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    Bulletin 06-03-2020

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    ARC 5044CEnvironmental Protection Commission[567]Notice of Intended Action

    Proposing rule making related to aquatic life water quality criteria and providing an opportunity for public comment

        The Environmental Protection Commission hereby proposes to amend Chapter 61, “Water Quality Standards,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 455B.173(2).State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 455B.173(2).Purpose and Summary    The purpose of the proposed amendments is to update the current aquatic life water quality criteria with the latest scientific information on metal toxicity. Research has established dissolved metals (except for aluminum) more closely approximate the bioavailable fraction of metals in the water column rather than total recoverable metals (the current criteria). This new data indicates that the dissolved portion of metals in the water column is the portion that is most easily absorbed by aquatic life and is therefore a better measure of toxicity. Thus, measuring for total recoverable metals, in light of the new data, is an overly stringent approach. Because of this research, the Commission is proposing to convert the aquatic life water quality criteria from total recoverable metals to dissolved metals based on available conversion factors for the following metals: arsenic (III), cadmium, chromium (VI), lead, mercury, nickel, silver, and zinc. In addition, the aquatic life criteria for cadmium will be recalculated from the U.S. Environmental Protection Agency (EPA)-published 2016 national criteria for Iowa waters based on the resident aquatic species residing in Iowa waters.    Unlike other metals, some non-dissolved forms of aluminum can be toxic to aquatic life. As a result, the Commission is proposing aluminum aquatic life water quality criteria in the form of bioavailable concentration values, which include both dissolved and some non-dissolved (colloidal) aluminum which can be toxic to aquatic life. The proposed aluminum criteria also take into account new data which establish that aluminum bioavailability is dependent upon ambient levels of certain chemical parameters in the receiving stream, like pH, dissolved organic carbon, and hardness. These criteria were developed using the EPA’s 2017 toxicity data and site-specific water chemistry data for Iowa waters. The criteria also provide wastewater permittees the option of collecting data specific to the permittee’s own receiving stream. The Commission believes that the proposed aluminum criteria will provide greater flexibility to wastewater permittees while still protecting aquatic life.Fiscal Impact    This proposed rule making has no fiscal impact to the state of Iowa but will have a positive fiscal impact on the private sector. Thirty facilities are currently subject to the existing aluminum criteria. Of these 30 facilities, 7 facilities have had aluminum permit limit violations, currently have a compliance schedule for aluminum, or will have a compliance schedule in their upcoming wastewater permit, and have enough data for evaluation. The Commission estimates that three of those seven facilities will be able to comply with the proposed aluminum criteria and will therefore be able to avoid the cost of installing aluminum removal technology. The Commission estimates this savings to be $42,503,000.     Currently, 81 facilities are subject to the rest of the metals criteria (arsenic (III), cadmium, chromium (VI), lead, mercury, nickel, silver, and zinc). The Commission estimates that 13 facilities will be able to comply with the proposed dissolved metal criteria in this rule making and will therefore be able to avoid the cost of installing metals removal technology. The Commission estimates the savings to be between $42,746,700 and $52,763,000.    Therefore, the Commission estimates a total of 16 facilities may receive projected cost savings ranging from approximately $85 million to $95 million. A copy of the fiscal impact statement is available from the Department of Natural Resources (Department) upon request.Jobs Impact    After analysis and review of this rule making, these proposed amendments are expected to have a positive impact on jobs. Overall, the proposed rule making will result in a savings ranging from $85 million to $95 million for wastewater dischargers across the state. The savings will be achieved by dischargers who will be able to avoid the installation of costly treatment technology because of their ability to protect aquatic life in a more reasonable manner. The potential costs associated with this proposed rule making are negligible.     The savings resulting from this rule making will have a positive impact on private sector jobs and employment opportunities in the state. Lower wastewater treatment costs at industrial facilities are expected to have a positive impact on jobs because industries can put the savings toward investment in their businesses, including new hiring. Similarly, businesses and industries that discharge to municipal wastewater treatment plants will benefit from lower utility rates if the municipal wastewater treatment plant can lower its operating costs as a result of this rule making. That savings on utility rates for businesses and industries can be put toward investment in their companies to create jobs.     A copy of the jobs impact statement is available from the Department upon request.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to Chapter 561—10, as adopted by reference at 567—13.1(17A), to the extent such waiver is consistent with federal water quality standards requirements. 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 June 23, 2020. Comments should be directed to: Roger Bruner Department of Natural Resources Wallace State Office Building 502 East Ninth Street Des Moines, Iowa 50319 Email: roger.bruner@dnr.iowa.govPublic Hearing    A public hearing at which persons may present their views orally or in writing will be held via conference call as follows. Persons who wish to attend the conference call should contact Roger Bruner via email at roger.bruner@dnr.iowa.gov. A conference call number will be provided prior to the hearing. Persons who wish to make oral comments at the conference call public hearing must submit a request to Roger Bruner prior to the hearing to facilitate an orderly hearing. June 23, 2020 3 to 4 p.m. Video/conference call Wallace State Office Building     Persons who wish to make oral comments at the public hearing will 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 hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Amend subrule 61.3(3), TABLE 1, Criteria for Chemical Constituents, parameters for aluminum, arsenic (III), cadmium, chromium (VI), lead, mercury (II), nickel, silver, and zinc, as follows:AluminumChronic(r)87890(o)—87890(o)87890(o)87890(o)748890(o)——Acute(r)11062,500(o)—7502,500(o)7502,500(o)7502,500(o)9832,500(o)——Arsenic (III)Chronic(p)200150—150150150200150——Acute(p)360340—340340340360340——Human Health — Fish———————50(e)(g)Human Health — F & W———————.18(f)(g)CadmiumChronic(p)11.2(h)—.451.2(h).451.2(h).451.2(h)11.2(h)——Acute(p)43.4(h)—4.325.35(h)4.3212.5(h)4.3212.5(h)45.35(h)——Human Health + — Fish———————168(e)MCL——————5—Chromium (VI)Chronic(p)4011—1111111011——Acute(p)6016—1616161516——Human Health + — Fish———————3365(e)MCL——————100—LeadChronic(p)35.3(j)—7.75.3(j)7.75.3(j)7.75.3(j)35.3(j)——Acute(p)80136(j)—197136(j)197136(j)197136(j)80136(j)——MCL——————50—Mercury (II)Chronic(p)3.50.77—.90.77.90.77.90.77.910.77——Acute(p)6.51.4—1.641.41.641.41.641.41.71.4——Human Health + — Fish———————.15(e)Human Health + — F & W———————.05(f)NickelChronic(p)35093(k)—93(k)93(k)93(k)15093(k)——Acute(p)3250840(k)—843840(k)843840(k)843840(k)1400840(k)——Human Health + — Fish———————4600(e)Human Health + — F & W———————610(f)SilverChronic(p)N/A—N/AN/AN/AN/A——Acute(p)3011—3.8113.8113.811411——MCL——————50—ZincChronic(p)200210(l)—215210(l)215210(l)215210(l)100210(l)——Acute(p)220210(l)—215210(l)215210(l)215210(l)110210(l)——Human Health + — Fish———————26*(e)Human Health + — F & W———————7.4*(f)

        ITEM 2.    Amend subrule 61.3(3), TABLE 1, footnotes (h), (j), (k), and (l), as follows:(h)Class B(WW-1), B(WW-2), and B(WW-3)The acute and chronic criteria listed in main table are based on a hardness of 200 mg/l (as CaCO3 (mg/l)). Numerical criteria (µg/l) for cadmium are a function of hardness (as CaCO3 (mg/l)) using the equation for each use according to the following tableequations:B(WW-1)B(CW1)B(WW-2)B(WW-1)&B(LW)B(WW-3)B(WW-2)&B(WW-3)Acutee[1.0166Ln(Hardness) - 3.924](1.136672 - [(ln hardness) × (0.041838)])* e(0.9789 × ln(hardness) – 3.866)e[1.0166Ln(Hardness) - 3.924](1.136672 - [(ln hardness) × (0.041838)])* e(0.9789 × ln(hardness) – 3.4210)e[1.0166Ln(Hardness) - 3.924](1.136672 - [(ln hardness) × (0.041838)])* e(0.9789 × ln(hardness) – 2.5750)Chronice[0.7409Ln(Hardness) - 4.719](1.101672 - [(ln hardness) × (0.041838)])* e0.7977 × ln(hardness) – 3.909)e[0.7409Ln(Hardness) - 4.719](1.101672 - [(ln hardness) × (0.041838)])* e0.7977 × ln(hardness) – 3.909)e[0.7409Ln(Hardness) - 4.719](1.101672 - [(ln hardness) × (0.041838)])* e0.7977 × ln(hardness) – 3.909)(j)Class B(WW-1), B(WW-2), and B(WW-3)The acute and chronic criteria listed in main table are based on a hardness of 200 mg/l (as CaCO3 (mg/l)). Numerical criteria (µg/l) for lead are a function of hardness (CaCO3 (mg/l)) using the equation for each use according to the following tableequations:B(WW-1)B(WW-2)B(WW-3)Acute(1.46203-[(ln hardness)(0.145712)]) × e[1.2731Ln(Hardness) - 1.46]e[1.2731Ln(Hardness) - 1.46]e[1.2731Ln(Hardness) - 1.46]Chronic(1.46203-[(ln hardness)(0.145712)]) × e[1.2731Ln(Hardness) - 4.705]e[1.2731Ln(Hardness) - 4.705]e[1.2731Ln(Hardness) - 4.705](k)Class B(WW-1), B(WW-2), and B(WW-3)The acute and chronic criteria listed in main table are based on a hardness of 200 mg/l (as CaCO3 (mg/l)). Numerical criteria (µg/l) for nickel are a function of hardness (CaCO3 (mg/l)) using the equation for each use according to the following tableequations:B(WW-1)B(WW-2)B(WW-3)Acute0.998 × e[0.846Ln(Hardness) + 2.255]e[0.846Ln(Hardness) + 2.255]e[0.846Ln(Hardness) + 2.255]Chronic0.997 × e[0.846Ln(Hardness) + 0.0584]e[0.846Ln(Hardness) + 0.0584]e[0.846Ln(Hardness) + 0.0584](l)Class B(WW-1), B(WW-2), and B(WW-3)The acute and chronic criteria listed in main table are based on a hardness of 200 mg/l (as CaCO3 (mg/l)). Numerical criteria (µg/l) for zinc are a function of hardness (CaCO3 (mg/l)) using the equation for each use according to the following tableequations:B(WW-1)B(WW-2)B(WW-3)Acute0.978 × e[0.8473Ln(Hardness) + 0.884]e[0.8473Ln(Hardness) + 0.884]e[0.8473Ln(Hardness) + 0.884]Chronic0.986 × e[0.8473Ln(Hardness) + 0.884]e[0.8473Ln(Hardness) + 0.884]e[0.8473Ln(Hardness) + 0.884]

        ITEM 3.    Adopt the following new footnotes (o), (p), (q), and (r) in subrule 61.3(3), TABLE 1, Criteria for Chemical Constituents:(o)The acute and chronic criteria listed in Table 1 are calculated using Aluminum Criteria Calculator V2.0 (Excel) as described in “Final Aquatic Life Ambient Water Quality Criteria for Aluminum 2018 (EPA-822-R-18-001), December 2018.” The criteria were calculated using the lowest 10th percentile of individual model outputs using spatially and temporally representative model inputs from across the state.(p)The criteria are expressed as dissolved concentration.(q)The silver criteria listed in Table 1 are based on a hardness of 200 mg/l (as CaCO3 (mg/l)). Numerical criteria (μg/l) for silver are a function of hardness (CaCO3 (mg/l)) using the following equation: Acute 0.85× e[1.72Ln(Hardness)-6.59](r)The criteria are expressed as the bioavailable fraction.    ARC 5043CProfessional Licensure Division[645]Notice of Intended Action

    Proposing rule making related to the licensure, practice, and discipline of physician assistants and providing an opportunity for public comment

        The Iowa Board of Physician Assistants hereby proposes to amend Chapter 326, “Licensure of Physician Assistants,” Chapter 327, “Practice of Physician Assistants,” and Chapter 329, “Discipline for Physician Assistants,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 147.76 and 2020 Iowa Acts, Senate File 2357.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 148C.Purpose and Summary    2020 Iowa Acts, Senate File 2357, signed by Governor Reynolds on March 18, 2020, requires the Board of Physician Assistants to amend, rescind, and adopt rules in substantial compliance with Sections 9 and 10 of the Act.  Sections 9 and 10 of the Act instruct the Board to make numerous changes within its licensure, practice, and discipline administrative code chapters.  This proposed rule making implements the Act’s amendments, rescissions, and adoptions to the Board’s rules. Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    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. 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 June 23, 2020. Comments should be directed to: Susan Reynolds Professional Licensure Division Iowa Department of Public Health Lucas State Office Building 321 East 12th Street Des Moines, Iowa 50319 Email: susan.reynolds@idph.iowa.govPublic Hearing    A public hearing at which persons may present their views orally or in writing will be held as follows: June 23, 2020 8 to 8:30 a.m. Fifth Floor Conference Room 526 Lucas State Office Building Des Moines, Iowa     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. In an effort to ensure accuracy in memorializing a person’s comments, a person may provide written comments in addition to or in lieu of oral comments at the hearing.    Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Board and advise of specific needs. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Amend rule 645—326.1(148C), definitions of “Approved program,” “Opioid,” “Physician assistant,” “Remote medical site” and “Supervising physician,” as follows:        "Approved program" means a program for the education of physician assistants which has been accredited by the American Medical Association’s Committee on Allied Health Education and Accreditation, by its successor, the Commission on Accreditation of Allied Health Education Programs, or by its successor, the Accreditation Review Commission on Education for the Physician Assistant, or its successor, or, if accredited prior to 2001, either by the Committee on Allied Health Education and Accreditation or the Commission on Accreditation of Allied Health Education Programs.        "Opioid" means a drug that produces an agonist effect on opioid receptors and is indicated or used for the treatment of painor opioid use disorder.        "Physician assistant" "PA" means a person licensed as a physician assistant by the board.        "Remote medical site" means a medical clinic for ambulatory patients which ismore than 30 miles away from the main practice location of a supervising physician and in which a supervising physician is present less than 50 percent of the time the site is open. “Remote medical site” willdoes not apply to nursing homes, patient homes, hospital outpatient departments, outreach clinics, or any location at which medical care is incidentally provided, such as a(e.g., diet center, free clinic, site for athletic physicals,or a jail facility).        "Supervising physician" means a physician who supervises the medical services provided by the physician assistantconsistent with the physician assistant’s education, training, or experience and who accepts ultimate responsibility for the medical care provided by the physician/physicianphysician-physician assistant team.

        ITEM 2.    Adopt the following new definition of “Collaboration” in rule 645—326.1(148C):        "Collaboration" means consultation with or referral to the appropriate physician or other health care professional by a physician assistant as indicated by the patient’s condition; the education, competencies, and experience of the physician assistant; and the standard of care.

        ITEM 3.    Amend rule 645—326.6(148C) as follows:

    645—326.6(148C) Examination requirements.  The applicant for licensure as a physician assistant shall successfully pass the certifying examination for physician assistants conducted by the National Commission on Certification of Physician Assistants or a successor examination approved by the boardof physician assistants.

        ITEM 4.    Amend rule 645—326.15(148C) as follows:

    645—326.15(148C,88GA,ch1020) Use of title.  A physician assistant licensed under Iowa Code chapter 148C may use the words “physician assistant” after the person’s name or signify the same by the use of the letters “PA.”A person who meets the qualifications for licensure under Iowa Code chapter 148C but does not possess a current license may use the title “PA” or “physician assistant” but may not act or practice as a physician assistant unless licensed under Iowa Code chapter 148C.

        ITEM 5.    Amend rule 645—326.18(148C) as follows:

    645—326.18(148C) Recognition of an approved program.  The board shall recognize a program for education and training of physician assistants if it is accredited by the American Medical Association’s Committee on Allied Health Education and Accreditation, by its successor, the Commission on Accreditation of Allied Health Educational Programs, or by its successor, the Accreditation Review Commission on Education for the Physician Assistant, or its successor, or, if accredited prior to 2001, either by the Committee on Allied Health Education and Accreditation or the Commission on Accreditation of Allied Health Educational Programs.       This rule is intended to implement Iowa Code section 148C.2.

        ITEM 6.    Amend paragraph 326.19(3)"b" as follows:    b.    If the license has been on inactive status for more than five years, an applicant must provide the following:    (1)   Verification of the license(s) from every jurisdiction in which the applicant is or has been licensed and is or has been practicing during the time period the Iowa license was inactive, sent directly from the jurisdiction(s) to the board office. Web-based verification may be substituted for verification from a jurisdiction’s board office if the verification includes:
    1. Licensee’s name;
    2. Date of initial licensure;
    3. Current licensure status; and
    4. Any disciplinary action taken against the license; and
        (2)   Verification of completion of 200 hours of continuing education within two years of application for reactivation, of which at least 40 percent of the hours completed shall be in Category I, or NCCPA or successor agency certification; and.    (3)   Information on each supervising physician.

        ITEM 7.    Amend rule 645—327.1(148C) as follows:

    645—327.1(148C,88GA,ch1020) Duties.  The medical services to be provided by the physician assistant are those for which the physician assistant has been prepared by education, training, or experience and is competent to perform. The ultimate role of the physician assistant cannot be rigidly defined because of the variations in practice requirements due to geographic, economic, and sociologic factors. The high degree of responsibility a physician assistant may assume requires that, at the conclusion of the formal education, the physician assistant possess the knowledge, skills, and abilities necessary to provide those services appropriate to the practice setting. The physician assistant’s services may be utilized in any clinical settings including but not limited to the office, the ambulatory clinic, the hospital, the patient’s home, extended care facilities, and nursing homes. Diagnostic and therapeutic medical tasks for which the supervising physician has sufficient training or experience may be delegated to the physician assistant after a supervising physician determines the physician assistant’s proficiency and competence.    327.1(1)   A physician assistant’s duties relating to prescribing, dispensing, ordering, administering, and procuring drugs and medical devices include all of the following:    a.    Administering any drug.    b.    Prescribing, dispensing, ordering, administering, and procuring drugs and medical devices. A physician assistant may plan and initiate a therapeutic regimen that includes ordering and prescribing nonpharmacological interventions including but not limited to durable medical equipment, nutrition, blood and blood products; and diagnostic support services including but not limited to home health care, hospice, and physical and occupational therapy. The prescribing and dispensing of drugs may include Schedule II through V substances, as described in Iowa Code chapter 124, and all legend drugs.    c.    A physician assistant may prescribe drugs and medical devices subject to all of the following conditions:    (1)   The physician assistant shall have passed the national certifying examination conducted by the National Commission on the Certification of Physician Assistants or its successor examination approved by the board. Physician assistants with temporary licenses may order drugs and medical devices only with the prior approval and direction of a supervising physician. Prior approval may include discussion of the specific medical problems with a supervising physician prior to the patient being seen by the physician assistant.    (2)   The physician assistant must comply with appropriate federal and state regulations.    (3)   If a physician assistant prescribes or dispenses controlled substances, the physician assistant must register with the federal Drug Enforcement Administration.    (4)   The physician assistant may prescribe or order Schedule II controlled substances which are listed as depressants in Iowa Code chapter 124 only with the prior approval and direction of a supervising physician who has sufficient training and experience. Prior approval may include discussion of the specific medical problems with a supervising physician prior to the patient being seen by the physician assistant.    (5)   A physician assistant shall not prescribe substances that the physician assistant’s supervising physician does not have the authority to prescribe, except as allowed by paragraph 327.1(2)“n.”    (6)   The physician assistant may prescribe, supply, and administer drugs and medical devices in all settings, including but not limited to hospitals, health care facilities, health care institutions, clinics, offices, health maintenance organizations, and outpatient and emergency care settings.    (7)   A physician assistant may request, receive, and supply sample drugs and medical devices.    (8)   The board of physician assistants shall be the only board to regulate the practice of physician assistants relating to prescribing and supplying prescription drugs, controlled substances, and medical devices.    d.    Supplying properly packaged and labeled prescription drugs, controlled substances, or medical devices when pharmacist services are not reasonably available or when it is in the best interest of the patient.    (1)   If the physician assistant is the prescriber of the medications supplied pursuant to this paragraph, the medications supplied shall be for the purpose of accommodating the patient and shall not be sold for more than the cost of the drug and reasonable overhead costs as they relate to supplying prescription drugs to the patient and not at a profit to the physician or physician assistant.    (2)   A nurse or staff assistant may assist the physician assistant in supplying medications.    327.(1) 327.1(2)   The medical services to be provided by the physician assistant are those delegated by a supervising physician. The ultimate role of the physician assistant cannot be rigidly defined because of the variations in practice requirements due to geographic, economic, and sociologic factors. The high degree of responsibility a physician assistant may assume requires that, at the conclusion of the formal education, the physician assistant possess the knowledge, skills and abilities necessary to provide those services appropriate to the practice setting. The physician assistant’s services may be utilized in any clinical settings including, but not limited to, the office, the ambulatory clinic, the hospital, the patient’s home, extended care facilities and nursing homes. Diagnostic and therapeutic medical tasks for which the supervising physician has sufficient training or experience may be delegated to the physician assistant after a supervising physician determines the physician assistant’s proficiency and competence. The medical services to be provided by the physician assistantalso include, but are not limited to, the following:    a.    The initial approach to a patient of any age group in any setting to elicit a medical history and perform a physical examination.    b.    Assessment, diagnosis and treatment of medical or surgical problems and recording the findings.    c.    Order, interpret, or perform laboratory tests, X-rays or other medical procedures or studies.    d.    Performance of therapeutic procedures such as injections, immunizations, suturing and care of wounds, removal of foreign bodies, ear and eye irrigation and other clinical procedures.    e.    Performance of office surgical procedures including, but not limited to, skin biopsy, mole or wart removal, toenail removal, removal of a foreign body, arthrocentesis, incision and drainage of abscesses.    f.    Assisting in surgery.    g.    Prenatal and postnatal care and assisting a physician in obstetrical care.    h.    Care of orthopedic problems.    i.    Performing and screening the results of special medical examinations including, but not limited to, electrocardiogram or Holter monitoring, radiography, audiometric and vision screening, tonometry, and pulmonary function screening tests.    j.    Instruction and counseling of patients regarding physical and mental health on matters such as diets, disease, therapy, and normal growth and development.    k.    Function in the hospital setting by performing medical histories and physical examinations, making patient rounds, recording patient progress notes and other appropriate medical records, assisting in surgery, performing or assisting with medical procedures, providing emergency medical services and issuing, transmitting and executing patient care orders as delegated by the supervising physician.    l.    Providing services to patients requiring continuing care (i.e., home, nursing home, extended care facilities).    m.    Referring patients to specialty or subspecialty physicians, medical facilities or social agencies as indicated by the patients’ problems.    n.    Immediate evaluation, treatment and institution of procedures essential to providing an appropriate response to emergency medical problems.    o.    Order drugs and supplies in the office, and assist in keeping records and in the upkeep of equipment.    p.    Admit patients to a hospital or health care facility.    q.    Order diets, physical therapy, inhalation therapy, or other rehabilitative services as indicated by the patient’s problems.    r.    Administer any drug (a single dose).    s.    Prescribe drugs and medical devices under the following conditions:    (1)   The physician assistant shall have passed the national certifying examination conducted by the National Commission on the Certification of Physician Assistants or its successor examination approved by the board. Physician assistants with a temporary license may order drugs and medical devices only with the prior approval and direction of a supervising physician. Prior approval may include discussion of the specific medical problems with a supervising physician prior to the patient’s being seen by the physician assistant.    (2)   The physician assistant may not prescribe Schedule II controlled substances which are listed as depressants in Iowa Code chapter 124. The physician assistant may order Schedule II controlled substances which are listed as depressants in Iowa Code chapter 124 only with the prior approval and direction of a physician. Prior approval may include discussion of the specific medical problems with a supervising physician prior to the patient’s being seen by the physician assistant.    (3)   The physician assistant shall inform the board of any limitation on the prescriptive authority of the physician assistant in addition to the limitations set out in 327.1(1)“s”(2).    (4)   A physician assistant shall not prescribe substances that the supervising physician does not have the authority to prescribe except as allowed in 327.1(1)“n.”    (5)   The physician assistant may prescribe, supply and administer drugs and medical devices in all settings including, but not limited to, hospitals, health care facilities, health care institutions, clinics, offices, health maintenance organizations, and outpatient and emergency care settings except as limited by 327.1(1)“s”(2).    (6)   A physician assistant who is an authorized prescriber may request, receive, and supply sample drugs and medical devices except as limited by 327.1(1)“s”(2).    (7)   The board of physician assistants shall be the only board to regulate the practice of physician assistants relating to prescribing and supplying prescription drugs, controlled substances and medical devices.    t.    Supply properly packaged and labeled prescription drugs, controlled substances or medical devices when pharmacist services are not reasonably available or when it is in the best interests of the patient as delegated by a supervising physician.    (1)   When the physician assistant is the prescriber of the medications under 327.1(1)“s,” these medications shall be supplied for the purpose of accommodating the patient and shall not be sold for more than the cost of the drug and reasonable overhead costs as they relate to supplying prescription drugs to the patient and not at a profit to the physician or physician assistant.    (2)   When a physician assistant supplies medication on the direct order of a physician, subparagraph (1) does not apply.    (3)   A nurse or staff assistant may assist the physician assistant in supplying medications when prescriptive drug supplying authority is delegated by a supervising physician to the physician assistant under 327.1(1)“s.”    u.    When a physician assistant supplies medications as delegated by a supervising physician in a remote site, the physician assistant shall secure the regular advice and consultation of a pharmacist regarding the distribution, storage and appropriate use of presciption drugs, controlled substances, and medical devices.    v.    r.    May, atAt the request of the peace officer, withdraw a specimen of blood from a patient for the purpose of determining the alcohol concentration or the presence of drugs.    w.    s.    Direct medical personnel, health professionals, and others involved in caring for patients inand the execution of patient care.    x.    t.    May authenticateAuthenticate medical forms by signing the form and including a supervising physician’s name.    y.    u.    Perform other duties appropriate to a physician’sphysician assistant’s practice.    z.    v.    Health care providers shall consider the instructions of thea physician assistant to be instructions of a supervising physician if the instructions concern duties delegated to the physician assistant by the supervising physicianauthoritative.    327.(2) 327.1(3)   Emergency medicine duties.    a.    A physician assistant may be a member of the staff of an ambulance or rescue squad pursuant to Iowa Code chapter 147A.    b.    A physician assistant shall document skills, training and education equivalent to that required of a certified advanced emergency medical technician or a paramedic.    c.    A physician assistant must apply for approval of advanced care training equivalency on forms supplied by the board of physician assistants.    d.    Exceptions to this subrule include:    (1)   A physician assistant who accompanies and is responsible for a transfer patient;    (2)   A physician assistant who serves on a basic ambulance or rescue squad service; and    (3)   A physician assistant who renders aid within the physician assistant’s skills during an emergency.

        ITEM 8.    Amend rule 645—327.4(148C) as follows:

    645—327.4(148C,88GA,ch1020) Remote medical site.      327.4(1)   A physician assistant may provide medical services in a remote medical site if oneany of the following three conditions is met:    a.    The physician assistant has a permanent license and at least one year of practice as a physician assistant; or    b.    The physician assistant with less than one year of practice has a permanent license and meetsall of the following criteria:    (1)   The physician assistant has practiced as a physician assistant for at least six months; and    (2)   The physician assistant and supervising physician have worked together at the same location for a period of at least three months; and    (3)   The supervising physician reviews patient care provided by the physician assistant at least weeklyas determined to be appropriate by the supervising physician; and    (4)   The supervising physician signs allreviews a representative sample of patient charts unless the medical record documents that direct consultation with the supervising physician occurredfor a period the supervising physician determines is appropriate; or    c.    The physician assistant and supervising physician provide a written statement sent directly to the board that the physician assistant is qualified to provide the needed medical services and that the medical care will be unavailable at the remote site unless the physician assistant is allowed to practice there. In addition, for three months, the supervising physician must review patient care provided by the physician assistant at least weekly and must sign alla representative sample of patient charts unless the medical record documents that direct consultation with the supervising physician occurredfor patient care provided by the physician assistant at least weekly.    327.4(2)   The supervising physician must visit a remote site or communicate with the physician assistant at the remote site via electronic communications to provide additional medical direction, medical services, and consultation at least every two weeks. Forthe purposes of this rule, communication may consist of, but shall not be limited to, in-person meetings, two-way interactive communication directly between the supervising physician and the physician assistant via the telephone, secure messaging, electronic mail, or chart review. At least one supervising physician must meet in person with the physician assistant at the remote medical site at least once every six months to evaluate and discuss the medical facilities, resources, and medical services provided at the remote medical site.

        ITEM 9.    Amend rule 645—327.5(147) as follows:

    645—327.5(147,88GA,ch1020) Identification as a physician assistant.  The physician assistant shall be identified as a physician assistant to patients and to the public, regardless of the physician assistant’s educational degree.

        ITEM 10.    Amend subrule 327.6(2) as follows:    327.6(2)   Each oral prescription drug order issued by a physician assistant shall include the same information required for a written prescription, except for the written signature of the physician assistant and thephysician assistant’s practice address of the practitioners.

        ITEM 11.    Amend subrule 329.2(25) as follows:    329.2(25)   Representing oneself as a physician assistant when one’s license has been suspended or revoked, or when one’s license is on inactive status, except as provided by rule 645—326.15(148C).    ARC 5045CInsurance Division[191]Adopted and Filed

    Rule making related to best interest standard for insurance securities and professionals

        The Insurance Division hereby amends Chapter 15, “Unfair Trade Practices,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 507B.12.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 507B.4A.Purpose and Summary    This rule making requires annuity agents to act in the best interest of their customers. This rule making follows efforts by the National Association of Insurance Commissioners (NAIC) to develop a model Suitability in Annuity Transactions Model Regulation that is harmonized with rule making by the U.S. Securities and Exchange Commission (SEC). Iowans choose professional financial services either through fee arrangements or through transactional commission arrangements based on their particular needs. Requiring high-quality financial advice that fits the particular needs, objectives and situation of the individual Iowan has always been the Division’s primary purpose.    This rule making preserves consumer choice so that many more middle-class Iowans will retain access to retirement education and security that they choose. The detailed regulatory framework promotes informing consumers about risks, benefits and costs of any recommended transaction.    This standard requires the annuity agent to only make recommendations that match the particular Iowan’s needs, objectives and situation without placing the producer’s or the insurer’s financial interest ahead of the consumer’s interest. This rule making is consistent with the efforts of the SEC and will be very beneficial to consumers.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on March 25, 2020, as ARC 4998C. A public hearing was held on April 28, 2020, at 10 a.m. via conference call. More than 40 people attended via phone or computer. Several individuals provided brief comments at the hearing summarizing their written comments.    The Division received 16 written comment letters. Several comment letters requested guidance regarding the sales contest drafting note included in the NAIC model regulation. As the Division stated during the hearing, the Division has the ability to issue bulletins as necessary to provide additional guidance regarding any insurance regulation. Some comment letters expressed support for the insurance portion of the rule making.    Several comment letters raised a concern with proceeding with the securities portion of the rule making, given the current COVID-19 health pandemic affecting business operations. In response to these comments, the Division has decided to postpone the securities portion of the rule making and anticipates publishing a new Notice of Intended Action related to the securities portion of the rule making this summer. Item 9 from the Notice has not been adopted.    The Division made no changes to the insurance portion of the rule making.Adoption of Rule Making    This rule making was adopted by Douglas M. Ommen, Iowa Insurance Commissioner, on May 11, 2020.Fiscal Impact    The fiscal impact cannot be determined.     These amendments are necessary to coordinate Iowa law with federal law in the wake of the Securities and Exchange Commission-implemented Regulation Best Interest. These amendments materially increase the Division’s regulatory responsibilities by adding a new state level best interest obligation to the existing suitability standards. Expenditure of Division resources will increase in order to ensure compliance with the rules. The resources available for these purposes are unclear, as is the extent of a future examination program that focuses on the new obligations. There will be no increase in revenues as a result of this rule making.     Overall, the existing Division rules have compliance costs for industry participants. The Division expects these amendments to have additional implementation costs as firms update their internal systems to comply with the new requirements. The extent and materiality of these one-time costs are indeterminate. The costs will be somewhat mitigated in that the insurance rule provides a safe harbor for financial professionals who comply with comparable federal standards. Coordinating with federal duties would add no additional burdens in order to comply with the best interest standard. This rule making requires insurers to have a supervision system and to provide training. Neither of these are new requirements, but the rule making could result in the industry’s having to expend resources to refine or update its supervision system and training programs. Those costs are indeterminate. Moreover, the ongoing costs of complying with this rule making, after the one-time implementation costs, are uncertain as well.     Overall, while the rule making may result in a fiscal impact to the industry, there is an overall benefit in that the Division rules coordinate with federal standards.     Purchasers of annuities should benefit from this rule making due to enhanced standards of care placed on licensed industry professionals. It is not possible to quantify the impact in any given transaction, but overall the expectation is that purchasers/investors will end up with products that better fit their needs. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    The Division’s general rules regarding waivers 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 will become effective on July 8, 2020.    The following rule-making actions are adopted:

        ITEM 1.    Amend rule 191—15.72(507B) as follows:

    191—15.72(507B) Purpose.  The purpose of these rules is to requireproducers, as defined in rule 191—15.74(507B), to act in the best interest of the consumer when making a recommendation of an annuity and to require insurers to establishand maintain a system to supervise recommendations and to set forth standards and procedures for recommendations to consumers that result in transactions involving annuity products so that the insurance needs and financial objectives of consumers at the times of the transactions are appropriatelyeffectively addressed.Nothing herein shall be construed to create or imply a private cause of action for a violation of these rules or to subject a producer to civil liability under the best interest standard of care outlined in rule 191—15.75(507B) or under standards governing the conduct of a fiduciary or a fiduciary relationship.

        ITEM 2.    Amend rule 191—15.73(507B) as follows:

    191—15.73(507B) Applicability and scope.      15.73(1)   These rules shall apply to anysale or recommendation to purchase, exchange or replaceof an annuity made to a consumer on or after January 1, 2011, by an insurance producer, or by an insurer where no producer is involved, that results in the purchase, exchange or replacement recommended2021.    15.73(2)   Unless otherwise specifically included, this rule shallthese rules do not apply to transactions involving:    a.    Direct-response solicitations where there is no recommendation based on information collected from the consumer pursuant to these rules.;    b.    Contracts used to fund the following:    (1)   An employee pension or welfare benefit plan that is covered by the Employee Retirement and Income Security Act (ERISA);     (2)   A plan described by Section 401(a), 401(k), 403(b), 408(k) or 408(p) of the Internal Revenue Code (IRC) if established or maintained by an employer;     (3)   A government or church plan defined in Section 414 of the IRC, a government or church welfare benefit plan, or a deferred compensation plan of a state or local government or tax-exempt organization under Section 457 of the IRC;or    (4)   A nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor;     (5)   c.    Settlements or assumptions of liabilities associated with personal injury litigation or any dispute or claim resolution process; or    (6)   d.    Formal prepaid funeral contracts.

        ITEM 3.    Amend rule 191—15.74(507B) as follows:

    191—15.74(507B) Definitions.  For purposes of this division:        "Annuity" means an annuity that is an insurance product under state law, individually solicited, whether the product is classified as an individual or group annuity.        "Cash compensation" means any discount, concession, fee, service fee, commission, sales charge, loan, override, or cash benefit received by a producer in connection with the recommendation or sale of an annuity from an insurer, intermediary, or directly from the consumer.        "Consumer profile information" means information that is reasonably appropriate to determine whether a recommendation addresses the consumer’s financial situation, insurance needs and financial objectives, including, at a minimum, the following:
    1. Age;
    2. Annual income;
    3. Financial situation and needs, including debts and other obligations;
    4. Financial experience;
    5. Insurance needs;
    6. Financial objectives;
    7. Intended use of the annuity;
    8. Financial time horizon;
    9. Existing assets or financial products, including investment, annuity and insurance holdings;
    10. Liquidity needs;
    11. Liquid net worth;
    12. Risk tolerance, including, but not limited to, willingness to accept nonguaranteed elements in the annuity;
    13. Financial resources used to fund the annuity; and
    14. Tax status.
            "Continuing education credit" "CE credit" means one credit as defined in rule 191—11.2(505,522B).        "Continuing education provider" "CE provider" means a CE provider as defined in rule 191—11.2(505,522B).        "FINRA" means the Financial Industry Regulatory Authority or a succeeding agency.        "Insurance producer" means a person required to be licensed under the laws of this state to sell, solicit or negotiate insurance, including annuities.        "Insurer" means a company required to be licensed under the laws of this state to provide insurance products, including annuities.        "Intermediary" means an entity contracted directly with an insurer or with another entity contracted with an insurer to facilitate the sale of the insurer’s annuities by producers.        "Material conflict of interest" means a financial interest of the producer in the sale of an annuity that a reasonable person would expect to influence the impartiality of a recommendation. “Material conflict of interest” does not include cash compensation or noncash compensation.        "Noncash compensation" means any form of compensation that is not cash compensation, including, but not limited to, health insurance, office rent, office support and retirement benefits.        "Nonguaranteed elements" means the premiums, credited interest rates (including any bonus), benefits, values, dividends, non-interest based credits, charges or elements of formulas used to determine any of these, that are subject to company discretion and are not guaranteed at issue. An element is considered nonguaranteed if any of the underlying nonguaranteed elements are used in its calculation.        "Producer" means a person or entity required to be licensed under the laws of this state to sell, solicit or negotiate insurance, including annuities. For purposes of these rules, “producer” includes an insurer where no producer is involved.        "Recommendation" means advice provided by an insurancea producer, or an insurer where no producer is involved, to an individual consumer that resultswas intended to result or does result in a purchase,an exchange ora replacement of an annuity in accordance with that advice.Recommendation does not include general communication to the public, generalized customer services assistance or administrative support, general educational information and tools, prospectuses, or other product and sales material.        "Replacement" means a transaction in which a new policy or contractannuity is to be purchased, and it is known or should be known to the proposing producer, or to the proposing insurer if there is nowhether or not a produceris involved, that, by reason of the transaction, an existingannuity or other insurance policy or contract has been or is to beany of the following:
    1. Lapsed, forfeited, surrendered or partially surrendered, assigned to the replacing insurer or otherwise terminated;
    2. Converted to reduced paid-up insurance, continued as extended term insurance, or otherwise reduced in value by the use of nonforfeiture benefits or other policy values;
    3. Amended so as to effect either a reduction in benefits or in the term for which coverage would otherwise remain in force or for which benefits would be paid;
    4. Reissued with any reduction in cash value; or
    5. Used in a financed purchase.
            "Suitability information" means information that is reasonably appropriate to determine the suitability of a recommendation, including the following:
    1. Age;
    2. Annual income;
    3. Financial situation and needs, including the financial resources used for the funding of the annuity;
    4. Financial experience;
    5. Financial objectives;
    6. Intended use of the annuity;
    7. Financial time horizon;
    8. Existing assets, including investment and life insurance holdings;
    9. Liquidity needs;
    10. Liquid net worth;
    11. Risk tolerance; and
    12. Tax status.
            "SEC" means the United States Securities and Exchange Commission.

        ITEM 4.    Amend rule 191—15.75(507B) as follows:

    191—15.75(507B) Duties of insurers and of insurance producers.      15.75(1) Best interest obligations.  In recommending to a consumer the purchase of an annuity or the exchange of an annuity that results in another insurance transaction or series of insurance transactions, the insurance producer, or the insurer where no producer is involved, shall have reasonable grounds for believing that the recommendation is suitable for the consumer on the basis of the facts disclosed by the consumer as to the consumer’s investments and other insurance products and as to the consumer’s financial situation and needs, including the consumer’s suitability information, and that there is a reasonable basis to believe all of the following:A producer, when making a recommendation of an annuity, shall act in the best interest of the consumer under the circumstances known at the time the recommendation is made, without placing the producer’s or the insurer’s financial interest ahead of the consumer’s interest. A producer has acted in the best interest of the consumer if the producer has satisfied the following obligations regarding care, disclosure, conflict of interest and documentation:    a.    Care obligation.The    (1)   The producer, in making a recommendation shall exercise reasonable diligence, care and skill to:    1.   Know the consumer’s financial situation, insurance needs and financial objectives;    2.   Understand the available recommendation options after making a reasonable inquiry into options available to the producer;     3.   Have a reasonable basis to believe the recommended option effectively addresses the consumer’s financial situation, insurance needs and financial objectives over the life of the product, as evaluated in light of the consumer profile information; and     4.   Communicate the basis or bases of the recommendation.     (2)   The requirements under subparagraph 15.75(1)“a”(1) include making reasonable efforts to obtain consumer profile information from the consumer prior to the recommendation of an annuity.    (3)   The requirements under subparagraph 15.75(1)“a”(1) require a producer to consider the types of products the producer is authorized and licensed to recommend or sell that address the consumer’s financial situation, insurance needs and financial objectives. This does not require analysis or consideration of any products outside the authority and license of the producer or other possible alternative products or strategies available in the market at the time of the recommendation. Producers shall be held to standards applicable to producers with similar authority and licensure.    (4)   The requirements under this subrule do not create a fiduciary obligation or relationship and only create a regulatory obligation as established in these rules.    (5)   The consumer profile information, characteristics of the insurer, and product costs, rates, benefits and features are those factors generally relevant in making a determination whether an annuity effectively addresses the consumer’s financial situation, insurance needs and financial objectives, but the level of importance of each factor under the care obligation of this paragraph may vary depending on the facts and circumstances of a particular case. However, each factor may not be considered in isolation.    (6)   The requirements under subparagraph 15.75(1)“a”(1) include having a reasonable basis to believe the consumer would benefit from certain features of the annuity, such as annuitization, death or living benefit or other insurance-related features.    (7)   The requirements under subparagraph 15.75(1)“a”(1) apply to the particular annuity as a whole and the underlying subaccounts to which funds are allocated at the time of purchase or exchange of an annuity, and riders and similar product enhancements, if any.    (8)   The requirements under subparagraph 15.75(1)“a”(1) do not mean the annuity with the lowest one-time or multiple occurrence compensation structure shall necessarily be recommended.    (9)   The requirements under subparagraph 15.75(1)“a”(1) do not mean the producer has ongoing monitoring obligations under the care obligation under this paragraph, although such an obligation may be separately owed under the terms of a fiduciary, consulting, investment advising or financial planning agreement between the consumer and the producer.    (10)   In the case of an exchange or replacement of an annuity, the producer shall consider the whole transaction, which includes taking into consideration whether:     1.   The consumer will incur a surrender charge, be subject to the commencement of a new surrender period, lose existing benefits, such as death, living or other contractual benefits, or be subject to increased fees, investment advisory fees or charges for riders and similar product enhancements;    2.   The replacing product would substantially benefit the consumer in comparison to the replaced product over the life of the product; and     3.   The consumer has had another annuity exchange or replacement and, in particular, an exchange or replacement within the preceding 60 months.     (11)   Nothing in this regulation should be construed to require a producer to obtain any license other than a producer license with the appropriate line of authority to sell, solicit or negotiate insurance in this state, including but not limited to any securities license, in order to fulfill the duties and obligations contained in this regulation; provided the producer does not give advice or provide services that are otherwise subject to securities laws or engage in any other activity requiring other professional licenses.    b.    Disclosure obligation.    (1)   Prior to the recommendation or sale of an annuity, the producer shall prominently disclose to the consumer on a form substantially similar to Appendix VI:     1.   A description of the scope and terms of the relationship with the consumer and the role of the producer in the transaction;     2.   An affirmative statement on whether the producer is licensed and authorized to sell the following products:
  • Fixed annuities;
  • Fixed indexed annuities;
  • Variable annuities;
  • Life insurance;
  • Mutual funds;
  • Stocks and bonds; and
  • Certificates of deposit;
    •     3.   An affirmative statement describing the insurers the producer is authorized, contracted (or appointed), or otherwise able to sell insurance products for, using the following descriptions:
  • One insurer;
  • From two or more insurers; or
  • From two or more insurers although primarily contracted with one insurer.
    •     4.   A description of the sources and types of cash compensation and noncash compensation to be received by the producer, including whether the producer is to be compensated for the sale of a recommended annuity by commission as part of premium or other remuneration received from the insurer, intermediary or other producer or by fee as a result of a contract for advice or consulting services; and     5.   A notice of the consumer’s right to request additional information regarding cash compensation described in subparagraph 15.75(1)“b”(2);         (2)   Upon request of the consumer or the consumer’s designated representative, the producer shall disclose:     1.   A reasonable estimate of the amount of cash compensation to be received by the producer, which may be stated as a range of amounts or percentages; and     2.   Whether the cash compensation is a one-time or multiple occurrence amount, and if a multiple occurrence amount, the frequency and amount of the occurrence, which may be stated as a range of amounts or percentages; and        (3)   Prior to or at the time of the recommendation or sale of an annuity, the producer shall have a reasonable basis to believe theconsumer has been reasonably informed of various features of the recommended annuity, such as: the potential surrender period and surrender charge; potential tax penalty if the consumer sells, exchanges, surrenders or annuitizes the annuity; mortality and expense fees; investment advisory fees;any annual fees; potential charges for and features of ridersor other options of the annuity; limitations on interest returns;potential changes in nonguaranteed elements of the annuity; insurance and investment components; and market risk;.    b.    The consumer would benefit from certain features of the annuity, such as tax-deferred growth, annuitization, death benefit, or living benefit;    c.    The particular annuity as a whole, the underlying subaccounts to which funds are allocated at the time of purchase or exchange of the annuity, and riders and similar product enhancements, if any, are suitable (and in the case of an exchange or replacement, the transaction as a whole is suitable) for the particular consumer based on the consumer’s suitability information; and    d.    In the case of an exchange or replacement of an annuity, the exchange or replacement is suitable, including taking into consideration whether:    (1)   The consumer will incur a surrender charge, be subject to the commencement of a new surrender period, lose existing benefits (such as death benefit, living benefit, or other contractual benefits), or be subject to increased fees, investment advisory fees or charges for riders and similar product enhancements;    (2)   The consumer would benefit from product enhancements and improvements; and     (3)   The consumer has had another annuity exchange or replacement and, in particular, an exchange or replacement within the preceding 36 months.    c.    Conflict of interest obligation.A producer shall identify and avoid or reasonably manage and disclose material conflicts of interest, including material conflicts of interest related to an ownership interest.    d.    Documentation obligation.A producer shall at the time of recommendation or sale:    (1)   Make a written record of any recommendation and the basis for the recommendation subject to this regulation;     (2)   Obtain a consumer-signed statement on a form substantially similar to Appendix VII documenting:     1.   A customer’s refusal to provide the consumer profile information, if any; and     2.   A customer’s understanding of the ramifications of not providing his or her consumer profile information or providing insufficient consumer profile information; and     (3)   Obtain a consumer-signed statement on a form substantially similar to Appendix VIII acknowledging the annuity transaction is not recommended if a customer decides to enter into an annuity transaction that is not based on the producer’s recommendation.     e.    Application of the best interest obligation.Any requirement applicable to a producer under this subrule shall apply to every producer who has exercised material control or influence in the making of a recommendation and has received direct compensation as a result of the recommendation or sale, regardless of whether the producer has had any direct contact with the consumer. Activities such as providing or delivering marketing or educational materials, product wholesaling or other back office product support, and general supervision of a producer do not, in and of themselves, constitute material control or influence.        15.75(2)   Prior to the execution of a purchase, exchange or replacement of an annuity resulting from a recommendation, an insurance producer, or an insurer where no producer is involved, shall make reasonable efforts to obtain the consumer’s suitability information.    15.75(3)   Except as permitted under subrule 15.75(4), an insurer shall not issue an annuity recommended to a consumer unless there is a reasonable basis to believe the annuity is suitable based on the consumer’s suitability information.    15.(4) 15.75(2)   Exceptions.Transactions not based on a recommendation.    a.    Except as provided under paragraph 15.75(4)“b,” neither an insurance15.75(2)“b,” a producer, nor an insurer, shall have anyno obligation to a consumer under subrule 15.75(1) or 15.75(3)paragraph 15.75(1)“a” related to any annuity transaction if:    (1)   No recommendation is made;    (2)   A recommendation was made and was later found to have been prepared based on inaccurate material information provided by the consumer;    (3)   A consumer refuses to provide relevant suitabilityconsumer profile information and the annuity transaction is not recommended; or    (4)   A consumer decides to enter into an annuity transaction that is not based on a recommendation of the insurer or the insurance producer.     b.    An insurer’s issuance of an annuity subject to paragraph 15.75(4)“a”15.75(2)“a” shall be reasonable under all the circumstances actually known to the insurer at the time the annuity is issued.    15.75(5)   An insurance producer or, where no insurance producer is involved, the responsible insurer representative, shall at the time of sale:    a.    Make a record of any recommendation subject to subrule 15.75(1);    b.    Obtain a customer-signed statement documenting a customer’s refusal to provide suitability information, if any; and    c.    Obtain a customer-signed statement acknowledging that an annuity transaction is not recommended if a customer decides to enter into an annuity transaction that is not based on the insurance producer’s or insurer’s recommendation.    15.(6) 15.75(3)   An insurer’s duty to supervise.Supervision system.    a.    Except as permitted under subrule 15.75(2), an insurer may not issue an annuity recommended to a consumer unless there is a reasonable basis to believe the annuity would effectively address the particular consumer’s financial situation, insurance needs and financial objectives based on the consumer’s consumer profile information.    a.    b.    An insurer shall establishand maintain a supervision system that is reasonably designed to achieve the insurer’s and its insurance producers’ compliance with rules 191—15.72(507B) through 191—15.78(507B) including, but not limited to, the following:    (1)   The insurer shallestablish and maintain reasonable procedures to inform its insurance producers of the requirements of these rules and shall incorporate the requirements of these rules into relevant insurance producer training manuals;    (2)   The insurer shall establishand maintain standards for insurance producer product training and shallestablish and maintain reasonable procedures to require its insurance producers to comply with the requirements of rule 191—15.76(507B);    (3)   The insurer shall provide product-specific training and training materials which explain all material features of its annuity products to its insurance producers;    (4)   The insurer shallestablish and maintain procedures forthe review of each recommendation prior to issuance of an annuity that are designed to ensure that there is a reasonable basis to determine that a recommendation is suitablethe recommended annuity would effectively address the particular consumer’s financial situation, insurance needs and financial objectives. Such review procedures may apply a screening system for the purpose of identifying selected transactions for additional review and may be accomplished electronically or through other means including, but not limited to, physical review. Such an electronic or other system may be designed to require additional review only of those transactions identified for additional review by the selection criteria;    (5)   The insurer shallestablish and maintain reasonable procedures to detect recommendations that are not suitablein compliance with subrules 15.75(1), 15.75(2), 15.75(4) and 15.75(5). These procedures may include, but are not limited to, confirmation of consumer suitabilitythe consumer’s consumer profile information, systematic customer surveys,producer and consumer interviews, confirmation letters, producer statements or attestations, and programs of internal monitoring. Nothing in this subparagraph prevents an insurer from complying with this subparagraph by applying sampling procedures or by confirming suitabilitythe consumer profile informationor other required information under this rule after issuance or delivery of the annuity; and    (6)   The insurer shall establish and maintain reasonable procedures to assess, prior to or upon issuance or delivery of an annuity, whether a producer has provided to the consumer the information required to be provided under this rule;    (7)   The insurer shall establish and maintain reasonable procedures to identify and address suspicious consumer refusals to provide consumer profile information;    (8)   The insurer shall establish and maintain reasonable procedures to identify and eliminate any sales contests, sales quotas, bonuses, and noncash compensation that are based on the sales of specific annuities within a limited period of time. The requirements of this subparagraph are not intended to prohibit the receipt of health insurance, office rent, office support, retirement benefits or other employee benefits by employees as long as those benefits are not based upon the volume of sales of a specific annuity within a limited period of time; and    (6)   (9)   The insurer shall annually provide awritten report to senior management, including to the senior manager responsible for audit functions, which details a review, with appropriate testing, reasonably designed to determine the effectiveness of the supervision system, the exceptions found, and corrective action taken or recommended, if any.    b.    c.    Third-party supervisor.    (1)   Nothing in this subrule restricts an insurer from contracting for performance of a function (including maintenance of procedures) required under paragraph 15.75(6)“a.”this subrule. An insurer is responsible for taking appropriate corrective action and may be subject to sanctions and penalties pursuant to rule 191—15.73(507B)191—15.77(507B) regardless of whether the insurer contracts for performance of a function and regardless of the insurer’s compliance with subparagraph 15.75(6)“b”(2)15.75(3)“c”(2).    (2)   An insurer’s supervision system under paragraph 15.75(6)“a”this subrule shall include supervision of contractual performance under this subrule including, but not limited to, the following:
    1. Monitoring and, as appropriate, conducting audits to assure that the contracted function is properly performed; and
    2. Annually obtaining a certification from a senior manager who has responsibility for the contracted function that the manager has a reasonable basis to represent, and does represent, that the function is properly performed.
        c.    d.    An insurer is not required to include in its system of supervision an insurance:    (1)   A producer’s recommendations to consumers of products other than the annuities offered by the insurer.; or    (2)   Consideration of or comparison to options available to the producer or compensation relating to those options other than annuities or other products offered by the insurer.        15.(7) 15.75(4) Prohibited practices.  An insurance producer shall notNeither a producer nor an insurer shall dissuade, or attempt to dissuade, a consumer from:     a.    Truthfully responding to an insurer’s request for confirmation of suitabilitythe consumer profile information;    b.    Filing a complaint; or    c.    Cooperating with the investigation of a complaint.    15.(8) 15.75(5)   Compliance with FINRA.Safe harbor.    a.    SalesRecommendations and sales of annuities made in compliance with FINRA requirements pertaining to suitability and supervision of annuity transactionscomparable standards shall satisfy the requirements under these rules. This subrule applies to FINRA member broker-dealer sales of variable annuities and fixed annuities if the suitability and supervision are similar to those applied to variable annuity salesall recommendations and sales of annuities made by financial professionals in compliance with business rules, controls and procedures that satisfy a comparable standard even if such standard would not otherwise apply to the product or recommendation at issue. However, nothing in this subrule shall limit the insurance commissioner’s ability toinvestigate and enforce (including investigate) the provisions of this regulationthese rules.    b.    Nothing in paragraph 15.75(5)“a” shall limit the insurer’s obligation to comply with paragraph 15.75(3)“a,” although the insurer may base its analysis on information received from either the financial professional or the entity supervising the financial professional.    b.    c.    For paragraph 15.75(8)“a”15.75(5)“a” to apply, an insurer shall:    (1)   Monitor the FINRA member broker-dealerrelevant conduct of the financial professional seeking to rely on paragraph 15.75(5)“a” or the entity responsible for supervising the financial professional, such as the financial professional’s broker-dealer or an investment adviser registered under federal securities laws using information collected in the normal course of an insurer’s business; and     (2)   Provide to the FINRA member broker-dealerentity responsible for supervising the financial professional seeking to rely on paragraph 15.75(5)“a,” such as the financial professional’s broker-dealer or investment adviser registered under federal securities laws, information and reports that are reasonably appropriate to assist the FINRA member broker-dealersuch entity to maintain its supervision system.    d.    For purposes of this subrule, “financial professional” means a producer that is regulated and acting as:    (1)   A broker-dealer registered under federal securities laws or a registered representative of a broker-dealer;    (2)   An investment adviser registered under federal securities laws or an investment adviser representative associated with the federal registered investment adviser; or    (3)   A plan fiduciary under Section 3(21) of the Employee Retirement Income Security Act of 1974 (ERISA) or fiduciary under Section 4975(e)(3) of the Internal Revenue Code (IRC) or any amendments or successor statutes thereto.    e.    For purposes of this subrule, “comparable standards” means:    (1)   With respect to broker-dealers and registered representatives of broker-dealers, applicable SEC and FINRA rules pertaining to best interest obligations and supervision of annuity recommendations and sales, including, but not limited to, Regulation Best Interest and any amendments or successor regulations thereto;     (2)   With respect to investment advisers registered under federal securities laws or investment adviser representatives, the fiduciary duties and all other requirements imposed on such investment advisers or investment adviser representatives by contract or under the Investment Advisers Act of 1940, including, but not limited to, the Form ADV and interpretations; and    (3)   With respect to plan fiduciaries or fiduciaries, means the duties, obligations, prohibitions and all other requirements attendant to such status under ERISA or the IRC and any amendments or successor statutes thereto.

        ITEM 5.    Amend rule 191—15.76(507B) as follows:

    191—15.76(507B) Insurance producerProducer training.      15.76(1)   An insuranceA producer shall not solicit the sale of an annuity product unless the insurance producer has adequate knowledge of the product to recommend the annuity and the insurance producer is in compliance with the insurer’s standards for product training. An insuranceA producer may rely on insurer-provided product-specific training standards and materials to comply with this subrule.    15.76(2)   Training required.    a.    One-time course.    (1)   An insuranceA producer who engages in the sale of annuity products shall complete a one-time four-credit training course approved by the Iowa insurance divisioncommissioner and provided by an education provider approved by the insurance divisioncommissioner.    (2)   Insurance producersProducers may not engage in the sale of annuities until the annuity training course required under this rule has been completed.    b.    The minimum length of the training required under this rule shall be sufficient to qualify for at least four CE credits, but may be longer.     c.    The training required under this rule shall include information on the following topics:    (1)   The types of annuities and various classifications of annuities;    (2)   Identification of the parties to an annuity;    (3)   How fixed, variable,and indexed, and other product-specific annuity contract provisions affect consumers;    (4)   The application of income taxation of qualified and nonqualified annuities;    (5)   The primary uses of annuities;    (6)   Appropriatestandard of conduct sales practices; and     (7)   Replacement and disclosure requirements.    d.    Providers of courses intended to comply with this rule shall cover all topics listed in the prescribed outline and shall not present any marketing information or provide training on sales techniques or provide specific information about a particular insurer’s products. Additional topics may be offered in conjunction with and in addition to the required outline.    e.    A provider of an annuity training course intended to comply with this rule shall register as a CE provider in this state and comply with the rules and guidelines applicable to insurance producer continuing education courses as set forth in 191—Chapter 11.    f.    A producer who has completed an annuity training course approved by the commissioner prior to January 1, 2021, shall, before July 1, 2021, complete either:    (1)   A new four-credit training course approved by the commissioner after January 1, 2021; or     (2)   An additional one-time one-credit training course approved by the commissioner and provided by the commissioner-approved education provider on appropriate sales practices, replacement and disclosure requirements under this amended regulation.    f.    g.    Annuity training courses may be conducted and completed by classroom or self-study methods in accordance with 191—Chapter 11.    g.    h.    Providers of annuity training shall comply with the reporting requirements and shall issue certificates of completion in accordance with 191—Chapter 11.    h.    i.    Satisfaction of the training requirements of another state that are substantially similar to the provisions of this subrule shall be deemed to satisfy the training requirements of this subrule in this state.    j.    The satisfaction of the components of the training requirements of any course or courses with components substantially similar to the provisions of this subrule shall be deemed to satisfy the training requirements of this subrule in this state.    i.    k.    An insurer shall verify that an insurancea producer has completed the annuity training course required under this subrule before allowing the producer to sell an annuity product for that insurer. An insurer may satisfy its responsibility under this subrule by obtaining certificates of completion of the training course or obtaining reports provided by Iowa insurance commissioner-sponsored database systems or vendors or from a reasonably reliable commercial database vendor that has a reporting arrangement with approved continuing education providers.

        ITEM 6.    Amend rule 191—15.77(507B) as follows:

    191—15.77(507B) Compliance; mitigation; penalties; enforcement.      15.77(1)   An insurer is responsible for compliance with this regulation. If a violation occurs, either because of the action or inaction of the insurer or its insurance producer, the commissioner may order:    a.    An insurer to take reasonably appropriate corrective action for any consumer harmed bya failure to comply with these rules by the insurer’sinsurer, an entity contracted to perform the insurer’s supervisory duties, or by its insurance producer’s, violation of the rules of this divisionthe producer;    b.    A general agency, independent agency or the insurance producer to take reasonably appropriate corrective action for any consumer harmed by the insurance producer’s violation of the rules of this division; and    c.    Appropriate penalties and sanctions.    15.77(2)   Any applicable penalty under Iowa Code chapter 507B for a violation of the rules in Division V of this chapter may be reduced or eliminated if corrective action for the consumer was taken promptly after a violation was discovered or the violation was not part of a pattern or practice.    15.77(3)   The authority to enforce compliance with these rules is vested exclusively with the commissioner.

        ITEM 7.    Amend rule 191—15.78(507B) as follows:

    191—15.78(507B) Record keeping.      15.78(1)   Insurers, general agents, independent agencies, and insurance producers shall maintain or be able to make available to the commissioner records of the information collected from the consumer, disclosures made to the consumer (including summaries of oral disclosures) and other information used in making the recommendations that were the basis for insurance transactions for ten years after the insurance transaction is completed by the insurer. An insurer is permitted, but shall not be required, to maintain documentation on behalf of an insurancea producer.    15.78(2)   Records required to be maintained by this rule may be maintained in paper, photographic, microprocess, magnetic, mechanical or electronic media or by any process that accurately reproduces the actual document.

        ITEM 8.    Adopt the following new appendices in 191—Chapter 15, Appendices VI, VII, and VIII, as follows:    APPENDIX VIINSURANCE AGENT (PRODUCER) DISCLOSURE FOR ANNUITIESDo Not Sign Unless You Have Read and Understand the Information in this FormDate:________________________________INSURANCE AGENT (PRODUCER) INFORMATION (“Me”, “I”, “My”)First Name: ____________________________ Last Name: ___________________________Business/Agency Name: ___________________________ Website: ________________________Business Mailing Address: __________________________________________________________Business Telephone Number: __________________________________________________________Email Address: __________________________________________________________National Producer Number in [state]: ____________________________________________CUSTOMER INFORMATION (“You”, “Your”)First Name: ____________________________ Last Name: ___________________________What Types of Products Can I Sell You?I am licensed to sell annuities to you in accordance with state law. If I recommend that You buy an annuity, it means I believe that it effectively meets Your financial situation, insurance needs, and financial objectives. Other financial products, such as life insurance or stocks, bonds and mutual funds, also may meet Your needs. I offer the following products:☐ Fixed or Fixed Indexed Annuities☐ Variable Annuities☐ Life Insurance I need a separate license to provide advice about or to sell non-insurance financial products. I have checked below any non-insurance financial products that I am licensed and authorized to provide advice about or to sell.☐ Mutual Funds☐ Stocks/Bonds☐ Certificates of Deposits Whose Annuities Can I Sell to You?I am authorized to sell:☐ Annuities from Only One (1) Insurer☐ Annuities from Two or More Insurers☐ Annuities from Two or More Insurers although I primarily sell annuities from:How I’m Paid for My Work:It’s important for You to understand how I’m paid for my work. Depending on the particular annuity You purchase, I may be paid a commission or a fee. Commissions are generally paid to Me by the insurance company while fees are generally paid to Me by the consumer. If You have questions about how I’m paid, please ask Me.Depending on the particular annuity You buy, I will or may be paid cash compensation as follows:☐ Commission, which is usually paid by the insurance company or other sources. If other sources, describe: _____________________________________.☐ Fees (such as a fixed amount, an hourly rate, or a percentage of your payment), which are usually paid directly by the customer.☐ Other (Describe): _____________________________________________________________.    If you have questions about the above compensation I will be paid for this transaction, please ask me.I may also receive other indirect compensation resulting from this transaction (sometimes called “noncash” compensation), such as health or retirement benefits, office rent and support, or other incentives from the insurance company or other sources.Drafting Note: This disclosure may be adapted to fit the particular business model of the producer. As an example, if the producer only receives commission or only receives a fee from the consumer, the disclosure may be refined to fit that particular situation. This form is intended to provide an example of how to communicate producer compensation, but compliance with the regulation may also be achieved with more precise disclosure, including a written consulting, advising or financial planning agreement.Drafting Note: The acknowledgment and signature should be in immediate proximity to the disclosure language.By signing below, you acknowledge that you have read and understand the information provided to you in this document. ______________________________________________________Customer Signature______________________________________________________Date______________________________________________________Agent (Producer) Signature______________________________________________________Date    APPENDIX VIICONSUMER REFUSAL TO PROVIDE INFORMATIONDo Not Sign Unless You Have Read and Understand the Information in this FormWhy are you being given this form?You’re buying a financial product – an annuity. To recommend a product that effectively meets your needs, objectives and situation, the agent, broker, or company needs information about you, your financial situation, insurance needs and financial objectives.If you sign this form, it means you have not given the agent, broker, or company some or all the information needed to decide if the annuity effectively meets your needs, objectives and situation. You may lose protections under the Insurance Code of [this state] if you sign this form or provide inaccurate information.Statement of Purchaser:☐ I REFUSE to provide this information at this time.☐ I have chosen to provide LIMITED information at this time.______________________________________________________Customer Signature______________________________________________________Date______________________________________________________    APPENDIX VIIIConsumer Decision to Purchase an Annuity NOT Based on a RecommendationDo Not Sign This Form Unless You Have Read and Understand It.Why are you being given this form?You are buying a financial product – an annuity.To recommend a product that effectively meets your needs, objectives and situation, the agent, broker, or company has the responsibility to learn about you, your financial situation, insurance needs and financial objectives.If you sign this form, it means you know that you’re buying an annuity that was not recommended.Statement of Purchaser:I understand that I am buying an annuity, but the agent, broker or company did not recommend that I buy it. If I buy it without a recommendation, I understand I may lose protections under the Insurance Code of [this state].______________________________________________________Customer Signature______________________________________________________Date____________________________________________________________________________________________________________Agent/Producer Signature______________________________________________________Date______________________________________________________    [Filed 5/11/20, effective 7/8/20][Published 6/3/20]Editor’s Note: For replacement pages for IAC, see IAC Supplement 6/3/20.    ARC 5046CTransportation Department[761]Adopted and Filed

    Rule making related to an update of contact information

        The Department of Transportation hereby amends Chapter 410, “Special Mobile Equipment,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 307.12.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 321.1.Purpose and Summary    The amendment makes technical changes to update the bureau’s name and contact information.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on February 26, 2020, as ARC 4939C. 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 12, 2020.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 person’s circumstances meet the statutory criteria for a waiver may petition the Department for a waiver under 761—Chapter 11.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on July 8, 2020.    The following rule-making action is adopted:

        ITEM 1.    Amend subrule 410.1(3) as follows:    410.1(3)   Questions regarding special mobile equipment may be directed by mail to the Office of Vehicle and Motor Carrier ServicesBureau, Iowa Department of Transportation, P.O. Box 10382, Des Moines, Iowa 50306-0382; in person at 6310 SE Convenience Blvd., Ankeny, Iowa; or by telephone at (515)237-3264(515)237-3268; or by email at omcs@iowadot.us.    [Filed 5/13/20, effective 7/8/20][Published 6/3/20]Editor’s Note: For replacement pages for IAC, see IAC Supplement 6/3/20.    ARC 5047CTransportation Department[761]Adopted and Filed

    Rule making related to motor carriers

        The Department of Transportation hereby amends Chapter 524, “For-Hire Intrastate Motor Carrier Authority,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 307.12, 325A.7A and 325A.10.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 325A.Purpose and Summary    This rule making aligns with existing legal authority and Department practice, eliminates outdated or irrelevant requirements or options, and accommodates modern electronic procedures and terminology.    The amendments make technical changes to the rules to clearly identify that the credential being issued is a motor carrier permit or certificate. Also, the amendments simplify the application and supporting documentation required for a motor carrier permit or certificate and still allow for those documents to be sent to the Department electronically.    This rule making amends the rules related to changes after a motor carrier permit has been issued to provide that a permit number could be included in the basis for requesting a duplicate permit and to align with current Department practice of requiring a motor carrier to submit an updated application when the motor carrier’s name or address changes.    The amendments remove the requirement that a bill of lading or freight receipt be issued in triplicate because that practice is no longer necessary.    The amendments comply with current Department practice and provide that a peace officer may inspect the bill of lading or freight receipt, which is consistent with a peace officer’s authority to inspect the motor carrier permit or certificate under Chapter 524.    Finally, this rule making amends the rules encompassing motor carrier tariffs to remove the outdated requirement of issuing adoption notices and participation notices, which are no longer used. The amendments also simplify the process of indicating tariff changes by allowing for a summary of the changes to be provided, rather than requiring use of a specific symbol to denote the changes. Also, a motor carrier is given the flexibility of utilizing forms other than the forms prescribed by the Department for an application for special permission to establish rules of the tariff and for the motor carrier to grant powers of attorney to an agent.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on March 25, 2020, as ARC 4994C. No public comments were received. However, the Department is making additional changes within Item 9, specifically to subrule 524.13(2), to further explain the requirements of motor carriers to retain a copy of the bill of lading or freight receipt by electronic or paper means.Adoption of Rule Making    This rule making was adopted by the Department on May 12, 2020.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 person’s circumstances meet the statutory criteria for a waiver may petition the Department for a waiver under 761—Chapter 11.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on July 8, 2020.    The following rule-making actions are adopted:

        ITEM 1.    Amend rule 761—524.2(325A) as follows:

    761—524.2(325A) General information.      524.2(1) Information and location.  Applications, forms and information on motor carrier permits and motor carrier certificates are available by mail from the Office of Vehicle and Motor Carrier ServicesBureau, Iowa Department of Transportation, P.O. Box 10382, Des Moines, Iowa 50306-0382; in person at 6310 SE Convenience Blvd., Ankeny, Iowa; by telephone at (515)237-3268; by facsimile at (515)237-3225; or by email at omcs@iowadot.us.    524.2(2) Waiver of rules.  In accordance with 761—Chapter 11, the director of transportation may, in response to a petition, waive provisions of this chapter. A waiver shall not be granted unless the director finds that special or emergency circumstances exist.“Special or emergency circumstances” means one or more of the following:
    1. Circumstances where the movement is necessary to cooperate with cities, counties, other state agencies or other states in response to a national or other disaster.
    2. Circumstances where the movement is necessary to cooperate with national defense officials.
    3. Circumstances where the movement is necessary to cooperate with public or private utilities in order to maintain their public services.
    4. Circumstances where the movement is essential to ensure safety and protection of any person or property due to events such as, but not limited to, pollution of natural resources, a potential fire or an explosion.
    5. Circumstances where weather or transportation problems create an undue hardship for citizens of the state of Iowa.
    6. Circumstances where movement involves emergency-type vehicles.
    7. Uncommon or extraordinary circumstances where the movement is essential to the existence of an Iowa business and the move may be accomplished without causing undue hazards to the safety of the traveling public or undue damage to private or public property.
        524.2(3) Complaints.  Complaints against motor carriers pertaining to the provisions of this chapter shall be submitted in writing to the office of vehicle and motor carrier servicesbureau.

        ITEM 2.    Amend rule 761—524.3(325A) as follows:

    761—524.3(325A) Applications and supporting documents.      524.3(1) Application.  An application for a motor carrier permit or motor carrier certificate shall be made to the office of vehicle and motor carrier services on abureau in the formand manner prescribed for that purpose and furnished upon requestby the department. The department may require application forms and supporting documentation to be submitted electronically.    524.3(2) Application fee.  An application for a motor carrier permit or motor carrier certificate shall be accompanied by the statutory application fee. This fee shall be paid by credit card or by cash, check or money order made payable to the Iowa Department of Transportation.    524.3(3) Supporting documents.  An application for a motor carrier permit or motor carrier certificate must be accompanied by the followingsupporting documentation in the form and manner prescribed by the department:    a.    Proof of insurance.    b.    Safety self-certification. (See rule 761—524.9(325A).)    c.     A U.S. DOT number if required by the Federal Motor Carrier Safety Administration.    d.    Financial statement, only for motor carriers of bulk liquid commodities (nondairy) and regular-route passengers. (See rule 761—524.10(325A).)    e.    Tariff, only for motor carriers of household goods.

        ITEM 3.    Amend rule 761—524.4(325A) as follows:

    761—524.4(325A) Issuance of credentialsmotor carrier permit or motor carrier certificate.  When all requirements are met, the department shall issue the motor carrier permit or certificate. The motor carrier shall make a copy of the permit or certificate and carry it in each motor vehicle at all times. The copy may be in either a physical or an electronic format as prescribed by the department. The permit or certificate shall be available for display to any peace officer upon request.

        ITEM 4.    Amend rule 761—524.5(325A) as follows:

    761—524.5(325A) Duplicate motor carrier permit or motor carrier certificate.  Written requests for a duplicate motor carrier permit or motor carrier certificate shall be sent to the office of vehicle and motor carrier servicesbureau. Requests shall include the carrier name,and the carrier permit number, certificate number, or U.S. DOT number. Any motor carrier in good standing shall be issued a duplicate document upon payment of the required fee.

        ITEM 5.    Amend rule 761—524.6(325A) as follows:

    761—524.6(325A) Amendment to a motor carrier permit ormotor carrier certificate.      524.6(1) Update to a motor carrier permit.  To change the commodities being transported under a permit, an updated application must be submitted to the office of vehicle and motor carrier servicesbureau. The updated application shall include the permit number and the required fee for a duplicate permit. Transporting of commodities not listed on the permit shall not commence until a new permit or temporary permit has been issued and is carried in the vehicle.    524.6(2) Change of name or address for a motor carrier permit or certificate.  Notification of a name or address changeTo change the name or address, an updated application shall be sent to the office of vehicle and motor carrier servicesbureau within 30 days after the change. NotificationThe updated application shall include the permit or certificate number, old name or address, new name or address, and the required fee.

        ITEM 6.    Amend subrule 524.7(2) as follows:    524.7(2) Self-insurance.  In lieu of maintaining the above insurance, intrastate carriers that also operate interstate and have been approved by a federal agency to self-insure may apply to the department to self-insure by submitting a written request to the office of vehicle and motor carrier servicesbureau. The written request shall include a copy of the federal agency’s approval. The department shall allow self-insurance as long as a federal agency has approved the carrier to self-insure and the motor carrier provides the department with copies of any information required by that federal agency. The department must be notified immediately by the motor carrier if there is any change in the status of the self-insurance for interstate operation.

        ITEM 7.    Amend rule 761—524.8(325A) as follows:

    761—524.8(325A) Self-insurance for motor carriers of passengers.      524.8(1) Applications for self-insurance.  A motor carrier of passengers with more than 25 motor vehicles may request self-insurance by submitting a written request to the office of vehicle and motor carrier servicesbureau. The written request shall include a copy of the most recent audited financial statement and a vehicle list.    524.8(2) Review by the department.  The department may request additional information. The department shall deny the request to self-insure or suspend existing approval if the motor carrier fails to meet the self-insurance standard. Approval of self-insurance is continuous. However, the motor carrier shall annually file audited financial statements with the office of vehicle and motor carrier servicesbureau within 60 days after the end of the motor carrier’s fiscal year.    524.8(3) Cancellation of self-insurance approval.  The department may cancel approval of self-insurance on reasonable grounds. Reasonable grounds include, but are not limited to, the following: failure to pay a final judgment within 30 days or failure to file an annual, audited financial statement. The department shall give five days’ notice to the motor carrier prior to any hearing to cancel approval of self-insurance.

        ITEM 8.    Amend rule 761—524.11(325A) as follows:

    761—524.11(325A) Safety education seminar.      524.11(1) Requirement.  Motor carriers of bulk liquid commodities (nondairy) and passengers shall attend an approved safety education seminar within six months of issuance of the permit or certificate except as provided in subrule 524.11(4). The individuals in attendance shall be the persons responsible for the safety records and driver training. Failure to attend an approved safety education seminar within the time provided shall result in suspension of the motor carrier permit or certificate.    524.11(2) Availability.  The department shall provide an approved safety education seminar periodically. Information on the seminar schedule is available by mail from the Office of Vehicle and Motor Carrier ServicesBureau, Iowa Department of Transportation, P.O. Box 10382, Des Moines, Iowa 50306-0382; in person at 6310 SE Convenience Blvd., Ankeny, Iowa; or by telephone at (515)237-3268; or by email at omcs@iowadot.us.    524.11(3) Third-party safety education seminar approval.  The office of motorMotor vehicle enforcement shall approve the course curriculum before approving individuals outside the department to conduct safety education seminars. The course curriculum shall be submitted for approval to the office of motor vehicle enforcement. At a minimum, the safety course curriculum shall include the following information:    a.    Commercial driver’s license regulations.    b.    A general overview of the U.S. DOT’s motor carrier safety regulations and hazardous materials regulations which are adopted annually by the department.    c.    Iowa Code sections 321.449 and 321.450 and all associated administrative rules.    d.    Iowa Code section 321.463 and all associated administrative rules.    e.    Out-of-service criteria.    f.    A general overview of the U.S. DOT’s Emergency Response Guide Book.    524.11(4) Exemption.  Passenger carriers with vehicles not meeting the definition of a commercial vehicle as defined in Iowa Code section 321.1 are exempt from attending the safety education seminar and paying the seminar fee. A motor carrier certificate issued for such a carrier contains the statement: “limited to noncommercial vehicles only.” If a motor carrier wishes to start operating vehicles that meet the definition of a commercial motor vehicle, the motor carrier must update its authority with the office of vehicle and motor carrier servicesbureau. A motor carrier must pay the seminar fee and attend the seminar within six months of updating the certificate. A new motor carrier certificate removing the limitation would then be issued.

        ITEM 9.    Amend rule 761—524.13(325A) as follows:

    761—524.13(325A) Bills of lading or freight receipts.      524.13(1) Requirements.  Every motor carrier operating under a motor carrier permit, except for those motor carriers transporting unprocessed agricultural and horticultural products and livestock, shall issue a bill of lading or receipt in triplicate on the date freight is received for shipment. The bill of lading or receipt shall show the following:    a.    Name of motor carrier.    b.    Date and place received.    c.    Name of consignor.    d.    Name of consignee.    e.    Destination.    f.    Description of shipment.    g.    Signature of motor carrier or agent issuing the bill of lading or receipt.    h.    Freight described in apparent good order unless an exception is noted.    524.13(2) Retention.  There shall be one copy of the bill of lading or receipt for the consignor, one for the consignee and one to be kept by the motor carrier.The copy may be either paper or electronic except that a bill of lading or receipt of freight consisting of hazardous materials must be a paper copy as required in accordance with 49 CFR Part 172. The motor carrier’s copycarrier shall be carriedcarry a copy of the bill of lading or receipt with the cargo and shall show the total of all charges made for the movement of freight. The motor carrier shall keep the bill of lading or receipt for a period of not less than one year. At any reasonable time, the bill of lading or receipt is subject to inspection by the department’s representativesand any peace officer.

        ITEM 10.    Amend rule 761—524.15(325A) as follows:

    761—524.15(325A) Tariffs.      524.15(1) Requirements.  All motor carriers of household goods shall maintain on file with the office of vehicle and motor carrier servicesbureau a tariff stating the rates and charges that apply for the services performed under the permit.    524.15(2) Printing.  All tariffs and amendments or supplements must be in book, pamphlet or loose-leaf form. They must be plainly printed or reproduced. No alteration in writing or erasure shall be made in any tariff or supplement.    524.15(3) Filing date.  All changes to tariffs and supplements must be filed with the office of vehicle and motor carrier servicesbureau at least seven days prior to the effective date. Tariffs,or supplements or adoption notices issued in connection with applications for motor carriers of household goods may become effective on the date the permits are issued.    524.15(4) Copy to department.  To file a tariff with the office of vehicle and motor carrier servicesbureau, motor carriers of household goods or their agents shall submit a transmittal letter listing all the enclosed tariffs and include one copy of each tariff, supplement or revised page.    524.15(5) Title page.  The title page of every tariff and supplement shall include the following:    a.    Each tariff shall be numbered in the upper right-hand corner, beginning with number 1. The number shall be shown as follows: Ia. DOT No. ....When a tariff is issued canceling a tariff previously filed, the Ia. DOT number that has been canceled must be shown in the right-hand corner under the Ia. DOT number of the new tariff.    b.    Supplements or changes to a tariff shall be numbered beginning with number 1, and this information shall be shown in the upper right-hand corner along with the number of any previous supplements canceled or changed by the supplement.    c.    The name of each motor carrier of household goods must be the same as it appears on the permit. If the motor carrier of household goods is not a corporation and uses a trade name, the name of the individual or partners must precede the trade name.    d.    Each tariff shall include a brief description of the territory or points from which and to which the tariff applies.    e.    Each tariff shall contain the issue and effective dates.    f.    Each tariff shall include the name, title and street address of the motor carrier of household goods or the agent by whom the tariff is issued.    524.15(6) Contents of tariff.  Each tariff shall include the following:    a.    A table of contents that is arranged alphabetically.    b.    A complete index of all commodities including the page number. However, no index or table of contents is needed in tariffs of less than five pages or if the rates are alphabetically arranged by commodities.    c.    An explanation of all abbreviations, symbols and reference marks used.    d.    All rates in the tariff explicitly stated in cents or in dollars and cents per one hundred pounds, per mile, per hour, per ton or two thousand pounds, per truck load (of stated amount) or other definable measure. Where rates are stated in amounts per package or bundle, definite specifications of the packages or bundles must be shown and ambiguous terms, rates, descriptions or plans for determining charges shall not be accepted.    524.15(7) Duplication of rates.  Motor carriers of household goods or their agents shall not publish duplicate or conflicting rates.    524.15(8) Tariff changes.  All rates and charges which have been filed with the office of vehicle and motor carrier servicesbureau must be allowed to become effective and remain in effect for a period of at least seven days before being changed, canceled or withdrawn. All tariffs, supplements and revised pages shall indicate changes from the preceding issueprevious tariff. Changes may be indicated by providing a summary or by use of the following symbols:(R) to denote reductions(A) to denote increases(C) to denote changes, the result of which is neither an increase nor a reduction.The proper symbol must be shown directly in connection with each change.    524.15(9) Posting regulations.  Each motor carrier of household goods must post and file at its principal place of business all of its tariffs and supplements. All tariffs must be kept available for public inspection.    524.15(10) Application for special permission.  Motor carriers of household goods and agents when making application for permission to establish rates, charges, or rules of the tariff on less than the statutory seven days’ notice shall use the form prescribed by the office of vehicle and motor carrier servicesdepartment or other form containing all of the required information.    524.15(11)   Powers of attorney and participation notices.    a.    Whenever a motor carrier of household goods desires to give authority to an agent or to another motor carrier of household goods to issue and file tariffs and supplements in its stead, a power of attorney in the form prescribed by the department must be usedshall be provided to the department.    b.    The original power of attorney shall be filed with the office of vehicle and motor carrier servicesbureau and a copy sent to the agent or motor carrier of household goods on whose behalf the document was issued.    c.    Whenever a motor carrier of household goods desires to cancel the authority granted an agent or another motor carrier of household goods by power of attorney, this may be done by a letter addressed to the department revoking the authority on 60 days’ notice. For good cause, the department may authorize less than 60 days’ notice. Copies of the notice must also be mailed to all interested parties by the motor carrier.    524.15(12) Nonconforming tariffs.  The office of vehicle and motor carrier servicesbureau shall review tariffs that do not conform with subrules 524.15(1) to 524.15(11) to determine if the tariffs contain the necessary information and are acceptable. Tariffs that are unacceptable shall be returned with an explanation.

        ITEM 11.    Amend rule 761—524.18(325A) as follows:

    761—524.18(325A) Hearings.  A person whose application for a motor carrier permit or certificate has been denied for a reason other than noncompliance with insurance requirements or whose motor carrier permit or certificate has been suspended or revoked for a reason other than noncompliance with insurance requirements may contest the decision in accordance with Iowa Code chapter 17A and 761—Chapter 13. The request for a hearing shall be submitted in writing to the director of the office of vehicle and motor carrier servicesbureau. The request shall include, as applicable, the motor carrier’s name, permit or certificate number, complete address and telephone number. The request must be submitted within 20 days after the date of the notice of suspension, revocation or denial.        [Filed 5/13/20, effective 7/8/20][Published 6/3/20]Editor’s Note: For replacement pages for IAC, see IAC Supplement 6/3/20.    ARC 5048CTransportation Department[761]Adopted and Filed

    Rule making related to driver’s license examinations

        The Department of Transportation hereby amends Chapter 604, “License Examination,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 307.12, 321.193 and 321.210.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 321.186, 321.193, 321.196 and 321.210.Purpose and Summary    This rule making relates to driver’s license examinations and aligns with existing legal authority and Department practice, updates contact information, eliminates outdated or irrelevant requirements or options, and accommodates modern procedures.  The most significant changes to Chapter 604 are explained in the following paragraphs.    The amendments change several requirements related to vision screening conditions and associated restrictions. The amendments clarify at what visual acuity score a person will be referred to a vision specialist for further screening, strike outdated language requiring the Department to affix a sticker to an applicant’s driver’s license, and provide that a temporary driving permit shall not be issued for more than 60 days from the end of the license validity, which aligns with the current grace period for an expired driver’s license in Iowa Code section 321.196.    The rule making rescinds rule 761—604.22(321), which concerns knowledge test results, because it is outdated, but part of the content of the rule is updated and added as new subrule 604.20(4) to align with current Department practice that at least one business day must have elapsed before a person can retake a failed knowledge test.    The amendments update subrules 604.21(2) and 604.31(2) related to knowledge and driving test waivers to include current Department practice related to knowledge and drive testing when an applicant is seeking to renew a driver’s license within one year after its expiration date or within one year without a valid driver’s license. Iowa Code section 321.196(2) provides that a driver’s license is renewable without a driving test or written examination within a period of one year after the license’s expiration date. Iowa Code section 321.196(2) provides that once a person’s driver’s license has been expired or is invalid for more than one year, testing is required to regain the license. Some of the reasons a person may hold an expired driver’s license or have an invalid license for one year could be due to relocation or due to a driver’s license sanction. The amendments to subrules 604.21(2) and 604.31(2) clarify that knowledge and drive testing would be required to regain the license if it has been expired or invalid for more than one year. The amendment to subrule 604.31(2) also clarifies that a certificate of completion for motorcycle rider education or motorized bicycle education may be used to waive the driving test for more than just the first time the license was issued, which allows an applicant who chooses to attend a subsequent motorcycle rider education course or motorized bicycle education course to use that new certificate of completion to waive a subsequent skills test. This change accommodates motorcycle license applicants who would prefer to take another motorcycle rider education course rather than taking a motorcycle skills test with the Department.    The amendment to paragraph 604.30(1)“a” relating to the vehicle requirements for a driving test aligns with current Department practice requiring a person to provide proof of financial responsibility for the vehicle the person is seeking to use during the driving test.    This rule making also relates to a special reexamination of a driver’s licensee. A reexamination may occur when a licensee has been involved in an accident, including a fatal motor vehicle accident, or when an investigating officer’s report of the accident(s) lists certain contributing factors. Rule 761—604.50(321) is amended as follows:    To add cognitive screening to the list of requirements that may accompany a special reexamination. Iowa Code section 321.186(3) authorizes the Department to examine an applicant for a driver’s license, including a mental examination necessary to determine an applicant’s fitness to operate a motor vehicle safely. The Department currently utilizes the nationally recognized Driver Orientation Screen for Cognitive Impairment (DOSCI) and the Safe Driving Basics (SDB) programs for cognitive screening.    To align the rule with the current practice when an investigating officer lists the underlying condition of the licensee as “fatigue or asleep” in an accident report, which may result in a special reexamination after a single accident.    To recognize that vision may be a contributing factor to an accident, thus requiring a special reexamination regardless of whether the accident occurred during the day or at night.    To align with Iowa Code section 321.186, which authorizes the Department to require a special reexamination if the Department receives evidence that a licensee may be physically or mentally incapable of operating a motor vehicle safely.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on March 25, 2020, as ARC 4995C. 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 12, 2020.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 person’s circumstances meet the statutory criteria for a waiver may petition the Department for a waiver under 761—Chapter 11.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on July 8, 2020.    The following rule-making actions are adopted:

        ITEM 1.    Amend rule 761—604.3(17A) as follows:

    761—604.3(17A) Information and forms.      604.3(1)   Applications, forms, and information about driver’s license examinations are available at any driver’s license examination stationservice center. Assistance is also available from the office of driverand identification services at the address in 761—600.2(17A)bureau by mail at Driver and Identification Services Bureau, Iowa Department of Transportation, P.O. Box 9204, Des Moines, Iowa 50306-9204; in person at 6310 SE Convenience Blvd., Ankeny, Iowa; by telephone at (515)244-8725; by facsimile at (515)239-1837; or on the department’s website at www.iowadot.gov.    604.3(2)   The “Iowa Driver Manual” and the “Iowa Motorcycle Operator Manual” are also available from the departmentand on the department’s website at www.iowadot.gov.       This rule is intended to implement Iowa Code section 17A.3.

        ITEM 2.    Amend subrule 604.10(2) as follows:    604.10(2) Method.  At driver’s license examination stationsservice centers, a vision screening instrument shall be used to screen the applicant’s vision. An applicant who has corrective lenses may be screened with or without the corrective lenses.

        ITEM 3.    Amend rule 761—604.10(321), implementation sentence, as follows:       This rule is intended to implement Iowa Code sections 321.186, 321.186A and 321.196 as amended by 2013 Iowa Acts, House File 355, section 1.

        ITEM 4.    Amend rule 761—604.12(321) as follows:

    761—604.12(321) Vision referrals.      604.12(1) Referral.      a.    Ifduring any vision screening, an applicant on first screening cannot attain 20/40with at least one eye but can attain 20/70 with at least one eye, the department shall not issue a license to the applicant. Instead, the department shall advise the applicant to consult a licensed vision specialist.    b.    A vision report, pursuant to subrule 604.10(3), shall be required before the department will reconsider licensing.    604.12(2) License.      a.    The department shall affix a sticker to the applicant’s license stating: “Renewal or license issuance denied due to vision.”b.    If the applicant’s license is valid for less than 30 days, the department may issue a temporary driving permit with restrictions appropriate to the applicant’s visual acuity level and field of vision. TheIf the applicant’s license is valid for less than 30 days, the temporary driving permit isshall not be valid for not more than 3060 days from the end of the current license validity.    604.12(3) Report.  If the vision report recommends a restriction, the department shall issue a restricted license even though it would not be required by departmental standards.    604.12(4) Applicant refusal.  If an applicant refuses to consult a licensed vision specialist, the department shall issue or deny the license based on the results achieved on the vision screening.       This rule is intended to implement Iowa Code sections 321.181, 321.186, 321.186A, 321.193 and 321.196.

        ITEM 5.    Amend rule 761—604.13(321) as follows:

    761—604.13(321) Vision screening results.      604.13(1) Two-year license.  An applicant who cannot attain a visual acuity of 20/40 with both eyes or with the better eye shall be issued a two-year license. This restriction may be waived by the department when a vision report pursuant to subrule 604.10(3) certifies that the vision has stabilized and is not expected to deteriorate.    604.13(2) License denied.      a.    An applicant who cannot attain a visual acuity of 20/70 with both eyes or with the better eye shall not be licensed, subject to discretionary issuance under subrule 604.13(4).    b.    If the applicant’s binocular field of vision is less than 110 degrees, or the monocular field of vision is less than 100 degrees, the applicant shall not be licensed, subject to discretionary issuance under subrule 604.13(4).    604.13(3) Reapplication.  An applicant who cannot meet the vision standards in subrule 604.13(2) may reapply when the vision improves andthe applicant meets the vision standards. If a suspension or denial notice was served, reapplication must be made to the office of driverand identification servicesbureau at the address in 761—600.2(17A)subrule 604.3(1), and notor at a driver’s license examination stationservice center.    604.13(4) Discretionary issuance.      a.    An applicant whose license is restricted under rule 761—604.11(321) or who cannot meet the vision standards in subrule 604.13(2) may submit a written request for review by an informal settlement officer.    b.    Based upon consideration of the applicant’s vision screening results or vision report, driving test and driving record, the written recommendation of the applicant’s licensed vision specialist, and traffic conditions in the vicinity of the applicant’s residence, the officer may recommend issuing a license with restrictions suitable to the applicant’s capabilities. However:    (1)   An applicant who cannot attain a visual acuity of 20/100 with both eyes or with the better eye may be considered for licensing only after recommendation by the medical advisory board.    (2)   An applicant who cannot attain a visual acuity of 20/199 with both eyes or with the better eye shall not be licensed.    (3)   If an applicant’s binocular field of vision or monocular field of vision is less than 75 degrees, the applicant may be considered for licensing only after recommendation by the medical advisory board.    (4)   An applicant who cannot attain a binocular or monocular field of vision of 21 degrees shall not be licensed.    c.    The officer’s recommendation denying discretionary issuance or regarding the extent and nature of restrictions is subject to reversal or modification upon review or appeal only if it is clearly characterized by an abuse of discretion.       This rule is intended to implement Iowa Code sections 321.186, 321.186A, 321.193 and 321.196.

        ITEM 6.    Adopt the following new subrule 604.20(4):    604.20(4) Retesting.  An applicant who fails a knowledge test may repeat the test at the discretion of the examiner, but at least one business day shall elapse between tests.

        ITEM 7.    Amend subrule 604.21(2) as follows:    604.21(2) Knowledge test waivers.  The department may waive a knowledge test listed in subrule 604.21(1) if the applicant meets one of the following qualifications:    a.    The applicant has passed the same type of test for another Iowa driver’s license or an equivalent out-of-state license that is still validor has expired within the past year.    b.    The applicant has a valid, equivalent driver’s license issued by a foreign jurisdiction with which Iowa has a nonbinding reciprocity agreement.    c.    The applicant has a military extension and is renewing the applicant’s Iowa driver’s license within six months following separation from active duty.    d.    The applicant is renewing an Iowa driver’s license or endorsement within a period of one year after the expiration date of the license or endorsement.    e.    The applicant is reinstating from a denial, cancellation, suspension, revocation, disqualification or bar of an Iowa driver’s license or endorsement within a period of one year after the expiration date of the denial, cancellation, suspension, revocation, disqualification or bar.

        ITEM 8.    Rescind and reserve rule 761—604.22(321).

        ITEM 9.    Amend paragraph 604.30(1)"a" as follows:    a.    For the driving test, the applicant shall provide a representative vehicle as defined in 761—604.2(321)and proof of financial responsibility for the representative vehicle.

        ITEM 10.    Amend subrule 604.31(2) as follows:    604.31(2) Driving test waivers.  The department may waive a required driving test listed in subrule 604.31(1) if the applicant meets one of the following qualifications:    a.    The applicant is applying for the applicant’s first Iowa driver’s license that permits unaccompanied driving following successful completion ofhas successfully completed the appropriate Iowa-approved course or courses. The appropriate Iowa-approved courses are the following: driver education, other than driver education by a teaching parent under rule 761—634.11(321), for aan applicant’s first Class C driver’s licensethat permits unaccompanied driving other than motorized bicycle; driver education and motorcycle rider education for a Class M driver’s license or motorcycle endorsementmotorcycle rider education for a Class M driver’s license or motorcycle endorsement; and motorized bicycle education for a motorized bicycle license. However, if an applicant is under the age of 18, a driving test is required if so requested by the applicant’s parent, guardian, or instructor.    b.    The applicant is renewing a Class C, Class D or Class M Iowa driver’s license or endorsement within 14 monthsa period of one year after the expiration dateof the license or endorsement.    c.    The applicant is reinstating from a denial, cancellation, suspension, revocation, disqualification or bar of an Iowa driver’s license or endorsement within a period of one year after the expiration date of the denial, cancellation, suspension, revocation, disqualification or bar.     c.    d.    The applicant has passed the same type of driving test for another Iowa driver’s license or endorsement that is still valid or has expired within the past 14 monthsyear.    d.    e.    The applicant has a military extension and is renewing the applicant’s Iowa driver’s license within six months following separation from active duty.    e.    f.    The applicant is applying for a Class C Iowa driver’s license that permits unaccompanied driving and has an equivalent out-of-state license that is valid or has expired within the past year.    f.    g.    The applicant is applying for a Class D Iowa driver’s license and has an equivalent out-of-state license that is valid or has expired within the past year.    g.    h.    The applicant is applying for a Class M driver’s license or a motorcycle endorsement and has an equivalent out-of-state Class M driver’s license or motorcycle endorsement that is valid or has expired within the past year.    h.    i.    The applicant has a valid, equivalent driver’s license issued by a foreign jurisdiction with which Iowa has a nonbinding reciprocity agreement.

        ITEM 11.    Amend paragraph 604.40(2)"b" as follows:    b.    After the three unsuccessful attempts, no further testing shall be allowed until six months have elapsed from the date of the last test failure, and then only if the applicant demonstrates a significant change or improvement in those physical or mental factors that resulted in the original decision. A request for further testing must be submitted in writing to the office of driverand identification servicesbureau at the address in rule 761—600.2(17A)subrule 604.3(1).

        ITEM 12.    Amend rule 761—604.50(321) as follows:

    761—604.50(321) Special reexaminations.  The department may require a special reexamination consisting of a vision screening,cognitive screening, knowledge test and driving test of any licensee.    604.50(1)   The department may require a special reexamination when a licensee has been involved in a fatal motor vehicle accident and the investigating officer’s report of the accident indicates the licensee contributed to the accident.    604.50(2)   The department may require a special reexamination when a licensee has been involved in two accidents within a three-year period and the investigating officer’s report of each accident lists one of the following “Driver/Vehicle Related Contributing Circumstances” for the licensee:    a.    Ran traffic signal.    b.    Ran stop sign.    c.    Passing, interfered with other vehicle.    d.    Left of center, not passing.    e.    Failure to yield right-of-way at uncontrolled intersection.    f.    Failure to yield right-of-way from stop sign.    g.    Failure to yield right-of-way from yield sign.    h.    Failure to yield right-of-way making left turn.    i.    Failure to yield right-of-way to pedestrian.    j.    Failure to have control.    604.50(3)   The department may require a special reexamination when a licensee has been involved in two accidents within a three-year periodan accident and the investigating officers’ reports for both accidents listofficer’s report lists a driver condition for the licensee of “apparently asleep.”“fatigue or asleep.”    604.50(4)   The department may require a special reexamination when a licensee who is 65 years of age or older has been involved in an accident and information in the investigating officer’s or the person’s own report of the accident indicates the need for reexamination. A circumstance that may indicate a need for reexamination includes, but is not limited to, any one of the following:    a.    The licensee made a left turn that resulted in the accident.    b.    The licensee failed to yield the right-of-way at a stop sign.    c.    The licensee failed to yield the right-of-way at a yield sign.    d.    The licensee failed to yield the right-of-way at an uncontrolled intersection.    e.    The licensee failed to yield the right-of-way at a traffic control signal.    f.    The licensee’s vision may be a contributing factor to a nighttimean accident.    g.    The licensee has a physical disability-related license restriction other than “corrective lenses” and the accident involved one of the circumstances listed in paragraphs “a” to “f” above.    h.    The investigating officer’s report lists a driver condition for the licensee of “loss of consciousness.”    i.    The investigating officer’s report lists a driver condition for the licensee of “illness which resulted in the accident.”    604.50(5)   The department may require a special reexamination when recommendedthe department receives an accident report or a recommendation by a peace officer, a court, or a properly documented citizen’s request. A factor that may indicate a need for reexamination includes, but is not limited to, any one of the following:    a.    Loss of consciousness.    b.    Confusion, disorientation or dementia.    c.    Inability to maintain a vehicle in the proper lane.    d.    Repeatedly ignoring traffic control devices in a nonchase setting.    e.    Inability to interact safely with other vehicles.    f.    Inability to maintain consistent speed when no reaction to other vehicles or pedestrians is required.    g.    Illness which resulted in an accident.        This rule is intended to implement Iowa Code sections 321.177, 321.186 and 321.210.        [Filed 5/13/20, effective 7/8/20][Published 6/3/20]Editor’s Note: For replacement pages for IAC, see IAC Supplement 6/3/20.
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