of place by respecting local cultural and natural environmental features. (4) Conservation of open space and farmland and preservation of critical environmental areas. (5) Promotion of safety, livability, and revitalization of existing urban and rural communities. ITEM 10. Amend rule 261—211.9(15F) as follows:261—211.9(15F) Application procedure. Subject to availability of funds, applications are reviewed by IDED staff on an ongoing basis and reviewed at least quarterlywill be accepted by the boardquarterly. Applications will be reviewed by staffAuthority staff will review applications for completeness and eligibility. If additional information is required, the applicant shall be provided with notice, in writing, to submit additional information. A review, analysis and evaluation from the IDEDauthority staff will be submitted to the CAT and vision Iowa program review committees of the board, whowhich will then make a final recommendation to the complete board for final approval, denial or deferral. The vision Iowa board has the option of funding a component of a proposed project if the entire project does not qualify for funding. 211.9(1) Application forms shall be available upon request from IDED, 200 East Grand Avenue, Des Moines, Iowa 50309; telephone (515)725-3197; and on IDED’s Web site at www.iowalifechanging.com.Applicants must submit a notice of intent to apply on a form provided by the authority. The authority will send standard application forms to those applicants who have submitted a notice of intent to apply. The notice of intent to apply form will be available on the enhance Iowa web page. The authority can waive this requirement for good cause. 211.9(2) IDEDAuthority staff may provide technical assistance to applicants as necessary. IDEDAuthority staff and board members may conduct on-site evaluations of proposed projects. 211.9(3) Applications shall include, at a minimum, the information detailed in rule 211.8(15F), application review criteriarequirements. 211.9(4) Incomplete or ineligible applications will not be forwarded to the board for review. ITEM 11. Amend subrules 211.10(1) to 211.10(6) as follows: .(1) Administration of awards. a. A contract shall be executed between the recipient and the visionenhance Iowa board. These rules and applicable state laws and regulations shall be part of the contract. The board reserves the right to negotiate wage rates as well as other terms and conditions of the contract. b. The recipient must execute and return the contract to the visionenhance Iowa board within 45 days of transmittal of the final contract from the visionenhance Iowa board. Failure to do so may be cause for the visionenhance Iowa board to terminate the award. c. Certain projects may require that permits or clearances be obtained from other state or local agencies before the project may proceed. Awards may be conditioned upon the timely completion of these requirements. d. Awards may be conditioned upon commitment of other sources of funds necessary to complete the project. e. Awards may be conditioned upon IDEDthe authority’s receipt and board approval of an implementation plan for the funded project. f. The authority, with the approval of the chair or vice chair of the enhance Iowa board, reserves the right to make technical corrections that are within the intent of the terms of a board-approved award. .(2) Requests forDisbursement of funds. Recipients shall submit requests for funds in the manner and on forms prescribed by IDEDthe authority. Individual requests for funds shall be made in an amount equal to or greater than $500 per request, except for the final draw of funds. .(3) Record keeping and retention. The recipient shall retain all financial records, supporting documents and all other records pertinent to the community attraction and tourism development activityfunded CAT or RECAT project for three years after contract closeout. Representatives of IDEDthe authority shall have access to all records belonging to or in use by recipients pertaining to community attraction and tourism developmentCAT and RECAT funds. .(4) Performance reports and reviews. RecipientsUpon request of the authority or the enhance Iowa board, recipients shall submit performance reports to IDED in the manner and on forms prescribed by IDEDthe authority. Reports shall assess the use of funds and progress of activities. IDEDThe authority may perform any reviews or field inspections necessary to ensure recipienteach recipient’s performance. .(5) Amendments to contracts. Any substantive change to a contract shall be considered an amendment. ChangesSubstantive changes include time extensions, budget revisions and significant alterationalterations of the funded project that change the scope, location, objectives or scale of the approved project. Amendments must be requested in writing by the recipient and are not considered valid until approved by the visionenhance Iowa board and confirmed in writing by IDED following the procedure specified in the contract between the recipient and IDED. .(6) Contract closeout. Upon contract expiration, IDEDproject completion, the authority shall initiate contract closeout procedures. ITEM 12. Amend rule 261—211.51(15F) as follows:261—211.51(15F) Allocation of funds. 211.51(1) Except as otherwise noted in this rule, all CAT funds shall be awarded for projects as specified in rule 211.3(15F). 211.(2) 211.51(1) One-third of the moneys shall be allocated to provide assistance toprojects located in cities and counties which meet the following criteria: a. A city which has a population of 10,000 or less according to the most recently published census. b. A county which has a population that ranks in the bottom 33 counties according to the most recently published census. 211.(3) 211.51(2) Two-thirds of the moneys shall be allocated to provide assistance toprojects in any city and county in the state, which may include a city or county included under subrule 211.51(2)211.51(1). 211.(4) 211.51(3) If two or more cities or counties submit a joint project application for financial assistance from the CAT fund, all joint applicants must meet the criteria of subrule 211.51(2)211.51(1) in order to receive any moneys allocated under that subrule. 211.(5) 211.51(4) If any portion of the allocated moneys under subrule 211.51(2)211.51(1) has not been awarded by April 1 of the fiscal year for which the allocation is made, the portion which has not been awarded may be utilized by the visionenhance Iowa board to provide financial assistance from the CAT fund toprojects located in any city or county in the state. ITEM 13. Amend rule 261—211.102(15F) as follows:261—211.102(15F) Allocation of fundsApplication contents. 211.102(1) Except as otherwise noted in this rule, all river enhancement community attraction and tourism funds shall be awarded for projects as specified in rule 211.3(15F).Application contents. Applications for river enhancementRECAT projects shall include, as an exhibit to the standard CATD program application, information about the project’s connection and interaction with a river, lake or river corridor.“Lake” means a lake of which the state or a political subdivision owns the lake bed up to the ordinary high water line and which is open to the use of the general public. 211.102(3) Application review criteria. In addition to the application review criteria in rule 211.8(15F), river enhancement projects shall be reviewed using the following additional criteria: a. Connection and interaction with a river, lake or river corridor. The extent that the project relates to, connects with, and enhances a body of water. An explanation of the relevance of the body of water with regard to the project overall (0-5 points). b. A description of the green sustainable design and construction practices, including storm water best management practices, such as permeable pavement, bioretention cells, and bioswales that will be utilized on the project to protect from pollution the body of water enhanced by the project (0-5 points). ITEM 14. Rescind and reserve rule 261—211.103(15F). ITEM 15. Amend 261—Chapter 213, title, as follows:VISIONENHANCE IOWA BOARD: UNIFORM WAIVER AND VARIANCE RULES ITEM 16. Amend subrule 213.1(1), definition of “Board,” as follows: "Board" "visionenhance Iowa board" means the visionenhance Iowa board established by 2000 Iowa Acts, chapter 1174Iowa Code section 15F.102. ITEM 17. Amend subrule 213.3(1) as follows: 213.3(1) Application. All petitions for waiver or variance must be submitted in writing to the VisionEnhance Iowa Board, 200 East Grand Avenue, Des Moines, Iowa 50309-1819. If the petition relates to a pending contested case, a copy of the petition shall also be filed in the contested case proceeding. ITEM 18. Amend rule 261—213.6(17A,ExecOrd11) as follows:261—213.6(17A,ExecOrd11) Public availability. Subject to the provisions of Iowa Code section 17A.3(1)“e,” the board shall maintain a record of all orders granting or denying waivers and variances under this chapter. All final rulings in response to requests for waivers or variances shall be indexed and available to members of the public at the VisionEnhance Iowa Board, 200 East Grand Avenue, Des Moines, Iowa 50309-1819. ITEM 19. Amend rule 261—213.10(17A,ExecOrd11) as follows:261—213.10(17A,ExecOrd11) Appeals. Granting or denying a request for waiver or variance is final agency action under Iowa Code chapter 17A. An appeal to district court shall be taken within 30 days of the issuance of the ruling in response to the request unless a contrary time is provided by rule or statute.Exhibit ASample Petition (Request) for Waiver/VarianceBEFORE THE VISIONENHANCE IOWA BOARD Petition by (insert name of petitioner)for the waiver of (insert rule citation)relating to (insert the subject matter). } PETITION FORWAIVERRequests for waiver or variance from a board rule shall include the following information in the petition for waiver or variance where applicable and known: a. Provide the petitioner’s (person asking for a waiver or variance) name, address, and telephone number. b. Describe and cite the specific rule from which a waiver or variance is requested. c. Describe the specific waiver or variance requested; include the exact scope and time period that the waiver or variance will extend. d. Explain the important facts that the petitioner believes justify a waiver or variance. Include in your answer why (1) applying the rule will result in hardship or injustice to the petitioner; and (2) granting a waiver or variance to the petitioner is consistent with the public interest; and (3) granting the waiver or variance will not prejudice the substantial legal rights of any person; and (4) where applicable, how substantially equal protection of public health, safety, and welfare will be afforded by a means other than that prescribed in the particular rule for which the waiver or variance is requested. e. Provide history of prior contacts between the board and petitioner relating to the regulated activity, license, grant, loan or other financial assistance that would be affected by the waiver or variance; include a description of each affected license, grant, loan or other financial assistance held by the petitioner, any notices of violation, contested case hearings, or investigative reports relating to the regulated activity, license, grant or loan within the past five years. f. Provide information known to the petitioner regarding the board’s treatment of similar cases. g. Provide the name, address, and telephone number of any public agency or political subdivision which also regulates the activity in question, or which might be affected by the grant of a waiver or variance. h. Provide the name, address, and telephone number of any person or entity that would be adversely affected or disadvantaged by the grant of the waiver or variance. i. Provide the name, address, and telephone number of any person with knowledge of the relevant or important facts relating to the requested waiver or variance. j. Provide signed releases of information authorizing persons with knowledge regarding the request to furnish the department with information relevant to the waiver or variance.I hereby attest to the accuracy and truthfulness of the above information.Petitioner’s signatureDate Petitioner should note the following when requesting or petitioning for a waiver or variance:- The petitioner has the burden of proving to the board, by clear and convincing evidence, the following: (a) application of the rule to the petitioner would result in hardship or injustice to the petitioner; and (b) waiver or variance on the basis of the particular circumstances relative to the petitioner would be consistent with the public interest; and (c) waiver or variance in the specific case would not prejudice the substantial legal rights of any person; and (d) where applicable, how substantially equal protection of public health, safety, and welfare will be afforded by a means other than that prescribed in the particular rule for which the waiver or variance is requested.
- The board may request additional information from or request an informal meeting with the petitioner prior to issuing a ruling granting or denying a request for waiver or variance.
- All petitions for waiver or variance must be submitted in writing to the VisionEnhance Iowa Board, 200 East Grand Avenue, Des Moines, Iowa 50309-1819. If the petition relates to a pending contested case, a copy of the petition shall also be filed in the contested case proceeding.
Rule making related to surface water classification
The Environmental Protection Commission hereby amends Chapter 61, “Water Quality Standards,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code sections 455B.173(2), 455B.176(4) and 455B.176A(7).State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 455B.105(3), 455B.173(2) and 455B.176(4).Purpose and Summary This amendment revises subrule 61.3(5) to adopt by reference a revised Surface Water Classification document. The revised Surface Water Classification document reflects use designations which have been determined through field work and the completion of a use attainability analysis (UAA). The concept of assigning all perennial streams the highest use designation if an assessment has not been completed is referred to as the “rebuttable presumption.” The federal Clean Water Act establishes a rebuttable presumption that all Iowa streams can achieve the highest levels of use, referred to as fishable and swimmable uses. In 2006, the Commission adopted this presumption by rule for all of Iowa’s previously undesignated perennial streams. As an outcome of these efforts, all 26,000 miles of Iowa’s perennial (flowing year-round) streams are initially designated at the highest levels for recreation and warm water aquatic life uses. These stream designations provided initial protection for many miles of perennial streams that were previously not designated for aquatic life or recreational uses. Included in the federal regulations are provisions that allow for scientific analysis of these “presumed” recreational and aquatic life uses. This analysis is known as a UAA, which requires the gathering of site-specific field data on stream features and uses. The concept of UAA is being applied by the Department of Natural Resources (Department) as a step-by-step process to gather site-specific field data on stream features and uses. The Department assesses available information to determine if the “presumed” recreational and aquatic life uses are appropriate. Iowa Code section 455B.176A(8) prohibits the Department from renewing a National Pollutant Discharge Elimination System (NPDES) permit for a facility discharging to a stream subject to a presumed use designation until the Department conducts a UAA and ensures the stream has the appropriate designation. Prior to issuing an NPDES permit for an affected facility, the Department must complete a UAA for the receiving stream or stream network. This batch of stream designation changes affects 105 stream segments and 78 facilities. In addition to the designation changes, there are corrections to stream names and legal descriptions in the Surface Water Classification document to correct errors from the previous version. A complete list of the stream designation changes and affected facilities, as well as the updated version of the Surface Water Classification document, can be found on the Department’s water quality standards web page at: www.iowadnr.gov/Environmental-Protection/Water-Quality/Water-Quality-Standards. The full UAA for each stream segment can also be found in the state’s UAA database at the following web page: programs.iowadnr.gov/uaa/search.aspx.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 16, 2019, as ARC 4227C. Public hearings were held at the following dates, times and locations:
Rule making related to independent study
The Iowa Board of Respiratory Care and Polysomnography hereby amends Chapter 262, “Continuing Education for Respiratory Care Practitioners and Polysomnographic Technologists,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code chapters 148G and 152B and section 272C.2.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapters 148G and 152B and section 272C.2.Purpose and Summary These amendments allow licensees to earn more hours toward license renewal via independent study. The current rules only allow licensees to earn 10 of the 24 hours required for renewal via independent study. The amendments increase to 12 the number of hours licensees can earn via independent study. Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 30, 2019, as ARC 4259C. A public hearing was held on February 19, 2019, at 8 a.m. in the Fifth Floor Board Conference Room 526, Lucas State Office Building, Des Moines, Iowa. No one attended the public hearing. No public comments were received. The amendments to Chapter 262 remain the same as noticed. The amendments to Chapter 265 that were proposed in the Notice, relating to telehealth visits, have not been adopted because the Board decided further review of the Board’s rules and scope would be necessary before moving forward with changes to Chapter 265.Adoption of Rule Making This rule making was adopted by the Board on May 21, 2019.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 A waiver provision is not included in this rule making because all administrative rules of the professional licensure boards in the Professional Licensure Division are subject to the waiver provisions accorded under 645—Chapter 18.Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date This rule making will become effective on July 24, 2019. The following rule-making actions are adopted:
ITEM 1. Amend paragraph 262.2(1)"a" as follows: a. For respiratory care practitioner licensees: complete a minimum of 24 hours of continuing education. FourteenTwelve of the 24 hours of continuing education shall be earned by completing a program in which the instructor conducts the class in person or by employing an electronic technology that allows for real-time communication between the instructor and licensee. ITEM 2. Amend paragraph 262.2(1)"b" as follows: b. For respiratory care and polysomnography practitioner licensees: complete a minimum of 24 hours of continuing education. FourteenTwelve of the 24 hours of continuing education shall be earned by completing a program in which the instructor conducts the class in person or by employing an electronic technology that allows for real-time communication between the instructor and licensee. At least 8 hours but not more than 12 hours shall be on sleep-related topics. ITEM 3. Amend paragraph 262.2(1)"c" as follows: c. For polysomnographic technologist licensees: complete a minimum of 24 hours of continuing education. FourteenTwelve of the 24 hours of continuing education shall be earned by completing a program in which the instructor conducts the class in person or by employing an electronic technology that allows for real-time communication between the instructor and licensee. ITEM 4. Amend 645—Chapter 262, implementation sentence, as follows: These rules are intended to implement Iowa Code section 272C.2 and chapterchapters 148G and 152B and 2015 Iowa Acts, House File 203, sections 7 to 14 [Iowa Code chapter 148G]. [Filed 5/22/19, effective 7/24/19][Published 6/19/19]Editor’s Note: For replacement pages for IAC, see IAC Supplement 6/19/19.ARC 4516CRevenue Department[701]Adopted and FiledRule making related to educational savings plan trust accounts and ABLE accounts
The Revenue Department hereby amends Chapter 40, “Determination of Net Income,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted 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 amendments implement recent legislative changes to the Iowa educational savings plan trust and Iowa ABLE programs. Following similar changes to the federal statute related to educational savings accounts, 2018 Iowa Acts, Senate File 2417, amended Iowa law to allow participants in the Iowa educational savings plan trust program to withdraw up to $10,000 per beneficiary per year from an educational savings plan trust account for certain elementary or secondary school tuition expenses tax-free. Previously, tax-free withdrawals from these accounts had been restricted to certain college-related expenses. These amendments update the Department’s existing rules to administer the tax consequences of these withdrawals for elementary and secondary school tuition expenses. Several minor technical corrections are also made to the Department’s rules related to Iowa educational savings plan trusts. Recent federal and Iowa legislation also provided that taxpayers may roll over funds from an educational savings plan account to an ABLE account tax-free under certain circumstances. The Iowa legislative changes provided that a taxpayer cannot deduct an amount rolled over from an Iowa educational savings plan trust account to an Iowa ABLE account if that amount was previously deducted as a contribution to the Iowa educational savings plan account. The Iowa legislation also provided that in the event of a nonqualifying withdrawal from an Iowa ABLE account, the taxpayer must include in the taxpayer’s taxable income any amount that was previously deducted as a contribution to an Iowa college savings plan trust account and was later rolled over into an Iowa ABLE account. These amendments update the Department’s rules related to Iowa ABLE accounts to reflect these changes and to make minor technical corrections.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on April 24, 2019, as ARC 4408C. 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 May 29, 2019.Fiscal Impact This rule making has no fiscal impact beyond that of the legislation it is intended to implement. The Fiscal Note for 2018 Iowa Acts, Senate File 2417, does not provide a separate estimate for the cost of these specific provisions, only an aggregate impact of all income tax changes included in that legislation. The Department can provide additional information about the fiscal impacts of the legislation related to these specific provisions 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).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 July 24, 2019. The following rule-making actions are adopted:
ITEM 1. Amend rule 701—40.53(422) as follows:701—40.53(422) Deduction for contributions by taxpayers to the Iowa educational savings plan trust and addition to income for refunds of contributions previously deducted. The Iowa educational savings plan trust was created so that individuals and certain other qualified participants can contribute funds on behalf of beneficiaries in accounts administered by the treasurer of state to cover future higher education costsqualified education expenses of the beneficiaries. The Iowa educational savings plan trust includes the college savings Iowa plan and the Iowa advisor 529 plan. The following subrules provide details on how individuals’ net incomes are affected by contributions to beneficiaries’ accounts, interest and any other earnings earned on beneficiaries’ accounts, and refunds of contributions which were previously deducted. Definitions and other information about establishing college savings Iowa accounts may be found in rules promulgated by the treasurer of state. See 781—Chapter 16. 40.53(1) Deduction from net income for contributions made to the Iowa educational savings plan trust on behalf of beneficiaries. a. An individual referred to as a “participant” can claim a deduction on the Iowa individual income tax return for contributions made by that individual to the Iowa educational savings plan trust on behalf of a beneficiary. b. For tax years beginning on or after January 1, 2015, if a participant makes a contribution to the Iowa educational savings plan trust on or after January 1, but on or before the deadline for filing an Iowa individual income tax return, excluding extensions, the participant may elect to have the deduction for the contribution apply to that participant’s Iowa individual income taxes for the calendar year immediately preceding the year in which the contribution was made. Once a participant has elected to apply a contribution to the calendar year immediately preceding the year in which the contribution was made, the contribution is deemed to have been made on December 31 of that previous calendar year. Once the election has been made, the deduction for that contribution may only be applied in computing the taxpayer’s Iowa net income for the calendar year immediately preceding the year in which the contribution was made. Contributions made on or after January 1, but before the deadline for filing Iowa individual income taxes, that the participant elects to have applied to the immediately preceding calendar year shall count toward the maximum contribution that may be deducted for that previous year. See paragraph 40.53(1)“c” below. c. The deduction on the 1998 Iowa return cannot exceed $2,000 per beneficiary for contributions made in 1998 or the adjusted maximum annual amount for contributions made after 1998. Note that the maximum annual amount that can be deducted per beneficiary may be adjusted or increased to an amount greater than $2,000 for inflation on an annual basis. Rollover contributions from other states’ educational savings plans will qualify for the deduction, subject to the maximum amount allowable. Starting with tax years beginning in the 2000 calendar year, a participant may contribute an amount on behalf of a beneficiary that is greater than $2,000, but may claim a deduction on the Iowa individual return of the lesser of the amount givencontributed or $2,000 as adjusted by inflation. For example, if a taxpayer made a $5,000 contribution on behalf of a beneficiary to theIowa educational savings plantrust in 2000, the taxpayer may claim a deduction on the IA 1040 return for 2000 in the amount of $2,054, as this amount is $2,000 as adjusted for inflation in effect for 2000.Example: An individual has ten grandchildren from the age of six months to 12 years. In October 1998, the person became a participant in the Iowa educational savings plan trust by making $2,000 contributions to the trust on behalf of each of the ten grandchildren. When the participant filesfiled the 1998 Iowa individual income tax return, the participant cancould claim a deduction on the return for the $20,000 contributed to the Iowa educational savings plan trust on behalf of the individual’s ten grandchildren. 40.53(2) Exclusion of interest and earnings on beneficiary accounts in the Iowa educational savings plan trust. To the extent that interest or other earnings accrue on a beneficiary’s account in the Iowa educational savings plan trust, the interest or other earnings are excluded for purposes of computing net income on the Iowa individual income tax return of the participant or the return of the beneficiary. 40.53(3) Including on the Iowa individual return amounts refunded to the participant from the Iowa educational savings plan trust that had previously been deducted. If aThe refund or withdrawal of funds is to be included in net income on a participant’s Iowa individual income tax return to the extent that contributions to the account had been deducted on prior Iowa individual income tax returns of the participant if the participant cancels a beneficiary’s account in the Iowa educational savings plan trust and receives a refund of the funds in the account made on behalf of the beneficiary, or if athe participant makes a withdrawal from the Iowa educational savings plan trust for purposes other than the payment of qualified education expenses, the refund of the funds is to be included in net income on the participant’s Iowa individual income tax return to the extent that contributions to the account had been deducted on prior state individual income tax returns of the participant.following: a. Qualifying higher education withdrawals.The payment of qualified higher education expenses as defined in Section 529(e)(3) of the Internal Revenue Code. The term “qualified higher education expenses” does not include tuition expenses related to attendance at an elementary or secondary school. b. Qualifying elementary and secondary tuition withdrawals.For withdrawals made on or after January 1, 2018, the payment of tuition expenses in connection with and required for enrollment or attendance at an elementary or secondary school in Iowa which is accredited under Iowa Code section 256.11, and which adheres to the provisions of the federal Civil Rights Act of 1964 and Iowa Code chapter 216. These qualified tuition expenses shall not exceed $10,000 per beneficiary per year. This limitation is based on the beneficiary, not the participant.Participants are responsible for tracking the amount of qualified tuition expense payments a beneficiary may receive from other participants. If a beneficiary’s distributions exceed this annual limitation, the most recent payments are presumed to be the nonqualifying payments. By agreement amongst themselves, account holders are permitted to choose an alternative method for determining which payments are nonqualifying. An alternative method is presumed valid if, after the additions to income required by this paragraph, the beneficiary’s total qualifying tax-free withdrawals for elementary or secondary school tuition expenses do not exceed the $10,000 limitation. However, upon request, the account holders are responsible for providing the department with adequate documentation to substantiate the method used. c. Change in beneficiaries.A change in beneficiaries under, or transfer to another account within, the Iowa educational savings plan trust. d. ABLE rollovers.A transfer to the Iowa ABLE savings plan trust, provided such change or transfer is permitted under Iowa Code section 12D.6(5).Example: Because a beneficiary of a certain participant died in the year 2000, this participant in the Iowa educational savings plan trust canceled the participant agreement for the beneficiary with the trust and received a refund of $4,200 of funds in the beneficiary’s account. Because $4,000 of the refund represented contributions that the participant had deducted on prior Iowa individual income tax returns, the participant was to report on the Iowa return for the tax year 2000, $4,000 in contributions that had been deducted on the participant’s Iowa returns for 1998 and 1999.Example: Beneficiary A is an elementary school student who attends an accredited elementary school located in Iowa. Participant B and participant C have each opened an Iowa educational savings plan trust account with A as the designated beneficiary. In January 2019, participant B withdraws $6,000 from B’s account to pay A’s spring semester tuition. In August 2019, participant C withdraws $6,000 from C’s account to pay for A’s fall semester tuition. Although neither B nor C has made a withdrawal in excess of $10,000, that limitation is based on the beneficiary, A, who has received a total of $12,000 in distributions in 2019. Because A’s total distributions have exceeded the annual limitation on distributions related to elementary or secondary school tuition, the participants must include the $2,000 excess in their net income. Because C’s withdrawal was made after B’s, the entire excess is presumed attributable to C, and therefore C must include the entire $2,000 excess in C’s Iowa net income for 2019, unless B and C can show that they agreed to an alternative method of allocating the excess amount. This rule is intended to implement Iowa Code section 422.7 as amended by 2015 Iowa Acts, chapter 138, sections 72 and 73, and 2016 Iowa Acts, chapter 1107. ITEM 2. Amend rule 701—40.81(422) as follows:701—40.81(422) Iowa ABLE savings plan trust. The Iowa ABLE savings plan trust was created so that individuals can contribute funds on behalf of designated beneficiaries into accounts administered by the treasurer of state. The funds contributed to the trust may be used to cover future disability-related expenses of the designated beneficiary. The funds contributed to the trust are intended to supplement, but not supplant, other benefits provided to the designated beneficiary by various federal, state, and private sources. The Iowa ABLE savings plan program is administered by the treasurer of state under the terms of Iowa Code chapter 12I. The following subrules provide details about how an individual’s net income is affected by contributions to a beneficiary’s account, by interest and any other earnings on a beneficiary’s account, and by distributions of contributions which were previously deducted. 40.81(1) Definitions. "Account owner" means an individual who enters into a participation agreement under Iowa Code chapter 12I for the payment of qualified disability expenses on behalf of a designated beneficiary. "Designated beneficiary" means an individual who is a resident of this state or a resident of a contracting state and who meets the definition of “eligible individual” found in Section 529A of the Internal Revenue Code. "Iowa ABLE savings plan trust" means a qualified ABLE program administered by the Iowa treasurer of state under the terms of Iowa Code chapter 12I. "Other qualified ABLE program" refers to any qualified ABLE program administered by another state with which the Iowa treasurer of state has entered into an agreement under the terms of Iowa Code section 12I.10 (see subrule 40.81(2) below). "Qualified ABLE program" means the same as defined in Section 529A of the Internal Revenue Code. "Qualified disability expenses" means the same as defined in Section 529A of the Internal Revenue Code. 40.81(2) Contracting with other states. Iowa Code section 12I.10 allows the treasurer of state to choose to defer implementation of Iowa’s own qualified ABLE program and instead enter into an agreement with another state that already has a qualified ABLE program, to provide Iowa residents access to that state’s qualified ABLE program, provided that the other state’s program meets the qualifications set out in Iowa Code section 12I.10(1). 40.81(3) Subtraction from net income for contributions made to the Iowa ABLE savings plan trust or other qualified ABLE program. For tax years beginning on or after January 1, 2016, individuals can subtract from their Iowa net income the amount contributed to the Iowa ABLE savings plan trust or other qualified ABLE program on behalf of a designated beneficiary during the tax year, subject to the maximum contribution level for that year.This subtraction is not allowed for any contribution that is a transfer from an Iowa educational savings plan trust account and that was previously deducted as a contribution to the Iowa educational savings plan trust. 40.81(4) Exclusion of interest and earnings on beneficiary accounts in the Iowa ABLE savings plan trust or other qualified ABLE program. For tax years beginning on or after January 1, 2016, to the extent that interest or other earnings accrue on an account in the Iowa ABLE savings plan trust or other qualified ABLE program (if the account owner is an Iowa resident), the interest or other earnings are excluded for purposes of computing net income on the designated beneficiary’s Iowa individual income tax return. 40.81(5) Addition to net income of amounts distributed to the participant from the Iowa ABLE savings plan trust or other qualified ABLE program that had previously been deducted. a. For tax years beginning on or after January 1, 2016, if a taxpayer, as an account owner, cancels the account owner’s account in the Iowa ABLE savings plan trust or other qualified ABLE program and receives a distribution of the funds in the account, the amount of the distribution shall be included in net income on the account owner’s Iowa individual income tax return to the extent that contributions to the account had been deducted on prior state individual income tax returns of the account owner or any other person as a contribution to the Iowa ABLE savings plan trust or other qualified ABLE programor as a contribution to an Iowa educational savings plan trust account. b. For tax years beginning on or after January 1, 2016, if a taxpayer makes a withdrawal of funds previously deducted by the taxpayer or any other person from the Iowa ABLE savings plan trust or other qualified ABLE program for purposes other than the payment of qualified disability expenses, the amount of the withdrawal shall be included in net income on the taxpayer’s Iowa individual income tax return to the extent that contributions to the account had been deducted on prior stateIowa individual income tax returns of the taxpayer or any other personas contributions to a qualified ABLE program or an Iowa educational savings plan trust account. 40.81(6) Maximum contribution level. The amount of the deduction available for an individual taxpayer each year for contributions on behalf of any one designated beneficiary to the Iowa ABLE savings plan trust or other qualified ABLE program may not exceed the maximum contribution level for that year. The maximum contribution level is set by the treasurer of state. The maximum contribution level is indexed yearly for inflation pursuant to Iowa Code section 12D.3(1)“a.”12D.3(1).This rule is intended to implement Iowa Code section 422.7 as amended by 2015 Iowa Acts, chapter 137. [Filed 5/29/19, effective 7/24/19][Published 6/19/19]Editor’s Note: For replacement pages for IAC, see IAC Supplement 6/19/19.ARC 4517CRevenue Department[701]Adopted and FiledRule making related to section 179 expensing
The Revenue Department hereby amends 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 adopted under the authority provided in Iowa Code section 422.68.State or Federal Law Implemented This rule making implements, in whole or in part, 2019 Iowa Acts, Senate File 220.Purpose and Summary Recently enacted 2019 Iowa Acts, Senate File 220, raises to $70,000 the 2018 Iowa section 179 deduction limitation for expensing certain depreciable business assets applicable to corporations (both C and S corporations) and other entities subject to the corporate income tax, and financial institutions subject to the franchise tax, with a reduction (phase-out) limitation of $280,000. Prior to Senate File 220, these higher limitations applied only to individuals and entities taxed as partnerships. These amendments update the existing charts in rules 701—40.65(422), 701—53.23(422), and 701—59.24(422) for individual income tax, corporate income tax, and franchise tax to reflect the higher limitations now applicable to corporations and financial institutions for 2018. These amendments update references to the lower limits in the rules and examples to reflect the higher limits and make several technical corrections. Finally, at the time these rules were originally adopted, the federal section 179 dollar and reduction limitation amounts as indexed for inflation for 2019 were not known. The Internal Revenue Service has since released these indexed amounts, so the updated amounts have been added to the charts provided in each of the three rules.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on April 24, 2019, as ARC 4406C. 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 May 29, 2019.Fiscal Impact This rule making has no fiscal impact beyond that of the legislation it is intended to implement, as described in the Legislative Services Agency Fiscal Note for 2019 Iowa Acts, Senate File 220. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date This rule making will become effective on July 24, 2019. The following rule-making actions are adopted:
ITEM 1. Amend rule 701—40.65(422) as follows: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 (both C and S corporations) are not the same; seeSee rule 701—53.23(422) for the section 179 limitations imposed onrules applicable to corporations(both C and S corporations) and other entities subject to the corporate income tax, and see rule 701—59.24(422) for the section 179 limitations imposed onrules applicable 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$ 400,0002004102,000410,000102,000410,0002005105,000420,000105,000420,0002006108,000430,000108,000430,0002007125,000500,000125,000500,0002008250,000800,000250,000800,0002009250,000800,000133,000530,0002010500,0002,000,000500,0002,000,0002011500,0002,000,000500,0002,000,0002012500,0002,000,000500,0002,000,0002013500,0002,000,000500,0002,000,0002014500,0002,000,000500,0002,000,0002015500,0002,000,000500,0002,000,0002016500,0002,010,00025,000200,0002017510,0002,030,00025,000200,00020181,000,0002,500,00070,000*280,0002019Indexed amount unknown as of 8/2/181,020,000Indexed amount unknown as of 8/2/182,550,000100,000400,0002020 and laterIowa limitations are the same as federal*The Iowa limitations for 2018 are applicable to individuals and pass-through entities other than corporations or financial institutions. For Iowa limitations applicable to corporations (both C and S 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 (both C and S corporations) 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 (both C and S 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 24172019 Iowa Acts, Senate File 220. ITEM 2. Amend rule 701—53.23(422) as follows: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 (both C and S 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; seeSee rule 701—40.65(422) for the section 179 limitations imposed onrules applicable to individuals and other noncorporate entities, and see rule 701—59.24(422) for the section 179 limitations subject torules applicable 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*70,000200,000280,0002019Indexed amount unknown as of 8/2/181,020,000Indexed amount unknown as of 8/2/182,550,000100,000400,0002020 and laterIowa limitations are the same as federal* The Iowa limitations for 2018 are applicable to corporations (both C and S corporations), entities subject to the corporate income tax, and financial institutions subject to the franchise tax. For Iowa limitations applicable to individuals 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, 20192018.For tax years beginning before January 1, 20192018, the amount of any section 179 deduction received by a corporation (both C and S corporations) 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 2019years 2018 and 2019.For tax years beginning on or after January 1, 20192018, but before January 1, 2020, a corporation (both C and S corporations) 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 24172019 Iowa Acts, Senate File 220. ITEM 3. Amend rule 701—59.24(422) as follows: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 (both C and S corporations) and other entities subject to the corporate income tax are not the same as the limitations applicable to individuals and other entities; seeSee rule 701—40.65(422) for the section 179 limitations imposed onrules applicable to individuals and other noncorporate entities, and see rule 701—53.23(422) for the section 179 limitations imposed onrules applicable to corporations (both C and S 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*70,000200,000280,0002019Indexed amount unknown as of 8/2/181,020,000Indexed amount unknown as of 8/2/182,550,000100,000400,0002020 and laterIowa limitations are the same as federal* These Iowa limitations for 2018 are applicable to financial institutions subject to the franchise tax, corporations (both C and S corporations), and entities subject to the corporate income tax. For Iowa limitations applicable to individuals 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, 20192018.For tax years beginning before January 1, 20192018, 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 2019years 2018 and 2019.For tax years beginning on or after January 1, 20192018, 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 (both C and S 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 24172019 Iowa Acts, Senate File 220. [Filed 5/29/19, effective 7/24/19][Published 6/19/19]Editor’s Note: For replacement pages for IAC, see IAC Supplement 6/19/19.