Bulletin 09-23-2020

Front matter not included
ARC 5193CDental Board[650]Notice of Intended Action

Proposing rule making related to continuing education credit for volunteer dental services and providing an opportunity for public comment

    The Dental Board hereby proposes to amend Chapter 25, “Continuing Education,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 147.76.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 272C and sections 147.10, 153.15A and 153.39.Purpose and Summary    The proposed amendments would allow continuing education credit for the purposes of license renewal for the delivery of volunteer dental services without compensation at free clinics. Current rules prohibit the designation of continuing education hours for the purposes of license renewal to individuals who volunteer their services.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 650—7.4(17A,147,153). Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Board no later than 4:30 p.m. on October 16, 2020. Comments should be directed to: Iowa Dental Board 400 S.W. Eighth Street, Suite D Des Moines, Iowa 50309 Phone: 515.281.3248 Fax: 515.281.7969 Email: steven.garrison@iowa.govPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

    ITEM 1.    Amend subrule 25.5(2) as follows:    25.5(2)   Types of activities acceptable for continuing dental education credit may include:    a.    A dental science course that includes topics which address the clinical practice of dentistry, dental hygiene, dental assisting and dental public health.    b.    Courses in record keeping, medical conditions which may have an effect on oral health, ergonomics related to clinical practice, HIPAA, risk management, sexual boundaries, communication with patients, OSHA regulations, and the discontinuation of practice related to the transition of patient care and patient records.    c.    Sessions attended at a multiday convention-type meeting. A multiday convention-type meeting is held at a national, state, or regional level and involves a variety of concurrent educational experiences directly related to the practice of dentistry.    d.    Postgraduate study relating to health sciences.    e.    Successful completion of a recognized specialty examination or the Dental Assisting National Board (DANB) examination.    f.    Self-study activities.    g.    Original presentation of continuing dental education courses.    h.    Publication of scientific articles in professional journals related to dentistry, dental hygiene, or dental assisting.    i.    Delivery of volunteer dental services without compensation through a free clinic, the purpose of which is the delivery of health care services to low-income or underserved individuals.

    ITEM 2.    Amend subrule 25.6(1) as follows:    25.6(1)   Unacceptable subject matter and activity types include, but are not limited to, personal development, business aspects of practice, business strategy, financial management, marketing, sales, practice growth, personnel management, insurance,and collective bargaining, and events where volunteer services are provided. While desirable, those subjects and activities are not applicable to dental skills, knowledge, and competence. Therefore, such courses will receive no credit toward renewal. The board may deny credit for any course.

    ITEM 3.    Adopt the following new subrule 25.9(8):    25.9(8)   Delivery of volunteer dental services in accordance with paragraph 25.5(2)“i” shall result in one hour of continuing education credit for every three hours worked. Dentists and dental hygienists can report a maximum of six hours of credit per biennium of volunteer dental services. Dental assistants can report a maximum of four hours of credit per biennium of volunteer dental services. The volunteer hours must be verified by the free clinic or the organization sponsoring the event where volunteer services are provided.
ARC 5185CEconomic Development Authority[261]Notice of Intended Action

Proposing rule making related to reinvestment districts program and providing an opportunity for public comment

    The Economic Development Authority hereby proposes to amend Chapter 200, “Reinvestment Districts Program,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 15.106A.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 15J and 2020 Iowa Acts, House File 2641.Purpose and Summary    2020 Iowa Acts, House File 2641, updates the Reinvestment Districts Program by providing an additional $100 million for awards made after July 1, 2020. For awards made after that date, the Act changes the calculation for the amounts deposited into each district’s fund and increases the area that may be designated as a reinvestment district to 75 acres. The Act also makes a joint entity formed by two or more cities or counties eligible for the program and allows the Economic Development Authority Board to extend the period for deposit and receipt of funds by up to five years under specified circumstances. This proposed rule making implements these changes.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa beyond the funding allocated by 2020 Iowa Acts, House File 2641. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Authority for a waiver of the discretionary provisions, if any, pursuant to 261—Chapter 199. Public Comment     Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Authority no later than 4:30 p.m. on October 13, 2020. Comments should be directed to: Lisa Connell Iowa Economic Development Authority 1963 Bell Avenue, Suite 200 Des Moines, Iowa 50315 Phone: 515.348.6163 Email: lisa.connell@iowaeda.comPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

    ITEM 1.    Amend rule 261—200.1(15J) as follows:

261—200.1(15J) Purpose.  The board is authorized by the general assembly and the governor to oversee the implementation and administration of certain provisions of a new economic development program known as the Iowa reinvestment Act, which was enacted in 2013 Iowa Acts, House File 641and amended by 2020 Iowa Acts, House File 2641. The purpose of this chapter is to describe the manner in which the authority’s part of the program will be administered. The program provides for as much as $100 million in state hotel and motel and state sales tax revenues generated by new revenue-generating projects in certain districts to be “reinvested” within those districtsfor districts approved on or before July 1, 2018, and provides as much as $100 million for districts approved after July 1, 2020. In general, the authority has the responsibility to evaluate projects and make funding decisions while the department of revenue has the responsibility for collecting the tax revenues used to fund projects under the program and making payments to municipalities. To the greatest extent possible, the board will fund projects in districts that are the most likely (1) to improve the quality of life of the municipality, the surrounding region, and the state as a whole; (2) to be unique to the municipality, the surrounding region, and the state as a whole; and (3) to substantially benefit the economy of the municipality, the surrounding region, and the state as a whole.

    ITEM 2.    Amend rule 261—200.2(15J) as follows:

261—200.2(15J) Definitions.  For purposes of this chapter unless the context otherwise requires:        "Account" means the district account that is created within the fund for each municipality which has established a district and that holds the new tax revenues deposited by the department under the program. Moneys in each account will be remitted quarterly by the department to the municipality pursuant to the department of revenue’s rules in 701—Chapter 237.        "Applicant" means a municipality applying to the board and the authority for approval of a district under the program, including the preapplication process described in rule 261—200.4(15J).        "Appurtenant structure" means any building or other fixture on a piece of real estate other than the main building provided that such a building or fixture is permanent, is wholly or partially above grade, and will be constructed or substantially improved in conjunction with the main building. A structure is appurtenant when the structure is physically connected to a main building such that the connected structures combine to create a single, integrated facility. A structure is not physically connected if the structure has a function or purpose independent of the main building, even if the structures are in close proximity or are incidentally connected by some means such as a common wall, a sidewalk, or recreational trail.        "Authority" means the economic development authority created in Iowa Code section 15.105.        "Board" means the members of the economic development authority appointed by the governor and in whom the powers of the authority are vested pursuant to Iowa Code section 15.105.        "Commencement date" means the date established for each district by the board pursuant to rule 261—200.7(15J) upon which the calculation of new state sales tax and new state hotel and motel tax revenue shall begin pursuant to rule 701—237.3(15J) and after which the department will make deposits in the fund pursuant to rule 701—237.4(15J).        "Department" means the department of revenue.        "Director" means the director of the authority.        "District" means the area within a municipality that is designated a reinvestment district under the program. For purposes of this chapter, a reinvestment district is designated during the application and approval process but is not created until it has both received the final approval of the board pursuant to rule 261—200.7(15J) and been established by ordinanceor resolution of the municipality as described in rule 261—200.8(15J).        "Due diligence committee" means the due diligence committee of the board established pursuant to 261—subrule 1.3(7).        "Fund" means the state reinvestment district fund created in 2013 Iowa Acts, House File 641, section 6Iowa Code section 15J.6, consisting of new tax revenues, and under the control of the department.        "Governing body" means the county board of supervisors, city council, or other governing body in which the legislative powers of the municipality are vested.        "Joint board" means a legal entity established or designated in an agreement between two or more contiguous counties or incorporated cities pursuant to Iowa Code chapter 28E.        "Maximum benefit amount" means the total amount of new tax revenues that may be remitted to a municipality’s reinvestment project fund and used for development in a district. The maximum benefit will be established by the board when a final application to the program is approved pursuant to rule 261—200.7(15J).        "Municipality" means a county,or an incorporated city, or a joint board.        "New lessor" means a lessor, as defined in Iowa Code section 423A.2, operating a business in the district that was not in operation in the area of the district before the effective date of the ordinanceor resolution establishing the district, regardless of ownership. “New lessor” also includes any lessor, as defined in Iowa Code section 423A.2, operating a business in the district if the place of business for that business is the subject of a project that was approved by the board.        "New retail establishment" means a business operated in the district by a retailer, as defined in Iowa Code section 423.1, that was not in operation in the area of the district before the effective date of the ordinanceor resolution establishing the district, regardless of ownership. “New retail establishment” also includes any business operated in the district by a retailer, as defined in Iowa Code section 423.1, if the place of business for that retail establishment is the subject of a project that was approved by the board.        "New tax revenues" means all state sales tax revenues and state hotel and motel tax revenues that are collected within a district by new retail establishments and new lessors, provided that such new retail establishments and lessors are included as projects in an approved district plan. New tax revenues are remitted to the department after collection by new retail establishments and new lessors and deposited by the department in a fund for use by a municipality under the program.        "Program" means the reinvestment district program established pursuant to this chapter.        "Project" means a vertical improvement constructed or substantially improved within a district using new tax revenues. “Project” does not include any of the following:
  1. A building, structure, or other facility that is in whole or in part used or intended to be used to conduct gambling games under Iowa Code chapter 99F.
  2. A building, structure, or other facility that is in whole or in part used or intended to be used as a hotel or motel if such hotel or motel is connected to or operated in conjunction with a building, structure, or other facility described in paragraph “1” above.
        "Retail business" means any business engaged in the business of selling tangible personal property or taxable services at retail in this state that is obligated to collect state sales or use tax under Iowa Code chapter 423. However, for the purposes of this chapter, “retail business” does not include a new lessoror a business engaged in an activity subject to tax under Iowa Code section 423.2(3).        "State hotel and motel tax" means the state-imposed tax under Iowa Code section 423A.3.        "State sales tax" means the sales and services tax imposed pursuant to Iowa Code section 423.2.        "Substantially improved" means that the cost of the improvements to a project areis equal to or exceedexceeds 50 percent of the assessed value of the property, excluding the land, prior to such improvements.        "Unique nature" means a quality or qualities of the projects to be developed in a district which, when considered in the entirety, will substantially distinguish the district’s projects from other existing or proposed developments in the state. For purposes of this chapter, whether a project is of a unique nature is a subjective and contextual determination that will be made by the board. In determining whether a project is of a unique nature, the board will not necessarily require a project to be entirely without precedent or to be the only one of its kind in the state, but rather the board will evaluate whether the projects to be undertaken in a district will either (1) permanently transform the aesthetics or infrastructure of a local community for the better, including by preserving important historical structures or neighborhoods; or (2) contribute substantially more to the state’s economy or quality of life than other similar projects in the state.        "Vertical improvement" means a building that is wholly or partially above grade and all appurtenant structures to the building.

    ITEM 3.    Amend rule 261—200.3(15J) as follows:

261—200.3(15J) Program overview.      200.3(1) General.  The reinvestment districts program provides for as much as $100 million in new tax revenues generated by revenue-generating projects in certain districts to be “reinvested” within those districts. The program allows municipalities to designate areas of up to 25 acres within their corporate boundaries as reinvestment districts and to use new tax revenues collected within the district to finance the development of projects within the district. The authority and the board will take applications from municipalities for designation as a district and will consider and approve eligible applicants for funding under the program.    200.3(2) Preapplication, provisional decisions, and final approval.  Each fiscal year in which funding is available, the authority will accept applications for assistance under the program. The program includes a preapplication process, a scoring process, a provisional funding decision, and a final board approval process.    200.3(3) District establishment and financing.      a.    Upon final approval of a plan, a municipality may adopt an ordinance toshall establish a district and shall notify the department that new tax revenues may be deposited in a fund under the programas described in subrule 200.8(1). The collection and deposit of new tax revenues by the department begins only after final approval of the proposed district plan and the establishment of the district’s maximum benefit amount and commencement date.     b.    TheFor districts established before July 1, 2020, the department will deposit in a fund 4 percent of the amount of retail sales subject to the state sales tax collected by new retail establishments within the district and 5 percent of the amount of sales subject to the state hotel and motel tax collected by new lessors within the district.    c.    For districts established after July 1, 2020, the department will deposit in a fund:    (1)   Four percent of the remainder of amount of sales subject to the state sales tax in the district during the quarter from new retail establishments minus the sum of the sales from the corresponding quarter of the 12-month period preceding establishment of the district, for new retail establishments identified under subparagraph 200.8(1)“c”(1) that were in operation at the end of the quarter; and    (2)   Five percent of the remainder of amount of sales subject to the state hotel and motel tax in the district during the quarter from new lessors minus the sum of the sales from the corresponding quarter of the 12-month period preceding establishment of the district, for new lessors identified under subparagraph 200.8(1)“c”(2) that were in operation at the end of the quarter.    200.3(4) Duration of funding and termination of district.  The department will deposit new tax revenues in the fund until the maximum benefit is reached or the district is terminated, whichever is earlier. A district shall be terminated as of the date 20 years after the commencement date unless a municipality dissolves the district prior to that dateor the board has approved an extension pursuant to subrule 200.10(3).    200.3(5) Use of funds.  A municipality may use moneys remitted by the department to the municipality from its account for purposes of funding development in a district according to an approved district plan as described in rule 261—200.8(15J)subrule 200.8(2).

    ITEM 4.    Amend subrule 200.4(3) as follows:    200.4(3) Annual filing window.  Each year starting on March 1 and ending on March 15that funding is available, the authority willannounce an annual filing window to accept preapplications under the program provided that funding is available. The purpose of the annual filing window is to enable the competitive scoring of applications and facilitate funding decisions by the board that are within the limitations established for the program by the general assembly. A municipality interested in applying to the program must submit a preapplication during the annual filing window or wait until the next annual filing window.

    ITEM 5.    Amend subrules 200.4(5) and 200.4(6) as follows:    200 200.4 4(5) Provisional funding decisions.      a.    The board, with the assistance of the authority, will evaluate the preapplications and assign them a provisional score based on the criteria described in rule 261—200.6(15J). Based on the results of the scoring, the board will make provisional funding decisions and notify applicants on or before June 30 of each year in which funding is available.    b.    A provisional funding decision represents an initial judgment by the board about the merits of a proposed district plan and is provided for the convenience of both applicants and the board for the better administration of the program. A provisional funding decision shall not be construed as binding on the board nor will the applicant be required to meet all of the details contained in the preapplication. A provisional funding decision shall not be construed as a final approval by the board. A municipality shall not adopt an ordinanceor resolution establishing a district based on a provisional funding decision.    c.    The final details of a proposed district plan and a final funding decision, including a maximum benefit amount and a commencement date, shall be contingent upon the receipt of a full, final, and complete application and upon final action by the board to ratify, amend, defer, or rescind its provisional funding decision as provided in rule 261—200.7(15J).    d.    The department of revenue will not deposit moneys into a fund until a final application is approved by the board and an ordinanceor resolution has been adopted by the municipality.    200 200.4 4(6) Posting of preapplication and materials to Internet site.  After the board makes a provisional funding decision, the proposed district plan, along with all accompanying materials, will be posted on the authority’s Internet site for public viewing within ten days of approval by the boardand will be available there until the final application is submitted, or for one year.

    ITEM 6.    Amend subrule 200.5(1) as follows:    200.5(1) Area suitable for development.  An applicant must be a municipality and must have an area suitable for development within the boundaries of the municipality, or, in the case of a joint board, the combined boundaries of the incorporated cities or counties that established or designated the joint board, that has been proposed for designation as a reinvestment district under the program. Only areas that meet the following requirements will be approved for designation as a reinvestment district:    a.    The area must consist only of parcels of real property that the governing body of the municipality determines will be directly and substantially benefited by development in the proposed district. In order to establish that this criterion is met, a municipality should submit information such as an estimate of the expected increase in valuation or other data that lends itself to a quantitative assessment of the extent to which the real property will benefit.    b.    The area must be in whole or in part either an economic development enterprise zone designated under2014 Iowa Code chapter 15E, division XVIII,immediately prior to July 1, 2014, or an urban renewal area established pursuant to Iowa Code chapter 403. In order to establish that this criterion is met, a municipality should submit maps of the proposed area as well as maps of the existing enterprise zone or urban renewal area. A municipality should also submit copies of the local ordinance or resolution establishing the enterprise zone or the urban renewal area.    c.    TheFor districts approved before July 1, 2018, the area must consist of contiguous parcels and must not exceed 25 acres in total.For districts approved after July 1, 2020, the area must consist of contiguous parcels and must not exceed 75 acres in total. For purposes of this subrule, “contiguous” means parcels that are physically connected. Parcels connected by streets or other rights-of-way will be considered physically connected for purposes of this rule. In designating an area that includes a right-of-way, an applicant may include an area that is less than the full width of the right-of-way, but the applicant shall not include less than 60 feet of the right-of-way’s width.    d.    For a municipality that is a cityor for a city that has established or designated a joint board, the area must not include the entire incorporated area of the city.    e.    The area must not be located in whole or in part within another district established under this chapter.

    ITEM 7.    Amend paragraph 200.5(3)"i" as follows:    i.    The proposed district plan would not create an additional district within a municipality that has already established one. While multiple districts within a single municipality are not prohibited under the program, the program does limit the size of any one district to 25 acresis limited by paragraph 200.5(1)“c” and disallows overlapping districts.are prohibited by paragraph 200.5(1)“e.” Therefore, the board will consider whether the approval of an additional district is appropriate given the particulars of the proposed additional district and the goals of the program. If a municipality proposes an additional district, the board, at its discretion, may accept the application and score it, or if the board determines that approval of an additional district would not serve the goals of the program, the board may reject the application without scoring it.

    ITEM 8.    Amend paragraph 200.5(4)"b" as follows:    b.    Information on submitting an application under the program may be obtained by contacting the economic development authority. The contact information is:Iowa Economic Development AuthorityBusiness Finance Team200 East Grand AvenueDes Moines, Iowa 50309(515)725-3000businessfinance@iowa.govbusinessfinance@iowaeda.comhttp://iowaeconomicdevelopment.com/

    ITEM 9.    Amend paragraph 200.7(1)"a" as follows:    a.    An applicant that receives a provisional funding decision must submit a final application to the board before the date of the next annual filing windowwithin one year of the submission of the preapplication. An applicant that does not file a final application within that time will be scored again with all other applicants who file in the next annual filing window.

    ITEM 10.    Amend subrule 200.7(5) as follows:    200.7(5) Posting of application and materials to Internet site.  Upon final approval by the board, the district plan, along with the municipality’s resolution and all accompanying materials, will be posted on the authority’s Internet site for public viewing within ten days of approval by the boardand will be maintained there for a period of three years.

    ITEM 11.    Amend rule 261—200.8(15J) as follows:

261—200.8(15J) Adoption of ordinance and use of funds.      200.8(1) Adoption of ordinance establishing a districtand notice to department.      a.    Upon receiving approval by the board of the final application pursuant to rule 261—200.7(15J), the municipality mayshall adopt an ordinance, or, in the case of a joint board, a resolution, establishing the district and shall notify the director of revenue of the district’s commencement date established by the board no later than 30 days after adoption of the ordinance. The    b.    For each district approved by the board before July 1, 2018, theordinanceor resolution adopted by the municipality shall include the:    (1)   Thedistrict’s commencement date; and a    (2)   Adetailed statement of the manner in which the approved projects to be undertaken in the district will be financed, including but not limited to the financial information included in the project plan.    c.    For each district approved by the board after July 1, 2020, the ordinance or resolution shall include:    (1)   The district’s commencement date;     (2)   A detailed statement of the manner in which the approved projects to be undertaken in the district will be financed, including but not limited to the financial information included in the project plan;     (3)   For each new retail establishment that was in operation before the establishment of the district, the monthly amount of sales subject to the state sales tax from the most recently available 12-month period preceding adoption of the ordinance or resolution; and    (4)   For each new lessor that was in operation before the establishment of the district, the monthly amount of sales subject to the state hotel and motel tax from the most recently available 12-month period preceding adoption of the ordinance or resolution.    d.    For each district approved by the board before July 1, 2018, the municipality shall notify the director of revenue of the district’s commencement date established by the board no later than 30 days after adoption of the ordinance or resolution establishing the district. For each district approved by the board after July 1, 2020, the municipality shall provide a copy of the ordinance or resolution establishing the district to the director of revenue no later than 30 days after adoption of the ordinance or resolution.    200.8(2) Use of funds.      a.    Following establishment of the district, a municipality may use the moneys deposited in the municipality’s reinvestment project fund created pursuant to 2013 Iowa Acts, House File 641, section 7,Iowa Code section 15J.7 to fund the development of those projects included within the district plan. For purposes of this subrule, “development” means all costs reasonably related to a project provided that such costs are described in a final application approved by the board. Development costs may include project planning, professional services, land acquisition, construction, maintenance, and operational expenses. A municipality shall enter into development agreements for the expenditure of program funds and submit copies of such agreements to the authority within 30 days of execution.    b.    Moneys deposited in such a fund shall only be used to fund projects approved by the board as part of a proposed district plan. Moneys deposited in such a fund may be used for projects that do not generate new tax revenues provided such projects are part of an approved plan. A municipality shall maintain records documenting the use of funds under the program and make them available to the board or the department upon request.    c.    Moneys from any source deposited into the fund shall not be expended for or otherwise used in connection with a project that includes the relocation of a commercial or industrial enterprise not presently located within the municipality. For the purposes of this subrule, “relocation” means the closure or substantial reduction of an enterprise’s existing operations in one area of the state and the initiation of substantially the same operation in the same county or a contiguous county in the state.However, if the initiation of operations includes an expanded scope or nature of the enterprise’s existing operations, the new operation shall not be considered to be substantially the same operation. “Relocation” does not include an enterprise expanding its operations in another area of the state provided that existing operations of a similar nature are not closed or substantially reduced.    d.    Moneys from new tax revenues collected within a district and expended by a municipality under the program are subject to audit by the department of revenue or the auditor of state.

    ITEM 12.    Amend subrule 200.9(1) as follows:    200.9(1) Plan amendments.      a.    A municipality may request an amendment to an approved district plan in order to add or modify projects. However, a proposed modification to a project, and each project proposed to be added, must first be approved by the board in the same manner as provided for the original plan, including updated or amended feasibility and economic impact studies as necessary. An applicant requesting a plan amendment is not required to file a preapplication pursuant to rule 261—200.4(15J) unless the amendment would increase the maximum benefit amount. A plan amendment request that does not increase the maximum benefit amount may be requested at any time.    b.    There is no circumstance in which the board will approve an amendment to a district plan if that amendment would result in the extension of the final commencement date established by the board. A request to extend a district’s established commencement date will be rejected.    c.    If a district plan is amended to add or modify a project, the municipality shall, if necessary, amend the ordinance, if necessaryor resolution, as applicable, to reflect any changes to the financial information required to be included under the program.    d.    If, after final approval and establishment of the district, a municipality is unable to carry out development of all the projects proposed to be undertaken in a district, the municipality shall seek a modification to the plan. If a requested plan amendment would reduce capital investment in a district or remove one or more of the projects originally approved for the district, the board in its discretion may reduce, rescind, or otherwise modify the maximum benefit amount accordingly.

    ITEM 13.    Amend rule 261—200.10(15J) as follows:

261—200.10(15J) Cessation of deposits, district dissolution, and revenue rulesrequests for extension.      200.10(1) Cessation of deposits.  As of the date 20 years after the district’s commencement date, the department will cease to deposit new tax revenues into the district’s account within the fund unless the municipality dissolves the district by ordinanceor resolution prior to that dateor the board has approved an extension pursuant to subrule 200.10(3). Once the maximum benefit amount approved by the board for the district has been reached, the department will cease to deposit new tax revenues into the district’s account within the fund. If a district reaches the maximum benefit amount, the department will notify the municipality within a reasonable amount of time.    200.10(2) District dissolution.  If a municipality dissolves a district by ordinanceor resolution prior to the expiration of the 20-year period, the municipality shall notify the director of revenue of the dissolution as soon as practicable after adoption of the ordinanceor resolution, and the department shall, as of the effective date of dissolution, cease to deposit state sales tax revenues and state hotel and motel tax revenues into the district’s account within the fund. If a municipality is notified that its maximum benefit amount has been reached, the municipality shall dissolve the district by ordinanceor resolution as soon as practicable after notification.    200.10(3) Cross reference to department rules.Requests for extension.  The department has adopted rules for the administration and deposit of moneys into the fund. See 701—Chapter 237.Upon request of the municipality prior to the dissolution of the district, and following a determination by the board that the amounts of new state sales tax revenue and new state hotel and motel tax revenue deposited in the municipality’s reinvestment project fund are substantially lower than the maximum benefit amount, the board may extend the district’s 20-year period of time for depositing and receiving revenues by up to five additional years if such an extension is in the best interest of the public.

    ITEM 14.    Adopt the following new rule 261—200.11(15J):

261—200.11(15J) Cross reference to department rules.  The department has adopted rules for the administration and deposit of moneys into the fund. See 701—Chapter 237.
ARC 5195CPharmacy Board[657]Notice of Intended Action

Proposing rule making related to temporary designation of controlled substances and providing an opportunity for public comment

    The Board of Pharmacy hereby proposes to amend Chapter 10, “Controlled Substances,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 124.201 and 124.201A and 2020 Iowa Acts, Senate File 2119.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 124.201 and 124.201A and 2020 Iowa Acts, Senate File 2119.Purpose and Summary    The proposed amendments to rule 657—10.39(124) make temporary amendments to the Iowa Code for scheduling action in the Iowa Controlled Substances Act to match similar action taken by the federal Drug Enforcement Administration. The proposed amendments add one substance (synthetic opioid) to Schedule I and remove FDA-approved cannabidiol products containing less than 0.1 percent tetrahydrocannabinol (THC).    The proposed amendments add two subrules to current rule 657—10.39(124). The new subrules may be renumbered upon adoption as 10.39(4) and 10.39(5) to conform to the hierarchy of the new rule 657—10.39(124) proposed in ARC 5155C, IAB 8/26/20.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 657—Chapter 34.Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Board no later than 4:30 p.m. on October 13, 2020. Comments should be directed to: Sue Mears Board of Pharmacy 400 S.W. 8th Street, Suite E Des Moines, Iowa 50309 Email: sue.mears@iowa.govPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

    ITEM 1.    Adopt the following new subrule 10.39(8):    10.39(8)   Amend Iowa Code section 124.212 as amended by 2020 Iowa Acts, Senate File 2119, by rescinding subsection 6.

    ITEM 2.    Adopt the following new subrule 10.39(9):    10.39(9)   Amend Iowa Code section 124.204(9) as amended by 2020 Iowa Acts, Senate File 2119, by adding the following new paragraph:    ay.     N,N-diethyl-2-(2-(4 isopropoxybenzyl)-5-nitro-1H-benzimidazol-1-yl)ethan-1-amine , its isomers, esters, ethers, salts and salts of isomers, esters and ethers (other names: isotonitazene; N,N-diethyl-2-[[4-(1-methylethoxy)phenyl]methyl]-5-nitro-1H-benzimidazole-1-ethanamine).
ARC 5194CPharmacy Board[657]Notice of Intended Action

Proposing rule making related to radiopharmaceuticals and providing an opportunity for public comment

    The Board of Pharmacy hereby proposes to amend Chapter 16, “Nuclear Pharmacy Practice,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 147.76.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 147.76.Purpose and Summary    The proposed amendment would include a requirement that nuclear pharmacies comply with the minimum standards identified in the United States Pharmacopeia General Chapter 825, which applies to radiopharmaceuticals and will be effective December 1, 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 application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 657—Chapter 34. Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Board no later than 4:30 p.m. on October 13, 2020. Comments should be directed to: Sue Mears Board of Pharmacy 400 S.W. 8th Street, Suite E Des Moines, Iowa 50309 Email: sue.mears@iowa.govPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

    ITEM 1.    Amend subrule 16.4(6) as follows:    16.4(6) Compliance with laws.  Nuclear pharmacies shall comply with all applicable laws and regulations of federal and state agencies, including those laws and regulations governing nonradioactive drugs.Nuclear pharmacies shall comply with all standards identified in the United States Pharmacopeia General Chapter 825.
ARC 5196CPublic Health Department[641]Notice of Intended Action

Proposing rule making related to waivers and “primary care” definition and providing an opportunity for public comment

    The Public Health Department hereby proposes to amend Chapter 15, “Swimming Pools and Spas,” Chapter 70, “Lead-Based Paint Activities,” Chapter 108, “Medical Residency Training State Matching Grants Program,” Chapter 155, “Licensure Standards for Substance Use Disorder and Problem Gambling Treatment Programs,” and Chapter 178, “Variances and Waivers of Public Health Administrative Rules,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code chapters 17A, 125, 135 and 135I; 2020 Iowa Acts, House File 2197; and 2020 Iowa Acts, House File 2389.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapters 17A, 125, 135 and 135I; 2020 Iowa Acts, House File 2197; and 2020 Iowa Acts, House File 2389.Purpose and Summary    2020 Iowa Acts, House File 2197, defines “primary care” specifically, and this definition is proposed to be incorporated within the definitions rule in Chapter 108. The proposed amendment will add the following definition: “‘Primary care’ means care that shall include psychiatry, obstetrics, gynecology, family medicine, internal medicine, and emergency medicine.”    2020 Iowa Acts, House File 2389, updates the Iowa Code sections related to granting variances or waivers to eliminate the word “variances” and updates the requirement for the reporting of waiver determinations of the Department into the Legislative Services Agency Internet site to within 60 days of the Department’s decision regarding a waiver request. The proposed amendments to Chapters 15, 70, 155 and 178 implement the Iowa Code changes.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to the Department’s waiver provisions contained in 641—Chapter 178. Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Department no later than 4:30 p.m. on October 13, 2020. Comments should be directed to: Susan Dixon Department of Public Health 321 East 12th Street Des Moines, Iowa 50319 Email: susan.dixon@idph.iowa.govPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

    ITEM 1.    Amend rule 641—15.7(135I) as follows:

641—15.7(135I) VariancesWaivers.  A variancewaiver to these rules may be granted only by the department. A variancewaiver can be granted only if sufficient information is provided to substantiate the need for and propriety of the action.    15.7(1)   Requests for varianceswaivers shall be in writing and shall be sent to the local inspection agency for comment. The local inspection agency shall send the request for variancewaiver to the department within 15 business days of its receipt.    15.7(2)   The granting or denial of a variancewaiver will take into consideration, but not be limited to, the following criteria:    a.    Substantially equal protection of health and safety shall be provided by a means other than that prescribed in the particular rule, or    b.    The degree of violation of the rule is sufficiently small so as not to pose a significant risk of injury to any individual, and the remedies necessary to alleviate this minor violation would incur substantial and unreasonable expense on the part of the person seeking a variancewaiver.    15.7(3)   Decisions shall be issued in writing by the department and shall include the reasons for denial or granting of the variancewaiver. Copies of decisions shall be kept at the department, and a copy shall be sent to the contracting board of health.    15.7(4)   The applicant for a variancewaiver that is denied may request a review of the denial by the director of the department. The request shall be submitted in writing within 30 days of the applicant’s receipt of the department’s denial of a variancewaiver request. The request for a review shall be addressed to the Iowa Department of Public Health, Office of the Director, Lucas State Office Building, 321 East 12th Street, Des Moines, Iowa 50319-0075. The decision of the director shall be considered the department’s final agency action.    15.7(5)   The applicant may petition for judicial review of the final agency action pursuant to Iowa Code chapter 17A.

    ITEM 2.    Amend rule 641—70.11(135) as follows:

641—70.11(135) Waivers.  Rules in this chapter are not subject to waiver or variance pursuant to 641—Chapter 178 or any other provision of law.

    ITEM 3.    Adopt the following new definition of “Primary care” in rule 641—108.2(135):        "Primary care" means care that shall include psychiatry, obstetrics, gynecology, family medicine, internal medicine, and emergency medicine.

    ITEM 4.    Amend subrule 108.3(5) as follows:    108.3(5)   A sponsor shall offer persons to whom a primary care, including psychiatry, residency position is awarded, the opportunity to participate in a rural rotation to expose the resident to the rural areas of the state.

    ITEM 5.    Amend rule 641—155.1(125,135), definition of “Variance,” as follows:        "Variance" "waiver" “Waiver”means action by the committee or division that suspends the requirements of a standard on a case-by-case basis in accordance with 641—Chapter 178.

    ITEM 6.    Amend 641—Chapter 178, title, as follows:VARIANCES AND WAIVERS OF PUBLIC HEALTH ADMINISTRATIVE RULES

    ITEM 7.    Amend subrule 178.1(1) as follows:    178.1(1) Definition.  For purposes of this chapter, “a waiver or variance” means action by the department that suspends, in whole or in part, the requirements or provisions of a rule as applied to an identified person on the basis of the particular circumstances of that person. For simplicity, the term “waiver” shall include both a “waiver” and a “variance.”

    ITEM 8.    Amend subrule 178.1(12) as follows:    178.1(12) Summary reports.  Semiannually,When the department grants a waiver, the department shall prepare a summary report identifyingsubmit to the designated Internet site, within 60 days of the waiver decision, the following information: identification of the rules for which a waiver has been granted or denied, the number of times a waiver was granted or denied for each rule, a citation to the statutory provisions implemented by these rules, and a general summary of the reasons justifying the department’s actions on waiver requests. If practicable, the report shall detailinclude information detailing the extent to which the granting of a waiver has affected the general applicability of the rule itself. Copies of this report shall be available for public inspection and shall be provided semiannually to the administrative rules coordinator and the administrative rules review committee.

    ITEM 9.    Amend rule 641—178.2(17A,135) as follows:

641—178.2(17A,135) Sample petition for waiver.  A petition for waiver filed in accordance with 641—178.1(17A,135) must meet the requirements specified therein and must substantially conform to the following form:BEFORE THE DEPARTMENT OF PUBLIC HEALTH    Petition by (name of petitioner) for the waiver/variancewaiver of (insert rule citation)relating to (insert the subject matter). }    PETITION FORWAIVER/VARIANCEWAIVER
  1. Provide petitioner’s (person asking for a waiver or variance) name, address, and telephone number. Also include the name, address, and telephone number of the petitioner’s legal representative, if applicable, and a statement indicating the person to whom communications concerning the petition should be directed.
  2. Describe and cite the specific rule from which a waiver is requested.
  3. Describe the specific waiver requested, including the precise scope and time period for which the waiver will extend.
  4. Explain the relevant facts and reasons that the petitioner believes justify a waiver. Include in your answer all of the following:
    a.    Why applying the rule would result in undue hardship to the petitioner;    b.    Why waiving the rule would not prejudice the substantial legal rights of any person;    c.    Whether the provisions of the rule subject to the waiver are specifically mandated by statute or another provision of law; and    d.    How substantially equal protection of public health, safety, and welfare will be afforded by a means other than that prescribed in the particular rule for which the waiver is requested.
  1. Provide a history of any prior contacts between the department and petitioner relating to the regulated activity, license, registration, certification or permit that would be affected by the waiver. Include a description of each affected license, registration, certification, or permit held by the petitioner, any formal charges filed, any notices of violation, any contested case hearings held, or any investigations related to the regulated activity, license, registration, certification, or permit.
  2. Provide information known to the petitioner regarding the department’s action in similar circumstances.
  3. Provide the name, address, and telephone number of any public agency or political subdivision that also regulates the activity in question or that might be affected by the granting of the petition.
  4. Provide the name, address, and telephone number of any person or entity that would be adversely affected by the granting of the waiver.
  5. Provide the name, address, and telephone number of any person with knowledge of the relevant facts relating to the proposed waiver.
  6. Provide signed releases of information authorizing persons with knowledge regarding the request to furnish the department with information relevant to the waiver.
I hereby attest to the accuracy and truthfulness of the above information.Petitioner’s signatureDate
ARC 5182CRevenue Department[701]Notice of Intended Action

Proposing rule making related to local assessors and providing an opportunity for public comment

    The Revenue Department hereby proposes to amend Chapter 7, “Practice and Procedure Before the Department of Revenue,” Chapter 71, “Assessment Practices and Equalization,” and Chapter 72, “Examination and Certification of Assessors and Deputy Assessors,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 421.14; 441.6(3) as enacted by 2020 Iowa Acts, House File 2641, section 106; and 441.17(2) as amended by 2020 Iowa Acts, House File 2641, section 107.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 441.6, 441.8, 441.17 and 441.41, and 2020 Iowa Acts, House File 2641, division XIII.Purpose and Summary    This proposed rule making is intended to implement statutory changes to the regulation of local assessors. In particular, this rule making addresses changes to Iowa Code section 441.6 prohibiting an appointee selected by the conference board from assuming the office of city or county assessor until the appointment or reappointment is confirmed by the Director of Revenue. The rule making addresses the process by which the Director may confirm or reject an appointment or reappointment to the position of city or county assessor. Additionally, this rule making provides for a contested case proceeding for an aggrieved assessor or conference board upon the rejection of an appointment of an assessor by the Director.    This rule making also addresses a new statutory requirement under Iowa Code section 441.17(2) prohibiting assessors and deputy assessors from assessing a property if the assessor or deputy assessor or a member of the assessor’s or deputy assessor’s immediate family owns the property, has a financial interest in the property, or has a financial interest in the entity that owns the property. This rule making sets forth a reporting process for the Department to ensure that this statutory prohibition is followed and defines certain terms within the rule.    Finally, this rule making addresses a new statutory requirement that a conference board obtain city attorney or county attorney approval prior to employing special counsel to assist the city legal department or county attorney under Iowa Code section 441.41.Fiscal Impact     This rule making has nominal fiscal impact to the State of Iowa. It is possible that local governments and the Department will incur nominal cost related to the new reporting requirements. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A). Public Comment     Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on October 13, 2020. Comments should be directed to: Nick Behlke Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.336.9025 Email: nick.behlke@iowa.govPublic Hearing     A public hearing at which persons may present their views orally or in writing will be held via Google Meet at the link below. Participants may also call in via phone at the following phone number: (US) +1 316.536.0149. When prompted, enter PIN: 534 220 226#. Please mute your phones or microphones upon entering the meeting. October 13, 2020 1:30 to 2:30 p.m. Google Meet Location meet.google.com/wbe-kywn-bmh    Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.     Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

    ITEM 1.    Adopt the following new rule 701—7.37(441):

701—7.37(441) Appeals of director’s confirmation decision regarding conference board appointment or reappointment of assessor.      7.37(1) Appeal process.  Any assessor or conference board wishing to contest the director’s rejection of the conference board’s appointment or reappointment of an assessor under 701—subrule 72.15(4) or 72.16(3) shall file an appeal, in writing, within 30 days of the director’s notice of decision. Any person who does not seek an appeal within 30 days of the director’s notice shall be precluded from challenging the director’s decision. Appeals will be governed by the procedures set forth in this rule together with the process set forth in the following rules: rule 701—7.8(17A), excluding the first sentence of the introductory paragraph of 701—7.8(17A) and excluding subrules 7.8(1) to 7.8(7); subrules 7.8(8) and 7.8(9); subrule 7.8(10), except the clerk of the hearings section will file the protest file to the division of administrative hearings within ten days; subrules 7.9(1) and 7.9(2); rule 701—7.10(17A); paragraphs 7.11(2)“d” and “e”; subrules 7.12(2) to 7.12(4); subrules 7.12(7) and 7.12(8); rule 701—7.13(17A); rule 701—7.14(17A); rule 701—7.15(17A); rule 701—7.16(17A); subrules 7.17(1) to 7.17(7); subrule 7.17(8), except the provisions of Iowa Code section 421.60(4) and paragraph 7.17(8)“b” related to costs shall not apply; subrules 7.17(9) and 7.19(10); subrules 7.17(13) and 7.17(14); rule 701—7.18(17A); rule 701—7.19(17A); rule 701—7.20(17A); rule 701—7.21(17A); and rule 701—7.22(17A).     7.37(2) Contents.  The appeal shall contain the following in separate numbered paragraphs:    a.    A statement of the department action giving rise to the appeal.    b.    The date of the department action giving rise to the appeal.    c.    Each error alleged to have been committed, listed as a separate paragraph. For each error listed, an explanation of the error and all relevant facts related to the error shall be provided.    d.    Reference to the particular statutes, rules, or agreement terms, if known.    e.    References to and copies of any documents or other evidence relevant to the appeal.    f.    Any other matters deemed relevant to the appeal.    g.    A statement setting forth the relief sought.    h.    The signature, mailing address, and telephone number of the person or that person’s representative.    7.37(3) Burden of proof.  The burden of proof is on the party challenging the director’s decision under 701—subrule 72.15(4) or 72.16(3).       This rule is intended to implement Iowa Code chapter 17A.

    ITEM 2.    Adopt the following new rule 701—71.27(441):

701—71.27(441) Assessor shall not assess own property.      71.27(1) Assessor prohibited from assessing own property.  An assessor or deputy assessor shall not personally assess a property if the assessor or deputy assessor or a member of the assessor’s or deputy assessor’s immediate family owns the property, has a financial interest in the property, or has a financial interest in the entity that owns the property. The assessing jurisdiction shall pay all costs and expenses associated with the assessment of the above property.    71.27(2) Report to the department.      a.    Not later than January 1 of each year, assessors, and in the case that an assessing jurisdiction has a deputy assessor, deputy assessors, shall report to the director, using forms and procedures prescribed by the director, an inventory of all of the following real property in the assessor and deputy assessor’s assessing jurisdiction:     (1)   Properties owned by the assessor;     (2)   Properties owned by a member of the assessor’s immediate family;    (3)   Properties in which the assessor or a member of the assessor’s immediate family has a financial interest;    (4)   Properties owned by an entity in which the assessor or a member of the assessor’s immediate family has a financial interest;    (5)   Properties owned by a deputy assessor;    (6)   Properties owned by a member of the deputy assessor’s immediate family;    (7)   Properties in which a deputy assessor or a member of a deputy assessor’s immediate family has a financial interest;    (8)   Properties owned by an entity in which a deputy assessor or a member of a deputy assessor’s immediate family has a financial interest.    b.    Not later than March 1 of each year, assessors, and in the case that an assessing jurisdiction has a deputy assessor, deputy assessors, shall report to the director, using forms and procedures prescribed by the director, the property record card of each of the properties described in paragraph 71.27(2)“a” and additional information as required by the director. In the event a property described in paragraph 71.27(2)“a” was reported on January 1 but is no longer owned by one of the parties described in paragraph 71.27(2)“a” and none of the parties described in paragraph 71.27(2)“a” has a financial interest in the property or has a financial interest in the entity that owns the property, the assessor is not required to make the March 1 report described in this subrule for that property but shall report to the department the sale or other circumstances under which the property no longer requires reporting under this subrule.    c.    In the event of an appeal to the board of review regarding the assessment of any of the properties described in paragraph 71.27(2)“a,” the board of review shall report the results of the appeal to the director within 15 days following the adjournment of any regular or special session of the board of review.    71.27(3) Powers and duties of director.  The director shall have and assume all of the powers and duties under Iowa Code section 421.17 in administering this rule.    71.27(4) Definitions.  For purposes of this rule, the following definitions shall govern.        "Financial interest" includes but is not limited to the holding of legal title to real property or any ownership interest in an entity that holds legal title to real property. Notwithstanding the preceding sentence, ownership interest in an entity shall not be deemed a “financial interest” when a person’s ownership interest equals less than 10 percent of the entity’s total ownership interest.        "Immediate family" includes the spouse, children, or parents of the assessor or deputy assessor, including adoptive relationships. There is a rebuttable presumption that relatives of the assessor or deputy assessor beyond the relation of the spouse, children, or parents of the taxpayer are not within the taxpayer’s immediate family.        "Personally assess" means engaging in the listing, valuation, and classification of real property.       This rule is intended to implement Iowa Code section 441.17 as amended by 2020 Iowa Acts, House File 2641.

    ITEM 3.    Adopt the following new rule 701—71.28(441):

701—71.28(441) Special counsel.      71.28(1)   Before the conference board may employ special counsel to assist the city legal department or county attorney under Iowa Code section 441.41, the city legal department in the case of cities having an assessor, or county attorney in the case of counties, shall first provide written approval of the employment of special counsel for each matter in which the special counsel will be employed on a case-by-case basis.     71.28(2)   In the event special counsel is employed, the assessor shall provide the department with written notice of said employment, including the matter being litigated, justification for the hiring of special counsel, and the special counsel’s name and hourly rate, within ten days of the hiring. In the event that special counsel has been employed by the conference board as of [the effective date of this rule], the assessor shall provide the department with written notification of said employment, including the matter being litigated, justification for the hiring of special counsel, and the special counsel’s name and hourly rate, within ten days of [the effective date of this rule] for each case. On or before January 1 of each year, the assessor shall submit to the director, on forms prescribed by the director, a report of all matters litigated by special counsel in the previous 12-month period and the cost of said litigation for each case.       This rule is intended to implement Iowa Code section 441.41 as amended by 2020 Iowa Acts, House File 2641.

    ITEM 4.    Amend subrule 72.15(1) as follows:    72.15(1) Meetingof the conference board.  At the time specified in Iowa Code section 441.6, the conference board shall hold a meeting and take action to appoint an assessor or request permission to hold a special examination. Within ten days of this meeting, the conference board shall notify the director of the appointment or request a special examination.The notice shall include a statement by the conference board stating whether there have been any charges or evidence of any misconduct, nonfeasance, malfeasance, or misfeasance against the appointee. If there have been charges or evidence of any misconduct, nonfeasance, malfeasance, or misfeasance against the appointee, the notice shall include a summary of the misconduct, nonfeasance, malfeasance, or misfeasance and any action taken regarding the misconduct, nonfeasance, malfeasance, or misfeasance. For purposes of this rule, “misconduct” means the same as defined in Iowa Code section 441.9.

    ITEM 5.    Adopt the following new subrule 72.15(4):    72.15(4) Confirmation by the director of revenue.      a.    The appointee selected by the conference board shall not assume the office of city or county assessor until such appointment is confirmed by the director of revenue. In considering whether to confirm the appointment, the director shall consider any charges or evidence of misconduct, nonfeasance, malfeasance, or misfeasance by the appointee. For purposes of this rule, “misconduct” means the same as defined in Iowa Code section 441.9. Within 30 days of receiving the notice contemplated in subrule 72.15(1), the director shall notify the conference board and assessor of the acceptance or rejection of the appointment. An appeal of the director’s decision under this subrule may be made under rule 701—7.37(441).    b.    Immediately following selection by the conference board, the appointee assessor shall submit information to the director as required for the director or designee to conduct a background check. The director or designee may review the department’s records and other records in considering whether to confirm the appointment of an assessor.

    ITEM 6.    Amend subrule 72.16(1) as follows:    72.16(1) Time for reappointment.  A conference board must decide whether to reappoint an incumbent assessor at least 90 days before the expiration of the incumbent’s term. If the incumbent is not to be reappointed, the conference board shall so notify the incumbent in writing at least 90 days before the expiration of the incumbent’s term. Failure of the conference board to provide timely notification of the decision not to reappoint the assessor shall result in the assessor being reappointed.In no case may an incumbent assessor be reappointed earlier than 150 days before the expiration of the incumbent’s term. Within ten days of reappointment or notification of expiration of the incumbent’s term, the conference board shall notify the director of the reappointment or notification of expiration of the incumbent’s term. If the conference board reappoints an incumbent assessor, the notice shall include a statement by the conference board stating whether there have been any charges or evidence of any misconduct, nonfeasance, malfeasance, or misfeasance against the appointee. If there have been charges or evidence of any misconduct, nonfeasance, malfeasance, or misfeasance against the appointee, the notice shall include a summary of the misconduct, nonfeasance, malfeasance, or misfeasance and any action taken regarding the misconduct, nonfeasance, malfeasance, or misfeasance. For purposes of this rule, “misconduct” means the same as defined in Iowa Code section 441.9.

    ITEM 7.    Adopt the following new subrule 72.16(3):    72.16(3) Confirmation by the director of revenue.      a.    An assessor reappointed by the conference board shall not assume the office of city or county assessor in the subsequent term until such reappointment is confirmed by the director of revenue. In considering whether to confirm the reappointment, the director shall consider any charges or evidence of misconduct, nonfeasance, malfeasance, or misfeasance by the appointee. For purposes of this rule, “misconduct” means the same as defined in Iowa Code section 441.9. Within 30 days of receiving notice of reappointment by the conference board, the director shall notify the conference board and assessor of the acceptance or rejection of the reappointment. An appeal of the director’s decision under this subrule may be made under rule 701—7.37(441).    b.    Immediately following selection by the conference board, the appointee assessor shall submit information to the director as required for the director or designee to conduct a background check. The director or designee may review the department’s records and other records in considering whether to confirm the reappointment of an assessor.

    ITEM 8.    Amend rule 701—72.16(441), implementation sentence, as follows:       This rule is intended to implement Iowa Code Supplement section441.6 as amended by 2020 Iowa Acts, House File 2641, section 106, and Iowa Code section 441.8.
ARC 5181CRevenue Department[701]Notice of Intended Action

Proposing rule making related to adoption tax credit and providing an opportunity for public comment

    The Revenue Department hereby proposes to amend Chapter 42, “Adjustments to Computed Tax and Tax Credits,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 421.14 and 422.12A.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 422.12A.Purpose and Summary    During the 2019 Legislative Session, Governor Reynolds signed 2019 Iowa Acts, House File 779, which provided changes to the adoption tax credit set forth in Iowa Code section 422.12A. In particular, retroactive to January 1, 2019, for tax years beginning on or after that date, these changes require taxpayers claiming the adoption tax credit to claim qualified adoption expenses paid or incurred prior to or during the tax year in which the adoption becomes final in the tax year in which the adoption becomes final. These changes also require such taxpayers with qualified adoption expenses paid or incurred after the tax year in which the adoption becomes final to claim said expenses in the tax year in which the adoption expenses are paid or incurred. Therefore, the Department proposes this rule making to implement the aforementioned changes.Fiscal Impact    This rule making has no fiscal impact beyond that of the legislation it is intended to implement. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A). Public Comment    Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on October 13, 2020. Comments should be directed to: Ellen Reynolds Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.725.4057 Email: ellen.reynolds@iowa.govPublic Hearing    No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

    ITEM 1.    Amend rule 701—42.52(422) as follows:

701—42.52(422) Adoption tax credit.  Effective for tax years beginning on or after January 1, 2014, an adoption tax credit is available for individual income tax equal to the amount of qualified adoption expenses paid or incurred by a taxpayer during the tax year related to the adoption of a child. For an adoption finalized on or after January 1, 2014, but before January 1, 2017, the total adoption tax credit claimed for the adoption may not exceed $2,500. For an adoption finalized on or after January 1, 2017, the total adoption tax credit claimed for the adoption may not exceed $5,000.    42.52(1) Adoption.  For purposes of the credit, an adoption occurs when a child is permanently placed in Iowa by any of the following:    a.    The department of human services;    b.    An adoption service provider as defined in Iowa Code section 600A.2; or    c.    An agency that meets the provisions of the interstate compact in Iowa Code section 232.158.    42.52(2) Child.  A “child” is an individual who is under the age of 18 years. “Child” does not include any individual who is 18 years of age or older.    42.52(3) Qualified adoption expenses.       a.    Generally.“Qualified adoption expenses” means unreimbursed expenses paid or incurred in connection with the adoption of a child. Qualified adoption expenses include all fees and costs related to the adoption of a child, such as:    (1)   Medical and hospital expenses of the biological mother that are incident to the child’s birth;    (2)   Welfare agency fees and other reasonable and necessary adoption fees;    (3)   Court costs, attorney fees, and other legal fees;    (4)   Travel expenses, including amounts spent for meals and lodging while away from home; and    (5)   All other fees and costs related to the adoption of a child.    b.    Limitations.Expenses that are eligible for the federal adoption credit as provided in Section 23(d)(1) of the Internal Revenue Code will be considered qualified adoption expenses. Expenses paid or incurred in violation of state or federal law are not qualified adoption expenses. Expenses that have been reimbursed are not qualified adoption expenses.    42.52(4) Claiming the credit.      a.    Amount eligible for credit.For tax years beginning on or after January 1, 2014, but beginning before January 1, 2017, the first $2,500 of qualified adoption expenses is eligible for the credit. For tax years beginning on or after January 1, 2017, the first $5,000 of qualified adoption expenses is eligible for the credit. The maximum credit amount is determined at the time the adoption becomes final. If the qualified adoption expenses are less than the maximum credit amount, then the total amount of qualified expenses can be claimed as a credit. The amount of tax credit claimed cannot be used as an itemized deduction for adoption expenses provided in 701—subrule 41.5(3).     b.    Claiming the credit in the year the adoption becomes finaltax years beginning on or after January 1, 2014, but before January 1, 2019.To    (1)   Claiming the credit in the year the adoption becomes final. For tax years beginning on or after January 1, 2014, but before January 1, 2019, toclaim an adoption tax credit, a taxpayer must claim the credit for all qualified adoption expenses paid or incurred in the tax year the adoption becomes final, up to the maximum credit amount provided in paragraph 42.52(4)“a.”    c.    (2)   Claiming the credit in years other than the year the adoption becomes final.IfClaiming the credit in years other than the year the adoption becomes final. For tax years beginning on or after January 1, 2014, but before January 1, 2019, if a taxpayer cannot claim the maximum credit amount provided in paragraph 42.52(4)“a” for the year the adoption becomes final, the taxpayer may amend a prior year’s return to claim any remaining credit for expenses paid in that prior year, or the taxpayer may claim any remaining credit on a subsequent year’s return for expenses paid in that subsequent year. If a qualified adoption expense was incurred in one tax year and paid in another tax year, the taxpayer may only claim a credit for that expense in one year. The total adoption tax credit claimed for all years combined may not exceed the maximum credit amount per adoption provided in paragraph 42.52(4)“a.” An adjustment to a prior’s year return is subject to the limitations in rule 701—40.20(422).    c.    Claiming the credit in tax years beginning on or after January 1, 2019.    (1)   Claiming the credit in the year the adoption becomes final. For tax years beginning on or after January 1, 2019, to claim an adoption tax credit, a taxpayer must claim the credit in the tax year the adoption is finalized for all qualified adoption expenses paid or incurred prior to or in the tax year the adoption becomes final, up to the maximum credit amount of $5,000. A taxpayer shall not amend a prior year return in an attempt to claim the credit for unreimbursed qualified adoption expenses paid or incurred prior to the tax year in which the adoption becomes final.    (2)   Claiming the credit in years after the adoption becomes final. For tax years beginning on or after January 1, 2019, if a taxpayer cannot claim the maximum credit amount of $5,000 for the year the adoption becomes final, the taxpayer may claim an adoption tax credit for any unreimbursed qualified adoption expenses paid or incurred after the tax year in which the adoption becomes final in the tax year in which unreimbursed qualified adoption expenses are paid or incurred.    d.    Claiming the credit by two adoptive parents.The adoption tax credit may only be claimed by a person who adopted the child. When a married couple adopts a child together and the couple files jointly on the same return, the credit may only be claimed once between the couple. When any other two persons adopt a child together, including married persons filing separately on the same or different returns or any unmarried persons filing on separate returns, the credit must be divided between the adoptive parents. Two adoptive parents, other than persons who are married filing jointly, may agree to divide the credit in any way. The total adoption tax credit claimed for all years by both parents combined may not exceed the maximum credit amount per adoption provided in paragraph 42.52(4)“a.”    e.    Adoption of a special needs child.If a taxpayer adopts a special needs child, the credit under this rule cannot exceed the amount of qualified adoption expenses paid or incurred by the taxpayer during the tax year. The amount of the federal adoption tax credit claimed for the adoption of a special needs child does not affect the amount of the credit under this rule.    f.    Adoption tax credit in excess of tax liability.Any credit in excess of the taxpayer’s tax liability is refundable. In lieu of claiming the refund, the taxpayer may elect to have the overpayment credited to the tax liability for the following tax year.        This rule is intended to implement Iowa Code section 422.12A as amended by 2016 Iowa Acts, House File 2468;, and by 2017 Iowa Acts, Senate File 433; and 2019 Iowa Acts, House File 779.
ARC 5183CRevenue Department[701]Notice of Intended Action

Proposing rule making related to statement furnishment deadlines and providing an opportunity for public comment

    The Revenue Department hereby proposes to amend Chapter 46, “Withholding,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 421.14, 422.16 and 422.68.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 422.16.Purpose and Summary    In the July 31, 2019, Iowa Administrative Bulletin, the Department proposed a rule making (i.e., Notice of Intended Action, ARC 4561C) to amend Chapter 46. That rule making is related to new electronic filing requirements for W-2 forms and 1099 forms and was subsequently adopted and filed and published in the Iowa Administrative Bulletin (ARC 4678C, IAB 9/25/20, effective 10/30/19). One purpose of that rule making was to move the annual deadline for filing Verified Summary of Payments Reports, W-2 forms, and 1099 forms with the Department from January 31 to February 15. It was not the intent of the Department to attempt to disregard the annual January 31 deadline by which a withholding agent or employer must furnish statements to employees, nonresidents, or other persons, as described in Iowa Code section 422.16(7)“a.” However, that rule making’s amendment to subparagraph 46.3(3)“d”(3) may have given that appearance.     This proposed rule making clarifies that the annual deadline under Iowa Code section 422.16(7)“a” remains January 31. This rule making also corrects a typo in subparagraph 46.3(3)“d”(2) and updates subparagraph 46.3(3)“e”(1) by removing a reference to a rescinded subrule, replacing references to certain credits, and making a stylistic change. Lastly, this rule making clarifies that the withholding agents’ electronic filing requirement applies for all 1099 forms and W-2 forms for persons from whom Iowa income tax was withheld.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A). Public Comment     Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on October 13, 2020. Comments should be directed to: Clara Wulfsen Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.322.2900 Email: clara.wulfsen@iowa.govPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

    ITEM 1.    Amend paragraphs 46.3(3)"d" to 46.3(3)"g" as follows:    d.    Reports for employee.    (1)   General rule. Every employer required to deduct and withhold tax from compensation of an employee must furnish to each employee with respect to the compensation paid in Iowa by such employer during the calendar year, a statement containing the following information: the name, address, and federal employer identification number of the employer; the name, address, and social security number of the employee; the total amount of compensation paid in Iowa;and the total amount deducted and withheld as tax under subrule 46.1(1).    (2)   Form of statement. The information required to be furnishedto an employee under the preceding paragraph shall be furnished on an Internal Revenue Service combined Wage and Tax Statement, Form W-2, hereinafter referred to as “combined W-2.” Any reproduction, modification or substitution for a combined W-2 by the employer must be approved by the department. Employers should keep copies of the combined W-2 for four years from the end of the year for which the combined W-2 applies.    (3)   Time for furnishing statement. Each statement required by paragraph “d” to be furnished for a calendar year and each corrected statement required for any prior year shall be furnished to the employee on or before February 15January 31 of the year succeeding such calendar year, or if an employee’s employment is terminated before the close of a calendar year without expectation that it will resume during the same calendar year, within 30 days from the day on which the last payment of compensation is made, if requested by such employee, but not later than January 31 of the following year. See paragraph 46.3(3)“e” for provisions relating to the filing of copies of the combined W-2 with the department of revenue, and see subparagraph 46.3(3)“f”(1) for the provision relating to filing W-2 forms with the department for tax year 2019 and all subsequent tax years.    (4)   Corrections. An employer must furnish a corrected combined W-2 to an employee if, after the original statement has been furnished, an error is discovered in either the amount of compensation shown to have been paid in Iowa for the prior year or the amount of tax shown to have been deducted and withheld in the prior year. Such statement shall be marked “corrected by the employer.” See paragraph 46.3(3)“e” for provisions relating to the filing of a corrected combined W-2 with the department.    (5)   Undelivered combined W-2. Any employee’s copy of the combined W-2 which, after reasonable effort, cannot be delivered to an employee shall be transmitted to the department with a letter of explanation.    (6)   Lost or destroyed. If the combined W-2 is lost or destroyed, the employer shall furnish a substitute copy to the employee. The copy shall be clearly marked “Reissued by Employer.”    e.    Annual verified summary of payments reports.    (1)   Every withholding agent required to withhold Iowa income tax under subrules 46.1(1), 46.1(2), 46.1(3), and 46.4(1) is to furnish to the department of revenue on or before February 15 following the tax year an annual Verified Summary of Payments Report (VSP).The withholding agent completing the VSP form must enter the total Iowa income tax withheld that is shown on the W-2 forms and 1099 forms for the year, the new jobs credits, supplementalnew jobs credits, accelerated career education credits and housing assistancetargeted jobs credits claimed on withholding returns for the year. In addition, the withholding agent must enter on the VSP the withholding payments made for the year. If the amount of Iowa income tax withholding remitted to the department of revenue for the year is less than the withholding tax and withholding credits claimed, the withholding agent is to report the additional withholding tax due on an amended return and submit payment to the department.If the Iowa income tax shown as withheld on the W-2sW-2 forms and 1099s1099 forms issued for the tax year is less than the amount of withholding tax remitted to the department of revenue by the withholding agent, the agent should file an amended return with the department reflecting the excess tax paid.    (2)   For Verified Summary of Payments ReportVSP forms filed with the department of revenue for the year 2000 through the year 2016, the withholding agents are not to submit W-2 forms and 1099 forms with the reports. However, the withholding agents should supply W-2 forms or 1099 forms as requested by personnel of the department of revenue if the request for the forms is made within three years from the end of the year for which the W-2 forms or 1099 forms apply. Therefore, if a request is made to a withholding agent for a W-2 form or a 1099 form for the year 2013, the request is valid if the request is postmarked, faxed or made on or before December 31, 2016.    (3)   Penalty. Failure to meet the filing requirements set out in this paragraph will subject withholding agents to the penalties under Iowa Code section 422.16(10).    f.    W-2 forms.    (1)   For tax year 2019 and all subsequent tax years, all withholding agents are required to electronically file W-2 forms for employees from whomIowa income tax was withheld with the department of revenue on or before February 15 following the tax year.    (2)   The department of revenue may, in a case involving a hardship, extend the requirement to electronically file to the 2020 tax year. No extension of time shall be granted unless the withholding agent makes a written request to the department of revenue for such action.    (3)   Penalty. Failure to meet the filing requirements set out in this paragraph will subject withholding agents to the penalties under Iowa Code section 422.16(10).    g.    1099 forms and W-2G forms.    (1)   For tax year 2019 and all subsequent tax years, all withholding agents are required to electronically file all 1099 forms and W-2G forms for persons from whomIowa income tax was withheld on or before February 15 following the tax year.    (2)   The department of revenue may, in a case involving a hardship, extend the requirement to electronically file to the 2020 tax year. No extension of time shall be granted unless the withholding agent makes a written request to the department of revenue for such action.    (3)   Penalty. Failure to meet the filing requirements set out in this paragraph will subject withholding agents to the penalties under Iowa Code section 422.16(10).
ARC 5184CRevenue Department[701]Notice of Intended Action

Proposing rule making related to declaration of value forms and providing an opportunity for public comment

    The Revenue Department hereby proposes to amend Chapter 79, “Real Estate Transfer Tax and Declarations of Value,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 421.14.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 428A.1.Purpose and Summary    This proposed rule making makes an amendment related to the transmittal of declaration of value forms following an amendment to Iowa Code section 428A.1 made in 2020 Iowa Acts, House File 2641.Fiscal Impact     This rule making has nominal fiscal impact to the State of Iowa. The Department will incur nominal cost in implementing these changes. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A). Public Comment     Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on October 13, 2020. Comments should be directed to: Nick Behlke Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.725.9948 Email: nick.behlke@iowa.govPublic Hearing     A public hearing at which persons may present their views orally or in writing will be held via Google Meet at the link below. Participants may also call in via phone at the following phone number: (US) +1 402.821.1140. When prompted, enter PIN: 395 454 339#. Please mute your phones or microphones upon entering the meeting. October 13, 2020 2:30 to 3:30 p.m. Google Meet Location meet.google.com/vmf-iced-vma     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.     Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

    ITEM 1.    Amend subrule 79.3(3) as follows:    79.3(3) Transmittal of forms.  Real estate transfer-declaration of value forms filed with the county recorder shall be transmitted promptly to the appropriate assessordepartment. City and county assessors shall transmit to the department of revenue within 60 days of the end of each calendar quarter all real estate transfer-declaration of value forms received from the county recorder during that calendar quarter. Under no circumstances shall the assessor retain any real estate transfer-declaration of value form longer than designated in this subrule.Nothing in this subrule shall be construed to relieve, limit, or prohibit city and county assessors from completing the requirements set forth in Iowa Code sections 421.17(6)“a” and 421.17(6)“b.”
ARC 5180CTransportation Department[761]Notice of Intended Action

Proposing rule making related to waivers and providing an opportunity for public comment

    The Department of Transportation hereby proposes to amend Chapter 11, “Waiver of Rules,” and Chapter 112, “Primary Road Access Control,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 307.12 and Executive Order 11 dated September 14, 1999.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 17A.9A as amended by 2020 Iowa Acts, House File 2389, section 10.Purpose and Summary    The proposed amendments update Chapters 11 and 112 to remove the word “variance” when used with the word “waiver” in accordance with the same change included in 2020 Iowa Acts, House File 2389, section 10. Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the person’s circumstances meet the statutory criteria for a waiver may petition the Department for a waiver under 761—Chapter 11. Public Comment     Any interested person may submit written comments concerning this proposed rule making or may submit a written request to make an oral presentation at a public hearing. Written comments or requests to present oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on October 13, 2020. Comments should be directed to: Tracy George Department of Transportation DOT Rules Administrator, Strategic Communications and Policy Bureau 800 Lincoln Way Ames, Iowa 50010 Email: tracy.george@iowadot.usPublic Hearing     If requested, a public hearing to hear oral presentations will be held on October 15, 2020, via conference call from 9 to 10 a.m. Persons who wish to participate in the conference call should contact Tracy George before 4:30 p.m. on October 13, 2020, to facilitate an orderly hearing. A conference call number will be provided to participants prior to the hearing.     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.     Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact Tracy George, the Department’s rules administrator, and advise of specific needs.     The public hearing will be canceled without further notice if no oral presentation is requested. 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 11.1(1) as follows:    11.1(1)   The purpose of this chapter is to establish a general process for granting waivers or variances (hereinafter referred to as waivers) from the requirements of department rules. A waiver is an agency action which suspends in whole or in part the requirements or provisions of a rule as applied to an identified person on the basis of the particular circumstances of that person.

    ITEM 2.    Amend paragraph 112.12(2)"c" as follows:    c.    A predetermined access location that does not meet required spacing standards is not a waiver or variance of these rules if justification for the access location is based on one or more of the considerations listed in paragraph “a” of this subrule. The final access review letter must include this justification.
ARC 5179CTransportation Department[761]Notice of Intended Action

Proposing rule making related to indicators for autism and hearing impairment and providing an opportunity for public comment

    The Department of Transportation hereby proposes to amend Chapter 605, “License Issuance,” and Chapter 630, “Nonoperator’s Identification,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 307.12, 321.189 and 321.190.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 321.189 as amended by 2020 Iowa Acts, House File 2372, section 1; Iowa Code section 321.190 as amended by 2020 Iowa Acts, House File 2372, section 2; and 2020 Iowa Acts, House File 2585, section 35.Purpose and Summary    The proposed amendments to Chapters 605 and 630 conform the rules with 2020 Iowa Acts, House File 2372, sections 1 and 2, and 2020 Iowa Acts, House File 2585, section 35. House File 2372 amended Iowa Code sections 321.189 and 321.190 to allow a person to add an indicator to the person’s driver’s license or nonoperator’s identification card indicating the person’s autism status. House File 2585 directed all administrative rules to be updated to reflect the term “hard of hearing” rather than the term “hearing impaired.”    The autism indicator is a new indicator that can be added to the person’s driver’s license or nonoperator’s identification card at the person’s request. The hard-of-hearing indicator is not new but is being renamed to reflect current terminology.     The proposed amendments also adopt a technical change to reflect current Department practice that one payment method may be used to pay multiple fees associated with a driver’s license transaction.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa beyond the impact estimated by the Legislative Services Agency for 2020 Iowa Acts, House File 2372, sections 1 and 2, and 2020 Iowa Acts, House File 2585, section 35. 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. Public Comment    Any interested person may submit written comments concerning this proposed rule making or may submit a written request to make an oral presentation at a public hearing. Written comments or requests to present oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on October 13, 2020. Comments should be directed to: Tracy George Department of Transportation DOT Rules Administrator, Strategic Communications and Policy Bureau 800 Lincoln Way Ames, Iowa 50010 Email: tracy.george@iowadot.usPublic Hearing     If requested, a public hearing to hear oral presentations will be held on October 15, 2020, via conference call from 10 to 11 a.m. Persons who wish to participate in the conference call should contact Tracy George before 4:30 p.m. on October 13, 2020, to facilitate an orderly hearing. A conference call number will be provided to participants prior to the hearing.     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.     Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact Tracy George, the Department’s rules administrator, and advise of specific needs. The public hearing will be canceled without further notice if no oral presentation is requested. 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 605.5(7) as follows:    605.5(7) Voluntary markings.  Upon the request of the licensee, the department shall indicate on the driver’s license any of the following:    a.    The presence of a medical condition.    b.    That the licensee is a donor under the uniform anatomical gift law.    c.    That the licensee has in effect a medical advance directive.    d.    That the licensee ishard of hearing impaired or deaf.    e.    That the licensee is a veteran.    (1)   To be eligible for a veteran designation, the licensee must be an honorably discharged veteran of the armed forces of the United States, the national guard or reserve forces. A licensee who requests a veteran designation shall submit Form 432035, properly completed by the licensee and a designee of the Iowa department of veterans affairs, or the licensee shall present certification of release or discharge from active duty, DD form 214, to the department indicating that the licensee was honorably discharged from active duty. A licensee who was a member of the national guard or reserve forces and who applies directly to the department must present a DD form 214 which indicates that the licensee was honorably discharged after serving for at least a minimum aggregate (total) of 90 days of active duty service for purposes other than training. A licensee who was a member of the national guard or reserve forces and who has a discharge document other than a DD form 214 must have the licensee’s eligibility for a veteran designation determined by a designee of the Iowa department of veterans affairs and shall apply to the department for a veteran designation by submitting Form 432035, properly completed by the licensee and a designee of the Iowa department of veterans affairs.    (2)   The department may consult with and defer to the Iowa department of veterans affairs regarding what constitutes a properly completed DD form 214 and veteran status in general.    (3)   If the department denies issuance of a license with a veteran designation upon presentation of the DD form 214 to the department, the licensee may obtain a license with a veteran designation if the licensee submits Form 432035, properly completed by the licensee and a designee of the Iowa department of veterans affairs.    (4)   If the department issues a veteran designation in error or as the result of fraud on the part of the licensee, the driver’s license with a veteran designation shall be canceled, and a duplicate license without the designation may be issued to the licensee. There shall be no charge to issue a duplicate license if the license was issued in error, unless the error was the result of fraud on the part of the licensee.    f.    That the licensee has autism spectrum disorder.

    ITEM 2.    Amend rule 761—605.5(321), implementation sentence, as follows:       This rule is intended to implement Iowa Code sectionssection 142C.3 andsection 321.189,as amended by 2020 Iowa Acts, House File 2372, section 1; the REAL ID Act of 2005 (49 U.S.C. Section 30301 note), and; 6 CFR Part 37; and 2020 Iowa Acts, House File 2585, section 35.

    ITEM 3.    Amend rule 761—605.10(321) as follows:

761—605.10(321) Fees for driver’s licenses.  Fees for driver’s licenses are specified in Iowa Code section 321.191. A license fee may be paid by cash, check, credit card, debit card or money order. If payment is by check, the following requirements apply:    605.10(1)   TheIf the payment is by check, the check shall be for the exact amount of the fee and shall be payable to: Treasurer, State of Iowa. An exception may be made when a traveler’s check is presented.    605.10(2)   One checkpayment method may be used to pay fees for several persons, such as members of a family or employees of a business firm. One checkpayment method may pay all fees involved, such as the license fee and the reinstatement fee.       This rule is intended to implement Iowa Code section 321.191.

    ITEM 4.    Amend subrule 630.2(4) as follows:    630.2(4)   Upon the request of the cardholder, the department shall indicate on the nonoperator’s identification card any of the following:    a.    The presence of a medical condition.    b.    That the cardholder is a donor under the uniform anatomical gift law.    c.    That the cardholder has in effect a medical advance directive.    d.    That the cardholder ishard of hearing impaired or deaf.    e.    That the cardholder is a veteran.     (1)   To be eligible for a veteran designation, the cardholder must be an honorably discharged veteran of the armed forces of the United States, the national guard or reserve forces. A cardholder who requests a veteran designation shall submit Form 432035, properly completed by the cardholder and a designee of the Iowa department of veterans affairs, or the cardholder shall present certification of release or discharge from active duty, DD form 214, to the department indicating that the cardholder was honorably discharged from active duty. A cardholder who was a member of the national guard or reserve forces and who applies directly to the department must present a DD form 214 which indicates that the cardholder was honorably discharged after serving for at least a minimum aggregate (total) of 90 days of active duty service for purposes other than training. A cardholder who was a member of the national guard or reserve forces and who has a discharge document other than a DD form 214 must have the cardholder’s eligibility for a veteran designation determined by a designee of the Iowa department of veterans affairs and shall apply to the department for a veteran designation by submitting Form 432035, properly completed by the cardholder and a designee of the Iowa department of veterans affairs.    (2)   The department may consult with and defer to the Iowa department of veterans affairs regarding what constitutes a properly completed DD form 214 and veteran status in general.     (3)   If the department denies issuance of a nonoperator’s identification card with a veteran designation upon presentation of the DD form 214 to the department, the cardholder may obtain a card with a veteran designation if the cardholder submits Form 432035, properly completed by the cardholder and a designee of the Iowa department of veterans affairs.    (4)   If the department issues a veteran designation in error or as the result of fraud on the part of the cardholder, the nonoperator’s identification card with a veteran designation shall be canceled, and a duplicate card without the designation may be issued to the cardholder. There shall be no charge to issue a duplicate card if the card was issued in error, unless the error was the result of fraud on the part of the cardholder.    f.    That the cardholder has autism spectrum disorder.

    ITEM 5.    Amend 761—Chapter 630, implementation sentence, as follows:       These rules are intended to implement Iowa Code sections 321.13, 321.189, 321.190as amended by 2020 Iowa Acts, House File 2372, section 2, 321.195, 321.216, 321.216A, 321.216B and 321.216C,; the REAL ID Act of 2005 (49 U.S.C. Section 30301 note), and; 6 CFR Part 37; and 2020 Iowa Acts, House File 2585, section 35.
ARC 5191CAlcoholic Beverages Division[185]Adopted and Filed

Rule making related to the filling and sale of beer and wine “growlers”

    The Alcoholic Beverages Division hereby amends Chapter 4, “Liquor Licenses—Beer Permits—Wine Permits,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 123.10 and 2020 Iowa Acts, House File 2540.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 123.123, 123.131, 123.132, 123.172 and 123.178 to 123.178B and 2020 Iowa Acts, House File 2540.Purpose and Summary    This rule making is required due to enactment of 2020 Iowa Acts, House File 2540. This rule making adopts a new rule establishing how a container other than the original container, otherwise known as a “growler,” shall be filled with wine or native wine, shall be properly sealed so as to not be considered an open container under Iowa Code sections 321.284 and 321.284A, and shall be sold by class “C” liquor licensees; class “B,” class “B” native, and class “C” native wine permittees; and the licensee’s or permittee’s employees.    This rule making also amends rule 185—4.6(123), which establishes the requirements for the filling and sale of beer growlers, to remove the restriction that beer growlers must be sold via an in-person sale by class “B,” class “C,” and special class “C” liquor control licensees; class “B” beer permittees; and the licensee’s or permittee’s employees. Other nonsubstantive changes to the rule are also adopted.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on July 29, 2020, as ARC 5111C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Administrator, with the approval of the Alcoholic Beverages Commission, on September 2, 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 application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Division for a waiver of the discretionary provisions, if any, pursuant to 185—Chapter 19.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on October 28, 2020.    The following rule-making actions are adopted:

    ITEM 1.    Amend rule 185—4.6(123) as follows:

185—4.6(123) Filling and selling of beer in a container other than the original container.  LiquorClass “B,” class “C,” and special class “C” liquor control license holderslicensees, class “B” and class “C” beer permit holderspermittees, and theirthe licensee’s or permittee’s employees may fill, refill, and sell beer in a container other than the original container, otherwise known as a growler, subject to the requirements and restrictions provided in Iowa Code sectionssection123.131andas amended by 2020 Iowa Acts, House File 2540, section 14; Iowa Code section 123.132; and in this rule.    4.6(1)  Definitions.          "Beer," for the purposepurposes of this rule, means “beer” as defined in Iowa Code section 123.3(7) and “high alcoholic content beer” as defined in Iowa Code section 123.3(19)123.3(22).        "Growler," for the purposepurposes of this rule, means any fillable and sealable glass, ceramic, plastic, aluminum, or stainless steel container designed to hold only beer or high alcoholic content beer.        "Original container," for the purposepurposes of this rule, means a vessel containing beer that has been lawfully obtained and has been securely capped, sealed, or corked at the location of manufacture. For special class “A” beer permit holders, an “original container” includes a tank used for storing and serving beer.    4.6(2) Sales criteria and restrictions.  All sales made pursuant to this rule shall be made in person. Beer packaged and sold pursuant to this rule shall not be delivered or direct-shipped to consumers.    4.(3) 4.6(2) Filling and refilling requirements.      a.    A growler shall have the capacity to hold no more than 72 ounces.    b.    A growler shall be filled or refilled only by the licensee or permittee or the licensee’s or permittee’s employees who are 18 years of age or older.    c.    A growler shall be filled or refilled only on demand by a consumer at the time of the in-person sale.    d.    A growler shall be filled or refilled only with beer from the original container procured from a duly licensed wholesalerclass “A” beer permittee unless the beer being used to fill or refill a growler on the premises of a special class “A” beer permit holder was manufactured by that special class “A” beer permit holder on the permitted premises.    e.    A retailer may exchange a growler to be filled or refilled, provided the exchange occurs at the time of the in-person sale.    f.    The filling or refilling of a growler shall at all times be conducted in compliance with applicable state and federal food safety statutes and regulations.    4.(4) 4.6(3) Sealing requirements.  A filled or refilled growler shall be securely sealed at the time of the sale by the licensee or permittee or the licensee’s or permittee’s employees in the following manner:    a.    A growler shall bear a cap, lid, stopper, or plug.    b.    A plastic heat shrink wrap band, strip, or sleeve shall extend around the cap or lid or over the stopper or plug to form a seal that must be broken upon the opening of the growler. A lid permanently affixed with a can seamer shall not require a plastic heat shrink wrap band, strip, or sleeve.    c.    The heat shrink wrap seal shall be so secure that it is visibly apparent when the seal on a growler has been tampered with or a sealed growler has otherwise been reopened.    d.    A growler shall not be deemed an open container, subject to the requirements of Iowa Code sections 321.284 and 321.284A, provided the sealed growler is unopened and the seal has not been tampered with and the contents of the growler have not been partially removed.    4.(5) 4.6(4) Restrictions.      a.    Beer shall only be consumed on the premises of a class “C” beer permit holder for a tasting in accordance with rule 185—16.7(123).    b.    a.    A growler shall not be filled in advance of a sale.    c.    b.    A growler filled pursuant to this rule shall not be delivered or direct-shipped to a consumer.    d.    c.    A growler filled pursuant to this rule shall not be sold or otherwise distributed to a retailer.    e.    d.    A licensee or permittee or a licensee’s or permittee’s employees shall not allow a consumer to fill or refill a growler.    f.    e.    The filling, refilling and selling of a growler shall be limited to the hours in which beeralcoholic beverages may be legally sold.    g.    f.    A filled or refilled growler shall not be sold to any consumer who is under legal age, intoxicated, or simulating intoxication.     h.    g.    An original container shall only be opened on the premises of a class “C” beer permit holderpermittee for the limited purposes of filling or refilling a growler as provided in this rule, or for a tasting in accordance with rule 185—16.7(123).    h.    A class “C” beer permittee shall only fill a growler at the time of an in-person sale.    4.(6) 4.6(5) Violations.  Failure to comply with the requirements and restrictions of this rule shall subject the licensee or permittee to the penalty provisions provided in Iowa Code chapter 123.       This rule is intended to implement Iowa Code sections 123.123, 123.131, and 123.132.

    ITEM 2.    Adopt the following new rule 185—4.11(123):

185—4.11(123) Filling and selling of wine and native wine in a container other than the original container.  Class “C” liquor control licensees; class “B,” class “B” native, and class “C” native wine permittees; and the licensee’s or permittee’s employees may fill, refill, and sell wine or native wine in a container other than the original container, otherwise known as a growler, subject to the requirements and restrictions provided in Iowa Code sections 123.178, 123.178A, and 123.178B as amended by 2020 Iowa Acts, House File 2540, sections 4, 5, 6, 7, 8, and 9, and in this rule.    4.11(1) Definitions.          "Growler," for the purposes of this rule, means any fillable and sealable glass, ceramic, plastic, aluminum, or stainless steel container designed to hold wine or native wine.        "Native wine," for the purposes of this rule, means wine manufactured in Iowa by fermentation of fruit, vegetables, dandelions, clover, honey, or any combination of these ingredients by a class “A” wine permittee.        "Original container," for the purposes of this rule, means a vessel containing wine or native wine that has been lawfully obtained and has been securely capped, sealed, or corked at the location of manufacture.        "Wine," for the purposes of this rule, means “wine” as defined in Iowa Code section 123.3(54).    4.11(2) Filling and refilling requirements.      a.    A growler shall have the capacity to hold no more than 72 ounces.    b.    A growler shall be filled or refilled only by the licensee or permittee or the licensee’s or permittee’s employees who are 18 years of age or older.    c.    A growler shall be filled or refilled only on demand by a consumer at the time of the sale.    d.    A growler shall be filled or refilled only with wine or native wine from the original container procured from a class “A” wine permittee.    e.    Class “B” native and class “C” native wine permittees shall fill a growler with only native wine.    f.    A retailer may exchange a growler to be filled or refilled.    g.    The filling or refilling of a growler shall at all times be conducted in compliance with applicable state and federal food safety statutes and regulations.    4.11(3) Sealing requirements.  A filled or refilled growler shall be securely sealed at the time of the sale by the licensee or permittee or the licensee’s or permittee’s employees in the following manner:    a.    A growler shall bear a cap, lid, stopper, or plug.    b.    A plastic heat shrink wrap band, strip, or sleeve shall extend around the cap or lid or over the stopper or plug to form a seal that must be broken upon the opening of the growler. A lid permanently affixed with a can seamer shall not require a plastic heat shrink wrap band, strip, or sleeve.    c.    The heat shrink wrap seal shall be so secure that it is visibly apparent when the seal on a growler has been tampered with or a sealed growler has otherwise been reopened.    d.    A growler shall not be deemed an open container, subject to the requirements of Iowa Code sections 321.284 and 321.284A, provided the sealed growler is unopened and the seal has not been tampered with and the contents of the growler have not been partially removed.    4.11(4) Restrictions.      a.    A growler shall not be filled in advance of a sale.    b.    A growler filled pursuant to this rule shall not be delivered or direct-shipped to a consumer.    c.    A growler filled pursuant to this rule shall not be sold or otherwise distributed to a retailer.    d.    A licensee or permittee or a licensee’s or permittee’s employees shall not allow a consumer to fill or refill a growler.    e.    The filling, refilling, and selling of a growler shall be limited to the hours in which alcoholic beverages may be legally sold.    f.    A filled or refilled growler shall not be sold to any consumer who is under legal age, intoxicated, or simulating intoxication.    g.    An original container shall only be opened on the premises of a class “B” or class “B” native wine permittee for the limited purposes of filling or refilling a growler as provided in this rule, or for a tasting in accordance with rule 185—16.7(123).    4.11(5) Violations.  Failure to comply with the requirements and restrictions of this rule shall subject the licensee or permittee to the penalty provisions provided in Iowa Code chapter 123.       This rule is intended to implement Iowa Code sections 123.172, 123.178, 123.178A, and 123.178B.
    [Filed 9/3/20, effective 10/28/20][Published 9/23/20]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/23/20.
ARC 5192CAlcoholic Beverages Division[185]Adopted and Filed

Rule making related to Iowa Code reference changes

    The Alcoholic Beverages Division hereby amends Chapter 9, “Personal Importation of Alcoholic Liquor, Wine, and Beer,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 123.10.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 123.10.Purpose and Summary    These amendments make nonsubstantive changes to Chapter 9 due to the enactment of 2019 Iowa Acts, Senate File 618. The amendments remove references to 2018 Iowa Acts, Senate File 2347, and insert references to the applicable Iowa Code sections. These amendments also update the chapter’s statutory implementation references.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on July 15, 2020, as ARC 5078C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Administrator, with the approval of the Alcoholic Beverages Commission, on September 2, 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    Granting or denying a request for the issuance of a waiver pursuant to Chapter 9 is final agency action under Iowa Code chapter 17A. Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Division for a waiver of the discretionary provisions, if any, pursuant to 185—Chapter 19.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on October 28, 2020.    The following rule-making actions are adopted:

    ITEM 1.    Amend rule 185—9.1(123) as follows:

185—9.1(123) Tax liability.  The division makes no judgment or decision regarding any tax liability resulting from the personal importation of alcoholic liquor, wine, or beer as provided in Iowa Code section 123.10,as amended by 2018 Iowa Acts, Senate File 2347, section 1; Iowa Code section123.22,as amended by 2018 Iowa Acts, Senate File 2347, section 2; Iowa Code section123.171,as amended by 2018 Iowa Acts, Senate File 2347, section 5; or 2018 Iowa Acts, Senate File 2347, section 4123.122, as applicable.

    ITEM 2.    Amend rule 185—9.2(123), introductory paragraph, as follows:

185—9.2(123) Personal importation in excess of the amounts provided—waiver.  The administrator may provide for the issuance of a waiver for an individual of legal age desiring to import alcoholic liquor, wine, or beer in excess of the amounts provided in Iowa Code section 123.22,as amended by 2018 Iowa Acts, Senate File 2347, section 2; Iowa Code section123.171,as amended by 2018 Iowa Acts, Senate File 2347, section 5; or 2018 Iowa Acts, Senate File 2347, section 4123.122. The decision on whether the circumstances justify the issuance of a waiver shall be made at the discretion of the administrator upon consideration of all the relevant factors.

    ITEM 3.    Amend subrule 9.2(3) as follows:    9.2(3) Request.  All requests for a waiver to import alcoholic liquor, wine, or beer in excess of the amount provided in Iowa Code section 123.22,as amended by 2018 Iowa Acts, Senate File 2347, section 2; Iowa Code section123.171,as amended by 2018 Iowa Acts, Senate File 2347, section 5; or 2018 Iowa Acts, Senate File 2347, section 4,123.122 shall be submitted in writing by completing a request for import authorization form and returning it to the division, as instructed.

    ITEM 4.    Amend subrule 9.2(9) as follows:    9.2(9) Ruling.  A letter granting or denying a request for a waiver to import alcoholic liquor, wine, or beer in excess of the amount provided in Iowa Code section 123.22,as amended by 2018 Iowa Acts, Senate File 2347, section 2; Iowa Code section123.171,as amended by 2018 Iowa Acts, Senate File 2347, section 5; or 2018 Iowa Acts, Senate File 2347, section 4,123.122 shall be in writing and shall contain a description of the precise scope and duration of the waiver if one is issued.

    ITEM 5.    Amend subrule 9.2(13) as follows:    9.2(13) Violations.  Violation of a condition in a waiver is equivalent to a violation of Iowa Code section 123.10,as amended by 2018 Iowa Acts, Senate File 2347, section 1; Iowa Code section123.22,as amended by 2018 Iowa Acts, Senate File 2347, section 2; Iowa Code section123.171,as amended by 2018 Iowa Acts, Senate File 2347, section 5; or 2018 Iowa Acts, Senate File 2347, section 4,123.122, as applicable. The recipient of a waiver under this rule who violates a condition of the waiver may be subject to the same remedies or penalties as a person who violates the applicable Iowa Code or Iowa Acts section.

    ITEM 6.    Amend 185—Chapter 9, implementation sentence, as follows:       These rules are intended to implement 2018 Iowa Acts, Senate File 2347, section 4, and Iowa Code sections 123.10, 123.22, 123.59, 123.122, and 123.171as amended by 2018 Iowa Acts, Senate File 2347.    [Filed 9/3/20, effective 10/28/20][Published 9/23/20]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/23/20.
ARC 5186CHomeland Security and Emergency Management Department[605]Adopted and Filed

Rule making related to recovery and mitigation plans

    The Homeland Security and Emergency Management Department hereby amends Chapter 7, “Local Emergency Management,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code chapter 17A and section 29C.9(8).State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 29C.6 and 2020 Iowa Acts, Senate File 2188.Purpose and Summary    This amendment seeks to alleviate a burdensome local requirement to update recovery and mitigation plans in order for local government to receive federal disaster or hazard mitigation funding.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on July 15, 2020, as ARC 5085C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Director on September 1, 2020.Fiscal Impact    The fiscal impact to the State is determined upon the number of federally approved applications.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on October 28, 2020.    The following rule-making action is adopted:

    ITEM 1.    Amend paragraph 7.3(4)"d" as follows:    d.    Planning.    (1)   The commission shall develop a comprehensive emergency plan that is capabilities-based, multihazard and multifunctional in nature. The plan shall conform to the Comprehensive Preparedness Guide 101 as established by the Federal Emergency Management Agency.    (2)   Plans shall contain the following common elements:
  1. Identification of the functional roles and responsibilities of internal and external agencies, organizations, departments, and individuals during mitigation, preparedness, response and recovery.
  2. Establishment and identification of lines of authority for those agencies, organizations, departments, and individuals.
    (3)   Plans shall be regularly reviewed and amended as appropriate in accordance with a five-year schedule established by the commission, which shall include, at a minimum:1A, a complete review, and amendment as appropriate, at a minimum of every five years. However, a review, and amendment as appropriate, of the hazardous materials portion and of a minimum of 20 percent of the remaining annexes or portions of the plan shall be conducted on a yearly basis. The complete operations plan must be reviewed entirely, and amended as appropriate, every five years. A copy of the portions of the plan that are reviewed, regardless of amendment, must be certified and submitted to the department for approval by August 1 of each year.
  1. Recovery and mitigation plans must also be reviewed, and amended as appropriate, certified and submitted to the department for approval within 180 days of the formal closing of the disaster incident period for a presidential declaration for major disaster.
    (4)   To be certified, the plan must be adopted by the members of the commission and attested to by the chairperson and the local emergency management coordinator on a signature document as specified by the department.    (5)   In addition to the standards heretofore established in paragraph 7.3(4)“d,” the operations plan shall include provisions for damage assessment.    (6)   Hazardous materials plans shall meet the minimum requirements of federal law, 42 U.S.C. §11003.    (7)   Counties designated as risk or host counties for a nuclear facility emergency planning zone shall meet the standards and requirements as published by the United States Nuclear Regulatory Commission and the Federal Emergency Management Agency in NUREG-0654, FEMA-REP-1, Rev. 1, March 1987.    (8)   Commissions participating in or conducting exercises or experiencing real disaster incidents which require after-action and corrective action reports have 180 days from the date of the publication of the corrective action report to incorporate the corrective actions, as appropriate, into the commission’s plans.    (9)   Within 60 calendar days from the receipt of the plan, the department shall review plans or portions of plans submitted by a commission for approval. The department shall notify the local emergency management agency in writing of the approval or nonapproval of the plan. If the plan is not approved, the department shall state the specific standard or standards that are not being met and offer guidance on how the plan may be brought into compliance.    (10)   A comprehensive emergency plan shall not be considered approved by the homeland security and emergency management department as required in Iowa Code subsection 29C.9(8) unless such plan adheres to and meets the minimum standards as established in paragraph 7.3(4)“d.”    (11)   Iowa Code section 29C.6 provides that state participation in funding financial assistance in a presidentially declared disaster is contingent upon the commission’s having on file a state-approved, comprehensive emergency plan as provided in Iowa Code subsectionsection29C.9(8). Plans must be received by the department within 180 days of the formal closing of the disaster incident period for a presidential declaration for major disaster for the affected jurisdiction and must be approved by the department within 240 days of the formal closing of the disaster incident period for public or private nonprofit entities within the county to be eligible to receive state financial assistance.    (12)   Iowa Code section 29C.7 as enacted by 2020 Iowa Acts, Senate File 2188, provides that state participation in funding financial assistance in a non-presidentially declared disaster is contingent upon the commission’s having on file a state-approved, comprehensive emergency plan as provided in Iowa Code section 29C.9(8).
    [Filed 9/1/20, effective 10/28/20][Published 9/23/20]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/23/20.
ARC 5187CInspections and Appeals Department[481]Adopted and Filed

Rule making related to licensing sanctions

    The Inspections and Appeals Department hereby amends Chapter 8, “Licensing Actions for Nonpayment of Child Support and Student Loan Default/Noncompliance with Agreement for Payment of Obligation,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 10A.104.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 272C.4(10).Purpose and Summary    These amendments implement changes made to Iowa Code section 272C.4(10) resulting from the enactment of 2019 Iowa Acts, Senate File 304. The legislation required the Department to adopt rules to prohibit the suspension or revocation of a license issued to a person who is in default or is delinquent on repayment or a service obligation under federal or state postsecondary educational loans or public or private services-conditional postsecondary tuition assistance solely on the basis of such default or delinquency.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on July 29, 2020, as ARC 5106C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Department on September 2, 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 application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 481—Chapter 6.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on October 28, 2020.    The following rule-making actions are adopted:

    ITEM 1.    Amend 481—Chapter 8, title, as follows:LICENSING ACTIONSACTION FOR NONPAYMENT OF CHILD SUPPORT ANDPROHIBITION OF LICENSING ACTION FOR STUDENT LOAN DEFAULT/NONCOMPLIANCE WITH AGREEMENT FOR PAYMENT OF OBLIGATION

    ITEM 2.    Amend 481—8.1(252J), implementation sentence, as follows:       These rules areThis rule is intended to implement Iowa Code chapter 252J.

    ITEM 3.    Rescind rule 481—8.2(261) and adopt the following new rule in lieu thereof:

481—8.2(272C) Licensing actions against individuals who default or are delinquent on student loan debt or on a related service obligation prohibited.  The department shall not deny the issuance or renewal of a license or suspend or revoke a license to a person who is in default or is delinquent on repayment or a service obligation under federal or state postsecondary educational loans or public or private services-conditional postsecondary tuition assistance solely on the basis of such default or delinquency.       This rule is intended to implement Iowa Code section 272C.4.

    ITEM 4.    Rescind and reserve rule 481—8.3(261).

    ITEM 5.    Rescind 481—Chapter 8, implementation sentence.    [Filed 9/2/20, effective 10/28/20][Published 9/23/20]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/23/20.
ARC 5197CInsurance Division[191]Adopted and Filed

Rule making related to contested case proceedings

    The Insurance Division hereby amends Chapter 3, “Contested Cases,” and Chapter 4, “Agency Procedure for Rule Making, Waiver of Rules, and Declaratory Orders,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 505.8 and 507B.12.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapters 17A and 507B.Purpose and Summary    These amendments are a result of the Division’s review of rules. These amendments update Chapter 3 by removing unnecessary language, removing duplicative definitions, clarifying procedures, reflecting current practices, allowing for electronic processes, and more closely aligning some procedures to other agencies and the Iowa Rules of Civil Procedure.    Rule 191—3.11(17A), regarding pleadings for intervention, is rescinded and reserved, and a new rule regarding pleadings for intervention in declaratory actions is adopted.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on July 29, 2020, as ARC 5109C. A public hearing was held on August 25, 2020, at 11 a.m. via conference call. No one attended the public hearing. No public comments were received. One change from the Notice has been made to update an incorrect Iowa Code citation.Adoption of Rule Making    This rule making was adopted by Douglas M. Ommen, Iowa Insurance Commissioner, on September 2, 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    The Division’s general waiver provisions of 191—Chapter 4 apply to these rules.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on October 28, 2020.    The following rule-making actions are adopted:

    ITEM 1.    Amend rule 191—3.2(17A) as follows:

191—3.2(17A) Definitions.  ExceptIn addition to the definitions in rule 191—1.1(502,505), and except where otherwise specifically defined by law or the context otherwise requires, the following definitions apply:        "Commissioner" means the commissioner of insurance or the commissioner’s designee.        "Contested case" means a proceeding defined by Iowa Code section 17A.2(5), and includes any matter defined as a no factual dispute contested case under 1998 Iowa Acts, chapter 1202, section 14Iowa Code section 17A.10A.        "File,” “filed," "filing," when used as a verb, means the actions set forth in subrules 3.12(3) and 3.12(4), except otherwise specifically defined by law. “Filing,” when used as a noun, means the documents filed.        "Issuance" means the date of mailing of a decision or order orthe date of delivery if service is by other means, unless another date is specified in the order.        "License" means the whole or a part of any permit, certificate, approval, registration, charter or similar form of permission required by statute.        "Licensee" means a person or entity to whom the division has issued a license.        "Party" means each person or agency named or admitted as a party or properly seeking and entitled as of right to be admitted as a partythe same as defined in Iowa Code section 17A.2.        "Person" means the same as defined in Iowa Code section 17A.2.        "Presiding officer" means the commissioner, the commissioner’s designee or an administrative law judge from the department of inspections and appeals.        "Proposed decision" means the administrative law judge’sor the commissioner’s designee’s recommended findings of fact, conclusions of law, decision, and order in a contested case in which the commissioner did not preside.        "Provision of law" means the same as defined in Iowa Code section 17A.2.

    ITEM 2.    Amend rules 191—3.4(17A) to 191—3.9(17A) as follows:

191—3.4(17A) Requests for contested case proceeding.  Any person claiming an entitlement to a contested case proceeding shall file a written request for such a proceeding within the time specified by the particular rules or statutes governing the subject matter or, in the absence of such law, the time specified in the agencydivision action in question. The request shall be filed with the insurance division, at the address disclosed in rule 191—1.4(502,505).The request for a contested case proceeding shall state the name and address of the requester,; identify the specific agencydivision action which is disputedif applicable; include a short and plain statement of the issues of material fact in dispute; and, where the requester is represented by a lawyer, identify the provisions of law or precedent requiring or authorizing a contested case proceeding in the particular circumstances involved, and shall include a short and plain statement of the issues of material fact in dispute.

191—3.5(17A,507B) Commencement of hearing;service; delivery; noticeof hearing; answer.      3.5(1) Service and delivery of the notice of hearing.      a.    Commencement of hearing.Delivery of the notice of hearingreferred to in this rule constitutes commencement of the contested case proceeding.     b.    Delivery of the notice of hearing.Delivery shall be accomplished in the manner described belowby personal service as provided in the Iowa Rules of Civil Procedure or by certified mail, return receipt requested, at least 15 days before the hearing date unless the parties agree to a shorter time period, or unless otherwise provided by statute.    a.    For nonlicensed persons, delivery may be accomplished by:    (1)   Personal service as provided in the Iowa Rules of Civil Procedure; or     (2)   Certified mail, return receipt requested; or    (3)   First-class mail; or    (4)   Publication, as provided in the Iowa Rules of Civil Procedure.    b.    For licensees, delivery shall be executed by:    (1)   Personal service as provided in the Iowa Rules of Civil Procedure; or    (2)   Restricted certified mail.Proof of delivery by mail is the same as proof of mailing specified in subrule 3.12(5).    c.    Consent to service upon the commissioner.Certain persons regulated by the division have an obligation to keep their contact information, including their mailing address, current. For such persons who have consented in writing to have the commissioner accept service of process on their behalf, delivery of the notice of hearing referred to in this rule is accomplished at the time the notice of hearing is signed by the commissioner, unless otherwise provided by law.    3.5(2) Notice of hearing.  The notice of hearing shall be prepared in the form of an order and contain the following informationin the notice of hearing or accompanying charging document:    a.    A statement of the time, place, and nature of the hearing;    b.    A statement of the legal authority and jurisdiction under which the hearing is to be held;    c.    A reference to the particular sections of the statutes and rules involved;    d.    A short and plain statement of the matters asserted. If the insurance division or other party is unable to state the matters in detail at the time the notice is served, the initial notice may be limited to a statement of the issues involved. Thereafter, upon written application, a more definite and detailed statement shall be furnished;    e.    Identification of all parties including the name, address and telephone number of the person who will act as advocate for the division and of parties’ counsel where known;    f.    Reference to the procedural rules governing conduct of the contested case proceeding;    g.    Reference to the procedural rules governing informal settlement;    h.    Identification of the presiding officer and address, if known. If not known, ageneral description ofthe type of person who generally will serve as presiding officer; and    i.    Notification of the time period in which a party may request, under 1998 Iowa Acts, chapter 1202, section 15(1), and rule 191—3.6(17A), that the presiding officer be an administrative law judge.;    j.    Notification that failure to file an answer within 20 days of service may result in default.pursuant to rule 191—3.22(17A); and    k.    Reference to the procedural rules governing discovery.    3.5(3) Answer.  An answer shall be filed within 20 days of service of the notice of hearing unless otherwise ordered. A party may move to dismiss or apply for a more definite and detailed statementof the matters asserted or charging document when appropriate.    a.    An answer shall show on whose behalf it is filed and specifically admit, deny, or otherwise answer all material allegations of the notice of hearingor accompanying charging document. The answer shall state any facts deemed to show an affirmative defense and contain as many additional defenses as the pleader may claim.    b.    An answer shall state the name, address and telephone number of the person filing the answer, the person or entity on whose behalf it is filed, and the attorney representing that person, if any.    c.    Any allegation in the notice of hearingor accompanying charging document not denied in the answer is considered admitted. The presiding officer may refuse to consider any defense not raised in the answer which could have been raised on the basis of facts known when the answer was filed if any party would be prejudiced.    d.    The answer shall be filed with the division pursuant to rule 191—3.12(17A).    3.5(4) Amendments.  Any notice of hearing or other charging document may be amended before a responsive pleading has been filed. Amendments to a notice of hearing or charging document after a responsive pleading has been filed andamendments to an answer may be allowed with the consent of the other parties or in the discretion of the presiding officer who may impose terms or grant a continuance.    3.5(5) Timing of hearing.  The hearing in a contested case proceeding shall be held within 90 days after the date of the notice of hearing, subject to the provisions of rule 3.17(17A)commencement of the contested case unless a continuance is granted by the presiding officer.

191—3.6(17A) Presiding officer.      3.6(1)   If the presiding officer is not an administrative law judge, any party wishing to request that the presiding officer assigned to render a proposed decision be an administrative law judge employed by the department of inspections and appeals must file a written request with the insurance division within 20 days after service of a notice of hearing identifying or describing the presiding officer as the commissioner or members of the commissioner’s staffdesignee.    3.6(2)   The commissioner may deny the request only upon a finding that one or more of the following apply:    a.    Neither the commissioner nor any designee under whose authority the contested case is to take place is a named party to the proceeding or a real party in interest to that proceeding.    b.    There is a compelling need to expedite issuance of a final decision in order to protect the public health, safety, or welfare.    c.    An administrative law judge with the qualifications identified in subrule 3.6(4) is unavailable to hear the case within a reasonable time.    d.    The case involves significant policy issues of first impression that are inextricably intertwined with the factual issues presented.    e.    The demeanor of the witnesses is likely to be dispositive in resolving the disputed factual issues.    f.    Funds are unavailable to pay the costs of an administrative law judge and an interagency appeal.    g.    The request was not timely filed.    h.    The request is not consistent with a specified statute.    i.    A statute requires the commissioner or designee to serve as presiding officer.    j.    The contested case arises from matters asserted pursuant to Iowa Code chapterschapter 507A, 507B, 508B, 515G andor 521A.    3.6(3)   The commissioner or designee shall issue a written ruling specifying the grounds for its decision within 20 days after a request for an administrative law judge is filed. If the ruling is contingent upon the availability of an administrative law judge with the qualifications identified in subrule 3.6(4), the parties shall be notified at least ten days prior to hearing if a qualified administrative law judge will not be available.    3.6(4)   An administrative law judge assigned to act as presiding officer in insurance and securities matters shall be admitted to practice law before the courts of the state of Iowa.    3.6(5)   Except as provided otherwiseprovided by another provision of law, all rulings by an administrative law judge acting as presiding officer are subject to appeal to the commissioner. A party must seek any available intra-agency appeal in order to exhaust adequate administrative remedies.

191—3.7(17A) Waiver of procedures.  Unless otherwise precluded by law, the parties in a contested case proceeding may waive any provision of this chapter. However, the insurance division may exercise discretion to refuse to give effect to such a waiver when the waiver is to be inconsistent with the public interest.

191—3.8(17A) Telephone, video, or electronic proceedings.      3.8(1)   The presiding officer may resolve preliminary procedural motions by telephone conference, videoconference or other electronic means in which all parties have been afforded notice and an opportunity to participate.    3.8(2)   The presiding officer may, on the officer’s own motion or as requested by a party, order hearings or argument to be held by telephone conference, videoconference or other electronic means in which all parties have an opportunity to participate. Any party may call witnesses by telephoneconference, videoconference or other electronic means, with 14 days’ advance notice to all parties and the presiding officer. Failure of a party to make timely disclosure may result in the disallowance of testimony by telephoneconference, videoconference or other electronic means.

191—3.9(17A) Disqualification.      3.9(1)   A presiding officer or other person shall withdraw from participation in the making of any proposed or final decision in a contested case if that person:    a.    Has a personal bias or prejudice concerning a party or a representative of a party;    b.    Has personally investigated, prosecuted or advocated in connection with that case, the specific controversy underlying that case, another factually related contested case with common disputed facts, or a pending controversy with common disputed facts that may culminate in a contested case involving the same parties;    c.    Is subject to the authority, direction or discretion of any person who has personally investigated, prosecuted or advocated in connection with that contested case, the specific controversy underlying that contested case, or a factually related contested case with common disputed facts or controversy involving the same parties;    d.    Has acted as counsel to any person who is a private party to that proceeding within the past two years;    e.    Has a personal financial interest in the outcome of the case or any other significant personal interest that could be substantially affected by the outcome of the case;    f.    Has a spouse or relative within the third degree of relationship that is (1) a party to the case, or an officer, director or trustee of a party; (2) a lawyer in the case; (3) known to have an interest that could be substantially affected by the outcome of the case; or (4) likely to be a material witness in the case; or    g.    Has any other legally sufficient cause to withdraw from participation in the decision making in the case.    3.9(2)   The term “personally investigated” means taking affirmative steps to interview witnesses directly or to obtain documents or other information directly. The term “personally investigated” does not include general direction and supervision of assigned investigators, unsolicited receipt of information which is relayed to assigned investigators, review of another person’s investigative work product in the course of determining whether there is probable cause to initiate a proceeding, or exposure to factual information while performing other agency functions, including fact gathering for purposes other than investigation of the matter which culminates in a contested case. Factual information relevant to the merits of a contested case received by a person who later serves as presiding officer in that case shall be disclosed if required by Iowa Code section 17A.17 as amended by 1998 Iowa Acts, chapter 1202, section 19, and subrules 3.9(3) and 3.23(9).    3.9(3)   In a situation where a presiding officer or other person knows of information which might reasonably be deemed to be a basis for disqualification and decides voluntary withdrawal is unnecessary, that person shall submit the relevant information for the record by affidavit and shall provide for the record a statement of the reasons for the determination that withdrawal is unnecessary.    3.9(4)   To request disqualification of a presiding officer, a party shall file a motion supported by an affidavit pursuant to 1998 Iowa Acts, chapter 1202, section 19(7)Iowa Code section 17A.17(7). The motion shall be filed as soon as practical after the reason alleged in the motion becomes known to the party. If, during the course of the hearing, a party first becomes aware of evidence of bias or other grounds for disqualification, the party may move for disqualification but shall establish the grounds by the introduction of evidence into the record.If the presiding officer determines that disqualification is appropriate, the presiding officer shall withdraw. If the presiding officer determines that withdrawal is not required, the presiding officer shall enter an order to that effect. A party requesting disqualification may seek an interlocutory appeal under rule 191—3.25(17A) and seek a stay under rule 191—3.29(17A).

    ITEM 3.    Rescind and reserve rule 191—3.11(17A).

    ITEM 4.    Amend rules 191—3.12(17A) to 191—3.14(17A) as follows:

191—3.12(17A) Service and filing of pleadings and other papers.      3.12(1) Required service.  Every pleading, motion, document, or other paperthat is filed in a contested case proceeding and every paper relating to discoveryrequest or response in such a proceeding shall be served upon each of the parties of record to the proceeding, including the person designated as advocate or prosecutor for the insurance division, atno later than the time of filing, if filing is required. Except for an application for rehearing as provided in Iowa Code section 17A.16(2), the party filing a document is responsible for service on all parties.    3.12(2) Methods of service.  Service upon a party represented by an attorney shall be made upon the attorneyof record unless otherwise ordered. Service is made by delivering or mailing a copy to the attorney at the attorney’s last-knownmailing address. Service upon an unrepresented party shall be made by delivering or mailing a copy to the party’s last-knownmailing address. Service by mail is complete upon mailing, except where otherwise specifically provided by statute, rule, or order.Service may also be made upon a party or attorney by email if the party or attorney consents in writing to be served in that manner in that case. The party or attorney may consent by providing an email address for service to the other party or by filing a document with the division by email as specified in subrule 3.12(4). The consent may be withdrawn by written notice served on all other parties or attorneys. Service by electronic means is complete upon transmission to the provided email address unless the party making service received an electronic rejection or delivery failure.    3.12(3) Required filing.  After the notice of hearing, all pleadings, motions, documents or other papersand notices of discovery in a contested case proceeding shall be filed with the presiding officerdivision’s designated filing clerk.If a contested case is assigned to an administrative law judge with the department of inspections and appeals, filing shall be conducted in accordance with the rules of the department of inspections and appeals, unless ordered otherwise.    3.12(4) Methods of filing.  Except where otherwise provided by law, a document is deemed filed at the time it is deliveredhand-delivered to the presiding officerdivision at the address disclosed in rule 191—1.4(502,505) during normal business hours, delivered to an established courier service for immediate delivery to that officeduring normal business hours, or mailed by first-class mail or state interoffice mail to that office, so long as there is proof of mailing, or emailed to the designated filing clerk at enforcement.filings@iid.iowa.gov.    3.12(5) Proof of mailing.  Proof of mailing includes either: a legible United States Postal Service postmark on the envelope, a certificate of service, a notarized affidavit, or a certification in substantially the following form:    I certify under penalty of perjury and pursuant to the laws of Iowa that, on (date of mailing), I mailed copies of (describe document) addressed to the Insurance Division at the address disclosed in 191—1.4(502,505) and to the names and addresses of the parties listed below by depositing the same in (a United States post office mailbox with correct postage properly affixed or state interoffice mail).(Date)(Signature)    3.12(6) Proof of emailing.  The presiding officer, by order, may permit service or filing of particular documents by facsimile or electronic mail or similar electronic means unless such service or filing is precluded by a provision of law. When permitted, service by facsimile, electronic mail or similar electronic means is complete upon transmission. In the absence of such an order, facsimile or electronic transmission does not satisfy service or filing requirements, but may be used to supplement service or filing when rapid notice is needed.Proof of emailing includes a certification in substantially the following form:    I certify under penalty of perjury and pursuant to the laws of Iowa that, on (date of emailing), I emailed copies of (describe document) addressed to the Insurance Division at the email address disclosed in 191—subrule 3.12(4) and to the names and email addresses of the parties listed below by transmitting the same from (sending email address).(Date)(Signature)

191—3.13(17A) Discovery.      3.13(1) Discovery permitted.  Where statutory time limitations permit, discovery may be conducted as permitted by the Iowa Rules of Civil Procedureand these rules. Unless lengthened or shortened by these rules or by order of the presiding officer, time periods for compliance with discovery shall be as provided in the Iowa Rules of Civil Procedure.Discovery shall be conducted in an expedited manner to prevent unnecessary delays to the hearing.    3.13(2) Scope of discovery.  Parties may obtain discovery regarding any matter, not privileged or confidential, which is relevant to the claim or defense of the party in the pending action seeking discovery or to the claim or defense of any other party. Discovery responses are subject to the confidentiality provisions of Iowa Code section 22.7, chapters under the jurisdiction of the commissioner, and rule 191—3.12(17A), in accordance with applicable law, including, but not limited to, Iowa Code sections 17A.13(2) and 522B.11(6), unless otherwise permitted by the presiding officer for good cause shown.    3.13(3) Notice of discovery.  Discovery is only permitted after a party has filed, pursuant to rule 191—3.12(17A), a notice of discovery no later than 15 days after the filing of an answer unless extended by the presiding officer for good cause shown or by agreement of the parties. The notice of discovery shall be a general notice that the party is serving discovery. The notice should include a statement regarding the type of discovery being conducted and the due date but the actual discovery requests do not need to be filed.    3.13(4) Discovery responses.  Parties must respond to discovery within 15 days of receipt unless the parties mutually agree there is good cause to lengthen the response period or by order of the presiding officer. Time periods for compliance with discovery may be lengthened or shortened by order of the presiding officer.    3.13(5) Discovery completion.  All discovery must be completed no later than 30 days before the prehearing conference.    3.(2) 3.13(6) Discovery motions.  Any motion relating to discovery shallmust allege that the moving party has previously made a good-faith attempt to resolve the discovery issues involved with the opposing partyin a timely manner. Motions in regard to discovery shall be ruled upon by the presiding officer. Opposing parties shall be afforded the opportunity to respond within ten days of the filing of theany such motion unless the time is shortened as provided in subrule 3.13(1)3.13(4). The presiding officer may rule on the basis of the written motion and any response, or may order argument on the motion.

191—3.14(17A,505) Subpoenas.      3.14(1)   A subpoena shall be issued by the presiding officer at a party’s request. Such a request must be in writing. In the absence of good cause for permitting later action, a request for a subpoena must be received at least ten days before the scheduled hearing. The request shall include the name, address, and telephone number of the requesting party.    a.    A request for a subpoena must be in writing and submitted to the presiding officer or designated filing clerk by mail, email, or in-person delivery in accordance with the filing requirements of rule 191—3.12(17A).     b.    The request shall include the names of the parties, the case number, the name and address of the requested witness, and a description or list of any documents or other items requested. The request shall also note the nature of the proceeding at which the witness is requested to testify (e.g., deposition, telephone hearing, or in-person hearing), the date and time of the proceeding, whether the witness is requested to appear in person or by telephone, the location of the proceeding, and the method of recording any deposition.     c.    In the absence of good cause for permitting later action, a request for a subpoena must be received at least ten days before the scheduled proceeding.    3.14(2)   Except to the extent otherwise provided by law, parties are responsible for service of their own subpoenas and payment of witness fees and mileage expenses.The requesting party is responsible for arranging service of a subpoena prior to the proceeding at which the testimony is commanded or the time at which the requested documents must be produced. The requesting party is responsible for any cost associated with serving a subpoena and for the payment of witness fees and mileage expenses. Subpoenaed witnesses shall be entitled to receive witness fees for attendance, paid pursuant to Iowa Code section 622.69, and mileage shall be paid for each mile actually traveled for a subpoenaed witness to participate in an in-person hearing or deposition pursuant to Iowa Code section 622.69. Witnesses called to testify only to an opinion founded on special study or experience in any branch of science, or to make scientific or professional examinations and state the result thereof, may receive additional compensation, to be fixed by the presiding officer, with reference to the value of the time employed and the degree of learning or skill required, but such additional compensation shall not exceed the sum set forth in Iowa Code section 622.72.    3.14(3)   The presiding officer may quash or modify a subpoena upon motion as provided in the Iowa Rules of Civil Procedure. A motion to quash or modify a subpoena shall be promptly set for hearing.

    ITEM 5.    Amend subrule 3.15(4) as follows:    3.15(4)   Motions pertaining to the hearing, except motions for summary judgmentand requests for continuances, must be filed and served at least ten days prior to the date of hearing unless there is good cause for permitting later action or the time for such action is lengthened or shortened by an order of the presiding officer.

    ITEM 6.    Amend rule 191—3.16(17A) as follows:

191—3.16(17A) Prehearing conference.      3.16(1)   Any party may request a prehearing conference. A written request for prehearing conference or an order for prehearing conference on the presiding officer’s own motion shall be filed not less than 14 days prior to the hearing date. A prehearing conference shall be scheduled not less than threeseven business days prior to the hearing date.The presiding officer shall give written notice of the prehearing conference to all parties.    3.16(2)   Prehearing conferences shallmay be conducted by telephoneconference or videoconference or in person as stated in the notice of hearing, unless otherwise orderedby the presiding officer.    3.16(3)   Each party shall exchange and receive prior to the prehearing conference:    a.    A final list of the witnesses who the party anticipates will testify at hearing. Witnesses not listed may be excluded from testifying unless there was good cause for failure to include their names; and    b.    A final list of exhibits which the party anticipates will be introduced at hearing. Exhibits other than rebuttal exhibits that are not listed may be excluded from admission into evidence unless there was good cause for failure to include them.    3.16(4)   Witness or exhibit lists may be amended subsequent to the prehearing conference within time limits established by the presiding officer at the prehearing conference.If no time limits are established at the prehearing conference, subsequent amendments to a witness or exhibit list may be allowed with the consent of the other parties or in the discretion of the presiding officer who may impose terms and time limits. Any such amendments must be served on all parties.    3.16(5)   In addition to the requirements of subrule 3.16(3), the parties at a prehearing conference may:    a.    Enter into stipulations of law or fact;    b.    Enter into stipulations on the admissibility of exhibits;    c.    Identify matters which the parties intend to request be officially noticed;    d.    Enter into stipulations for waiver of any provision of law; and    e.    Consider any additional matters which will expedite the hearing.

    ITEM 7.    Amend rule 191—3.19(17A), parenthetical implementation statute, as follows:

191—3.19(17A,507B) Intervention.  

    ITEM 8.    Amend paragraph 3.20(2)"d" as follows:    d.    Each witness shall be sworn or affirmed by the presiding officer,or the court reporter,or a person otherwise authorized by law, and be subject to examination and cross-examination. The presiding officer may limit questioning in a manner consistent with law; and

    ITEM 9.    Amend rule 191—3.21(17A), parenthetical implementation statute, as follows:

191—3.21(17A,507B) Evidence.  

    ITEM 10.    Amend rule 191—3.22(17A) as follows:

191—3.22(17A) Default.      3.22(1)   If a party fails to appear or participate in a contested case proceeding after proper service of noticeas provided in subrule 3.5(1), the presiding officer may, if no adjournment is granted, enter a default decision or proceed with the hearing and render a decision in the absence of the party.    3.22(2)   Where appropriate and not contrary to law, any party may move for default against a party who has requested the contested case proceeding and failed to file a required pleading or has failed to appear after proper service.    3.22(3)   Default decisions or decisions rendered on the merits after a party has failed to appear or participate becomeconstitute final agencydivision action unless,one of the following occurs: (1) the presiding officer otherwise orders, (2) a motion to vacate the default decision is filed within 15 days after the date of notification or mailing of the decision, a motion to vacate is filed and served on all parties or an appeal of a decision on the merits is timely initiated within the time provided by rule 3.27(17A)in accordance with rule 191—3.12(17A), or (3) an appeal to the commissioner of a proposed default decision is filed in accordance with rule 191—3.27(17A). A motion to vacate mustbe filed and served on all parties and state all facts relied upon by the moving party which establish that good cause existed for that party’s failure to appear or participate at the contested case proceeding. Each fact so stated must be substantiated by at least one sworn affidavit of a person with personal knowledge of each such fact, which affidavit(s) must be attached to the motion.    3.22(4)   The time for further appeal of a decision for which a timely motion to vacate has been filed is stayed pending a decision on the motion to vacate.    3.22(5)   Properly substantiated and timely filed motions to vacate shall be granted only for good cause shown.A motion to vacate shall be granted only when it is timely filed, is properly substantiated, and demonstrates good cause for the party’s failure to appear or participate. The burden of proof as to good cause is on the moving party. Adverse parties shall have ten days to respond to a motion to vacate. Adverse parties shall be allowed to conduct discovery as to the issue of good cause and to present evidence on the issue prior to a decision on the motion, if a request to do so is included in that party’s response.    3.22(6)   “Good cause” for purposes of this rule shall have the same meaning as “good cause” for setting aside a default judgment under Iowa Rule of Civil Procedure 1.977.    3.22(7)   A decision denying a motion to vacate is subject to further appeal within the time limit allowed for further appeal of a decision on the merits in the contested case proceeding. A decision granting a motion to vacate is subject to interlocutory appeal by the adverse party pursuant to rule 3.25(17A).    3.22(8)   If a motion to vacate is granted and no timely interlocutory appeal has been taken, the presiding officer shall schedule another hearing on the merits and the contested case shall proceed accordingly.    3.22(9)   A default decision may award any relief consistent with the request for relief made in the petition, notice of hearing, or charging document and embraced in its issues.    3.22(10)   A default decision may provide either that the default decision is to be stayed pending a timely motion to vacate or that the default decision is to take effect immediately, subject to a request for stay under rule 3.29(17A).

    ITEM 11.    Amend subrule 3.23(9) as follows:    3.23(9)   The presiding officer may render a proposed or final decision imposing appropriate sanctions for violations of this rule including default, a decision against the offending party, censure,or suspension or revocation of the privilege to practice before the agencydivision. Violation of ex parte communication prohibitions by agencydivision personnel shall be reported to the first deputy commissioner or designee for possible sanctions including censure, suspension, dismissal or other disciplinary action.

    ITEM 12.    Amend rule 191—3.26(17A) as follows:

191—3.26(17A) Final decision.      3.26(1)   When the commissioner presides over the reception of evidence at the hearing, the commissioner’s decision is a final decision.    3.26(2)   When the commissioner does not preside over the reception of evidence, the presiding officer shall make a proposed decision. The proposed decision becomes the final decision of the agencydivision when adopted by the commissioner or without further proceedingsafter the time provided in rule 191—3.27(17A) unless there is ana timely appeal to, or review on motion of, the commissioner within the time provided in rule 3.27(17A)the commissioner or motion by the division to review the proposed decision.    3.26(3)   The presiding officer’s decision shall specify in bold print either that the decision is final or that the decision shall become final without further proceedingsafter the time provided in rule 191—3.27(17A) unless there is an appeal to, or review on motion of, the commissioner within the time provided in rule 191—3.27(17A).    3.26(4)   Any administrative law judge serving as a presiding officer in a contested case shall report to the commissioner on a monthly basis all matters taken under advisement for longer than 60 days, together with an explanation of the reasons for the delay and an expected date of a proposed decision. A matter shall be reported when all hearings have been completed and the matter awaits decision without further appearance of the parties or their attorneys, even though briefs or transcripts have been ordered but have not yet been filed. The report shall be due on the tenth day of each calendar month for the period ending with the last day of the preceding calendar month. The report shall be signed by the administrative law judge. All reports received will be filed with the Iowa insurance division as records available for public inspection.    3.26(5)   Parties shall be promptly notified of each proposed or final decision or order by delivery to them of a copy of such decision or order in the manner provided by Iowa Code section 17A.12(1) unless the party has consented to an alternative form of delivery.

    ITEM 13.    Amend rule 191—3.27(17A), catchwords, as follows:

191—3.27(17A) Appeals and reviewby the commissioner of proposed decisions.  

    ITEM 14.    Amend subrule 3.27(2) as follows:    3.27(2)   The insurance division may initiate review of a proposed decision on its own motion at any time within 30 days following issuance of such a decision.

    ITEM 15.    Amend subrule 3.28(2) as follows:    3.28(2)   The application for rehearing shall state on whose behalf it is filed, the specific grounds for rehearing, and the relief sought. In addition, the application shall state whether the applicant desires reconsideration of all or part of the agencydivision decision on the existing record and whether, on the basis of the grounds enumerated in subrule 3.27(5), the applicant requests an opportunity to submit additional evidence.

    ITEM 16.    Amend subrule 3.28(4) as follows:    3.28(4)   A copy of the application shall be timely mailed by the applicantdivision to all parties of record not joining therein. Ifif the application does not contain a certificate of service, the division shall serve copies on all partiesdemonstrating service on all parties.

    ITEM 17.    Amend rule 191—3.29(17A) as follows:

191—3.29(17A) Stay of agencydivision action.      3.29(1)   Petition requirements for stay of agencydivision action:    a.    Any party to a contested case proceeding may petition the commissioner for a stay of an order issued in that proceeding or for other temporary remedies, pending review by the agencydivision. The petition shall be filed with the notice of appeal and shall state the reasons justifying a stay or other temporary remedy. The commissioner may rule on the stay or authorize the presiding officer to do so.    b.    Any party to a contested case proceeding may petition the commissioner for a stay or other temporary remedy pending judicial review of all or part of that proceeding. The petition shall state the reasons justifying a stay or other temporary remedy.    3.29(2)   In determining whether to grant a stay, the presiding officer or commissioner shall consider the factors listed in 1998 Iowa Acts, chapter 1202, section 23(5c)Iowa Code section 17A.19(5).    3.29(3)   Any petition for stay of division action shall be deemed denied unless the commissioner grants the application within 20 days after its filing.    3.(3) 3.29(4)   A stay may be vacated by the issuing authority upon application of the commissioner or any other party.

    ITEM 18.    Amend rule 191—3.31(17A) as follows:

191—3.31(17A) Emergency adjudicative proceedings.      3.31(1)   To the extent necessary to prevent or avoid immediate danger to the public health, safety, or welfare, and consistent with the Constitution and other provisions of law, the insurance division may issue a written order in compliance with 1998 Iowa Acts, chapter 1202, section 21,Iowa Code section 17A.18A to suspend a license in whole or in part, order the cessation of any continuing activity, order affirmative action, or take other action within the jurisdiction of the division by emergency adjudicative order. Before issuing an emergency adjudicative order the division shall consider factors including, but not limited to, the following:    a.    Whether there has been a sufficient factual investigation to ensure that the division is proceeding on the basis of reliable information;    b.    Whether the specific circumstances which pose immediate danger to the public health, safety or welfare have been identified and determined to be continuing;    c.    Whether the person required to comply with the emergency adjudicative order may continue to engage in other activities without posing immediate danger to the public health, safety or welfare;    d.    Whether imposition of monitoring requirements or other interim safeguards would be sufficient to protect the public health, safety or welfare;    e.    Whether the specific action contemplated by the insurance division is necessary to avoid the immediate danger; and    f.    Whether the proposed emergency adjudicative order is sufficiently limited in scope and narrowly tailored to protect the public health, safety or welfare.    3.31(2)   An emergency adjudicative order shall contain findings of fact, conclusions of law, and policy reasons to justify the determination of an immediate danger in the insurance division’s decision to take immediate action.    a.    The written emergency adjudicative order shall be immediately delivered to persons who are required to comply with the order by utilizing one or more of the following procedures:the procedures specified in subrule 3.5(1).    (1)   For nonlicensed persons, delivery may be executed by:
  1. Personal service as provided in the Iowa Rules of Civil Procedure; or
  2. Certified mail, return receipt requested; or
  3. First-class mail; or
  4. Publication, as provided in the Iowa Rules of Civil Procedure; or
  5. Facsimile or other electronic transmission. Facsimile or other electronic transmission may be used as the sole method of delivery if the person required to comply with the order has filed a written request that agency orders be sent by facsimile and has provided a fax number for that purpose.
    (2)   For licensees, delivery shall be executed by:
  1. Personal service a provided in the Iowa Rules of Civil Procedure; or
  2. Restricted certified mail.
    b.    If practical, the insurance division shall select the procedure for providing written notice that best ensures prompt, reliable delivery.
    3.31(3)   Unless the written emergency adjudicative order is provided by personal delivery on the same day that the order issues, the insurance division shall make reasonable immediate efforts to contact by telephone the persons who are required to comply with the order.    3.31(4)   After issuance of an emergency adjudicative order, the insurance division shall proceed as quickly as feasible to complete any proceedings that would be required if the matter did not involve an immediate danger.    3.31(5)   A written emergency adjudicative order shall include notification of the date on which insurance division proceedings are scheduled for completion. After an emergency adjudicative order is issued, continuance of further division proceedings to a later date will be granted only in compelling circumstances, and upon written application.    3.31(6)   This rule does not preclude issuance of summary cease and desist orders as authorized by Iowa Code sections 502.604, 502A.12, 523A.17, 523B.8(1), 523D.13, and 523E.17; chapters 505, 507B, 507C, 508, and 515; and rule 191—3.32(502,505).

    ITEM 19.    Amend rule 191—3.33(17A,502,505) as follows:

191—3.33(17A,502,505) Informal settlement.      3.33(1)   A party to a controversy that may culminateor has culminated in contested case proceedings may attempt informal settlement of the controversy by complying with the procedures set forth in this subrule. No party to a controversy shall be required to settle the controversyor contested case by submitting to informal settlement procedures.    3.() 3.33(2)   a.    Parties desiring informal settlement shall set forth in writing the various points of a proposed settlement, which may include a stipulated statementincluding findings of facts.    3.() 3.33(3)   b.    When signed by the parties to a controversyand approved by the commissioner, a proposed settlement shall represent final disposition of the matter in place of contested case proceedings.    3.() 3.33(4)   c.    WhereWhen there areis more than two parties to a controversy involvingone party adverse to the insurance division, a separate settlement between one party and the division is permissible.d.    A proposed settlement which is not accepted or signed by the parties shall not be admitted as evidence in the record of a contested case proceeding.    3.33(2)   A party to a contested case proceeding may attempt informal settlement by complying with the procedures set forth in this subrule. No party shall be required to settle the contested case proceeding by submitting to informal settlement procedures.    a.    Parties desiring informal settlement shall set forth in writing the various points of a proposed settlement, which may include a stipulated statement of facts.    b.    When signed by the parties to the contested case proceeding and the presiding officer, a proposed settlement shall represent final disposition of the proceeding.    c.    Where there are more than two parties to a contested case proceeding involving the insurance division, a separate settlement between one party and the division is permissible.    3.() 3.33(5)   d.    A proposed settlement which is not accepted or signed by the parties and the presiding officercommissioner shall not be admitted as evidence in the record of a contested case proceeding. Evidence of conduct or statements made in settlement negotiations likewise are not admissible. This rule does not require exclusion when the evidence is offered for another purpose, such as proving bias or prejudice of a witness, negating a contention of undue delay, or proving an effort to obstruct a criminal investigation or prosecution.

    ITEM 20.    Rescind and reserve rule 191—3.34(17A,502,505).

    ITEM 21.    Amend rule 191—4.2(17A), definition of “Waiver,” as follows:        "Waiver" means action by the division that suspends in whole or in part the requirements or provisions of a rule as applied to an identified person on the basis of the particular circumstances of that person. For simplicity, the term “variance” as used in Iowa Code chapter 17A is included in this definition of “waiver” for purposes of this chapter.

    ITEM 22.    Adopt the following new subrule 4.7(9):    4.7(9)   Petitions for rule making and the disposition of the petition shall be submitted to the administrative rules review committee pursuant to Iowa Code chapter 17A.

    ITEM 23.    Amend 191—Chapter 4, division heading, as follows:DIVISION IIWAIVER AND VARIANCE OF RULES

    ITEM 24.    Amend subrule 4.22(4) as follows:    4.22(4)   Content of petition. A petition for waiver must be typewritten or legibly handwritten in ink and must substantially conform to the following form:BEFORE THE IOWA INSURANCE COMMISSIONER    In the matter of: (Name of PersonRequesting Waiver or Variance) }    REQUEST FOR WAIVER OF RULE (Specify number of rule for which waiver is requested)

    ITEM 25.    Rescind rule 191—4.39(17A) and adopt the following new rule in lieu thereof:

191—4.39(17A) Intervention.      4.39(1)   Persons who qualify under any applicable provision of law as an intervenor and who file a petition for intervention within 20 days of the filing of a petition for declaratory order (after time for notice under rule 191—4.38(17A) and before 30-day time for division action under rule 191—4.44(17A)) shall be allowed to intervene in a proceeding for a declaratory order.     4.39(2)   Any person who files a petition for intervention at any time prior to the issuance of an order may be allowed to intervene in a proceeding for a declaratory order at the discretion of the division.     4.39(3)   A petition must be typewritten or legibly handwritten in ink and shall state in separately numbered paragraphs the following:    a.    Facts supporting the intervenor’s standing and qualifications for intervention.    b.    The answers urged by the intervenor to the question or questions presented and a summary of the reasons urged in support of those answers.    c.    Reasons for requesting intervention and disclosure of the intervenor’s interest in the outcome.     d.    A statement indicating whether the intervenor is currently a party to any proceeding involving the questions at issue and whether, to the intervenor’s knowledge, those questions have been decided by, are pending determination by, or are under investigation by any governmental entity.    e.    The names and addresses of any additional persons, or a description of any additional class of persons, known by the intervenor to be affected by, or interested in, the questions presented.     f.    Whether the intervenor consents to be bound by the determination of the matters presented in the declaratory order proceeding.    4.39(4)   The petition must be dated and signed by the intervenor or the intervenor’s representative. It must also include the name, mailing address, and telephone number of the intervenor and intervenor’s representative, and a statement indicating the person to whom communications should be directed.
    [Filed 9/3/20, effective 10/28/20][Published 9/23/20]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/23/20.
ARC 5188CNursing Board[655]Adopted and Filed

Rule making related to Iowa nurse assistance program

    The Board of Nursing hereby amends Chapter 19, “Iowa Nurse Assistance Program,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 147.76 and 272C.3(1)“k.”State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 147.76 and 272C.3(1)“k.”Purpose and Summary    On October 9, 2019, the Board voted to decline to issue a declaratory order in response to a petition on the basis that the issue raised was better addressed through the rule-making process. On November 6, 2019, the Board issued a written ruling formalizing its reasons for declining to issue the order.    This rule making now addresses the issue raised by the petition for declaratory order and clarifies the scope of the Board’s jurisdiction to impose discipline against a current participant in the Iowa Nurse Assistance Program. This rule making clarifies that, consistent with the jurisdictional authority provided in Iowa Code section 272C.3(1)“k,” a participant’s entrance into an initial agreement or contract with the program committee does not divest the Board of its authority to discipline a current participant in circumstances involving out-of-state discipline or criminal convictions, notwithstanding any relation to the participant’s impairment. This rule making also clarifies that a current participant shall be referred to the Board for appropriate action if that participant is alleged to have violated a statute or Board rule based on conduct unrelated to the participant’s impairment.    This rule making also updates the language in Chapter 19 to reflect modern terminology for defining qualifying impairments. Additionally, this rule making clarifies that any self-report from applicants or licensees must be submitted in a written form as opposed to verbally. This is to assist in record keeping and clarity of the histories of participants.    This rule making updates the definition of treatment providers from “approved” by the Board to “recognized” by the Board, while still allowing the Board to retain the authority to approve treatment providers. This change is in response to confusion by participants as to which online list or providers they should refer.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 4945C. A public hearing was held on March 17, 2020, at 9 a.m. at the Board’s office, Suite B, 400 S.W. Eighth Street, Des Moines, Iowa. No one attended the public hearing. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Board on July 15, 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 application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 655—Chapter 15.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on October 28, 2020.    The following rule-making actions are adopted:

    ITEM 1.    Amend rule 655—19.1(272C) as follows:

655—19.1(272C) Iowa nurse assistance program committee.  Pursuant to the authority of Iowa Code section 272C.3(1)“k,” the board establishes the Iowa nurse assistance program committee (INAPC), formerly known as the licensee review committee, to implement the Iowa nurse assistance program (INAP). The purpose of the INAPC is to provide a program to support the evaluation and monitoring of licensees who are impaired as a result of alcohol or drug abuse, dependency, or addiction, or byany substance use disorder or any mental or physical disorder or disabilityhealth condition, while protecting the health, safety and welfare of the public.

    ITEM 2.    Amend rule 655—19.2(272C), definition of “Approved treatment provider,” as follows:        "ApprovedRecognized treatment provider" means a licensed health care provider with board-approved expertise in substance use disorderdisorders or mental or physical health conditions.

    ITEM 3.    Amend subrule 19.4(1) as follows:    19.4(1) Self-report.  An applicant or a licensee shallprovide a written self-reportof an impairment or potential impairment directly to the program.

    ITEM 4.    Amend subrule 19.4(5) as follows:    19.4(5) Authority and jurisdictionof the board over participants.      a.    Participation in the programA participant’s entrance into an initial agreement or contract with the INAPC does not divest the board of its authority or jurisdiction over the participant.     b.    A participant’s entrance into an initial agreement or contract with the INAPC specifically does not divest the board of its authority or jurisdiction to impose discipline against a participant who receives a criminal conviction or discipline from another state’s licensing agency, regardless of whether the conduct resulting in the conviction or out-of-state discipline is related to the participant’s impairment, and regardless of whether the conviction or out-of-state discipline occurred prior to or after the participant entered into the initial agreement or contract with the INAPC.    c.    A participant with an impairment or potential impairmentParticipants may be eligible to participatecontinue participating in the program, subject to the INAPC’s discretion, while being subject to investigation or discipline by the board for matters other than the allegedconduct unrelated to the participant’s impairment.

    ITEM 5.    Amend rule 655—19.6(272C) as follows:

655—19.6(272C) LimitationsReferral to the board.  Participation in the INAP shall not relieve the board of any duties and shall not divest the board of any authority or jurisdiction otherwise provided. AIf a participant who violatesis alleged to have violated a statute or board administrative rule,whichbased on conduct that is unrelated tothe participant’s impairment, the INAPC shall be referredrefer the participant to the board for appropriate action.
    [Filed 8/10/20, effective 10/28/20][Published 9/23/20]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/23/20.
ARC 5189CProfessional Licensure Division[645]Adopted and Filed

Rule making related to continuing education exceptions and removal of licensure sanctions for nonpayment of student debt

    The Professional Licensure Division hereby amends Chapter 4, “Board Administrative Processes,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 272C.2 and 272C.4.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 272C.2(4) and 272C.4(10).Purpose and Summary    2019 Iowa Acts, Senate File 304, amended Iowa Code section 272C.4 and removed the requirement that licensing boards impose discipline against a licensee who has defaulted on a repayment or service obligation under any federal or state educational loan or service-conditional scholarship program. This rule making removes the subrule language that adopts the Department of Public Health’s procedures for denying a license or imposing discipline against a license following receipt of a certificate of noncompliance from the College Student Aid Commission and adds language specifying that licensure sanctions for default or delinquency on student debt or a service obligation are prohibited.    This rule making also amends subrule 4.12(1) governing automatic continuing education exemptions to clarify that funeral directors who served honorably on active duty in the military service during the license biennium may be exempt from continuing education requirements.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on March 11, 2020, as ARC 4963C. A public hearing was scheduled but, due to COVID-19, was not held. No one attended the public hearing. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Division on August 25, 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    A waiver provision is not included in this rule making because all administrative rules of the professional licensure boards in the Division of Professional Licensure are subject to the waiver provision accorded under 645—Chapter 18. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on October 28, 2020.    The following rule-making actions are adopted:

    ITEM 1.    Amend subrule 4.12(1) as follows:    4.12(1)   A licensee, except a funeral director, shall be exempt from the continuing education requirement during the license biennium when the licensee:    a.    Served honorably on active duty in the military service; or    b.    Resided in another state or district having continuing education requirements for the profession and met all requirements of that state or district for practice therein; or    c.    Was a government employee working in the licensee’s specialty and assigned to duty outside the United States; or    d.    Was absent from the state but engaged in active practice under circumstances which are approved by the board.

    ITEM 2.    Amend rule 645—4.16(252J,261,272D) as follows:

645—4.16(252J,261,272D) Noncompliance rules regarding child support, loan repayment and nonpayment of state debt.      4.16(1) Child support noncompliance.  The board hereby adopts by reference 641—Chapter 192, “Child Support Noncompliance,” Iowa Administrative Code.    4.16(2) Noncompliance of loan repayment.Sanctions for default or delinquency on student loan debt or service obligation prohibited.  The board hereby adopts by reference 641—Chapter 195, “Student Loan Default/Noncompliance with Agreement for Payment of Obligation,” Iowa Administrative Code.The board shall not suspend or revoke the license or certification of a person who is in default or is delinquent on repayment or a service obligation under federal or state postsecondary educational loans or public or private services-conditional postsecondary tuition assistance solely on the basis of such default or delinquency.    4.16(3) Nonpayment of state debt.  The board hereby adopts by reference 641—Chapter 194, “Nonpayment of State Debt,” Iowa Administrative Code.

    ITEM 3.    Amend 645—Chapter 4, implementation sentence, as follows:       These rules are intended to implement Iowa Code chapters 17A, 21, 147, 252J, 261, 272C and 272D.    [Filed 8/25/20, effective 10/28/20][Published 9/23/20]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/23/20.
ARC 5190CRevenue Department[701]Adopted and Filed

Rule making related to tax return preparers

    The Revenue Department hereby amends Chapter 7, “Practice and Procedure Before the Department of Revenue,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 421.14.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 421.62 to 421.64.Purpose and Summary    The Department has adopted this rule making to implement new provisions that were added to Iowa Code chapter 421 by 2019 Iowa Acts, House File 590, and by 2020 Iowa Acts, House File 2641. Iowa Code section 421.62 defines “tax return preparer” and sets forth a penalty for tax return preparers who fail to include their preparer tax identification number on certain returns or claims for refund they prepare under Iowa Code chapter 422. Iowa Code section 421.63 grants the Department the authority to enjoin certain tax return preparers. Lastly, Iowa Code section 421.64 imposes continuing education requirements on tax return preparers.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 4942C. No public comments were received.     On June 29, 2020, Governor Reynolds signed 2020 Iowa Acts, House File 2641, into law, which provides technical changes to Iowa Code sections 421.62 and 421.64 and adds a clarifying definition to Iowa Code section 421.62. In response to this legislation, the Department filed an Amended Notice of Intended Action that changed a term from “tax return or claim for refund” to “income tax return or claim for refund,” modified the definition of “tax return preparer,” and made technical changes throughout the rule to reflect these alterations. Apart from these nonsubstantive technical corrections, no other changes were included in the Amended Notice.    The Amended Notice of Intended Action was published in the Iowa Administrative Bulletin on July 29, 2020, as ARC 5103C. The Department received one comment in regard to the Amended Notice of Intended Action. The commenter was concerned about the definition of “an individual licensed as a certified public accountant or a licensed public accountant under Iowa Code chapter 542 or a similar law of another state.” In particular, the commenter was concerned that a portion of the definition was repetitive and would cause confusion. As a result, the commenter proposed alternative language that kept much of the original definition. The Department considered this change and ultimately adjusted the relevant definition in a slightly different manner from the commenter’s proposal, but the Department believes the change adequately addresses the commenter’s concern. No other changes from the Amended Notice of Intended Action have been made.Adoption of Rule Making    This rule making was adopted by the Department on September 2, 2020.Fiscal Impact     This rule making has no fiscal impact beyond that of the legislation it is intended to implement. A fiscal estimate prepared by the Department for a similar bill is available upon request. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on October 28, 2020.    The following rule-making action is adopted:

    ITEM 1.    Adopt the following new rule 701—7.36(421):

701—7.36(421) Tax return preparers.      7.36(1) Definitions.  For the purposes of this rule and for Iowa Code sections 421.62, 421.63, and 421.64, the following definitions apply:        "An enrolled agent enrolled to practice before the federal Internal Revenue Service (IRS) pursuant to 31 CFR §10.4" means an individual who has an active status as an enrolled agent under 31 CFR §10.4(a) or (d) and is not currently under suspension or disbarment from practice before the IRS. An enrolled agent does not include an enrolled retirement plan agent under 31 CFR §10.4(b) or a registered tax return preparer under 31 CFR §10.4(c).        "An individual admitted to practice law in this state or another state" means an individual who has an active license to practice law in this state or another state, is considered in good standing with the licensing authority of this or another state, and is currently authorized to engage in the practice of law.         "An individual licensed as a certified public accountant or a licensed public accountant under Iowa Code chapter 542 or a similar law of another state" means an individual who has an active certified public accountant license or an active public accountant license under Iowa Code chapter 542 or a similar law of another state and is in good standing with the Iowa accountancy examining board or similar authority of another state.        "Hour of continuing education" means a minimum of 50 minutes spent by a tax return preparer in actual attendance at or completion of an IRS-approved provider of continuing education course.        "Income tax return or claim for refund" means any return or claim for refund under Iowa Code chapter 422, excluding withholding returns under Iowa Code section 422.16.        "New tax preparer" means an individual who qualifies as a “tax return preparer” under Iowa Code section 421.62 for the current tax year but would not have qualified as such during any prior calendar year. See paragraph 7.36(8)“a” for examples regarding who qualifies as a new tax preparer.        "Tax return preparer" means any individual who, for a fee or other consideration, prepares ten or more income tax returns or claims for refund during a calendar year, or who assumes final responsibility for completed work on such income tax returns or claims for refund on which preliminary work has been done by another individual.“Tax return preparer” does not include any of the following:
  1. An individual licensed as a certified public accountant or a licensed public accountant under Iowa Code chapter 542 or a similar law of another state.
  2. An individual admitted to practice law in this state or another state.
  3. An enrolled agent enrolled to practice before the federal IRS pursuant to 31 CFR §10.4.
  4. A fiduciary of an estate, trust, or individual, while functioning within the fiduciary’s legal duty and authority with respect to that individual or that estate or trust or its testator, trustor, grantor, or beneficiaries.
  5. An individual who prepares the tax returns of the individual’s employer, while functioning within the individual’s scope of employment with the employer.
  6. An individual employed by a local, state, or federal government agency, while functioning within the individual’s scope of employment with the government agency.
  7. An employee of a tax return preparer, if the employee provides only clerical or other comparable services and does not sign tax returns.
See paragraph 7.36(8)“a” for examples regarding who qualifies as a tax return preparer.
    7.36(2) Penalty for tax return preparer’s failure to include preparer tax identification number (PTIN) on income tax returns or claims for refund.  On or after January 1, 2020, a tax return preparer who fails to include the tax return preparer’s PTIN on any income tax return or claim for refund prepared by the tax return preparer and filed with the department shall pay to the department a penalty of $50 for each violation, unless the tax return preparer shows that the failure was reasonable under the circumstances and not willful or reckless conduct. The maximum aggregate penalty imposed upon a tax return preparer pursuant to Iowa Code section 421.62 and this rule shall not exceed $25,000 during any calendar year. See paragraph 7.36(8)“c” for examples pertaining to the tax return preparer PTIN requirement.    7.36(3) Tax return preparer continuing education requirement.  Beginning January 1, 2020, and every year thereafter, a tax return preparer shall complete a minimum of 15 hours of continuing education courses each year. At least two hours of continuing education shall be on professional ethics, and the remaining hours shall pertain to federal or state income tax. Each course shall be taken from an IRS-approved provider of continuing education. If a course offered by an IRS-approved provider is primarily on state-specific income tax content, the course will qualify for the continuing education requirements under Iowa Code section 421.64 and this rule, even if such course does not count toward federal continuing professional education. Tax return preparers who complete more than the required 15 hours of continuing education in one calendar year may not count the excess hours toward a subsequent year’s requirement. See paragraph 7.36(8)“b” for examples pertaining to the tax return preparer continuing education requirement.    7.36(4) Preparation of income tax returns or claims for refund.  An individual prepares an income tax return or claim for refund when the individual signs (or should sign) a return, either because the individual completes the return or because the individual assumes final responsibility for preliminary work completed by other individuals.    7.36(5) Approved providers and courses.      a.    Approved providers of continuing education.Any IRS-approved provider of continuing education is acceptable. It is not mandatory that a continuing education course be taken from an Iowa provider.    b.    Approved continuing education course subject matters.All continuing education courses shall be on the topics of federal or state income tax or professional ethics.    c.    Approved continuing education format.Continuing education courses that satisfy the requirements of Iowa Code section 421.64 and this rule may be taken for credit in person, online, or by self-study, as long as they are administered by an IRS-approved provider of continuing education.    7.36(6) Reporting hours of continuing education and retaining records.      a.    Reporting hours of continuing education to the department.Tax return preparers shall report their continuing education hours to the department by February 15 of the calendar year following the year in which hours were completed to be eligible to prepare income tax returns or claims for refund. Hours must be reported using IA Form 78-012. If a tax return preparer fails to complete the required minimum hours of continuing education by the date prescribed in this subrule, the individual must show that failure to do so was reasonable under the circumstances and not willful or reckless conduct. IRS-approved providers are not required to report continuing education courses to the department.    b.    Retaining records of continuing education.Tax return preparers are required to retain records of continuing education completion for a minimum of five years. This record retention shall include, but is not limited to, certificates of completion if offered by the IRS-approved provider of continuing education upon completion of a course.    7.36(7) Reinstatement of a tax return preparer.   When a tax return preparer fails to complete the minimum 15 hours of continuing education courses as required by Iowa Code section 421.64 and this rule but demonstrates that the failure was reasonable under the circumstances and not willful or reckless conduct, the department may require the tax return preparer to make up any uncompleted hours and submit a completed IA Form 78-012 to the department by a date set by the department before the tax return preparer may engage in activity as a tax return preparer.    7.36(8) Examples.      a.    Tax return preparer examples.    b.    Continuing education requirement examples.    c.    PTIN requirement examples.       This rule is intended to implement Iowa Code sections 421.62, 421.63, and 421.64.
    [Filed 9/2/20, effective 10/28/20][Published 9/23/20]Editor’s Note: For replacement pages for IAC, see IAC Supplement 9/23/20.

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