Iowa Legislature: Bulletin_5_5

Bulletin 05-05-2021

Front matter not included

ARC 5610CHistorical Division[223]Notice of Intended Action

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

The Department of Cultural Affairs hereby proposes to amend Chapter 1, “Description of Organization,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 303.1A.State or Federal Law Implemented This rule making implements, in whole or in part, 2020 Iowa Acts, House File 2585.Purpose and Summary The proposed amendment changes language in relation to deaf and hard-of-hearing persons in accordance with the change enacted in 2020 Iowa Acts, House File 2585.Fiscal Impact This rule making reflects a change of terminology and 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. 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 May 25, 2021. Comments should be directed to: Kristen Vander Molen Department of Cultural Affairs 600 East Locust Street Des Moines, Iowa 50319 Phone: 515.281.4228 Email: kristen.vandermolen@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 1.5(5) as follows: 1.5(5) Facilities use. Resource protection is the underlying principle guiding the use of society facilities. This subrule sets forth conditions of public use which apply to all society facilities. Additional restrictions or exceptions pertain to specific facilities as listed in subrule 1.5(6). a. Individuals and groups.All facilities of the society are open to individuals in accordance with the posted schedule. Groups may arrange for educational programs and group tours by contacting the society. b. Facility rentals.Certain facilities of the society are available for rental. An individual or group renting a society facility shall be liable for all damage to the facility. The renter shall be billed for the cost of repairs, extraordinary cleaning, and, if necessary, the collection of costs related to any damage caused during rental. c. Pets.With the exception of those assisting thedeaf and hard of hearing or visually impaired, pets shall be prohibited in society buildings. All pets on the grounds of any society facility shall be on a leash and under the direct supervision of the owner. The owner assumes all liability for pets brought onto the grounds of a society facility. d. Smoking.Smoking shall be prohibited in all society facilities. e. Food and drink.Consumption of food and beverages shall be prohibited in all society facilities except in specific areas designated by the director, or designee, upon recommendation of the administrator. f. Camping.Camping shall be prohibited at all society facilities, except for special events approved by the director, or designee, upon recommendation of the administrator.ARC 5595CLabor Services Division[875]Notice of Intended Action

Proposing rule making related to special inspector commissions and providing an opportunity for public comment

The Labor Commissioner hereby proposes to amend Chapter 90, “Administration of the Boiler and Pressure Vessel Program,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 89.7(2).State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapter 89.Purpose and Summary The proposed amendments would change the expiration date of all special inspector commissions from June 30 to December 31 and would require an applicant for a new special inspector commission to meet with the chief boiler inspector.Fiscal Impact It is anticipated that about $3,000 in special inspector fees would be lost in the transition to December expirations.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 Commissioner for a waiver of the discretionary provisions, if any, pursuant to 875—Chapter 1.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 Commissioner no later than 4:30 p.m. on May 25, 2021. Comments should be directed to: Kathleen Uehling Division of Labor Services 150 Des Moines Street Des Moines, Iowa 50309 Email: kathleen.uehling@iwd.iowa.govPublic Hearing If requested, a public hearing at which persons may present their views orally or in writing will be held as follows: May 25, 2021 1 p.m. Dial: 312.626.6799 Meeting ID number: 879 7671 4785 Passcode: 430189 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 Commissioner 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 subrules 90.9(2) and 90.9(3) as follows: 90 90.9 9(2) Application. a. A person applying for anew or renewed commission shall complete, sign, and submit to the division with the required fee the form entitled “Application for Boiler and Pressure Vessel Special Inspector Commission” provided by the division. Additionally, the applicant shall submit a copy of the applicant’s current National Board work card with each application. b. An applicant for a new Iowa special inspector commission shall schedule a meeting with the chief boiler inspector to discuss Iowa law and the responsibilities, expectations, and requirements for a special inspector. 90 90.9 9(3) Expiration. a. The commission is for no more than one year and ceases when the special inspector leaves employment with the insurance company, or when the commission is suspended or revoked by the labor commissioner. Each commission shall expire no later than June 30December 31 of each year. b. Notwithstanding paragraph 90.9(3)“a” and in order to transition from an expiration date of June 30 to an expiration date of December 31, a commission issued between June 1, 2022, and November 30, 2022, shall expire on December 31, 2023.ARC 5593CNatural Resource Commission[571]Notice of Intended Action

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

The Natural Resource Commission (Commission) hereby proposes to amend Chapter 40, “Boating Speed and Distance Zoning,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 455A.5(6), 462A.26(2) and 462A.32(1).State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 462A.26 and 462A.32.Purpose and Summary Chapter 40 contains rules governing water navigation, specifically vessel speed and distance zoning. This proposed rule making would amend subrule 40.31(2). This subrule designates a five-mile-per-hour boating speed zone on East Okoboji Lake in the area known as the Narrows. The Narrows, as its name indicates, is a location where the lake is severely constricted by a large point protruding from the northeast. Currently, the speed zone is defined as an area extending 300 feet north and 200 feet south of the Narrows and is marked on the water using lines of buoys. The purpose of the zone is to reduce the speed of boat traffic for safety purposes and to reduce shoreline erosion caused by boat wakes. The amendment would extend the speed zone an additional distance of approximately 800 feet from the existing south boundary to a buoy line extending from the point at 16486 255th Avenue east to the state property adjacent to 16313 256th Avenue on the east side of East Okoboji Lake. This extension will help further reduce shoreline erosion, which is an ongoing problem in this area.Fiscal Impact This rule making has no fiscal impact to the State of Iowa as it requires no additional revenues or staffing to implement. A copy of the fiscal impact statement is available from the Department of Natural Resources (Department) upon request. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found. A copy of the jobs impact statement is available from the Department upon request.Waivers This rule is subject to the waiver provisions of 571—Chapter 11. Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Commission for a waiver of the discretionary provisions. 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 May 26, 2021. Comments should be directed to: Greg Harson Iowa Department of Natural Resources 122 252nd Avenue Spirit Lake, Iowa 51360 Fax: 712.336.0921 Email: gregory.harson@dnr.iowa.gov Public Hearing A public hearing at which persons may present their views orally will be held by conference call as follows. Persons who wish to attend the conference call should contact Greg Harson at gregory.harson@dnr.iowa.gov. A conference call number will be provided prior to the hearing. Persons who wish to make oral comments at the conference call public hearing must submit a request to Greg Harson prior to the hearing to facilitate an orderly hearing. May 26, 2021 6 p.m. Video/conference call Persons who wish to make oral comments at the public hearing will be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making action is proposed:

ITEM 1. Amend subrule 40.31(2) as follows: 40.31(2) Zone 2. Zone 2 shall be the area which is 300 feet north of the area commonly known as the Narrows on East Okoboji and 200 feet south of the area commonly known as the Narrows onextends to a southern boundary of a buoy line from the point at 16486 255th Avenue east to the state property adjacent to 16313 256th Avenue on the east side of East Okoboji.ARC 5615CNursing Board[655]Notice of Intended Action

Proposing rule making related to background checks for nursing students and providing an opportunity for public comment

The Board of Nursing hereby proposes to amend Chapter 2, “Nursing Education Programs,” 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 152.5A.Purpose and Summary During the 2020 Legislative Session, the Legislature passed 2020 Iowa Acts, Senate File 2299, which relates to background checks for employees of certain health care facilities, providers, and agencies and students in nursing programs. 2020 Iowa Acts, Senate File 2299, section 6, amended Iowa Code section 152.5A to conform the nursing-student background check process to the requirements of Iowa Code section 135C.33. This proposed rule making updates the Board’s rules regarding background checks for nursing students to incorporate the amended Iowa Code language.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.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 May 25, 2021. Comments should be directed to: Kathy Weinberg Iowa Board of Nursing 400 S.W. Eighth Street, Suite B Des Moines, Iowa 50309 Email: kathy.weinberg@iowa.gov Public Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: May 25, 2021 9 to 10 a.m. Board Office, Suite B 400 S.W. Eighth Street Des Moines, Iowa Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Board and advise of specific needs. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making action is proposed:

ITEM 1. Amend rule 655—2.13(152) as follows:

655—2.13(152) Student criminal history checks. 2.13(1) The program shall initiate criminal history and child and dependent adult abuse record checks of students and prospective students to ensure a student’s ability to complete the clinical education component of the program in accordance with Iowa Code section 152.5sections 152.5A and 135C.33. 2.13(2) The program shall: a. Notify all students and prospective students of the nursing program’s written policy and procedure concerning criminal history and child and dependent adult abuse record checks. b. Conduct record checksin accordance with Iowa Code sections 152.5A and 135C.33 on all students: (1) Applying for the nursing program. (2) Returning to the clinical education component of the nursing program. Time frames between record checks may be determined by the program. (3) Anytime during the student’s enrollment in the nursing program pursuant to the program’s policy and procedure. c. Request that the department of public safety perform a criminal history check and that the department of human services perform child and dependent adult abuse record checks. d. c. Follow the guidelines and standards set forthAbide by the results of the evaluation performed by the department of human services in conducting record checks and inwhen determining a student’s ability to complete the clinical education component of a nursing program based on the record checks.ARC 5616CNursing Board[655]Notice of Intended Action

Proposing rule making related to submission of waiver information and providing an opportunity for public comment

The Board of Nursing hereby proposes to amend Chapter 15, “Waiver Rules,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 17A.9A.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 17A.9A.Purpose and Summary During the 2020 Legislative Session, the Legislature passed 2020 Iowa Acts, House File 2389, which made various amendments to Iowa Code chapter 17A. Section 10 of this legislation amended Iowa Code section 17A.9A by establishing an Internet site for the submission of waiver information, and agencies are now required to submit information regarding waivers within 60 days of ruling on a waiver request. This proposed rule making updates the Board’s waiver-reporting rules to align with the new procedure. In addition, this rule making updates the Chapter 15 parenthetical implementation statutes and the chapter implementation sentence.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.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 May 25, 2021. Comments should be directed to:Kathy Weinberg Iowa Board of Nursing 400 S.W. Eighth Street, Suite B Des Moines, Iowa 50309 Email: kathy.weinberg@iowa.gov Public Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: May 25, 2021 10 to 11 a.m. Board Office, Suite B 400 S.W. Eighth Street Des Moines, Iowa Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Board and advise of specific needs. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:

ITEM 1. Amend rule 655—15.1(147,ExecOrd8,78GA,ch1176), parenthetical implementation statute, as follows:

655—15.1(147,ExecOrd8,78GA,ch117617A,147) Definition.

ITEM 2. Amend rule 655—15.2(147,ExecOrd8,78GA,ch1176), parenthetical implementation statute, as follows:

655—15.2(147,ExecOrd8,78GA,ch117617A,147) Scope of chapter.

ITEM 3. Amend rule 655—15.3(147,ExecOrd8,78GA,ch1176), parenthetical implementation statute, as follows:

655—15.3(147,ExecOrd8,78GA,ch117617A,147) Applicability of chapter.

ITEM 4. Amend rule 655—15.4(147,ExecOrd8,78GA,ch1176), parenthetical implementation statute, as follows:

655—15.4(147,ExecOrd8,78GA,ch117617A,147) Criteria for waiver.

ITEM 5. Amend rule 655—15.5(147,ExecOrd8,78GA,ch1176), parenthetical implementation statute, as follows:

655—15.5(147,ExecOrd8,78GA,ch117617A,147) Filing of petition.

ITEM 6. Amend rule 655—15.6(147,ExecOrd8,78GA,ch1176), parenthetical implementation statute, as follows:

655—15.6(147,ExecOrd8,78GA,ch117617A,147) Content of petition.

ITEM 7. Amend rule 655—15.7(147,ExecOrd8,78GA,ch1176), parenthetical implementation statute, as follows:

655—15.7(147,ExecOrd8,78GA,ch117617A,147) Additional information.

ITEM 8. Amend rule 655—15.8(147,ExecOrd8,78GA,ch1176), parenthetical implementation statute, as follows:

655—15.8(147,ExecOrd8,78GA,ch117617A,147) Notice.

ITEM 9. Amend rule 655—15.9(147,ExecOrd8,78GA,ch1176), parenthetical implementation statute, as follows:

655—15.9(147,ExecOrd8,78GA,ch117617A,147) Hearing procedures.

ITEM 10. Amend rule 655—15.10(147,ExecOrd8,78GA,ch1176), parenthetical implementation statute, as follows:

655—15.10(147,ExecOrd8,78GA,ch117617A,147) Ruling.

ITEM 11. Amend rule 655—15.11(147,ExecOrd8,78GA,ch1176), parenthetical implementation statute, as follows:

655—15.11(147,ExecOrd8,78GA,ch117617A,147) Public availability.

ITEM 12. Amend rule 655—15.12(147,ExecOrd8,78GA,ch1176) as follows:

655—15.12(147,ExecOrd8,78GA,ch117617A,147) Summary reportsSubmission of waiver information. Semiannually, each division board shall prepare a summary report identifyingWithin 60 days of granting or denying a waiver, the board shall submit the following information to the Internet site created pursuant to Iowa Code section 17A.9A(4): the rulesrule(s) 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 rulesthe rule(s), and a general summary of the reasons justifying the board’s actions onthe waiver requestsrequest. If practicable, the reportsubmission shall detailthe extent to which the granting of a waiver has established a precedent for additional waivers and 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 13. Amend rule 655—15.13(147,ExecOrd8,78GA,ch1176), parenthetical implementation statute, as follows:

655—15.13(147,ExecOrd8,78GA,ch117617A,147) Cancellation of a waiver.

ITEM 14. Amend rule 655—15.14(147,ExecOrd8,78GA,ch1176), parenthetical implementation statute, as follows:

655—15.14(147,ExecOrd8,78GA,ch117617A,147) Violations.

ITEM 15. Amend rule 655—15.15(147,ExecOrd8,78GA,ch1176), parenthetical implementation statute, as follows:

655—15.15(147,ExecOrd8,78GA,ch117617A,147) Defense.

ITEM 16. Amend rule 655—15.16(147,ExecOrd8,78GA,ch1176), parenthetical implementation statute, as follows:

655—15.16(147,ExecOrd8,78GA,ch117617A,147) Judicial review.

ITEM 17. Amend 655—Chapter 15, implementation sentence, as follows: These rules are intended to implement Iowa Code chapterchapters 17A and 147, Executive Order Number 8, and 2000 Iowa Acts, chapter 1176.ARC 5609CParole Board[205]Notice of Intended Action

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

The Board of Parole hereby proposes to amend Chapter 16, “Waiver and Variance Rules,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 904A.4A.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 17A.9A.Purpose and Summary The proposed amendments update Chapter 16 in accordance with changes included in 2020 Iowa Acts, House File 2389, section 10. The legislation called for deletions of the word “variance” when the word is used in relation to “waiver.” Amendments are also proposed for the submission of information regarding waivers on the Legislative Services Agency’s Internet site.Fiscal Impact This rule making has no fiscal impact to the State of Iowa.Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any.Public Comment Any interested person may submit written 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 May 25, 2021. Comments should be directed to:Andrea Muelhaupt Board of Parole Jessie Parker Building 510 East 12th Street Des Moines, Iowa 50319 Email: andrea.muelhaupt@iowa.govPublic Hearing If requested, a public hearing at which persons may present their views orally or in writing will be held as follows:May 25, 2021Via conference call9 to 10 a.m. Persons who wish to participate in the conference call should contact Andrea Muelhaupt before 4:30 p.m. on May 18, 2021, to facilitate an orderly hearing. A conference call number will be provided to participants prior to the hearing. The public hearing will be canceled without further notice if no oral presentation is requested. Persons who wish to make oral comments at a public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Board and advise of specific needs. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:

ITEM 1. Amend 205—Chapter 16, title, as follows:WAIVER AND VARIANCE RULES

ITEM 2. Amend rule 205—16.1(17A) as follows:

205—16.1(17A) Definition. For purposes of this chapter, “a waiver or variance” means action by the board 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. For simplicity, the term “waiver” shall include both a “waiver” and a “variance.”

ITEM 3. Amend rule 205—16.4(17A) as follows:

205—16.4(17A) Criteria for waiver or variance. In response to a petition completed pursuant to rule 205—16.6(17A), the board may in its sole discretion issue an order waiving in whole or in part the requirements of a rule if the board finds, based on clear and convincing evidence, all of the following:

The application of the rule would impose an undue hardship on the person for whom the waiver is requested;
The waiver from the requirements of the rule in the specific case would not prejudice the substantial legal rights of any person;
The provisions of the rule subject to the petition for a waiver are not specifically mandated by statute or another provision of law; and
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.

ITEM 4. Amend rule 205—16.12(17A) as follows:

205—16.12(17A) Summary reportsSubmission of waiver information. Semiannually, the board shall prepare a summary report identifyingThe board shall submit information about granted and denied waivers to the Internet site pursuant to Iowa Code section 17A.9A within 60 days. The submission shall identify 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 board’s actions on waiver requests. If practicable, the reportsubmission shall detail the extent to which the granting of a waiver has affected the general applicability of the rule itselfand the extent to which the granting of the waiver has established a precedent for additional waivers. 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.ARC 5617CProfessional Licensure Division[645]Notice of Intended Action

Proposing rule making related to standards of practice and telepsychology and providing an opportunity for public comment

The Board of Psychology hereby proposes to amend Chapter 240, “Licensure of Psychologists”; to adopt a new Chapter 243, “Practice of Psychology”; and to amend Chapter 244, “Prescribing Psychologists,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 147.76 and 272C.4.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapter 154B and sections 147.9, 147.55, 272C.4, 272C.9 and 272C.10 and 2020 Iowa Acts, House File 2389.Purpose and Summary The proposed rule making establishes standards of practice for psychologists who provide patient care through telepsychology, requires Health Insurance Portability and Accountability Act (HIPAA)-compliant technology, and imposes other requirements to ensure the patient’s confidential health information is secure. These rules align with the Board of Medicine’s rules governing telemedicine, which will ensure that psychologists operate under uniform standards when coordinating remote care. The proposed chapter also establishes the minimum standards of practice for licensed psychologists, provides definitions of practice terminology, and specifies the requirements for patient records management, psychological testing, participation in judicial proceedings and reporting to the Board. In addition, there are two proposed amendments that pertain to technical corrections. The first amendment pertains to Chapter 240 and ensures uniformity with the chapter by removing the requirement that supervised professional experience by a postdoctoral supervisee take place in the same physical setting as the supervisor. The second amendment pertains to 2020 Iowa Acts, House File 2389, which amended Iowa Code chapter 17A to remove the term “variance” and required that agencies’ rules about waiver procedures refer only to waivers. The word “variance” is therefore proposed to be removed from Chapter 244.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 645—Chapter 18. Public Comment Any interested person may submit written 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 May 25, 2021. Comments should be directed to: Sharon Dozier Professional Licensure Division Iowa Department of Public Health Lucas State Office Building 321 East 12th Street Des Moines, Iowa 50319 Phone: 515.281.0254 Fax: 515.281.3121 Email: sharon.dozier@idph.iowa.govPublic Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: May 25, 2021 10 to 11 a.m. Via videoconference: idph.webex.com/idph/j.php?MTID= m89b81013fc5dafcb8e94ebc4c230b2e0 Meeting number: 187 971 8288 Password: PmhpNm8$ Via telephone: 408.418.9388 Access code: 187 971 8288 Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. In an effort to ensure accuracy in memorializing a person’s comments, a person may provide written comments in addition to or in lieu of oral comments at the hearing. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Board and advise of specific needs. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:

ITEM 1. Amend subparagraph 240.6(2)"a" as follows: (3) Work in the same physical setting as the supervisor unless a completed off-site supervision form is submitted to and approved by the boardthe requirements stated in subparagraph 240.6(2)“b”(11) are met;

ITEM 2. Adopt the following new 645—Chapter 243: CHAPTER 243PRACTICE OF PSYCHOLOGY

645—243.1(154B) Definitions. 645—243.1645—243.1645—243.1645—243.1645—243.1645—243.1645—243.1645—243.1645—243.1645—243.1 "APA" means the American Psychological Association. "Clinical records" means records created by a licensee regarding the observation and treatment of patients, such as progress notes, but does not include psychotherapy notes. "Examinee" means a person who is the subject of a forensic examination for the purpose of informing a decision maker or attorney about the psychological functioning of that examinee. "HIPAA" means the Health Insurance Portability and Accountability Act of 1996 and regulations promulgated thereunder. "Licensee" "licensed" means an individual with an active license to practice psychology, including a provisional license, or a certificate of exemption issued by the board. "Patient" means an individual under the care of a licensee in a clinical role and is synonymous with the term client. "Personal representative" means a person authorized to act on behalf of the patient in making health care-related decisions. A personal representative may include a parent or legal guardian, an individual with a health care power of attorney, an individual with a general power of attorney or durable power of attorney that includes the power to make health care decisions, or a court-appointed legal guardian. "Psychotherapy notes" means notes recorded by a licensee documenting or analyzing the contents of a conversation during a private therapy session with a patient, or a group, joint, or family therapy session, that are maintained separately from the patient’s clinical records. Psychotherapy notes excludes medication prescription monitoring, counseling session start and stop times, the modalities and frequencies of treatment furnished, results of any clinical tests, and any summary of the following items: diagnosis, functional status, treatment plan, symptoms, prognosis, and progress to date. "Telepsychology" means the provision of psychological services using telecommunication technologies. "Test data" means raw and scaled scores, patient responses to test questions or stimuli, and notes and recordings concerning patient statements and behavior during an examination.

645—243.2(147,154B,272C) Purpose and scope. The purpose of this chapter is to set the minimum standards of practice for licensees practicing in Iowa. The practice of psychology is occurring in Iowa if the patient or examinee is located in Iowa. Licensees shall ensure any interns or residents under supervision adhere to the minimum standards of practice and must comply with the requirements set forth in rule 645—240.9(154B). The APA Code of Ethics is applicable and enforceable to the extent it does not conflict with any standards of practice set forth in this chapter. A licensee may be disciplined for any violation of this chapter or the APA Code of Ethics.

645—243.3(154B) Access to records. 243.3(1) Clinical records generally. Upon a signed release from the patient or the patient’s personal representative, a licensee shall provide clinical records in accordance with the release unless there is a ground for denial under HIPAA. 243.3(2) Psychotherapy notes. A licensee is not required to release psychotherapy notes in response to a signed release, but a licensee who chooses to release psychotherapy notes may only provide psychotherapy notes if the signed release specifically authorizes the release of psychotherapy notes. 243.3(3) Substance use disorder treatment programs. Licensees who practice in a federally assisted substance use disorder treatment program, also known as a part 2 program, are prohibited from disclosing any information that would identify a patient as having a substance use disorder unless the patient provides written consent in compliance with part 2 requirements. 243.3(4) Clinical records of minor patients. A minor patient is a patient who is under the age of 18 and is not emancipated. A licensee is not required to release the clinical records of a minor patient to the minor’s personal representative if releasing such records is not in the minor’s best interest. When a minor patient reaches the age of 18, the clinical records belong to the patient. 243.3(5) Clinical records of deceased patients. A licensee shall provide the clinical records of a deceased patient to the deceased patient’s executor upon a written request accompanied by a copy of the patient’s death certificate and a copy of the legal document identifying the requestor as the patient’s executor. 243.3(6) Forensic records. A licensee shall provide forensic records consistent with the APA Specialty Guidelines for Forensic Psychology. 243.3(7) Board. A licensee shall provide clinical records, test data, or forensic records to the board as requested during the investigation of a complaint. A licensee is not required to obtain a patient release to send such information to the board because the board is a health oversight agency. 243.3(8) Exceptions. Nothing herein shall be construed as requiring a licensee to disclose information when there is a legal basis for not disclosing the information.

645—243.4(154B) Psychological testing. A licensee may administer psychological tests and assessments to a patient or examinee provided the licensee has appropriate training for any psychological test or assessment utilized and the test or assessment is scientifically founded. 243.4(1) Use of proctors. A licensee may delegate the administration of a standardized test, intelligence test, or objective personality assessment to an appropriately trained individual. The licensee is responsible for supervising any proctors. 243.4(2) Release of test data. A licensee shall not provide test data to any person, except that upon a written request of a patient or examinee who is the subject of a test, the test data shall be disclosed to a licensed psychologist designated by the patient or examinee. A psychologist who receives test data in this manner may not further disseminate the test data.

645—243.5(154B) Judicial proceedings. Prior to participating in a judicial proceeding, a licensee shall become familiar with the rules governing the proceeding. A licensee shall understand and clearly identify the licensee’s role in the proceeding. 243.5(1) Licensure. A license to practice psychology in Iowa or an exemption from licensure is not required solely to testify as an expert witness in court, provided the psychologist did not personally examine the examinee. A psychologist who personally examines an examinee located in Iowa for the purpose of providing an expert opinion is required to be licensed or exempt from licensure at the time of the evaluation. 243.5(2) Custody evaluations. A licensee who performs a child custody evaluation shall comply with the APA Guidelines for Child Custody Evaluations in Family Law Proceedings.

645—243.6(147,154B,272C) Reports required. Within 30 days, a licensee shall report to the board the following: 243.6(1) A change of name or address. Name and address changes may be reported at www.idph.iowa.gov/Licensure. 243.6(2) A criminal conviction, even if the adjudication of guilt is deferred, withheld, or not entered. A conviction includes Alford pleas and pleas of nolo contendere. 243.6(3) Any disciplinary action taken by another licensing authority in this state, another state, territory, or country. 243.6(4) Any occurrence of any judgment or settlement of a malpractice claim or action. 243.6(5) Acts or omissions of the board’s statute or administrative rules committed by another person licensed to practice by the board when a licensee has first-hand knowledge of such acts or omissions. This duty to report does not apply when a licensee has knowledge as a result of the other licensee being a patient.

645—243.7(154B) Telepsychology. A psychologist may practice telepsychology provided the following are met: 243.7(1) The psychologist must be licensed or be exempt from licensure in the jurisdiction where the patient or examinee is located. 243.7(2) Prior to initiating telepsychology with a new patient or examinee, a licensee shall take reasonable steps to verify the identity and location of the patient or examinee. 243.7(3) A licensee shall ensure informed consent for telepsychology includes a description of any limitations of services as a result of the technology utilized. 243.7(4) A licensee shall gain competency in the use of a particular technology prior to utilizing it in practice. A licensee shall only use technologies that are secure and functioning properly. 243.7(5) A licensee shall apply the same ethical and professional standards of care and professional practice that are required when providing in-person psychological services. If the same standard of care cannot be met with telepsychology, a licensee shall not utilize telepsychology.

645—243.8(154B) Records. A licensee shall complete clinical records as soon as practicable to ensure continuity of services. All clinical records shall be completed within 30 days after the service or evaluation is complete in the absence of significant extenuating circumstances. Clinical records and psychotherapy notes shall be retained for at least seven years after the last date of service, or until at least three years after a minor reaches the age of 18, whichever is later. Forensic records shall be completed and retained consistent with the APA Specialty Guidelines for Forensic Psychology. These rules are intended to implement Iowa Code chapters 147, 154B, and 272C.

ITEM 3. Amend rule 645—244.12(148,154B) as follows:

645—244.12(148,154B) Joint waiver or variance—joint rule. Any rule identified as a joint rule may only be waived upon approval by both the board and the board of medicine.ARC 5611CReal Estate Appraiser Examining Board[193F]Notice of Intended Action

Proposing rule making related to five-year review of rules and providing an opportunity for public comment

The Real Estate Appraiser Examining Board hereby proposes to amend Chapter 1, “Organization and Administration,” Chapter 3, “General Provisions for Examinations,” Chapter 4, “Associate Real Property Appraiser,” Chapter 5, “Certified Residential Real Property Appraiser,” Chapter 6, “Certified General Real Property Appraiser,” Chapter 7, “Disciplinary Actions Against Certified and Associate Appraisers,” Chapter 8, “Investigations and Disciplinary Procedures,” Chapter 9, “Renewal, Expiration and Reinstatement of Certificates and Registrations, and Inactive Status,” Chapter 10, “Reciprocity,” Chapter 11, “Continuing Education,” and Chapter 12, “Fees,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code chapter 543D.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapter 543D.Purpose and Summary The proposed amendments implement what the Board considers to be high- and medium-priority changes based on a five-year rolling review of its rules. This is the second level of changes from the Board. The highest-priority changes have already gone through the rule-making process and became effective on November 25, 2020. These amendments will reduce conflict between the rules and statute, reduce conflict within the rules and better follow current internal practices.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any. Public Comment Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Board no later than 4:30 p.m. on May 25, 2021. Comments should be directed to: Brandy March Real Estate Appraiser Examining Board East Grand Office Park 200 East Grand Avenue, Suite 350 Des Moines, Iowa 50309 Phone: 515.725.9025 Email: brandy.march@iowa.gov Public Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: May 25, 2021 11 a.m. to 12 noon Small Conference Room, Third Floor 200 East Grand Avenue Des Moines, Iowa Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Board and advise of specific needs. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:

ITEM 1. Amend subrule 1.20(2) as follows: 1.20(2) Summary of certification requirements. As more fully set out in 193F—Chapters 3, 5, and 6, a person who is in the process of completing the education, experience, and examination required for certification as a certified appraiser may not submit an application for certification to the board until all prerequisites have been satisfactorily completed. The prerequisites include the following: qualifying college and core criteria appraiser education, qualifying examination, 1,500 hours of qualifying experience in a minimum of 12 months for residential appraisers or 3,000 hours of qualifying experience in a minimum of 18 months for general appraisers, and work product review. Work product review requires numerous steps, as provided in 193F—5.6(543D) and 193F—6.6(543D). The work product review process includes the applicant’s submission of a work product experience log to the board; the board’s selection of three appraisals to review; communication of the selected appraisals to the applicant; the applicant’s submission of the three appraisals and associated work files to the board in electronic and paper formats; review of the appraisals and work files by a reviewer retained by the board; the reviewer’s submission of review reports to the board; a meeting between the applicant, the applicant’s supervisor, and the board’s work product review committee; a formal board vote at a board meeting; and communication of approval, denial, or deferral to the applicant. All of these steps must be completed before an applicant with approved work product can submit an application for certification to the board office.If the applicant’s supervisor is unable to attend the work product review meeting, the applicant, or the applicant’s supervisor, must submit the circumstances surrounding the absence to the executive officer and receive approval from the executive officer for the supervisor’s absence.

ITEM 2. Amend rule 193F—1.23(272C,543D) as follows:

193F—1.23(272C,543D) Applications. Unless otherwise provided by rule of the board, abandoned applications shall be deemed withdrawn. An application is abandoned if the applicant has not accessed or modified the application through the board’s electronic licensing database within the preceding six months, or when approved by the board but the applicant has failed to pay any required fees within 30 calendar days of the date approved by the board. For purposes of this rule, “application” means any request, application, registration, or petition submitted to the board through the licensing database, including but not limited to the following:

Add supervisor appraiser;
Associate appraiser registration;
Conversion application;
Course application;
Course instructor application;
Course provider application;
Examination and experience application;
Formal wall certificate request;
Pre-/post-course approval request;
Reactivation application;
Reciprocity application;
Reinstatement application;
Removal of associate from supervisor;
Removal of supervisor from associate;
Renewal application;
Temporary practice permit application;
General application to apply military service to an experience or educational requirement for licensure;
Background packet request;
Petition for waiver from administrative rules;
Request for change of legal name;
Request for verification (license and/or examination history); or
Request to change license address.

ITEM 3. Amend rule 193F—3.2(543D), introductory paragraph, as follows:

193F—3.2(543D) Examinations. Examinations for certified residential real property appraisers and certified general real property appraisers shall be AQB-endorsed and administered by the board or its authorized representative as often as the board deems necessary, but not less than one time per year.Successful completion of the examination is valid for a period of 24 months.

ITEM 4. Amend subrule 3.4(1) as follows: 3.4(1) All initial applications for certification or associate registration shall be made on forms provided by the board. The board may deny an application as described in Iowa Code sections 543D.12 and 543D.17. Specific examples of grounds for denial include knowingly making a false statement, submitting false information, refusing to provide complete information in response to a question in an application for certification, or participating in any form of fraud or misrepresentation; the revocation of another professional license; or, subject to the limitations and processes set forth in Iowa Code section 272C.15 and corresponding implementing rules located at 193F—Chapter 13, a conviction, including a conviction based upon a plea of guilty or nolo contendere, of a crime which is substantially related to the qualifications, functions and duties of a person developing real estate appraisals and communicating real estate appraisals to others. The board may also deny an application based on disciplinary actionpending or taken against an associate appraiser registrationapplicant consistent with Iowa Code section 272C.12.

ITEM 5. Renumber subrules 4.1(4) and 4.1(5) as 4.1(5) and 4.1(6).

ITEM 6. Adopt the following new subrule 4.1(4): 4.1(4) Supervision. An applicant must obtain the services of a certified appraiser who meets the supervisor qualification criteria in rule 193F—15.3(543D).

ITEM 7. Amend renumbered subrule 4.1(5) as follows: 4.1(5) Application form. After completing the education, training, background check, and obtainment of a supervisor outlined in subrules 4.1(1) and 4.1(2)to 4.1(4), a person applying for registration as an associate appraiser shall apply for registration on the form provided by the board. The form and the appropriate application fee shall be submitted to the board.A sufficient application within the meaning of Iowa Code section 17A.18(2) must: a. Be on a form prescribed by the board or, in the event there are no paper forms, be submitted through the state’s database; b. Be signed by the applicant and supervisor(s), be certified as accurate, or display an electronic signature by the applicant and supervisor(s) if submitted electronically; c. Be fully completed; d. Reflect, on its face, full compliance with all applicable qualifying education requirements including the supervisory appraiser/trainee appraiser course; e. Be accompanied by the proper fee. The fee shall be deemed improper if, for instance, the amount is incorrect, the fee was not included with the application, the credit card number provided by the applicant is incorrect, the date of expiration of a credit card is omitted or incorrect, the attempted credit card transaction is rejected, or the applicant’s check is returned for insufficient funds or written on a closed account.

ITEM 8. Amend subrule 4.2(4) as follows: 4.2(4) Logs. An associate appraiser shall maintain an appraisal experience log that includes all information required by the AQBand the board as a precondition for certification and shall maintain the log contemporaneously with the performance of supervised real property appraisal services. Every log page shall have thenames and signatures of the associate appraiser and supervisory appraiser, the state certification number of the supervisory appraiser, and the date of signaturesignatures. Required log entries shall, at a minimum, include the following for each appraisal: a. Type of property; b. Date of report; c. AddressComplete address of appraised propertyor full legal description; d. A specific description of work performed by the associate appraiser, and scope of review, and supervision of the supervisory appraiser; e. Number of actual work hours by the associate on the assignment; and f. The approach(es) to value utilized in the report.

ITEM 9. Amend subrule 4.6(1) as follows: 4.6(1) In order to reinstate or reactivate an associate registration that has lapsed or been placed in inactiveor retired status, the applicant must complete all continuing education required for reinstatement pursuant to 193F—subrule 11.2(5). For purposes of this rule, in addition to the most recent edition of a seven-hour USPAP course, the board shall allow for continuing education only those courses that have been AQB-approved as qualifying education required for certification, as outlined in rules 193F—5.2(543D) and 193F—6.2(543D). The purpose of this requirement is to ensure that those associates reinstating a lapsed, retired, or inactive registration are progressing toward certification. Any qualifying education course taken under this rule as continuing education shall also apply as qualifying education toward certification. If the applicant has completed all qualifying education prior to applying to reinstate a lapsed, retired, or inactive associate registration, the applicant may use any approved continuing education course as provided in 193F—Chapter 11, in addition to the required seven-hour USPAP update course, toward the continuing education required for reinstatement.

ITEM 10. Amend subrule 5.3(1) as follows: 5.3(1) Qualification.a. In order to qualify to sit for the certified residential real property appraiser examination, the applicant must:(1) Completecomplete the board’s application form and provide copies of documentation of completion of all courses claimed that qualify the applicant to sit for the examination.A sufficient application within the meaning of Iowa Code section 17A.18(2) must: a. Be on a form prescribed by the board or, in the event there are no paper forms, be submitted through the state’s database; b. Be signed by the applicant, be certified as accurate, or display an electronic signature by the applicant if submitted electronically; c. Be fully completed; d. Reflect, on its face, full compliance with all applicable continuing education requirements; and e. Be accompanied by the proper fee specified in 193F—Chapter 12. The fee shall be deemed improper if, for instance, the amount is incorrect, the fee was not included with the application, the credit card number provided by the applicant is incorrect, the date of expiration of a credit card is omitted or incorrect, the attempted credit card transaction is rejected, or the applicant’s check is returned for insufficient funds or written on a closed account.(2) Pay the fee specified in 193F—Chapter 12.b. The core criteria, collegiate education, and experience must be completed and the documentation submitted to the board at the time of application to sit for the examination.

ITEM 11. Amend rule 193F—5.6(543D) as follows:

193F—5.6(543D) Work product review. 5.6(1) An applicant shall submit a complete appraisal log at the time of application for examination and work product review. The board will select three appraisalsthat demonstrate a diversity of experience and approaches to value over various time frames for work product review and request that the applicant submit fourone paper copiescopy of each report and fourone paper copiescopy of each work file in addition to an electronic format requested by the board for each of the selected appraisals along with the appropriate form and fee.The work product submission shall not be redacted by the applicant; however, the applicant may request the reports remain confidential as specified in subrule 5.6(2). The fee for work product review of the appraisals is provided in 193F—Chapter 12. The board may select the appraisals at random from the entire log or within certain types of appraisals. The board reserves the right to request one or more additional appraisals if those submitted by the applicant raise issues concerning the applicant’s competency or compliance with applicable appraisal standards or the degree to which the submitted appraisals are representative of the applicant’s work product. Such additional appraisals may be selected at random from the applicant’s log or may be selected specifically to provide an example of the applicant’s work product regarding a particular type of appraisal. 5.6(2) The board shall treat all appraisals received as public records unless the applicant notifies the board at the time of submission that a submitted appraisal is subject to the confidentiality provisions of appraisal standards or is otherwise confidential under state or federal law. While applicants are encouraged to submit appraisals actually performed for clients, applicants may submit one or more demonstration appraisals if the appraisals are prepared based on factual information in the same manner as applicable to actual appraisal assignments and are clearly marked as demonstration appraisals. Experience gained for work without a traditional client (i.e., a client hiring an appraiser for a business purpose), for example a demonstration appraisal, cannot exceed 50 percent of the total experience requirement. 5.6(3) An applicant seeking to upgrade to a certified residential real property appraiser shall submit three residential appraisals for review. 5.6(4) The board will submit the appraisals to a peer review consultant for an opinion on the appraiser’s compliance with applicable appraisal standards. 5.6(5) The work product review process is not intended as an endorsement of an applicant’s work product. No applicant or appraiser shall represent the results of work product review in communications with a client or in marketing to potential clients in a manner which falsely portrays the board’s work product review as an endorsement of the appraiser or the appraiser’s work product. Failure to comply with this prohibition may be grounds for discipline as a practice harmful or detrimental to the public. 5.6(6) The board views work product review, in part, as an educational process. While the board may deny an application based on an applicant’s failure to adhere to appraisal standards or otherwise demonstrate a level of competency upon which the public interest can be protected, the board will attempt to work with applicants deemed in need of assistance to arrive at a mutually agreeable remedial plan. A remedial plan may include additional education, desk review, a mentoring program, or additional precertification experience. 5.6(7) An applicant who is denied certification based on the work product review described in this rule, or on any other ground, shall be entitled to a contested case hearing as provided in rule 193F—20.39(546,543D,272C). Notice of denial shall specify the grounds for denial, which may include any of the work performance-related grounds for discipline against a certified appraiser. 5.6(8) If probable cause exists, the board may open a disciplinary investigation against a certificate holder based on the work product review of an applicant. A potential disciplinary action could arise, for example, if the applicant is a certified residential real property appraiser seeking an upgrade to a certified general real property appraiser, or where the applicant is uncertified and is working under the supervision of a certified real property appraiser who cosigned the appraisal report. 5.6(9) After accumulating a minimum of 500 hours of appraisal experience, an applicant may voluntarily submit work product to the board to be reviewed by a peer reviewer for educational purposes only. A maximum of three reports may be submitted for review during the experience portion of the certification process.Work product submitted for educational purposes only will not result in disciplinary action on either the associate appraiser or the associate appraiser’s supervisor so long as the appraisal review does not reveal negligent or egregious errors or omissions. The fee for voluntary submissions of work product for review is provided in 193F—Chapter 12. 5.6(10) The board will retain the appraisals for as long as needed as documentation of the board’s actions for the Appraisal Subcommittee or as needed in a pending proceeding involving the work product of the applicant or the applicant’s supervisor. When no longer needed for such purposes, the work product may be retained or destroyed at the board’s discretion.

ITEM 12. Amend subrule 6.3(1) as follows: 6.3(1) In order to qualify to sit for the certified general real property appraiser examination, the applicant must:a. Completecomplete the board’s application form and provide copies of documentation of completion of all courses claimed that qualify the applicant to sit for the examination.A sufficient application within the meaning of Iowa Code section 17A.18(2) must: a. Be on a form prescribed by the board or, in the event there are no paper forms, be submitted through the state’s database; b. Be signed by the applicant, be certified as accurate, or display an electronic signature by the applicant if submitted electronically; c. Be fully completed; d. Reflect, on its face, full compliance with all applicable continuing education requirements; and e. Be accompanied by the proper fee specified in 193F—Chapter 12. The fee shall be deemed improper if, for instance, the amount is incorrect, the fee was not included with the application, the credit card number provided by the applicant is incorrect, the date of expiration of a credit card is omitted or incorrect, the attempted credit card transaction is rejected, or the applicant’s check is returned for insufficient funds or written on a closed account. b. Pay the fee specified in 193F—Chapter 12.c. The degree, educationcore criteria, collegiate education, and experience must be completed and documentation submitted to the board at the time of application to sit for the examination.

ITEM 13. Amend rule 193F—6.6(543D) as follows:

193F—6.6(543D) Work product review. 6.6(1) An applicant shall submit a complete appraisal log at the time of application for examination and work product review. The board will then select three appraisalsthat demonstrate a diversity of experience and approaches to value over various time frames for work product review and request that the applicant submit fourone paper copiescopy of each report and fourone paper copiescopy of each work file in addition to an electronic format requested by the board for each of the selected appraisals along with the appropriate form and fee.The work product submission shall not be redacted by the applicant; however, the applicant may request the reports remain confidential as specified in subrule 6.6(2). The fee for work product review of the appraisals is provided in 193F—Chapter 12. The board may select the appraisals at random from the entire log or within certain types of appraisals. The board reserves the right to request one or more additional appraisals if those submitted by the applicant raise issues concerning the applicant’s competency or compliance with applicable appraisal standards or the degree to which the submitted appraisals are representative of the applicant’s work product. Such additional appraisals may be selected at random from the applicant’s log or may be selected specifically to provide an example of the applicant’s work product regarding a particular type of appraisal. 6.6(2) The board shall treat all appraisals received as public records unless the applicant notifies the board at the time of submission that a submitted appraisal is subject to the confidentiality provisions of appraisal standards or is otherwise confidential under state or federal law. While applicants are encouraged to submit appraisals actually performed for clients, applicants may submit one or more demonstration appraisals if the appraisals are prepared based on factual information in the same manner as applicable to actual appraisal assignments and are clearly marked as demonstration appraisals. Experience gained for work without a traditional client (i.e., a client hiring an appraiser for a business purpose), for example a demonstration appraisal, cannot exceed 50 percent of the total experience requirement. 6.6(3) An applicant seeking original or upgrade certification as a certified general real property appraiser shall submit one residential appraisal and two nonresidential appraisals for review. 6.6(4) The board, or a committee of the board, will evaluate the submitted work product. The board will submit the appraisals to a peer review consultant for an opinion on the appraiser’s compliance with applicable appraisal standards. 6.6(5) The work product review process is not intended as an endorsement of an applicant’s work product. No applicant or appraiser shall represent the results of work product review in communications with a client or in marketing to potential clients in a manner which falsely portrays the board’s work product review as an endorsement of the appraiser or the appraiser’s work product. Failure to comply with this prohibition may be grounds for discipline as a practice harmful or detrimental to the public. 6.6(6) The board views work product review, in part, as an educational process. While the board may deny an application based on an applicant’s failure to adhere to appraisal standards or otherwise demonstrate a level of competency upon which the public interest can be protected, the board will attempt to work with applicants deemed in need of assistance to arrive at a mutually agreeable remedial plan. A remedial plan may include additional education, desk review, a mentoring program, or additional precertification experience. 6.6(7) An applicant who is denied certification based on the work product review described in this rule, or on any other ground, shall be entitled to a contested case hearing as provided in rule 193F—20.39(546,543D,272C). Notice of denial shall specify the grounds for denial, which may include any of the work performance-related grounds for discipline against a certified appraiser. 6.6(8) If probable cause exists, the board may open a disciplinary investigation against a certificate holder based on the work product review of an applicant. A potential disciplinary action could arise, for example, if the applicant is a certified residential real property appraiser seeking an upgrade to a certified general real property appraiser, or where the applicant is uncertified and is working under the supervision of a certified real property appraiser who cosigned the appraisal report. 6.6(9) After accumulating a minimum of 500 hours of appraisal experience, an applicant may voluntarily submit work product to the board to be reviewed by a peer reviewer for educational purposes only. A maximum of three reports may be submitted for review during the experience portion of the certification process.Work product submitted for educational purposes only will not result in disciplinary action on either the associate appraiser or the associate appraiser’s supervisor so long as the appraisal review did not reveal negligent or egregious errors or omissions. The fee for voluntary submissions of work product for review is provided in 193F—Chapter 12. 6.6(10) The board will retain the appraisals for as long as needed as documentation of the board’s actions for the Appraisal Subcommittee or as needed in a pending proceeding involving the work product of the applicant or the applicant’s supervisor. When no longer needed for such purposes, the work product may be retained or destroyed at the board’s discretion.

ITEM 14. Amend paragraph 7.3(3)"h" as follows: h. Representing oneself as a registered associate appraiser or certified appraiser when one’s registration or certificate has been suspended, revoked, surrendered, or placed on inactiveor retired status, or has lapsed.

ITEM 15. Amend rule 193F—8.14(543D) as follows:

193F—8.14(543D) Decisions. The board shall make findings of fact and conclusions of law, and may take one or more of the following actionsincluding but not limited to:

Dismiss the charges;
Suspend or revoke the appraiser’s certification or associate’s registration as authorized by law;
Impose civil penalties, the amount which shall be set at the discretion of the board, but which shall not exceed $1000 per violation. Civil penalties may be imposed for any of the disciplinary violations specified in Iowa Code section 543D.17 and chapter 272C or for any repeat offenses;
Impose a period of probation, either with or without conditions;
Require reexamination;
Require additional professional education, reeducation, or continuing education;
Issue a citation and a warning;
Require desk review of the appraiser’s work product;
Issue a consent ordereither with or without conditions;
Require consultation with one or more peer reviewers;
Revoke an appraiser’s eligibility to supervise;
Require submission of monthly logs;

10Impose any other form of discipline authorized by a provision of law that the board, in its discretion, believes is warranted under the circumstances of the case.

ITEM 16. Amend paragraph 8.15(1)"h" as follows: h. Whether the respondent practiced with a lapsed, inactive,retired, suspended, revoked, or surrendered certificate or registration.

ITEM 17. Amend 193F—Chapter 9, title, as follows:RENEWAL, EXPIRATION AND REINSTATEMENT OF CERTIFICATES AND REGISTRATIONS,RETIRED STATUS, AND INACTIVE STATUS

ITEM 18. Amend rule 193F—9.5(272C,543D) as follows:

193F—9.5(272C,543D) Inactive status. 9.5(1) General purpose. This rule establishes a procedure under which a person issued a certificate or associate registration may apply to the board to register in inactive status. Registration under this rule is available to a certificate holder or associate registrant residing within or outside the state of Iowa who is not engaged in Iowa in any practice for which a certificate or associate registration is required. A person eligible to register as inactive may, as an alternative to such registration, allow a certificate or associate registration to lapse. The board will continue to maintain a data base on persons registered as inactive, including information which may not routinely be maintained after a certificate or associate registration has lapsed through failure to renew. A person who registers as inactive will accordingly receive renewal applications, board newsletters and other mass communications from the board. Because a person registered in inactive status may not practice in Iowa or hold oneself out to the public as authorized to practice as a certified appraiser or registered associate appraiser, such person is not required to complete continuing education. 9.5(2) Eligibility. A person holding a lapsed or active certificate as a real property appraiser, or a lapsed or active registration as a registered associate, which has not been revoked or suspended may apply on forms provided by the board to register as inactive if the person is not engaged in the state of Iowa in any practice for which a certificate or associate registration is required. Such a person may be actively engaged in the practice of real estate appraising in another jurisdiction. Such a person may also engage in such appraisal practices as may be performed in Iowa by persons who do not hold a certificate as a real property appraiser or associate registration as long as the person does not hold oneself out to the public as a certified or associate real estate appraiser. 9.5(3) Affirmation. The application form shall contain a statement in which the applicant affirms that the applicant will not engage in any practice prohibited by subrule 9.5(2) in Iowa without first complying with all rules governing reactivation to active status. A person in inactive status may reactivate to active status at any time pursuant to subrule 9.5(6). 9.5(4) Renewal. A person registered as inactive may renew the person’s certificate or associate registrationto inactive status on the biennial schedule described in 193F—9.1(272C,543D). Such person is exempt from the continuing education requirements for renewal and will be charged a reduced rate, as provided in 193F—Chapter 12. An inactive certificate or associate registration shall lapse if not timely renewed. An active certificate holder or associate registrant may renew as inactive if such person has not completed all continuing education requirements and may thereafter apply for active status, through the reactivation process as provided in subrule 9.6(6), when the deficiency has been remedied. 9.5(5) Grounds for discipline. Certified and associate appraisers are not authorized to practice or to hold themselves out to the public as certified or registered appraisers during the period of time that the certificate or registration is inretired or inactive status. Any violation of this subrule shall be grounds for discipline. 9.5(6) Reactivation. A person registered as inactive shall apply to reactivate to active status prior to engaging in any practice in Iowa that requires certification or associate registration. An application to reactivate to active status shall be on a form provided by the board, shall demonstrate full compliance with all applicable continuing education requirements, and shall be accompanied by a fee to reactivate an inactive license and the biennial fee for active status as provided in rule 193F—12.1(543D). Prior to reactivation to active status, the applicant must complete all education that would have been required had the applicant been on active status, including the most recent seven-hour USPAP update course. All such continuing education must be verified whether or not the applicant has been in active practice in another jurisdiction. Additionally, the special continuing education requirements that apply to associate appraisers reinstating a lapsed registration, as provided in subrule 9.4(6), shall apply to associate appraisers reactivating to active status following a period of inactive status of 12 months or longer. Such an applicant shall be given credit for the most recent renewal fees previously paid if the applicant applies to reactivate in the same biennium at other than the applicant’s regular renewal date. An applicant changing from active to inactive status during a biennial renewal period shall not, however, be entitled to a refund of any of the fees previously paid to attain active status.

ITEM 19. Renumber rule 193F—9.6(272C,543D) as 193F—9.7(272C,543D).

ITEM 20. Adopt the following new rule 193F—9.6(272C,543D):

193F—9.6(272C,543D) Retired status. An associate or certified appraiser may place the associate or certified appraiser’s registration or certification in retired status. For purposes of this rule, the term “retired” means any person who has retired from working as an associate or certified appraiser in all jurisdictions and who has requested to be placed in retired status on forms provided by the board. An associate or certified appraiser may request the associate or certified appraiser’s registration or certification be placed into active status so long as the associate or certified appraiser has not renewed the registration or certification to inactive status or allowed the registration or certification to lapse before submitting the application to return to active status. The board will not provide a refund of biennial registration and certification fees when an application for retired status is granted in a biennium in which the applicant has previously paid the biennial fees for either active or inactive status. Associate and certified appraisers in retired status are exempt from the renewal requirement. While in retired status, appraisers may not hold themselves out to the public as being registered or certified appraisers during the period of time that the registration or certification is in retired status. For all intents and purposes, retired status is similar to lapsed status with the exceptions that: 9.6(1) The associate or certified appraiser may place the associate or certified appraiser’s registration or certification in retired status at any point; 9.6(2) Until such time as the registration or certification expires, the applicant will not be subject to the reactivation or reinstatement criteria; 9.6(3) If the associate or certified appraiser places the registration or certification into inactive status at the time of renewal, or the applicant lets the registration or certification lapse, the applicant will be required to reactivate or reinstate pursuant to rule 193F—4.6(272C,543D), or subrule 9.4(5) or 9.5(6) as applicable.

ITEM 21. Amend renumbered rule 193F—9.7(272C,543D) as follows:

193F—9.7(272C,543D) Property of the board. Every certificate or associate registration issued by the board shall, while it remains in the possession of the holder, be preserved by the holder but shall, nevertheless, always remain the property of the board. In the event that a certificate or associate registration is revoked or suspended, or is not renewed, or is registered in inactive status,or is requested to be placed in retired status, it shall, on demand, be delivered by the holder to the board. The board shall generally not request return of a certificate or associate registration if it has not been revoked, suspended or voluntarily surrendered in a disciplinary action, but may do so if the board reasonably determines that grounds exist to believe that a person holding a lapsed, retired, or inactive certificate or associate registration has engaged in a practice for which active certification or registration is required.

ITEM 22. Amend subrule 10.1(2) as follows: 10.1(2) The board may issue a reciprocal certificate to a nonresident individual who is certified and demonstrates good standing in another state. An appraiser who is listed in good standing on the National Registry of the Appraisal Subcommittee satisfies the requirement that good standing be demonstrated and does not need to submit additional documentation. An appraiser who is not listed in good standing on the National Registry of the Appraisal Subcommittee must supply an official letter of good standing issued by the licensing board of the appraiser’s resident state and bearing its seal. An appraiser may verify the appraiser’s status on the National Registry of the Appraisal Subcommittee by accessing theASC’s website at www.asc.gov.

ITEM 23. Amend rule 193F—10.2(543D) as follows:

193F—10.2(543D) Nonresident temporary practice. 10.2(1) The board will recognize, on a temporary basis, the certification of an appraiser issued by another statefor a period of six months, unless the applicant requests, and is approved for, a one-time extension, of which the one-time extension will not exceed six months, prior to the expiration of the original issued temporary practice permit. 10.2(2) The appraiser must register with the board and identify the property(ies) to be appraised,and the name and address of the client and the estimated length of time the appraiser will be in the state. The appraiser must demonstrate good standing to be considered for a temporary practice permit. An appraiser who is listed in good standing on the National Registry of the Appraisal Subcommittee satisfies the requirement that good standing be demonstrated and does not need to submit additional documentation. An appraiser who is not listed in good standing on the National Registry of the Appraisal Subcommittee must supply an official letter of good standing issued by the licensing board of the appraiser’s resident state and bearing its seal. An appraiser may verify the appraiser’s status on the National Registry of the Appraisal Subcommittee by accessing theASC’s website at www.asc.gov. Registration shall be on a form provided by the board and submitted to the board office prior to the performance of the appraisal. The appraiser shall pay the appropriate fee as required inrule 193F—12.1(543D). 10.2(3) An appraiser holding an inactive, retired, or lapsed certificate as a real estate appraiser in Iowa may apply for a temporary practice permit if the appraiser holds an active, unexpired certificate as a real estate appraiser in good standing in another jurisdiction and is otherwise eligible for a temporary practice permit. 10.2(4) An appraiser who was previously a registered associate or certified appraiser in Iowa whose Iowa registration or certificate has been revoked or surrendered in connection with a disciplinary investigation or proceeding is ineligible to apply for a temporary practice permit in Iowa. 10.2(5) The board may deny an application for a temporary practice permit if the applicant has been disciplined in Iowa or another jurisdiction, a disciplinary investigation or proceeding is pending in Iowa, the person has been convicted of a crime that is a ground for discipline in Iowa, or it appears the applicant is applying for a temporary permit because the applicant would not qualify to renew or reinstate in active status in Iowa and the application for a temporary permit is made primarily to compromise compliance with Iowa laws and rules. 10.2(6) An appraiser holding an inactive, retired, or lapsed Iowa certificate who applies to reinstate to active status in Iowa shall not be given credit for any fees paid during the biennial period for one or more temporary practice permits. 10.2(7) An appraiser holding a license to practice as a real estate appraiser in another jurisdiction may practice in Iowa without applying for a temporary practice permit or paying any fees as long as the appraiser does not perform appraisal services in Iowa for which certification is required by state or federal law, rule or policy. 10.2(8) The board must receive and approve an application for a temporary practice permit before the applicant is eligible to practice in Iowa under a temporary practice permit. Applicants are encouraged to submit applications by email or facsimile to avoid the possible delays of mail service, because the board will not approve an application with a retroactive start date. The board shall grant or deny all applications for temporary practice permits as quickly as reasonably feasible and no later than five days of receipt of a completed application. Applicants shall use the form prescribed by the board. Applicants disclosing discipline or criminal convictions shall attach documentation from which the board can determine if the discipline or criminal history would be a ground to deny the application. Falsification of information or failure to disclose material information shall be a ground to deny the application and may form the basis to deny any subsequent application or an application to reinstate a lapsed or inactive Iowa certificate.

ITEM 24. Amend rule 193F—11.2(272C,543D) as follows:

193F—11.2(272C,543D) Continuing education requirements. 11.2(1) Certified residential, certified general and associate appraisers must demonstrate compliance with the following continuing education requirements as a condition of biennial renewal: a. A minimum of 28 credit hours in approved continuing education programs must be acquired during the two-year renewal period. Carryover hours from a previous renewal period are not allowed. b. The purpose of continuing education is to ensure that the appraiser participates in a program that maintains and increases the appraiser’s skill, knowledge and competency in real estate appraising. Credit may be granted for educational offerings that are consistent with the purpose of continuing education. A minimum of 21 of the required 28 credit hours must involve courses that address one or more of the subject areas listed in subrule 11.4(2). c. Appraisers must successfully complete the seven-hour National USPAP Update Course, or its equivalent, each two-year renewal cycle. Equivalency shall be determined through the AQB Course Approval Program or by an alternate method established by the AQB. USPAP continuing education credit shall be awarded only when the class is instructed by an AQB-certified instructor(s) and when the class is instructed by at least one state-certified residential or state-certified general appraiser. Individuals who are credentialed in more than one jurisdiction shall not have to take more than one seven-hour National USPAP Update Course within a two-calendar-year period for the purposes of meeting AQB criteria. d. With the exception of continuing education obtained during the 30-day grace period authorized by and subject to and in accordance with 193F—subrule 9.4(2), all continuing education claimed on a biennial renewal must have been acquired during the renewal period. In addition, all continuing education claimed on a biennial renewal must have been actually taken and completed prior to the renewal application being submitted to the board. 11.2(2) All continuing education credit hours may be acquired in approved classroom or distance education programs. 11.2(3) A maximum of 14 of the required 28 credit hours may be claimed by an instructor for teaching one or more approved continuing education programs in an amount equal to the credit hours approved for attendees. Instructors claiming such credit must teach the appraisal course during the renewal cycle in which credit is claimed and may not claim the course more than once in the renewal cycle. The board may request supportive documentation to ascertain course content and to verify the date(s), time, place and hours taught. 11.2(4) An applicant seeking to renew an initial certificate or registration issued less than 185 days prior to renewal is not required to report any continuing education. An applicant seeking to renew an initial certificate or registration issued for 185 days to 365 days prior to renewal must demonstrate completion of at least 14 credit hours, including 7 credit hours of the most recent National USPAP Update. An applicant seeking to renew an initial certificate or registration issued 365 days prior to renewal or more must demonstrate completion of at least 28 credit hours, including 7 credit hours of the most recent National USPAP Update. 11.2(5) Prior to reinstatement or reactivation of a certified general registration or a certified residential registration, a certified credential holder in inactive, retired, or lapsed status must complete all required continuing education hours that would have been required if the certified credential holder was in active status. The required hours must also include the most recent edition of a 7-hourseven-hour National USPAP Update Course. Waivers may not be granted to credential holders who have failed to meet the continuing education requirements. 11.2(6) During each two-year renewal period, a continuing education program may be taken for credit only once, except USPAP coursesas long as it is not the same USPAP course (e.g., an appraiser may take the 2018-2019 USPAP and the 2020-2021 USPAP update course but may not take two 2018-2019 USPAP update courses). 11.2(7) Successful completion of a continuing education program requires that at least 50 minutes of every class hour be attended by the student. Continuing education credits shall not be granted to attendees who are present for less than 50 minutes of every class hour. 11.2(8) An applicant may claim continuing education credits that have been approved by another jurisdiction that has a continuing education requirement for renewal of a real estate appraisal certificate if the applicable program was approved by the other jurisdiction’s appraisal regulatory body or the AQB for continuing education purposes at the time the applicant completed the course. The burden of proof is on the applicant to demonstrate that a claimed course was approved by either the other jurisdiction or the AQB for continuing education purposes at the time the applicant completed the course. All other programs must be approved upon application to the board pursuant to rules 193F—11.4(272C,543D), 193F—11.5(272C,543D) and 193F—11.6(272C,543D). 11.2(9) A person certified or registered to practice real estate appraising in Iowa shall be deemed to have complied with Iowa’s continuing education requirements for periods in which the person is a resident of another state or district having continuing education requirements for real estate appraising and meets all requirements of that state or district. Waivers may not be granted to credential holders who have failed to meet the continuing education requirements. Deferrals may not be granted to credential holders, except in the case of persons returning from active military duty. Credential holders returning from active military duty may be placed in active status for a period of up to 90 days pending completion of all continuing education requirements. To qualify, the credential holder must submit a request in writing and provide a copy of the military orders.

ITEM 25. Amend subrule 11.7(3) as follows: 11.7(3) All required forms and attachments must be submitted for approval at least 30 days prior to the first offering of each program. The board will approve or deny each program, in whole or part, within 15 days of the date the board receives the fee anda fully completed application.Payments for course program applications must be made within 30 calendar days of the date the application is approved by the board or the application approval may be reversed.

ITEM 26. Amend rule 193F—12.1(543D) as follows:

193F—12.1(543D) Required fees. The following fee schedule applies to certified general, certified residential and associate appraisers.Initial examination application fee $150Examination fee (and reexamination fee) $145Biennial registration fee for active status (initial, reciprocal, renewal): Certified real property appraiser > one year $200 Certified real property appraiser < one year$100 Associate real property appraiser > one year $200 Associate real property appraiser < one year$100Biennial registration fee for inactive status (initial, reciprocal, renewal): Certified real property appraiser $100 Associate real property appraiser$50Temporary practice permit fee (each request) $100Fee to reinstate a lapsedor retired license (lapsedor retired to active status)$150 (plus the registration fee)Fee to reactivate an inactiveor retired license (inactiveor retired to active status)$50 (plus the registration fee) Formal wall certificate $25Work product review fees: Original submission, certified residential$300 Original submission, certified general$650 Additional residential reports as requested by the board$150 per report Additional nonresidential reports as requested by the board$250 per report Voluntary submission of residential reports for review$150 per report Voluntary submission of nonresidential reports for review$250 per reportCourse application fee (non-AQB-approved courses and secondary providers)$50Pre-/post-course application fee$25Background check$51ASC National Registry fee > one year, separate from registration fee$80ASC National Registry fee < one year, separate from registration fee$40Fee to add supervisory appraiser$25Fee to add course instructor$10Waiver to administrative rules$25Late renewal fee (associate, certified)$50

ITEM 27. Amend rule 193F—12.3(543D) as follows:

193F—12.3(543D) Federal registry fee. The board shall collect and transmit to the Federal Financial Institutions Examination Council, on an annual basis, a roster of individuals who have received certification or registration as real property appraisers and a registry fee of $40 for each individual listed on the roster. The registry fee is included in the registration fee.ARC 5613CRevenue Department[701]Notice of Intended Action

Proposing rule making related to relief from joint and several liability and providing an opportunity for public comment

The Revenue Department hereby proposes to amend Chapter 38, “Administration,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 422.21 and 422.68.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 422.21.Purpose and Summary This proposed rule making updates rule 701—38.15(422) to reflect certain changes to Iowa Code section 422.21(7) and to provide taxpayers with additional clarity when seeking relief from joint and several liability for tax, penalty, and interest owed to the Department. The proposed changes to the rule describe who may qualify for relief from joint and several liability, the information applicants for relief must submit to the Department, the standard for evaluating whether an individual is eligible for relief, the administrative process for appealing a denial of relief, and the rights of the nonrequesting spouse or former spouse. The amended rule provides that if an individual has sought and received a determination under Section 6015 of the Internal Revenue Code regarding relief from joint and several liability at the federal level, that individual is required to provide that documentation to the Department. In circumstances where the individual seeking relief from joint and several liability has not received a final determination from the Internal Revenue Service regarding the individual’s eligibility for relief at the federal level, the amended rule explains that the applicant bears the burden of showing that the individual is eligible for relief under Section 6015 of the Internal Revenue Code and describes the information the applicant must present to the Department to establish eligibility. The amended rule also clarifies the time period in which a request for relief from joint and several liability must be submitted to the Department and the process through which a taxpayer whose request for relief has been denied may appeal that decision. Additionally, the amended rule addresses the rights of the nonrequesting spouse or former spouse. The amended rule outlines the Department’s role in notifying the nonrequesting spouse or former spouse and describes the information any such notice must contain. Finally, the amended rule articulates the process by which a nonrequesting spouse or former spouse may intervene before the Department in order to participate in the determination of whether relief from joint and several liability is appropriate and lists the information that must be contained in the nonrequesting spouse’s or former spouse’s notice of intervention.Fiscal Impact This rule making has no fiscal impact beyond 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 May 25, 2021. Comments should be directed to: Kurt Konek Department of Revenue Hoover State Office Building P.O. Box 10547 Des Moines, Iowa 50306 Phone: 515.587.0440 Email: kurt.konek@iowa.gov Public Hearing If requested, a public hearing will be held on May 25, 2021, via videoconference call from 10:30 to 11:30 a.m. Persons who wish to participate in the videoconference call should contact Kurt Konek before 4:30 p.m. on May 24, 2021, to facilitate an orderly hearing. A video link and/or conference call number will be provided to participants prior to the hearing. 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—38.15(422) as follows:

701—38.15(422) Relief of innocent spousefrom joint and several liability under Iowa Code section 422.21(7) for substantial understatement of tax attributable to othernonrequesting spouse or former spouse. Marriedor formerly married taxpayers are generally jointly and severally liable for the total tax, penalty, and interest from a joint return or from a return where the spouses file separately on the combined return form. However,pursuant to Iowa Code section 422.21(7), a married person who meetsis eligible for relief under the criteria for an innocent spouse established in Section 6015 of the Internal Revenue Code may be relieved of liability for an understatement ofIowa tax that is attributable to erroneous items of the othernonrequesting spouseor former spouse. For state income tax purposes, the requirements set forth in this rule shall control to the extent that they conflict with Section 6015 of the Internal Revenue Code. 38.15(1) Filing statusrequired for return with an innocent spouserelief from joint and several liability. For state income tax purposes, a marriedor formerly married taxpayer filing a return with a spouse canmay qualify as an innocent spousefor relief from joint and several liability under Iowa Code section 422.21(7) only if the taxpayers filetaxpayer filed a joint return or filefiled separately on thea combined return form. A married taxpayer who files a separate return that has been accepted by the state will not be eligible for innocent spouse status. 38.15(2) Scope of relief for Iowa income tax purposes. An understatement of the tax is the excess of the tax required to be shown over the tax actually shown on the return. An erroneous item is any item resulting in an understatement or deficiency in Iowa taxes to the extent that the item is omitted from, or improperly reported or characterized on, an Iowa tax return, including Iowa deductions and tax credits that would not be included on a federal return. 38.15(3) Presumption and burden of proof when requesting innocent spouse relief. a. Presumption.The department shall presume that a final determination letter or other document issued by the Internal Revenue Service approving a request for innocent spouse relief for the relevant tax years shows that the innocent spouse granted relief by that document qualifies for innocent spouse relief for Iowa income tax purposes for those tax years. If the person seeking innocent spouse relief does not provide the department with a final determination letter or other document issued by the Internal Revenue Service approving a request for innocent spouse relief within the time frame set forth in subrule 38.15(4), the department shall presume that the person seeking innocent spouse relief does not meet the criteria to qualify for innocent spouse relief for Iowa income tax purposes and shall deny the request. The burden is on the person seeking innocent spouse relief to rebut this presumption with other evidence. b. Request without Internal Revenue Service approval.If the department denies a claim for innocent spouse relief, the person seeking innocent spouse relief may protest the department’s determination under 701—Chapter 7. The department will evaluate the protest by applying the criteria set forth in Section 6015 of the Internal Revenue Code and the related regulations. The department will defer to federal court cases, letter rulings, and revenue rulings in interpreting Section 6015 of the Internal Revenue Code and the related regulations. The provisions of Sections 6015(c) and 6015(f) of the Internal Revenue Code regarding relief for separation of liabilities and equitable relief, respectively, are applicable for Iowa income tax purposes for tax years beginning on or after January 1, 2002. The burden is on the person seeking innocent spouse relief to show that the person meets the federal criteria for innocent spouse relief. 38.15(3) Requirement to provide IRS determination or other evidence of eligibility. a. If the person seeking relief from joint and several liability under Iowa Code section 422.21(7) also applied for tax relief from the federal government under Section 6015 of the Internal Revenue Code and received a final determination letter or other document issued by the Internal Revenue Service in connection with relief requested under Section 6015 of the Internal Revenue Code, the person is required to provide the department with a copy of such letter or document within the time frame set forth in subrule 38.15(6). Failure to provide this required information, if it exists, will result in the denial of the request for relief from joint and several liability under Iowa Code section 422.21(7). b. If the person seeking relief from joint and several liability under Iowa Code section 422.21(7) also applied for federal relief under Section 6015 of the Internal Revenue Code but did not receive a final determination letter or other document issued by the Internal Revenue Service in connection with the requested relief, the person must provide the department with other evidence to support the position that the taxpayer is eligible for relief under Iowa Code section 422.21(7). c. If the person seeking relief under Iowa Code section 422.21(7) did not apply for federal relief under Section 6015 of the Internal Revenue Code, the person must submit a written statement to the department detailing the reason for not applying for relief under Section 6015 of the Internal Revenue Code as well as evidence to support the position that the taxpayer is eligible for relief under Iowa Code section 422.21(7). 38.15(4) Burden of proof; evaluation of criteria listed under Section 6015 of the Internal Revenue Code. The burden is on the person seeking relief from joint and several liability to show that the person is eligible for relief under Iowa Code section 422.21(7). In determining whether the person seeking relief from joint and several liability is eligible for relief under Iowa Code section 422.21(7), the department shall apply this rule and the relevant criteria set forth in Section 6015 of the Internal Revenue Code and the related federal regulations. 38.15(5) Protesting a denied request for relief from joint and several liability. If the department denies a claim for relief from joint and several liability under Iowa Code section 422.21(7), the person seeking relief may protest the department’s determination under 701—Chapter 7. The department will evaluate the protest by applying the criteria set forth in this rule and Section 6015 of the Internal Revenue Code and the related regulations. In protest proceedings, the burden is on the person seeking relief from joint and several liability to show that the person meets the criteria for relief under this rule and Section 6015 of the Internal Revenue Code. 38.(4) 38.15(6) Time period for requesting innocent spouse relieffrom joint and several liability. For tax periods beginning on or after January 1, 2004, innocent spouse relieffrom joint and several liability must be requested within two years after the date the department initiates collection action against the person claiming innocent spouse reliefof the notice of assessment. However, an extended time periodapplicant who fails to requestmeet this deadline may be granted equitable relief for innocent spousesif the applicant satisfies the criteria listed under Section 6015(f) of the Internal Revenue Code can be granted under the provisions ofand, if applicable, Internal Revenue Service Notice 2011-70, which became effective July 25, 2011. 38.15(7) Notice to nonrequesting spouse or former spouse. On or before 60 days from the date the person seeking relief from joint and several liability files a request with the department, the department may notify the nonrequesting spouse or former spouse of the request for relief. The notice will advise the nonrequesting spouse or former spouse of the right to intervene by filing a notice of intervention with the department in accordance with subrules 38.15(8) and 38.15(9). The notice shall not include the current address or contact information of the spouse or former spouse requesting relief. The department will use the last-known address of the nonrequesting spouse when sending the notice. 38.15(8) Intervention by nonrequesting spouse or former spouse. If the nonrequesting spouse or former spouse desires to intervene, such individual shall file a notice of intervention with the department not later than 60 days after the date the notice of the request for relief from joint and several liability is sent by the department to the nonrequesting spouse or former spouse, unless the department directs otherwise. 38.15(9) Contents of notice of intervention. a. A notice of intervention must be in the following format:DEPARTMENT OF REVENUEName of IntervenorNOTICE OF INTERVENTIONAddress of IntervenorDocket No. _______ b. A notice of intervention must contain all of the following, where applicable and known to the intervenor: (1) The name, address, telephone number, and identification number of the taxpayer (i.e., social security number (SSN), federal identification number (FEIN), or individual tax identification number (ITIN) of the person who is requesting intervention); (2) The docket number of the proceeding initiated by the person seeking relief from joint and several liability under Iowa Code section 422.21(7); (3) A copy of a determination letter or other document, if any, issued by the Internal Revenue Service showing that the person seeking relief from joint and several liability under Section 6015 of the Internal Revenue Code has been granted or denied relief for the relevant tax years; (4) A clear and concise statement of the grounds for intervention, all relevant facts, and the reasons why the intervenor agrees or disagrees with the person seeking relief from joint and several liability as to that person’s entitlement to such relief; (5) A citation to any specific statutes, rules, policies, decisions, or orders which may be relevant in the department’s determination of the applicability of relief from joint and several liability to the person seeking such relief; (6) Any information known to the petitioner relating to the department’s treatment of similar cases; and (7) The signature of the intervenor at the conclusion of the notice of intervention attesting to the accuracy and truthfulness of the information set forth in the notice of intervention. This rule is intended to implement Iowa Code section 422.21 as amended by 2002 Iowa Acts, House File 21162020 Iowa Acts, House File 2641.ARC 5612CRevenue Department[701]Notice of Intended Action

Proposing rule making related to interest expense deduction adjustments and providing an opportunity for public comment

The Revenue Department hereby proposes to amend Chapter 40, “Determination of Net Income,” Chapter 53, “Determination of Net Income,” and Chapter 59, “Determination of Net Income,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code sections 422.7, 422.35 and 422.68.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 422.7, 422.35 and 422.61.Purpose and Summary The proposed rules implement the adjustments to income for Iowa individual and corporate income and franchise taxes for interest expense deductions, which are limited for federal income tax purposes but permitted in full for Iowa purposes for tax years beginning on or after January 1, 2020. The rules also cover adjustments that may be needed due to Iowa’s changing conformity with these federal limitations for tax years 2018 and 2019.Fiscal Impact This rule making has no fiscal impact beyond the legislation it is intended to implement. The final fiscal estimate for 2020 Iowa Acts, House File 2641, estimated the fiscal impact of this provision to be -$6.2 million for FY 2021, -$4.1 million for FY 2022, -$8.8 million for FY 2023, -$14.4 million for FY 2024, and -$16.7 million for FY 2025. 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 May 25, 2021. Comments should be directed to: Benjamin Clough Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.587.0662 Email: ben.clough@iowa.gov Public Hearing If requested, a public hearing at which persons may present their views orally or in writing will be held as follows: May 25, 2021 1 to 2 p.m. Via videoconference call 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. Persons who wish to participate in the videoconference call should contact Ben Clough before 4:30 p.m. on May 14, 2021, to facilitate an orderly hearing. A conference call number will be provided to participants prior to the hearing. Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making actions are proposed:

ITEM 1. Adopt the following new rule 701—40.85(422):

701—40.85(422) Interest expense deduction adjustments. For tax years beginning on or after January 1, 2020, the limit on the amount of business interest expense that a taxpayer may deduct in a taxable year under Internal Revenue Code (IRC) Section 163(j) does not apply for Iowa purposes. This rule provides information on how taxpayers must calculate and report their business interest expense deduction for Iowa purposes for tax year 2018 (subrule 40.85(2)), when Iowa did not conform to the limitation; tax year 2019 (subrule 40.85(3)), when Iowa did conform to the limitation; and tax years 2020 and later (subrule 40.85(4) et seq.), when Iowa again does not conform to this limitation. All references to the Code of Federal Regulations (Treas. Reg.) and certain other information in this rule are based on final Internal Revenue Service (IRS) regulations and guidance in effect on January 13, 2021. 40.85(1) Definitions. The following terms apply to the interpretation and application of this rule. "Current-year business interest expense" means the same as defined in Treas. Reg. Section 1.163(j)-1(b)(9). "Excess business interest expense" means the same as defined in Treas. Reg. Section 1.163(j)-1(b)(16). "Iowa partnership" means any partnership required to file an Iowa return (IA 1065) for the relevant tax year. "Iowa S corporation" means any S corporation required to file an Iowa return (IA 1120S) for the relevant tax year. "Non-Iowa partnership" means any partnership that is not required to file an Iowa return (IA 1065) for the relevant tax year. "Non-Iowa S corporation" means any S corporation that is not required to file an Iowa return (IA 1120S) for the relevant tax year. 40.85(2) Tax year 2018. For tax years beginning on or after January 1, 2018, but before January 1, 2019 (tax year 2018), Iowa conforms with the IRC in effect on January 1, 2015, meaning the 30 percent limitation on the business interest expense deduction first imposed by IRC Section 163(j) under Public Law 115-97 (TCJA) does not apply for Iowa purposes. a. In general.For tax year 2018, Iowa taxpayers are permitted to deduct current-year business interest expense without regard to the limitations imposed by IRC Section 163(j) under the TCJA. The taxpayer’s additional deduction is computed on the 2018 Nonconformity Adjustments Worksheet. Taxpayers who qualify for these higher Iowa deductions in 2018 may need to make further adjustments in 2019 for amounts deducted under this subrule for Iowa purposes but disallowed and carried forward for federal purposes. See subrule 40.85(3) for more information about these 2019 adjustments. b. Special rules for partnerships and S corporations. (1) Iowa partnerships and S-corporations. Partnerships and S corporations required to file Iowa returns in tax year 2018 are required to make adjustments for Iowa’s nonconformity with IRC Section 163(j) at the entity level, meaning they can deduct the full interest expense on the entity’s own Iowa return and the reduction to the partner’s or shareholder’s share of the entity’s income will be included in the all source modifications line of the partners’ or shareholders’ Iowa Schedules K-1. (2) Owners of partnerships and S corporations with no entity-level 2018 Iowa filing requirement. 1. Non-Iowa partnerships. Iowa partners who received interest expense deductions from partnerships that were not required to file 2018 Iowa returns may claim the larger Iowa deduction for business interest expenses passed through from the partnership on the partner’s own 2018 Iowa return by including in the partner’s Iowa deduction the amount of disallowed business interest expense deduction shown on the 2018 federal Schedule K-1 (Form 1065), line 13, code K received from the non-Iowa partnership. 2. Non-Iowa S corporations. Iowa shareholders of S corporations that have no Iowa filing requirement are limited to the deduction actually passed through to them on the federal Schedule K-1 received from the S corporation for Iowa purposes in tax year 2018. These shareholders are not permitted to make adjustments for interest expense disallowed at the entity level for the non-Iowa S corporation. 40.85(3) Tax year 2019. For tax years beginning on or after January 1, 2019, but before January 1, 2020 (tax year 2019), Iowa conforms to the IRC in effect on March 24, 2018. a. Applicable limitation.For tax year 2019, Iowa conforms to the 30 percent limitation on the business interest expense deduction imposed by IRC Section 163(j). Because of Iowa’s fixed conformity date, Iowa did not conform with the higher 50 percent limitation retroactively imposed by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Public Law 116-136, to the extent that increased limitation applied in tax year 2019 for federal purposes. For tax year 2019 only, taxpayers are required to calculate their Iowa business interest expense deduction by applying the limitations of IRC Section 163(j) without regard to IRC Section 163(j)(10). b. Addition to income for tax year 2018 federal carryforward amounts deducted in tax year 2019.To the extent a taxpayer’s tax year 2019 federal business interest expense deduction includes amounts that were disallowed and carried forward to future years under IRC Section 163(j) in tax year 2018 for federal purposes, but allowed as a deduction in tax year 2018 for Iowa purposes under paragraph 40.85(2)“a” (in general), subparagraph 40.85(2)“b”(1) (Iowa partnerships and S corporations), or numbered paragraph 40.85(2)“b”(2)“1” (non-Iowa partnerships), these carried-forward amounts must be added back in computing Iowa income. These prior deductions and current adjustments are calculated and tracked on the IA 101 Nonconformity Adjustments form. Note that shareholders of non-Iowa S corporations should not be required to add back 2018 carryforward amounts deducted by the S corporation 2019, because the shareholders were not permitted to deduct these excess amounts for Iowa purposes in 2018. See numbered paragraph 40.85(2)“b”(2)“2.” 40.85(4) Tax years beginning on or after January 1, 2020. For tax years beginning on or after January 1, 2020, Iowa does not conform with the IRC Section 163(j) business interest expense deduction limitation, subject to the contingency described in Iowa Code section 422.7(60)“b” relating to tax years in which additional first-year depreciation is allowed for Iowa tax purposes. a. Current-year business interest expense.For tax years beginning on or after January 1, 2020, a taxpayer’s current-year business interest expense is fully deductible to the extent permitted by IRC Section 163 for Iowa purposes without regard to any limitation under subsection 163(j). Even though Iowa does not conform to IRC Section 163(j), provisions of the IRC other than Section 163(j) may subject interest expense to disallowance, deferral, capitalization, or other limitations, and those other provisions of the IRC still generally apply for Iowa purposes. No additional Iowa adjustments are permitted for federal limitations such as those described in Treas. Reg. Section 1.163(j)-3(b)(4), which are determined after the application of IRC Section 163(j) for federal purposes. See Treas. Reg. Section 1.163(j)-3 for examples of other provisions of the IRC that may restrict interest expense deductions for federal and Iowa purposes, independent of the IRC Section 163(j) limitation. b. Carryforward. (1) Special one-time carryforward catch-up (tax year 2020 only). For tax years beginning on or after January 1, 2020, but before January 1, 2021 (tax year 2020), taxpayers who filed a 2019 Iowa return are permitted to deduct all interest expense deduction amounts that were disallowed and carried forward under IRC Section 163(j) for Iowa purposes in tax year 2019. This deduction shall be calculated and reported on the taxpayer’s 2020 Iowa income tax return using form IA 163A. Business interest expense amounts carried over from tax year 2018 at the federal level shall not be deducted for Iowa tax purposes in tax year 2020. (2) Addition to income for prior-year federal carryforward amounts deducted in the current year. When current-year interest expense is limited at the federal level, the disallowed business interest expense is carried forward to be deducted in future years for federal purposes, when certain conditions are met. See Treas. Reg. Section 1.163(j)-1(b)(10) for the definition of “disallowed business interest expense.” Iowa law allows taxpayers to fully deduct current-year business interest expense, and no amounts are carried forward for Iowa purposes. Disallowed business interest expense carryforward amounts from prior years, including excess business interest expense allocated to a partner in a prior year, cannot be deducted for Iowa purposes except as described in subparagraph 40.85(4)“b”(1). All prior-year disallowed business interest expense carryforward amounts deductible under IRC Section 163(j) in the current year at the federal level, including excess business interest expense allocated to a partner in a prior year, must be added back in computing the taxpayer’s Iowa income for the year. In 2021, X has $50,000 in current-year business interest expense. For federal purposes, X is permitted to deduct the full $50,000 in interest expense generated in 2021, plus $5,000 of the amount that was disallowed in 2020 for a total federal deduction of $55,000 in 2021. X must add the federal carryforward amount ($5,000) back on X’s 2021 Iowa return, limiting X’s 2021 Iowa deduction to the $50,000 in current-year business interest expense. 40.85(5) Partners and partnerships. a. Partnership-level adjustments.For tax years beginning on or after January 1, 2020, an Iowa partnership that is subject to the IRC Section 163(j) limitation for federal purposes is permitted to deduct all current-year business interest expense at the partnership level in that tax year for Iowa purposes. (1) Excess business interest expense. A partnership may include as a reduction on the partnership’s Iowa income tax return any excess business interest expense, as defined in Treas. Reg. Section 1.163(j)-1(b)(16), of the partnership that was disallowed and allocated to the partners for that tax year for federal purposes. (2) Tiered partnerships. For partnerships that receive excess business interest expense passed through from a partnership in which they are a partner, see paragraph 40.85(5)“b” for information on how to report Iowa adjustments for that passed-through income. b. Partner-level adjustments. (1) Interest expense from Iowa partnerships. Iowa adjustments related to excess business interest expense of an Iowa partnership are made at the entity level as described in subparagraph 40.85(5)“a”(1) and are reported to partners on an IA 1065 Schedule K-1. Partners are not permitted to make any Iowa adjustment at the partner level to their federal interest expense deduction for amounts of excess business interest expense allocated from an Iowa partnership on the partner’s federal Schedule K-1 related to that Iowa partnership. See Example 1 above. (2) Interest expense from non-Iowa partnerships. For tax years beginning on or after January 1, 2020, partners may include as part of their Iowa business interest expense deduction the total amount of current-year excess business interest expense deduction passed through to them from all non-Iowa partnerships as shown on the federal Schedule K-1 (Form 1065), line 13, code K. See Example 2 above. (3) Partnership basis. A partner’s basis is reduced (but not below zero) by the amount of excess business interest expense the partnership passes through to the partner each year. See Treas. Reg. Section 163(j)-6(h) for detailed information about how to make these basis adjustments. For federal purposes, immediately before disposition of the partnership interest, the partner’s basis is then increased by the amount of any passed-through business interest expense which has not yet been treated as paid or accrued by the partner as described in Treas. Reg. Section 163(j)-6(h)(3). No basis increase at the time of disposition is allowed for Iowa purposes for passed-through business interest expense amounts that were deducted for Iowa, but not for federal, purposes due to Iowa’s nonconformity with IRC Section 163(j). 40.85(6) S corporation adjustments. For federal purposes, IRC Section 163(j) limitations are applied at the S corporation level. Unlike partnerships, disallowed business interest expense amounts are carried forward and deducted in future years at the entity level rather than being passed through to shareholders. See rule 701—53.29(422) for more information about the IRC Section 163(j) adjustments required for corporations, including S corporations, for Iowa purposes. See also Treas. Reg. Section 1.163(j)-6(l) for more information about the application of IRC Section 163(j) to S corporations for federal purposes. This rule is intended to implement Iowa Code section 422.7(60).

ITEM 2. Adopt the following new rule 701—53.29(422):

701—53.29(422) Interest expense deduction adjustments. For tax years beginning on or after January 1, 2020, the limit on the amount of business interest expense that a taxpayer may deduct in a taxable year under Internal Revenue Code (IRC) Section 163(j) does not apply for Iowa purposes. This rule provides information on how taxpayers must calculate and report their business interest expense deduction for Iowa purposes, for tax year 2018 (subrule 53.29(2)), when Iowa did not conform to the limitation; tax year 2019 (subrule 53.29(3)), when Iowa did conform to the limitation; and tax years 2020 and later (subrule 53.29(4) et seq.), when Iowa again does not conform to this limitation. All references to the Code of Federal Regulations (Treas. Reg.) and certain other information in this rule are based on final Internal Revenue Service (IRS) regulations and guidance in effect on January 13, 2021. 53.29(1) Definitions. The following terms apply to the interpretation and application of this rule. "Current-year business interest expense" means the same as defined in Treas. Reg. Section 1.163(j)-1(b)(9). "Excess business interest expense" means the same as defined in Treas. Reg. Section 1.163(j)-1(b)(16). "Iowa partnership" means any partnership required to file an Iowa return (IA 1065) for the relevant tax year. "Iowa S corporation" means any S corporation required to file an Iowa return (IA 1120S) for the relevant tax year. "Non-Iowa partnership" means any partnership that is not required to file an Iowa return (IA 1065) for the relevant tax year. "Non-Iowa S corporation" means any S corporation that is not required to file an Iowa return (IA 1120S) for the relevant tax year. 53.29(2) Tax year 2018. For tax years beginning on or after January 1, 2018, but before January 1, 2019 (tax year 2018), Iowa conforms with the IRC in effect on January 1, 2015, meaning the 30 percent limitation on the business interest expense deduction first imposed by IRC Section 163(j) under Public Law 115-97 (TCJA) does not apply for Iowa purposes. a. In general.For tax year 2018, Iowa taxpayers are permitted to deduct current-year business interest expense without regard to the limitations imposed by IRC Section 163(j) under the TCJA. The taxpayer’s additional deduction is computed on the 2018 Nonconformity Adjustments Worksheet. Taxpayers who qualify for these higher Iowa deductions in 2018 may need to make further adjustments in 2019 for amounts deducted under this subrule for Iowa purposes but disallowed and carried forward for federal purposes. See subrule 53.29(3) for more information about these 2019 adjustments. b. Special rules for partnerships and S corporations. (1) Iowa partnerships and S corporations. Partnerships and S corporations required to file Iowa returns in tax year 2018 are required to make adjustments for Iowa’s nonconformity with IRC Section 163(j) at the entity level, meaning they can deduct the full interest expense on the entity’s own Iowa return and the reduction to the partner’s or shareholder’s share of the entity’s income will be included in the all source modifications line of the partners’ or shareholders’ Iowa Schedules K-1. (2) Owners of partnerships and S corporations with no entity-level 2018 Iowa filing requirement. 1. Non-Iowa partnerships. Iowa partners who received interest expense deductions from partnerships which were not required to file 2018 Iowa returns may claim the larger Iowa deduction for business interest expenses passed through from the partnership on the partner’s own 2018 Iowa return by including in the partner’s Iowa deduction the amount of disallowed business interest expense deduction shown on the 2018 federal Schedule K-1 (Form 1065), line 13, code K received from the non-Iowa partnership. 2. Non-Iowa S corporations. Iowa shareholders of S corporations that have no Iowa filing requirement are limited to the deduction actually passed through to them on the federal Schedule K-1 received from the S corporation for Iowa purposes in tax year 2018. These shareholders are not permitted to make adjustments for interest expense disallowed at the entity level for the non-Iowa S corporation. See Example 3 in 701—subrule 40.85(2) for an example of how Iowa shareholders of non-Iowa S corporations should report the business interest expense deduction allocated to them from the S corporation. 53.29(3) Tax year 2019. For tax years beginning on or after January 1, 2019, but before January 1, 2020 (tax year 2019), Iowa conforms to the IRC in effect on March 24, 2018. a. Applicable limitation.For tax year 2019, Iowa conforms to the 30 percent limitation on the business interest expense deduction imposed by IRC Section 163(j). Because of Iowa’s fixed conformity date, Iowa did not conform with the higher 50 percent limitation retroactively imposed by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Public Law 116-136, to the extent that increased limitation applied in tax year 2019 for federal purposes. For tax year 2019 only, taxpayers are required to calculate their Iowa business interest expense deduction by applying the limitations of IRC Section 163(j) without regard to IRC Section 163(j)(10). b. Addition to income for tax year 2018 federal carryforward amounts deducted in tax year 2019.To the extent a taxpayer’s tax year 2019 federal business interest expense deduction includes amounts that were disallowed and carried forward to future years under IRC Section 163(j) in tax year 2018 for federal purposes, but allowed as a deduction in tax year 2018 for Iowa purposes under paragraph 53.29(2)“a” (in general), subparagraph 53.29(2)“b”(1) (Iowa partnerships and S corporations), or numbered paragraph 53.29(2)“b”(2)“1” (non-Iowa partnerships), these carried-forward amounts must be added back in computing Iowa income. These prior deductions and current adjustments are calculated and tracked on the IA 101 Nonconformity Adjustments form. Note that shareholders of non-Iowa S corporations should not be required to add back 2018 carryforward amounts deducted by the S corporation in 2019, because the shareholders were not permitted to deduct these excess amounts for Iowa purposes in 2018. See numbered paragraph 53.29(2)“b”(2)“2.” 53.29(4) Tax years beginning on or after January 1, 2020. For tax years beginning on or after January 1, 2020, Iowa does not conform with the IRC Section 163(j) business interest expense deduction limitation, subject to the contingency described in Iowa Code section 422.7(60)“b” relating to tax years in which additional first-year depreciation is allowed for Iowa tax purposes. a. Current-year business interest expense.For tax years beginning on or after January 1, 2020, a taxpayer’s current-year business interest expense is fully deductible to the extent permitted by IRC Section 163 for Iowa purposes without regard to any limitation under IRC Section 163(j). Even though Iowa does not conform to IRC Section 163(j), provisions of the IRC other than Section 163(j) may subject interest expense to disallowance, deferral, capitalization, or other limitations, and those other provisions of the IRC still generally apply for Iowa purposes. No additional Iowa adjustments are permitted for federal limitations such as those described in Treas. Reg. Section 1.163(j)-3(b)(4), which are determined after the application of IRC Section 163(j) for federal purposes. See Treas. Reg. Section 1.163(j)-3 for examples of other provisions of the IRC that may restrict interest expense deductions for federal and Iowa purposes, independent of the IRC Section 163(j) limitation. b. Carryforward. (1) Special one-time carryforward catch-up (tax year 2020 only). For tax years beginning on or after January 1, 2020, but before January 1, 2021 (tax year 2020), taxpayers who filed a 2019 Iowa return are permitted to deduct all interest expense deduction amounts that were disallowed and carried forward under IRC Section 163(j) for Iowa purposes in tax year 2019. This deduction shall be calculated and reported on the taxpayer’s 2020 Iowa income tax return using form IA 163A. Excess business interest expense amounts carried over from tax year 2018 at the federal level shall not be deducted for Iowa tax purposes in tax year 2020. (2) Addition to income for prior-year federal carryforward amounts deducted in the current year. When current-year interest expense is limited at the federal level, the disallowed business interest expense is carried forward to be deducted in future years for federal purposes, when certain conditions are met. See Treas. Reg. Section 1.163(j)-1(b)(10) for the definition of “disallowed business interest expense.” Iowa law allows taxpayers to fully deduct current-year business interest expense, and no amounts are carried forward for Iowa purposes. Disallowed business interest expense carryforward amounts from prior years, including excess business interest expense allocated to a partner in a prior year, cannot be deducted for Iowa purposes except as described in subparagraph 53.29(4)“b”(1). All prior-year disallowed business interest expense carryforward amounts deductible under IRC Section 163(j) in the current year at the federal level, including excess business interest expense allocated to a partner in a prior year, must be added back in computing the taxpayer’s Iowa income for the year. In 2021, QRS, Inc. has $50,000 in current-year business interest expense. For federal purposes, QRS, Inc. is permitted to deduct the full $50,000 in interest expense generated in 2021, plus $5,000 of the amount that was disallowed in 2020 for a total federal deduction of $55,000 in 2021. QRS, Inc. must add the federal carryforward amount ($5,000) back on the company’s 2021 Iowa return, limiting QRS, Inc.’s 2021 Iowa deduction to the $50,000 in current-year business interest expense. c. Consolidated groups.Corporations that were included on a federal consolidated return but that either file separate returns for Iowa purposes or file an Iowa consolidated return that does not include all members of the federal consolidated group are required to recalculate their proper current-year business interest expense deduction as described in paragraph 53.29(4)“a,” and the amount of any prior-year disallowed business interest expense carryforward which must be added back for Iowa purposes as described in paragraph 53.29(4)“b,” for the separate entity or Iowa consolidated group by completing pro forma federal interest expense deduction forms for the separate entity or Iowa consolidated group. Treas. Reg. Section 1.163(j)-4(d) and any other applicable federal regulations or guidance govern how Iowa consolidated groups should make this pro forma calculation. For more information about the election to file Iowa consolidated returns and group membership requirements, see rule 701—53.15(422). (1) Departure from group. In the event that a member leaves the consolidated group, both the newly separated member and the remaining group shall be required to include any carryforward amounts allocated to them under Treas. Reg. Section 1.163(j)-5(b)(3)(iii) in their respective Iowa incomes in the year or years the separate company or group actually deducts those amounts for federal purposes. (2) Carryforwards from separate return limitation years (SRLY). A consolidated group is not permitted to deduct any disallowed business interest expense carryforward amount of a member arising in a SRLY for Iowa purposes and must add back such amounts on the Iowa return in the same year in which the consolidated group is permitted to deduct the SRLY carryforward amount for federal purposes. See 26 Treas. Reg. Section 1.163(j)-5(d) for more information about the federal treatment of these carryforward amounts. 53.29(5) Partners and partnerships. a. Partnership-level adjustments.For tax years beginning on or after January 1, 2020, partnerships that file an Iowa income tax return for a tax year in which the partnership is subject to the IRC Section 163(j) limitation for federal purposes are permitted to deduct all current-year business interest expense at the partnership level in that tax year. See rule 701—paragraph 40.85(5)“a” for more information about the calculation and reporting of partnership-level adjustments. b. Partner-level adjustments. (1) Interest expense from Iowa partnerships. Iowa adjustments related to excess business interest expense of an Iowa partnership are made at the entity level as described in 701—paragraph 40.85(5)“a” and are reported to partners on an IA 1065 Schedule K-1. Partners are not permitted to make any Iowa adjustment at the partner level to their federal interest expense deduction for amounts of excess business interest expense allocated from an Iowa partnership on the partner’s federal Schedule K-1 related to that Iowa partnership. See Example 1 above. (2) Interest expense from non-Iowa partnerships. For tax years beginning on or after January 1, 2020, partners may include as part of their Iowa business interest expense deduction the total amount of current-year excess business interest expense deduction passed through to them from all non-Iowa partnerships as shown on the federal Schedule K-1 (Form 1065), line 13, code K. See Example 2 above. (3) Partnership basis. A partner’s basis is reduced (but not below zero) by the amount of excess business interest expense the partnership passes through to the partner each year. See Treas. Reg. Section 163(j)-6(h) for detailed information about how to make these basis adjustments. For federal purposes, immediately before disposition of the partnership interest, the partner’s basis is then increased by the amount of any passed-through business interest expense which has not yet been treated as paid or accrued by the partner as described in Treas. Reg. Section 163(j)-6(h)(3). No basis increase at the time of disposition is allowed for Iowa purposes for passed-through business interest expense amounts that were deducted for Iowa, but not for federal, purposes due to Iowa’s nonconformity with IRC Section 163(j). 53.29(6) S corporation adjustments. For federal purposes, IRC Section 163(j) limitations are applied at the S corporation level. Unlike partnerships, disallowed business interest expense amounts are carried forward and deducted in future years at the entity level rather than being passed through to shareholders. S corporations should calculate their entity-level business interest expense deduction for Iowa purposes under the provisions of this rule. See also Treas. Reg. Section 1.163(j)-6(l) for more information about the application of IRC Section 163(j) to S corporations for federal purposes. This rule is intended to implement Iowa Code section 422.35(27).

ITEM 3. Adopt the following new rule 701—59.31(422):

701—59.31(422) Interest expense deduction adjustments. For tax years beginning on or after January 1, 2020, the limit on the amount of business interest expense that a taxpayer may deduct in a taxable year under Internal Revenue Code (IRC) Section 163(j) does not apply for Iowa purposes. This rule provides information on how taxpayers must calculate and report their business interest expense deduction for Iowa purposes, for tax year 2018 (subrule 59.31(2)), when Iowa did not conform to the limitation; tax year 2019 (subrule 59.31(3)), when Iowa did conform to the limitation; and tax years 2020 and later (subrule 59.31(4) et seq.), when Iowa again does not conform to this limitation. All references to the Code of Federal Regulations (Treas. Reg.) and certain other information in this rule are based on final Internal Revenue Service (IRS) regulations and guidance in effect on January 13, 2021. 59.31(1) Definitions. The following terms apply to the interpretation and application of this rule. "Current-year business interest expense" means the same as defined in Treas. Reg. Section 1.163(j)-1(b)(9). "Excess business interest expense" means the same as defined in Treas. Reg. Section 1.163(j)-1(b)(16). "Iowa partnership" means any partnership required to file an Iowa return (IA 1065) for the relevant tax year. "Iowa S corporation" means any S corporation required to file an Iowa return (IA 1120S) for the relevant tax year. "Non-Iowa partnership" means any partnership that is not required to file an Iowa return (IA 1065) for the relevant tax year. "Non-Iowa S corporation" means any S corporation that is not required to file an Iowa return (IA 1120S) for the relevant tax year. 59.31(2) Tax year 2018. For tax years beginning on or after January 1, 2018, but before January 1, 2019 (tax year 2018), Iowa conforms with the IRC in effect on January 1, 2015, meaning the 30 percent limitation on the business interest expense deduction first imposed by IRC Section 163(j) under Public Law 115-97 (TCJA) does not apply for Iowa purposes. a. In general.For tax year 2018, Iowa taxpayers are permitted to deduct current-year business interest expense without regard to the limitations imposed by IRC Section 163(j) under the TCJA. The taxpayer’s additional deduction is computed on the 2018 Nonconformity Adjustments Worksheet. Taxpayers who qualify for these higher Iowa deductions in 2018 may need to make further adjustments in 2019 for amounts deducted under this subrule for Iowa purposes but disallowed and carried forward for federal purposes. See subrule 59.31(3) for more information about these 2019 adjustments. b. Special rules for partnerships and S corporations. (1) Iowa partnerships and S corporations. Partnerships and S corporations required to file Iowa returns in tax year 2018 are required to make adjustments for Iowa’s nonconformity with IRC Section 163(j) at the entity level, meaning they can deduct the full interest expense on the entity’s own Iowa return and the reduction to the partner’s or shareholder’s share of the entity’s income will be included in the all source modifications line of the partners’ or shareholders’ Iowa Schedules K-1. (2) Owners of partnerships and S corporations with no entity-level 2018 Iowa filing requirement. 1. Non-Iowa partnerships. Iowa partners who received interest expense deductions from partnerships which were not required to file 2018 Iowa returns may claim the larger Iowa deduction for business interest expense passed through from the partnership on the partner’s own 2018 Iowa return by including in the partner’s Iowa deduction the amount of disallowed business interest expense deduction shown on the 2018 federal Schedule K-1 (Form 1065), line 13, code K received from the non-Iowa partnership. 2. Non-Iowa S corporations. Iowa shareholders of S corporations that have no Iowa filing requirement are limited to the deduction actually passed through to them on the federal Schedule K-1 received from the S corporation for Iowa purposes in tax year 2018. These shareholders are not permitted to make adjustments for interest expense disallowed at the entity level for the non-Iowa S corporation. See Example 3 in 701—subrule 40.85(2) for an example of how Iowa shareholders of non-Iowa S-corporations should report the business interest expense deduction allocated to them from the S corporation. 59.31(3) Tax year 2019. For tax years beginning on or after January 1, 2019, but before January 1, 2020 (tax year 2019), Iowa conforms to the IRC in effect on March 24, 2018. a. Applicable limitation.For tax year 2019, Iowa conforms to the 30 percent limitation on the business interest expense deduction imposed by IRC Section 163(j). Because of Iowa’s fixed conformity date, Iowa did not conform with the higher 50 percent limitation retroactively imposed by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Public Law 116-136, to the extent that increased limitation applied in tax year 2019 for federal purposes. For tax year 2019 only, taxpayers are required to calculate their Iowa business interest expense deduction by applying the limitations of IRC Section 163(j) without regard to IRC Section 163(j)(10). b. Addition to income for tax year 2018 federal carryforward amounts deducted in tax year 2019.To the extent a taxpayer’s tax year 2019 federal business interest expense deduction includes amounts that were disallowed and carried forward to future years under IRC Section 163(j) in tax year 2018 for federal purposes, but allowed as a deduction in tax year 2018 for Iowa purposes under paragraph 59.31(2)“a” (in general), subparagraph 59.31(2)“b”(1) (Iowa partnerships and S corporations), or numbered paragraph 59.31(2)“b”(2)“1” (non-Iowa partnerships), these carried-forward amounts must be added back in computing Iowa income. These prior deductions and current adjustments are calculated and tracked on the IA 101 Nonconformity Adjustments form. Note that shareholders of non-Iowa S corporations should not be required to add back 2018 carryforward amounts deducted by the S corporation in 2019, because the shareholders were not permitted to deduct these excess amounts for Iowa purposes in 2018. See numbered paragraph 59.31(2)“b”(2)“2.” 59.31(4) Tax years beginning on or after January 1, 2020. For tax years beginning on or after January 1, 2020, Iowa does not conform with the IRC Section 163(j) business interest expense deduction limitation, subject to the contingency described in Iowa Code section 422.7(60)“b” relating to tax years in which additional first-year depreciation is allowed for Iowa tax purposes. a. Current-year business interest expense.For tax years beginning on or after January 1, 2020, a taxpayer’s current-year business interest expense is fully deductible to the extent permitted by IRC Section 163 for Iowa purposes without regard to any limitation under IRC Section 163(j). Even though Iowa does not conform to IRC Section 163(j), provisions of the IRC other than Section 163(j) may subject interest expense to disallowance, deferral, capitalization, or other limitations, and those other provisions of the IRC still generally apply for Iowa purposes. No additional Iowa adjustments are permitted for federal limitations such as those described in Treas. Reg. Section 1.163(j)-3(b)(4), which are determined after the application of IRC Section 163(j) for federal purposes. See Treas. Reg. Section 1.163(j)-3 for examples of other provisions of the IRC that may restrict interest expense deductions for federal and Iowa purposes, independent of the Section 163(j) limitation. b. Carryforward. (1) Special one-time carryforward catch-up (tax year 2020 only). For tax years beginning on or after January 1, 2020, but before January 1, 2021 (tax year 2020), taxpayers who filed a 2019 Iowa return are permitted to deduct all interest expense deduction amounts that were disallowed and carried forward under IRC Section 163(j) for Iowa purposes in tax year 2019. This deduction shall be calculated and reported on the taxpayer’s 2020 Iowa income tax return using form IA 163A. Excess business interest expense amounts carried over from tax year 2018 at the federal level shall not be deducted for Iowa tax purposes in tax year 2020. (2) Addition to income for prior-year federal carryforward amounts deducted in the current year. When current-year interest expense is limited at the federal level, the disallowed business interest expense is carried forward to be deducted in future years for federal purposes when certain conditions are met. See Treas. Reg. Section 1.163(j)-1(b)(10) for the definition of “disallowed business interest expense.” Iowa law allows taxpayers to fully deduct current-year business interest expense, and no amounts are carried forward for Iowa purposes. Disallowed business interest expense carryforward amounts from prior years, including excess business interest expense allocated to a partner in a prior year, cannot be deducted for Iowa purposes except as described in subparagraph 59.31(4)“b”(1). All prior year disallowed business interest expense carryforward amounts deductible under IRC Section 163(j) in the current year at the federal level, including excess business interest expense allocated to a partner in a prior year, must be added back in computing the taxpayer’s Iowa income for the year. In 2021, X Bank has $50,000 in current-year business interest expense. For federal purposes, X Bank is permitted to deduct the full $50,000 in interest expense generated in 2021, plus $5,000 of the amount that was disallowed in 2020 for a total federal deduction of $55,000 in 2021. X Bank must add the federal carryforward amount ($5,000) back on the company’s 2021 Iowa return, limiting X Bank’s 2021 Iowa deduction to the $50,000 in current-year business interest expense. 59.31(5) Partners and partnerships. a. Partnership-level adjustments.For tax years beginning on or after January 1, 2020, partnerships that file an Iowa income tax return for a tax year in which the partnership is subject to the IRC Section 163(j) limitation for federal purposes are permitted to deduct all current-year business interest expense at the partnership level in that tax year. See 701—paragraph 40.85(5)“a” for more information about the calculation and reporting of partnership-level adjustments. b. Partner-level adjustments. (1) Interest expense from Iowa partnerships. Iowa adjustments related to excess business interest expense of an Iowa partnership are made at the entity level as described in 701—paragraph 40.85(5)“a” and are reported to partners on an IA 1065 Schedule K-1. Partners are not permitted to make any Iowa adjustment at the partner level to their federal interest expense deduction for amounts of excess business interest expense allocated from an Iowa partnership on the partner’s federal Schedule K-1 related to that Iowa partnership. See Example 1 above. (2) Interest expense from non-Iowa partnerships. For tax years beginning on or after January 1, 2020, partners may include as part of their Iowa business interest expense deduction the total amount of current-year excess business interest expense deduction passed through to them from all non-Iowa partnerships as shown on the federal Schedule K-1 (Form 1065), line 13, code K. See Example 2 above. (3) Partnership basis. A partner’s basis is reduced (but not below zero) by the amount of excess business interest expense the partnership passes through to the partner each year. See Treas. Reg. Section 163(j)-6(h) for detailed information about how to make these basis adjustments. For federal purposes, immediately before disposition of the partnership interest, the partner’s basis is then increased by the amount of any passed-through business interest expense which has not yet been treated as paid or accrued by the partner as described in Treas. Reg. Section 163(j)-6(h)(3). No basis increase at the time of disposition is allowed for Iowa purposes for passed-through business interest expense amounts that were deducted for Iowa, but not for federal, purposes due to Iowa’s nonconformity with IRC Section 163(j). 59.31(6) S corporation adjustments. For federal purposes, IRC Section 163(j) limitations are applied at the S-corporation level. Unlike partnerships, disallowed business interest expense amounts are carried forward and deducted in future years at the entity level rather than being passed through to shareholders. S corporations should calculate their entity-level business interest expense deduction for Iowa purposes under the provisions of rule 701—53.29(422). See also Treas. Reg. Section 1.163(j)-6(l) for more information about the application of IRC Section 163(j) to S corporations for federal purposes. This rule is intended to implement Iowa Code sections 422.35(27) and 422.61.ARC 5614CRevenue Department[701]Notice of Intended Action

Proposing rule making related to marketable food products for human consumption and providing an opportunity for public comment

The Revenue Department hereby proposes to amend Chapter 230, “Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 421.17.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 423.3.Purpose and Summary Iowa Code section 423.3(49) provides a limited exemption for manufacturers producing “marketable food products for human consumption.” Specifically, the Iowa Code section exempts from sales tax: “The sales price from the sale of carbon dioxide in a liquid, solid, or gaseous form, electricity, steam, and other taxable services and the lease or rental of tangible personal property when used by a manufacturer of food products to produce marketable food products for human consumption, including but not limited to treatment of material to change its form, context, or condition, in order to produce the food product, maintenance of quality or integrity of the food product, changing or maintenance of temperature levels necessary to avoid spoilage or to hold the food product in marketable condition, maintenance of environmental conditions necessary for the safe or efficient use of machinery and material used to produce the food product, sanitation and quality control activities, formation of packaging, placement into shipping containers, and movement of the material or food product until shipment from the building of manufacture.” [Emphasis added] This exemption was first codified in 1985 and has only been amended once, in 2005, to add leases or rentals of otherwise-qualifying tangible personal property to the exemption. The phrase “marketable food products for human consumption” has never been defined in the Iowa Code or the Department’s administrative rules. The Department’s long-standing interpretation of the term, articulated through audits and protests, has been that only final food products, not food ingredients, are “marketable food products for human consumption.” This interpretation is consistent with the statutory construction principle that exemption provisions be narrowly construed. To provide clarity to taxpayers seeking to claim this exemption as manufacturers of marketable food products for human consumption, the Department proposes to adopt this definition of the term. The Department notes that if a taxpayer does not produce marketable food products for human consumption, the taxpayer may still be eligible for other processing-related exemptions, such as those in Iowa Code section 423.3(47).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 May 25, 2021. Comments should be directed to: Tim Reilly Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.782.0535 Email: tim.reilly@iowa.gov Public Hearing A public hearing at which persons may present their views orally or in writing will be held as follows: May 25, 2021 2 to 3 p.m. Via videoconference call 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. Persons who wish to participate in the videoconference call should contact Tim Reilly before 4:30 p.m. on May 24, 2021, to facilitate an orderly hearing. A link will be provided to participants prior to the hearing.Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6). The following rule-making action is proposed:

ITEM 1. Adopt the following new subrule 230.2(1): 230.2(1) “Marketable food products for human consumption” means products intended to be sold ultimately at retail as items which furnish energy, sustain growth, support vital processes in the human body, and are final products ready for and capable of consumption without the need for further processing after being sold to the purchaser. “Marketable food products for human consumption” includes food products traditionally accepted and sold as food products and products that have been enhanced or compounded with nutritional elements. “Marketable food products for human consumption” does not include medicines or dietary or food supplements. A product that may be consumed by a human but is sold for other purposes is not a marketable food product for human consumption. a. Certain entities eligible.An entity that processes a product owned by another entity is eligible for this exemption, subject to satisfying the other requirements to properly claim the exemption. b. Determination.The burden is on the taxpayer seeking to claim this exemption to establish a product is a marketable food product for human consumption. The department’s determination shall be a fact-based determination based on the information provided by a manufacturer and the individual circumstances at issue.ARC 5592CVeterans Affairs, Iowa Department of[801]Notice of Intended Action

Proposing rule making related to veterans trust fund and providing an opportunity for public comment

The Department of Veterans Affairs hereby proposes to amend Chapter 14, “Veterans Trust Fund,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is proposed under the authority provided in Iowa Code section 35A.13.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 35A.13.Purpose and Summary The proposed rule making amends Chapter 14 so the rules for the Veterans Trust Fund are not as restrictive to veterans, their spouses and their dependents.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.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 May 25, 2021. Comments should be directed to:Melissa Miller Iowa Department of Veterans Affairs Camp Dodge, Bldg. #3465 7105 NW 70th Avenue Johnston, Iowa 50131 Email: melissa.miller2@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 801—14.2(35A) as follows:

801—14.2(35A) Definition. For purposes of this chapter, “veteran” means the same as defined in Iowa Code section 35.1, orand federal VA regulations; a resident of Iowa who served in the armed forces of the United States, completed a minimum aggregate of 90 days of active federal service, other than training, and was discharged under honorable conditions,; or a former member of the national guard, reserve, or regular component of the armed forces of the United States who was honorably discharged due to injuries incurred while on active federal service that precluded completion of a minimum aggregate of 90 days of active federal service, other than training.

ITEM 2. Amend subrules 14.3(1) and 14.3(2) as follows: 14 14.3 3(1) Income. For the purposes of this chapter, an applicant’s household income, including VA pension benefits, service-connected disability income, and social security income, shall not exceed 200300 percent of the federal poverty guidelines for the number of family members living in the primary residence in effect on the date the application is received by the county director of veterans affairs. Federal poverty guidelines shall be those guidelines established by the Iowa department of human services for the veteran’s family size. The commission shall adjust the guidelines on July 1 of each year to reflect the most recent federal poverty guidelines. The commission may waive the income threshold if all income is from a fixed source and all other sources of assistance have been exhausted. 14 14.3 3(2) Resources. The department may not pay benefits under this chapter if the available liquid assets of the veteran are in excess of $15,000. For the purposes of this chapter, “available liquid assets” means cash on hand, cash in a checking or savings account, stocks, bonds, certificates of deposit, treasury bills, money market funds and other liquid investments owned individually or jointly by the applicant and the applicant’s spouse, unless the applicant and spouse are separated or are in the process of obtaining a divorce, but does not include funds deposited in IRAs, Keogh plans or deferred compensation plans, unless the veteran is eligible to withdraw such funds without incurring a penalty. Cash surrender value of life insurance policies, real property, established burial account, or a personal vehicle shall not be included as available liquid assets.

ITEM 3. Amend subrule 14.4(1) as follows: 14.4(1) Travel expenses for wounded veterans, and their spousesand their dependents, directly related to follow-up medical care. Travel expenses under this subrule include the unreimbursed cost of airfare, lodging, and a per diem of $25$50 per day for required out-of-state medical travel that exceeds 125 milesmedical appointments from the veteran’s home. Spouses may be reimbursed for in-state lodging and a per diem of $25$50 per day when visiting a veteran who is in a hospital for medical care related to a service-connectedan injury or disability. The distance from the veteran’s home to the hospital must exceed 100 miles. The veteran or the veteran’s spouse shall provide such evidence as the commission may require, which includes but is not limited to evidence the injury or disability is service-connected, the necessity of treatment in a particular facility, and documentation of expenses. The maximum amount for lodgingtravel expense reimbursement shall be $90. The maximum amount of aid payable in a consecutive 12-month period under this subrule is $1,000. The commission may waive the income threshold for this benefit.

ITEM 4. Amend paragraph 14.4(2)"a", introductory paragraph, as follows: a. The commission may pay a veteran not more than $3,000$5,000 for retraining or postsecondary educationand Internet connection to enable the veteran to obtain gainful employment. The commission may provide aid under this subrule if all of the following apply:

ITEM 5. Amend subparagraph 14.4(2)"a" as follows: (4) The veteran requesting aid has not received full reimbursement or payment from any other retraining or education scholarship programs and the veteran does not have other assets or income available to meet retraining or initial training expenses. Applicants requesting aid under this subrule will only be granted the unpaid portion of their tuition statement, and the paymenta monthly Internet invoice. Payments will be made directly to the institutionand Internet provider.

ITEM 6. Amend subrule 14.4(3) as follows: 14.4(3) Unemployment or underemployment assistance during a period of unemployment or underemployment due to prolonged physical or mental illness resulting from military service or disability resulting from military service (must be physically and mentally able to return to work). The commission may provide subsistence payments only to a veteran who has suffered a loss of income due to prolonged physical or mental illness resulting from military service or disability resulting from military service. The commission may provide subsistence payments of up to $500 per month of unemployment or underemployment to a veteran. A veteran must provide documentation of assistance from Iowa workforce development and vocational rehabilitation, if eligible. No payment may be made under this subrule if the veteran has other assets or income available to meet basic subsistence needs. A period of unemployment implies that it is possible for the veteran to be employed in the future. A rating from the VA of 100 percent due to individual unemployability (IU) rated permanent and total indicates that a veteran is unemployable and will not qualify for assistance under this subrule. The veteran shall provide such evidence as the commission may require, which includes but is not limited to evidence that the mental illness or disability is service-connected and evidence that the veteran is unemployed or underemployed for the period of payments. To qualify as underemployed, the applicant must be currently working at an income that is below 150 percent of federal poverty guidelines due to limitations caused by the applicant’s service-connected disability or illness. The maximum amount of aid payable in a consecutive 12-month period under this subrule is $3,000 and a lifetime maximum of $6,000.

ITEM 7. Amend paragraphs 14.4(4)"b" and 14.4(4)"c" as follows: b. The maximum amount that may be paid under this subrule for any consecutive 12-month period may not exceed $10,000 for dental care, $500 for vision care, $1,500 per ear for hearing care, and $1,500 for prescription drugsand prescribed over-the-counter drugs. Lifetime maximum benefit: $10,000per eligible family member. c. The commission shall not provide health care aid under this subrule unless the aid recipient’s health care provider agrees to accept, as full payment for the health care provided, the amount of the payment; the amount of the recipient’s health insurance or other third-party payments, if any; and the amount that the commission determines the veteran is capable of paying. Payment under this subrule will be provided directly to the health care provider. The commission shall not pay health care aid under this subrule if the available liquid assets of the veteran are in excess of $15,000.

ITEM 8. Amend paragraph 14.4(5)"c" as follows: c. Assistance under this subrule cannot duplicate assistance from other entities, and the maximum amount that may be paid may not exceed $2,500$5,000.

ITEM 9. Rescind paragraph 14.4(5)"d".

ITEM 10. Amend paragraph 14.4(6)"d" as follows: d. The commission may provide up to $150 per hour and $75 per half-hour for outpatient counseling visits to providers who will accept as full payment for the counseling services the amount provided. Counseling and substance abuse services provided in a group setting may be paid up to $40 per hour. Counseling and substance abuse services may also be provided in an inpatient setting, subject to the maximum amount eligible underparagraph 14.4(6)“f.”

ITEM 11. Amend paragraph 14.4(6)"f" as follows: f. The commission may not provide counseling under this subrule unless the aid recipient’s counseling service provider agrees to accept, as full payment for the counseling services provided, the amount of the payment; the amount of the recipient’s health insurance or other third-party payments, if any; and the amount that the commission determines the veteran is capable of paying. The commission will make payment directly to the entity providing counseling and substance abuse services. The commission shall not pay for counseling under this subrule if the available liquid assets of the veteran are in excess of $15,000.

ITEM 12. Amend paragraph 14.4(7)"c" as follows: c. The maximum amount that may be paid under this subrule may not exceed $7,500$10,000.

ITEM 13. Amend subrule 14.4(8) as follows: 14.4(8) Emergency expenses related to vehicle repairor a one-time replacement vehicle, housing repair, or temporary housing assistance. a. The commission may provide assistance to a veteran or to the unremarried spouse of a deceased veteran for emergency vehicle repair, emergency housing repair, and temporary housing. b. Assistance for vehicle repair is limited to expenses that are required for continued use of the vehicle. This assistance will only be granted in cases where the vehicle is needed for travel to and from work-related activities, the applicant is over the age of 65, or substantial hardship will occur if the vehicle is not repaired. Assistance may be provided in situations where the applicant does not have sufficient means to pay an insurance deductible. Assistance may be paid directly to the entity performing the maintenance or the insurance company owed the deductible. In certain circumstances, reimbursement may be made to the veteran or to the unremarried spouse of a deceased veteran in order for the vehicle to be released from the entity providing the service. Assistance will not be provided for damage caused during the commission of a crime, for cosmetic needs, for damage resulting in an auto accident when automobile insurance has not been purchased, or for routine maintenance.Vehicle replacement is a one-time use not exceeding $5,000. c. Assistance for home repair is limited to repairs that are required to improve the conditions and integrity of the home and are necessary for the safety and security of the residents. Applicants with homeowners insurance may request assistance for payment of a deductible. Assistance may be provided for applicants in disaster situations, home accidents, vandalism, or other situations as determined by the commission. In situations where a home is damaged beyond repair, assistance under this subrule is available to assist the applicant in purchasing a new home. d. Assistance for transitional housing may be provided to applicants who are displaced from their home during a period of repairs related to a disaster, vandalism, home accident, or other reason that makes staying in the home hazardous to the health of the residents. Any refunded security deposits paid for under this subrule shall be returned to the Iowa veterans trust fund. e. The maximum amount that may be paid under this subrule for any consecutive 12-month period may not exceed $2,500 for vehicle repair, $3,000 for housing repair, and $1,000 for transitional housing. Lifetime maximum benefit for housing repair and vehicle repair: $10,000 each. f. The commission shall not pay a reimbursement under this subrule if the available liquid assets of the veteran are in excess of $15,000.ARC 5596CHuman Services Department[441]Adopted and Filed

Rule making related to travel trailers

The Human Services Department hereby amends Chapter 58, “Emergency Assistance,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code chapter 29C.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapter 29C.Purpose and Summary This amendment increases the time frame in which a person or household may stay in a travel trailer or fifth-wheel travel trailer from 90 days to 180 days before the travel trailer is considered a permanent place of habitation. This change was enacted in 2019 Iowa Acts, Senate File 435.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on February 24, 2021, as ARC 5471C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by the Council on Human Services on April 8, 2021.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 441—1.8(17A,217).Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date This rule making will become effective on July 1, 2021. The following rule-making action is adopted:

ITEM 1. Amend rule 441—58.1(29C), definitions of “Fifth-wheel travel trailer” and “Travel trailer,” as follows: "Fifth-wheel travel trailer," as set forth in Iowa Code section 321.1(36C)(c), means a type of travel trailer which is towed by a pickup by a connecting device known as a fifth wheel. However, this type of travel trailer may have an overall length which shall not exceed 45 feet. If the vehicle is used in this state as a place of human habitation for more than 90180 consecutive days in one location, the vehicle shall be classed as a manufactured or mobile home regardless of the size limitations provided in this definition. "Travel trailer," as set forth in Iowa Code section 321.1(36C)(b), means a vehicle without motive power used, manufactured, or constructed to permit its use as a conveyance upon the public streets and highways and designed to permit its use as a place of human habitation by one or more persons. The vehicle may be up to 8 feet, 6 inches in width and its overall length shall not exceed 45 feet. The vehicle shall be customarily or ordinarily used for vacation or recreational purposes and not used as a place of permanent habitation. If the vehicle is used in this state as a place of human habitation for more than 90180 consecutive days in one location, the vehicle shall be classed as a manufactured or mobile home regardless of the size limitations provided in this definition. [Filed 4/9/21, effective 7/1/21][Published 5/5/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 5/5/21.ARC 5597CHuman Services Department[441]Adopted and Filed

Rule making related to electronic visit verification

The Human Services Department hereby amends Chapter 73, “Managed Care,” Chapter 78, “Amount, Duration and Scope of Medical and Remedial Services,” and Chapter 83, “Medicaid Waiver Services,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code chapter 249A.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapter 249A.Purpose and Summary Electronic visit verification (EVV) is a federal requirement for states to implement. In December 2016, the 21st Century Cures Act was signed into law. Section 12006 of the Act requires EVV for personal care services beginning January 1, 2020, and for home health services beginning January 1, 2023. Iowa was granted a one-year good-faith exemption, so the requirement for Iowa is January 1, 2021, for personal care services and January 1, 2023, for home health services. The Department is using a managed care implementation model for EVV. EVV uses technology to electronically record when attendants begin and end providing services to Medicaid members. EVV will be used to ensure members are receiving the care they need that is outlined in the members’ service plan. EVV will be used to monitor the delivery and utilization of personal care and home health services in nontraditional settings and will provide verification of the visit with location information and a time stamp. EVV will be used to ensure quality and program integrity. It also streamlines billing for providers. Once a visit is complete, the claim is sent to the managed care organization (MCO) for payment. EVV was implemented January 1, 2021, in accordance with federal regulations. Payments were made outside of the system in January to allow providers to start using the system and become familiar with its applications. Providers began fully using the system February 1, 2021. These amendments provide additional guidance for providers. Beginning January 1, 2021, personal care service providers including consumer-directed attendant care (CDAC) providers, homemaker providers, and consumer choice option employees that provide personal care services are required to use EVV. The Department has extended the deadline for assisted living and residential care facilities to July 1, 2021. The EVV implementation for the fee-for-service (FFS) population will be deployed in a second phase for compliance.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on February 10, 2021, as ARC 5437C. The Department received comments from two respondents/organizations. The respondents’ comments suggesting changes to these rules and the Department’s responses to these comments follow: Comment 1: One respondent submitted two comments regarding the 21st Century Cures Act and the fact that EVV was being required for personal care or home health care services provided by CDAC who live in the same home as the person they provide for. The respondent stated there was no checking in or out when they are there 24 hours a day. The respondent requested that an exception be made for caregivers who reside with the person they are providing care for. The respondent also stated that personal care services (PCS) that are provided to inpatients or residents of a hospital, nursing home, intermediate care facility for individuals with intellectual disabilities, or an institution for mental illness, and PCS that do not require an in-home visit, are not subject to the EVV requirement. The respondent stated that the Centers for Medicare and Medicaid Services (CMS) is aware that PCS are provided in a variety of settings offering 24-hour service availability. CMS interprets the reference in the statute to an “in-home visit” to exclude PCS provided in congregate residential settings where 24-hour service is available. Consistent with this difference in service delivery model, typical reimbursement for services provided in these congregate settings utilizes a per diem methodology, rather than discrete per “visit” or per service payment structures. Therefore, the respondent stated CMS finds that services provided in a congregate residential setting are distinct from an “in-home visit” subject to EVV requirements under the statute. Department response 1: When developing the rules for the EVV solution and the settings where EVV would be required for use, the Department reviewed guidance provided by CMS. The PCS for which the EVV solution is required to be used are CDAC and homemaker services. Both of these services are provided and billed in 15-minute units rather than a per diem rate. Providing services in 15-minute units is more aligned with providing discrete in-home per visit services provided by in-home caregivers. CMS guidance advises that states may choose to implement EVV for live-in caregivers and in congregate settings, particularly when using discrete units of reimbursement, such as on an hourly basis (or in Iowa’s case, 15-minute units). As such, the Department made the determination to require PCS provided by live-in caregivers and in congregate settings to use the EVV solution. The Department did not make a change from the Notice to allow the exclusion of live-in caregivers and services provided in congregate settings from the EVV solution. Comment 2: One respondent recommended adding language to subrule 73.18(2) specific to the Consumer Choice Option (CCO) program within that subrule as it is the responsibility of the CCO member to maintain the adequate record keeping regarding their service delivery (per subparagraph 78.34(13)“m”(5)) and the responsibility of the financial management service provider (Veridian Fiscal Solutions) to maintain the payment documentation. The term “provider” could confuse these responsibilities. The respondent suggested wording changes to the administrative rule. Department response 2: The requirements identified in rule 441—79.3(249A) codify the service documentation for home- and community-based services (HCBS), including services required to use EVV. The CCO rules in subparagraph 78.34(13)“m”(4) require CCO documentation to comport with the service documentation requirements in rule 441—79.3(249A). The EVV solution may be used to document PCS and, when used, can meet the requirements in rule 441—79.3(249A) for maintenance of service records. Since the service documentation requirements are already established in rule 441—79.3(249A), the Department did not make a change from the EVV rules published under Notice. Comment 3: The respondent recommended including the service of homemaker as a required EVV service for CCO. In addition, the respondent recommended adding language stating that it is the responsibility of the member to make copies of the time sheet since the financial management service provider (Veridian Fiscal Solutions) will no longer receive the information for EVV services. The respondent stated this requirement would align with the requirement outlined in subparagraph 78.34(13)“m”(5) indicating that if the information is submitted electronically, the member shall maintain a record for five years. In addition, the respondent recommended being more specific that the Form 470-4429 can only be used for the documentation of services provided, not for the submission of time for payment. The respondent stated that the way these changes are currently written, it could be interpreted that there is an option between the EVV solution and the time sheet as a way to submit for payment. The respondent suggested wording changes to the administrative rule. Department response 3: PCS is the generic description for all services that are required to use EVV. For Iowa and the HCBS program, personal care includes CDAC and homemaker services. As such, homemaker services do not need to be specifically identified in the context of the rule. As noted in Department response 2, rule 441—79.3(249A) codifies the requirements for service documentation for HCBS services, including services required to use EVV. The CCO rules in subparagraph 78.34(13)“m”(4) require CCO documentation to comport with the service documentation in rule 441—79.3(249A). The EVV solution may be used to document PCS and, when used, can meet the requirements for maintenance of service records in rule 441—79.3(249A). Since the service documentation requirements are already established in rule 441—79.3(249A), the Department did not make changes from the EVV rules published under Notice.Adoption of Rule Making This rule making was adopted by the Council on Human Services on April 8, 2021.Fiscal Impact EVV implementation for personal care services will be completed via the MCO, and the approved contracted vendor will be in compliance with the mandate for the MCO population. There is no direct cost to the state. The FFS population compliance costs are larger than the non-compliance fee given the smaller FFS personal care services population and will be deployed to be in compliance in a second phase. The non-compliance fee is estimated at $5,000 in SFY21 and $15,000 in SFY22. There could potentially be an additional fee of approximately $10,000 for the first six months of SFY23. The expectation is that FFS personal care will be implemented in the second phase when home health is implemented in January 2023. The Department expects to incur costs in SFY22 as it prepares for the January 2023 implementation. These development costs are currently estimated at $2,040,000 and are expected to be reimbursed at a 90 percent federal match rate. There may also be development costs in SFY23, but the amount is not yet known. Estimates were based on market research. Estimates for the non-compliance costs for personal care services associated with the Federal Medical Assistance Percentages (FMAP) reduction in CY21 through CY23 were based on the FFS population currently receiving PCS. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 441—1.8(17A,217).Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date This rule making will become effective on July 1, 2021. The following rule-making actions are adopted:

ITEM 1. Adopt the following new definition of “Electronic visit verification system” in rule 441—73.1(249A): "Electronic visit verification system" means, with respect to personal care services or home health care services defined in Section 12006 of the 21st Century Cures Act, a system under which visits conducted as part of such services are electronically verified with respect to: (1) the type of service performed, (2) the individual receiving the service, (3) the date of the service, (4) the location of service delivery, (5) the individual providing the service, and (6) the time the service begins and ends.

ITEM 2. Amend subrule 73.18(2) as follows: 73.18(2) Content of individual treatment record. The managed care organization shall ensure that participating providers maintain an adequate record-keeping system that includes a complete medical or service record for each enrolled member including documentation of all services provided to each enrollee in compliance with the contract and provisions of rule 441—79.3(249A) and pursuant to federal funding requirements, including 42 CFR 456 as amended to October 16, 2015.Beginning January 1, 2021, the managed care organization shall require use of an electronic visit verification system for personal care services.

ITEM 3. Amend paragraph 78.34(7)"c" as follows: c. Service documentation.The consumer-directed attendant care provider must complete Form 470-4389, Consumer-Directed Attendant Care (CDAC) Service Record, for each day of serviceshall document evidence of compliance with the requirements of this chapter and rule 441—79.3(249A). The documentation or copies of the documentation must be maintained or be electronically accessible by the consumer-directed attendant care provider. Providers must use an electronic visit verification system that captures all documentation requirements of the Consumer-Directed Attendant Care (CDAC) Service Record (Form 470-4389) or use Form 470-4389. Any service component that is not documented in accordance with rule 441—79.3(249A) shall not be payable.

ITEM 4. Amend subparagraph 78.34(13)"m" as follows: (4) EmployeesFor personal care services, employees shall use an electronic visit verification system that captures all documentation requirements of the Consumer Choices Option Semi-Monthly Time Sheet (Form 470-4429) or use Form 470-4429. All other employees shall complete, sign and date Form 470-4429, Consumer Choices Option Semi-Monthly Time Sheet, for each date of service provided to a member. Documentation shall comportAll employees shall maintain documentation that complies with 441—subparagraph 79.3(2)“c”(3), “Service documentation.”rule 441—79.3(249A).

ITEM 5. Amend paragraph 78.37(15)"c" as follows: c. Service documentation.The consumer-directed attendant care individual and agency providers must complete Form 470-4389, Consumer-Directed Attendant Care (CDAC) Service Record, for each day of serviceshall document evidence of compliance with the requirements of this chapter and rule 441—79.3(249A). Assisted living facilities may choose to use Form 470-4389 or may devise another system that adheres to the requirements of rule 441—79.3(249A).The documentation or copies of the documentation must be maintained or be electronically accessible by the consumer-directed attendant care provider. Providers must use an electronic visit verification system that captures all documentation requirements of the Consumer-Directed Attendant Care (CDAC) Service Record (Form 470-4389) or use Form 470-4389. Any service component that is not documented in accordance with rule 441—79.3(249A) shall not be payable.

ITEM 6. Amend paragraph 78.38(8)"c" as follows: c. Service documentation.The consumer-directed attendant care provider must complete Form 470-4389, Consumer-Directed Attendant Care (CDAC) Service Record, for each day of serviceshall document evidence of compliance with the requirements of this chapter and rule 441—79.3(249A). The documentation or copies of the documentation must be maintained or be electronically accessible by the consumer-directed attendant care provider. Providers must use an electronic visit verification system that captures all documentation requirements of the Consumer-Directed Attendant Care (CDAC) Service Record (Form 470-4389) or use Form 470-4389. Any service component that is not documented in accordance with rule 441—79.3(249A) shall not be payable.

ITEM 7. Amend paragraph 78.41(8)"c" as follows: c. Service documentation.The consumer-directed attendant care provider must complete Form 470-4389, Consumer-Directed Attendant Care (CDAC) Service Record, for each day of serviceshall document evidence of compliance with the requirements of this chapter and rule 441—79.3(249A). The documentation or copies of the documentation must be maintained or be electronically accessible by the consumer-directed attendant care provider. Providers must use an electronic visit verification system that captures all documentation requirements of the Consumer-Directed Attendant Care (CDAC) Service Record (Form 470-4389) or use Form 470-4389. Any service component that is not documented in accordance with rule 441—79.3(249A) shall not be payable.

ITEM 8. Amend paragraph 78.43(13)"c" as follows: c. Service documentation.The consumer-directed attendant care provider must complete Form 470-4389, Consumer-Directed Attendant Care (CDAC) Service Record, for each day of serviceshall document evidence of compliance with the requirements of this chapter and rule 441—79.3(249A). The documentation or copies of the documentation must be maintained or be electronically accessible by the consumer-directed attendant care provider. Providers must use an electronic visit verification system that captures all documentation requirements of the Consumer-Directed Attendant Care (CDAC) Service Record (Form 470-4389) or use Form 470-4389. Any service component that is not documented in accordance with rule 441—79.3(249A) shall not be payable.

ITEM 9. Amend paragraph 78.46(1)"c" as follows: c. Service documentation.The consumer-directed attendant care provider must complete Form 470-4389, Consumer-Directed Attendant Care (CDAC) Service Record, for each day of serviceshall document evidence of compliance with the requirements of this chapter and rule 441—79.3(249A). The documentation or copies of the documentation must be maintained or be electronically accessible by the consumer-directed attendant care provider. Providers must use an electronic visit verification system that captures all documentation requirements of the Consumer-Directed Attendant Care (CDAC) Service Record (Form 470-4389) or use Form 470-4389. Any service component that is not documented in accordance with rule 441—79.3(249A) shall not be payable.

ITEM 10. Adopt the following new definition of “Electronic visit verification system” in rule 441—83.1(249A): "Electronic visit verification system" means, with respect to personal care services or home health care services defined in Section 12006 of the 21st Century Cures Act, a system under which visits conducted as part of such services are electronically verified with respect to: (1) the type of service performed, (2) the individual receiving the service, (3) the date of the service, (4) the location of service delivery, (5) the individual providing the service, and (6) the time the service begins and ends.

ITEM 11. Adopt the following new definition of “Electronic visit verification system” in rule 441—83.21(249A): "Electronic visit verification system" means, with respect to personal care services or home health care services defined in Section 12006 of the 21st Century Cures Act, a system under which visits conducted as part of such services are electronically verified with respect to: (1) the type of service performed, (2) the individual receiving the service, (3) the date of the service, (4) the location of service delivery, (5) the individual providing the service, and (6) the time the service begins and ends.

ITEM 12. Adopt the following new definition of “Electronic visit verification system” in rule 441—83.41(249A): "Electronic visit verification system" means, with respect to personal care services or home health care services defined in Section 12006 of the 21st Century Cures Act, a system under which visits conducted as part of such services are electronically verified with respect to: (1) the type of service performed, (2) the individual receiving the service, (3) the date of the service, (4) the location of service delivery, (5) the individual providing the service, and (6) the time the service begins and ends.

ITEM 13. Adopt the following new definition of “Electronic visit verification system” in rule 441—83.60(249A): "Electronic visit verification system" means, with respect to personal care services or home health care services defined in Section 12006 of the 21st Century Cures Act, a system under which visits conducted as part of such services are electronically verified with respect to: (1) the type of service performed, (2) the individual receiving the service, (3) the date of the service, (4) the location of service delivery, (5) the individual providing the service, and (6) the time the service begins and ends.

ITEM 14. Adopt the following new definition of “Electronic visit verification system” in rule 441—83.81(249A): "Electronic visit verification system" means, with respect to personal care services or home health care services defined in Section 12006 of the 21st Century Cures Act, a system under which visits conducted as part of such services are electronically verified with respect to: (1) the type of service performed, (2) the individual receiving the service, (3) the date of the service, (4) the location of service delivery, (5) the individual providing the service, and (6) the time the service begins and ends.

ITEM 15. Adopt the following new definition of “Electronic visit verification system” in rule 441—83.101(249A): "Electronic visit verification system" means, with respect to personal care services or home health care services defined in Section 12006 of the 21st Century Cures Act, a system under which visits conducted as part of such services are electronically verified with respect to: (1) the type of service performed, (2) the individual receiving the service, (3) the date of the service, (4) the location of service delivery, (5) the individual providing the service, and (6) the time the service begins and ends.

ITEM 16. Adopt the following new definition of “Electronic visit verification system” in rule 441—83.121(249A): "Electronic visit verification system" means, with respect to personal care services or home health care services defined in Section 12006 of the 21st Century Cures Act, a system under which visits conducted as part of such services are electronically verified with respect to: (1) the type of service performed, (2) the individual receiving the service, (3) the date of the service, (4) the location of service delivery, (5) the individual providing the service, and (6) the time the service begins and ends. [Filed 4/9/21, effective 7/1/21][Published 5/5/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 5/5/21.ARC 5602CInsurance Division[191]Adopted and Filed

Rule making related to property casualty insurance and producer continuing education

The Insurance Division hereby amends Chapter 11, “Continuing Education for Insurance Producers,” and Chapter 20, “Property and Casualty Insurance,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code sections 505.8, 515.115, 515F.37 and 522B.18.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapters 505, 515, 515F and 522B.Purpose and Summary These amendments are a result of the Division’s review of rules. The amendments to Chapter 11 remove the cap on self-study continuing education for insurance producers. This change will effectively make the classroom continuing education requirement an option. These amendments update Chapter 20 by removing unnecessary language, correcting statute references, and conforming to current practice.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on March 10, 2021, as ARC 5500C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by Douglas M. Ommen, Iowa Insurance Commissioner, on April 15, 2021.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Division for a waiver of the discretionary provisions, if any, pursuant to 191—Chapter 4.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 June 9, 2021. The following rule-making actions are adopted:

ITEM 1. Amend paragraph 11.3(4)"b" as follows: b. A producer may receive up to 18 CE credits for self-study courses during a CE term that do not meet the definition of paragraph 11.3(4)“a” if the producer: (1) Submits an affidavit to the CE provider stating that the examination was independently proctored and was completed without any outside assistance, and (2) Correctly answers at least 70 percent of the questions presented.

ITEM 2. Amend subrule 11.5(7) as follows: 11.5(7) A CE course must be offered for a minimum of one credit. Fractional credits will not be awarded. The total credit that may be awarded for a CE course is limited to 36 credits, except that credit for a self-study course as defined in paragraph 11.3(4)“b” is limited to 18 CE credits.

ITEM 3. Amend rule 191—20.1(505,509,514A,515,515A,515F) as follows:

191—20.1(505,509,514A,515,515A,515F) General filing requirementsfor filing rates and forms. 20.1(1) Insurance companies required to file rates or forms with the division shall submit required rate and form filings and any fees required for the filings electronically using the National Association of Insurance Commissioners’ System for Electronic Rate and Form Filing (SERFF). Insurance companies must comply with the division’s requirementsfor submissions, including both the Iowa general instructions and the specific submission requirements for the type of insurance for which the companies are submitting forms or rates, as set out on the SERFF Web site at www.serff.orgwebsite at serff.com. 20.1(2) No rate filing shall include any adjustment designed to recover underwriting or operating losses incurred out of state. Upon request by the commissioner, insurers doing business in Iowa shall segregate in their rate filings data from any state identified by the commissioner, and the filings shall include a certification that no portion of any rate increase is designed to recover underwriting or operating losses incurred in another state.

ITEM 4. Amend rule 191—20.2(505) as follows:

191—20.2(505) Objection toform filing. 20.2(1) Any insured or established organization with one or more insureds among its members that has an objection to a form filing may submit to the insurance commissioner a written request for a hearing on the filing. A request for a hearing must be filed within 20 days after the filing has been received by the commissioner. 20.2(2) Within 20 days after receipt of the request for a hearing, the commissioner will hold a hearing to consider the objection to the filing. The commissioner will provide not less than 10 days’ written notice of the time and place of the hearing to the person or association filing the demandrequest, to the filing insurer or organization, and to any other person requesting notice. The commissioner may suspend or postpone the effective date of the filing pending the hearing. Upon consideration of the information received at the hearing, the commissioner may determine whether or not to approve the filing.

ITEM 5. Amend subrule 20.4(3) as follows: 20.4(3) A form filing which has not been previously approved, disapproved or questioned shall be deemed approved on or after 30 days from its receiptthe date that all necessary requirements are submitted to SERFF.

ITEM 6. Amend rule 191—20.5(515A) as follows:

191—20.5(515A) Rate or manual rule filing. 20.5(1) Every insurer shall determine and file its final rates with the commissioner pursuant to provisions of Iowa Code chapter 515F, except for insurers of workers’ compensation who are specifically excluded by Iowa Code section 515F.5515F.3(2) and residual market mechanisms. a. Advisory organizations, defined in Iowa Code section 515F.2 and licensed pursuant to Iowa Code section 515F.8, may file on behalf of their member and subscriber companies prospective loss costs, supplementary raterating information and supporting information as defined in Iowa Code section 515F.2. Advisory organization filings shall be filed and made effective in accordance with the provisions of Iowa Code sections 515F.4 to 515F.6 or 515F.23 to 515F.25 that apply to the filing and approval of rates and supplementary rating information. b. An insurer may satisfy its obligation to make rate filings by becoming a participating insurer of a licensed advisory organization that makes reference filings of advisory prospective loss costs and by authorizing the commissioner to accept such filings on its behalf. The insurer’s rates shall be the prospective loss costs filed by the advisory organization which have been put into effect in accordance withparagraph20.5(1)“a,” combined with the loss cost adjustments which are filed in accordance with this paragraph.20.5(1)“a.” c. An insurer may satisfy its obligation to make filings of supplementary rating information by becoming a participating insurer of a licensed advisory organization whichthat makes such filings and by authorizing the commissioner to accept such filings on its behalf, subject to any modifications filed by the insurer. d. If an insurer has previously filed forms modifying coverage provided by the applicable advisory organization forms, such fact should be noted in the rate filing. 20.5(2) Rate filings shall reflect that due consideration has been given to the factors enumerated in Iowa Code section 515F.4(1), and shall be accompanied by supporting statistical exhibits. In addition, each filing shall note the date of the last revision of rates affecting this coverage and briefly describe the nature of that revision. 20.5(3) Insurers making filings inon their own behalf and advisory organizationsmaking a filing on behalf of an insurer shall identify each page filed by printing, typing or stamping their own name thereon. 20.5(4) If a company filing rates used the manuals of an advisory organization in its filings, any portion of the manuals of theadvisory organization whichthat will not be followed by the filing must be clearly shown as deleted or amended by use of an appropriately numbered exception page. 20.5(5) For residual market mechanisms, insurers making filings inon their own behalf shall identify the submission as an independent filing or a deviation from the bureau filingpreviously filed form, rate, or rule. A deviation filing is a submission which represents modification of a form or rate or rule previously filed by an authorized rating organization or advisory organization on behalf of its member and subscriber companies. If an insurer has previously filed forms modifying coverage provided by the applicable standard or bureau forms, such fact should be noted in the rate filing.

ITEM 7. Amend rule 191—20.6(515A) as follows:

191—20.6(515A) Exemption fromrate filing requirement. 20.6(1) An insurer requesting, pursuant to Iowa Code section 515F.5(4), suspension or modification of the requirement of filing of a rate shall provide the commissioner with a full explanation for the proposed exemption from the filing requirement together with any actuarial data available and shall furnish the commissioner with any additional material the commissioner may desire. 20.6(2) If the commissioner finds that a proposed rate represents a classification for which credible and homogeneous statistical experience does not exist and cannot be analyzed using standard actuarial techniques to produce a statistically significant average rate for the individual risks within the classification, the commissioner may exempt the proposed rateinsurer from the filing requirementfor that proposed rate. 20.6(3) An insurer shall maintain statistical records of the experience and expenses attendant upon the risks covered by any rate exempted by the commissioner from the filing requirement. The insurer may supplement statistical information with information filed with the commissionerwith information by an advisory organizationlicensed pursuant to Iowa Code section 515F.8. This rule is intended to implement Iowa Code section 515A.4(6).

ITEM 8. Amend rule 191—20.11(515) as follows:

191—20.11(515) Exemption from form and rate filing requirements. 20.11(1) The following lines of insurance shall be exempt from the form filing requirements of Iowa Code section 515.102: a. Aircraft hull and aviation liability. b. Difference-in-conditions. c. Kidnap-ransom. d. Manuscript policies and endorsements issued to not more than two insureds in Iowa. e. Political risk. f. Reinsurance. g. Terrorism. h. War risk. i. Weather insurance. 20.11(2) Insurers shall be exempt from filing rates for the lines of insurance exempted in 20.11(1). 20.11(3) An insurer shall, within 30 days ofthe commissioner’s request, provide the commissioner with any of the information which is exempted from form and rate filing requirements.

ITEM 9. Amend rule 191—20.41(515,515F) as follows:

191—20.41(515,515F) Purpose. This division is intended to implement and interpret 2003 Iowa Acts, chapter 119,Iowa Code sections 515F.30 to 515F.38 for the purpose of establishing procedures and requirements for a mandatory risk-sharing facility for basic property insurance coverage. This division is also intended to encourage improvement of and reasonable loss prevention measures for properties located in Iowa and to further orderly community development.

ITEM 10. Amend rule 191—20.43(515,515F), introductory paragraph, as follows:

191—20.43(515,515F) Definitions. In addition to the definitions of Iowa Code sections 514F.2 and 515F.32 and rule 191—20.1(505,509,514A,515,515A,515F), the following definitions apply:

ITEM 11. Amend rule 191—20.43(515,515F), definition of “Iowa FAIR Plan,” as follows: "Iowa FAIR PlanAssociation" "the Plan" means the nonprofit, unincorporated mandatory risk-sharing facility establishedand governed byIowa Code sections 515F.30 through 515F.38 and this division to provide for basic property insurance.

ITEM 12. Amend subrule 20.47(3) as follows: 20.47(3) The governing committee may designate, with the approval of the commissioner, a rate service organization as defined in Iowa Code chapter 515F,an independent inspection firm to make inspections as required under the Plan and to perform such other duties as may be authorized by the governing committee.

ITEM 13. Amend rule 191—20.71(515), definition of “ISO,” as follows: "ISO" means the insurance services officeInsurance Services Office, Inc. [Filed 4/15/21, effective 6/9/21][Published 5/5/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 5/5/21.ARC 5598CInsurance Division[191]Adopted and Filed

Rule making related to long-term care insurance

The Insurance Division hereby amends Chapter 39, “Long-Term Care Insurance,” and Chapter 72, “Long-Term Care Asset Preservation Program,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code sections 514G.111 and 514H.9.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapters 514G and 514H.Purpose and Summary These amendments are a result of the Division’s five-year review of rules. These amendments update the chapters by correcting statutory, Iowa Acts, and website references. Changes are made to Chapter 72 to reflect the repeal of Iowa Code chapter 249G. The rules in Chapter 72 are still necessary in order to set forth the requirements for policies sold prior to December 31, 2009.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on February 24, 2021, as ARC 5472C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by Douglas M. Ommen, Iowa Insurance Commissioner, on April 15, 2021.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Commissioner 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 June 9, 2021. The following rule-making actions are adopted:

ITEM 1. Amend rule 191—39.2(514G) as follows:

191—39.2(514G) Authority. This chapter is issued pursuant to the authority vested in the commissioner under Iowa Code section 514G.7514G.105 in accordance with the procedures set forth in Iowa Code chapter 17A.

ITEM 2. Amend subrule 39.5(19) as follows: 39.5(19) “Similar policy forms” means all of the long-term care insurance policies and certificates issued by an insurer in the same long-term care benefit classification as the policy form being considered. Certificates of groups that meet the definitionof group long-term care insurance in Iowa Code section 514G.4(4)514G.103 are not considered similar to certificates or policies otherwise issued as long-term care insurance, but are similar to other comparable certificates with the same long-term care benefit classifications. For purposes of determining similar policy forms, long-term care benefit classifications are defined as follows: institutional long-term care benefits only, noninstitutional long-term care benefits only, or comprehensive long-term care benefits.

ITEM 3. Amend paragraph 39.6(2)"b" as follows: b. Unless otherwise provided in the policy or certificate, a preexisting condition, regardless of whether it is disclosed on the application, need not be covered until the waiting period described in Iowa Code section 514G.7(3)“b”514G.105(3)“b” expires. No long-term care insurance policy or certificate may exclude or use waivers or riders of any kind to exclude, limit or reduce coverage or benefits for specifically named or described preexisting diseases or physical conditions beyond the waiting period described in Iowa Code section 514G.7(3)“b.”514G.105(3)“b.”

ITEM 4. Amend subrule 39.6(7), introductory paragraph, as follows: 39.6(7) Electronic enrollment for group policies. In the case of a group defined in Iowa Code section 514G.4(4)long-term care insurance, any requirement that a signature of an insured be obtained by a producer or insurer shall be deemed satisfied if:

ITEM 5. Amend subrule 39.7(5) as follows: 39.7(5) Other limitations or conditions on eligibility for benefits. A long-term care insurance policy or certificate containing any limitations or conditions for eligibility, other than those prohibited in Iowa Code section 514G.7(4)“b,”514G.105(3)“b,” shall set forth a description of the limitations or conditions, including any required number of days of confinement, in a separate paragraph of the policy or certificate and shall label such paragraph “Limitations or Conditions on Eligibility for Benefits.”

ITEM 6. Amend subrule 39.8(5) as follows: 39.8(5) Every insurer or other entity selling or issuing long-term care insurance benefits shall maintain a record of all policy or certificate rescissions, both state and countrywide, except those which the insured voluntarily effectuated and shall annually furnish this information to the insurance commissioner in the format prescribed by the National Association of Insurance Commissioners, substantially similar to Appendix A.

ITEM 7. Amend subrule 39.10(2) as follows: 39.10(2) Where the policy is issued to a group, the required offer in subrule 39.10(1) shall be made to the group policyholder; except, if the policy is issued to a group defined in Iowa Code section 514G.4(5)“d,”514G.103(9)“d,” other than to a continuing care retirement community, the offering shall be made to each proposed certificate holder.

ITEM 8. Amend subrule 39.11(1), introductory paragraph, as follows: 39.11(1) Application forms shall include the following questions designed to elicit information whether, as of the date of the application, the applicant has another long-term care insurance policy or certificate in force or whether a long-term care policy or certificate is intended to replace any other accident and sickness or long-term care policy or certificate presently in force. A supplementary application or other form to be signed by the applicant and producer, except where the coverage is sold without a producer, containing such questions may be used. With regard to a replacement policy issued to a group defined by Iowa Code section 514G.4(5)“a,”514G.103(9)“a,” the following questions may be modified only to the extent necessary to elicit information about health or long-term care insurance policies other than the group policy being replaced; provided, however, that the certificate holder has been notified of the replacement.

ITEM 9. Amend rule 191—39.14(514G) as follows:

191—39.14(514G) Filing requirement. Prior to an insurer or similar organization’s offering group long-term care insurance to a resident of this state pursuant to Iowa Code section 514G.4(5)“d,”514G.103(9)“d,” it shall file with the commissioner evidence that the group policy or certificate thereunder has been approved by a state having statutory or regulatory long-term care insurance requirements substantially similar to those adopted in this state.

ITEM 10. Amend rule 191—39.18(514G), introductory paragraph, as follows:

191—39.18(514G) Standard format outline of coverage. This rule, which is not applicable to life policies with long-term care riders attached, implements, interprets and makes specific the provisions of Iowa Code section 514G.7(1)514G.105 in prescribing a standard format and the content of an outline of coverage.

ITEM 11. Amend subrule 39.29(2) as follows: 39.29(2) When a group long-term care insurance policy is issued, the offer required in subrule 39.29(1) shall be made to the group policyholder. However, if the policy is issued as group long-term care insurance to a group as defined in Iowa Code section 514G.4(4)“d,”514G.103(9)“d,” other than to a continuing care retirement community or other similar entity, the offering shall be made to each proposed certificate holder.

ITEM 12. Amend paragraph 39.30(7)"b" as follows: b. For certificates issued on or after July 1, 2003, under a group long-term care insurance policy as defined in Iowa Code section 514G.4(4)“a”514G.103 that was in force on February 1, 2003, the provisions of this rule shall not apply.

ITEM 13. Amend rule 191—39.41(514G) as follows:

191—39.41(514G) Purpose. This division is intended to implement Iowa Code chapter 514Gas amended by 2008 Iowa Acts, House File 2694, to provide a uniform process for insureds covered under long-term care insurance to request an independent review of a denial of coverage based on a benefit trigger determination.

ITEM 14. Amend rule 191—39.43(514G) as follows:

191—39.43(514G) Definitions. For purposes of this division, the definitions found in 2008 Iowa Acts, House File 2694, section 4,Iowa Code section 514G.103 shall apply.

ITEM 15. Amend rule 191—39.44(514G) as follows:

191—39.44(514G) Notice of benefit trigger determination and content. The notice required by 2008 Iowa Acts, House File 2694, section 10,Iowa Code section 514G.109 shall contain the following information:

The reason that the insurer determined that the policy benefit trigger has not been met by the insured.
A description of the internal appeal mechanism provided under the long-term care policy.
A description of how the insured, after exhausting the insurer’s internal appeal process, has the right to have the benefit trigger determination reviewed under the independent review process required by 2008 Iowa Acts, House File 2694, section 11Iowa Code section 514G.110.

ITEM 16. Amend subrule 39.47(1) as follows: 39.47(1) The commissioner shall provide written notice of the certification decision to the insurer and the insured within the two-business-day period specified in 2008 Iowa Acts, House File 2694, section 11Iowa Code section 514G.110.

ITEM 17. Amend subrule 39.51(2), introductory paragraph, as follows: 39.51(2) Each insurer shall provide the commissioner a detailed description of the process that the insurer has in place to ensure compliance with the requirements of this division and of 2008 Iowa Acts, House File 2694, sections 10 and 11Iowa Code sections 514G.109 and 514G.110. The description required by this subrule shall be filed in a format as directed by the commissioner on or before March 1, 2009, and thereafter as requested by the commissioner. The description shall include:

ITEM 18. Amend subrule 39.53(5) as follows: 39.53(5) Procedures to ensure adherence to the requirements of this division and Iowa Code chapter 514Gas amended by 2008 Iowa Acts, House File 2694, by any contractor, subcontractor, subvendor, agent or employee affiliated with the independent review entity.

ITEM 19. Amend rule 191—39.54(514G) as follows:

191—39.54(514G) Toll-free telephone number. The independent review entity shall establish a toll-free telephone service to receive information relating to independent reviews pursuant to this division and Iowa Code chapter 514Gas amended by 2008 Iowa Acts, House File 2694. The system shall include a procedure to ensure the capability of accepting, recording, or providing instruction to respond to incoming telephone calls during other than normal business hours. The independent review entity shall also establish a facsimile and electronic mail service.

ITEM 20. Amend rule 191—39.75(514H,83GA,HF723), parenthetical implementation statute, as follows:

191—39.75(514H,83GA,HF723) Purpose.

ITEM 21. Amend subrule 39.75(1) as follows: 39.75(1) This division is intended to implement Iowa Code chapter 514Has amended by 2009 Iowa Acts, House File 723, and Section 6021 of the federal Deficit Reduction Act of 2005, Public Law 109-171, to establish, in conjunction with the department of human services, a long-term care partnership program in Iowa to provide for financing of long-term care through a combination of private insurance and Iowa Medicaid.This program is also known as the long-term care asset disregard incentive program.

ITEM 22. Amend rule 191—39.76(514H,83GA,HF723), parenthetical implementation statute, as follows:

191—39.76(514H,83GA,HF723) Effective date.

ITEM 23. Amend rule 191—39.77(514H,83GA,HF723), introductory paragraph, as follows:

191—39.77(514H,83GA,HF723) Definitions. For purposes of this division, the definitions in Iowa Code chapter 514Has amended by 2009 Iowa Acts, House File 723, and the definitions in rule 191—39.4(514G) shall apply. In addition, the following definitions shall apply:

ITEM 24. Amend rule 191—39.77(514H,83GA,HF723), definition of “Iowa long-term care partnership policy,” as follows: "Iowa long-term care partnership policy" "partnership policy" means an insurance policy that meets the following requirements:

The policy covers an insured who, when coverage first became effective under the policy, was a resident of Iowa or was an individual eligible under subrule 39.78(2).
The policy is a qualified long-term care insurance policy as defined in Section 7702B(b) of the Internal Revenue Code of 1986 and was issued no earlier than January 1, 2010.
The policy meets all of the applicable requirements of this chapter and Iowa Code chapter 514Has amended by 2009 Iowa Acts, House File 723.
The division has certified the policy as meeting the requirements of the following: Section 1917(b) of the Social Security Act, 42 U.S.C. 1396p; Section 6021 of the federal Deficit Reduction Act of 2005, Public Law 109-171; and any applicable federal regulations or guidelines.
The policy provides the following inflation protections:
For a person who is less than 61 years of age as of the date of purchase of the policy or date of issuance of the certificate, the policy provides either annual compounded inflation protection of not less than 3 percent or annual compounded inflation protection of not less than a rate based on changes in the consumer price index. “Consumer price index” means consumer price index for all urban consumers, U.S. city average, all items, as determined by the Bureau of Labor Statistics of the United States Department of Labor.
For a person who is at least 61 years of age but less than 76 years of age as of the date of purchase of the policy or date of issuance of the certificate, the policy provides either an inflation feature that meets the requirements of this definition, paragraph “5,” first bulleted paragraph, or an automatic inflation feature that provides annual simple inflation increases at a rate of not less than 3 percent.
For a person who is at least 76 years of age as of the date of purchase of the policy or date of issuance of the certificate, an inflation protection feature may be included in the policy but is not required.

ITEM 25. Amend rules 191—39.78(514H,83GA,HF723) to 191—39.85(514H,83GA,HF723), parenthetical implementation statutes, by striking “514H,83GA,HF723” wherever it appears and inserting “514H” in lieu thereof.

ITEM 26. Amend subrule 39.80(2) as follows: 39.80(2) An insurer or a producer soliciting or offering to sell a partnership policy shall provide to each prospective applicant a copy of the Iowa Long-Term Care Partnership Program Consumer Guide. The Iowa Long-Term Care Partnership Program Consumer Guide form may be found on the division’s website, www.iid.state.ia.usat shiip.iowa.gov.

ITEM 27. Amend 191—Chapter 39, implementation sentence, as follows: These rules are intended to implement Iowa Code section 514D.9, Iowa Code chapterand chapters 514G and Iowa Code chapter 514H as amended by 2009 Iowa Acts, House File 723.

ITEM 28. Amend 191—Chapter 39, Appendix I, Additional Information section, as follows:Additional InformationIf you have questions regarding the long-term care insurance policies or certificates, please contact [carrier name]. If you have questions regarding current laws governing Medicaid eligibility, you should contact the Iowa Department of Human Services (Sally Oudekerk, Medicaid Policy Specialist, Bureau of Medical SupportAllison Scott, Medicaid Program Manager, telephone number (515)281-3709(515)418-3497, email address soudeke@dhs.state.ia.usascott@dhs.state.ia.us).

ITEM 29. Amend rule 191—72.1(249G) as follows:

191—72.1(249G514H) Purpose. The purpose of this chapter is to establishset forth the minimum standards for long-term care insurance policies and certificates to qualify for participationsold prior to December 31, 2009, that participate in the Iowa long-term care asset preservation program; establish documentation and reporting requirements for issuers of policies or certificates to qualify under the Iowa long-term care asset preservation program; provide full disclosures in the sale of long-term care insurance policies and certificates which qualify under the Iowa long-term care asset preservation program; and facilitate public understanding regarding long-term care insurance and long-term care insurance policies and certificates which qualify under the Iowa long-term care asset preservation program.

ITEM 30. Amend rule 191—72.2(249G) as follows:

191—72.2(249G514H) Applicability and scope. The requirements of this chapter apply to any long-term care insurance policy or certificatethat was authorized for sale by the division of insurance as qualifying under the Iowa long-term care asset preservation program underformer Iowa Code chapter 249G. No long-term care insurance policy or certificate which has been approved by the division of insurance as a certified long-term care insurance policy or certificate under this chapter may be advertised, solicited, or issued for delivery in this state after December 31, 2009.

ITEM 31. Amend rules 191—72.3(249G) to 191—72.15(249G), parenthetical implementation statutes, by striking “249G” wherever it appears and inserting “514H” in lieu thereof.

ITEM 32. Amend rule 191—72.3(249G), definition of “Long-term care asset preservation program,” as follows: "Long-term care asset preservation program" means the program authorized informer Iowa Code chapter 249G.

ITEM 33. Amend rule 191—72.3(249G), definition of “Preadmission screening program,” as follows: "Preadmission screening programreview" means the program which requires that each person seeking admission to a nursing facility must be screened and approved for admission by the Iowa Foundation of Medical Care in accordance with 441 IAC 81.3(249A)rule 441—81.3(249A).

ITEM 34. Amend paragraphs 72.7(1)"c" and 72.7(1)"d" as follows: c. Include a provision that the policy or certificate will utilize the “insured event” criteria, defined in 72.3(249G)rule 191—72.3(514H), for determining eligibility for benefits and for determining the amount of asset disregard. Approval for admission to a nursing facility under the “preadmission screening program,” as defined in 72.3(249G)rule 191—72.3(514H), shall be deemed sufficient but not necessary to meet this insured event criteria. d. Include a provision that policy or certificate benefits can be used to purchase nursing facility care or home- and community-based care. Home- and community-based care shall include, at a minimum, but not be limited to, the following: (1) Home health nursing. (2) Home health aide services. (3) Attendant care. (4) Respite care. (5) Adult day care services.All home- and community-based services shall include case management services delivered by a case management agency. An asset disregard will be provided for all benefits used by qualified insureds to purchase “Medicaid-eligible long-term care services” as defined in 72.3(249G)rule 191—72.3(514H).

ITEM 35. Amend paragraph 72.7(1)"i" as follows: i. Include a provision that benefits shall only be paid after the payment of all other benefits to which the policyholder or certificate holder is otherwise entitled, excluding Medicaid. The issuer shall make reasonable efforts to determine whether benefits are available from other policies or certificates or from Medicare. An asset disregard will only be provided for benefits the issuer can document were used to purchase Medicaid-eligible long-term care services as defined in 72.3(249G)rule 191—72.3(514H) for a qualified insured.

ITEM 36. Amend paragraph 72.13(1)"b" as follows: b. The issuer shall agree to give the commissioner access to all information described in rule 72.10(249G)191—72.10(514H) on an aggregate basis for all policyholders or certificate holders and on an individual basis for all policyholders or certificate holders who have ever received any benefits. Access to information on persons who have not applied for Medicaid is required in order for the commissioner to determine if an issuer’s system for documenting asset protection is functioning correctly. The commissioner shall have the final decision concerning the frequency of access to the data and the size of samples for auditing or other purposes.

ITEM 37. Amend 191—Chapter 72, implementation sentence, as follows: These rules are intended to implement Iowa Code Supplement chapter 249G514H. [Filed 4/15/21, effective 6/9/21][Published 5/5/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 5/5/21.ARC 5599CMedicine Board[653]Adopted and Filed

Rule making related to appointment of the executive director

The Board of Medicine hereby amends Chapter 1, “Administrative and Regulatory Authority,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted 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 135.11B.Purpose and Summary During the 2019 Legislative Session, the General Assembly passed 2019 Iowa Acts, House File 766, section 59 (now codified as Iowa Code section 135.11B), which provided that the Executive Director of the Board of Medicine shall be appointed by the Director of the Department of Public Health. This rule making amends subrules 1.3(5) and 1.3(6) to reflect this change.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on December 30, 2020, as ARC 5372C. 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 February 19, 2021.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 653—Chapter 3.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 June 9, 2021. The following rule-making action is adopted:

ITEM 1. Amend rule 653—1.3(17A) as follows:

653—1.3(17A) Organization of board. The board: 1.3(1) Makes policy relative to matters involving medical and acupuncture education, licensure, practice, and discipline. 1.3(2) Conducts business according to board-approved policy. 1.3(3) Elects a chairperson, vice chairperson and a secretary from its membership at the last regular board meeting prior to May 1 or at another date in April scheduled by the board. 1.3(4) A majority of the members of the board shall constitute a quorum. Official action, including filing of formal charges or imposition of discipline, requires a majority vote of members present. 1.3(5) Has the authority to: a. Administer the statutes and rules relating to the practice of medicine and surgery, osteopathic medicine and surgery, and the practice of acupuncture by acupuncturists, and the practice of genetic counseling by genetic counselors. b. Review or investigate, upon receipt of a complaint or upon its own initiation, based upon information or evidence received, alleged violations of statutes or rules which relate to the practice of medicine and surgery, osteopathic medicine and surgery, and the practice of acupuncture by licensed acupuncturists, and the practice of genetic counseling by licensed genetic counselors. c. Determine in any case whether an investigation or a disciplinary action is warranted. d. Initiate and prosecute disciplinary proceedings. e. Impose licensee discipline. f. Request that the attorney general file appropriate court action for enforcement of the board’s authority relating to licensees or other persons who are charged with violating statutes or rules the board administers or enforces. g. Establish and register peer reviewers. h. Refer to one or more registered peer reviewers for investigation, review, and report to the board any complaint or other evidence of an act or omission which the board has reasonable grounds to believe may constitute cause for licensee discipline. However, the referral of any matter shall not relieve the board of any of its duties and shall not divest the board of any authority or jurisdiction. i. Determine eligibility for license renewal and administer the renewal of licenses. j. Establish and administer rules for continuing education and mandatory training requirements as a condition of license renewal. k. Establish fees for examination, fees for the issuance of licenses and fees for other services provided by the board with the intention of producing sufficient revenue to cover the expenses involved with operation of the board and the board office. l. Establish committees of the board, the members of which, except for the executive committee, shall be appointed by the board chairperson and shall not constitute a quorum of the board. The board chairperson shall appoint committee chairpersons. Committees of the board may include: (1) Executive committee. The membership shall be composed of the elected officers of the board and two at-large members appointed by the chairperson. At least one public member shall be appointed to the executive committee. The executive committee duties may include, but are not limited to:

Guidance and supervision of the executive director.

Budgetary review and recommendations to the board.

Review and recommendations to the board on rules and legislative proposals.

Study and recommendations to the board on practice issues and policy.

(2) Screening committee. The committee reviews:

Complaints and makes recommendations to the board on appropriate action including further investigation or referral to the board for closure.

(3) Licensure committee. Its duties may include:

Recommending appropriate action on completed applications for licensure.

Conducting interviews with applicants when appropriate.

Reviewing licensure examination matters.

Reviewing and recommending to the board appropriate changes in licensure application forms.

Reviewing and making recommendations to the board regarding volunteer physician applicants who wish to participate in the state-indemnified volunteer physician program and who are under investigation or who have or have had disciplinary action against a license in the present or in the past.

Making recommendations on licensure policy issues.

(4) Monitoring committee. The committee oversees the monitoring of licensees under board orders and makes recommendations to the board on these matters. m. Establish the Iowa physician health committee as its licensee review committee. n. Hire and supervise the executive director.Advise the director of the department of public health in evaluating potential candidates for the position of executive director, consult with the director in the hiring of the executive director, and review and advise the director on the performance of the executive director in the discharge of the executive director’s duties. o. Adopt administrative rules and pursue legislation where necessary to conduct the board’s business. p. Establish a pool of up to ten alternate board members to serve on a hearing panel when a sufficient number of board members is unavailable to hear a contested case. 1.3(6) AppointsGuide and direct a full-time executive director who: a. Is not a member of the board. b. Under thesupervision of the director of the department of public health and the guidance or direction of the board performs administrative duties of the board including, but not limited to: staff supervision and delegation; administration and enforcement of the statutes and rules relating to the practice of medicine and surgery, osteopathic medicine and surgery, and the practice of acupuncture, and the practice of genetic counseling; issuance of subpoenas on behalf of the board or a committee of the board during the investigation of possible violations;and enunciation of policy on behalf of the board. 1.3(7) Establishes, in accordance with Iowa Code section 148.2A, a pool of alternate board members. a. At the beginning of each fiscal year, the executive director presents a list of persons who are qualified under Iowa Code section 148.2A to serve as alternate board members for the year beginning September 1. b. The executive director shall present the board-approved list of alternate board members to the governor for approval. c. Once the governor approves an alternate board member, the executive director or designee may assign the approved member to hear a contested case when an approved number of board members is unavailable. [Filed 4/6/21, effective 6/9/21][Published 5/5/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 5/5/21.ARC 5600CMedicine Board[653]Adopted and Filed

Rule making related to waivers

The Board of Medicine hereby amends Chapter 3, “Waivers and Variances,” Chapter 8, “Fees,” Chapter 9, “Permanent and Administrative Medicine Physician Licensure,” Chapter 10, “Resident, Special and Temporary Physician Licensure,” Chapter 11, “Continuing Education and Training Requirements,” Chapter 13, “Standards of Practice and Principles of Medical Ethics,” Chapter 17, “Licensure of Acupuncturists,” Chapter 19, “Prescribing Psychologists,” Chapter 20, “Licensure of Genetic Counselors,” Chapter 21, “Physician Supervision of a Physician Assistant,” and Chapter 23, “Grounds for Discipline,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 272C.3.State or Federal Law Implemented This rule making implements, in whole or in part, 2020 Iowa Acts, House File 2389.Purpose and Summary 2020 Iowa Acts, House File 2389, amended Iowa Code chapter 17A to remove the term “variance” and required that agencies’ rules about waiver procedures refer only to waivers. This rule making reflects the changes required by 2020 Iowa Acts, House File 2389, by removing the word “variance” from the Board’s rules.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on December 30, 2020, as ARC 5370C. 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 February 19, 2021.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 653—Chapter 3.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 June 9, 2021. The following rule-making actions are adopted:

ITEM 1. Amend 653—Chapter 3, title, as follows:WAIVERS AND VARIANCES

ITEM 2. Amend rule 653—3.1(17A,147,148) as follows:

653—3.1(17A,147,148) Definition. For purposes of this chapter, a “waiver or variance” means an action by the board 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. For simplicity, the term “waiver” shall include both a “waiver” and a “variance.”

ITEM 3. Amend rule 653—3.4(17A,147,148), introductory paragraph, as follows:

653—3.4(17A,147,148) Criteria for waiver or variance. In response to a petition completed pursuant to rule 3.6(17A,147,148)653—3.6(17A,147,148), the board may, in its sole discretion, issue an order waiving, in whole or in part, the requirements of a rule if the board finds, based on clear and convincing evidence, all of the following:

ITEM 4. Amend rule 653—3.17(17A,147,148) as follows:

653—3.17(17A,147,148) Sample petition for waiver. A petition for waiver filed in accordance with this chapter must meet the requirements specified herein and must substantially conform to the following form:BEFORE THE BOARD OF MEDICINE Petition by (name of petitioner)for the waiver/variance of (insert rule citation)relating to (insert the subject matter). } PETITION FORWAIVER/VARIANCE

Provide the name, address, and telephone number of the petitioner (person asking for a waiver or variance). Also, 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.
Describe and cite the specific rule from which a waiver is requested.
Describe the specific waiver requested, including the precise scope and time period for which the waiver will extend.
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; andd. 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.
Provide a history of any prior contacts between the board and petitioner relating to the regulated activity or license that would be affected by the waiver. Include a description of each affected license 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.
Provide information known to the petitioner regarding the board’s action in similar cases.
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 grant of the petition.
Provide the name, address, and telephone number of any person or entity that would be adversely affected by the grant of the waiver or variance.
Provide the name, address, and telephone number of any person with knowledge of the relevant facts relating to the proposed waiver.
Provide signed releases of information authorizing persons with knowledge regarding the request to furnish the board with information relevant to the waiver.

I hereby attest to the accuracy and truthfulness of the above information.Petitioner’s signatureDate

ITEM 5. Amend rule 653—8.11(17A,147,148,272C) as follows:

653—8.11(17A,147,148,272C) Waiver or variance prohibited. Licensure and examination fees in this chapter are not subject to waiver or variance pursuant to 653—Chapter 3 or any other provision of law.

ITEM 6. Amend rule 653—9.18(17A,147,148,272C) as follows:

653—9.18(17A,147,148,272C) Waiver or variance requests. Waiver or variance requests shall be submitted in conformance with 653—Chapter 3.

ITEM 7. Amend rule 653—10.6(17A,147,148,272C) as follows:

653—10.6(17A,147,148,272C) Waiver or variance requests. Waiver or variance requests shall be submitted in conformance with 653—Chapter 3.

ITEM 8. Amend rule 653—11.6(17A,147,148E,272C) as follows:

653—11.6(17A,147,148E,272C) Waiver or variance requests. Waiver or variance requests shall be submitted in conformance with 653—Chapter 3.

ITEM 9. Amend rule 653—13.21(17A,147,148,272C) as follows:

653—13.21(17A,147,148,272C) Waiver or variance prohibited. Rules in this chapter are not subject to waiver or variance pursuant to 653—Chapter 3 or any other provision of law.

ITEM 10. Amend subrule 17.4(2) as follows: 17.4(2) Waiver or variance prohibited. Provisions of this rule are not subject to waiver or variance pursuant to IAC 653—Chapter 3 or any other provision of law.

ITEM 11. Amend subrule 17.5(13) as follows: 17.5(13) Waiver or variance prohibited. Provisions of this rule are not subject to waiver or variance pursuant to IAC 653—Chapter 3 or any other provision of law.

ITEM 12. Amend rule 653—17.11(147,148E,272C), introductory paragraph, as follows:

653—17.11(147,148E,272C) General disciplinary provisions. The board is authorized to take disciplinary action against any licensee who violates the provisions set forth in state law and administrative rules pertaining to the safe and healthful practice of acupuncture. This rule is not subject to waiver or variance pursuant to IAC 653—Chapter 3 or any other provision of law.

ITEM 13. Amend rule 653—17.30(147,148E,272C) as follows:

653—17.30(147,148E,272C) Waiver or variance prohibited. Fees in this chapter are not subject to waiver or variance pursuant to 653—Chapter 3 or any other provision of law.

ITEM 14. Amend 653—Chapter 17, implementation sentence, as follows: These rules are intended to implement Iowa Codechapter 148E and sections 17A.10 to 17A.20, 147.55, 272C.3 to 272C.6, 272C.8 and 272C.9 and Iowa Code chapter 148E as amended by 2000 Iowa Acts, chapter 1053.

ITEM 15. Amend rule 653—19.8(148,154B) as follows:

653—19.8(148,154B) Joint waiver or variance—joint rule. Any rule identified as a joint rule may only be waived upon approval by both the board and the board of medicine.

ITEM 16. Amend subrule 20.8(12) as follows: 20.8(12) Waiver or variance prohibited. Provisions of this rule are not subject to waiver or variance pursuant to 653—Chapter 3 or any other provision of law.

ITEM 17. Amend rule 653—20.20(147,148H,272C), introductory paragraph, as follows:

653—20.20(147,148H,272C) Grounds for discipline of genetic counselors. The board has authority to impose discipline for any violation of Iowa Code chapter 147, 148H, or 272C or the rules promulgated thereunder. These grounds for discipline apply to genetic counselors. This rule is not subject to waiver or variance pursuant to 653—Chapter 3 or any other provision of law. The board may impose any of the disciplinary sanctions set forth in 653—subrule 25.25(1), when the board determines that the licensee is guilty of any of the following acts or offenses:

ITEM 18. Amend rule 653—20.25(147,148H,272C) as follows:

653—20.25(147,148H,272C) Waiver or variance prohibited. Fees in this chapter are not subject to waiver or variance pursuant to 653—Chapter 3 or any other provision of law.

ITEM 19. Amend rule 653—21.8(17A,147,148,272C) as follows:

653—21.8(17A,147,148,272C) Waiver or variance requests. Waiver or variance requests shall be submitted in conformance with 653—Chapter 3.

ITEM 20. Amend rule 653—23.1(272C), introductory paragraph, as follows:

653—23.1(272C) Grounds for discipline. The board has authority to impose discipline for any violation of Iowa Code chapter 147, 148, 148E, 252J, or 272C or 2008 Iowa Acts, Senate File 2428, division II,or 272D or the rules promulgated thereunder. The grounds for discipline apply to physicians and acupuncturists. This rule is not subject to waiver or variance pursuant to 653—Chapter 3 or any other provision of law. The board may impose any of the disciplinary sanctions set forth in 653—subrule 25.25(1), including civil penalties in an amount not to exceed $10,000, when the board determines that the licensee is guilty of any of the following acts or offenses: [Filed 4/6/21, effective 6/9/21][Published 5/5/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 5/5/21.ARC 5601CNatural Resource Commission[571]Adopted and Filed

Rule making related to firearms legal for deer hunting

The Natural Resource Commission (Commission) hereby amends Chapter 106, “Deer Hunting by Residents,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code sections 455A.5(7), 481A.38(1)“a” and 481A.48.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 481A.48.Purpose and Summary Chapter 106 contains the regulations for the resident deer hunting seasons and includes licensing requirements, season dates, shooting hours, bag limits, possession limits, tagging requirements, and methods of take. This rule making aligns Chapter 106 with Iowa Code section 481A.48 as amended by 2020 Iowa Acts, House File 716 (signed by Governor Reynolds on June 18, 2020), which makes certain firearms legal for deer hunting. Specifically, the following amendments: 1. Adopt in full the statute’s technical parameters for the handguns and rifles that are now legal for deer hunting during the regular gun seasons and the youth/severely disabled season; and 2. Adopt the statute’s requirement that youth who are hunting deer with a handgun must do so under the direct supervision of a licensed responsible adult.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on February 10, 2021, as ARC 5435C. A virtual public hearing was held on March 2, 2021, at 12 noon. No one attended the public hearing. Seven written comments were received during the public comment period. Five comments were in favor of the proposed changes to allow rifles (including .45-70 and .444 calibers) for deer hunting. The remaining two comments were against the use of large-caliber rifles and “necked-down” cartridges. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by the Commission on April 8, 2021.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. A copy of the fiscal impact statement is available from the Department of Natural Resources (Department) upon request. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found. A copy of the jobs impact statement is available from the Department upon request.Waivers This rule is subject to the waiver provisions of 571—Chapter 11. Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Commission for a waiver of the discretionary provisions, if any.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 June 9, 2021. The following rule-making actions are adopted:

ITEM 1. Rescind subrule 106.7(2) and adopt the following new subrule in lieu thereof: 106.7(2) Regular gun seasons. Only the following shall be used in the regular gun season: 10-, 12-, 16-, and 20-gauge shotguns shooting single slugs; any handgun or rifle as described in Iowa Code section 481A.48; and any muzzleloaders as described in subrule 106.7(3).

ITEM 2. Amend subrule 106.7(3) as follows: 106.7(3) Muzzleloader seasons. Only muzzleloading rifles and, muzzleloading muskets, muzzleloading pistols, and muzzleloading revolvers will be permitted for taking deer during the early muzzleloader season. During the late muzzleloader season, deer may be taken with a muzzleloading rifle,muzzleloading musket, muzzleloading pistol, centerfiremuzzleloading revolver, any handgunas defined in 106.7(2), crossbow as described in 106.7(1)“b,” or bow as described in106.7(1).All muzzleloaders as described in this subrule shall only shoot a single projectile between .44 and .775 of an inch. a. Muzzleloading rifles are defined as flintlock or percussion cap lock muzzleloaded rifles and muskets of not less than .44 caliber and not larger than .775 caliber, shooting single projectiles only. b. Muzzleloading pistols must be .44 caliber or larger, shoot single projectiles only, and have a 4-inch minimum barrel length.

ITEM 3. Amend subrule 106.7(5) as follows: 106.7(5) January antlerless-deer-only season. Bows, crossbows, shotguns, muzzleloaders,rifles, and handguns as described in this rule, and centerfire rifles .24 caliber or larger, may be used during the January antlerless-deer-only season.

ITEM 4. Amend subrule 106.7(6) as follows: 106.7(6) Prohibited weapons and devices. The use of dogs, domestic animals, bait, rifles other than muzzleloaded or straight wall cartridge as provided in 106.7(2), 106.7(3), 106.7(5), and 106.10(5), handguns except as provided in 106.7(2) and 106.7(5)firearms except as provided for in this chapter, crossbows except as provided in 106.7(1) and 106.7(3), automobiles, aircraft, or any mechanical conveyance or device, including electronic calls, is prohibited, except that paraplegics and single or double amputees of the legs may hunt from any stationary motor-driven land conveyance. “Bait” means grain, fruit, vegetables, nuts, hay, salt, mineral blocks, or any other natural food materials; commercial products containing natural food materials; or by-products of such materials transported to or placed in an area for the intent of attracting wildlife. Bait does not include food placed during normal agricultural activities. “Paraplegic” means an individual with paralysis of the lower half of the body with involvement of both legs, usually due to disease of or injury to the spinal cord. It shall be unlawful for a person, while hunting deer, to carry or have in possession a rifle except as provided in 106.7(2),or 106.7(3), 106.7(5), and 106.10(5). A person in possession of a valid permit to carry weapons may carry a handgun while hunting. However, only handguns as described in 106.7(2) may be used to hunt deer and only when a handgun is a lawful method of take.

ITEM 5. Amend subrule 106.10(5) as follows: 106.10(5) Method of take and other regulations. Deer may be taken with shotgunshotguns, bowbows, handguns, straight wall cartridge rifles, or muzzleloaded riflesmuzzleloaders as permitted in 571—106.7(481A). Youth hunters using a handgun must be accompanied and under direct supervision throughout the hunt by a responsible person with a valid hunting license who is at least 21 years of age, with the consent of a parent or guardian. The responsible person with a valid hunting license who is at least 21 years of age shall be responsible for the conveyance of the pistol or revolver while the pistol or revolver is not actively being used for hunting. “Direct supervision” means the same as defined in Iowa Code section 483A.27A(4). All participants must meet the deer hunters’ orange apparel requirement in Iowa Code section 481A.122. All other regulations for obtaining licenses or hunting deer shall apply. [Filed 4/8/21, effective 6/9/21][Published 5/5/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 5/5/21.ARC 5603CPublic Safety Department[661]Adopted and Filed

Rule making related to fire service training bureau

The State Fire Marshal Division hereby amends Chapter 53, “Fire Service Training Bureau,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 80.5.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 80.5.Purpose and Summary These amendments correct an outdated Iowa Code reference and update the submission process for course and conference registration fees.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on March 10, 2021, as ARC 5501C. A public hearing was held on April 9, 2021. 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 April 14, 2021.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to the provisions of rule 661—10.222(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 June 9, 2021. The following rule-making actions are adopted:

ITEM 1. Amend rule 661—53.2(80) as follows:

661—53.2(80) Programs, services, and fees. 53.2(1) Courses and tuitionregistration fees. Current course offeringsand associated registration and other related course fees of the fire service training bureau are available in the document Catalog of Courses, Conferences and Services, available fromelectronic format via the fire service training bureauweb page, and hard copy upon request. Current course tuitionregistration fees and any other fees related to participation in courses shall be listed in the document Catalog of Courses, Conferences and Serviceselectronic format via the fire service training bureau web page, and hard copy upon request, and shall be effective until superseded by publication of a later edition of theweb page and document. Prospective students should inquire of the fire service training bureau as to the date of most recent publication of the Catalog of Courses, Conferences and Servicesany courses, services, and fees prior to submitting the tuition feeregistration and other fees for a course. 53.2(2) Conferences and fees. Upcoming conferences offered by the fire service training bureau are listed in the document Catalog of Courses, Conferences and Services, available fromelectronic format via the fire service training bureauweb page, and hard copy upon request. Conference registration fees and any other fees related to attendance at conferences shall be listed in the document Catalog of Courses, Conferences and Serviceselectronic format via the fire service training bureau web page, and hard copy upon request, and shall be effective until superseded by publication of a later edition of theweb page and document. Prospective students should inquire of the fire service training bureau as to the date of most recent publication of the Catalog of Courses, Conferences and Servicesany conferences and associated fees prior to submitting registration fees or any other fees related to attendance at a conference. 53.2(3) Publications and materials; fees. All publications and materials currently offered for sale by the fire service training bureau are listed in the document Catalog of Publications and Materials, available fromelectronic format via the fire service training bureauweb page, and hard copy upon request. Current prices of publications shall be listed in the document Catalog of Publications and Materialselectronic format via the fire service training bureau web page, and hard copy upon request, and shall be effective until superseded by publication of a later edition of theweb page and document. Persons wishing to purchase publications or materials should inquire of the fire service training bureau as to the date of most recent publication of the Catalog of Publications and Materialsand associated fees prior to submitting payment for publications or materials. 53.2(4) Other services and tuition fees. Services other than courses, conferences, and firefighter certification offered by the fire service training bureau are listed in the document Catalog of Courses, Conferences and Services, available fromelectronic format via the fire service training bureauweb page, and hard copy upon request. Current fees for these services shall be listed in the document Catalog of Courses, Conferences and Serviceselectronic format via the fire service training bureau web page, and hard copy upon request, and shall be effective until superseded by publication of a later edition of theweb page and document. Prospective clients for these services should inquire of the fire service training bureau as to the date of most recent publication of the Catalog of Courses, Conferences and Servicesservices and fees prior to submitting a request for or payment for any service.

ITEM 2. Amend 661—Chapter 53, implementation sentence, as follows: These rules are intended to implement Iowa Code section 80.980.5. [Filed 4/14/21, effective 6/9/21][Published 5/5/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 5/5/21.ARC 5604CPublic Safety Department[661]Adopted and Filed

Rule making related to firefighter training and certification

The State Fire Marshal Division hereby amends Chapter 251, “Fire Fighter Training and Certification,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 100B.10.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code chapter 100B.Purpose and Summary The purpose of these amendments to Chapter 251 is to make changes to spelling and style issues and enumerate the conditions in which a firefighter’s certification may be revoked in the event of a felony-level conviction.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on March 10, 2021, as ARC 5502C. A public hearing was held on April 9, 2021. 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 April 14, 2021.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact Firefighters whose employment requires active certification may have their jobs impacted if their certifications are revoked due to certain felony-level convictions.Waivers Pursuant to the provisions of rule 661—10.222(17A), the Department does not have authority to waive requirements established by statute. Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to the provisions of rule 661—10.222(17A).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 June 9, 2021. The following rule-making actions are adopted:

ITEM 1. Amend 661—Chapter 251, title, as follows:FIRE FIGHTERFIREFIGHTER TRAINING AND CERTIFICATION

ITEM 2. Amend rule 661—251.1(100B) as follows:

661—251.1(100B) Definitions. The following definitions apply to rules 661—251.1(100B) to 661—251.204(100B): "Emergency incident" means any incident involving a fire or other hazardous situation to which personnel of a fire department respond. "NFPA" means the National Fire Protection Association. "Structural fire fightingfirefighting" means fire fightingfirefighting in a hazardous environment which requires the use of self-contained breathing apparatus.

ITEM 3. Amend rule 661—251.101(100B) as follows:

661—251.101(100B) Minimum training standard. Any member of a fire department shall have completed the training requirements identified in the job performance requirements for the fire fighter I classification in NFPA 1001, Standard for Fire Fighter Professional Qualifications, based on the current edition adopted by the fire service training bureau, prior to the member’s engaging in structural fire fightingfirefighting. Each fire department shall identify its members who are or will be engaged in structural fire fightingfirefighting and shall ensure that any member engaged in structural fire fightingfirefighting has completed the training requirements specified in this rule prior to the member’s engaging in structural fire fightingfirefighting.Note: A fire fighterfirefighter is not required to be certified to meet this requirement. Training to meet this requirement may be provided by the fire service training bureau, a community college, a regional fire training facility, a local fire department, or any combination thereof.Exception 1: A fire fighterfirefighter who received training which complied with the job performance requirements for the fire fighter I classification contained in an earlier edition of NFPA 1001 shall be deemed to have met this requirement, provided that records documenting the training are maintained in accordance with rule 661—251.104(100B).Exception 2: The chief or the training officer of any fire department may apply to the state fire marshal by June 1 of any year for an extension of the deadline to meet the training requirement for members of the department engaged in structural fire fightingfirefighting. Any such extension shall be for one year and may be renewed annually upon application. An extension shall be granted only if the department has requested training required under this rule, with training costs to be offset through funding from the fire fightingfirefighting training and equipment fund, pursuant to 661—Chapter 259, and funds to offset the cost of the training have not been available or have been inadequate to fully offset the cost of the training. The extension may be for all or some of the fire fightersfirefighters in the department. The application shall be in a form specified by the state fire marshal and shall list by name each fire fighterfirefighter for whom an extension is requested. The extension, if granted, shall list by name the fire fightersfirefighters to whom the extension applies and shall apply only to those listed.

ITEM 4. Amend rule 661—251.102(100B) as follows:

661—251.102(100B) Other training. Any member of a fire department who serves in a capacity other than structural fire fightingfirefighting at an emergency incident shall have received training based on the duties the member might perform at an emergency incident. Training to meet this requirement may be provided by the fire service training bureau, a community college, a regional fire training facility, or a local fire department, or any combination thereof.

ITEM 5. Amend rule 661—251.103(100B) as follows:

661—251.103(100B) Continuing training. Fire department members shall participate in at least 24 hours of continuing training annually, which shall be selected frommay include, but is not limited to, the following subjectmatter areas:

Personal protective equipment and respiratory protection.
Structural fire fightingfirefighting techniques, including standard operating policiesand procedures or standard operating guidelines.
Ground ladders.
Hose and hose appliances.
Ventilation.
Forcible entry.
Search and rescue techniques.
Fire fighterFirefighter safety.
NationalIncident management systemManagement System or incident command systemIncident Command System.
Emergency vehicle driver-operator.
Hazardous materials first responder—operations level.
Emergency medical service (EMS) training.
Additional training based on standard operatingpolicies and procedures or standard operating guidelines.
Other Occupational Safety and Health Administration (OSHA)-related training, such as blood-borne pathogen protection.
Specialty training such as confined space entry, vehicle extrication, rescue techniques, wildland or agricultural fire fightingfirefighting techniques.
Emergency response to terrorism.
Any other training designed to meet local training needs.

Note: Training to meet this requirement may be provided by the fire service training bureau, a community college, a regional fire training facility, or a local fire department, or any combination thereof.

ITEM 6. Amend rule 661—251.104(100B) as follows:

661—251.104(100B) Record keeping. Each fire department shall maintain training records for each individual member of the department who participates in emergency incidents. These training records shall identify, for all training completed by the individual fire fighterfirefighter, the person or persons who provided the training, the dates during which the training was completed, the location or locations where the training was delivered, and a description of the content of the training.

ITEM 7. Amend 661—Chapter 251, division heading, as follows:FIRE FIGHTERFIREFIGHTER CERTIFICATION

ITEM 8. Amend rule 661—251.201(100B) as follows:

661—251.201(100B) Fire fighterFirefighter certification and accreditation program. There is established within the fire service training bureau of the state fire marshal division a fire fighterfirefighter certification program for the state of Iowa, which shall be known as the certification and accreditation program. The certification and accreditation program is accredited by the National Board on Fire Service Professional Qualifications (PROBOARD) and the International Fire Service Accreditation Congress (IFSAC) to certify fire service personnel to accepted national standards. All certifications issued by the certification and accreditation program shall be based upon nationally accepted standards.Note 1: Participation in the certification and accreditation program is voluntary, and state law does not require certification to work or volunteer as a fire fighterfirefighter in Iowa. However, some fire departments within the state require certification for continued employment or promotion. Inquiries regarding such requirements should be directed to the hiring or employing department.Note 2: Inquiries and requests regarding the certification and accreditation program should be directed to the fire service training bureau. 251.201(1) Eligibility. Any person seeking certification through the certification and accreditation program shall be a current member of a fire, emergency, or rescue organization within the state of Iowa and shall be at least 18 years of age.Exception: Persons not meeting the requirement of membership in a fire, emergency, or rescue organization may be granted exceptions to this requirement on an individual basis. Individuals seeking such exceptions shall address these requests to the fire service training bureau. 251.201(2) Application. Application forms for each level of fire fighterfirefighter certification may be obtained from the fire service training bureau. In order to enter the certification and accreditation program, an applicant shall submit a completed application, accompanied by the required fee, to the fire service training bureau. The fee must accompany the application form, although a purchase order from a public agency or private organization may be accepted in lieu of prior payment. The application and fee shall be submitted no less than two weeks prior to the date of any examination in which the applicant wishes to participate.

ITEM 9. Amend subrule 251.202(1) as follows: 251.202(1) Fire fighterFirefighter. a. Fire fighter I.Certification as a fire fighter I is based upon the requirements for fire fighter I certification established in NFPA 1001, “Standard for Fire Fighter Professional Qualifications,” current edition adopted by the fire service training bureau. b. Fire fighter II.Certification as a fire fighter II is based upon the requirements for fire fighter II certification established in NFPA 1001, “Standard for Fire Fighter Professional Qualifications,” current edition adopted by the fire service training bureau.

ITEM 10. Amend rule 661—251.203(100B) as follows:

661—251.203(100B) Fees. Current certification application fees and any other fees related to participation in the certification process shall be listed inon the fire service training bureau’s web page and also within the publication Certification Procedures Guide for each level of certification, published by the fire service training bureau and available on request from the fire service training bureau. The information in each guide shall be effective upon publication until superseded by publication of a later edition. Prospective candidates who are considering application for a particular level of certification should contact the fire service training bureau for the latest date of publication of the Certification Procedures Guide.Fees may be paid by personal check made payable to Iowa Department of Public Safety—Fire Service Training Bureau, credit card, purchase order from a public agency or private organization, check or draft from a public agency or private organization, or money order. The check, credit card information, purchase order, money order or draft shall be submitted with the application.

ITEM 11. Amend subrule 251.204(3) as follows: 251.204(3) Revocation. The fire service training bureau may revoke the certification of any individual who is found to have knowingly provided false information to the fire service training bureau during the certification process or to have engaged in fraudulent activity during the certification process.In addition, certification may be revoked by the fire service training bureau if an individual was found to have engaged in and been convicted of a felony-level crime, including but not limited to murder, arson, sexual assault, physical assault, embezzlement, and crimes committed against a fire department or its respective association. [Filed 4/14/21, effective 6/9/21][Published 5/5/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 5/5/21.ARC 5606CRevenue Department[701]Adopted and Filed

Rule making related to broadband infrastructure grant exemption

The Revenue Department hereby amends Chapter 40, “Determination of Net Income,” Chapter 53, “Determination of Net Income,” and Chapter 59, “Determination of Net Income,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 422.68.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 422.7, 422.35 and 422.61.Purpose and Summary This rule making implements new income tax exemptions created by 2020 Iowa Acts, House File 2641, for certain broadband grants provided to qualified service providers by providing definitions necessary to implement those exemptions.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 27, 2021, as ARC 5399C. An Amended Notice of Intended Action was published in the Iowa Administrative Bulletin on March 10, 2021, as ARC 5503C. A public hearing was held virtually via videoconference call on March 30, 2021, at 10 a.m. One commenter spoke at the hearing. The commenter primarily objected to state incentives being provided to wireless companies. The commenter’s objections were based mainly on possible health effects of radiation from wireless infrastructure. The commenter provided several online sources to support the commenter’s position that installing 5G wireless infrastructure poses a public health risk, and the commenter ultimately requested that the Department consider whether it has the authority to exclude wireless infrastructure from the exemption through a definition that could be included in these rules. The Department received several requests for a public hearing on the original Notice for these rules (ARC 5399C). Several of those requests appeared to object to the rules, but did not specify the commenters’ objections. No substantive changes from the Notice have been made. Upon review of the Iowa Code, the Department determined that wireless infrastructure is included in the statutory definition of “broadband infrastructure” for purposes of this exemption. Therefore, the Department has no authority to exclude wireless infrastructure from the exemption by rule as requested by the commenter at the hearing. The implementation sentences at the end of each rule were amended slightly to remove unnecessary information.Adoption of Rule Making This rule making was adopted by the Department on April 14, 2021.Fiscal Impact These rules have no fiscal impact beyond that of the legislation they are 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 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 June 9, 2021. The following rule-making actions are adopted:

ITEM 1. Adopt the following new rule 701—40.84(422):

701—40.84(422) Broadband infrastructure grant exemption. 40.84(1) Broadband infrastructure grant exemption, generally. For tax years beginning on or after January 1, 2019, certain qualifying communications service providers may subtract, to the extent included in income, the amount of qualifying government grants used to install broadband infrastructure that facilitates broadband service in targeted service areas at or above download and upload speeds identified by the Federal Communications Commission pursuant to Section 706 of the federal Telecommunications Act of 1996, as amended. This rule explains terms not defined in Iowa Code section 422.7. 40.84(2) Definitions. "Facilitate" shall have the same meaning as defined in Iowa Code section 8B.1. "Grant" means a transfer for a governmental purpose of money or property to a transferee that is not a related party to or an agent of the transferor. The transfer must not impose any obligation or condition to directly or indirectly repay any amount to the transferor or a related party. Obligations or conditions intended solely to assure expenditure of the transferred moneys in accordance with the governmental purpose of the transfer do not prevent a transfer from being a grant.

“Federal grant” means any grant issued by the United States government, including any agency or instrumentality thereof.
“State grant” means any grant issued by any state of the United States, the District of Columbia, or a territory or possession of the United States, including any agency or instrumentality thereof.
“Local grant” means any grant issued by any city, county, township, school district, or any other unit of local government, including any agency or instrumentality thereof.

40.84(3) Limitation on certain refund claims. For tax years beginning on or after January 1, 2019, and before January 1, 2020, refund claims resulting from this exemption must be filed prior to October 1, 2020. No refunds shall be issued for claims filed on or after that date. This rule is intended to implement Iowa Code section 422.7.

ITEM 2. Adopt the following new rule 701—53.28(422):

701—53.28(422) Broadband infrastructure grant exemption. 53.28(1) Broadband infrastructure grant exemption, generally. For tax years beginning on or after January 1, 2019, certain qualifying communications service providers may subtract, to the extent included in income, the amount of qualifying government grants used to install broadband infrastructure that facilitates broadband service in targeted service areas at or above download and upload speeds identified by the Federal Communications Commission pursuant to Section 706 of the federal Telecommunications Act of 1996, as amended. This rule explains terms not defined in Iowa Code section 422.35. 53.28(2) Definitions. "Facilitate" shall have the same meaning as defined in Iowa Code section 8B.1. "Grant" means a transfer for a governmental purpose of money or property to a transferee that is not a related party to or an agent of the transferor. The transfer must not impose any obligation or condition to directly or indirectly repay any amount to the transferor or a related party. Obligations or conditions intended solely to assure expenditure of the transferred moneys in accordance with the governmental purpose of the transfer do not prevent a transfer from being a grant.

“Federal grant” means any grant issued by the United States government, including any agency or instrumentality thereof.
“State grant” means any grant issued by any state of the United States, the District of Columbia, or a territory or possession of the United States, including any agency or instrumentality thereof.
“Local grant” means any grant issued by any city, county, township, school district, or any other unit of local government, including any agency or instrumentality thereof.

53.28(3) Limitation on certain refund claims. For tax years beginning on or after January 1, 2019, and before January 1, 2020, refund claims resulting from this exemption must be filed prior to October 1, 2020. No refunds shall be issued for claims filed on or after that date. This rule is intended to implement Iowa Code section 422.35.

ITEM 3. Adopt the following new rule 701—59.30(422):

701—59.30(422) Broadband infrastructure grant exemption. 59.30(1) Broadband infrastructure grant exemption, generally. For tax years beginning on or after January 1, 2019, certain qualifying communications service providers may subtract, to the extent included in income, the amount of qualifying government grants used to install broadband infrastructure that facilitates broadband service in targeted service areas at or above download and upload speeds identified by the Federal Communications Commission pursuant to Section 706 of the federal Telecommunications Act of 1996, as amended. This rule explains terms not defined in Iowa Code section 422.35. 59.30(2) Definitions. "Facilitate" shall have the same meaning as defined in Iowa Code section 8B.1. "Grant" means a transfer for a governmental purpose of money or property to a transferee that is not a related party to or an agent of the transferor. The transfer must not impose any obligation or condition to directly or indirectly repay any amount to the transferor or a related party. Obligations or conditions intended solely to assure expenditure of the transferred moneys in accordance with the governmental purpose of the transfer do not prevent a transfer from being a grant.

“Federal grant” means any grant issued by the United States government, including any agency or instrumentality thereof.
“State grant” means any grant issued by any state of the United States, the District of Columbia, or a territory or possession of the United States, including any agency or instrumentality thereof.
“Local grant” means any grant issued by any city, county, township, school district, or any other unit of local government, including any agency or instrumentality thereof.

59.30(3) Limitation on certain refund claims. For tax years beginning on or after January 1, 2019, and before January 1, 2020, refund claims resulting from this exemption must be filed prior to October 1, 2020. No refunds shall be issued for claims filed on or after that date. This rule is intended to implement Iowa Code section 422.35. [Filed 4/14/21, effective 6/9/21][Published 5/5/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 5/5/21.ARC 5605CRevenue Department[701]Adopted and Filed

Rule making related to bundled transactions

The Revenue Department hereby adopts a new Chapter 216, “Bundled Transactions,” and amends Chapter 231, “Exemptions Primarily of Benefit to Consumers,” 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 423.2 and 423.3; 2018 Iowa Acts, Senate File 2417; and 2020 Iowa Acts, House File 2641.Purpose and Summary This rule making adopts new Chapter 216 on bundled transactions to implement the adoption of language by the General Assembly in 2018 Iowa Acts, Senate File 2417, to fully incorporate the definition of “bundled transaction” to be used by members of the Streamlined Sales and Use Tax Agreement, including Iowa. This rule making also incorporates the addition of “specified digital products” into the bundled transaction provision in the Iowa Code, pursuant to changes to the Iowa Code made by 2020 Iowa Acts, House File 2641. Additionally, this rule making amends the Department’s existing rule on sales of candy to remove outdated language pertaining to bundled transactions. Currently, outdated bundled transaction language is incorporated throughout the Department’s sales and use tax rules. This rule making creates a single, centralized chapter for rules that implement the current law pertaining to bundled transactions. While the Department removes some of this language from Chapter 231 in this rule making, the Department will pursue additional rule making in the near future to clean up the outdated bundled transaction language throughout its administrative rules.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on March 10, 2021, as ARC 5504C. 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 April 14, 2021.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. The Legislative Services Agency estimates for 2018 Iowa Acts, Senate File 2417, and 2020 Iowa Acts, House File 2641, did not address the impact to the General Fund from sales tax collections due to these bundled transaction 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 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 June 9, 2021. The following rule-making actions are adopted:

ITEM 1. Adopt the following new 701—Chapter 216: CHAPTER 216BUNDLED TRANSACTIONS

701—216.1(423) Taxability of bundled transactions. The sales price of a bundled transaction is subject to tax if any product included in the bundled transaction would be taxable if sold separately. For purposes of this rule, products include tangible personal property, services, and specified digital products and exclude real property and services to real property.

701—216.2(423) Bundled transaction. A “bundled transaction” is the retail sale of two or more products where the products are otherwise distinct and identifiable and the products are sold for one nonitemized price. 216.2(1) Distinct and identifiable product. “Distinct and identifiable product” does not include any of the following: a. Packaging or other materials that accompany the retail sale of the products and are incidental or immaterial to the retail sales of the products. Packaging or other materials include, but are not limited to, containers, boxes, sacks, bags, bottles, envelopes, wrapping, labels, tags, twine, garment hangers, and instruction guides. b. A product that is provided free of charge to the consumer in conjunction with the required purchase of another product, if the sales price of the other product does not vary depending on whether the product provided free of charge is included in the transaction. Examples include a free car wash with the purchase of gasoline or free dinnerware with the purchase of groceries. c. Items specified in the definition of “sales price” in Iowa Code section 423.1. 216.2(2) One nonitemized price. “One nonitemized price” does not include the following: a. A price that is separately identified by product on a binding sales document, or other sales-related documentation, that is made available to the customer in paper or electronic form, including but not limited to an invoice, a bill of sale, a receipt, a contract, a service agreement, a lease agreement, a periodic notice of rates and services, a rate card or a price list. b. A price for which the sales price varies or is negotiable based on the purchaser’s selection of the products included in the transaction even if the seller only provides one price on its invoice to the purchaser.

701—216.3(423) Transactions not taxable as bundled transactions. Generally, the entire sales price from a bundled transaction is subject to sales tax. However, the transactions described in this rule are not taxable as bundled transactions: 216.3(1) Sales involving mixed tangible personal property and services. The retail sale of tangible personal property or specified digital product and a service, if the tangible personal property or specified digital product is essential to the use of the service, and provided exclusively in connection with the service, and if the true object of the transaction is the service. 216.3(2) Sales involving services. The retail sale of services, if one of the services is essential to the use or receipt of a second service, and provided exclusively in connection with the second service, and if the true object of the transaction is the second service. If the transaction is not a bundled transaction as a result of this exclusion, then the true object of the transaction will be the retail sale of the second service and should be taxed accordingly. 216.3(3) True object test. The true object of a transaction is the main product that is the subject of the transaction. Determining the true object of a transaction is a fact-based inquiry and shall be made on a case-by-case basis. Factors that may be considered in determining the true object of a transaction include, but are not limited to, the nature of the seller’s business and purchaser’s reason for making the purchase. 216.3(4) Sales involving “de minimis” taxable products. A transaction that includes taxable and nontaxable products and the seller’s purchase price or sales price of the taxable products is de minimis. “De minimis” means the seller’s purchase price or sales price of the taxable products is 10 percent or less of the total purchase price or sales price of the bundled products. A seller shall use either the seller’s purchase price or seller’s sales price of the products to determine if the taxable products are de minimis. A seller may not use a combination of the seller’s purchase price and seller’s sales price of the products to determine if the taxable products are de minimis. 216.3(5) Sales involving taxable and exempt food or medical products. The retail sale of exempt tangible personal property and taxable tangible personal property where all of the following apply: a. The transaction includes food and food ingredients, drugs, durable medical equipment, mobility enhancing equipment, prosthetic devices, or medical supplies; and b. The seller’s purchase price or sales price of the taxable tangible personal property is 50 percent or less of the total purchase price or sales price of the bundled tangible personal property. Sellers may not use a combination of the purchase price and sales price of the tangible personal property when making the 50 percent determination for a transaction. These rules are intended to implement Iowa Code section 423.2(8).

ITEM 2. Amend rule 701—231.4(423) as follows:

701—231.4(423) Sales of candy. 231.4(1) Definitions. Sales of candy were excluded from exemption prior to July 1, 2004; however, the definition of “candy” applicable to the exclusion was slightly different from the definition set out in this rule. Reference rule 701—20.1(422,423). This rule and the following definitions apply to sales of candy on or after July 1, 2004. a. Candy.For the purposes of this rule, “candy” is a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts or other ingredients or flavorings in the form of bars, drops, or pieces. “Candy” shall not include any preparation containing flour and shall require no refrigeration. Any preparation to which flour has been added only for the purpose of excluding the candy’s sales from tax and not for any legitimate purpose, culinary or otherwise, shall not be sold exempt from tax under this rule. This definition is intended to be used when a person is trying to determine if a product that is commonly thought of as “candy” is in fact “candy.” For example, the definition would be applied in a situation where a person is trying to determine if a product is “candy” as opposed to a cookie. The definition is not intended to be applied to every type of food product sold. Many products, such as meat products, breakfast cereals, potato chips, and canned fruits and vegetables are not commonly thought of as “candy.” The definition of “candy” is not applicable to products such as these since they are not commonly thought of as candy. b. Preparation.Candy must be a “preparation” that contains certain ingredients, other than flour. A “preparation” is a product that is made by means of heating, coloring, molding, or otherwise processing any of the ingredients listed in the definition of “candy.” For example, reducing maple syrup into pieces and adding coloring to make maple candy is a form of preparation. c. Bars, drops or pieces.Candy must be sold in the form of bars, drops, or pieces. (1) A “bar” is a product that is sold in the form of a square, oblong, or similar form. For example, if Company A sells one-pound square blocks of chocolate, the blocks of chocolate are “bars.” (2) A “drop” is a product that is sold in a round, oval, pear-shaped, or similar form. For example, if Company B sells chocolate chips in a bag, each individual chocolate chip contains all of the ingredients indicated on the label and the chocolate chips are “drops.” (3) A “piece” is a portion that has the same makeup as the product as a whole. Individual ingredients and loose mixtures of items that make up the product as a whole are not pieces. Exception: If a loose mixture of different items that make up the product as a whole are all individually considered candy and are sold as one product, that product is also candy. d. Flour.In order for a product to be treated as containing “flour,” the product label must specifically list the word “flour” as one of the ingredients. There is no requirement that the “flour” be grain-based, and it does not matter what the flour is made from. Many products that are commonly thought of as “candy” contain flour, as indicated on the ingredient label and therefore are specifically excluded from the definition of “candy.” Ingredient labels must be examined to determine which products contain flour and which products do not contain flour. Any preparation to which flour has been added only for the purpose of excluding its sales from tax and not for any legitimate purpose, culinary or otherwise, shall not be sold exempt from tax under this rule. For example, a candy bar that contains flour, for a legitimate purpose, is excluded from the definition of “candy.” e. Other ingredients or flavorings.“Other ingredients or flavorings” as used in this rule means other ingredients or flavorings that are similar to chocolate, fruits or nuts. This phrase includes candy coatings such as carob, vanilla and yogurt; flavorings or extracts such as vanilla, maple, mint, and almond; and seeds and other items similar to the classes of ingredients or flavorings. This phrase does not include meats, spices, seasonings such as barbeque or cheddar flavor, or herbs which are not similar to the classes of ingredients or flavorings associated with chocolate, fruits, or nuts, unless the product otherwise meets the definition of “candy.” f. Sweeteners.The term “natural or artificial sweeteners” as used in this rule means an ingredient of a food product that adds a sugary sweetness to the taste of the food product and includes, but is not limited to, corn syrup, dextrose, invert sugar, sucrose, fructose, sucralose, saccharin, aspartame, stevia, fruit juice concentrates, molasses, evaporated cane juice, rice syrup, barley malt, honey, maltitol, agave, and artificial sweeteners. g. Refrigeration.A product that otherwise meets the definition of “candy” is not “candy” if it requires refrigeration. A product “requires refrigeration” if it must be refrigerated at the time of sale or after being opened. In order for a product to be treated as requiring refrigeration, the product label must indicate that refrigeration is required. If the label on a product that contains multiple servings indicates that it “requires refrigeration,” smaller size packages of the same product are also considered to “require refrigeration.” A product that otherwise meets the definition of “candy” is “candy” if the product is not required to be refrigerated, but is sold refrigerated for the convenience or preference of the customer, retailer, or manufacturer. 231.4(2) Nonexclusive examples. a. Taxable candy.Examples of items taxable as candy include, but are not limited to: preparations of fruits, nuts, or other ingredients in combination with sugar, honey, or other natural or artificial sweeteners in the form of bars, drops, or pieces; caramel-coated or other candy-coated apples or other fruit; candy-coated popcorn; hard or soft candies including jellybeans, taffy, licorice not containing flour, marshmallows, and mints; dried fruit leathers or other similar products prepared with natural or artificial sweeteners; candy breath mints; chewing gum; and mixes of candy pieces.Sales of items which are normally sold for use as ingredients in recipes but which can be eaten as candy are taxable on and after July 1, 2004. Examples of these items include, but are not limited to: sweetened baking chocolate in bars or pieces; white and dark chocolate almond bark; toffee bits; M&M’s, including those sold for baking; candy primarily intended for decorating baked goods; and sweetened baking chips, including mint chips, peanut butter chips, butterscotch chips, and chocolate chips. b. Nontaxable items.Sales of the following are generally not taxable as candy: jams, jellies, preserves, or syrups; frostings; dried fruits without added sweetener; breakfast cereals; prepared fruit in a sugar or similar base; ice cream or other frozen desserts covered with chocolate or similar coverings; cotton candy; cakes, cookies, and similar products covered with chocolate or other similar coating; and granola bars. However, these and similar items are taxable if sold as prepared food under rule 701—231.5(423). 231.4(3) Bundled transaction including candy. “Bundled transaction” is defined as the retail sale of two or more products, except real property and services to real property, where (1) the products are otherwise distinct and identifiable and (2) the products are sold for one non-itemized price. a. Candy and food.Products that are a combination of items that are defined as “candy” under this rule and items that are defined as “food and food ingredients” under rule 701—231.3(423) are “bundled transactions” when the items are distinct and identifiable and are sold for one non-itemizednonitemized price, unless the seller’s sales price or purchase price of the candy accounts for 50 percent or less of the seller’s sales price or purchase price of the bundled transaction as provided under Iowa Code section 423.2(8)“d”(4). For example, a bag of multiple types of individually wrapped bars that is sold for one price is two or more distinct and identifiable products sold for one non-itemizednonitemized price. For purposes of determining whether such a bag of individually wrapped bars is a “bundled transaction,” the following criteria apply: (1) Ingredients listed separately.

If a package contains individually wrapped bars, drops, or pieces and the product label on the package separately lists the ingredients for each type of bar, drop, or piece included in the package, those bars, drops, or pieces that have “flour” listed as an ingredient are “food and food ingredients” and those bars, drops, or pieces which do not have “flour” listed as an ingredient are “candy.” The determination of whether the package as a whole meets the definition of “bundled transaction” is based on the percentage of bars, drops, or pieces that meet the definition of “food and food ingredient” as compared to the percentage of bars, drops, or pieces that meet the definition of “candy.”
Determining the percentage. For purposes of determining the percentage of the sales price or purchase price of the bars, drops, or pieces that meet the definition of “candy” as compared to all of the bars, drops, or pieces contained in the package, the retailer may presume that each bar, drop, or piece contained in the package has the same value.
Presumption of product amount. A retailer may presume that there is an equal number of each type of product contained in the package, unless the package clearly indicates otherwise.

(2) Ingredients listed together. If a package contains individually wrapped bars, drops, or pieces and all of the ingredients for each of the products included in the package are listed together, as opposed to being listed separately by each product included as explained in subparagraph (1) above, and even if the ingredient lists “flour” as an ingredient, the product will be treated as “candy,” unless the retailer is able to ascertain that 50 percent or less of the products are “candy.” Even if the retailer ascertains that 50 percent or less of the items in the bag are “candy,” sales tax is due on the sales price of the entire packagethe sales price or purchase price of the candy in the package is less than 50 percent of the sales price or purchase price of the entire bag. See Iowa Code section 423.2(8).The retailer may presume that each bar, drop, or piece contained in the package has the same value. The retailer may presume that there is an equal number of each type of product contained in the package, unless the package clearly indicates otherwise. b. Combination of ingredients.Products whose ingredients are a combination of various unwrapped food ingredients that alone are not “candy,” along with unwrapped food ingredients that alone are “candy,” such as breakfast cereal and trail mix with candy pieces, are considered “food and food ingredients,” butand are not “candy.” Sales of these products are not “bundled transactions” because there are not two or more distinct and identifiable products being sold. The combination of the ingredients results in a single product. This rule is intended to implement 2011 Iowa Code subsectionsections 423.2(8) and423.3(57). [Filed 4/14/21, effective 6/9/21][Published 5/5/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 5/5/21.ARC 5607CTransportation Department[761]Adopted and Filed

Rule making related to holiday rest stops and promoting Iowa agricultural products at interstate rest areas

The Department of Transportation hereby amends Chapter 105, “Holiday Rest Stops,” and Chapter 106, “Promotion of Iowa Agricultural Products at Rest Areas,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code sections 307.12 and 314.27 and 1995 Iowa Acts, Chapter 18, section 2.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code section 314.27 and 1995 Iowa Acts, Chapter 18, section 2.Purpose and Summary These amendments to Chapters 105 and 106 correct the name of the Maintenance Bureau and remove district offices from the list of locations from which a form may be requested to sponsor a holiday rest stop or promote an Iowa agricultural product at an interstate rest area. These forms are still available on the Department’s website and from the Maintenance Bureau. This rule making also requires that any requests be submitted to the Maintenance Bureau. The Maintenance Bureau will approve or deny the requests. The district offices are no longer involved in the administration of these programs.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on February 10, 2021, as ARC 5410C. 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 April 13, 2021.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 761—Chapter 11.Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date This rule making will become effective on June 9, 2021. The following rule-making actions are adopted:

ITEM 1. Amend subrule 105.2(4) as follows: 105.2(4) Information. General information regarding holiday rest stops is available from the Office of MaintenanceBureau, Iowa Department of Transportation, 800 Lincoln Way, Ames, Iowa 50010, or the department’s website at www.iowadot.gov.

ITEM 2. Amend subrule 105.4(3) as follows: 105.4(3) Request. A request to sponsor a holiday rest stop in an interstate rest area shall be made on Form 810023. This form is available from the department’s district offices, the office of maintenancebureau or the department’s website. a. The request shall include the name and address of the requesting sponsor, a detailed description of the proposed holiday rest stop location, and the requested hours of operation. b. The request shall be submitted to the office of maintenancebureau. c. The request must be submitted at least 30 days prior to the beginning date of the holiday period and shall be accepted up to 12 months in advance.

ITEM 3. Amend subrule 105.4(4), introductory paragraph, as follows: 105.4(4) Approval of request. The request is subject to the approval of the office of maintenancebureau.

ITEM 4. Amend subrule 105.5(3) as follows: 105.5(3) Request. A request to sponsor a holiday rest stop along a noninterstate primary highway shall be made on Form 810023. This form is available from the department’s district offices, the office of maintenancebureau or the department’s website. a. The request shall include the name and address of the requesting sponsor, a detailed description of the proposed holiday rest stop location, and the requested hours of operation. b. The request shall be submitted to the district office or the office of maintenancebureau. c. The request must be submitted at least 30 days prior to the beginning date of the holiday period and shall be accepted up to 12 months in advance.

ITEM 5. Amend subrule 105.5(4), introductory paragraph, as follows: 105.5(4) Approval of request. The request is subject to the approval of the district engineermaintenance bureau.

ITEM 6. Amend rule 761—106.3(307) as follows:

761—106.3(307) Information. General information regarding agricultural promotions at interstate rest areas is available from the Office of MaintenanceBureau, Iowa Department of Transportation, 800 Lincoln Way, Ames, Iowa 50010, or the department’s website at www.iowadot.gov.

ITEM 7. Amend subrule 106.4(1) as follows: 106.4(1) A request to promote an Iowa agricultural product at an interstate rest area shall be made on Form 810059. This form is available from the department’s district offices, the office of maintenancebureau or the department’s website. a. The sponsor of the promotion must be an organization that promotes products grown or raised in Iowa. b. The request shall include the name and address of the requesting organization, a detailed description of the proposed Iowa agricultural product promotion, and the requested hours of operation. c. The request shall be submitted to the office of maintenancebureau. d. The request must be submitted at least 30 days prior to the beginning date of the promotional period and shall be accepted up to six months in advance.

ITEM 8. Amend subrule 106.4(2), introductory paragraph, as follows: 106.4(2) Approval of request. The request is subject to the approval of the office of maintenancebureau. [Filed 4/13/21, effective 6/9/21][Published 5/5/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 5/5/21.ARC 5608CUtilities Division[199]Adopted and Filed

Rule making related to electric vehicle charging service

The Utilities Board hereby amends Chapter 20, “Service Supplied by Electric Utilities,” Iowa Administrative Code.Legal Authority for Rule Making This rule making is adopted under the authority provided in Iowa Code section 476.2.State or Federal Law Implemented This rule making implements, in whole or in part, Iowa Code sections 476.1 and 476.26.Purpose and Summary On November 12, 2019, the Iowa Administrative Rules Review Committee (ARRC) considered the Board’s adoption of rule 199—20.20(476) as published in ARC 4720C (IAB 10/23/19). By a vote of six to three, the ARRC voted to object to rule 199—20.20(476). The Board initiated this rule making with the intent of adopting an electric vehicle charging services rule that does not contain the defects identified by the ARRC. On April 7, 2021, the Board issued an order adopting amendments. The order is available on the Board’s electronic filing system, efs.iowa.gov, under Docket No. RMU-2020-2020.Public Comment and Changes to Rule Making Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on November 4, 2020, as ARC 5267C. The Board conducted an oral presentation on December 21, 2020, at 1 p.m. in the Board Hearing Room, 1375 East Court Avenue, Des Moines, Iowa. MidAmerican Energy Company, Interstate Power and Light Company, the Iowa Association of Municipal Utilities, and the Iowa Association of Electric Cooperatives spoke in favor of the rule as published in the Notice. Iowa 80 Truckstop, Inc., stood by its written comments, in which it stated it does not object to the adoption of the rule as published in the Notice. The Sierra Club, Iowa Chapter, expressed support for current rule 199—20.20(476) and requested the Board terminate this rule making. The Office of the Consumer Advocate, a division of the Iowa Department of Justice; ChargePoint, Inc.; the Iowa Business for Clean Energy; the Environmental Law & Policy Center; and the Iowa Environmental Council each spoke in favor of changes to the version of rule 199—20.20(476) as published in the Notice. In addition to the written comment deadline contained in the Notice, the Board allowed the public to file additional written comments following the oral presentation. MidAmerican Energy Company, Interstate Power and Light Company, the Iowa Association of Municipal Utilities, and the Iowa Association of Electric Cooperatives submitted comments in favor of the rule as published in the Notice. Iowa 80 Truckstop, Inc., submitted a written comment stating it does not object to the adoption of the rule as published in the Notice. The Sierra Club, Iowa Chapter, and the Winneshiek Energy District submitted comments in support of the current rule 199—20.20(476). The Office of the Consumer Advocate, a division of the Iowa Department of Justice; ChargePoint, Inc.; the Iowa Business for Clean Energy; the Environmental Law & Policy Center; the Iowa Environmental Council; and the Linn Clean Energy District each filed comments in which they requested changes to the version of rule 199—20.20(476) as published in the Notice. No changes from the Notice have been made.Adoption of Rule Making This rule making was adopted by the Board on April 7, 2021.Fiscal Impact This rule making has no fiscal impact to the State of Iowa. Jobs Impact After analysis and review of this rule making, no impact on jobs has been found.Waivers No waiver provision is included in these amendments because the Board has a general waiver provision in rule 199—1.3(17A,474,476) that provides procedures for requesting a waiver of the rules in this chapter.Review by Administrative Rules Review Committee The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date This rule making will become effective on June 9, 2021. The following rule-making action is adopted:

ITEM 1. Rescind rule 199—20.20(476) and adopt the following new rule in lieu thereof:

199—20.20(476) Electric vehicle charging service. 20.20(1) A commercial or public electric vehicle charging station is not a public utility under Iowa Code section 476.1 if the charging station receives all electric power from the electric utility in whose service area the charging station is located. If an electric vehicle charging station obtains electric power from a source other than the electric utility, the determination of whether the commercial or public electric vehicle charging station is a public utility shall be resolved by the board. 20.20(2) A person, partnership, business association, or corporation, foreign or domestic, furnishing electricity to a commercial or public electric vehicle charging station shall comply with Iowa Code section 476.25 and, if applicable, with the terms and conditions of the public utility’s tariffs or service rules. 20.20(3) A rate-regulated public utility shall not, through its filed tariff, prohibit electric vehicle charging or restrict the method of sale of electric vehicle charging at a commercial or public electric vehicle charging station. 20.20(4) Electric utilities and entities providing commercial or public electric vehicle charging service shall comply with all applicable statutes and regulations governing the provision of electric vehicle charging service, including but not limited to all taxing requirements, and shall, if necessary, file all appropriate tariffs. [Filed 4/8/21, effective 6/9/21][Published 5/5/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 5/5/21.

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