Bulletin 08-11-2021

Front matter not included
ARC 5854CCollege Student Aid Commission[283]Notice of Intended Action

Proposing rule making related to the all Iowa opportunity scholarship program and providing an opportunity for public comment

    The College Student Aid Commission hereby proposes to amend Chapter 8, “All Iowa Opportunity Scholarship Program,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 261.3.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 261; 2021 Iowa Acts, Senate File 285; and 2021 Iowa Acts, House File 868.Purpose and Summary    This proposed rule making implements amendments enacted by 2021 Iowa Acts, Senate File 285, to allow a scholarship recipient to suspend enrollment for a period not to exceed two years in the event of military deployment or temporary medical incapacity, in relation to a national or state declaration of emergency or volunteer service or missionary work, or other exceptional circumstances approved by the Commission.    This proposed rule making also implements amendments enacted by 2021 Iowa Acts, House File 868, by adding stepchildren to each category in the definition of “eligible surviving-child student.” In addition, a new category is added to the definition of “eligible surviving-child student” to provide priority scholarship eligibility to children or stepchildren of an employee of the Iowa Department of Corrections or of a judicial district department of correctional services who was killed in the line of duty.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Commission for a waiver of the discretionary provisions, if any, pursuant to 283—Chapter 7.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 Commission no later than 4:30 p.m. on August 31, 2021. Comments should be directed to: Mark Wiederspan Executive Director Iowa College Student Aid Commission 475 S.W. Fifth Street, Suite D Des Moines, Iowa 50309-4608 Phone: 515.725.3410 Fax: 515.725.3401 Email: mark.wiederspan@iowa.gov or administrative rules website at rules.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 283—8.2(261), definition of “Eligible surviving-child student,” as follows:        "Eligible surviving-child student" means a person who is not a convicted felon as defined in Iowa Code section 910.15 and who meets any of the following criteria:
  1. Is the childor stepchild of a peace officer, as defined in Iowa Code section 97A.1, who was killed in the line of duty as determined by the board of trustees of the Iowa department of public safety peace officers’ retirement, accident, and disability system in accordance with Iowa Code section 97A.6(16).
  2. Is the childor stepchild of a police officer or fire fighter, as defined in Iowa Code section 411.1, who was killed in the line of duty as determined by the statewide fire and police retirement system in accordance with Iowa Code section 411.6(15).
  3. Is the childor stepchild of a sheriff or deputy sheriff, as defined in Iowa Code section 97B.49C, who was killed in the line of duty as determined by the Iowa public employees’ retirement system in accordance with Iowa Code section 97B.52(2).
  4. Is the childor stepchild of a fire fighter or police officer included under Iowa Code section 97B.49B, who was killed in the line of duty as determined by the Iowa public employees’ retirement system in accordance with Iowa Code section 97B.52(2).
  5. Is the child or stepchild of an employee of the Iowa department of corrections, or of a judicial district department of correctional services, who was killed in the line of duty.

    ITEM 2.    Adopt the following new definition of “Stepchild” in rule 283—8.2(261):        "Stepchild" means the same as defined in Iowa Code section 450.1.

    ITEM 3.    Adopt the following new subrule 8.3(4):    8.3(4)   If a scholarship recipient suspends enrollment at the eligible college or university after receipt of the scholarship due to military deployment; due to a temporary medical incapacity; in relation to the declaration of a national or state emergency; service in AmeriCorps, Volunteers in Service to America, or the federal Peace Corps; due to a period of religious missionary work conducted by an organization exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Service; or other exceptional circumstances approved by the commission, the recipient must apply for a waiver. If the waiver is approved, the recipient is not required to continuously receive the scholarship during the period covered by the waiver.
ARC 5855CCollege Student Aid Commission[283]Notice of Intended Action

Proposing rule making related to health care professional recruitment program and providing an opportunity for public comment

    The College Student Aid Commission hereby proposes to amend Chapter 14, “Health Care Professional Recruitment Program,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 261.3.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 261 and 2021 Iowa Acts, House File 196.Purpose and Summary    These proposed amendments implement changes enacted by 2021 Iowa Acts, House File 196. House File 196 expands loan repayment eligibility to health professionals who graduate from Iowa Regents universities and Iowa private colleges and universities, and who agree to practice in rural Iowa. In addition, House File 196 includes athletic trainers and occupational therapists as eligible health care professionals.    This proposed rule making also includes a definition of “eligible rural community,” a term that is consistently used in programs administered by the Commission; implements criteria to prioritize awards in the event that funding is not sufficient to award all new applicants; and ensures that recipients do not receive awards in other loan repayment programs administered by the Commission.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Commission for a waiver of the discretionary provisions, if any, pursuant to 283—Chapter 7.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 Commission no later than 4:30 p.m. on August 31, 2021. Comments should be directed to: Mark Wiederspan Executive Director Iowa College Student Aid Commission 475 S.W. Fifth Street, Suite D Des Moines, Iowa 50309-4608 Phone: 515.725.3410 Fax: 515.725.3401 Email: mark.wiederspan@iowa.gov or administrative rules website at rules.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.    Rescind 283—Chapter 14, preamble.

    ITEM 2.    Amend rule 283—14.1(261), definitions of “Eligible rural community” and “Health care professional,” as follows:        "Eligible rural community" means a medically underserved rural Iowa community which agrees to match state funds on at least a dollar-for-dollar basis for the loan repayment of a health care professional who practices in the communitycity with a population of less than 26,000 that is located more than 20 miles from a city with a population of 50,000 or more. Locations and distances between cities will be consistently measured and verified by calculating the shortest travel distance on paved roads.        "Health care professional" means an individual who holds a practitioner’s license issued by an agency or board under the Iowa department of public health and is employed as aan athletic trainer, occupational therapist, physician, physician assistant, podiatrist, or physical therapist.

    ITEM 3.    Adopt the following new definitions of “Eligible institution” and “Matching funds” in rule 283—14.1(261):        "Eligible institution" means an institution of higher learning governed by the state board of regents or an accredited private institution as defined in Iowa Code section 261.9. Eligible institutions seeking to participate must complete an application provided by the commission and agree to place health care professionals in eligible rural communities.        "Matching funds" means at least a dollar-for-dollar loan repayment match to the state health care professional recruitment program award.

    ITEM 4.    Amend rule 283—14.2(261) as follows:

283—14.2(261) Health care professional loan repayment program.      14.2(1) Recruitment.  The universityeligible institution shall recruit and place health care professionals in eligible rural communities that agree to provide matching funds forcommunicate the availability of the health care professional loan repayment programto current students training to become health care professionals and alumni who are health care professionals.The commission will ensure, to the extent possible, that an equal number of new agreements are available to health care professionals in each occupation category. Selection of new applicants within each occupation category will be prioritized as follows:    a.    Students in their final year of a degree program leading to a license to practice as a health care professional;    b.    The most recent graduates of a degree program leading to a license to practice as a health care professional, with the most recent academic year graduates given priority;    c.    Date of application.    14.2(2) Health care professional service requirement.  The health care professional service requirement for the health care professional loan repayment program is four years. The health care professional must annually verify, in a format acceptable to the commission, that the health care professional practiced in an eligible rural community for 12 consecutive months for each year of required service. An award will be prorated based on the months of service provided in a state fiscal year if less than 12 months.An award will also be prorated if the individual is employed on a less than full-time basis.    14.2(3) Award.  The health care professional may receive up to $50,000 in state-funded repayment benefits when aan eligible rural community agrees to fund matching benefitsprovide matching funds of an equal or greater amount.At least a dollar-for-dollar match must be provided. Matching funds from an eligible rural community totaling less than $50,000 will result in an equally lower state health care professional recruitment program award.    14.2(4) Eligible loans.  Eligible loans include subsidized and unsubsidized Stafford loans, Grad PLUS loans and consolidated loans. Only the outstanding portion of a Federal Consolidation Loan that was used to repay an eligible subsidized or unsubsidized Federal Stafford Loan, an eligible Direct Subsidized Loan, an eligible Direct Unsubsidized Loan, or an eligible Grad PLUS Loan qualifies for loan repayment. A health care professional who receives loan repayment under this program and who refinances an eligible loan by obtaining a private educational loan may continue to receive loan repayment awards.    14.2(5) Disbursement.  The commission shall disburse the loan payment to the health care professional’s loan holder in return for completion of the service requirements in an eligible rural community.    14.2(6) Restrictions.  A recipient of a loan repayment award under Iowa Code section 261.113, 261.114, or 261.115 shall not be eligible for an award under this chapter.A health care professional who is in default on a Stafford loan, SLS loan, Grad PLUS loan, or a Perkins/National Direct/National Defense student loan or who owes a repayment on any Title IV grant assistance or state award shall be ineligible for repayment benefits. Eligibility for state aid may be reinstated upon payment in full of the delinquent obligation or by commission ruling on the basis of adequate extenuating evidence presented in appeal under the procedures set forth in 283—Chapter 5, Iowa Administrative Code.    14.2(7) Repayment.      a.    If loan repayment funds are applied prior to the health care professional’s completion of the service requirement and the health care professional fails to complete the service requirement, repayment shall begin 30 days following termination of practice in an eligible rural community.    b.    The commission shall prorate the award balance based on the months of service provided.    c.    The health care professional shall repay the prorated balance of the loan repayment benefits and accrued interest at 12 percent per annum. Interest shall accrue on the unpaid principal balance of each loan from the effective date of the loan repayment agreement until the loan is paid in full.    d.    The prorated balance owed by the health care professional must be paid in full within three years from the date the service ends.
ARC 5852CCollege Student Aid Commission[283]Notice of Intended Action

Proposing rule making related to approval of postsecondary schools and providing an opportunity for public comment

    The College Student Aid Commission hereby proposes to amend Chapter 21, “Approval of Postsecondary Schools,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 261.3 and 261B.3.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapters 261 and 261B and 2021 Iowa Acts, House File 644.Purpose and Summary    The proposed rule making implements amendments enacted by 2021 Iowa Acts, House File 644, sections 1 and 2. House File 644 authorizes the Commission to utilize funding in the Postsecondary Registration Fund to assist Iowans who are negatively impacted by a precipitous school closure. The proposed rule making provides a definition of “school closure,” defines the types of assistance the Commission can provide in the event of a school closure, clarifies student eligibility for assistance, and establishes the claim, approval, and awarding processes for eligible students. In addition, the proposed rule making makes technical amendments to ensure the authorization duties associated to exempt schools are clarified in rule.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Commission for a waiver of the discretionary provisions, if any, pursuant to 283—Chapter 7.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 Commission no later than 4:30 p.m. on August 31, 2021. Comments should be directed to: Mark Wiederspan Executive Director Iowa College Student Aid Commission 475 S.W. Fifth Street, Suite D Des Moines, Iowa 50309-4608 Phone: 515.725.3410 Fax: 515.725.3401 Email: mark.wiederspan@iowa.gov or administrative rules website at rules.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 283—21.1(261B,261G) as follows:

283—21.1(261B,261G) Postsecondary registration, exemption from registration, and participation in the commission-approved reciprocity agreement.  The college student aid commission examines college and university applications for registration to operate in Iowaor authorization to operate under an exemption from registration and monitors schools approved by the commission to operate in the state. The commission also examines Iowa college and university applications for participation in an interstate reciprocity agreement under which the commission is an approved participant.

    ITEM 2.    Amend rule 283—21.2(261B,261G), definition of “School,” as follows:        "School" means a postsecondary educational institution that applies to register or is currently registered to offer all or a portion of a program in Iowa, or applies to operate or is operating under an approved exemption from registration, under Iowa Code chapter 261B. “School” also means a postsecondary educational institution that is seeking to participate in the commission’s approved interstate reciprocity agreement under Iowa Code chapter 261G or that is a “participating resident institution” as defined in Iowa Code section 261G.2. A postsecondary educational institution that maintains a physical location outside of the state of Iowa and that must register under Iowa Code chapter 261B to operate at a physical location in this state is not a school that is eligible to participate in the commission’s approved interstate reciprocity agreement under Iowa Code chapter 261G.

    ITEM 3.    Adopt the following new definition of “School closure” in rule 283—21.2(261B,261G):        "School closure" means a precipitous or abrupt closure of a school during a semester, school period, or term of enrollment that leaves students without an option to complete the courses or program they started and with no ability to receive credit.

    ITEM 4.    Adopt the following new rule 283—21.16(261B,261G):

283—21.16(261B,261G) School closures.  In the event of a school closure, the commission may use unobligated funds from the postsecondary registration fund, pursuant to Iowa Code section 261B.8, to assist impacted eligible students.    21.16(1) Student eligibility.  The provisions of this rule apply to Iowa resident students who were enrolled in a postsecondary educational program that leads to a recognized educational credential or were on an approved leave of absence when the school abruptly closed.    21.16(2) Assistance to impacted eligible students.  The commission may provide the following forms of assistance to eligible students impacted by a school closure:    a.    Procure, evaluate, and store records needed to establish the validity of claims against a school for failure to faithfully perform all contracts and agreements.    b.    Pay institutional charges on behalf of Iowans who enrolled at the school.     c.    Support an arrangement in which the school provides its current students with the opportunity to complete the students’ courses of study after the school closes, including any activities designed to facilitate the transition of such students to another postsecondary educational institution.    d.    Pay private educational loan debt incurred by Iowans for attendance at the school during the enrollment term that the college closes.    e.    Reimburse Iowans who enrolled at the school for other financial loss, as determined by the commission.     21.16(3) Claims process.  An eligible student making a claim for reimbursement under paragraph 21.16(3)“b,” “d,” or “e” must contact the commission for a claim form and provide the following supporting information and documentation:     a.    Proof of enrollment at the time of school closing.     b.    Proof of attendance at the time of school closing.     c.    Proof of Iowa residency at the time of school closing.    d.    Proof of payment of private educational loan debt, tuition, fees, or other financial loss as determined by the commission.    e.    Any other documentation to support a student’s claim of enrollment, attendance, or payment.    21.16(4) Approval process.  The commission will review a claim and the supporting information and documentation submitted by each eligible student seeking reimbursement under this rule. The commission may delay approval of claims for a period not to exceed one year to ensure all claims related to a school closure are received.    21.16(5) Awarding of approved claims.      a.    All claims for reimbursement shall be submitted and approved within one year of the date of the school closure.    b.    Claims for reimbursement will first be made against the school’s surety bond.    c.    If the school’s surety bond is insufficient to provide reimbursement to all approved claims, the postsecondary registration fund, pursuant to Iowa Code section 261B.8, may be used to reimburse any remaining approved claims.In no case will the total approved claims related to a single school closure exceed one‑half of the unobligated balance in the postsecondary registration fund pursuant to Iowa Code section 261B.8. If the postsecondary registration fund is insufficient to cover the full amount of all approved claims, the commission shall develop a method of allocating the funds.    21.16(6) Appeal process.  The procedures set forth in 283—Chapter 4 will be followed in the event of an appeal to a decision by the commission.
ARC 5853CCollege Student Aid Commission[283]Notice of Intended Action

Proposing rule making related to rural Iowa primary care loan repayment program and providing an opportunity for public comment

    The College Student Aid Commission hereby proposes to amend Chapter 24, “Rural Iowa Primary Care Loan Repayment Program,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 261.3.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 261 and 2021 Iowa Acts, Senate File 129.Purpose and Summary    These proposed amendments implement changes enacted by 2021 Iowa Acts, Senate File 129. Senate File 129 adds OB-GYN as an eligible specialty and expands the eligible practice areas for psychiatrists. In addition, the legislation allows the Commission to amend the service agreement upon request of the recipient to allow the individual to work on a part-time basis.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Commission for a waiver of the discretionary provisions, if any, pursuant to 283—Chapter 7.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 Commission no later than 4:30 p.m. on August 31, 2021. Comments should be directed to: Mark Wiederspan Executive Director Iowa College Student Aid Commission 475 S.W. Fifth Street, Suite D Des Moines, Iowa 50309-4608 Phone: 515.725.3410 Fax: 515.725.3401 Email: mark.wiederspan@iowa.gov or administrative rules website at rules.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 283—24.2(261), definitions of “Physician” and “Service commitment area,” as follows:        "Physician" means an individual who holds a practitioner’s license issued by an agency or board under the Iowa department of public health and is employed in the practice of medicine and surgery or osteopathic medicine and surgery, specializing in family medicine, pediatrics, psychiatry, internal medicine,obstetrics and gynecology, or general surgery.        "Service commitment area" means a medically underserved Iowa city with a population of less than 26,000 that is located more than 20 miles from a city with a population of 50,000 or more. Each physician participating in the program must contract with the service commitment area to ensure the service commitment area provides a nonrefundable $20,000 contribution for deposit in the rural Iowa primary care trust fund. Payment of the nonrefundable contribution to the trust fund can be made by, but is not limited to, the following organizations: community agencies, hospitals, medical groups, municipalities, community foundations, local government entities, or other community entities. Locations and distances between cities will be consistently measured and verified by calculating the shortest travel distance on paved roads.which provides a nonrefundable contribution for each physician in the community who is participating in the rural Iowa primary care loan repayment program and which meets any of the following conditions:
  1. Is a city within a federal mental health shortage area, as designated by the Health Resources and Services Administration of the United States Department of Health and Human Services, if the physician participating in the rural Iowa primary care loan repayment program specializes in psychiatry.
  2. Is a city with a population of less than 26,000 that is located more than 20 miles from a city with a population of 50,000 or more. Locations and distances between cities will be consistently measured and verified by calculating the shortest travel distance on paved roads.

    ITEM 2.    Adopt the following new definition of “Contribution” in rule 283—24.2(261):        "Contribution" means a nonrefundable $20,000 contribution paid by the service commitment area to the rural Iowa primary care trust fund for each physician in the community who is participating in the program. Each physician participating in the program must contract with the service commitment area to ensure the service commitment area provides the nonrefundable contribution. Payment of the nonrefundable contribution to the trust fund can be made by, but is not limited to, the following organizations: community agencies, hospitals, medical groups, municipalities, community foundations, local government agencies, or other community entities.

    ITEM 3.    Amend subrule 24.3(5) as follows:    24.3(5)   Within nine months of graduating from the residency program, an applicant must receive a permanent license to practice medicine and surgery or osteopathic medicine and surgery in the state of Iowa and engage in full-time practice, as defined by the service commitment area, of medicine and surgery or osteopathic medicine and surgery specializing in family medicine, pediatrics, psychiatry, internal medicine,obstetrics and gynecology, or general surgery for a period of five consecutive years in a service commitment area.

    ITEM 4.    Amend subrule 24.5(2) as follows:    24.5(2) Full-time employment.  The commission may waive the requirement that the physician be employed full-time if the physician demonstrates exceptional circumstances. The physician must requestrequests a waiver from the commission in writingand is working at least 28 hours per week. If a waiver request is granted by the commission, the agreement will be amended to provide an allowance for part-time employment. The five-year employment obligation will be proportionally extended to ensure the physician is employed in a service commitment area for the equivalent of five full-time years.
ARC 5856CCollege Student Aid Commission[283]Notice of Intended Action

Proposing rule making related to National Guard master’s degree scholarship program and providing an opportunity for public comment

    The College Student Aid Commission hereby proposes to adopt new Chapter 29, “Iowa National Guard Master’s Degree Scholarship Program,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 261.3.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 261 and 2021 Iowa Acts, House File 428.Purpose and Summary    This proposed rule making implements provisions related to providing scholarships to members of the National Guard who are enrolled in certain master’s degree programs as enacted by 2021 Iowa Acts, House File 428. In the event that the Adjutant General authorizes the expenditure of unencumbered or unobligated funds from Iowa Code section 261.86(6) to provide scholarship awards for the recruitment or retention of individuals who are pursuing completion of science, technology, engineering, and mathematics master’s degree programs, the Iowa National Guard and Commission will utilize this new chapter to guide the administration of those benefits.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Commission for a waiver of the discretionary provisions, if any, pursuant to 283—Chapter 7.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 Commission no later than 4:30 p.m. on August 31, 2021. Comments should be directed to: Mark Wiederspan Executive Director Iowa College Student Aid Commission 475 S.W. Fifth Street, Suite D Des Moines, Iowa 50309-4806 Phone: 515.725.3410 Fax: 515.725.3401 Email: mark.wiederspan@iowa.gov or administrative rules website at rules.iowa.govPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

    ITEM 1.    Adopt the following new 283—Chapter 29: CHAPTER 29IOWA NATIONAL GUARD MASTER’S DEGREE SCHOLARSHIP PROGRAM

283—29.1(261) Scholarships to Iowa national guard members for master’s degree studies at eligible Iowa institutions.  In the event that the adjutant general authorizes the expenditure of unencumbered or unobligated funds from Iowa Code section 261.86(6) for the recruitment or retention of individuals by providing a scholarship award to an eligible member of the Iowa national guard, this chapter shall be used to administer authorized scholarships. The adjutant general shall select program recipients and authorize scholarship awards under this chapter. The decision of the adjutant general is final.    29.1(1) Definitions.  As used in this chapter:        "Eligible program of study" means a master’s degree program in science, technology, engineering, and mathematics-related military occupational specialties or air force specialty codes that is in compliance with the federal Edith Nourse Rogers STEM scholarship program established under 38 United States Code §3320.        "Federal active duty" means military duty performed pursuant to orders issued under Title 10, United States Code, other than for training.        "State-defined payment period" means one of six payment terms and corresponding deadlines as defined by the college student aid commission.    29.1(2) Eligible guard member.  A recipient must:    a.    Be a resident of Iowa, as defined by the adjutant general of Iowa, and a member of an Iowa army or air national guard unit throughout each term for which the member receives benefits.    b.    Have satisfactorily completed required guard training.    c.    Have maintained satisfactory performance of guard duty.    d.    Have applied to the adjutant general of Iowa for program eligibility by the established application deadline date(s) by completing the Free Application for Federal Student Aid (FAFSA) and any other application form required. The adjutant general shall accept an application from an eligible member of the Iowa national guard who was on federal active duty at the time of an application deadline if the application is received within 30 days after the eligible member returns to Iowa from federal active duty. The applicant will be considered for funding for the state-defined payment period in which the application was received and any future state-defined payment periods in that academic year.    e.    Be pursuing an eligible program of study at an institution of higher education governed by the state board of regents or an accredited private institution or eligible institution located in Iowa that meets all eligibility requirements set forth in Iowa Code section 261.9.    f.    Be maintaining satisfactory academic progress.    g.    Have been offered the scholarship incentive either:    (1)   In the military entrance process, or    (2)   Within the final year of the service member’s initial contract obligation, if the individual signs a six-year extension.    29.1(3) Selection criteria.  The adjutant general will select eligible guard members to receive the scholarship benefit. Neither eligibility nor scholarship award determinations shall be based upon an eligible guard member’s unit, the location at which drills are attended, or whether the eligible guard member is a member of the Iowa army or air national guard.    29.1(4) Award limitations.  Awards may be used for tuition and fees; room and board; books, supplies, transportation and personal expenses; dependent care; and disability-related expenses. Individual award amounts shall be determined by the adjutant general and shall neither be less than an amount equal to 50 percent of the resident tuition rate established for students attending the eligible program of study at regent institutions nor exceed the amount of the resident tuition rate established for students attending the eligible program of study at regent institutions.    29.1(5) Restrictions.  An eligible guard member may receive the scholarship award for no more than 36 semester credit hours, or the equivalent, of graduate degree study. All credit hours applicable to the eligible program of study in a term of enrollment in which a scholarship was received must be reported to the commission within the state-defined payment period.    29.1(6) Verification and compliance.      a.    The adjutant general will notify the commission of all eligible guard members. Changes in member eligibility will be sent to the commission within 30 days of the change.    b.    The commission will notify eligible Iowa colleges and universities of guard member eligibility.    c.    The commission will coordinate the collection and dissemination of eligibility and enrollment information received from the adjutant general and colleges and universities.     d.    The institution’s financial aid administrator will be responsible for completing academic progress enrollment verifications and for coordinating other aid to ensure compliance with student eligibility requirements and allowable award amounts. Colleges and universities will report changes in student enrollment to the commission within 30 days after the last day of the enrollment period.        This rule is intended to implement 2021 Iowa Acts, House File 428.
ARC 5857CCollege Student Aid Commission[283]Notice of Intended Action

Proposing rule making related to national guard student loan repayment program and providing an opportunity for public comment

    The College Student Aid Commission hereby proposes to adopt new Chapter 30, “Iowa National Guard Student Loan Repayment Program,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 261.3.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 261 and 2021 Iowa Acts, House File 428.Purpose and Summary    This proposed rule making implements a new loan repayment program enacted by 2021 Iowa Acts, House File 428. In the event that the Adjutant General authorizes the expenditure of unencumbered or unobligated funds from Iowa Code section 261.86(6) to issue loan repayment awards for the recruitment or retention of individuals who have completed or are pursuing completion of science, technology, engineering, and mathematics programs of study, the Iowa National Guard and Commission will utilize this chapter to guide the administration of those benefits.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Commission for a waiver of the discretionary provisions, if any, pursuant to 283—Chapter 7.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 Commission no later than 4:30 p.m. on August 31, 2021. Comments should be directed to: Mark Wiederspan Executive Director Iowa College Student Aid Commission 475 S.W. Fifth Street, Suite D Des Moines, Iowa 50309-4806 Phone: 515.725.3410 Fax: 515.725.3401 Email: mark.wiederspan@iowa.gov or administrative rules website at rules.iowa.govPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

    ITEM 1.    Adopt the following new 283—Chapter 30: CHAPTER 30IOWA NATIONAL GUARD STUDENT LOAN REPAYMENT PROGRAM

283—30.1(261) Loan repayment awards to Iowa national guard members.  In the event that the adjutant general authorizes the expenditure of unencumbered or unobligated funds from Iowa Code section 261.86(6) for the recruitment or retention of individuals by issuing student loan repayment awards to an eligible member of the Iowa national guard, this chapter shall be used to administer authorized awards. The adjutant general shall select program recipients and authorize awards under this chapter.     30.1(1) Definitions.  As used in this chapter:        "Eligible program of study" means a program of study in science, technology, engineering, and mathematics-related military occupational specialties or air force specialty codes that is in compliance with the federal Edith Nourse Rogers STEM Scholarship program established under 38 United States Code §3320.        "Federal active duty" means military duty performed pursuant to orders issued under Title 10, United States Code, other than for training.        "Qualified student loan" means a federally guaranteed Stafford Loan under the Federal Family Education Loan Program or the Federal Direct Loan Program, a federal Grad PLUS Loan, or a federal Perkins Loan, including principal and interest. Only the outstanding portion of a federal consolidation loan that was used to repay a qualified student loan qualifies for loan repayment.     30.1(2) Eligibility requirements.  An eligible guard member must:    a.    Be a resident of Iowa, as defined by the adjutant general of Iowa, and a member of an Iowa army or air national guard unit.    b.    Have satisfactorily completed required guard training.    c.    Have maintained satisfactory performance of guard duty.    d.    Have applied to the adjutant general of Iowa by the established application deadline date(s) by completing any application form required. The adjutant general shall accept an application from an eligible member of the Iowa national guard who was on federal active duty at the time of an application deadline if the application is received within 30 days after the eligible member returns to Iowa from federal active duty. A new application may be required in subsequent years to renew loan repayment eligibility.     e.    Be pursuing or have completed an eligible program of study.    f.    Have been offered the loan repayment incentive either:    (1)   In the military entrance process, or    (2)   Within the final year of the service member’s initial contract obligation, and the individual must sign a six-year extension.    g.    Continue to meet the requirements of the contract with the Iowa national guard and the provisions of this chapter.    30.1(3) Selection criteria.  The adjutant general will select eligible guard members to receive the student loan repayment benefit. Neither eligibility nor loan repayment award determinations shall be based upon an eligible guard member’s unit, the location at which drills are attended, or whether the eligible guard member is a member of the Iowa army or air national guard.    30.1(4) Annual award.  The maximum award shall be the lesser of:    a.    $5,000, or    b.    100 percent of the eligible guard member’s outstanding qualified student loan.     30.1(5) Extent of repayment.  Eligible guard members may receive loan repayment for no more than six consecutive years. Eligible guard members who fail to receive loan repayment awards in consecutive years will not be considered for subsequent years of loan repayment.    30.1(6) Disbursement of loan repayment funds.      a.    Loan repayment awards will be disbursed upon completion of the year for which the award was approved. Prior to issuing the loan repayment award, commission staff will certify that the eligible guard member meets the eligibility requirements.    b.    Following completion of the provisions in paragraph 30.1(6)“a,” loan repayment awards will be distributed to the eligible guard member’s student loan holder and applied directly to qualified student loans.    30.1(7) Loan repayment cancellation.  The adjutant general may cancel future loan repayment benefits for an individual if the individual does not continue to meet the provisions under this chapter or if funding is insufficient to provide future loan repayment awards.    30.1(8) Restrictions.  An eligible guard member who is in default on a qualified student loan or who owes a repayment on any Title IV grant assistance or state award shall be ineligible for loan repayment benefits. Eligibility may be reinstated upon payment in full of the delinquent obligation or by commission ruling on the basis of adequate extenuating evidence presented in appeal under the procedures set forth in 283—Chapters 4 and 5. Changes in eligible guard member eligibility will be sent to the commission within 30 days of the change.       This rule is intended to implement 2021 Iowa Acts, House File 428.
ARC 5851CEconomic Development Authority[261]Notice of Intended Action

Proposing rule making related to butchery innovation and revitalization loan program and providing an opportunity for public comment

    The Economic Development Authority (IEDA) hereby proposes to rescind Chapter 51, “Self-Employment Loan Program,” and to adopt a new Chapter 51, “Butchery Innovation and Revitalization Program,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 15.106A and 2021 Iowa Acts, House File 857.State or Federal Law Implemented    This rule making implements, in whole or in part, 2021 Iowa Acts, House File 857.Purpose and Summary    2021 Iowa Acts, House File 857, directs the IEDA to establish and administer a Butchery Innovation and Revitalization Program. The program will provide grants to eligible businesses to expand, refurbish, or establish new meat processing businesses or for buildings, refrigeration facilities, freezer facilities, or equipment necessary to expand meat processing capacity.     Eligible applicants are Iowa businesses that are licensed by the Iowa Department of Agriculture and Land Stewardship (IDALS) to process meat. The maximum amount of assistance that may be awarded to an eligible applicant is $50,000. Applications for the program will be scored by a review committee appointed by the Director of the IEDA and the Secretary of Agriculture.    As directed in 2021 Iowa Acts, House File 857, the IEDA developed the program and the rules proposed in this rule making in consultation with IDALS staff. New Chapter 51 replaces current Chapter 51 relating to the Self-Employment Loan Program created pursuant to Iowa Code section 15.241, which was repealed by 2003 Iowa Acts, chapter 71, section 6.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa beyond the appropriation made in 2021 Iowa Acts, House File 871. 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 IEDA for a waiver of the discretionary provisions, if any, pursuant to 261—Chapter 199. Public Comment     Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the IEDA no later than 4:30 p.m. on August 31, 2021. Comments should be directed to: Lisa Connell Iowa Economic Development Authority 1963 Bell Avenue, Suite 200 Des Moines, Iowa 50315 Phone: 515.348.6163 Email: lisa.connell@iowaeda.com Public Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

    ITEM 1.    Rescind 261—Chapter 51 and adopt the following new chapter in lieu thereof: CHAPTER 51BUTCHERY INNOVATION AND REVITALIZATION PROGRAM

261—51.1(15E) Purpose.  Pursuant to Iowa Code section 15E.370 as enacted by 2021 Iowa Acts, House File 857, section 1, the authority is authorized to provide financial assistance to businesses for projects relating to butchery innovation and revitalization as identified in this chapter.

261—51.2(15E) Definitions.  For purposes of this chapter, unless the context otherwise requires:        "Agreement" means a contract for financial assistance under the program describing the terms on which the financial assistance is to be provided.        "Applicant" means a business applying for assistance under the program.        "Authority" means the economic development authority created in Iowa Code section 15.105.        "Authority’s website" means the information and related content found at www.iowaeda.com and may include integrated content at affiliate sites.        "Board" means the members of the economic development authority appointed by the governor and in whom the powers of the authority are vested pursuant to Iowa Code section 15.105.        "Business" means a sole proprietorship, partnership, corporation, or other business entity organized for profit under the laws of the state of Iowa or another state, under federal statutes, or under the laws of another country.        "Committee" means the committee of application reviewers appointed by the director and the secretary pursuant to subrule 51.5(1).        "Department" means the department of agriculture and land stewardship.        "Director" means the director of the authority.        "Establishment" means the same as defined in Iowa Code section 189A.2.        "Federal grant of inspection" means a certification issued by the Food Safety and Inspection Service certifying that an establishment is in compliance with the applicable requirements of 9 Code of Federal Regulations Chapter III and has been granted daily inspection services by FSIS.        "Federally inspected small-scale meat processing business" means an establishment that has been issued a federal grant of inspection and meets eligible business criteria in subrule 51.3(1).         "Financial assistance" means assistance provided only from the funds and assets legally available to the authority pursuant to Iowa Code section 15.370 as enacted by 2021 Iowa Acts, House File 857, section 1, and includes assistance in the form of grants, low-interest loans, and forgivable loans.        "Food Safety and Inspection Service" "FSIS" means the agency of the United States Department of Agriculture which regulates establishments.         "Grant" means an award of assistance with the expectation that, with the fulfillment of the conditions, terms and obligations of the contract with the authority for the project, repayment of funds is not required.        "Licensed custom locker" means an establishment that slaughters or prepares livestock exclusively for use by the owners of the livestock, members of their household, and their nonpaying guests and employees, that is periodically inspected by the department, and that meets the eligible business criteria in subrule 51.3(1).         "Mobile slaughter unit" means a self-contained slaughter establishment that can travel from site to site, that operates in compliance with applicable laws, regulations, and the most current mobile slaughter unit compliance guide issued by FSIS, and that meets the eligible business criteria in subrule 51.3(1).         "Program" means the butchery innovation and revitalization program established pursuant to this chapter.        "Project" means an activity or activities undertaken by the applicant to be carried out at an establishment.        "Secretary" means the secretary of agriculture, who is the head of the department.        "State grant of inspection" means a certification issued by the department certifying that an establishment is in compliance with the applicable requirements of 21—Chapter 76 and has been granted daily inspection services by the department.        "State-inspected small-scale meat processing business" means an establishment that has been issued a state grant of inspection and meets the eligible business criteria in subrule 51.3(1).

261—51.3(15E) Eligibility.      51.3(1) Eligible businesses.  To be eligible for a grant under the program, an applicant shall meet all of the following requirements:    a.    The business must be located in this state. For the purposes of this paragraph, a business is located in this state if at least 98 percent of the business’s employees work at the business’s operations in Iowa or if the employees that are paid at least 98 percent of the business’s payroll work at the business’s operations in Iowa.     b.    The business must be incorporated or organized in Iowa or authorized to do business in Iowa.    c.    The business must not have been subject to any regulatory enforcement action related to federal, state, or local environmental, worker safety, food processing, or food safety laws, rules, or regulations within the last five years. For the purposes of this paragraph, regulatory enforcement actions include, but are not limited to, an administrative order, consent order or similar formal order issued by an applicable enforcement agency or an involuntary withdrawal of a state grant of inspection or federal grant of inspection.    d.    The business must only employ individuals legally authorized to work in the state.    e.    The business must not currently be in bankruptcy.    f.    The business must employ less than 50 individuals.    g.    The business must be an establishment that holds a current license from the department in accordance with the requirements of Iowa Code chapter 189A or is actively working with the department to obtain a license.    51.3(2) Eligible projects.  The applicant must propose one of the following types of projects:     a.    To expand or refurbish an existing, or to establish a new, state-inspected small-scale meat processing business.    b.    To expand or refurbish an existing, or to establish a new, federally inspected small-scale meat processing business.    c.    To expand or refurbish an existing, or to establish a new, licensed custom locker.    d.    To expand or refurbish an existing, or to establish a new, mobile slaughter unit.    e.    To rent or purchase buildings, refrigeration facilities, freezer facilities, or equipment necessary to expand processing capacity, including mobile slaughter or refrigeration units used exclusively for meat or poultry processing by a federally inspected small-scale meat processing business, a licensed custom locker, a mobile slaughter unit, or a state-inspected small-scale meat processing business.    51.3(3) Matching support required.  The applicant shall demonstrate the ability to provide matching financial support for the project on a one-to-one basis in the form of cash. The matching financial support must be obtained from private sources.

261—51.4(15E) Application submittal and review process.      51.4(1)   The authority will develop a standardized application process and make information on applying available on the authority’s website. To apply for assistance under the program, an eligible business shall submit an application to the authority in the form and manner prescribed by the authority.     51.4(2)   Applications will be accepted only during established application periods as announced on the authority’s website. Applications will be reviewed in the order received by the authority.    51.4(3)   The authority may refuse to accept incomplete applications or may refuse to accept applications because of insufficient funds.    51.4(4)   A scoring committee that includes authority and department staff as described in subrule 51.5(1) will consider, evaluate, and recommend applications for financial assistance under the program. The committee will review applications for financial assistance and score the applications according to the criteria described in subrule 51.5(2). Applications deemed to meet the minimum scoring criteria will be submitted to the board for a final funding decision.    51.4(5)   The board, after considering the recommendations made by the committee, will determine which applications to fund and how much should be awarded to each applicant. The board has final decision-making authority on requests for financial assistance for the program. The director will take final action on all applications for financial assistance, except those rejected pursuant to subrule 51.4(3). The board may approve an award, decline to award, or refer an application back to staff for further review and recommendation.     51.4(6)   The maximum amount of financial assistance awarded to an eligible business for all applications under the program shall not exceed $50,000. The board may increase the maximum amount of financial assistance per eligible business if funds are made available for the program in addition to the funds appropriated by 2021 Iowa Acts, House File 871.     51.4(7)   Successful applicants will be notified in writing of an award of financial assistance, including any conditions and terms of the award.

261—51.5(15E) Application scoring criteria.      51.5(1) Application scoring.  A scoring committee will be composed of at least one representative of the authority appointed by the director, at least one representative of the department appointed by the secretary, and two additional members mutually agreed upon by the director and the secretary. The committee will evaluate the applications and give them an average numerical score between 0 and 100. The board may not approve a grant for an application that receives an average score of less than 75 points.    51.5(2) Scoring criteria.  The criteria under which each application will be scored are:    a.    The extent to which the project benefits local small-scale farmers by creating or expanding opportunities to market processed meat under private labels or by providing greater flexibility or convenience to have animals processed: 25 points. Projects that increase processing capacity or efficiency will receive more points.     b.    The extent to which the project establishes an essential community asset: 25 points. Projects that are likely to negatively impact existing meat processing businesses will receive fewer points.     c.    The sufficiency of the proposed project’s financing structure, the feasibility of the sources of funds, and the appropriateness of the proposed uses of the funds: 15 points.    d.    The extent to which the applicant has planned for long-term use of the project and the likelihood of long-term use: 15 points.     e.    The number and quality of jobs to be created by the applicant as a result of the project: 10 points. Projects that create more jobs or higher quality jobs will receive more points. Factors the committee will consider in assessing the quality of jobs include, but are not limited to, wages and benefits.     f.    The financial need of the applicant: 10 points. Applicants that received a business improvement grant from the department for expenses incurred between March 1, 2020, and December 1, 2020, will receive fewer points.

261—51.6(15E) Funding decisions.  Each application, including its numerical score, will be referred to the board with a recommended funding decision. The board will make the final funding decision on each application, taking into consideration the score and the funding recommendation of the committee.

261—51.7(15E) Contract administration.      51.7(1)   The authority will prepare a contract for each award approved by the board. The contract will reflect the terms of the award and may include other terms and conditions reasonably necessary for implementation of the program pursuant to this chapter.     51.7(2)   Any substantive change to a proposed project shall require an amendment to the contract. Amendments shall be requested in writing. No amendment shall be valid until approved by the board. The authority may execute nonsubstantive or corrective changes to the contract without board approval.

261—51.8(15E) Disbursement of funds.  The authority will disburse funds for a project only after a complete application has been received, an award has been approved by the board, a contract has been executed between the applicant and the authority, and all applicable conditions for disbursement have been met, including the submission of documentation pertaining to the eligible expenditures. Disbursement of funds under the contract will be on a reimbursement basis for expenses incurred by the applicant after the date the board approves the award and as provided under the contract.

261—51.9(15E) Reporting.  An applicant receiving assistance under the program shall submit any information reasonably requested by the authority in sufficient detail to permit the authority to prepare any reports required by the authority, the board, the general assembly or the governor’s office.       These rules are intended to implement Iowa Code section 15E.370 as enacted by 2021 Iowa Acts, House File 857, section 1.
ARC 5850CEconomic Development Authority[261]Notice of Intended Action

Proposing rule making related to brownfield and grayfield redevelopment and providing an opportunity for public comment

    The Economic Development Authority (IEDA) hereby proposes to amend Chapter 65, “Brownfield and Grayfield Redevelopment,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 15.106A and section 15.293B as amended by 2021 Iowa Acts, Senate File 619.State or Federal Law Implemented    This rule making implements, in whole or in part, 2021 Iowa Acts, Senate File 619.Purpose and Summary    2021 Iowa Acts, Senate File 619, amends Iowa Code section 15.293B relating to the Redevelopment Tax Credit Program for Brownfields and Grayfields. The amended statute increases the maximum program allocation to $15 million. 2021 Iowa Acts, Senate File 619, also authorizes the IEDA to award any tax credits in the next annual application period if the tax credits (1) have been revoked, including any credits revoked in the five years prior to enactment of the legislation, (2) were not awarded because the registered projects were not timely completed, or (3) were not awarded because the registered projects did not meet the requirements of the program or the agreement (Iowa Code section 15.293B(5A)“a” as enacted by 2021 Iowa Acts, Senate File 619). Senate File 619 states that tax credits awarded pursuant to Iowa Code section 15.293B(5A)“a” shall not be counted against the maximum allocation under Iowa Code section 15.119.     This proposed rule making amends Chapter 65 to reflect the changes made to the statute by 2021 Iowa Acts, Senate File 619. In addition, subrule 65.8(5) is amended to conform to a statutory amendment made in 2019. Fiscal Impact     This rule making has no fiscal impact to the State of Iowa beyond that of the legislation implemented. 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 IEDA for a waiver of the discretionary provisions, if any, pursuant to 261—Chapter 199. Public Comment     Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the IEDA no later than 4:30 p.m. on August 31, 2021. Comments should be directed to: Lisa Connell Iowa Economic Development Authority 1963 Bell Avenue, Suite 200 Des Moines, Iowa 50315 Phone: 515.348.6163 Email: lisa.connell@iowaeda.com Public Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

    ITEM 1.    Amend rule 261—65.2(15), definition of “Board,” as follows:        "Board" meansthe members of the economic development authority boardappointed by the governor and in whom the powers of the authority are vested pursuant to 2011 Iowa Code Supplement section 15.10215.105.

    ITEM 2.    Amend subrule 65.8(5) as follows:    65.8(5) Project completion.  A registered project shall be completed within 30 months of the date the project was registered unless the authority provides additional time to complete the project. A project will not be provided more than 12 months of additional time. If the registered project is not completed within the time required, the project is not eligible to claim a tax credit pursuant to this chapter.

    ITEM 3.    Amend paragraph 65.11(4)"e" as follows:    e.    Maximum credit total.For the fiscal year beginning July 1, 2009, the maximum amount of tax credits issued by the authority shall not exceed $1 million. For the fiscal year beginning July 1, 2011, the maximum amount of tax credits issued by the authority shall be an amount determined by the board but not in excess of $5 million. For the fiscal year beginning July 1, 20132021, and for each subsequent fiscal year, the maximum amount of tax credits issuedallocated to the program by the authority shall be an amount determined by the board but not in excess of the amount established pursuant to Iowa Code section 15.119as amended by 2021 Iowa Acts, Senate File 619.Tax credits awarded pursuant to paragraph 65.11(8)“b” shall not be counted against the allocation determined by the board pursuant to this paragraph.

    ITEM 4.    Amend subrule 65.11(8) as follows:    65.11(8) Tax credit carryover.      a.    If the maximum amount of tax credits available has not been issued at the end of the fiscal year, the remaining tax credit amount may be carried over to a subsequent fiscal year or the authority may prorate the remaining credit amount among other eligible applicants.    b.    Tax credits revoked under subrule 65.8(4) including tax credits revoked up to five years prior to the effective date of division XIV of 2021 Iowa Acts, Senate File 619, and tax credits not awarded under subrules 65.8(5) and 65.8(6), may be awarded in the next annual application period established in Iowa Code section 15.293B(1)“c.”

    ITEM 5.    Amend 261—Chapter 65, implementation sentence, as follows:       These rules are intended to implement 2011 Iowa Code Supplement sections 15.291 to 15.295and 2021 Iowa Acts, Senate File 619.
ARC 5819CEngineering and Land Surveying Examining Board[193C]Notice of Intended Action

Proposing rule making related to examination and experience requirements and providing an opportunity for public comment

    The Engineering and Land Surveying Examining Board hereby proposes to amend Chapter 1, “Administration,” Chapter 2, “Fees and Charges,” Chapter 3, “Application and Renewal Process,” Chapter 4, “Engineering Licensure,” and Chapter 7, “Professional Development,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 542B.6.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 542B; 2020 Iowa Acts, House File 2389; and 2021 Iowa Acts, House File 284.Purpose and Summary    2021 Iowa Acts, House File 284, allows the Board to adopt rules for “decoupling.” Decoupling allows professional engineer applicants to sit for the Principles and Practice of Engineering (PE) examination any time after passing the Fundamentals of Engineering (FE) examination, instead of first acquiring four years of professional engineering experience, as is the current situation. The experience requirement will be verified at the time the applicant applies for a PE license. 2020 Iowa Acts, House File 2389, requires the Board to amend rules regarding waivers and variances. The proposed amendments in this rule making are in response to these legislative changes. There are also some updates to rules included in these proposed amendments. Fiscal Impact    This rule making removes the chronological component of requirements for a PE license. There is a fiscal impact of less than $100,000 annually or $500,000 over five years.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 193—Chapter 5. 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 August 31, 2021. Comments should be directed to: Robert Lampe Iowa Engineering and Land Surveying Examining Board 200 East Grand Avenue, Suite 350 Des Moines, Iowa 50309 Email: robert.lampe@iowa.gov Public Hearing     A public hearing at which persons may present their views orally or in writing will be held as follows: August 31, 2021 9 to 10 a.m. Professional Licensing Bureau Offices 200 East Grand Avenue, Suite 350 Des Moines, Iowa     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.     Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Board and advise of specific needs. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

    ITEM 1.    Rescind subrule 1.1(3).

    ITEM 2.    Amend rule 193C—1.4(542B) as follows:

193C—1.4(542B) Waivers and variances.      1.4(1)   The board’s rules regarding waivers and variances can be found in the uniform rules for the division of professional licensing and regulation at 193—Chapter 5.    1.4(2)   Interim rulings. The board chairperson, or vice chairperson if the chairperson is not available, may rule on a petition for waiver or variance when it would not be timely to wait for the next regularly scheduled board meeting for a ruling from the board.    a.    The executive secretary shall, upon receipt of a petition meeting all applicable criteria established in 193—Chapter 5, present the request to the board chairperson or vice chairperson along with all pertinent information regarding established precedent for granting or denying such requests.    b.    The chairperson or vice chairperson shall reserve the right to hold an electronic meeting of the board when:    (1)   Board precedent does not clearly resolve the request and the input of the board is deemed required; and    (2)   The practical result of waiting until the next regularly scheduled meeting would be a denial of the request due to timing issues.    c.    A waiver report shall be placed on the agenda of the next regularly scheduled board meeting and recorded in the minutes of the meeting.    d.    This subrule on interim rulings does not apply if the waiver or variance was filed in a contested case.

    ITEM 3.    Amend rule 193C—2.1(542B) as follows:

193C—2.1(542B) General statement.  Fees are fixed in such an amount as will defray the expense of administering board responsibilities. Fees are charged in accordance with the following table:Type of feeAmountRenewal    Active license renewal$100    Inactive license renewal$40    Reinstatement of lapsed license(In addition to the reinstatement fee, the applicant for reinstatement must also pay the appropriate prorated reinstated license fee below.)$100Reinstatement of inactive to active license$60    New or reinstated license(In addition to the appropriate prorated reinstated license fee, the applicant for reinstatement must also pay the reinstatement fee above.)$100 Prorated at six-month intervalsApplication for examinationsexamination     Principles and Practice of Engineering$100    Principles and Practice of Land Surveying$100Examinations    Fees for NCEES examinations are paid directly to the examination service at the rate established by contract based upon cost of the examination materials and processing expenses.Variable    Iowa State Specific Land Surveying Examination$30Application for licensure by comity as a professional engineer or professional land surveyor$150Certificates    Initial professional engineer or professional land surveyor certificate$15    Additional or duplicate certificate$25    Engineer or land surveyor intern certificateNo chargeCheck returned for insufficient funds$15Verification of records for lapsed licensees$15 per verification    Late renewal fee (for renewals postmarkedcompleted after December 31 and before February 1January 31)$25

    ITEM 4.    Amend rule 193C—3.1(542B) as follows:

193C—3.1(542B) General statement.  A person requesting to be licensed as a professional engineer or professional land surveyor shall submit a completed, standardized, notarized application form, which may be obtained from the board’s office or electronically from the board’s Internet web page.    3.1(1) Application expiration.  On the examination and comity applications due date, the applications are considered current if it has been one year or less since the applications were received by the board office.    3.1(2) Branch licensure.  A list of engineering branches in which licensure is granted can be obtained from the board’s office. Branches conform to those branches generally included in collegiate curricula. An applicant for licensure in Iowa shall be licensed first in the branch or branches indicated by the applicant’s education and experience. A minimum of 50 percent of the required practical experience in which the individual is to be examined shall have been in that same branch of engineering.    3.1(3) Academic transcripts.      a.    United States institutions.Completion of post-high school education shall be evidenced by the board’s receipt of an applicant’s transcripts directly from the office of the registrar of each institution attendedconferring a qualifying degree.    b.    Institutions outside the United States.Transcripts from institutions located outside the boundaries of the United States of America shall be sent directly from the institution to an evaluation service and shall be evaluated for authenticity and substantial equivalency with Accreditation Board for Engineering and Technology, Inc. (ABET) or Engineering Accreditation Commission (EAC) accredited engineering programs. To be readily acceptable, such evaluations shall be from the National Council of Examiners for Engineering and Surveying (NCEES). However, the board may accept evaluations from other recognized foreign credential evaluators satisfactory to the board. The expense of the evaluation is the responsibility of the applicant. Each evaluation shall be sent directly to the board from the evaluation service and shall include a copy of the transcript in the form sent to the evaluation service directly from the educational institution. Each evaluation must address both whether the transcript is authentic and whether the engineering program is equivalent to those accredited by ABET or EAC.

    ITEM 5.    Amend rule 193C—3.2(542B) as follows:

193C—3.2(542B) Examination applicationApplication components and due dates.      3.2(1) Fundamentals of Engineering examination application components and due dates.  Applications for the Fundamentals of Engineering examination are submitted directly to the examination service selected by the board to administer the examinations.    3.2(2) Fundamentals of Land Surveying examination application components and due dates.  The components of this application include: the completed application form, references pursuant to 193C—paragraph 5.1(5)“b” and transcripts. Fundamentals of Land Surveying examination applications must be submitted to the board office. Applications submitted by the first day of each month will be reviewed by the board at the next regularly scheduled board meeting.    3.2(3) Principles and Practiceof Engineering examination application components and due dates.  Principles and Practice of Engineering and Principles and Practice of Land Surveying examination applications require a detailed review and must, therefore, be submitted to the board office. To facilitate the transition to computer-based testing offered throughout the year, application files with all required components submitted to the board office by the first day of each month will be reviewed at the next regularly scheduled board meeting. The Principles and Practice examination application packet includes the following components: (1) the completed online application form, (2) the required number of references, (3) the project statement, and (4) the ethics questionnaire. In addition, a complete application file must include verification of examination records and transcripts. Examination applications will not be reviewed by the board until the application file is complete. Since the verification of examination records must be sent directly from the jurisdiction where the applicant took the Fundamentals of Engineering examination, the applicant should contact the other jurisdiction well in advance of the deadline for submittal of the application to request this verification. For transcripts, the applicant should contact the university well in advance to ensure that the transcripts are received by the deadlineare submitted directly to the examination service selected by the board. Documentation of a qualifying degree will be required prior to approval to sit for the examination.    3.2(4) Principles and Practice of Land Surveying application components and due dates.  Principles and Practice of Land Surveying examination applications are submitted to the board office. Application files with all required components submitted to the board office by the first day of each month will be reviewed at the next regularly scheduled board meeting. The examination application file includes the following components: (a) the completed online application form, (b) the required number of references, (c) the project statement, and (d) the ethics questionnaire. In addition, a complete application file must include verification of examination records and transcripts. Examination applications will not be reviewed by the board until the application file is complete. Since the verification of examination records must be sent directly from the jurisdiction where the applicant took the Fundamentals of Land Surveying examination, the applicant should contact the other jurisdiction well in advance of the deadline for submittal of the application to request this verification. For transcripts, the applicant should contact the university well in advance to ensure that the transcripts are received by the deadline.    3.2(5) Professional engineer license application.  Professional engineer license applications are submitted to the board office. Application files with all required components submitted to the board office by the first day of each month will be reviewed at the next regularly scheduled board meeting. The professional engineer license application includes the following components: (a) the completed online application form, (b) the required number of references, (c) the project statement, and (d) the ethics questionnaire. In addition, a complete application file must include verification of examination records and transcripts. Professional engineer license applications will not be reviewed until the application file is complete. Since the verification of examination records must be sent directly from the jurisdiction where the applicant took the Fundamentals of Engineering examination, the applicant should contact the other jurisdiction well in advance of the deadline for submittal of the application to request this verification. For transcripts, the applicant should contact the university well in advance to ensure that the transcripts are received by the deadline.

    ITEM 6.    Amend subrule 3.3(1) as follows:    3.3(1)   The components of a comity application include: the completed, notarized application form; the ethics questionnaire; references; transcripts; and verification of examinations, as appropriate. Comity applicants may submit the NCEES record in lieu of providing references, verifications, transcripts, and employment history. Since the verification of examination records must, in most cases, be sent directly from the jurisdiction where the applicant took the Fundamentals of Engineering and Principles and Practice Engineering examinations, the applicant should contact the other jurisdiction in advance of submitting the application to request this verification and make every effort to have the verification sent to the board at the time that the application is submitted. Likewise, for transcripts the applicant should contact the university in advance of submitting the application to make every effort to have the transcripts transmitted to the board at the time that the application is submitted.

    ITEM 7.    Amend subrule 3.4(4) as follows:    3.4(4) Notification of expiration.  The board shall notify licensees whose certificates of licensure have expired. This notification may be provided through publication in the division’s newsletter. The failure of the board to provide this courtesy notification, or the failure of the licensee to receive the courtesy notification, shall not extend the date of expiration.

    ITEM 8.    Amend paragraph 3.4(6)"a" as follows:    a.    Received by the board in paper or electronic form, or postmarked with a nonmetered United States Postal Service postmark on or before the expiration date of the certificatethrough the online renewal process;

    ITEM 9.    Amend subrule 3.5(2) as follows:    3.5(2)   To reinstate a license that has lapsed for less than one year, the applicant for reinstatement must pay the fee required by 193C—2.1(542B) and must satisfy one of the following requirements:    a.    Provide documentation of 30 professional development hours achieved within the current and previous biennium (dual licensees must provide documentation of 20 professional development hours for each profession). Professional development hours used for reinstatement shall not be reused at the next renewal; or    b.    Successfully complete the principles and practice examination within one year immediately prior to application for reinstatement; or    c.    For an applicant for reinstatement who is an out-of-state resident, submit a statement from the resident state’s licensing board as documented evidence of compliance with the resident state’s mandatory continuing education requirement during the period that the licensee’s Iowa license was lapsed. The statement shall bear the seal of the licensing board. An applicant for reinstatement whose resident state has no mandatory continuing education requirement shall comply with the documented evidence requirement as outlined in this subrule and at 193C—subrule 7.8(2).

    ITEM 10.    Amend subrule 3.5(4) as follows:    3.5(4)   To reinstate from inactive status to active status, the applicant for reinstatement must pay the fee required by 193C—2.1(542B) and must provide documentation of 45 professional development hours achieved within the current and previous biennium (dual licensees must provide documentation of 30 professional development hours for each profession).Professional development hours used for a reinstatement shall not be reused at the next renewal.

    ITEM 11.    Amend rule 193C—4.1(542B), introductory paragraph, as follows:

193C—4.1(542B) Requirements for licensure by examination.  The specific requirements for initial licensing in Iowa are established in Iowa Code section 542B.14, and it is the board’s intention to issue initial licensure only when those requirements are satisfied chronologically as set forth in the statute.

    ITEM 12.    Amend subrules 4.1(1) and 4.1(2) as follows:    4 4.1 1(1)   First, the applicant for initial licensure in Iowa must satisfy the educational requirements as follows:    a.    Graduation from an engineering program of four years or more.    (1)   If an applicant did not graduate from an Accreditation Board of Engineering and Technology/Engineering Accreditation Commission (ABET/EAC)- or Canadian Engineering Accreditation Board (CEAB)-accredited curriculum, the applicant must also complete, in addition to the engineering degree, one extra year of practical experience satisfactory to the board after receiving the engineering degree.The experience must be verified by a professional engineer (PE) supervisory reference.    (2)   An engineering technology curriculum does not constitute an engineering program of four years or more.    b.    If an applicant obtained an associate of science degree or a more advanced degree between July 1, 1983, and June 30, 1988, the board shall only require satisfactory completion of a minimum of two years of postsecondary study in mathematics, physical sciences, engineering technology, or engineering at an institution approved by the board and six years of practical experience which, in the opinion of the board, is of satisfactory character to properly prepare the applicant for the Fundamentals of Engineering examination. (Applicants qualifying under this subrule must successfully complete the Fundamentals of Engineering examination by June 30, 2001.)    c.    The educational requirement may be fulfilled by a master’s degree in engineering from an institution in the United States of America which offers an accredited bachelor’s degree in the same curriculum. The master’s degree candidate must be required to fulfill the requirements for the bachelor’s degree in the same area of specialization. An applicant with a master’s degree in engineering from an institution in the United States of America that does not offer an accredited bachelor’s degree in the same curriculum will be required to have an additional year of qualifying experience obtained after receipt of the qualifying degree. Applicants using a master’s degree as the qualifying degree may not also use the master’s degree for qualifying experience credit.    d.    The educational requirement may be fulfilled by a doctor of philosophy degree in engineering from an institution in the United States of America which offers an accredited bachelor’s degree in the same curriculum. The doctoral candidate must be required to fulfill the requirements for the bachelor’s degree in the same area of specialization. An applicant with a doctor of philosophy degree in engineering from an institution in the United States of America that does not offer an accredited bachelor’s degree in the same curriculum will be required to have an additional year of qualifying experience obtained after receipt of the qualifying degree. Applicants using a doctor of philosophy degree as the qualifying degree may not also use the doctor of philosophy degree for qualifying experience credit or as an exemption for the Fundamentals of Engineering examination (FE exam).    4 4.1 1(2)   Second, the applicant must successfully complete the Fundamentals of Engineering examination (FE exam).    a.    An applicant may take the FE exam any time after the educational requirements as specified above are completed, but the applicant must successfully complete the FE exam prior to taking the Principles and Practice of Engineering examination.    b.    College seniors studying an ABET/EAC- or CEAB-accredited curriculum may take the FE exam during the final academic year. Applicants will be permitted to take the examination during the testing period which most closely precedes anticipated graduation.    c.    An applicant who graduated from a satisfactory engineering program and has 10ten years or more of work experience satisfactory to the board shall not be required to take the FE exam.This experience is in addition to the four or five years of experience required for the PE license.    d.    An applicant who has earned a Doctor of Philosophy degree from an institution in the United States of America with an accredited Bachelor of Science engineering degree program in the same discipline, or a similar doctoral degree in a discipline approved by the board, shall not be required to take the FE exam.    e.    All FE exam candidates will apply directly to the National Council of Examiners for Engineering and Surveying (NCEES) and will self-attest as to the candidate’s eligibility to sit for the FE exam. The board will verify acceptable education and experience at the time an applicant applies to sit for the Principles and Practice of Engineering examination or applies for an Engineer Intern (EI)for an Engineer in Training (EIT) number. The board shall apply the education and experience standards set forth in this rule but will allow reasonable flexibility in timing in the event an applicant sat for and passed the FE exam at a point earlier than provided in this rule. The board will not, however, issue an EIEIT number unless all experience required for candidates who hold engineering degrees from nonaccredited programs has been satisfied at the time of the EIEIT application.

    ITEM 13.    Rescind subrule 4.1(3) and adopt the following new subrule in lieu thereof:    4.1(3)   Third, the applicant must successfully complete the Principles and Practice of Engineering examination (PE exam).    a.    An applicant may take the PE exam any time after passing the FE exam.    b.    All PE exam candidates will apply directly to the NCEES. The applicant will be required to document a qualifying education. The board will verify acceptable experience at the time the applicant applies for a professional engineer license.

    ITEM 14.    Rescind subrule 4.1(4) and adopt the following new subrule in lieu thereof:    4.1(4)   Fourth, the applicant must satisfy the qualifying experience requirements. The purpose of this provision is to ensure that the applicant has acquired the professional judgment, capacity, and competence to design engineering works, structures, and systems. The following criteria will be considered by the board in determining whether an applicant’s experience satisfies the statutory requirements.    a.    Oversight.All applicants must have direct supervision or professional tutelage (instruction, guidance, mentoring, review, and critique) from one or more licensed professional engineers. This experience must be verified by one or more licensed professional engineers who are familiar with the applicant’s work and can attest that the experience was of the required quality and was accurately described. Verification of the qualifying experience is provided through the reference forms. It is the responsibility of the applicant to provide reference forms to the licensed professional engineers to complete and return directly to the board.    (1)   To be readily acceptable, all of the qualifying experience shall be under the direct supervision and tutelage of one or more licensed professional engineers.    (2)   To be considered, a portion of the qualifying experience shall be under the direct supervision or tutelage of one or more licensed professional engineers. In this case, the rest of the qualifying experience shall be under the direct supervision or tutelage of an unlicensed graduate engineer.    b.    Documentation of experience.All applicants must submit references and a work project description. The board reserves the right to contact the employer and the person providing tutelage on the project for information about the project experience acquired by the applicant.    (1)   References. An applicant for the professional engineer license shall submit three references from professional engineers or a combination of professional engineers and graduate engineers on forms provided by the board.    1.   At least one of the licensed professional engineers who provide a reference for the applicant shall have provided direct supervision or professional tutelage in the course of a mentoring relationship on such matters as technical skills; professional development; the exercise of professional judgment, ethics, and standards in the application of engineering principles and in the review of such matters by others; and the professional obligations of assuming responsible charge of professional engineering works and services.    2.   If the applicant has had more than one supervisor, at least two of the references shall be from a supervisor of the applicant. An applicant shall submit supervisor references to verify at least four years of qualifying experience.    3.   If an applicant has had professional experience under more than one employer, the applicant shall provide references from individuals with knowledge of the work performed under a minimum of two employers.    4.   The board reserves the right to contact references, supervisors, or employers for information about the applicant’s professional experience and competence or to request additional references.     5.   The board uses references partially as a means of verifying an applicant’s record of experience. The applicant must distribute a reference form to individuals who are asked to submit references for the applicant. To each reference form, the applicant shall attach a narrative of the applicant’s experience record that is being addressed by the referring individual.    6.   The board may require the applicant to submit other evidence of suitable tutelage and supervision.    7.   The board may require an oral interview with the applicant or other evidence to verify the applicant’s knowledge and experience in the principles and practice of engineering.    8.   The board may conduct interviews with persons providing tutelage or supervision to the applicant.    (2)   Work project description. An applicant for initial licensure as a professional engineer must include with the application a work project statement describing a significant project on which the applicant worked during the previous 12 months. The board will review all work project statements and will approve only those that include all of the components listed below in numbered paragraphs 4.1(4)“b”(2)“1” to “4” and meet the criteria listed in numbered paragraph 4.1(4)“b”(2)“5.”    1.   The statement shall describe the applicant’s degree of responsibility for the project.    2.   The statement shall identify the project’s owner and location.    3.   The statement shall include the name of the supervisor in charge of the project and, if the supervisor is a professional engineer, the license number of the supervisor.    4.   The statement shall be signed and dated by the applicant.    5.   Criteria the board shall use in evaluating the acceptability of the project as qualifying experience for the applicant shall include, but not be limited to, the following:
  • The degree to which the project and the experience described have progressed from assignments typical of initial assignments to those more nearly expected of a licensed professional;
  • The scope and quality of the professional tutelage experienced by the applicant;
  • The technical decisions required of the applicant in the project; and
  • The professional decisions required of the applicant.
  •     c.    Quality.Qualifying experience shall be of such quality as to demonstrate that the applicant has developed technical skill and initiative in the correct application of engineering principles. Such experience should demonstrate the applicant’s capacity to review the application of these principles by others and to assume responsibility for engineering work of professional character.    d.    Scope.Experience shall be of sufficient breadth and scope to ensure that the applicant has attained reasonably well-rounded professional competence in a basic engineering field, rather than highly specialized skill in a narrow and limited field.    e.    Progression.The record of experience shall indicate successive and continued progress from initial, subprofessional work of simpler character to recent, professional work of greater complexity and a higher degree of responsibility, as well as continued interest and effort on the part of the applicant toward further professional development and advancement. In evaluating this progression, the board will consider both subprofessional and professional activity as reported by the applicant. However, only work experience obtained after the applicant’s receipt of the qualifying degree will be considered, except as described in paragraph 4.1(4)“f.” Subprofessional work includes the time spent as an engineering technician, engineering assistant, inspector, or similar under the direct supervision of a licensed professional engineer. Professional work includes the time during which the applicant was occupied in engineering work of higher grade and responsibility than that defined above as subprofessional work. Time spent in teaching engineering subjects in a college or university at the level of assistant professor or higher may be listed as professional work.    f.    Special work experience.Work experience prior to graduation from college may be accepted toward satisfaction of qualifying experience requirements only as follows: Cooperative work programs and internships administered by engineering colleges and verified on the transcript, with a verifying reference from the internship supervisor will be considered as half-time credit, with a maximum allowance of 6 months (12 months of cooperative work experience or internship) applicable toward the satisfaction of qualifying experience requirements. An applicant’s advanced education, military experience, or both will be reviewed in order to determine if they are applicable toward the statutory requirements for experience.    g.    Advanced education.An applicant who has earned a master of science degree that includes research experience, in addition to writing an associated thesis, from an institution in the United States of America with an accredited bachelor of science engineering degree program in the same discipline and who has fulfilled the requirements for a bachelor of science degree may be granted a maximum of one year’s experience credit. An applicant who has earned a doctor of philosophy degree from an institution in the United States of America with an accredited bachelor of science engineering degree program in the same discipline may be granted a maximum of two years of experience credit in addition to the one-half year’s credit for the master of science degree. An applicant using an advanced degree as experience credit shall not be allowed to also use the advanced degree as the qualifying degree to become licensed.    h.    Teaching experience.Teaching of engineering subjects at the level of assistant professor or higher in an accredited engineering program may be considered as experience, provided the applicant’s immediate supervisor is a licensed professional engineer in the jurisdiction in which the college or university is located. If the applicant’s immediate supervisor is not a licensed professional engineer, a program of mentoring or peer review by a licensed professional engineer acceptable to the board must be demonstrated. Applicants using teaching or research as experience must have a minimum of four years of acceptable experience in research, industry, or consulting. The board shall consider the complexity of the project(s) presented, the degree of responsibility of the applicant within the project, and other factors the board deems relevant. Academic experience must demonstrate increasing levels of responsibility for the conduct and management of projects involving engineering research, development, or application. The board reserves the right to contact employers for information about the applicant’s professional experience and competence.    i.    Joint applications.Applicants requesting licensure both as a professional engineer and a land surveyor must submit a history of professional experience in both fields. Such histories will be considered separately on a case-by-case basis. The board does not grant full credit for concurrent experience in both professions.    j.    Corporate exemption.The purpose of the provisions on qualifying experience which authorize the board to consider some experience that was not acquired under the direct supervision and tutelage of a licensed professional engineer is to provide a path toward licensure for those applicants who gain experience in settings where licensure is not required under the corporate exemption set forth in Iowa Code section 542B.26 or under similar statutory provisions in other jurisdictions. Such applicants may lawfully gain professional engineering experience under the supervision or tutelage of graduate engineers who are not licensed. To aid such applicants, the following guidelines are provided:    (1)   The board shall not consider any experience gained under circumstances where the applicant could not lawfully have practiced professional engineering.    (2)   The board shall not consider any experience the applicant may have attained in compliance with the law but that was not under the supervision or tutelage of a graduate engineer. The fundamental purpose of qualifying experience is professionally guided training to expand and complement engineering education. Self-guided experience does not qualify.    (3)   Persons who desire licensure as professional engineers who are not directly supervised by licensed professional engineers should form tutelage relationships with licensed professional engineers as early in the process of gaining experience as is feasible. Unlicensed graduate engineers are not authorized to offer professional engineering services to the public or to be in responsible charge of such services; nor are they subject to the examinations required for licensure, the professional and ethical standards applicable to licensees, or the regulatory oversight of a licensing authority. Qualifying experience is intended to address both technical competence and the obligations to the public of a licensed professional engineer.    (4)   Because the circumstances of individual applicants in corporate exemption settings are diverse, it is not possible to identify the minimum period of time during which the applicant must receive supervision or tutelage from one or more licensed professional engineers to be eligible for licensure. The board shall take into consideration both the quantity and quality of such experience. In general, an applicant’s exposure to supervision or tutelage by one or more licensed professional engineers should reflect a sustained period of in-depth interaction from which the licensed engineers are in a position to form credible opinions on the applicant’s qualifications to be in responsible charge of engineering services offered to the public as a licensed professional engineer.    (5)   The burden is on the applicant to demonstrate to the board’s satisfaction that the combination of unlicensed and licensed supervision and tutelage satisfies the requirements of qualifying experience described in this rule.    k.    Practical experience.An applicant for a professional engineer license shall have a minimum of one year of practical experience in the United States of America or a territory under its jurisdiction.

        ITEM 15.    Rescind subrule 4.1(5) and adopt the following new subrule in lieu thereof:    4.1(5) Education and experience requirements.  The board will require the minimum number of years set forth on the following chart before an applicant will be eligible for licensure.Experience RequirementsIf the education is:Required years of experienceA 4-year bachelor’s degree in a nonaccredited engineering program5A 4-year bachelor’s degree in an accredited engineering program OR a qualifying master’s degree pursuant to paragraph 4.1(1)“c” OR a qualifying PhD pursuant to paragraph 4.1(1)“d”4A 4-year bachelor’s degree in an accredited engineering program plus a qualifying master’s degree pursuant to paragraph 4.1(4)“g”3A 4-year bachelor’s degree in an accredited engineering program plus a qualifying PhD pursuant to paragraph 4.1(4)“g”2A 4-year bachelor’s degree in an accredited engineering program AND a qualifying master’s degree AND a qualifying PhD pursuant to paragraph 4.1(4)“g”1

        ITEM 16.    Amend subrule 7.5(6) as follows:    7.5(6)   A new licensee shall satisfy one-half the biennial continuing education requirement at the first renewal following initial licensure.A comity license is not an initial license. Professional engineers and professional land surveyors licensed by comity are not eligible for the one-half continuing education requirement.
    ARC 5832CHuman Services Department[441]Notice of Intended Action

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

        The Human Services Department hereby proposes to amend Chapter 109, “Child Care Centers,” Chapter 110, “Child Development Homes,” and Chapter 120, “Child Care Homes,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code chapter 237A.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 237A.3 and 2021 Iowa Acts, House File 260.Purpose and Summary    These proposed amendments are implementing 2020 Iowa Acts, House File 260, which was enacted in the 2021 Legislative Session. The proposed amendments increase the number of children allowed at any one time in a nonregistered child care home to six or fewer if at least one of the children is school-aged. The number of children allowed to be cared for at any one time in a registered child development home is increasing from six or more to seven or more.    In addition, the Department is simplifying regulatory requirements by removing the definition of “part-time hours.” The rules are also updated to reduce the paperwork burden for providers by limiting the information needed in provider files to verify professional development requirements.     The requirement for preinspection of a private sewage disposal system prior to the opening of a child development home or child care home with a private sewage disposal system and for reinspection every two years, which can cause burdens to rural providers, is removed in collaboration with Department of Natural Resources staff.    The rules are updated to be in compliance with the Iowa Department of Public Health (IDPH) rules concerning lead paint remediation.     References to breast milk are removed from rule language regarding infectious disease control because breast milk is not a bodily fluid covered under universal precaution procedures for infectious diseases.    The requirements of the child care provider physical health form are simplified to require that reports be completed for all providers and for all members of a provider’s household who are 18 years of age or older.     The proposed amendments align the process for permission for children to attend activities away from a child development home or child care home with the current process for permission for children to attend activities away from a child care center.    The proposed amendments also simplify ratios in child development homes without increasing the total capacity and increase the number of infants allowed to be served in a home with two providers.     The proposed amendments remove language regarding substitutes in child care centers as substitutes are considered child care facility staff under federal rules and fall under the same requirements as other staff. 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, but the proposed amendments may assist in maintaining the number of existing child care home providers.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 441—1.8(17A,217).Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Department no later than 4:30 p.m. on August 31, 2021. Comments should be directed to: Nancy Freudenberg Department of Human Services Hoover State Office Building, Fifth Floor 1305 East Walnut Street Des Moines, Iowa 50319-0114 Email: appeals@dhs.state.ia.us Public Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Amend paragraph 109.2(3)"a" as follows:    a.    A provisional license may be issued or a previously issued license may be reduced to a provisional license for a period up to one year when the center does notsufficiently meet all standards imposed by law and these rules.

        ITEM 2.    Amend subrule 109.6(5) as follows:    109.6(5) Volunteers and substitutes.  A volunteer shall be at least 16 years of age. All volunteers and substitutes shall:    a.    Sign a statement indicating whether or not they have one of the following:    (1)   A conviction of any law in any state or any record of founded child abuse or dependent adult abuse in any state.    (2)   A communicable disease or other health concern that could pose a threat to the health, safety, or well-being of the children.    b.    Sign a statement indicating the volunteer or substitute has been informed of the volunteer’s or substitute’s responsibilities as a mandatory reporter.    c.    Undergo the record check process when any of the following criteria are met:    (1)   The volunteer or substitute is included in meeting the required child-to-staff ratio;    (2)   The volunteer or substitute has direct responsibility for a child or children; or    (3)   The volunteer or substitute has access to a child or children with no other staff present.    d.    Have on file at the facility a record containing the statements required in paragraphs 109.6(5)“a” and “b” and documentation of any record check process. The record shall be maintained as required in paragraph 109.9(1)“b.”

        ITEM 3.    Amend subparagraph 109.6(6)"a" as follows:    (1)   Criminal and child abuse record checks shall be conducted for:
    1. Each owner, director, staff member, substitute, volunteer, or subcontracted staff person with direct responsibility for child care or with access to a child when the child is alone;
    2. Anyone living in the child care facility who is 14 years of age or older.

        ITEM 4.    Amend subparagraph 109.7(1)"e" as follows:    (10)   Child development, on or after August 1, 2017.

        ITEM 5.    Rescind paragraph 109.7(2)"d".

        ITEM 6.    Amend subparagraph 109.7(3)"e" as follows:    (10)   Child development, on or after August 1, 2017.

        ITEM 7.    Amend subrule 109.7(6) as follows:    109.7(6) Approved training.      a.    The training must be conducted by a trainer who is employed by or under contract with one of the following entities or who uses curriculum or training materials developed or obtained with the written permission of one of the following entities:    (1)   An accredited university or college.    (2)   A community college.    (3)   Iowa State University Extension.    (4)   A child care resource and referral agency.    (5)   An area education agency.    (6)   The regents’ center for early developmental education at the University of Northern Iowa.    (7)   A hospital (for health and safety, first-aid, and CPR training).    (8)   The American Red Cross, the American Heart Association, the National Safety Council, or Medic First Aid (for first-aid and CPR training).    (9)   An Iowa professional association, including the Iowa Association for the Education of Young Children (Iowa AEYC), the Iowa Family Child Care Association (IFCCA), the Iowa After School Alliance, and the Iowa Head Start Association.    (10)   A national professional association, including the National Association for the Education of Young Children (NAEYC), the National Child Care Association (NCCA), the National Association for Family Child Care (NAFCC), the National After School Association, and the American Academy of Pediatrics.    (11)   The Child and Adult Care Food Program and the Special Supplemental Nutrition Program for Women, Infants and Children (WIC).    (12)   The Iowa department of public health, department of education, or department of human services.    (13)   Head Start agencies or the Head Start technical assistance system.    (14)   Organizations that are certified by the International Association for Continuing Education and Training (IACET).    b.    Training received in a group setting must follow a presentation format that incorporates a variety of adult learning methods. The material or content of the training must be obtained from one of the entities listed in paragraph “a” or an entity approved under paragraph “g.” Approved training shall be made available to Iowa child care providers through the child care provider training registry beginning July 1, 2009.    c.    Training received in a group setting may include distance learning opportunities such as training conducted over the Iowa communications network, on-line courses, or web conferencing (webinars) if:     (1)   The training meets the requirements in subrule 109.7(7);    (2)   The training is taught by an instructor and requires interaction between the instructor and the participants, such as required chats or message boards; and    (3)   The training organization meets the requirements listed in this subrule or is approved by the department.    d.    b.    The department will not approve more than eight hours of training delivered in a single day.    e.    c.    The department may randomly monitor any state-approved training for quality control purposes.    f.    d.    Training conducted with staff either during the hours of operation of the facility,during staff lunch hours, or while children are resting must not diminish the required staff ratio coverage. Staff shall not be actively engaged in care and supervision and simultaneously participate in training.    g.    e.    A training organization not approved by the department may submit for review to the department a request for child care training approval. All approvals, unless otherwise specified, shall be valid for five years. The department shall issue its decision within 30 business days of receipt of a complete request.

        ITEM 8.    Amend paragraph 109.9(1)"d" as follows:    d.    A physical examination report. Personnel shall have good health as evidenced by a preemployment physical examination. Acceptable physical examinations shall be documented on Form 470-5152, Child Care Provider Physical Examination Report. The examination shall include any necessary testing for communicable diseases; shall include a discussion regarding current Advisory Committee on Immunization Practices (ACIP)-recommended vaccinations; shall be performed within six months prior to beginning employment by a licensed medical doctor, doctor of osteopathy, physician assistant or advanced registered nurse practitioner; and shall be repeated at least every three years.

        ITEM 9.    Amend subrule 109.10(5) as follows:    109.10(5) Infectious disease control.  Centers shall establish policies and procedures related to infectious disease control and the use of universal precautions with the handling of any bodily excrement or discharge, includingor blood and breast milk. Soiled diapers shall be stored in containers separate from other waste.

        ITEM 10.    Amend paragraphs 109.10(16)"a" and 109.10(16)"b" as follows:    a.    The center director and on-site supervisor shall ensure that each staff member, substitute, or volunteer knows the number and names of children assigned to that staff member, substitute, or volunteer for care. Assigned staff, substitutes, and volunteers shall provide careful supervision.     b.    Any person in the center who is not an owner, staff member, substitute, or volunteer who has a record check and department approval to be involved with child care shall not have unrestricted access to children for whom that person is not the parent, guardian, or custodian.

        ITEM 11.    Amend paragraphs 109.11(7)"a" and 109.11(7)"b" as follows:    a.    Within one year of being issued an initial or renewal license, centers operating in facilities built prior to 19601978 shall conduct a visual assessment for lead hazards that exist in the form of peeling, cracking or chipping paintor painted surfaces in need of repair. If the presence of peeling or chipping paint isthese lead hazards are found, the paint shall be presumed to be lead-based paint unless a certified inspector as defined in department of public health rules at 641—Chapter 70 determines that it is not lead-based paintit shall be assumed that lead-based paint is present on the surfaces, and the surfaces shall be repaired by an Iowa certified lead-safe renovator before a full license will be issued. If the presence of peeling or chipping paint is found, interim controls using safe work methods as defined by the state department of public health shall be accomplished prior to a full license being issued.    b.    Within one year of being issued an initial or renewal license, centers operating in facilities that are at ground level, use a basement area as program space, or have a basement beneath the program area shall have radon testing performed as prescribed by the state department of public health at 641—Chapter 43. Testing shall be required if test kits are available from the local health department or the Iowa Radon Coalition. Retesting shall be accomplished at least every two years from the date of the initial measurement if test kits are available from the local health department or the Iowa Radon Coalition. If testing determines confirmed radon gas levels in excess of 4.0 picocurie per liter, a plan using radon mitigation procedures established by the state department of public health shall be developed with and approved by the state department of public health prior to a full license being issued.

        ITEM 12.    Amend rule 441—110.1(237A), definitions of “Child care home” and “Child development home,” as follows:        "Child care home" means a person or program providing child care to five or fewerany of the following children at any one time that is not registered to provide child care under this chapter, as authorized under Iowa Code section 237A.3.:
    1. Five or fewer children.
    2. Six or fewer children, if at least one of the children is school-aged.
            "Child development home" means a person or program registered under this chapter that may provide child care to sixseven or more children at any one time.

        ITEM 13.    Rescind the definition of “Part-time hours” in rule 441—110.1(237A).

        ITEM 14.    Amend rule 441—110.3(237A) as follows:

    441—110.3(237A) Renewal of registration.  Renewal of registration shall be completed every 24 months. To request renewal, a provider shall submit Form 470-3384, Application for Child Development Home Registration, and copies of certificates of training, which shall be retained in the registration filetraining completion evidence either through certificates or as updated in Iowa’s early childhood and school age professional workforce registry (i-PoWeR). The registration renewal process shall include completion of child abuse, sex offender, and criminal record checks.

        ITEM 15.    Amend paragraphs 110.8(1)"j" and 110.8(1)"k" as follows:    j.    Homes served bya private sewer systemssewage disposal system shall be in compliance with discharge restrictions identified at 567—Chapter 69operated and maintained to ensure the system is properly treating the wastewater and not creating an unsanitary condition in the environment. Discharge of untreated waste water from private sewage disposal systems is prohibited. Compliance shall be verified by the local board of health at the time of registration renewal and new registration.Concerns about noncompliance shall be referred to the local county sanitarian.    k.    A provider operating in a facility built before 19601978 shall assess and control lead hazards before being issued an initial child development home registration or a renewal of the registration. To comply with this requirement, the provider shall:    (1)   Conduct a visual assessment of the facility for lead hazards that exist in the form of chipping or peeling paint;Determine if painted surfaces on the interior or exterior of the facility are chipping, peeling, or cracking or in need of repair. Painted surfaces include walls, ceilings, windows, doors, stairs, and woodwork; and    (2)   ApplyIf painted surfaces are in need of repair, hire an Iowa certified lead-safe renovator to make repairs or take training to become an Iowa certified lead-safe renovator. Iowa lead-safe renovators shall apply interim controls on any chipping, or peeling, or cracking paint found, using lead-safe work methods in accordance with and as defined by department of public health rules at 641—Chapters 69 and 70, unless a certified inspector as defined in 641—Chapter 70 determines that the paint is not lead-based paint; and.    (3)   Submit Form 470-4755, Lead Assessment and Control, as verification of the visual assessment and completion of interim controls, if necessary.

        ITEM 16.    Amend subrule 110.8(3) as follows:    110.8(3) Medications and hazardous materials.      a.    All medicines and poisonous, toxic, or otherwise unsafe materials shall be secured from access by a child.    b.    A first-aid kit shall be available and easily accessible whenever children are in the child development home, in the outdoor play area, in vehicles used to transport children, and on field trips. The kit shall be sufficient to address first aid related to minor injury or trauma and shall be stored in an area inaccessible to children. The kit shall, at a minimum, include adhesive bandages, bottled water, disposable tweezers, and disposable plastic gloves.    c.    Medications shall be given only with the parent’s or doctor’s written authorization. Each prescribed medication shall be accompanied by a physician’s or pharmacist’s direction. Both nonprescription and prescription medications shall be in the original container with directions intact and labeled with the child’s name. All medications shall be stored properly and, when refrigeration is required, shall be stored in a separate, covered container so as to prevent contamination of food or other medications. All medications shall be stored so they are inaccessible to children. Any medication administered to a child shall be recorded, and the record shall indicate the name of the medication, the date and time of administration, and the amount administered.    d.    All new providers and providers renewing registrations after September 30, 2016, shall not provide medications to a child if the provider has not completed preservice/orientation training that includes medication administration.    e.    d.    The provider shall establish procedures related to infectious disease control and handling of any bodily excrement or discharge, includingor blood and breast milk. Soiled diapers shall be stored in containers separate from other waste.

        ITEM 17.    Amend subrule 110.9(1) as follows:    110.9(1)   A provider file shall be maintained and shall contain the following:    a.    A physical examination report. Providers and all members of a provider’s household over the age of 12aged 18 years or older shall have good health as evidenced by a preregistration physical examination. Acceptable physical examinations shall be documented on Form 470-5152, Child Care Provider Physical Examination Report. The physical examination shall include any necessary testing for communicable diseases; shall include a discussion regarding current Advisory Committee on Immunization Practices (ACIP)-recommended vaccinations; shall be performed by a licensed medical doctor, doctor of osteopathy, physician assistant or advanced registered nurse practitioner within six months prior to the provider’s registration; and shall be repeated at least every three years. All children residing in the household who are 12 years of age or younger must have the medical documentation outlined in paragraphs 110.9(4)“d,”“f,” and “g.”    b.    Certificates or other documentation from the department verifying the following:I-PoWeR records or certificates verifying required training completion as set forth in subrule 110.10(1).    (1)   Required training as set forth in subrule 110.10(1).    (2)   Completion of all record checks as required in subrule 110.11(3), at initial application, at each application for change, and at each application for renewal.

        ITEM 18.    Amend subrule 110.9(4) as follows:    110.9(4) Children’s files.  An individual file for each child shall be maintained and updated annually or when the provider becomes aware of changes. The file shall contain:    a.    Identifying information including, at a minimum, the child’s name and birth date; the parent’s name, address and telephone number; special needs of the child; and the parent’s work address and telephone number.    b.    Emergency contact information including, at a minimum, where the parent can be reached, the name, street address, city and telephone number of the child’s regular source of health care, and the name, telephone number, and relationship to the child of another adult available in case of emergency.    c.    A signed medical consent from the parent authorizing emergency medical and dental treatment.    d.    An admission physical examination report signed by a licensed physician or a designee in a clinic supervised by a licensed physician.    (1)   The date of the physical examination shall not be more than 12 months before the child’s first day of attendance at the child development home.    (2)   The written report shall include the child’s past health history, status of the child’s present health, allergies and restrictive conditions, and recommendations for continued care when necessary.    (3)   For a child who is five years of age or older and enrolled in school, a statement of health status signed by the parent or legal guardian may be substituted for the physical examination report.    (4)   The examination report or statement of health status shall be on file before the child’s first day of care.    e.    AFor children under the age of six, a statement of health condition signed by a physician or designee and submitted annually from the date of the admission physical examination. For a child who is five years of age or older and enrolled in school, a statement of health status signed by the parent or legal guardian may be substituted for the physician statement.    f.    For each school-age child, on the first day of attendance, documentation of a physical examination that was completed at the time of school enrollment or since.    g.    A signed and dated immunization certificate provided by the Iowa department of public health. For the school-age child, a copy of the most recent immunization record shall be acceptable.    h.    For any child with allergies, a written emergencycare plan in case of an allergic reaction. A copy of this information shall accompany the child if the child leaves the premises.    i.    A listDocumentation that is signed by the parent and names persons authorized to pick up the child. The authorization shall include the name, telephone number, and relationship of the authorized person to the child.    j.    Written permission from the parent for the child to attend activities away from the child development home. The permission shall include:    (1)   Times of departure and arrival.    (2)   Destination.    (3)   Names of persons who will be responsible for the child.    k.    Injury report forms documenting injuries requiring first aid or medical care.    l.    If the child meets the definition of homelessness as defined by Section 725(2) of the McKinney-Vento Homeless Education Assistance Act, the family shall receive a 60-day grace period to obtain medical documentation.

        ITEM 19.    Amend subrule 110.10(2) as follows:    110.10(2) Approved training.      a.    The training must be conducted by a trainer who is employed by or under contract with one of the following entities or who uses curriculum or training materials developed by or obtained with the written permission of one of the following entities:    (1)   An accredited university or college.    (2)   A community college.    (3)   Iowa State University Extension.    (4)   A child care resource and referral agency.     (5)   An area education agency.    (6)   The regents’ center for early developmental education at the University of Northern Iowa.     (7)   A hospital (for health and safety, first-aid, and CPR training).    (8)   The American Red Cross, American Heart Association, National Safety Council, American Safety and Health Institute or MEDIC First Aid (for first-aid and CPR training).    (9)   An Iowa professional association, including the Iowa Association for the Education of Young Children (Iowa AEYC), the Iowa Family Child Care Association (IFCCA), the Iowa After School Alliance, and the Iowa Head Start Association.    (10)   A national professional association, including the National Association for the Education of Young Children (NAEYC), the National Child Care Association (NCCA), the National Association for Family Child Care (NAFCC), the National After School Association, and the American Academy of Pediatrics.    (11)   The Child and Adult Care Food Program (CACFP) and the Special Supplemental Nutrition Program for Women, Infants and Children (WIC).    (12)   The Iowa department of public health, department of education, or department of human services.    (13)   Head Start agencies or the Head Start technical assistance system.    (14)   Organizations that are certified by the International Association for Continuing Education and Training (IACET).    b.    Training received in a group setting must follow a presentation format that incorporates a variety of adult learning methods. The material or content of the training must be obtained from one of the entities listed in paragraph 110.10(2)“a” or an entity approved under paragraph 110.10(2)“h.    c.    b.    Approved training shall be made available to Iowa child care providers through the child care provider training registryi-PoWeR.    d.    Training received in a group setting may include distance learning opportunities, such as training conducted over the Iowa communications network, online courses, or web conferencing (webinars) if:    (1)   The training meets the requirements in subrule 110.10(3);    (2)   The training is taught by an instructor and requires interaction between the instructor and the participants, such as required chats or message boards; and    (3)   The training organization meets the requirements listed in this subrule or is approved by the department.    e.    c.    The department will not approve more than eight hours of training delivered in a single day.    f.    d.    The department may randomly monitor any state-approved training for quality control purposes.    g.    e.    Training conducted with the provider either during the hours of operation of the facility,during provider lunch hours, or while children are resting must not diminish the required ratio coverage. The provider shall not be actively engaged in care and supervision and simultaneously participate in training.    h.    f.    A training organization not approved by the department may submit a request for review to the department on Form 470-4528, Request for Child Care Training Approval. All approvals, unless otherwise specified, shall be valid for five years. The department shall issue its decision within 30 business days of receipt of a complete request.

        ITEM 20.    Amend paragraphs 110.13(1)"b" and 110.13(1)"c" as follows:    b.    Of these six children, no more than four children who are 24 months of age or younger shall be present at any one time. Of these four children, no more than three may be 1812 months of age or younger.    c.    In addition to the six children not in school, no more than two children who attend school may be present for a period of less than two hours at a time.

        ITEM 21.    Amend subrule 110.14(1) as follows:    110.14(1) Limits on number of children in care.      a.    No more than sixeight children not attending kindergarten or a higher grade level shall be present at any one time.    b.    Of these sixeight children, no more than four children who are 24 months of age or younger shall be present at any one time. Of these four children, no more than three may be 1812 months of age or younger.    c.    In addition to the sixeight children not in school, no more than four children who attend school may be present.    d.    In addition to these ten children, no more than two children who are receiving care on a part-time basis may be present.    e.    d.    No more than 12 children shall be present at any one time when an emergency school closing is in effect.    f.    e.    If more than eight children are present at any one time for a period of more than two hours, the provider shall be assisted by a department-approved assistant who is at least 14 years old, unless extra children are present as a result of an emergency school closing.

        ITEM 22.    Amend subrule 110.15(1) as follows:    110.15(1) Limits on number of children in care.      a.    No more than 12 children not attending kindergarten or a higher grade level shall be present at any one time.    b.    Of these 12 children, no more than foursix children who are 24 months of age or younger shall be present at any one time. Whenever four children who are under the age of 1812 months are in care, both providers shall be present.    c.    In addition to the 12 children not in school, no more than twofour children who attend school may be present for a period of less than two hours at any one time.    d.    In addition to these 14 children, no more than two children who are receiving care on a part-time basis may be present.    e.    d.    No more than 16 children shall be present at any one time when an emergency school closing is in effect.     f.    e.    If more than eight children are present, both providers shall be present. Each provider shall meet the provider qualifications for child development home category C.

        ITEM 23.    Amend rule 441—120.1(237A), definitions of “Child care home” and “Child development home,” as follows:        "Child care home" means a person or program providing child care to five or fewerany of the following children at any one time that is not registered to provide child care under this chapter, as authorized under Iowa Code section 237A.3.:
    1. Five or fewer children.
    2. Six or fewer children, if at least one of the children is school-aged.
            "Child development home" means a person or program registered under this chapter that may provide child care to sixseven or more children at any one time.

        ITEM 24.    Amend rule 441—120.3(237A) as follows:

    441—120.3(237A) Renewal of agreement.  Renewal of the child care assistance provider agreement shall be completed every 24 months. To request renewal, a provider shall submit Form 470-2890, Payment Application for Nonregistered Providers, and copies of certificates of training, which shall be retained in the filetraining completion evidence either through certificates or as updated in Iowa’s early childhood and school age professional workforce registry (i-PoWeR). The agreement renewal process shall include completion of child abuse, sex offender, and criminal record checks.

        ITEM 25.    Amend paragraphs 120.8(1)"j" and 120.8(1)"k" as follows:    j.    Homes served bya private sewer systemssewage disposal system shall be in compliance with discharge restrictions identified at 567—Chapter 69operated and maintained to ensure the system is properly treating the wastewater and not creating an unsanitary condition in the environment. Discharge of untreated waste water from private sewage disposal systems is prohibited. Compliance shall be verified by the local board of health at the time of renewal of the child care assistance provider agreement and new application.Concerns about noncompliance shall be referred to the local county sanitarian.    k.    A provider operating in a facility built before 19601978 shall assess and control lead hazards before being issued an initial child care assistance provider agreement or a renewal of the provider agreement. To comply with this requirement, the provider shall:    (1)   Conduct a visual assessment of the facility for lead hazards that exist in the form of chipping or peeling paint;Determine if painted surfaces on the interior or exterior of the facility are chipping, peeling, or cracking or in need of repair. Painted surfaces include walls, ceilings, windows, doors, stairs, and woodwork; and    (2)   ApplyIf painted surfaces are in need of repair, hire an Iowa certified lead-safe renovator to make repairs or take training to become an Iowa certified lead-safe renovator. Iowa lead-safe renovators shall apply interim controls on any chipping, or peeling, or cracking paint found, using lead-safe work methods in accordance with and as defined by department of public health rules at 641—Chapters 69 and 70, unless a certified inspector as defined in 641—Chapter 70 determines that the paint is not lead-based paint; and.    (3)   Submit Form 470-4755, Lead Assessment and Control, as verification of the visual assessment and completion of interim controls, if necessary.

        ITEM 26.    Amend paragraph 120.8(3)"e" as follows:    e.    The provider shall establish procedures related to infectious disease control and handling of any bodily excrement or discharge, includingor blood and breast milk. Soiled diapers shall be stored in containers separate from other waste.

        ITEM 27.    Amend subrule 120.9(2) as follows:    120.9(2)   The file shall contain:    a.    Identifying information including, at a minimum, the child’s name and birth date; the parent’s name, address and telephone number; the special needs of the child; and the parent’s work address and telephone number.    b.    Emergency contact information including, at a minimum, where the parent can be reached, the name, street address, city and telephone number of the child’s regular source of health care, and the name, telephone number, and relationship to the child of another adult available in case of emergency.    c.    A signed medical consent from the parent authorizing emergency medical and dental treatment.    d.    An admission physical examination report signed by a licensed physician or the designee in a clinic supervised by a licensed physician.    e.    AFor children under the age of six, a statement of health condition signed by a physician or designee submitted annually from the date of the admission physical examination. For a child who is five years of age or older and enrolled in school, a statement of health status signed by the parent or legal guardian may be substituted for the physician statement.    f.    A listDocumentation that is signed by the parent and names persons authorized to pick up the child. The authorization shall include the name, telephone number, and relationship of the authorized person to the child.    g.    A signed and dated immunization certificate provided by the Iowa department of public health. For the school-age child, a copy of the most recent immunization record shall be acceptable.    h.    For any child with allergies, a written emergency plan in case of an allergic reaction. A copy of this information shall accompany the child if the child leaves the premises.    i.    Written permission from the parent for the child to attend activities away from the child care home. The permission shall include:    (1)   Times of departure and arrival.    (2)   Destination.    (3)   Names of persons who will be responsible for the child.    j.    If the child meets the definition of homelessness as defined by Section 725(2) of the McKinney Vento Homeless Education Assistance Act, the family shall receive a 60-day grace period to obtain medical documentation.

        ITEM 28.    Amend subrule 120.10(7) as follows:    120.10(7)   Approved training.    a.    The training must be conducted by a trainer who is employed by or under contract with one of the following entities or who uses curriculum or training materials developed by or obtained with the written permission of one of the following entities:    (1)   An accredited university or college.     (2)   A community college.     (3)   Iowa State University Extension.     (4)   A child care resource and referral agency.     (5)   An area education agency.     (6)   The regents’ center for early developmental education at the University of Northern Iowa.     (7)   A hospital (for health and safety, first-aid, and CPR training).     (8)   The American Red Cross, American Heart Association, National Safety Council, American Safety and Health Institute or MEDIC First Aid (for first-aid and CPR training).     (9)   An Iowa professional association, including the Iowa Association for the Education of Young Children (Iowa AEYC), the Iowa Family Child Care Association (IFCCA), the Iowa After School Alliance, and the Iowa Head Start Association.     (10)   A national professional association, including the National Association for the Education of Young Children (NAEYC), the National Child Care Association (NCCA), the National Association for Family Child Care (NAFCC), the National After School Association, and the American Academy of Pediatrics.     (11)   The Child and Adult Care Food Program (CACFP) and the Special Supplemental Nutrition Program for Women, Infants and Children (WIC).     (12)   The Iowa department of public health, department of education, or department of human services.     (13)   Head Start agencies or the Head Start technical assistance system.     (14)   Organizations that are certified by the International Association for Continuing Education and Training (IACET).     b.    Training received in a group setting must follow a presentation format that incorporates a variety of adult learning methods. The material or content of the training must be obtained from one of the entities listed in paragraph 120.10(7)“a” or an entity approved under paragraph 120.10(7)“h.”    c.    b.    Approved training shall be made available to Iowa child care providers through the child care provider training registryi-PoWeR.     d.    Training received in a group setting may include distance learning opportunities, such as training conducted over the Iowa communications network, online courses, or web conferencing (webinars) if:     (1)   The training meets the requirements in subrule 120.10(8);     (2)   The training is taught by an instructor and requires interaction between the instructor and the participants, such as required chats or message boards; and     (3)   The training organization meets the requirements listed in this subrule or is approved by the department.     e.    c.    The department will not approve more than eight hours of training delivered in a single day.     f.    d.    The department may randomly monitor any state-approved training for quality control purposes.     g.    e.    Training conducted with the provider either during the hours of operation of the facility,during provider lunch hours, or while children are resting must not diminish the required ratio coverage. The provider shall not be actively engaged in care and supervision and simultaneously participate in training.     h.    f.    A training organization not approved by the department may submit a request for review to the department on Form 470-4528, Request for Child Care Training Approval. All approvals, unless otherwise specified, shall be valid for five years. The department shall issue its decision within 30 business days of receipt of a complete request.
    ARC 5846CLabor Services Division[875]Notice of Intended Action

    Proposing rule making related to emergency temporary standard related to COVID-19 and providing an opportunity for public comment

        The Labor Commissioner hereby proposes to amend Chapter 10, “General Industry Safety and Health Rules,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 88.5.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 88.Purpose and Summary    The Iowa Labor Commissioner is required to adopt by reference changes to the U.S. Department of Labor’s occupational safety and health standards. This proposed rule making would adopt by reference federal Occupational Safety and Health Administration’s (OSHA’s) new emergency temporary standard (ETS) related to the COVID-19 pandemic. The ETS applies only to certain locations where health care services are provided, and it is set to expire after six months. The ETS focuses on those workplaces where employees care for people with the COVID-19 virus and people with an unknown viral status.Fiscal Impact    In the Federal Register, the U.S. Department of Labor published a large amount of data as part of its economic analysis. The analysis concluded the ETS is economically feasible and the benefits far outweigh the costs. However, data specific to Iowa is not available.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 5.Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Commissioner no later than 4:30 p.m. on September 15, 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: September 15, 2021 9 a.m. 150 Des Moines Street Des Moines, Iowa     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.     Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the 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).Emergency Rule Making Adopted by Reference    This proposed rule making is also published herein as an Adopted and Filed Emergency rule making (see ARC 5847C, IAB 8/11/21). The purpose of this Notice of Intended Action is to solicit public comment on that emergency rule making, whose subject matter is hereby adopted by reference.

        ITEM 1.    Amend rule 875—10.20(88) by inserting the following at the end thereof:86 Fed. Reg. 32620 (June 22, 2021)
    ARC 5833CPharmacy Board[657]Notice of Intended Action

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

        The Board of Pharmacy hereby proposes to amend Chapter 3, “Pharmacy Technicians,” Chapter 8, “Universal Practice Standards,” Chapter 20, “Compounding Practices,” and Chapter 39, “Expanded Practice Standards,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 155A.6A, 155A.45 and 155A.46 and 2021 Iowa Acts, House File 514.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 155A.4, 155A.6A, 155A.45 and 155A.46; 2021 Iowa Acts, House File 514; and 2021 Iowa Acts, Senate File 296.Purpose and Summary    The proposed amendments implement legislation enacted during the 2021 Legislative Session (House File 514 and Senate File 296). Specifically, the amendments:

  • Provide for the renewal or reactivation of registration of a technician trainee registrant who was, due to exceptional circumstances, unable to attain national pharmacy technician registration and who seeks an additional year of training or study;
  • Require pharmacies that have dispensed compounded human drug products interstate to annually report compounding data to the National Association of Boards of Pharmacy information sharing network to comply with a memorandum of understanding between the Board and the United States Food and Drug Administration;
  • Update the rules relating to statewide protocols to move the training and education requirements out of administrative rule and into the statewide protocols directly;
  • Move and clarify language relating to vaccine and medication administration via patient-specific prescriptions and reporting requirements in the case of serious complications; and
  • Update language relating to pilot demonstration research projects.
  • Fiscal Impact    This rule making is not anticipated to have a fiscal impact to the State of Iowa. While it is anticipated that some technician trainees, who have encountered exceptional circumstances that have prevented them from attaining national pharmacy technician certification, will seek renewal or reactivation for the trainee registration, it is expected that it will result, at best, in negligible increases in revenue. It is anticipated that approximately 25 technician trainees will seek renewal or reactivation of the trainee registration annually, which would be estimated to result in a net increase in Board revenue of less than $200.Jobs Impact    After analysis and review of this rule making, no impact on jobs could be determined. It is anticipated that approximately 25 technician trainees would continue in (or return to) the practice of pharmacy when they otherwise would have had to either leave the practice or register as a pharmacy support person to complete nontechnical duties.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 657—Chapter 34.Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Board no later than 4:30 p.m. on August 31, 2021. Comments should be directed to: Sue Mears Board of Pharmacy 400 S.W. 8th Street, Suite E Des Moines, Iowa 50309 Email: sue.mears@iowa.gov Public Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Amend subrules 3.5(1) and 3.5(2) as follows:    3 3.5 5(1) Pharmacy technician trainee.  A person who is in the process of acquiring national certification as a pharmacy technician shall register with the board as a pharmacy technician traineepursuant to rule 657—3.9(155A). The registration shall be issued for a period of one year and shall not be renewed.    3 3.5 5(2) Certified pharmacy technician.  All applicants for a new pharmacy technician registration except as provided by subrule 3.5(1), and all applicants for renewal of a pharmacy technician registrationpursuant to rule 657—3.10(155A), shall provide proof of current national pharmacy technician certification and shall complete the application for certified pharmacy technician registration.

        ITEM 2.    Amend rule 657—3.9(155A) as follows:

    657—3.9(155A) Registration fee and term—technician trainee.      3.9(1) Fee.  The nonrefundable application fee for a pharmacy technician trainee registration shall be $20. The nonrefundable application fee for a pharmacy technician trainee registration shall be submitted in the form of a personal check, certified check, cashier’s check, or money order made payable to the Iowa Board of Pharmacy when submitted with a written application or by acceptable debit or credit card when submitted with an online application.    3.9(2) Term.  A pharmacy technician trainee registration shall expire on the last day of the registration month 12 months following the date of registration. A pharmacy technician trainee registration shall notmay be renewedonly as provided in subrules 3.9(3) and 3.9(4).    a.    National certification completed.When the registered pharmacy technician trainee completes national certification, and no later than the expiration of the pharmacy technician trainee registration, the technician shall submit a completed application and nonrefundable application fee for certified pharmacy technician registration.    b.    Expiration of registration.TheExcept as provided in subrules 3.9(3) and 3.9(4), the registration of a pharmacy technician trainee who fails to complete national certification prior to the expiration of the registration shall expire and the technician shall cease practice as a pharmacy technician.    3.9(3) Renewal.  A technician trainee who is unable to complete national certification prior to the expiration of the registration may seek renewal of the registration in exceptional circumstances. To the extent practicable, the trainee should submit an application and nonrefundable fee of $20 for technician trainee renewal, on forms provided by the board, at least 30 days prior to the expiration of the registration.    3.9(4) Reactivation.  A technician trainee who was previously registered and left the practice of pharmacy prior to obtaining national certification may seek reactivation of the registration. The individual shall submit an application and nonrefundable fee of $20 for technician trainee reactivation on forms provided by the board. Pursuant to rule 657—3.3(155A), a technician shall obtain registration prior to commencing employment as a technician trainee in an Iowa pharmacy.

        ITEM 3.    Rescind and reserve rule 657—8.23(124,155A).

        ITEM 4.    Adopt the following new definition of “NABP information sharing network” in rule 657—20.2(124,126,155A):        "NABP information sharing network" means the information sharing network developed by the National Association of Boards of Pharmacy that collects, assesses, and allows review and sharing of pharmacy compounding information as described in the Memorandum of Understanding Addressing Certain Distributions of Compounded Human Drug Products between the board and the United States Food and Drug Administration.

        ITEM 5.    Adopt the following new rule 657—20.24(155A):

    657—20.24(155A) Annual reporting of interstate distribution of compounded preparations.      20.24(1)   No later than April 1, 2022, and annually thereafter, each licensed pharmacy located in Iowa that distributed compounded preparations for human use interstate in the previous calendar year shall report compounding data to the NABP information sharing network.    20.24(2)   Compounding data may include, but not be limited to:    a.    Whether the pharmacy engaged in the following activities during the identified calendar year:    (1)   Sterile human drug compounding;    (2)   Nonsterile human drug compounding;    (3)   Patient-specific compounding; and    (4)   Non-patient-specific compounding.    b.    The number of prescription orders for compounded human drugs sent out from the pharmacy.    c.    The number of prescription orders for compounded human drugs dispensed at the pharmacy.    d.    The total number of prescription orders for compounded human drugs distributed interstate.    e.    The number of prescription orders for sterile compounded human drugs distributed interstate.    f.    The names of states into which the pharmacy distributed compounded human drugs during the identified calendar year.    g.    Whether compounded human drugs are distributed without patient-specific prescriptions.

        ITEM 6.    Amend rule 657—39.6(155A) as follows:

    657—39.6(155A) Statewide protocols.  ATo the extent authorized in Iowa Code section 155A.46, a pharmacist may, pursuant to statewide protocols developed by the board in consultation with the department of public health and available on the board’s website at pharmacy.iowa.gov, order and dispense medications pursuant to rules 657—39.8(155A), 657—39.9(155A), and 657—39.11(155A)the requirements identified in the statewide protocols. For the purpose of this rule, the order shall constitute a prescription.

        ITEM 7.    Rescind rule 657—39.8(155A) and adopt the following new rule in lieu thereof:

    657—39.8(155A) Medications administered via prescription.      39.8(1) Vaccine administration.  A pharmacist who is authorized to administer vaccines pursuant to the statewide protocol may administer, including via delegation to authorized pharmacy personnel, any vaccine pursuant to a prescription or medication order for an individual patient. In case of a serious complication, the pharmacist shall notify the prescriber who authorized the prescription within 24 hours and shall submit a report to the Vaccine Adverse Event Reporting System (VAERS).    39.8(2) Medication administration.  A pharmacist may administer, including via delegation to authorized pharmacy personnel if so delegated or authorized by the prescriber, any medication pursuant to a prescription or medication order for an individual patient. In case of a serious complication, the pharmacist shall notify the prescriber who issued the prescription within 24 hours and shall submit a report to the United States Food and Drug Administration Adverse Event Reporting System (FAERS).

        ITEM 8.    Rescind and reserve rules 657—39.9(155A) to 657—39.11(155A).

        ITEM 9.    Amend rule 657—39.16(155A) as follows:

    657—39.16(155A) Pharmacy pilot or demonstration research projects.  The purpose of this rule is to specify the procedures to be followed in applying for approval of a pilot or demonstration research project for innovative applications in the practice of pharmacy as authorized by 2011 Iowa Acts, chapter 63, section 36, as amended by 2012 Iowa Acts, chapter 1113, section 31, and by 2013 Iowa Acts, chapter 138, section 128. In reviewing projects, the board will consider only projects that expand pharmaceutical care services that contribute to positive patient outcomes. The board will not consider any project intended only to provide a competitive advantage to a single applicant or group of applicants.    39.16(1) Definitions.  For the purposes of this rule, the following definitions shall apply:         "Act" means Iowa Code chapter 155A, the Iowa pharmacy practice Act.        "Board" means the Iowa board of pharmacy.        "Practice of pharmacy" means the practice of pharmacy as defined in Iowa Code section 155A.3(37).        "Project" means a pilot or demonstration research project as described in this rule.    39.16(2) Scope of project.  A project may not expand the definition of the practice of pharmacy. A project may include therapeutic substitution or substitution of medical devices used in patient care if such substitution is included under a collaborative drug therapy management protocol establishedpharmacy practice agreement pursuant to rule 657—39.13(155A).    39.16(3) Board approval of a project.  Board approval of a project may include the grant of an exception to or a waiver of rules adopted under the Act or under any law relating to the authority of prescription verification and the ability of a pharmacist to provide enhanced patient care in the practice of pharmacy. Project approval, including exception to or waiver of board rules, shall initially be for a specified period of time not exceeding 18 months from commencement of the project. The board may approve the extension or renewal of a project following consideration of a petition that clearly identifies the project, that includes a report similar to the final project report described in paragraph 39.16(6)“a,” that describes and explains any proposed changes to the originally approved and implemented project, and that justifies the need for extending or renewing the term of the project.    39.16(4) Applying for approval of a project.  A person who wishes the board to consider approval of a project shall submit to the board a petition for approval that contains at least the following information:    a.    Responsible pharmacist.Name, address, telephone number, and pharmacist license number of each pharmacist responsible for overseeing the project.    b.    Location of project.Name, address, and telephone number of each specific location and, if a location is a pharmacy, the pharmacy license number where the proposed project will be conducted.    c.    Project summary.A detailed summary of the proposed project that includes at least the following information:    (1)   The goals, hypothesis, and objectives of the proposed project.    (2)   A full explanation of the project and how it will be conducted.    (3)   The time frame for the project including the proposed start date and length of study. The time frame may not exceed 18 months from the proposed start date of the project.    (4)   Background information or literature review to support the proposed project.    (5)   The rule or rules to be waived in order to complete the project and a request to waive the rule or rules.    (6)   Procedures to be used during the project to ensure that the public health and safety are not compromised as a result of the waiver.    39.16(5) Review and approval or denial of a proposed project.      a.    Staff review.Upon receipt of a petition for approval of a project, board staff shall initially review the petition for completeness and appropriateness. If the petition is incomplete or inappropriate for board consideration, board staff shall return the petition to the requestor with a letter explaining the reason the petition is being returned. A petition that has been returned pursuant to this paragraph may be amended or supplemented as necessary and submitted for reconsideration.    b.    Board review.Upon review by the board of a petition for approval of a project, the board shall either approve or deny the petition. If the board approves the petition, the approval:    (1)   Shall be specific for the project requested;    (2)   Shall approve the project for a specific time period; and    (3)   May include conditions or qualifications applicable to the project.    c.    Inspection.The project site and project documentation shall be available for inspection and review by the board or its representative at any time during the project review and the approval or denial processes and, if a project is approved, throughout the approved term of the project.    d.    Documentation maintained.Project documentation shall be maintained and available for inspection, review, and copying by the board or its representative for at least two years following completion or termination of the project.    39.16(6) Presentation of reports.  The pharmacist responsible for overseeing a project shall be responsible for submitting to the board any reports required as a condition of a project, including the final project report.    a.    Final project report.The final project report shall include a written summary of the results of the project and the conclusions drawn from those results. The final project report shall be submitted to the board within three months after completion or termination of the project.    b.    Board review.The board shall receive and review any report regarding the progress of a project and the final project report at a regularly scheduled meeting of the board. The report shall be an item on the open session agenda for the meeting.
    ARC 5831CPharmacy Board[657]Notice of Intended Action

    Proposing rule making related to pharmacy technician administration of vaccines and providing an opportunity for public comment

        The Board of Pharmacy hereby proposes to amend Chapter 3, “Pharmacy Technicians,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 147.76 and 155A.6A.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 155A.6A.Purpose and Summary    This proposed rule making provides the minimum training requirements for pharmacy technicians to engage in the administration of vaccinations. Currently, under the national public health emergency declaration and Public Readiness and Emergency Preparedness (PREP) Act in response to the global coronavirus pandemic, pharmacy technicians are authorized, pursuant to training and continuing education requirements, to administer pediatric vaccinations to any patient aged 3 to 18 years old and COVID-19 vaccinations to patients of any age for which the vaccination is authorized or approved. This rule making identifies properly trained pharmacy technicians so that the technicians may engage in pharmacist-delegated vaccine administration for immunizations and not be limited to pediatric or COVID-19 vaccinations.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 can be determined.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 657—Chapter 34.Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Board no later than 4:30 p.m. on August 31, 2021. Comments should be directed to: Sue Mears Board of Pharmacy 400 S.W. 8th Street, Suite E Des Moines, Iowa 50309 Email: sue.mears@iowa.gov Public Hearing     A public hearing at which persons may present their views orally or in writing will be held as follows: September 2, 2021 10:30 to 11 a.m. Health Professions Board Room 400 S.W. 8th Street, Suite H 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).Emergency Rule Making Adopted by Reference    This proposed rule making is also published herein as an Adopted and Filed Emergency rule making (see ARC 5820C, IAB 8/11/21). The purpose of this Notice of Intended Action is to solicit public comment on that emergency rule making, whose subject matter is hereby adopted by reference.

        ITEM 1.    Amend rule 657—3.17(155A) as follows:

    657—3.17(155A) Training and utilization of pharmacy technicians.      3.17(1) Policies and procedures.  All licensed pharmacies located in Iowa that utilize pharmacy technicians shall develop, implement, and periodically review written policies and procedures for the training and utilization of pharmacy technicians appropriate to the practice of pharmacy. Pharmacy policies shall specify the frequency of review.     3.17(2) Documented training.  Pharmacy technician training shall be documented and maintained by the pharmacy for the duration of employment. Policies and procedures and documentation of pharmacy technician training shall be available for inspection and copying by the board or an agent of the board.    3.17(3) Vaccine administration training and continuing education.  A pharmacy technician who administers a vaccine or immunization under the supervision of a pharmacist shall document successful completion of the requirements in paragraph 3.17(3)“a” or “b” and shall maintain competency by completing and maintaining documentation of the continuing education requirements in paragraph 3.17(3)“c.”    a.    Initial qualification.Except as provided in paragraph 3.17(3)“b,” a technician shall have successfully completed an Accreditation Council for Pharmacy Education (ACPE)-accredited program on vaccine administration that is an evidence-based program that includes study material and hands-on training and techniques for administering vaccines, requires testing with a passing score, complies with current Centers for Disease Control and Prevention (CDC) guidelines, and provides instruction and experiential training in the following content areas:    (1)   Standards for immunization practices;    (2)   Basic immunology and vaccine protection;     (3)   Vaccine-preventable diseases;    (4)   Recommended immunization schedules;    (5)   Vaccine storage and management;     (6)   Informed consent;    (7)   Physiology and techniques for vaccine administration;    (8)   Immunization record management; and     (9)   Identification of adverse events.    b.    Previous qualification.A technician who is currently licensed as a registered nurse shall be deemed to have met the training requirement.    c.    Continuing education.During any technician registration renewal period, a technician who engages in the administration of vaccines shall complete and document at least one hour of ACPE-approved continuing education with the ACPE topic designator “06” followed by the letter “T” or “P.”    d.    Certification maintained.During any period within which a technician may engage in the administration of vaccines, the technician shall maintain current certification in basic cardiac life support through a training program designated for health care providers that includes hands-on training.
    ARC 5834CPharmacy Board[657]Notice of Intended Action

    Proposing rule making related to records, dispensing, and controlled substances and providing an opportunity for public comment

        The Board of Pharmacy hereby proposes to amend Chapter 6, “General Pharmacy Practice,” Chapter 8, “Universal Practice Standards,” and Chapter 10, “Controlled Substances,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 124.301, 147.76 and 155A.13.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 124.301 and 155A.13.Purpose and Summary    The proposed amendments provide minimum security and monitoring system requirements to be utilized by Iowa pharmacies to prevent and detect unauthorized access to prescription drugs and records; allow a pharmacist, under specific conditions, to delegate the dispensing of a prescription which otherwise requires pharmacist counseling while the pharmacist is on a break; require Iowa pharmacies to maintain a perpetual inventory system for all controlled substances; and require an exact count or measure of all schedules of controlled substances for a controlled substance inventory count.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, an impact on jobs cannot be determined.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 657—Chapter 34. Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Board no later than 4:30 p.m. on August 31, 2021. Comments should be directed to: Sue Mears Board of Pharmacy 400 S.W. 8th Street, Suite E Des Moines, Iowa 50309 Email: sue.mears@iowa.gov Public Hearing     A public hearing at which persons may present their views orally or in writing will be held as follows: September 2, 2021 1 to 1:30 p.m. Health Professions Board Room 400 S.W. 8th Street, Suite H 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 6.7(4) as follows:    6.7(4) RefillPrescription sales during pharmacist break.  At the discretion of the on-duty supervising pharmacist and pursuant to established policies and procedures, the pharmacist may delegate to a technician the dispensing of previously verified prescriptions which have been identified to not require pharmacist counseling pursuant to rule 657—6.14(155A) when the pharmacist is on a break of limited duration and is absent from the pharmacy department.A prescription that has been identified to require pharmacist counseling pursuant to rule 657—6.14(155A) may be dispensed only if the following conditions are met:    a.    The pharmacy develops a list of drugs that may not be dispensed in the pharmacist’s absence without the patient or caregiver receiving pharmacist counseling, when counseling would normally be required;     b.    The patient or caregiver is told that the pharmacist is on a break and is offered the opportunity to wait until the pharmacist returns from break to receive counseling;    c.    If the patient or caregiver declines to wait, a telephone number at which the patient or caregiver can be reached is obtained;    d.    After returning from break, the pharmacist makes a reasonable effort to contact the patient or caregiver by telephone and provides counseling; and     e.    The pharmacist documents the counseling that was provided or documents why counseling was not provided, including a description of the efforts made to contact the patient or caregiver. The documentation shall be retained and available for inspection or copying by the board or its authorized representatives for two years from the date of dispensing.

        ITEM 2.    Adopt the following new subrule 6.7(5):    6.7(5) Minimum physical security and monitoring system requirements.  No later than December 1, 2022, a pharmacy located in Iowa shall utilize the minimum physical security and monitoring system requirements as provided herein. Each pharmacy shall develop and implement a documented site-specific analysis of pharmacy security methods to be utilized. At least annually, each pharmacy shall document evaluation and testing of the pharmacy’s security and monitoring systems. Minimum physical security and monitoring system requirements include:    a.    Appropriate physical security methods to prevent unauthorized access to prescription drugs, including controlled substances, and records when the pharmacy is closed.    b.    A basic alarm system with off-site monitoring and perimeter and motion sensors.    c.    Controlled access to computer records.    d.    If the pharmacy maintains stocks of controlled substances:    (1)   Secure storage, such as a safe.    (2)   An electronically monitored security system which requires and records the unique identification of the individual accessing the pharmacy, including the date and time of access. Such records shall be maintained for a minimum of two years following the date of access. A security system maintained on site shall be secure and protected from unauthorized access.    (3)   A continuous system of video surveillance and recording of the pharmacy department that includes maintenance of recordings for a minimum of 60 days following the date of the recording. A security system maintained on site shall be secure and protected from unauthorized access.    e.    A designated location, away from drug storage areas, where personal items of pharmacy staff may be stored while on site that can be monitored.

        ITEM 3.    Adopt the following new paragraph 8.3(3)"e":    e.    Ensuring that the pharmacy provides adequate security to prevent unauthorized access and diversion.

        ITEM 4.    Adopt the following new paragraph 10.14(2)"d":    d.    To the extent possible, a separation of duties related to the purchasing, receiving, stocking, dispensing, and reconciling of controlled substance inventory.

        ITEM 5.    Amend rule 657—10.18(124) as follows:

    657—10.18(124) Schedule IIControlled substances perpetual inventory.  Each registrant located in Iowa that maintains Schedule II controlled substances shall maintain a perpetual inventory system for all Schedule II controlled substances pursuant to this rule.Additionally, each pharmacy located in Iowa that maintains controlled substances shall maintain a perpetual inventory system for all controlled substances pursuant to this rule. All records relating to the perpetual inventory shall be maintained at the registered location and shall be available for inspection and copying by the board or its representative for a period of two years from the date of the record. The perpetual inventory shall accurately reflect the on-hand inventory of Schedule IIcontrolled substances, and the registrant is responsible for ensuring that the perpetual inventory record is accurate and matches the actual on-hand inventory at all times.    10.18(1) Record format.  The perpetual inventory record may be maintained in a manual or an electronic record format. Any electronic record shall provide for hard-copy printout of all transactions recorded in the perpetual inventory record for any specified period of time and shall state the current inventory quantities of each drug at the time the record is printed.    10.18(2) Information included.  The perpetual inventory record shall identify all receipts for and disbursements of Schedule II controlled substances by drug or by national drug code (NDC) number. The record shall be updated to identify each receipt, disbursement, and current balance of each individual drug or NDC number. The record shall also include incident reports and reconciliation records pursuant to subrules 10.18(3) and 10.18(4).    10.18(3) Changes to a record.  If a perpetual inventory record is able to be changed, the individual making a change to the record shall complete an incident report documenting the change. The incident report shall identify the specific information that was changed including the information before and after the change, shall identify the individual making the change, and shall include the date and the reason the record was changed. If the electronic record system documents within the perpetual inventory record all of the information that must be included in an incident report, a separate report is not required.    10.18(4) Reconciliation.  The registrant shall be responsible for reconciling or ensuring the completion of a reconciliation of the perpetual inventory balance with the physical inventory of all Schedule II controlled substances at least annually. In case of any discrepancies between the physical inventory and the perpetual inventory, the registrant shall be notified immediately. The registrant shall determine the need for further investigation, and significant discrepancies shall be reported to the board pursuant to rule 657—10.21(124) and to the DEA pursuant to federal DEA regulations. Periodic reconciliation records shall be maintained and available for review and copying by the board or its authorized agents for a period of two years from the date of the record. The reconciliation process mayshall be completed using either of the following procedures or a combination thereof:    a.    The individual responsible for a disbursement verifiesshall verify that the physical inventory matches the perpetual inventory following each disbursement and documents that reconciliation in the perpetual inventory record. If controlled substances are maintained on the patient care unit, the nurse or other responsible licensed health care provider verifies that the physical inventory matches the perpetual inventory following each dispensing and documents that reconciliation in the perpetual inventory record.Any discrepancies discovered shall be investigated and reported to the pharmacist in charge (PIC) or the responsible individual within one business day. If any Schedule II controlled substances in the registrant’s current inventory have been disbursed and verified in this manner within the year and there are no discrepancies noted, no additional reconciliation action is required. A perpetual inventory record for a drug that has had no activity within the year shall be reconciled pursuant to paragraph 10.18(4)“b.”    b.    A physical count of each Schedule II controlled substance stocked by the registrantthat has not been reconciled pursuant to paragraph 10.18(4)“a” shall be completed at least once each year, and that count shall be reconciled with the perpetual inventory record balance.Any discrepancies discovered shall be investigated and reported to the PIC or the responsible individual within one business day. The physical count and reconciliation may be completed over a period of time not to exceed one year in a manner that ensures that the perpetual inventory and the physical inventory of Schedule II controlled substances are annually reconciled. The individual performing the reconciliation shall record the date, the time, the individual’s initials or unique identification, and any discrepancies between the physical inventory and the perpetual inventory.

        ITEM 6.    Amend subrule 10.19(1) as follows:    10.19(1) Record and procedure.  Each inventory record, except the periodic count and reconciliation required pursuant to subrule 10.18(4), shall comply with the requirements of this subrule and shall be maintained for a minimum of two years from the date of the inventory.    a.    Each inventory shall contain a complete and accurate record of all controlled substances on hand on the date and at the time the inventory is taken.    b.    Each inventory shall be maintained in a handwritten, typewritten, or electronically printed form at the registered location. An inventory of Schedule II controlled substances shall be maintained separately from an inventory of all other controlled substances.    c.    Controlled substances shall be deemed to be on hand if they are in the possession of or under the control of the registrant. Controlled substances on hand shall include prescriptions prepared for dispensing to a patient but not yet delivered to the patient, substances maintained in emergency medical service programs, care facility or hospice emergency supplies, outdated or adulterated substances pending destruction, and substances stored in a warehouse on behalf of the registrant. Controlled substances obtained through an authorized collection program for the purpose of disposal shall not be examined, inspected, counted, sorted, inventoried, or otherwise handled.    d.    A separate inventory shall be made for each registered location and for each independent activity registered except as otherwise provided under federal law.    e.    The inventory shall be taken either prior to opening or following the close of business on the inventory date, and the inventory record shall identify either opening or close of business.    f.    The inventory record, unless otherwise provided under federal law, shall include the following information:    (1)   The name of the substance.    (2)   The strength and dosage form of the substance.    (3)   The quantity of the substance, which shall be an exact count or measure of the substance and may not be an estimated count or measure.    (4)   Information required of authorized collection programs pursuant to federal regulations for such collection programs.    (5)   The signature of the person or persons responsible for taking the inventory.    (6)   The date and time (opening or closing) of the inventory.    g.    For all substances listed in Schedule I or II, the quantity shall be an exact count or measure of the substance.    h.    For all substances listed in Schedule III, IV, or V, the quantity may be an estimated count or measure of the substance unless the container has been opened and originally held more than 100 dosage units. If the opened commercial container originally held more than 100 dosage units, an exact count of the contents shall be made. Products packaged in nonincremented containers may be estimated to the nearest one-fourth container.
    ARC 5835CPharmacy Board[657]Notice of Intended Action

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

        The Board of Pharmacy hereby proposes to amend Chapter 8, “Universal Practice Standards,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 155A.13.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 155A.13.Purpose and Summary    The proposed amendment provides for the identification of an interim pharmacist in charge in situations when the permanent pharmacist in charge is not vacating the position but is out of the pharmacy on an extended leave of absence (e.g., medical or parental leave). The pharmacy would be able to notify the Board, on forms provided by the Board, of the interim pharmacist in charge. However, neither a pharmacy license application nor a permanent change of the pharmacy license would be required.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 657—Chapter 34. Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Board no later than 4:30 p.m. on August 31, 2021. Comments should be directed to: Sue Mears Board of Pharmacy 400 S.W. 8th Street, Suite E Des Moines, Iowa 50309 Email: sue.mears@iowa.gov Public Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

        ITEM 1.    Adopt the following new subparagraph 8.35(6)"d":    (4)   If a permanent pharmacist in charge is out of the pharmacy for an extended leave of absence of no more than 90 days, the pharmacy may identify an interim pharmacist in charge and provide notice of such to the board on forms provided by the board. Identification of an interim pharmacist in charge shall not require submission of a new pharmacy license application and shall not result in a permanent change in pharmacist in charge on the pharmacy license. If a permanent pharmacist in charge is out of the pharmacy for an extended leave of absence greater than 90 days, the pharmacy shall initiate a change of pharmacist in charge in accordance with this rule.
    ARC 5837CPharmacy Board[657]Notice of Intended Action

    Proposing rule making related to controlled substances and precursor substances and providing an opportunity for public comment

        The Board of Pharmacy hereby proposes to amend Chapter 10, “Controlled Substances,” and Chapter 12, “Precursor Substances,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 124.201 and 124B.2(2).State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 124.201 and 124B.2(2).Purpose and Summary    The proposed amendments temporarily identify three List I chemicals (used in the illicit manufacture of MDMA/“ecstasy”-type substances and amphetamine/methamphetamine) as precursor substances and add the following four substances into the Iowa Controlled Substances Act, both actions in response to similar scheduling action by the federal Drug Enforcement Administration:

  • Two hallucinogenic substances into Schedule I,
  • One FDA-approved ADHD medication into Schedule IV, and
  • One FDA-approved migraine medication into Schedule V.
  • Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 657—Chapter 34. Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Board no later than 4:30 p.m. on August 31, 2021. Comments should be directed to: Sue Mears Board of Pharmacy 400 S.W. 8th Street, Suite E Des Moines, Iowa 50309 Email: sue.mears@iowa.gov Public Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Adopt the following new subrule 10.39(7):    10.39(7)   Amend Iowa Code section 124.210(6) by adding the following new paragraph:    n.    Serdexmethylphenidate.

        ITEM 2.    Adopt the following new subrule 10.39(8):    10.39(8)   Amend Iowa Code section 124.212(5) by adding the following new paragraph:    f.    Lasmiditan [2,4,6-trifluoro-N-(6-(1-methylpiperidine-4-carbonyl)pyridine-2-yl-benzamide].

        ITEM 3.    Adopt the following new subrule 10.39(9):    10.39(9)   Amend Iowa Code section 124.204(4) by adding the following new paragraphs:    av.    methyl 2-(1-(4-fluorobutyl)-1H-indazole-3-carboxamido)-3,3-dimethylbutanoate. Other names: 4F-MDMB-BINACA, 4F-MDMB-BUTINACA.    aw.    1-(4-methyoxyphenyl)-N-methylpropan-2-amine. Other names: para-methoxymethamphetamine, PMMA.

        ITEM 4.    Rescind subrule 12.1(1) and adopt the following new subrule in lieu thereof:    12.1(1)   Amend Iowa Code section 124B.2(1) by adding the following new paragraphs:    ae.    3,4-MDP-2-P methyl glycidate (PMK glycidate) and its optical and geometric isomers.    af.    3,4-MDP-2-P methyl glicidic acid (PMK glycidic acid) and its salts, optical and geometric isomers, and salts of isomers.    ag.    Alpha-phylacetoacetamide (APAA) and its optical isomers.
    ARC 5836CPharmacy Board[657]Notice of Intended Action

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

        The Board of Pharmacy hereby proposes to amend Chapter 21, “Electronic Data and Automated Systems in Pharmacy Practice,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 124.308 and 155A.27.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 124.308 and 155A.27.Purpose and Summary    The proposed amendments are the result of an overall five-year review of Chapter 21 as required by Iowa Code section 17A.7(2). The proposed amendments update processes relating to the submission and review of petitions for an exemption to the electronic prescription transmission mandate, as well as provide conforming language with other Board administrative rules.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 657—Chapter 34.Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Board no later than 4:30 p.m. on August 31, 2021. Comments should be directed to: Sue Mears Board of Pharmacy 400 S.W. 8th Street, Suite E Des Moines, Iowa 50309 Email: sue.mears@iowa.gov Public Hearing     A public hearing at which persons may present their views orally or in writing will be held as follows: September 2, 2021 2:30 to 3 p.m. Health Professions Board Room 400 S.W. 8th Street, Suite H 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 657—21.6(124,155A) as follows:

    657—21.6(124,155A) Electronic prescription applications.  Beginning January 1, 2020, eachEach prescription for a controlled substance shall be transmitted electronically to a pharmacy except as provided in rule 657—21.8(124,155A). Prior to January 1, 2020, a prescriber may, but shall not be required to, initiate and authorize a prescription drug order utilizing an electronic prescription application that has been determined to maintain security and confidentiality of patient information and records and, if prescribing controlled substances via an electronic prescribing system, certified compliant with DEA regulations for electronic prescribing of controlled substances. The prescription drug order shall contain all information required by Iowa Code sectionssection 155A.27 and 147.107(5). The receiving pharmacist shall be responsible for verifying the authenticity of an electronically prescribed prescription pursuant to rule 657—8.19(124,126,155A). A prescription that is electronically generated prior to January 1, 2020, or subject to exemption as provided in rule 657—21.8(124,155A), may be transmitted to a pharmacy via electronic or facsimile transmission or printed in hard-copy format for delivery to the pharmacy. A prescription that is transmitted by a prescriber’s agent via electronic or facsimile transmission shall include the first and last names and title of the agent responsible for the transmission.    21.6(1) Electronic transmission.  Beginning January 1, 2020, aA prescription prepared pursuant to this rule shall be transmitted electronically to a pharmacy, unless exempt pursuant to rule 657—21.8(124,155A). A pharmacy shall be certified compliant with DEA regulations relating to electronic prescriptions prior to electronically receiving prescriptions for controlled substances. The electronic record shall serve as the original record and shall be maintained for two years from the date of last activity on the prescription. Any annotations shall be made and retained on the electronic record.    a.    An electronically prepared and transmitted prescription that is printed following transmission shall be clearly labeled as a copy, not valid for dispensing.    b.    The authenticity of a prescription transmitted via electronic transmission between a DEA-certified electronic prescription application and a DEA-certified electronic automated data processing system shall be deemed verified by virtue of the security processes included in those applications.    c.    A pharmacy shall ensure that no intermediary has the ability to change the content of the prescription drug order or compromise its confidentiality during the transmission process. The electronic format of the prescription drug order may be changed by the intermediary to facilitate the transmission between electronic applications as long as the content of the prescription drug order remains unchanged.    d.    In addition to the information requirements for a prescription, an electronically transmitted prescription shall identify the transmitter’s telephone number for verbal confirmation, the telephone number where the prescriber can be contacted for timely consultation about patient care matters, the time and date of transmission, and the pharmacy intended to receive the transmission as well as any other information required by federal or state laws, rules, or regulations.    e.    If the transmission of an electronic prescription fails, the prescriber may print the prescription, manually sign the printed prescription, and deliver the prescription to the pharmacy via facsimile transmission in accordance with subrule 21.6(2).    21.6(2) Printed (hard-copy) prescriptions.   A prescription electronically generated prior to January 1, 2020, or a prescription that is exempt from the electronic prescription mandate as provided in rule 657—21.8(124,155A), may be printed in hard-copy format for facsimile transmission or delivery to the pharmacy.    a.    A prescription for a controlled substance shall include the prescriber’s manual signature. Printed or hard-copy prescriptions for Schedule II controlled substances shall not be transmitted to a pharmacy via facsimile transmission, except as authorized in rule 657—21.7(124,155A).    b.    If the prescriber authenticates a prescription for a noncontrolled prescription drug utilizing an electronic signature, the printed prescription shall be printed on security paper. Security features of the paper shall ensure that prescription information is not obscured or rendered illegible when transmitted via facsimile or when scanned into an electronic record system.    c.    If the facsimile transmission of a printed prescription is a result of a failed electronic transmission, the facsimile shall indicate that it was originally transmitted to the named pharmacy, the date and time of the original electronic transmission, and the fact that the original transmission failed.

        ITEM 2.    Amend rule 657—21.7(124,155A) as follows:

    657—21.7(124,155A) Facsimile transmission of a prescription.   A pharmacist may dispense noncontrolled and controlled drugs, including Schedule II controlled substances only as provided in this rule, pursuant to a prescription faxed to the pharmacy by the prescribing practitioner or the practitioner’s agent. The means of transmission via facsimile shall ensure that prescription information is not obscured or rendered illegible due to security features of the paper utilized by the prescriber to prepare a written prescription. The faxed prescription shall serve as the original record, except as provided in subrule 21.7(1), shall be maintained for a minimum of two years from the date of the last activity on the prescription, and shall contain all information required by Iowa Code sectionssection 155A.27 and 147.107(5), including the prescriber’s signature. If the prescription is transmitted by an agent of the prescriber, the facsimile transmission shall include the first and last names and title of the agent responsible for the transmission. The pharmacist shall be responsible for verifying the authenticity of the prescription as to the source of the facsimile transmission.    21.7(1) Schedule II controlled substances—emergency situations.  A pharmacist may, in an emergency situation as defined in 657—subrule 10.26(1), dispense a Schedule II controlled substance pursuant to a facsimile transmission to the pharmacy of a written, signed prescription from the prescriber or the prescriber’s agent pursuant to the requirements of rule 657—10.26(124). The facsimile shall serve as the temporary written record required by 657—subrule 10.26(2).    21.7(2) Schedule II controlled substances—compounded injectable.  A prescription for a Schedule II narcotic substance to be compounded for the direct administration to a patient by parenteral, intravenous, intramuscular, subcutaneous, or intraspinal infusion may be transmitted by a prescriber or the prescriber’s agent to a pharmacy via facsimile.    21.7(3) Schedule II controlled substances—long-term care facility patients.  A prescription for any Schedule II controlled substance for a resident of a long-term care facility, as “long-term care facility” is defined in rule 657—23.2(155A), may be transmitted by the prescriber or the prescriber’s agent to a pharmacy via facsimile. The prescription shall identify that the patient is a resident of a long-term care facility.    21.7(4) Schedule II controlled substances—hospice patients.  A prescription for any Schedule II controlled substance for a patient in a hospice program licensed pursuant to Iowa Code chapter 135J or a program certified or paid for by Medicare under Title XVIII may be transmitted via facsimile by the prescriber or the prescriber’s agent to the pharmacy. The prescription shall identify that the patient is a hospice patient.

        ITEM 3.    Amend rule 657—21.8(124,155A) as follows:

    657—21.8(124,155A) Electronic prescription mandate and exemptions.  Beginning January 1, 2020, allAll prescriptions shall be transmitted electronically to a pharmacy except as provided in this rule.    21.8(1) Prescriptions exempt.  Prescriptions which shall be exempt from electronic transmission include:    a.    A prescription for a patient residing in a nursing home, long-term care facility, correctional facility, or jail.    b.    A prescription authorized by a licensed veterinarian.    c.    A prescription for a device.    d.    A prescription dispensed by a department of veterans affairs pharmacy.    e.    A prescription requiring information that makes electronic transmission impractical, such as complicated or lengthy directions for use or attachments.    f.    A prescription for a compounded preparation containing two or more components.    g.    A prescription issued in response to a public health emergency in a situation where a non-patient-specific prescription would be permitted.    h.    A prescription issued for an opioid antagonist pursuant to Iowa Code section 135.190 or a prescription issued for epinephrine pursuant to Iowa Code section 135.185.    i.    A prescription issued during a temporary technical or electronic failure at the location of the prescriber or pharmacy, provided that a prescription issued pursuant to this paragraph shall indicate on the prescription that the prescriber or pharmacy is experiencing a temporary technical or electronic failure.    j.    A prescription issued pursuant to an established and valid collaborative practice agreement, standing order, or drug research protocol.    k.    A prescription issued in an emergency situation pursuant to federal law and regulation and rules of the board. An emergency situation may include, but is not limited to, the issuance of a prescription to meet the immediate care need of a patient after hours when a prescriber is unable to access electronic prescribing capabilities. Such prescription shall be limited to a quantity sufficient to meet the acute need of the patient with no authorized refills.    21.8(2) Prescriber, medical group, institution, or pharmacy exemption.  A prescriber, medical group, institution, or pharmacy whichthat has been granted an exemption to the electronic prescription mandate pursuant to rule 657—21.9(124,155A) shall be exempt from the electronic prescription mandate only for the duration of the approved exemption, and the exemption shall not apply retroactively to prescriptions issued prior to approval. Upon expiration of an approved exemption, the prescriber, medical group, institution, or pharmacy shall either comply with the electronic prescription mandate or timely petition the board for renewal of the exemption pursuant to rule 657—21.9(124,155A).A prescriber, medical group, institution or pharmacy that has been granted an exemption to the electronic prescription mandate pursuant to rule 657—21.9(124,155A) shall identify the exemption on each prescription issued and transmitted by any nonelectronic means.

        ITEM 4.    Amend rule 657—21.9(124,155A) as follows:

    657—21.9(124,155A) Exemption from electronic prescription mandate—petition.  A prescriber, medical group, institution, or pharmacy that is unable to comply with the electronic prescription mandate in rule 657—21.8(124,155A) prior to January 1, 2020, may petition the board, on forms provided by the board, for an exemption from the requirements based upon economic hardship; technical limitations that the prescriber, medical group, institution, or pharmacy cannot control; or other exceptional circumstances. A prescriber, medical group, institution, or pharmacy seeking an exemption beginning January 1, 2020, shall submit a completed petition no later than October 1, 2019. A timely petition for renewal of a previously approved exemption shall be submitted at least 60 days in advance of the expiration of the previously approved exemption.    21.9(1) Petition information.  A petition for exemption from the electronic prescription mandate shall include, but not be limited to, all of the following:    a.    The name and address of the prescriber, medical group, institution, or pharmacy seeking the exemption. For medical groups and institutions, a list of the names, professional license numbers, and CSA registration numbers of all prescribers who would be covered by the exemptionshall be maintained by the petitioner for the duration of any approved exemption and shall not be required to be submitted with the petition.    b.    Whether the petitioner is seeking an exemption for controlled substance prescriptions, non-controlled substance prescriptions, or both.    c.    The petitioner’s current electronic prescribing capabilities.    d.    The reason, such as economic hardship, technological limitations, or other exceptional circumstances, the petitioner is seeking exemption, including any supporting documentation to justify the reason.    e.    Supporting documentation to justify the reason for the exemption, including the following mandatory documentation:    (1)   For economic hardship petitions, a copy of the petitioner’s most recent tax return showing annual income and at least two quotes documenting the cost of implementing electronic prescribing.    (2)   For technological limitation petitions, documentation showing the available Internet service providers, the speed and bandwidth available from each provider, and any data caps imposed by the Internet service provider, and documentation showing the minimum technological requirements from at least two electronic prescribing platform vendors.    f.    e.    Anticipated date of compliance with the electronic prescription mandate.    g.    f.    If the petition seeks renewal of a previously approved exemption, information relating to the petitioner’s actions during the previous exemption period to work toward compliance with the electronic prescription mandate or an explanation as to why no progress has been made.    21.9(2) Criteria for board consideration of a petition.  The board shall consider all information provided in a petition seeking exemption to the electronic prescription mandate and shall approve or deny a petition for exemption based on the following criteria:whether there is a compelling reason to justify the exemption and the nature and volume of prescriptions impacted. Except for petitions citing the exceptional circumstances listed below, which will be administratively reviewed for approval, each petition will be reviewed on a case-by-case basis.    a.    If the reason for exemption is economic hardship, whether the cost of compliance with the electronic prescription mandate would exceed 5 percent of the petitioner’s annual income as reported on the petitioner’s most recent tax return.    b.    If the reason for exemption is technological limitations, whether the Internet service providers available have the technological capabilities required by the electronic prescribing platform.    c.    If the reason for exemption is other exceptional circumstances, examples of exceptional circumstances include, but are not limited to, whether the petitioner is a free or low-income clinic, whether the petitioner had a bankruptcy in the previous year, whether the petitioner intends to discontinue practice in Iowa prior to December 31, 2020, and whether the petitioner has a disability that limits the ability to utilize an electronic prescribing platform. All other exceptional circumstances will be evaluated on a case-by-case basis.    d.    If the petition seeks renewal of a previous exemption to the electronic prescription mandate, the number of exemptions previously granted and updated information as it relates to the petitioner working toward compliance with the electronic prescription mandate or the explanation as to why no progress has been made.    a.    A free or low-income clinic where health care is provided at no cost or at a reduced cost to the patient without reimbursement from a third-party payer that requests an exemption for noncontrolled substances only.    b.    A licensed prescriber who issues no more than 50 noncontrolled substance prescriptions per year who requests an exemption for noncontrolled substances only.    c.    The department of veterans affairs for prescriptions that are not filled at a veterans affairs pharmacy.    d.    A prescriber at a student health center based at a college or university.    e.    A dentist seeking an exemption for prescriptions limited to toothpastes.    f.    A compounding pharmacy that dispenses no more than 50 prescriptions for commercially available prescription medications per year that requests an exemption for noncontrolled substances only.    21.9(3) Duration of approved exemption.  The board may approve an exemption, or the renewal of an exemption, to the electronic prescription mandate for a specified period of time not to exceed one year from the date of approval.
    ARC 5821CProfessional Licensure Division[645]Notice of Intended Action

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

        The Board of Sign Language Interpreters and Transliterators hereby proposes to amend Chapter 361, “Licensure of Sign Language Interpreters and Transliterators,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 147.76, 154E.2 and 272C.2.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 154E.2.Purpose and Summary    The proposed amendments add videoconferencing and remote services in the definition of interpreter or transliterator services, update the requirements for licensure to include submission of online applications and online payment, clarify that official documentation of passing an approved examination or of current certification of an accepted certification is required for licensure, and add an advanced certification awarded by the Board for Evaluation of Interpreters to the certifications accepted for licensure. License reactivation requirements will be expanded to include current verification of competence based on passing an examination or presenting current certification.  The proposed amendments also add requirements for temporary licensure, including passing one of the accepted examinations or successful completion of an interpreter training program from a regionally accredited college or university, and submission of a written supervisory agreement with the application for a temporary license.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    A waiver provision is not included in this rule making because all administrative rules of the professional licensure boards in the Professional Licensure Division are subject to the waiver provisions accorded under 645—Chapter 18.Public Comment    Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Board no later than 4:30 p.m. on August 31, 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 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: August 31, 2021 10 to 11 a.m. Fifth Floor Board Conference Room 526 Lucas State Office Building Des Moines, Iowa Via videoconference: us02web.zoom.us/j/88660497606?pwd= NUVITUFkdS9BTEc2cE5GZXNuSThzdz09    Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making. In an effort to ensure accuracy in memorializing a person’s comments, a person may provide written comments in addition to or in lieu of oral comments at the hearing.    Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Board and advise of specific needs.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Amend rule 645—361.1(154E), definitions of “Active interpreter or transliterator services” and “Direct supervision of a temporary license holder,” as follows:        "Active interpreter or transliterator services" means the actual time spent personally providing interpreting or transliterating servicesor providing interpreting or transliterating services through videoconferencing or remotely. When in a team interpreting situation, the time spent monitoring while the team interpreter is actively interpreting shall not be included in the time spent personally providing interpreting or transliterating services.        "Direct supervision of a temporary license holder" means monitoring of interpreting or transliterating services while personally observing the temporary license holder providing those services, as outlined in paragraphs 361.3(3)“b”361.3(4)“b” and “c.”

        ITEM 2.    Amend rule 645—361.2(154E) as follows:

    645—361.2(154E) Requirements for licensure.      361.2(1)   The following criteria shall apply to licensure:    a.    The applicant shall complete a board-approved application packet. Application forms may be obtained from the board’s website (www.idph.iowa.gov/licensure) or directly from the board office. All applications shall be sent to Board of Sign Language Interpreters and Transliterators, Professional Licensure Division, Fifth Floor, Lucas State Office Building, Des Moines, Iowa 50319-0075.The applicant may complete the application online at ibplicense.iowa.gov.    b.    The applicant shall complete the application form according to the instructions contained in the application. If the application is not completed according to the instructions, the application will not be reviewed by the board until properly completed.    c.    Each application shall be accompanied by the appropriate fees payable by check or money orderThe application fee shall be paid prior to issuance of license. The preferred payment method is by debit card, credit card, or check or money order made to the Board of Sign Language Interpreters and Transliterators. The fees are nonrefundable.    d.    No application will be considered by the board until the applicant successfullyofficial documentation is received to establish that the applicant meets one of the following requirements:    (1)   Passes the National Association of the Deaf/Registry of Interpreters for the Deaf (NAD/RID) National Interpreter Certification (NIC) examination after November 30, 2011; or    (2)   Passes one of the following examinations administered by the Registry of Interpreters for the Deaf (RID):
    1. Oral Transliteration Certificate (OTC); or
    2. Certified Deaf Interpreter (CDI); or
        (3)   Passes the Educational Interpreter Performance Assessment (EIPA) with a score of 3.5 or above after December 31, 1999; or    (4)   Passes the Cued Language Transliterator National Certification Examination (CLTNCE) administered by The National Certifying Body for Cued Language Transliterators; or    (5)   Currently holds one of the following NAD/RID certifications awarded through November 30, 2011, by the National Council on Interpreting (NCI):
    1. National Interpreter Certification (NIC); or
    2. National Interpreter Certification Advanced (NIC Advanced); or
    3. National Interpreter Certification Master (NIC Master); or
        (6)   Currently holds one of the following certifications previously awarded by the RID:
    1. Certificate of Interpretation (CI); or
    2. Certificate of Transliteration (CT); or
    3. Certificate of Interpretation and Certificate of Transliteration (CI and CT); or
    4. Interpretation Certificate/Transliteration Certificate (IC/TC); or
    5. Comprehensive Skills Certificate (CSC); or
        (7)   Currently holds one of the following certifications previously awarded by the National Association of the Deaf (NAD):
    1. NAD III (Generalist); or
    2. NAD IV (Advanced); or
    3. NAD V (Master).; or
        (8)   Currently holds an advanced certification awarded by the Board for Evaluation of Interpreters (BEI).
        e.    It is the responsibility of the applicant to make arrangements to take the examination and have the official results submitted directly to the Board of Sign Language Interpreters and Transliterators.
        361.2(2)   Licensees who were issued their licenses within six months prior to the renewal shall not be required to renew their licenses until the renewal cycle two years later.    361.2(3)   Incomplete applications that have been on file in the board office for more than two years shall be considered invalid and shall be destroyed.    361.2(4)   An applicant who has relocated to Iowa from a state that did not require licensure to practice the profession may submit proof of work experience in lieu of educational and training requirements, if eligible, in accordance with rule 645—19.2(272C).

        ITEM 3.    Amend rule 645—361.3(154E) as follows:

    645—361.3(154E) Requirements for temporary license.      361.3(1)   An applicant for licensure who has not successfully completed one of the board-approved examinationsor does not hold an approved certification set forth in paragraph 361.2(1)“d” but has complied with all other requirements in paragraphs 361.2(1)“a” to “c” shall be issued a temporary license to practice interpreting that shall be valid for two years from initial issue date. A temporary license holder may renew a temporary license once for the immediately following two-year period.and submits the online application and fee for a temporary license shall cause documentation to be submitted from the examination program to the board that verifies the applicant has passed one of the following:    a.    The written portion of the Registry of Interpreters for the Deaf (RID) examination;    b.    The written portion of the Board for Evaluation of Interpreters (BEI) examination;    c.    The written portion of the Educational Interpreter Performance Assessment (EIPA) examination;    d.    The EIPA prehire examination at the highest recommended level; or    e.    The requirements for completion of a formal interpreter training program (ITP) accredited by a college or university. An official transcript shall verify completion.    361.3(2)   An applicant for a temporary license shall submit a written supervisory agreement that complies with the requirements stated in subrule 361.3(4). The temporary license shall be valid for two years from the initial issue date. A temporary license holder may renew a temporary license once for the immediately following two-year period.    361.(2) 361.3(3)   An applicant who is issued a temporary license is subject to the same requirements as those required of a licensed interpreter or transliterator set forth in Iowa Code chapters 154E and 147 and 645—Chapters 361 to 363.    361.(3) 361.3(4)   A temporary license holder is only authorized to practice if the following direct supervision requirements are fulfilled. A temporary license holder must:    a.    Enter into a written agreement with a supervisor in which the temporary license holder and the supervisor agree to the minimum requirements provided in paragraphs 361.3(3)“b”361.3(4)“b” and “c.” The supervisor shall possess a full, unrestricted sign language interpreter and transliterator license. The agreement shall be signed and dated by the temporary license holder and the supervisor; shall include the temporary license holder’s and supervisor’s names, addresses and contact information; and shall be provided to the board upon requestwith the application for a temporary license.    b.    Have a supervisor observe the temporary license holder in active practice for no fewer than six bimonthly observation sessions per year at events lasting at least 30 minutes each, if the temporary license holder is working alone in providing active interpreter or transliterator services, or at least 60 minutes each, if the temporary license holder is working in a team interpreting situation. At least two of the observation sessions must be in person, and the remainder of the observation sessions may be performed through technology that allows direct observation of the temporary license holder providing active interpreter or transliterator services.    c.    Attend at least six bimonthly advisory sessions with the supervisor per year for the purpose of discussing the supervisor’s suggestions for the temporary license holder’s professional skill development based on the observation sessions. An advisory session may occur immediately following an observation session if the setting is appropriate. At least two of the advisory sessions must be in person and the remainder of the advisory sessions may be performed through technology that allows real-time assessment and feedback. Each advisory session shall involve only the temporary license holder and supervisor.    d.    Maintain an event log documenting the date, time, length and setting of each observation session and advisory session and whether the session was performed in person or through other technological means. The temporary license holder shall ensure that the supervisor verifies the occurrence of the observation session or advisory session by placing the temporary license holder’s signature on the log prior to submission to the supervisor. This event log shall be provided to the board upon request and must be submitted with the temporary license holder’s renewal application.    e.    Ensure that the supervisor attends each of the observation sessions and advisory sessions or reschedules the sessions as necessary to ensure compliance.    f.    Comply with the required observation session and advisory session obligations. If for any reason the replacement of a supervisor becomes necessary, the temporary license holder shall be responsible for developing a new written agreement with the new supervisor. A replacement of supervisors shall not excuse noncompliance with observation session and advisory session obligations.    g.    Obtain permission from clients as necessary to allow the supervisor to be in attendance during the observation sessions.    361.(4) 361.3(5)   As an Iowa-licensed practitioner in accordance with this chapter, a supervisor providing direct supervision of a temporary license holder as provided in subrule 361.3(3)361.3(4) is obligated to report to the board an interpreter or transliterator temporary license holder who is not complying with direct supervision requirements or who is not practicing in compliance with Iowa law and rules including, but not limited to, Iowa Code chapter 154E and 645—Chapters 361 to 363.

        ITEM 4.    Amend rule 645—361.9(17A,147,272C) as follows:

    645—361.9(17A,147,272C) License reactivation.  To apply for reactivation of an inactive license, a licensee shall:    361.9(1)   Submit a reactivation application on a form provided by the board.    361.9(2)   Pay the reactivation fee that is due as specified in 645—subrule 5.18(9).    361.9(3)   Provide verification of current competence to practice sign language interpreting or transliterating by satisfying one of the following criteria:    a.    If the license has been on inactive status for five years or less, an applicant must provide the following:    (1)   Verification of the license(s) from every jurisdiction in which the applicant is or has been licensed and is or has been practicing during the time period in which the Iowa license was inactive sent directly from the jurisdiction(s) to the board office. Web-based verification may be substituted for verification from a jurisdiction’s board office if the verification includes:
    1. The licensee’s name;
    2. The date of initial licensure;
    3. Current licensure status; and
    4. Any disciplinary action taken against the license; and
        (2)   Verification of completing 40 hours of continuing education within two years of the application for reactivation.; and    (3)   Verification of a current certification as identified in subrule 361.2(1), or of passing an examination identified in subrule 361.2(1), which was passed after the license became inactive.
        b.    If the license has been on inactive status for more than five years, an applicant must provide the following:    (1)   Verification of the license(s) from every jurisdiction in which the applicant is or has been licensed and is or has been practicing during the time period in which the Iowa license was inactive sent directly from the jurisdiction(s) to the board office. Web-based verification may be substituted for verification from a jurisdiction’s board office if the verification includes:
    1. The licensee’s name;
    2. The date of initial licensure;
    3. Current licensure status; and
    4. Any disciplinary action taken against the license; and
        (2)   Verification of completion of 80 hours of continuing education within two years of application for reactivation.; and    (3)   Verification of a current certification as identified in subrule 361.2(1), or of passing an examination identified in subrule 361.2(1), which was passed after the license became inactive.
    ARC 5838CPublic Safety Department[661]Notice of Intended Action

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

        The Electrical Examining Board hereby proposes to amend Chapter 504, “Standards for Electrical Work,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 103.6(1).State or Federal Law Implemented    This rule making implements, in whole or in part, 2021 Iowa Acts, House File 871, section 25.Purpose and Summary    This proposed rule making removes the January 1, 2022, expiration date in rule 661—504.1(103) and brings that rule into alignment with 2021 Iowa Acts, House File 871, section 25. This rule making provides consistency and predictability regarding the rules applicable to electrical installations in Iowa by clarifying that the amendments in rule 661—504.1(103) will remain in effect until the Board issues additional rule making in response to any changes to the National Electrical Code, 2020 edition.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).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 August 31, 2021. Comments should be directed to: Sarah Jennings Department of Public Safety Oran Pape State Office Building 215 East 7th Street Des Moines, Iowa 50319 Phone: 515.725.6185 Email: jennings@dps.state.ia.us Public Hearing    No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

        ITEM 1.    Amend rule 661—504.1(103), introductory paragraph, as follows:

    661—504.1(103) Installation requirements.  The provisions of the National Electrical Code, 2020 edition, published by the National Fire Protection Association, 1 Batterymarch Park, Quincy, MA 02169-7471, are adopted as the requirements for electrical installations performed by persons licensed pursuant to 661—Chapters 500 through 503 and to installations subject to inspection pursuant to Iowa Code chapter 103 with the following amendments, which shall expire on January 1, 2022. The following amendments are effective as of May 1, 2021, shall not expire, and shall remain in effect until, at minimum, the effective date of rules adopted by the board in regard to either (1) a subsequent edition of the National Electrical Code; or (2) subsequent amendments, issued and adopted by the National Fire Protection Association, to the National Electrical Code, 2020 edition:
    ARC 5849CRevenue Department[701]Notice of Intended Action

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

        The Revenue Department hereby proposes to amend Chapter 7, “Practice and Procedure Before the Department of Revenue,” Chapter 8, “Forms and Communications,” Chapter 38, “Administration,” Chapter 51, “Administration,” and Chapter 57, “Administration,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code chapter 17A and section 421.14.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 17A and sections 421.9, 421.10, 421.14, 421.17, 421.60 and 422.28.Purpose and Summary    The proposed amendments accomplish a variety of objectives. Many of the amendments proposed are related to the implementation of the Department’s modernized tax management system and e-services portal, GovConnectIowa. The new system and portal will be phased in beginning in November 2021. GovConnectIowa will offer taxpayers and taxpayer representatives the ability to submit many filings to the Department through the portal and will also allow the Department to issue many items to taxpayers and taxpayer representatives through the portal. Amendments are proposed to reflect GovConnectIowa throughout Chapter 7. In addition, a new rule is proposed in Chapter 8 to describe how taxpayers and taxpayer representatives will be able to opt out of paper mail if they have accounts in GovConnectIowa.    Amendments are also proposed to clarify various aspects of the appeals process. Provisions on expedited procedures and demanding contested case procedures were moved from various subrules to their own new rule, 701—7.13(17A,421), to eliminate inconsistencies between rules; more closely align the procedure to Iowa Code section 421.60(2)“g”; and to make it easier to find information on the topic. Provisions on dismissals of protests were moved from subrule 7.11(2) to new rule 701—7.12(17A,421) to better highlight the topic. Additional amendments are proposed to more closely align the dismissal rules on untimely protests with the narrow statutory grounds for waiving the statute of limitations on filing appeals under Iowa Code section 421.60. Additional amendments are proposed to align the grounds for reinstating protests following a failure to pursue with the grounds for default judgments described in Iowa Code section 17A.12. Many other rules in the chapter were renumbered to place these two new rules in a logical location in relation to other information on appeals. The term “protester” is being updated to “taxpayer” and “protest” is being updated to “appeal” to improve consistency of terminology used in the rules and elsewhere in materials created by the Department.    Amendments are proposed to the rules on petitions for rule waiver and rule making to implement 2020 Iowa Acts, House File 2389. Other amendments are proposed to the rule on rule making to incorporate provisions of the Uniform Rules on Agency Procedure for Rule Making directly into the text of the rule rather than relying on a cross-reference to the PDF of the document on the Legislature’s website. Some modifications were made to the Uniform Rules to reflect current practices and the existence of the Legislature’s website on administrative rules.    Other changes are proposed throughout Chapter 7 to improve clarity and to address issues that have been areas of uncertainty in the past. Amendments to Chapter 7 are also proposed in ARC 5781C, IAB 7/14/21.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 August 31, 2021. Comments should be directed to: Alana Stamas Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.350.3932 Email: alana.stamas@iowa.govPublic Hearing    If requested, a public hearing at which persons may present their views orally or in writing will be held as follows: August 31, 2021 9 to 10 a.m. Via video/conference 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. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Amend 701—Chapter 7, title, as follows:PRACTICE AND PROCEDURE BEFORE THE DEPARTMENT OF REVENUEAPPEALS, TAXPAYER REPRESENTATION, AND OTHER ADMINISTRATIVE PROCEDURES

        ITEM 2.    Amend rules 701—7.1(421,17A) to 701—7.4(17A) as follows:

    701—7.1(421,17A) Applicability and scope of rules.  These rules pertain to practice and procedure and are designed to implement the requirements of theIowa administrative procedure Act and aid in the effective and efficient administration and enforcement of the tax laws of this state and other activities of the department. These rules shall govern the practice, procedure, and conduct of the informal proceedings, contested case proceedings, licensing, rule making,requests for waiver of rules, and declaratory orders involving taxation and other areas within the department’s jurisdiction., which includes the following:
    1. Sales and use tax—Iowa Code chapter 423;
    2. Individual and fiduciary income tax—Iowa Code sections 422.4 to 422.31 and 422.110 to 422.112;
    3. Franchise tax—Iowa Code sections 422.60 to 422.66;
    4. Corporate income tax—Iowa Code sections 422.32 to 422.41 and 422.110 to 422.112;
    5. Withholding tax—Iowa Code sections 422.16 and 422.17;
    6. Estimated tax—Iowa Code sections 422.16, 422.17 and 422.85 to 422.92;
    7. Motor fuel tax—Iowa Code chapter 452A;
    8. Property tax—Iowa Code chapters 421, 425 to 428A and 433 to 441;
    9. Cigarette and tobacco tax—Iowa Code chapters 421B and 453A;
    10. Inheritance tax and qualified use inheritance tax—Iowa Code chapters 450 and 450B;
    11. Local option taxes—Iowa Code chapter 423B;
    12. Hotel and motel tax—Iowa Code chapter 423A;
    13. Drug excise tax—Iowa Code chapter 453B;
    14. Automobile rental excise tax—Iowa Code chapter 423C;
    15. Environmental protection charge—Iowa Code chapter 424;
    16. Replacement taxes—Iowa Code chapter 437A;
    17. Statewide property tax—Iowa Code chapter 437A;
    18. Equipment tax—Iowa Code chapter 423D;
    19. Other taxes and activities as may be assigned to the department from time to time; and
    20. The taxpayer’s bill of rights—Iowa Code section 421.60.
    As the purpose of these rules is to facilitate business and advance justice, any rule contained herein, pursuant to statutory authority, may be suspended or waived by the department to prevent undue hardship in any particular instance or to prevent surprise or injustice.       This rule is intended to implement Iowa Code chapter 17A.

    701—7.2(421,17A) Definitions.  These definitions apply to this chapter, unless the text otherwise states to the contraryotherwise:        "Act" means the Iowa administrative procedure Act.        "Affiliate or subsidiary of an entity dominant in its field of operation" means an entity which is at least 20 percent owned by an entity that is dominant in its field of operation, or by a partner, officer, director, majority stockholder or the equivalent, of an entity dominant in that field of operation.        "Agency" means each board, commission, department, officer, or other administrative office or unit of the state.        "Appeal" means a dispute of a notice of assessment, refund denial, or other department action which may culminate in a contested case proceeding. “Protest” has the same meaning as appeal.        "Appeals section" means the section of the department designated by the director to administer the informal stage of the appeals process and participate in contested case proceedings for appeals before the department.        "Clerk of the hearings section" means the clerk of the hearings section of the departmentlegal services and appeals division or the clerk’s designee.        "Contested case" means a proceeding, including licensing, in which the legal rights, duties or privileges of a party are required by constitution or statute to be determined by an agency after an opportunity for an evidentiary hearing. This term also includes any matter defined as a no factual dispute contested case as provided in Iowa Code section 17A.10A.        "Declaratory order" means an order issued pursuant to Iowa Code section 17A.9.        "Department" means the Iowa department of revenue.        "Department of inspections and appeals" means the state department created by Iowa Code chapter 10A.        "Director" means the director of the department or the director’s authorized representative.        "Division of administrative hearings" means the division of the department of inspections and appeals responsible for holding contested case proceedings pursuant to Iowa Code chapter 10A.        "Dominant in its field of operation" means having more than 20 full-time equivalent positions and more than $1 million in annual gross revenues.        "Entity" means any taxpayer other than an individual or sole proprietorship.        "GovConnectIowa" means the e-services portal of the department.        "Informal stage" means the procedures of the appeals process described in rule 701—7.11(17A).        "Intervene" means to file with the department a petition requesting that the petitioner be allowed to intervene in the proceedings for a declaratory order currently under the department’s consideration.        "Issuance" means thedate specified in the decision or order, the date of mailing of a decision, or order or date of deliveryof the decision or order if service is by other means unless another date is specified in the order.        "Last-known address" does not necessarily mean the taxpayer’s actual address but instead means the last address that the taxpayer makes known to the department by tax typemeans the last address associated with a taxpayer by tax type, as determined pursuant to rule 701—7.33(421). Thus, for instance, receipt by the department of a taxpayer’s change of address from a third person not authorized to act on behalf of the taxpayer (e.g., an employer who had filed a Form W-2 showing a new taxpayer address) is not notice to the department of a change of address of the taxpayer. However, the filing by the taxpayer of a tax return for a year subsequent to the year for which a notice is required would be notification to the department of a change of address, provided a reasonable amount of time is allowed to process such information and transfer it to the department’s central computer system. Taxpayers should be aware of their need to update their address with the department in order to receive refunds of tax and notices of assessments and denial of a claim for refund. When such a notice is sent to a “taxpayer’s last-known address,” the notice is legally effective even if the taxpayer never receives it.        "License" means the whole or a part of any permit, certificate, approval, registration, charter, or similar form of permission required by statute.        "Licensing" means the department process respecting the grant, denial, renewal, revocation, suspension, annulment, withdrawal, or amendment of a license.        "Motion" has the same meaning as the term is defined in Iowa R. Civ. P. 1.431.        "Party" means each person or agency named or admitted as a party, or properly seeking and entitled as of right to be admitted as a party, including intervenors.        "Person" means any individual; estate; trust; fiduciary; partnership, including limited liability partnership; corporation;, including limited liability corporationcompany; association; governmental subdivision; or public or private organization of any character or any other person covered by the Act other than an agency.        "Petition" means application for declaratory order, request to intervene in a declaratory order under consideration,or application for initiation of proceedings to adopt, amend or repeal a rule or document filed in licensing.        "Pleadings" means protestappeal, answer, reply or other similar document filed in a contested case proceeding, including contested cases involving no factual dispute.        "Presiding officer" means the person designated to preside over a proceeding involving the department. A presiding officer of a contested case involving the department will be either the director or a qualified administrative law judge appointed, pursuant to Iowa Code chapter 17A, by the division of administrative hearings established pursuant to Iowa Code section 10A.801. In cases in which the department is not a party, at the director’s discretion, the presiding officer may be the director or the director’s designee. The presiding officer of an administrative appeal is the director of the department.        "Proceeding" means informal, formal and contested case proceedings.        "Proposed decision" means the presiding officer’s recommended findings of fact, conclusions of law, decision, and order in a contested case in which the director did not preside.        "Protester" means any person entitled to file a protest which may culminate in a contested case proceeding.        "Provision of law" means the whole or part of the Constitution of the United States of America or the Constitution of the State of Iowa, or of any federal or state statute, court rule, executive order of the governor, or rule of the department.        "Review unit" means the unit composed ofthe appeals section of the department employees designated by the director andany of the attorney general’s staff who have been assigned to review protestsappeals filed by taxpayers.        "Rule" means a department statement of general applicability that implements, interprets, or prescribes law or policy, or that describes the organization, procedure, or practice requirements of the department. Notwithstanding any other statute, the term includes an executive order or directive of the governor which creates an agency or establishes a program or which transfers a program between agencies established by statute or rule. The term includes the amendment or repeal of an existing rule, but does not include the excluded items set forth in Iowa Code section 17A.2(11).        "Small business" means any entity including, but not limited to, an individual, partnership, corporation, joint venture, association, or cooperative. A small business is not an affiliate of an entity dominant in its field of operation. A small business has either 20 or fewer full-time equivalent positions or less than $1 million in annual gross revenues in the preceding fiscal year.the same as defined in Iowa Code section 17A.4A(8)“a.”        "Taxpayer interview" means any in-person contact between an employee of the department and a taxpayer or a taxpayer’s representative which has been initiated by a department employee.        "Taxpayer’s representative" "authorized taxpayer’s representative" means an individual authorized to practice before the department under rule 701—7.6(17A)Iowa Code section 421.59; an individual who has been named as an authorized representative on a fiduciary return of income form filed under Iowa Code section 422.14, or a tax return filed under Iowa Code chapter 450, “Inheritance Tax,” or chapter 450B, “Qualified Inheritance Tax”; or for proceedings before the department, any other individual the taxpayer designates who is named on a valid power of attorney if appearing on behalf of another.Unless otherwise specifically stated, the terms used in these rules promulgated by the department shall have the meanings defined by the Act.       This rule is intended to implement Iowa Code chapter 17A.

    701—7.3(17A) Business hoursHow to submit an appeal, petition or related documents; service.  Appeals, petitions, and other documents governed by this chapter may be filed electronically, by mail, or in person, in accordance with the limits described below.The principal office of the department in the Hoover State Office Building in Des Moines, Iowa, shallgenerally be open between the hours of 8 a.m. and 4:30 p.m. each weekday, except Saturdays, Sundays, and legal holidays as prescribed in Iowa Code section 4.1(34), for the purpose of receiving protests, pleadings, petitions, motions, or requests for public information or copies of official documents or for the opportunity to inspect public records.    7.3(1) Ways to submit an appeal, petition, or related document.  All documents or papers required to be filed with the department by these rules shall be filed with the designated clerk of the hearings section in the principal office of the department in the Hoover State Office Building, Des Moines, Iowa 50319. Requests for public information or copies of official documents or for the opportunity to inspect public records shall be made in the director’s office at the department’s principal office.Unless otherwise specified in another rule in this chapter, a person may submit an appeal, petition, related document, or document filed during an appeal or pending petition:    a.    By submitting through GovConnectIowa. As of November 15, 2021, GovConnectIowa is available for filing petitions for declaratory order, petitions for rule making, and petitions for rule waiver for all tax types, but is only available for filing appeals for the following tax types: sales, consumers/retailers use, E911, withholding, motor fuel, hotel/motel, local option sales, automobile rental, and water service excise, and tax credits and distributions associated with these tax types.    b.    By email to idrhearings@iowa.gov.    c.    By mail to Legal Services and Appeals Division, Iowa Department of Revenue, P.O. Box 14457, Des Moines, Iowa 50306-3457.    d.    By hand delivery to the department’s customer service desk in the Hoover State Office Building, First Floor, 1305 East Walnut Street, Des Moines, Iowa 50319, during regular business hours.    7.3(2) Filings with the department of inspections and appeals and service upon the department during contested case proceedings.  All documents or papersrequired or permitted to be filed with an administrative law judge appointed by the division of administrative hearings to be a presiding officerin a contested case shall be filed with the Department of Inspections and Appeals, Administrative Hearings Division, Third Floor, Wallace State Office Building, Des Moines, Iowa 50319department of inspections and appeals in accordance with rule 481—10.12(17A). All papers or documents required or permitted by this chapter to be filed with the department or the director and served upon the opposing party or other person in a contested case shall be served by ordinary mail unless another rule specifically refers to another method.    7.3(3) Service by the department.  All notices required by this chapter to be served on parties or persons by the department or presiding officer that are not currently pending before an administrative law judge shall be served by ordinary mail unless the taxpayer has elected to receive communications exclusively through GovConnectIowa, pursuant to rule 701—8.6(421). For taxpayers registered in GovConnectIowa, posting the document in the taxpayer’s GovConnectIowa account constitutes service or notice of the document. For taxpayer representatives registered in GovConnectIowa, posting the document in the taxpayer representative’s GovConnectIowa account constitutes service or notice of the document. For nonregistered taxpayers or taxpayer representatives, documents will be served by ordinary mail. When this nonregistered mailing is required, however, the department may note on the docket the parties served and the method of service instead of filing a certificate of service. With respect to any notice, correspondence, or communication served electronically, response deadlines shall be calculated from the date the taxpayer is notified electronically of the correspondence or the item is mailed, whichever is earlier.       This rule is intended to implement Iowa Code chapter 17A.

    701—7.4(17A) Computation of time, filing of documentsTime requirements for filings.  In computing any period of time prescribed or allowed by these rules or by an applicable statute, the day of the act, event or default from which the designated period of time begins to run shall not be included. The last day of the period so computed shall be included, unless it is a Saturday, Sunday or legal holiday, in which event the period runs until the end of the next day which is not a Saturday, Sunday or legal holiday. Legal holidays are prescribed in     7.4(1) Computing time.  Time shall be computed in accordance withIowa Code section 4.1(34).For electronic submissions, in addition to the requirements described in Iowa Code section 4.1(34), local time for the state of Iowa applies.    7.(1) 7.4(2) Date of filing.  All documents or papers required to be filed with the department shall be considered as timely filed if they are either received by the department’s principal office or are postmarked for delivery to the department’s principal office within time limits as prescribed by law or by rules or orders of the department.The date of filing for appeal requests, petitions, or other related documents shall be:    a.    If sent electronically either through GovConnectIowa or as described on the department’s website, determined by the date on which the electronic submission was completed.     b.    If sent by regular mail, the date postmarked on the envelope sent to the department’s principal office or, if the postmark is not available, on the date the appeal is stamped as received by the department.    c.    If hand delivered, the date the appeal is stamped as received by the department.     7.4(2)   In all cases where the time for the filing of a protest or the performance of any other act shall be fixed by law, the time so fixed by law shall prevail over the time fixed in these rules.       This rule is intended to implement Iowa Code chapter 17A.

        ITEM 3.    Rescind rule 701—7.5(17A) and adopt the following new rule in lieu thereof:

    701—7.5(17A) Form and style of documents.      7.5(1) Requirements applicable to all filings under this chapter.      a.    Signatures.Signatures must meet the requirements of 701—subrule 8.2(6). The signature shall constitute a certification that the signer has read the document; that, under penalty of perjury, the signer declares that to the best of the signer’s knowledge and belief, the information contained in the document is true, correct, and complete; and that no statement contained in the document is misleading.    b.    Citations.Citations may be italicized or underlined.     7.5(2) Paper.  Any paper documents that are allowed or required to be submitted by this chapter must:    a.    Be clear and legible.    b.    Be on white paper.    c.    Be on the applicable department appeal, application for reinstatement, or petition form available on the department’s forms website tax.iowa.gov/forms under the category “Applications and Other” or, if not on the department’s form, include a proper caption on the first page.    d.    Include a signature.    e.    Include copies as herein provided or as specified in other applicable rules.     7.5(3) Email.  Any documents allowed or required to be filed by email under this chapter must be:     a.    A document in PDF, Microsoft Word, Microsoft Excel, or image format that complies with subrules 7.5(1) and 7.5(2), or    b.    The body of an email that meets all of the requirements of subrules 7.5(1) and 7.5(2).     7.5(4) GovConnectIowa.  Any documents allowed or required to be filed through GovConnectIowa under this chapter must be:    a.    A document in PDF, Microsoft Word, Microsoft Excel, or image format that complies with subrules 7.5(1) and 7.5(2) that is properly uploaded and properly submitted through GovConnectIowa.    b.    Completed and submitted on the applicable form provided on GovConnectIowa.       This rule is intended to implement Iowa Code chapters 17A and 554D and sections 421.17 and 421.27A.

        ITEM 4.    Amend rules 701—7.7(17A) to 701—7.10(17A) as follows:

    701—7.7 701—7.10(17A) Resolution of tax liability.  Unless a proper protest has been filed as provided hereinafter, persons interested in any tax liability, refund claim, licensing or any other tax matters shall discuss the resolution of such matters with appropriate personnel.In the event that a proper protestappeal has been filed as provided hereinafter, the appropriateother department personnel, when authorized by the review unitappeals section, shall have the authority to discuss the resolution of any matter in the protestappeal either with the protestertaxpayer or the protester’staxpayer’s representative. The appropriate personnel shall report their activities in this regard to the review unitappeals section, and the unitsection shall be authorized to approve or reject any recommendations made by the appropriate personnel to resolve a protestan appeal.       This rule is intended to implement Iowa Code chapter 17A.

    701—7.8 701—7.9(17A) ProtestAppeals.  Any person wishing to contest an assessment, denial of refund claim, or any other department action, except licensing, which may culminate in a contested case proceeding, shall file a protestan appeal, in writing, with the department within the time prescribed by the applicable statute or rule for filing notice of application to the director for a hearing. The protestappeal must either be delivered to the department by electronic means or by United States Postal Service or a common carrier, by ordinary, certified, or registered mail, directed to the attention of the clerk of the hearings section at P.O. Box 14457, Des Moines, Iowa 50306, or be personally delivered to the clerk of the hearings section or served on the clerk of the hearings section by personal service during business hours. For the purpose of mailing, a protest is considered filed on the date of the postmark. If a postmark date is not present on the mailed article, then the date of receipt of protest will be considered the date of mailing. Any document, including a protest, is considered filed on the date personal service or personal delivery to the office of the clerk of the hearings section for the department is made. See Iowa Code section 622.105 for the evidence necessary to establish proof of mailingfiled as described in rule 701—7.3(17A).    7.8(1) 7.9(1) Deadlines.  The period for appealing department action relating to refund claims is the same statutory period as that for contesting an assessment. Failure to timely file a written protestproper appeal will be construed as a waiver of opposition to the matter involved unless, on the director’s own motion, pursuant to statutory authority, the powers of abatement or settlement are exercised. The review unit created within the department by the director to review protests as provided in rule 701—7.11(17A) may seek dismissal of protestsappeals which are not in the proper form as provided by this rule. See subrule 7.11(2)7.12(2) for dismissals.    7.8(2) 7.9(2) Appealing refund claims that have not been reviewed within six months.  If the department has not granted or denied a filed refund claim within six months of the filing of the claim, the refund claimant may file a protestan appeal. Even though a protestan appeal is so filed, the department is entitled to examine and inspect the refund claimant’s records to verify the refund claim.    7.8(3) 7.9(3) Paying assessment in order to appeal refund claim denial.  Notwithstanding the above, the taxpayer who fails to timely protestappeal an assessment may contest the assessment by paying the whole assessed tax, interest, and penalty, and by filing a refund claim within the time period provided by law for filing such claim. However, in the event that such assessment involves divisible taxes which are not timely protestedappealed, namely, an assessment which is divisible into a tax on each transaction or event, the taxpayer may contest the assessment by paying a portion of the assessment and filing a refund claim within the time period provided by law. In this latter instance, the portion paid must represent any undisputed portion of the assessment and must also represent the liability on a transaction or event for which, if the taxpayer is successful in contesting the portion paid, the unpaid portion of the assessment would be canceled. Flora v. United States, 362 U.S. 145, 4 L.Ed. 2d 623, 80 S.Ct.630 (1960); Higginbotham v. United States, 556 F.2d 1173 (4th Cir. 1977); Steele v. United States, 280 F.2d 89 (8th Cir. 1960); Stern v. United States, 563 F. Supp. 484 (D. Nev. 1983); Drake v. United States, 355 F. Supp. 710 (E.D. Mo. 1973). Any such protestappeal filed is limited to the issues covered by the amounts paid for which a refund was requested and denied by the department. Thereafter, if the department does not grant or deny the refund within six months of the filing of the refund claim or if the department denies the refund, the taxpayer may file a protestan appeal as authorized by this rule.    7.8(4) 7.9(4) Divisible taxes.  All of the taxes administered and collected by the department can be divisible taxes, except individual income tax, fiduciary income tax, corporation income tax, franchise tax, and statewide property tax. The following noninclusive examples illustrate the application of the divisible tax concept.    7.8(5) 7.9(5) Who may be named in an appeal.  The protestappeal shall be broughtin the name of the aggrieved taxpayer. The appeal may be filed by and in the name of the interested or affected personaggrieved taxpayer or by and in the full descriptive name of the fiduciaryauthorized representative described in Iowa Code section 421.59(2), Iowa Code chapter 633B, or subrule 7.6(6) legally entitled to institute a proceeding on behalf of the person, or by an intervenor in contested case proceedings. In the event of a variance indiscrepancy between the name set forth in the protestappeal and the correct name, a statement of the reason for the discrepancy shall be set forth in the protestappeal.    7.8(6) 7.9(6) Form and content of the appeal.      a.    Department forms.Appeals may be filed using the form available on GovConnectIowa or the form available on the department’s website, tax.iowa.gov/forms.    b.    Manually created appeals.Persons who do not use GovConnectIowa or the form available on the department’s website shall use the following format:    (1)   The protestappeal shall contain a caption in the following form:BEFORE THE DEPARTMENT OF REVENUEHOOVER STATE OFFICE BUILDINGDES MOINES, IOWAIN THE MATTER OF _________________*(state taxpayer’s name and address and*PROTESTAPPEALdesignate type of proceeding, e.g.,*Docket No. ___________________income tax refund claim)*(filled in by Department)    (2)   The protestappeal shall substantially state in separate numbered paragraphs the following:    a.    1.   Proper allegations showing:(1)   Date of department action, such as the assessment noticeof assessment, refund denial, etc.;(2)   Whether the protestertaxpayer failed to timely appeal the assessment and, if so, the date of payment and the date of filing of the refund claim;(3)   Whether the protestappeal involves the appeal of a refund claim after six months from the date of filing the refund claim because the department failed to deny the claim;(4)   Copies of the documented department action, such as the assessment noticeof assessment, refund claim, and refund denial letter;(5)   Other items that the protestertaxpayer wishes to bring to the attention of the department; and(6)   A request for attorney fees, if applicable.    b.    2.   The type of tax, the taxable period or periods involved, and the amount in controversy.    c.    3.    Each error alleged to have been committed, listed in a separate paragraph. For each error listed, an explanation of the error and all relevant facts related to the error shall be provided.    d.    4.   Reference to any particular statute or statutes and any rule or rules involved, if known.    e.    5.   Description of records or documents that were not available or were not presented to department personnel prior to the filing of the protestappeal, if any. Copies of any records or documents that were not previously presented to the department shall be provided.    f.    6.   Any other matters deemed relevant and not covered in the above paragraphs.    g.    7.   The desire of the protestertaxpayer to waive informal or contested case proceedings if waiver is desired. Unless the protester so indicates a waiver, informal procedures will be initiatedexpedite proceedings.See rule 701—7.13(17A,421) for more details on expedited proceedings.    h.    8.   A statement setting forth the relief sought by the protestertaxpayer.    i.    9.   The signature of the protestertaxpayer or that of the protester’staxpayer’s representative, the addresses of the protester and of the protester’s representative, and the telephone number of the protester or the protester’s representative. A copy of the power of attorney for the protester’s representative shall be attached.If it is signed by the taxpayer, include the address and telephone number of the taxpayer in the signature block. If it is signed by a taxpayer representative, include the address and telephone number of the taxpayer representative in the signature block. Appeals submitted by a taxpayer’s representative must have a valid IDR power of attorney form or representative certification form, as applicable in accordance with rule 701—7.6(17A), on file with the department, or one should be included with the appeal.    7.9(8)   An original and two copies of the protest shall be filed with the clerk of the hearings section. Upon receipt of the protest, the clerk of the hearings section shall register receipt of the protest, docket the protest, and assign a number to the case. The assigned number shall be placed on all subsequent pleadings filed in the case.     7.8(9) 7.9(7) Amendments.  The protestertaxpayer may amend the protestappeal at any time prior to the commencement of the evidentiary hearingbefore a responsive pleading is filed. Amendments to the appeal after a responsive pleading has been filed may be allowed with the consent of the other parties or at the discretion of the presiding officer who may impose terms or grant a continuance. The department may request that the protestertaxpayer amend the protestappeal for purposes of clarification.    7.9(10)   Upon the filing of an answer or if a demand for contested case is made by the protester, the clerk of the hearings section will transfer the protest file to the division of administrative hearings within 30 days of the date of the filing of the answer or the demand for contested case, unless the director determines not to transfer the case. If a party objects to a determination under rule 701—7.17(17A), the transfer, if any, would be made after the director makes a ruling on the objection.    7.8(11) 7.9(8) Denial of renewal of vehicle registration or denial of issuance or renewal, or suspension, of a driver’s license.      a.    A person who has had an application for renewal of vehicle registration denied, has been denied the issuance of a driver’s license or the renewal of a driver’s license, or has had a driver’s license suspended may file a protestan appeal with the clerk of the hearings section if the denial of the issuance or renewal or the suspension is because the person owes delinquent taxes.    b.    The issues raised in a protestan appeal by the person, which are limited to a mistake of fact, may include but are not limited to:    (1)   The person has the same name as the obligor but is not the correct obligor;    (2)   The amount in question has been paid; or    (3)   The person has made arrangements with the department to pay the amount.       This rule is intended to implement Iowa Code chapter 17A.

    701—7.9 701—7.8(17A) Identifying details.      7.9(1) 7.8(1)   Any person may file a motion to delete identifying details concerning the person from any document relating to any proceeding as defined in rule 701—7.2(421,17A) prior to disclosure to members of the public. Such a motion must be filed with the clerk of the hearings section if the motion is filed prior to the commencement of a contested case, which is before the notice for hearing is issued. If the motion is filed during a contested case proceeding pending before an administrative law judge and before the administrative law judge has entered a proposed decision on the case or has entered a closing order, the motion must be filed with and ruled upon by the administrative law judge. Otherwise, the motion must be filed with the clerk of the hearings section and ruled upon by the director. The motion shall be filed simultaneously with the presentation of the privacy or trade secret information under circumstances whereby the information may be disclosed to the public and before the issuance of any opinion, order or decision.    7.9(2) 7.8(2)   If the motion concerns information which is not a part of a contested case, the motion shall be in the form of a request to delete identifying details; if part of a contested case, the motion shall be in the form of a motion to delete identifying details. All motions to delete identifying details shall conform to subrule 7.17(5)7.19(5).    a.    The motion shall contain the following:    (1)   The name of the person requesting deletion and the docket number of the proceeding, if applicable;    (2)   The legal basis for the motion for deletion, which is either that release of the material would be a clearly unwarranted invasion of personal privacy or the material is a trade secret. A corporation may not claim an unwarranted invasion of privacy;    (3)   A precise description of the document, report, or other material in the possession of the department from which the deletion is sought and a precise description of the information to be deleted. If deletion is sought from more than one document, each document and the materials sought to be deleted from it shall be listed in separate paragraphs. Also contained in each separate paragraph shall be a statement of the legal basis for the deletion requested in that paragraph, which is that release of the material sought to be deleted is a clearly unwarranted invasion of privacy or the material is a trade secret and the material serves no public purpose.    b.    An affidavit in support of deletion must accompany each motion. The affidavit must be sworn to by a person familiar with the facts asserted within it and shall contain a clear and concise explanation of the facts justifying deletion, not merely the legal basis for deletion or conclusionary allegations.    c.    All affidavits shall contain a general and truthful statement that the information sought to be deleted is not available to the public from any source or combination of sources, direct or indirect, and a general statement that the release would serve no public purpose.    d.    The burden of showing that deletion is justified shall be on the movant. The burden is not carried by mere conclusionary statements or allegations, for example, that the release of the material would be a clearly unwarranted invasion of personal privacy or that the material is a trade secret.    e.    That the matter sought to be deleted is part of the pleadings, motions, evidence, and the record in a contested case proceeding otherwise open for public inspection and that the matter would otherwise constitute confidential tax information shall not be grounds for deletion (1992 Op. IA Att’y Gen. 1).    f.    The ruling on the motion shall be strictly limited to the facts and legal bases presented by the movant, and the ruling shall not be based upon any facts or legal bases not presented by the movant.       This rule is intended to implement Iowa Code chapter 17A.

    701—7.10 701—7.7(17A) Docket.  The clerk of the hearings section shall maintain a docket of all proceedings, and each of the proceedings shall be assigned a number. Every matter coming within the purview of these rulesthis chapter shall be assigned a docket number which shall be the officialidentification numberof the matter for the purposes of identification. Upon receipt of a protest, a petition for declaratory order or a petition to initiate rule-making proceedings, the proceeding will be docketed and assigned a number, and the parties notified thereof.The parties will be notified of the docket number. The number shall be placed by the parties on all papersdocuments thereafter filed in the proceeding. After the transfer of a case to the division of administrative hearings for contested case proceedings, that division may assign aanother docket number to the case and, in that event, theboth docket numbernumbers shall be placed by the parties on all papersdocuments thereafter filed in the proceeding.       This rule is intended to implement Iowa Code chapter 17A.

        ITEM 5.    Amend rule 701—7.11(17A) as follows:

    701—7.11(17A) Informal procedures and dismissals of protestsstage of the appeals process.   Informal procedures. PersonsWhen an appeal is filed, the parties are encouraged to utilize the informal procedures provided herein so thatdescribed in this rule to reach a settlement may be reachedresolution between the parties without the necessity of initiating contested case proceedings. Therefore, unlessThat resolution may be the granting of the appeal in full or in part, the denial of the appeal in full or in part, or an agreement to settle the matter. Unless, in accordance with rule 701—7.13(17A,421), the protester indicates a desire to waive the informal procedures in the protesttaxpayer demands a contested case proceeding or an expedited hearing is agreed to or the department waives informal procedures upon notification to the protestertaxpayer, such informal procedures will be initiated as herein provided upon the filing of a proper protestappeal.    7.() 7.11(1) Appeals section review.  a.    Review unit. A review unit is created within the department andWhen an appeal is filed, the review unit, subject to the control of the directoror the division administrator of the legal services and appeals division, the unit will:    (1)   a.    Review and evaluate the validity of all protests made by taxpayers from the department actionthe appeal.    (2)   b.    Determine the correct amount of tax owing or refund due.    (3)   c.    Determine the best method of resolving the dispute between the protestertaxpayer and the department.    (4)   d.    Take further action regarding the protestappeal, including any additions and deletions to the audit, as may be warranted by the circumstances to resolve the protestappeal, including a request for an informal conference.    (5)   e.    Determine whether the protestappeal complies with rule 701—7.8(17A)701—7.9(17A) and request any amendments to the protestappeal or additional information.    7.() 7.11(2) Determinations, conferences.  b.    The review unit may concede any items contained in the protestappeal which it determines should not be controverted by the department. If the protestertaxpayer has not waived informal procedures, the review unit may request that the protestertaxpayer and the protester’staxpayer’s representative, if any, attend an informal conference with the review unit to explore the possibility of reaching a settlement without the necessity of initiating contested case proceedings orthe possibility of narrowing the issues presented in the protestappeal if no settlement can be made. The review unit may request clarification of the issues from the protestertaxpayer or further information from the protestertaxpayer or third persons.    7.() 7.11(3) Findings.  c.    Findings dealing withA position letter addressing the issues raised in the protestappeal may be issuedto the taxpayer or taxpayer’s representative unless the issues may be more expeditiously determined in another manner or it is determined that findings aresuch a letter is unnecessary. The protester will be notified of the decision on the issues in controversy.    7.() 7.11(4) Format of review.  d.    Nothing herein will prevent the review unit and the protestertaxpayer from mutually agreeing on the manner in which the protestappeal will be informally reviewed.    7.() 7.11(5) Settlements.  e.    Settlements.Only the director, the deputy director, or the division administrator of the legal services and appeals division may approve and sign settlements of appeals. If a settlement is reached during informal procedures, the clerk of the hearings section must be notified. Aa closing order stating that a settlement was reached by the parties and that the case is terminated shall be issued by the director and served uponprovided to all parties.    7.11(2) Dismissal of protests.      a.    Whether informal procedures have been waived or not, the failure of the protester to timely file a protest or to pursue the protest may be grounds for dismissal of the protest by the director or the director’s designee. If the protest is so dismissed, the protester may file an application for reinstatement of the protest for good cause as provided in paragraph 7.11(2)“c.” Such application must be filed within 30 days of the date of the dismissal notice. Thereafter, the procedure in paragraph 7.11(2)“c” should be followed. If informal procedures have not been waived, the failure of the protester to present evidence or information requested by the review unit shall constitute grounds for the director or the director’s designee to dismiss the protest. For purposes of this subrule, an evasive or incomplete response will be treated as a failure to present evidence or information. The failure of the protester to file a protest in the format required by rule 701—7.8(17A) may be grounds for dismissal of the protest by the director or the director’s designee.    b.    If the department seeks to have the protest dismissed, the review unit shall file a motion to dismiss with the clerk of the hearings section and serve a copy of the motion on the protester. The protester may file a resistance to the motion within 20 days of the date of service of the motion. If no resistance is so filed, the director or the director’s designee shall immediately enter an order dismissing the protest. If a resistance is filed, the review unit has 10 days from the date of the filing of the resistance to decide whether to withdraw its motion and so notify the protester and the clerk of the hearings section. If no such notice is issued by the review unit within the 10-day period, the protest file will be transferred to the division of administrative hearings, which shall issue a notice for a contested case proceeding on the motion as prescribed by rule 701—7.14(17A), except that the issue of the contested case proceeding shall be limited to the question of whether the protest shall be dismissed. Thereafter, rule 701—7.17(17A) pertaining to contested case proceedings shall apply in such dismissal proceedings.    c.    If a motion to dismiss is filed and is unresisted, a protest so dismissed may be reinstated by the director or the director’s designee for good cause as interpreted by the Iowa supreme court in the case of Purethane, Inc. v. Iowa State Board of Tax Review, 498 N.W.2d 706 (Iowa 1993) if an application for reinstatement is filed with the clerk of the hearings section within 30 days of the date the protest was dismissed. The application shall set forth all reasons and facts upon which the protester relies in seeking reinstatement of the protest. The review unit shall review the application and notify the protester whether the application is granted or denied. If the review unit denies the application to reinstate the protest, the protester has 30 days from the date the application for reinstatement was denied in which to request, in writing, a formal hearing on the reinstatement. When a written request for formal hearing is received, the protest file will be transferred to the division of administrative hearings, which shall issue a notice as prescribed in rule 701—7.14(17A), except that the issue of the contested case proceeding shall be limited to the question of whether the protest shall be reinstated. Thereafter, rule 701—7.17(17A) pertaining to contested case proceedings shall apply in such reinstatement proceedings.    d.    Once contested case proceedings have been commenced, whether informal proceedings have been waived or not, it shall be grounds for a motion to dismiss that a protester has either failed to diligently pursue the protest or refuses to comply with requests for discovery set forth in rule 701—7.15(17A). Such a motion must be filed with the presiding officer.    e.    Notwithstanding other provisions of this subrule, if the director finds that a protest is not timely filed, including a failure within a reasonable time to file a protest in proper form after notice to the protester by the hearings section, the director, without the filing of a motion to dismiss, may dismiss the protest and shall notify the protester that the protest has been dismissed. With respect to a protest so dismissed, thereafter the provisions of paragraph 7.11(2)“c” shall apply.       This rule is intended to implement Iowa Code section 17A.10.

        ITEM 6.    Renumber rules 701—7.12(17A) to 701—7.20(17A) as 701—7.14(17A) to 701—7.22(17A).

        ITEM 7.    Adopt the following new rules 701—7.12(17A,421) and 701—7.13(17A,421):

    701—7.12(17A,421) Dismissal of appeals.      7.12(1) Untimely appeals.  Appeals that are not filed by the deadlines described in statute or rule shall be dismissed by the director or the department employee designated by the director. Such dismissals do not require the filing of a motion to dismiss as described in subrule 7.12(3). If the appeal is so dismissed, the taxpayer may file an application for reinstatement of the appeal as provided in paragraph 7.12(1)“b.” Such application must be filed within 30 days of the date of the dismissal notice. Thereafter, the procedure in subrule 7.12(4) should be followed.     a.    Grounds for reinstatement of an untimely appeal.Grounds for reinstating an untimely appeal are limited to the following:     (1)   The department fails to do at least one of the following:    1.   Mail the notice of assessment, refund denial, or other notice of department action as required by Iowa Code section 421.60(2)“c”(1) through 421.60(2)“c”(3); or    2.   Personally deliver such notice as required by Iowa Code section 421.60(2)“c”(1) through 421.60(2)“c”(3).For purposes of this rule, “last-known address” and “personal delivery” mean the same as described in rule 701—7.33(421).     (2)   If the department fails to comply with the requirements of Iowa Code section 421.60(2)“b.”    b.    Content of the application for reinstatement.The application shall set forth all reasons and facts upon which the taxpayer relies in seeking reinstatement of the appeal and the grounds that are relevant. Supporting documentation must be supplied. The review unit shall review the application and notify the taxpayer whether the application is granted or denied.    7.12(2) Failure to follow the required format.  The failure of the taxpayer to file an appeal in the format required by rule 701—7.9(17A) may also be grounds for dismissal of the appeal by the director or the department employee designated by the director. Such dismissals do not require the filing of a motion to dismiss as described in subrule 7.12(3). The director or the department employee designated by the director shall notify the taxpayer of the format issue and provide the taxpayer with 30 days to correct the deficiencies. If the taxpayer fails to correct the format issues within 30 days, the protest may only be reinstated under the process and grounds described in subrule 7.12(3).     7.12(3) Failure to pursue the appeal at the informal stage.  If the protest was filed timely and informal procedures were initiated, the failure of the taxpayer to present evidence or information requested by the review unit, including the failure to respond to a position letter or information request, shall constitute grounds for the director or the director’s designee to dismiss the appeal. For purposes of this subrule, an evasive or incomplete response will be treated as a failure to present evidence or information. Such dismissals require a motion to be filed by the review unit.    a.    Procedures for motions to dismiss.If the department seeks to dismiss the appeal, the review unit shall file a motion to dismiss with the clerk and serve a copy of the motion on the taxpayer. The taxpayer may file a resistance to the motion within 20 days of the date of service of the motion. If no resistance is so filed, the director or the director’s designee shall immediately enter an order dismissing the appeal. If a resistance is filed, the review unit has ten days from the date of the filing of the resistance to decide whether to withdraw its motion and so notify the taxpayer and the clerk. If no such notice is received by the clerk within the ten-day period, the appeal file will be transferred to the division of administrative hearings, which shall issue a notice for a contested case proceeding on the motion as prescribed by rule 701—7.16(17A), except that the issue of the contested case proceeding shall be limited to the question of whether the appeal shall be dismissed. Thereafter, rule 701—7.19(17A) pertaining to contested case proceedings shall apply in such dismissal proceedings.    b.    Grounds for reinstatement of dismissed appeals.If a motion to dismiss is filed and is unresisted, the appeal that was dismissed may be reinstated by the director or the director’s designee for good cause if an application for reinstatement is filed with the clerk within 30 days of the date the appeal was dismissed and following the conclusion of the procedure in subrule 7.12(4). For purposes of this rule, “good cause” shall mean the same as “good cause” in Iowa Rule of Civil Procedure 1.977.     c.    Content and review of the application for reinstatement.The application shall set forth all reasons and facts upon which the taxpayer relies in seeking reinstatement of the appeal and the grounds that are relevant. Supporting documentation must be supplied. The director shall refer the application to the review unit for review and notify the taxpayer whether the application is granted or denied. Thereafter, the procedure in subrule 7.12(4) should be followed.     7.12(4) Denial of the application.  If the review unit denies the application to reinstate the appeal, the taxpayer has 30 days from the date the application for reinstatement was denied in which to request, in writing, a formal hearing on the reinstatement. The taxpayer shall send the written request to the clerk. When a written request for formal hearing is received, the appeal file will be transferred to the division of administrative hearings, which shall issue a notice as prescribed in rule 701—7.16(17A), except that the issue of the contested case proceeding shall be limited to the question of whether the appeal shall be reinstated. Thereafter, rule 701—7.19(17A) pertaining to contested case proceedings shall apply in such reinstatement proceedings. If the taxpayer does not respond to a denial of the application for reinstatement within 30 days of the denial, the appeals section may file a motion to dismiss the application for reinstatement for failure to pursue, in accordance with the procedures described in subrule 7.12(3) above.     7.12(5) Failure to file timely application for reinstatement.  If an application for reinstatement is filed after the 30-day deadline, the application shall be dismissed by the director or the department employee designated by the director.     7.12(6) Dismissal of appeals during contested case proceedings.  Once contested case proceedings have been commenced, whether informal proceedings have been waived or not, it shall be grounds for a motion to dismiss that a taxpayer has either failed to diligently pursue the appeal or has refused to comply with requests for discovery set forth in rule 701—7.17(17A). Such a motion must be filed with the presiding officer.       This rule is intended to implement Iowa Code sections 17A.12, 421.10, 421.60, and 422.28.

    701—7.13(17A,421) Expedited hearings and demands to waive informal proceedings.  Taxpayers that desire to demand a contested case prior to the conclusion of informal proceedings have two options described in detail below.     7.13(1) Expedited cases.  If an appeal is filed that is not of precedential value and the parties desire a prompt resolution of the dispute, the department and the taxpayer may agree to have the case designated as an expedited case. A request for expedited proceedings may be made at any time prior to the commencement of a contested case.     a.    Agreement.The department and the taxpayer shall execute an agreement to have the case treated as an expedited case. In this expedited case, discovery is waived. The provisions of the expedited case agreement shall constitute a waiver of the rights set forth in Iowa Code chapter 17A for contested case proceedings.     b.    Procedures.Upon execution of the expedited case agreement, the department shall file its answer to the appeal with the clerk within 14 days. Within 30 days of the filing of the answer, the clerk shall transfer the appeal file, including a copy of the agreement for expedited proceedings, to the division of administrative hearings. The case shall be docketed for hearing as promptly as the presiding officer can reasonably hear the matter.    c.    Finality of decision.A decision entered in an expedited case proceeding shall not be reviewed by the director or any other court and shall not be treated as a precedent for any other case.    d.    Discontinuance of proceedings.Any time prior to a decision, the taxpayer or the department may request that expedited case proceedings be discontinued.    7.13(2) Waiver of informal proceedings.  Pursuant to Iowa Code section 421.60(2)“g,” a taxpayer may make a written demand for a contested case proceeding after a period of six months from the filing of a proper appeal. Demands made prior to six months will be treated as premature and must be resubmitted six months or later from the filing of the appeal. Upon receipt of a timely written demand, the department shall file its answer within 30 days after receipt of the demand. If the department fails to file its answer within this 30-day period, interest shall be applied in the manner described in the introductory paragraph to rule 701—7.14(17A).        This rule is intended to implement Iowa Code sections 17A.12 and 421.60.

        ITEM 8.    Amend renumbered rules 701—7.14(17A) to 701—7.16(17A) as follows:

    701—7.14(17A) Answer.  TheIf the parties are unable to resolve the appeal informally, or if the parties waive informal proceedings as described in rule 701—7.13(17A,421), the department may, in lieu of findings,shall file an answer to the protestappeal. When findings are issued, theSubject to the limitations in rule 701—7.13(17A,421), the department will file an answer within 30 days of receipt of written notificationdemand for a contested case hearing from the protester stating disagreement with the findingstaxpayer. The answer shall be filed with the clerk of the hearings section.In the case of an appeal of an assessment, failure to answer within the 30-day time period and after a demand for hearing has been made shall result in the suspension of interest from the time that the department was required to answer until the date that the department files its answer. In the case of an appeal of a refund denial, failure to answer within the 30-day time period after a demand for hearing has been made shall result in the accrual of interest payable to the taxpayer at double the rate in effect under Iowa Code section 421.7 from the time the department was required to answer until the date that the department files its answer. Failure to file an answer within 30 days after the demand for contested case will not result in a default judgment for the taxpayer.     7.14(1)   In the event that the protester does not so respond in writing to the findings issued on matters covered by paragraph 7.11(1)“c” within 30 days after being notified, the department may seek dismissal of the protest pursuant to subrule 7.11(2).    7.(2) 7.14(1)   The answer of the department shall be drawn in a manner as provided by the Iowa Rules of Civil Procedure for answers filed in Iowa district courts.    7.(3) 7.14(2)   Each paragraph contained in the answer shall be numbered or lettered to correspond, where possible, with the paragraphs of the protestappeal. An original copy only of theThe answer shall be filed with the clerk of the hearings section for the department and shall be signed by the department’s counsel or representative.    7.(4) 7.14(3)   The department shall forthwithpromptly serve a copy of the answer upon the representative of record or, if there is no representative of record, then upon the protester and shall file proof of service with the clerk of the hearings section at the time of filing of the answertaxpayer when the answer is filed. The department may amend its answer at any time prior to the commencement of the evidentiary hearing.    7.(5) 7.14(4)   The provisions of rule 701—7.12(17A)this rule shall be considered as a part of the informal procedures since a contested case proceeding, at the time of the filing of the answer, has not yet commenced. However, an answer shall be filed pursuant to this rule whether or not informal procedures have been waived by the protestertaxpayer or the department.    7.14(6)   Notwithstanding subrules 7.12(1) through 7.12(5), if a taxpayer makes a written demand for a contested case proceeding, as authorized by rule 701—7.14(17A), after a period of six months from the filing of a proper protest, the department shall file its answer within 30 days after receipt of the demand. If the department fails to file its answer within this 30-day period, interest shall be suspended, if the protest involves an assessment, from the time that the department was required to answer until the date that the department files its answer and, if the protest involves a refund, interest shall accrue on the refund at double the rate from the time the department was required to answer until the date that the department files its answer.    7.(7) 7.14(5)   The department’s answer may contain a statement setting forth whether the case should be transferred to the division of administrative hearings or the director should retain the case for hearing.    7.(8) 7.14(6)   The department’s answer should set forth the basis for retention of the case by the director as provided in subrule 7.17(1)7.19(1). If the answer fails to allege that the case should be retained by the director, the case should be transferred to the division of administrative hearings for contested case proceedings, unless the director determines on the director’s own motion that the case should be retained by the director.    7.14(7)   Upon the filing of an answer, the clerk will transfer the appeal file to the division of administrative hearings within 30 days of the date of the filing of the answer, unless the director determines not to transfer the case. If a party objects to a determination under rule 701—7.19(17A), the transfer, if any, would be made after the director makes a ruling on the objection.       This rule is intended to implement Iowa Code chapter 17A and section 421.60.

    701—7.15(17A) Subpoenas.  Prior to the commencement of a contested case, the department shall have the authority to subpoena books, papers, and records and shall have all other subpoena powers conferred upon it by law. Subpoenas in this case shall be issued by the director or the director’s designee. Once a contested case is commenced, subpoenas must be issued by the presiding officer.       This rule is intended to implement Iowa Code sectionsections 17A.13, 421.9, 421.17, and 422.70.

    701—7.16(17A) Commencement of contested case proceedings.  A demand or request by the protestertaxpayer for the commencement of contested case proceedings must be in writing and filed with the clerk of the hearings section by electronic means,email to the address provided in paragraph 7.3(1)“b,” by mail via the United States Postal Service or common carrier by ordinary, certified, or registered mail in care of the clerk of the hearings section,to the address listed in paragraph 7.3(1)“c,” or by personal service on the office of the clerk of the hearings section during business hours.to the department’s customer service desk as described in paragraph 7.3(1)“d.” The demand or request is considered filed on the date of the postmarkmust be made no sooner than six months or more after the filing of the protest. If the demand or request does not indicate a postmark date, then the date of receipt or the date personal service is made is considered the date of filing. See Iowa Code section 622.105 for the evidence necessary to establish proof of mailing.    7.16(1)   When requesting a contested case hearing with the department of inspections and appeals, the department shall complete a transmittal form consistent with rule 481—10.4(10A).     7.(1) 7.16(2)   At the request of a party or the presiding officer made prior to the issuance of the hearing notice, the presiding officer shall hold a telephone conference with the parties for the purpose of selecting a mutually agreeable hearing date, which date shall be the hearing date contained in the hearing notice. The notice shall be issued within one week after the mutually agreeable hearing date is selected.    7.(2) 7.16(3)   Contested case proceedings will be commenced by the presiding officer by delivery of notice by ordinary mail directed to the parties after a demand or request is made (a) by the protestertaxpayer and the filing of the answer, if one is required, which demand or request may include a date to be set for the hearing, or (b) upon filing of the answer, if a request or demand for contested case proceedings has not been made by the protestertaxpayer. The notice will be given by the presiding officer.    7.(3) 7.16(4)   The presiding officer may grant a continuance of the hearing. Any change in the date of the hearing shall be set by the presiding officer. EitherAny party may apply to the presiding officer for acontinuance or a specific date for the hearing.The presiding officer may grant or deny such requests. The notice shall include:    a.    A statement of the time (which shall allow for a reasonable time to conduct discovery), place and nature of the hearing;    b.    A statement of the legal authority and jurisdiction under which the hearing is held;    c.    A reference to the particular sections of the statutes and rules involved; and    d.    A short and plain statement of the matters asserted, including the issues.    7.(4) 7.16(5)   After the delivery of the notice commencing the contested case proceedings, the parties may file further pleadings or amendments to pleadings as they desirein accordance with this chapter. However, any pleading or amendment thereto which is filed within seven14 days prior to the date scheduled for the hearing or filed on the date of the hearing shall constitute good cause for the party adversely affected by the pleading or amendment to seek and obtain a continuance.       This rule is intended to implement Iowa Code section 17A.12.

        ITEM 9.    Amend renumbered rules 701—7.18(17A) and 701—7.19(17A) as follows:

    701—7.18(17A) Prehearing conference.      7.18(1)   Upon the motion of the presiding officer, or upon the written request of a party, the presiding officer shall direct the parties to appear at a specified time and place before the presiding officer for a prehearing conference to consider:    a.    The possibility or desirability of waiving any provisions of the Act relating to contested case proceedings by written stipulation representing an informed mutual consent;    b.    The necessity or desirability of setting a new date for hearing;    c.    The simplification of issues;    d.    The necessity or desirability of amending the pleadings either for the purpose of clarification, amplification or limitation;    e.    The possibility of agreeing to the admission of facts, documents or records not controverted, to avoid unnecessary introduction of proof;    f.    The procedure at the hearing;    g.    Limiting the number of witnesses;    h.    The names and identification of witnesses and the facts each party will attempt to prove at the hearing;    i.    Conduct or schedule of discovery; and    j.    Such other matters as may aid, expedite or simplify the disposition of the proceeding.    7.18(2)   Any action taken at the prehearing conference shall be recorded in an appropriate order, unless the parties enter uponinto a written stipulation as to such matters or agree to a statement thereof made on the record by the presiding officer.    7.18(3)   When an order is issued at the termination of the prehearing conference, a reasonable time shall be allowed for the parties to present objections on the grounds that the order does not fully or correctly embody the agreementsmade at such conference. Thereafter, the terms of the order or modification thereof shall determine the subsequent course of the proceedings relative to matters the order includes, unless modified to prevent manifest injustice.    7.18(4)   If either party to the contested case proceeding fails to appear at the prehearing conference, fails to requestwithout requesting a continuance, or fails to submitand without submitting evidence or arguments which the party wishes to be considered in lieu of appearance, the opposing party may move for dismissal. The motion shall be made in accordance with subrule 7.17(5)7.19(5).       This rule is intended to implement Iowa Code section 17A.12.

    701—7.19(17A) Contested case proceedings.      7.19(1) Evidentiary hearing.  Unless the parties to a contested case proceeding have, by written stipulation representing an informed mutual consent, waived the provisions of the Act relating to such proceedings, contested case proceedings shall be initiated and culminate in an evidentiary hearing open to the public.    a.    Evidentiary hearings in which the presiding officer is an administrative law judge employed by the division of administrative hearings shall be held at the location designated in the notice of evidentiary hearing. Generally, the location for evidentiary hearings in such cases will be at the principal office of the Department of Inspections and Appeals, Administrative Hearings Division, Third Floor, Wallace State Office Building, Des Moines, Iowa 50319.    b.    If the director retains a contested case, the location for the evidentiary hearing will generally be at the main office of the department at the Hoover State Office Building, FourthFirst Floor, Des Moines, Iowa 5030950319. However, the department retains the discretion to change the location of the evidentiary hearing if necessary. The location of the evidentiary hearing will be designated in the notice of hearing issued by the director.    7.19(2) Determination of presiding officer.  If the director retains a contested case for evidentiary hearing and the department is a party, the initial presiding officer will be the director. If the department is not a party to the contested case retained by the director, the presiding officer may be the director or the director’s designee. Upon determining that a case will be retained and not transferred to the division of administrative hearings, the director shall issue to the parties written notification of the determination which states the basis for retaining the case for evidentiary hearing.    a.    The director may determine to retain a contested case for evidentiary hearing and decision upon the filing by the department of its answer under rule 701—7.12(17A)701—7.14(17A). If the answer failed to allege that the case should be retained by the director and the case was transferred to the division of administrative hearings for contested case proceedings, either party may, within a reasonable time after the issuance of the hearing notice provided in rule 701—7.14(17A)701—7.16(17A), make application to the director to recall and retain the case for hearing and decision. Any such application shall be served upon the assigned administrative law judge or presiding officer.    b.    A protestertaxpayer may file a written objection to the director’s determination to retain the case for evidentiary hearing and may request that the contested case be heard by an administrative law judge or presiding officer and request a hearing on the objection. Such an objection must be filed with the clerk of the hearings sectionby email to the address provided in paragraph 7.3(1)“b,” by mail via the United States Postal Service or common carrier by ordinary, certified, or registered mail in care of the clerk to the address listed in paragraph 7.3(1)“c,” or by personal service to the department’s customer service desk as described in paragraph 7.3(1)“d” within 20 days of the notice issued by the director of the director’s determination to retain the case. The director may retain the case only upon a finding that one or more of the following apply:    (1)   There is a compelling need to expedite issuance of a final decision in order to protect the public health, safety and welfare;    (2)   A qualified administrative law judge is unavailable to hear the case within a reasonable time;    (3)   The case involves significant policy issues of first impression that are inextricably intertwined with the factual issues presented;    (4)   The demeanor of the witnesses is likely to be dispositive in resolving the disputed factual issues;    (5)   The case involves an issue or issues the resolution of which would create important precedent;    (6)   The case involves complex or extraordinary questions of law or fact;    (7)   The case involves issues or questions of law or fact that, based on the director’s discretion, should be retained by the director;    (8)   Funds are unavailable to pay the costs of an administrative law judge and an interagency appeal;    (9)   The request was not timely filed;    (10)   The request is not consistent with a specified statute; andor    (11)   Assignment of an administrative law judge will result in lengthening the time for issuance of a proposed decision, after the case is submitted, beyond a reasonable time as provided in subrule 7.17(8)7.19(8). In making this determination, the director shall consider whether the assigned administrative law judge has a current backlog of submitted cases for which decisions have not been issued for one year after submission.    c.     The director shall issue a written rulingorder specifying the grounds for the decision within 20 days after a request for an administrative law judge is filed. If a party objects to the director’s determination to retain a case for evidentiary hearing, transfer of the protestappeal file, if any, will be made after the director makes a final determination on the objection. If the ruling is contingent upon the availability of a qualified administrative law judge, the parties shall be notified at least ten days prior to the hearing whether a qualified administrative law judge will be available.    d.    If there is no factual conflict or credibility of evidence offered in issue, either party, after the contested case has been heard and a proposed decision is pending with a presiding officer other than the director for at least one year, may make application to the director to transfer the case to the director for decision. In addition, if the aforementioned criteria existone or more criteria listed in paragraph 7.19(2)“b” exists, the director, on the director’s own motion, may issue a notice to the parties of the director’s intention to transfer the case to the director for decision. The opposing party may file, within 20 days after service of such application or notice by the director, a resistance setting forth in detail why the case should not be transferred. If the director approves the transfer of the case, the director shall issue a final contested case decision. The director or a party may request that the parties be allowed to submit proposed findings of fact and conclusions of law.    e.    The director has the right to require that any presiding officer, other than the director, be a licensed attorney in the state of Iowa, unless the contested case only involves licensing. In addition, any presiding officer must possess, upon determination by the director, sufficient technical expertise and experience in the areas of taxation and presiding over proceedings to effectively determine the issues involved in the proceeding.    f.    Except as provided otherwise by another provision of law, all rulings by an administrative law judge acting as presiding officer are subject to appeal to the director.    7.19(3) Conduct of proceedings.      a.    A proceeding shall be conducted by a presiding officer who shall:    (1)   Open the record and receive appearances;    (2)   Administer oaths and issue subpoenas;    (3)   Enter the notice of hearing into the record;    (4)   Receive testimony and exhibits presented by the parties;    (5)   In the presiding officer’s discretion, interrogate witnesses;    (6)   Rule on objections and motions;    (7)   Close the hearing; and    (8)   Issue an order containing findings of fact and conclusions of law.    b.    The presiding officer may resolve preliminary procedural motions by telephone conference in which all parties have an opportunity to participate. Other telephone proceedings may be held with the consent of all parties. The presiding officer will determine the location of the parties and witnesses for telephone hearing. The convenience of the witnesses or parties, as well as the nature of the case, will be considered when location is chosen. Parties shall be notified at least 30 days in advance of the date and place of the hearing.    c.    Evidentiary proceedings shall be oral, and open to the public, and shall be recorded either by electronic means or by certified shorthand reporters. Parties requesting that the hearing be recorded by certified shorthand reporters shall bear the appropriate costsof reporting. The record of the oral proceedings or the transcription thereof shall be filed with and maintained by the department for at least five years from the date of the decision. An opportunity shall be afforded to the parties to respond and present evidence and argument on all issues involved and to be represented by counsel at their own expense. Unless otherwise directed by the presiding officer, evidence will be received in the following order: (1) protestertaxpayer, (2) intervenor (if applicable), (3) department, (4) rebuttal by protestertaxpayer, (5) oral argument by parties (if necessary).    d.    If the protestertaxpayer or the department appears without counsel or other representative who can reasonably be expected to be familiar with these rules, the presiding officer shall explain to the parties the rules of practice and procedure and generally conduct a hearing in a less formal manner than that used when the parties have such representatives appearing upon the parties’ behalfcounsel or representation. It should be the purpose of the presiding officer to assist any party appearing without such representative to the extent necessary to allow the party to fairly present evidence, testimony, and argumentsargument on the issues. The presiding officer shall take whatever steps may be necessary and proper to ensure that all evidence having probative value is presented and that each party is accorded a fair hearing.    e.    If the parties have mutually agreed to waive the provisions of the Act in regard to contested case proceedings, the hearing will be conducted in a less formal manner than when an evidentiary hearing is conducted.    f.    If a party fails to appear in a contested case proceeding after proper service of notice, the presiding officer may, upon the presiding officer’s own motion or upon the motion of the party who has appeared, adjourn the hearing, enter a default decision, or proceed with the hearing and make a decision on the merits in the absence of the party.    g.    Contemptuous conduct by any person appearing at a hearing shall be grounds for the person’s exclusion from the hearing by the presiding officer.    h.    A stipulation by the parties of the issues or a statement of the issues in the notice commencing the contested case cannot be changed by the presiding officer without the consent of the parties. The presiding officer shall not, on the presiding officer’s own motion, change or modify the issues agreed upon by the parties. Notwithstanding the provisions of this paragraph, a party, within a reasonable time prior to the hearing, may request that a new issue be addressed in the proceedings, except that the request cannot be made after the parties have stipulated to the issues.    7.19(4) Rules of evidence.  In evaluating evidence, the department’s experience, technical competence, and specialized knowledge may be utilized.    a.    Oath.All testimony presented before the presiding officer shall be given under oath, which the presiding officer has authority to administer.    b.    Production of evidence and testimony.The presiding officer may issue subpoenas to a party on request, as permitted by law, compelling the attendance of witnesses and the production of books, papers, records, or other real evidence.    c.    Subpoena.When a subpoena is desired after the commencement of a contested case proceeding, the proper party shall indicate to the presiding officer the name of the case, the docket number, and the last-knownmailing addresses of the witnesses to be called. If evidence other than oral testimony is required, each item to be produced must be adequately described. When properly prepared by the presiding officer, the subpoena will be returned to the requesting party for service. Service may be made in any manner allowed by law before the hearing date of the case which the witness is required to attend. No costs for serving a subpoena will be allowed if the subpoena is served by any person other than the sheriff. Subpoenas requested for discovery purposes shall be issued by the presiding officer.    d.    Admissibility of evidence.    (1)   Evidence having probative value.     1.   Although the presiding officer is not bound to follow the technical common law rules of evidence, a finding shall be based upon the kind of evidence on whicha reasonably prudent persons are accustomed toperson would rely for the conduct of theirthe person’s serious affairs, and may be based upon such evidence even if it would be inadmissible in a jury trial. Therefore, the presiding officer may admit and give probative effect to evidence on whicha reasonably prudent persons are accustomed toperson would rely for the conduct of theirthe person’s serious affairs. Irrelevant, immaterial, or unduly repetitious evidence shall be excluded. The presiding officer shall give effect to the rules of privilege recognized by law. Evidence not provided to a requesting party through discovery shall not be admissible at the hearing. Subject to these requirements, when a hearing will be expedited and the interests of the parties will not be prejudiced, substantially any part of the evidence may be required to be submitted in verified written form by the presiding officer.    2.   Objections to evidentiary offers may be made at the hearing, and the presiding officer’s ruling thereon shall be noted in the record.    (2)   Evidence of a federal determination. Evidence of a federal determination such as a treasury department ruling, regulation or determination letter,; a federal court decision; or an Internal Revenue Service assessment relating to issues raised in the proceeding shall be admissible, and the protestertaxpayer shall be presumed to have conceded the accuracy of the federal determination unless the protestertaxpayer specifically states wherein it is erroneous.    (3)   Copies of evidence. A copy of any book, record, paper or document may be offered directly in evidence in lieu of the original, if the original is not readily available or if there is no objection. Upon request, the parties shall be given an opportunity to compare the copy with the original, if available.    (4)   Stipulations. Approval of the presiding officer is not required for stipulations of the parties to be used in contested case proceedings. In the event the parties file a stipulation in the proceedings, the stipulation shall be binding on the parties and the presiding officer.    e.    ExhibitsIdentification of exhibits.(1)   Identification of exhibits. Exhibits which are offered by protesterstaxpayers and attached to a stipulation or entered in evidence shall be numbered serially, i.e., 1, 2, 3, etc.; whereas, exhibits offered by the department shall be lettered serially, i.e., A, B, C, etc.; and those offered jointly shall be numbered and lettered, i.e., 1-A, 2-B, 3-C, etc.    (2)   Disposition of exhibits. After an order has become final, either party desiring the return, at the party’s expense, of any exhibit belonging to the party shall make application in writing to the clerk of the hearings section within 30 days suggesting a practical manner of delivery; otherwise, exhibits may be disposed of as the clerk of the hearings section deems advisable.    f.    Official notice.The presiding officer may take official notice of all facts of which judicial notice may be takenand of other facts within the specialized knowledge of the department. Parties shall be notified at the earliest practicable time, either before or during the hearing, or by reference in preliminary reports, preliminary decisions, or otherwise, of the facts proposed to be noticed and their source, including any staff memoranda or data. The parties shall be afforded an opportunity to contest such facts prior to the issuance of the decision in the contested case proceeding unless the presiding officer determines as a part of the record or decision that fairness to the parties does not require an opportunity to contest such facts.    g.    Evidence outside the record.Except as provided by these rules, the presiding officer shall not consider factual information or evidence in the determination of any proceeding unless the same shall have been offered and made a part of the record in the proceeding.    h.    Presentation of evidence and testimony.In any hearing, each party theretoin attendance shall have the right to present evidence and testimony of witnesses and to cross-examine any witness who testifies on behalf of an adverse party. A person whose testimony has been submitted in written form shall, if available, also be subject to cross-examination by an adverse party. Opportunity shall be afforded each party for re-direct examination and re-cross-examination and to present evidence and testimony as rebuttal to evidence presented by another party, except that unduly repetitious evidence shall be excluded.    i.    Offer of proof.An offer of proof may be made through the witness or by statement of counsel. The party objecting may cross-examine the witness without waiving any objection.    7.19(5) Motions.      a.    Filing of motions after commencement of contested case proceedings.After commencement of contested case proceedings, appropriate motions may be filedwith the presiding officer by any party with the presiding officer when facts requiring such motion come to the knowledge of the party. All motions shall state the relief sought and the grounds upon which the motions are based.    b.    Service, rulings.Motions made prior to a hearing shall be in writing and a copy thereof served on all parties and attorneys of record. Such motions shall be ruled on by the presiding officer. The presiding officer shall rule on the motion by issuing an order. A copy of the order containing the ruling on the motion shall be mailed to the parties and authorized representatives. A motion may be made orally during the course of a hearing; however, the presiding officer may request that the motion be reduced to writing and filed with the presiding officer.    c.    Consent of the opposing party, burden.To avoid a hearing on a motion, it is advisable to secure the consent of the opposing party prior to filing the motion. If consent of the opposing party to the motion is not obtained, a hearing on the motion may be scheduled and the parties notified. The burden will be on the party filing the motion to show good causeas to why the motion should be granted.    d.    Affidavits.The party making the motion may affix thereto such affidavits as are deemed essential to the disposition of the motion, which shall be served with the motion and to which the opposing party may reply with counter affidavits.    e.    Types of motions.Types of motions. Types of motions include, but are not limited to:    (1)   Motion for continuance. Motions for continuance should be filed no later than ten days before the scheduled date of the contested case hearing unless the grounds for the motion are first known to the moving party within ten days of the hearing, in which case the motion shall be promptly filed and shall set forth why it could not be filed at least ten days prior to the hearing. Grounds for motion for continuance include, but are not limited to, the unavailability of a party, a party’s representative, or a witness,; the incompletion of discovery,; and the possibility of settlement of the case.    (2)   Motion for dismissal.    (3)   Motion for summary judgment.    (4)   Motion to deleteredact identifying details in the decision.    (5)   Motion for default.    (6)   Motion to vacate default.    f.    Hearing on motions.Hearing on motions. Motions subsequent to the commencement of a contested case proceeding shall be determined by the presiding officer.    g.    Summary judgment procedure.Summary judgment procedure. Summary judgment may be obtained under the following conditions and circumstances:    (1)   A party may, after a reasonable time to complete discovery, after completion of discovery, or by agreement of the parties, move, with or without supporting affidavits, for a summary judgment in the party’s favor upon all or any part of a party’s claim or defense.    (2)   The motion shall be filed not less than 45 days prior to the date the case is set for hearing, unless otherwise ordered by the presiding officer. Any party resisting the motion shall filethe following within 30 days from the time of service of the motion: a resistance;a statement of disputed facts, if any; anda memorandum of authorities supporting the resistance. If affidavits supporting the resistance are filed, they must be filed with the resistance. The time fixed for hearing or normal submission on the motion shall be not less than 35 days after the filing of the motion, unless another time is ordered by the presiding officer. The judgment sought shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.    (3)   Upon any motion for summary judgment pursuant to this rule, there shall be affixed to the motion a separate, short, and concise statement of the material facts as to which the moving party contends there is no genuine issue to be tried, including specific reference to those parts of the pleadings, depositions, answers to interrogatories, admissions on file, and affidavits which support such contentions and a memorandum of authorities.    (4)   Supporting and opposing affidavits shall set forth such facts as would be admissible in evidence and shall show affirmatively that the affiant is competent to testify to the matters stated therein. The presiding officer may permit affidavits to be supplemented or opposed by depositions, answers to interrogatories, further affidavits, or oral testimony. When a motion for summary judgment is made and supported as provided in this rule, an adverse party may not rest upon the mere allegations or denials of the party’s pleading, but the party’s response must set forth specific facts, by affidavits or as otherwise provided in this rule, showing that there is a genuine issue for hearing. If the party does not so respond, summary judgment, if appropriate, shall be entered against the party.    (5)   If, on motion under this rule, judgment is not rendered upon the whole case or for all the relief asked and a hearing is necessary, the presiding officer at the hearing of the motion, by examining the pleadings and the evidence before the presiding officer and by interrogating counsel, shall, if practicable, ascertain what material facts exist without substantial controversy and what material facts are actually, and in good faith, controverted. The presiding officer shall thereupon make an order specifying the facts that appear without substantial controversy, including the extent to which the amount or other relief is not in controversy, and directing such further proceedings in the action as are just. Upon the hearing of the contested case, the facts so specified shall be deemed established, and the hearing shall be conducted accordingly.    (6)   Should it appear from the affidavits of a party opposing the motion that the party cannot for reasons stated present, by affidavit, facts essential to justify the party’s opposition, the presiding officer may refuse the application for judgment, may order a continuance to permit affidavits to be obtained, may order depositions be taken or discovery be completed, or may make any other order appropriate.    (7)   An order on summary judgment that disposes of less than the entire case is appealable to the director at the same time that the proposed order is appealable pursuant to subrule 7.17(8)7.19(8).    7.19(6) Briefs and oral argument.      a.    At any time, upon the request of any party or in the presiding officer’s discretion, the presiding officer may require the filing of briefs on any of the issues before the presiding officer prior to or at the time of hearing, or at a subsequent time. At the hearing, the parties should be prepared to make oral arguments as to the facts and law at the conclusion of the hearing if the presiding officer so directs.    b.    An originalA copy only of all briefs shall be filed. Filed briefs shall conform to the requirements of rule 701—7.5(17A)subrules 7.5(1) and 7.5(2).    c.    If the parties agree on a schedule for submission of briefs, the schedule shall be binding on the parties and the presiding officer except that, for good cause shown, the time may be extended upon application of a party.    7.19(7) Defaults.  If a party fails to appear or participate in a contested case proceeding after proper service of notice, the presiding officer may, if no adjournment is granted, enter a default decision or proceed with the hearing and render a decision in the absence of the party.    a.    Where appropriate and not contrary to law, any party may move for default against a party who has failed to file a required pleading or has failed to appear after proper service.    b.    A default decision or a decision rendered on the merits after a party failed to appear or participate in a contested case proceeding becomes a final department action unless, within 15 days after the date of notification or mailing of the decision, a motion to vacate is filed and served on all parties or an appeal of a decision on the merits is timely initiated within the time provided in subrule 7.17(8)7.19(8). A motion to vacate must state all facts relied upon by the moving party which establish that good cause existed for that party’s failure to appear or participate at the contested case proceeding. Each fact so stated must be substantiated by at least one sworn affidavit of a person with personal knowledge of each such fact, and such affidavit(s) must be attached to the motion.    c.    The time for further appeal of a decision for which a timely motion to vacate has been filed is stayed pending a decision on the motion to vacate.    d.    Properly substantiated and timely filed motions to vacate shall be granted only for good cause shown. The burden of proof as to good cause is on the moving party. Adverse parties shall have ten days to respond to a motion to vacate. Adverse parties shall be allowed to conduct discovery as to the issue of good cause and to present evidence on the issue prior to a decision on the motion, if a request to do so is included in that party’s response.    e.    “Good cause” for purposes of this rule shall have the same meaning as “good cause” as interpreted in the case of Purethane, Inc. v. Iowa State Board of Tax Review, 498 N.W.2d 706 (Iowa 1993)For purposes of this rule, “good cause” shall mean the same as “good cause” in Iowa Rule of Civil Procedure 1.977.    f.    A decision denying a motion to vacate is subject to further appeal within the time limit allowed for further appeal of a decision on the merits in the contested case proceeding. A decision granting a motion to vacate is subject to interlocutory appeal by the adverse party as provided in subrule 7.17(13)7.19(13).    g.    If a motion to vacate is granted and no timely interlocutory appeal has been taken, the presiding officer shall issue another notice of hearing and the contested case shall proceed accordingly.    h.    A default decision may award any relief consistent with the request for relief by the party in whose favor the default decision is made and embraced in the contested case issues; but unless the defaulting party has appeared, the relief awarded cannot exceed the relief demanded.    i.    A default decision may provide either that the default decision is to be stayed pending a timely motion to vacate or that the default decision is to take effect immediately, subject to a request for a stay.    7.19(8) Orders.      a.    At the conclusion of the hearing, the presiding officer, in the presiding officer’s discretion, may request the parties to submit proposed findings of fact and conclusions of law. Upon the request of any party, the presiding officer shall allow the parties an opportunity to submit proposed findings of fact and conclusions of law. In addition to or in lieu of the filing of briefs, upon the request of all of the parties waiving any contrary contested case provisions of law or of these rules, the presiding officer shall allow the parties to submit proposed findings of fact and conclusions of law, and the presiding officer may sign and adopt as the decision or proposed decision one of such proposed findings of fact and conclusions of law without any changes.    b.    The decision in a contested case is an order which shall be in writing or stated in the record. The order shall include findings of fact prepared by the person presiding at the hearingofficer, unless the personpresiding officer is unavailable, and based solely on the evidence in the record and on matters officially noticed in the record, and shall include conclusions of law. The findings of fact and conclusions of law shall be separately stated. If a party has submitted proposed findings of fact, the order shall include a ruling upon each proposed finding. Each conclusion of law shall be supported by cited authority or by a reasoned opinion. The decision must include an explanation of why the relevant evidence in the record supports each material finding of fact. If the issue of reasonable litigation costs was held in abeyance pending the outcome of the substantive issues in the contested case and the proposed order decides substantive issues in favor of the protestertaxpayer, the proposed order shall include a notice of time and place for a hearing on the issue of whether reasonable litigation costs shall be awarded and on the issue of the amount of such award, unless the parties agree otherwise. All decisions and orders in a contested case proceeding shall be based solely on the legal bases and arguments presented by the parties. In the event that the presiding officer believes that a legal basis or argument for a decision or order exists, but has not been presented by the parties, the presiding officer shall notify the parties and give them an opportunity to file a brief that addresses such legal basis or argument.    c.    When a motion has been made to deleteredact identifying details in an order on the basis of personal privacy or trade secrets, the justification for such deletionredaction or refusal to deleteredact shall be made by the moving party and shall appear in the order.    d.    When the director initially presides at a hearing or considers decisions on appeal from or review of a proposed decision by the presiding officer other than the director, the order becomes the final order of the department for purposes of judicial review or rehearing unless there is an appeal to or review on motion of a second agency within the time provided by statute or rule. When a presiding officer other than the director presides at the hearing, the order becomes the final order of the department for purposes of judicial review or rehearing unless there is an appeal to or review on motion of the director within 30 days of the date of the order, including Saturdays, Sundays, and legal holidays, or 10 days, excluding Saturdays, Sundays, and legal holidays, for a revocation order pursuant to rule 701—7.23(17A)701—7.39(17A). However, if the contested case proceeding involves a question of an award of reasonable litigation costs, the proposed order on the substantive issues shall not be appealable to or reviewable by the director on the director’s motion until the issuance of a proposed order on the reasonable litigation costs. If there is no such appeal or review within 30 days or 10 days, whichever is applicable, from the date of the proposed order on reasonable litigation costs, both the proposed order on the substantive issues and the proposed order on the reasonable litigation costs become the final orders of the department for purposes of judicial review or rehearing. On an appeal from, review of, or application for rehearing concerning the presiding officer’s order, the director has all the power which the director would initially have had in making the decision; however, the director will consider only those issues or selected issues presented at the hearing before the presiding officer or any issues of fact or law raised independently by the presiding officer, including the propriety of and the authority for raising issues. The parties will be notified of those issues which will be considered by the director.    e.    Notwithstanding the provisions of this rule, where a presiding officer other than the director issues an interlocutory decision or ruling which does not dispose of all the issues, except reasonable litigation costs, in the contested case proceeding, the party adversely affected by the interlocutory decision or ruling may apply to the director within 20 days (10 days for a revocation proceeding) of the date of issuance of the interlocutory decision or ruling to grant an appeal in advance of the proposed decision. The application shall be served on the parties and the presiding officer. The party opposing the application shall file any resistance within 15 days of the service of the application unless, for good cause, the director extends the time for such filing. The director, in the exercise of discretion, may grant the application on finding that such interlocutory decision or ruling involves substantial rights and will materially affect the proposed decision and that a determination of its correctness before hearing on the merits will better serve the interests of justice. The order of the director granting the appeal may be on terms setting forth the course of proceedings on appeal, including advancing the appeal for prompt submission, and the order shall stay further proceedings below. The presiding officer, at the request of the director, shall promptly forward to the director all or a portion of the file or record in the contested case proceeding.    f.    In the event of an appeal to or review of the proposed order by the director, the administrative hearings division shall be promptly notified of the appeal or review by the director. The administrative hearings division shall, upon such notice, promptly forward the record of the contested case proceeding and all other papers associated with the case to the director.    g.    A decision by the director may reverse or modify any finding of fact if a preponderance of the evidence will support a determination to reverse or modify such a finding of fact, or may reverse or modify any conclusion of law that the director finds to be in error.    h.    Orders will be issued within a reasonable time after termination of the hearing. Parties shall be promptly notified of each order by delivery to them of a copy of the order by personal service, regular mail, certified mail, return receipt requested, or any other method to which the parties may agree. For example, a copy of the order can be submitted by electronic mail if both parties agree.    i.    A cross-appeal may be taken within the 30-day period for taking an appeal to the director or in any event within 5 days after the appeal to the director is taken. If a cross-appeal is taken from a revocation order pursuant to rule 701—7.23(17A)701—7.39(17A), the cross-appeal may be taken within the 10-day period for taking an appeal to the director or in any event within 5 days after the appeal to the director is taken.    j.    Upon issuance of a closing order or the proposed decision by a presiding officer other than the director, such presiding officer no longer has jurisdiction over the contested case. Thereafter, any further proceedings associated with or related to the contested case must occur before the director.    7.19(9) Stays.      a.    During the pendency of judicial review of the final contested case order of the department, the party seeking judicial review may file with the director an application for a stay. The application shall set forth in detail the reasons why the applicant is entitled to a stay and shall specifically address the following four factors:    (1)   The extent to which the applicant is likely to prevail when the court finally disposes of the matter;    (2)   The extent to which the applicant will suffer irreparable injury if the stay is not granted;    (3)   The extent to which the granting of a stay to the applicant will substantially harm the other parties to the proceedings; and    (4)   The extent to which the public interest relied on by the department is sufficient to justify the department’s actions in the circumstances.    b.    The director shall consider and balance the previously mentioned four factors and may consult with department personnel and the department’s representatives in the judicial review proceeding. The director shall expeditiously grant or deny the stay.    7.19(10) Expedited cases—when applicable.  In case a protest is filed where the case is not of precedential value and the parties desire a prompt resolution of the dispute, the department and the protester may agree to have the case designated as an expedited case.    a.    Agreement.The department and the protester shall execute an agreement to have the case treated as an expedited case. In this case, discovery is waived. The provisions of this agreement shall constitute a waiver of the rights set forth in Iowa Code chapter 17A for contested case proceedings. Within 30 days of written notice to the clerk of the hearings section sent by the parties stating that an agreement to expedite the case has been executed, the clerk of the hearings section must transfer the protest file to the division of administrative hearings.    b.    Finality of decision.A decision entered in an expedited case proceeding shall not be reviewed by the director or any other court and shall not be treated as a precedent for any other case.    c.    Discontinuance of proceedings.Any time prior to a decision’s being rendered, the taxpayer or the department may request that expedited case proceedings be discontinued if there are reasonable grounds to believe that the issues in dispute would be of precedential value.    d.    Procedure.Upon return of an executed agreement for this procedure, the department shall within 14 days file its answer to the protest. The case shall be docketed for hearing as promptly as the presiding officer can reasonably hear the matter.    7.(11) 7.19(10) Burden of proof.  The burden of proof with respect to assessments or denials of refunds in contested case proceedings is as follows:    a.    The department must carry the burden of proof by clear and convincing evidence as to the issue of fraud with intent to evade tax.    b.    The burden of proof is on the department for any tax periods for which the assessment was not made within six years after the return became due, excluding any extension of time for filing such return, except where the department’s assessment is the result of the final disposition of a matter between the taxpayer and the Internal Revenue Service or where the taxpayer and the department signed a waiver of the statute of limitations to assess.    c.    The burden of proof is on the department as to any new matter or affirmative defense raised by the department. “New matter” means an adjustment not set forth in the computation of the tax in the assessment or refund denial, as distinguished from a new reason for the assessment or refund denial. “Affirmative defense” is a defense resting on facts not necessary to support the taxpayer’s case.    d.    In all instances where the burden of proof is not expressly placed upon the department by this subrule, the burden of proof is upon the protestertaxpayer.    7.(12) 7.19(11) Costs.      a.    A prevailing taxpayer in a contested case proceeding related to the determination, collection, or refund of a tax, penalty, or interest may be awarded by the department reasonable litigation costs incurred subsequent to the issuance of the notice of assessment or refund denial that are based upon the following:    (1)   The reasonable expenses of expert witnesses.    (2)   The reasonable costs of studies, reports, and tests.    (3)   The reasonable fees of independent attorneys or independent accountants retained by the taxpayer. No such award is authorized for accountants or attorneys who represent themselves or who are employees of the taxpayer.    b.    An award for reasonable litigation costs shall not exceed $25,000 per case.    c.    No award shall be made for any portion of the proceeding which has been unreasonably protracted by the taxpayer.    d.    For purposes of this subrule, “prevailing taxpayer” means a taxpayer who establishes that the position of the department in the contested case proceeding was not substantially justified and who has substantially prevailed with respect to the amount in controversy, or has substantially prevailed with respect to the most significant issue or set of issues presented. If the position of the department in issuance of the assessment or refund denial was not substantially justified and if the matter is resolved or conceded before the contested case proceeding is commenced, there cannot be an award for reasonable litigation costs.    e.    The definition of “prevailing taxpayer” is taken from the definition of “prevailing party” in 26 U.S.C. §7430. Therefore, federal cases determining whether the Internal Revenue Service’s position was substantially justified will be considered in the determination of whether a taxpayer is entitled to an award of reasonable litigation costs to the extent that 26 U.S.C. §7430 is consistent with Iowa Code section 421.60(4).    f.    The taxpayer has the burden of establishing the unreasonableness of the department’s position.    g.    Once a contested case has commenced, a concession by the department of its position or a settlement of the case either prior to the evidentiary hearing or any order issued does not, per se, either authorize an award of reasonable litigation costs or preclude such award.    h.    If the department relied upon information provided or action conducted by federal, state, or local officials or law enforcement agencies with respect to the tax imposed by Iowa Code chapter 453B, an award for reasonable litigation costs shall not be made in a contested case proceeding involving the determination, collection, or refund of that tax.    i.    The taxpayer who seeks an award of reasonable litigation costs must specifically request such award in the protestappeal, or the request for award will not be considered.    j.    A request for an award of reasonable litigation costs shall be held in abeyance until the concession or settlement of the contested case proceeding, or the issuance of a proposed order in the contested case proceeding, unless the parties agree otherwise.    k.    At the hearing held for the purpose of deciding whether an award for reasonable litigation costs should be awarded, consideration shall be given to the following points:    (1)   Whether the department’s position was substantially justified;    (2)   Whether the protestertaxpayer is the prevailing taxpayer;    (3)   Whether the taxpayer has established how the alleged reasonable litigation costs were incurred.The burden is upon the protestertaxpayer to establish how the alleged reasonable litigation costs were incurred. This requires a detailed accounting of the nature of each cost, the amount of each cost, and to whom the cost was paid or owed;    (4)   Whether alleged litigation costs are reasonable or necessary;    (5)   Whether the protestertaxpayer has met the protester’staxpayer’s burden of demonstrating all of these points.    7.(13) 7.19(12) Interlocutory appeals.      a.    Upon written request of a party or on the director’s own motion, the director may review an interlocutory order of the presiding officer. In determining whether to do so, the director shall weigh the extent to which granting the interlocutory appeal would expedite final resolution of the case and the extent to which review of that interlocutory order by the director at the time of the review of the proposed decision of the presiding officer would provide an adequate remedy. Any request for interlocutory review must be filed within 14 days of issuance of the challenged order, but no later than the time for compliance with the order or the date of hearing, whichever is first.    b.    Interlocutory appeals do not apply to licensing.    7.(14) 7.19(13) Consolidation and severance.      a.    Consolidation.Consolidation. The presiding officer may consolidate any or all matters at issue in two or more contested case proceedings where:    (1)   The matters at issue involve common parties or common questions of fact or law;    (2)   Consolidation would expedite and simplify consideration of the issues involved; and    (3)   Consolidation would not adversely affect the rights of any of the parties to those proceedings.    b.    Severance.Severance. The presiding officer may, for good cause shown, order any contested case proceedings or portions thereof severed.    c.    Stipulations.Since stipulations are encouraged, it is expected and anticipated that the parties proceeding to a hearing will stipulate to evidence to the fullest extent to which complete or qualified agreement can be reached including all material facts that are not, or should not be, fairly in dispute.    d.    Informal disposition.Without the necessity of proceeding to an evidentiary hearing in a contested case, the parties may agree in writing to informally dispose of the case by stipulation, agreed settlement, or consent order or by another method agreed upon. If such informal disposition is utilized, the parties shall so indicate to the presiding officer that the case has been settled. Upon request, the presiding officer shall issue a closing order to reflect such a disposition. The contested case is terminated upon issuance of a closing order.    e.    Mutual waivers.Unless otherwise precluded by law, the parties in a contested case proceeding may mutually agree to waive any provision under this rule governing contested case proceedings.       This rule is intended to implement Iowa Code sections 17A.12, 17A.14, 17A.15, 421.60 and 452A.68.

        ITEM 10.    Rescind rule 701—7.21(17A).

        ITEM 11.    Renumber existing rule 701—7.22(17A) as 701—7.23(17A).

        ITEM 12.    Amend renumbered rules 701—7.21(17A) and 701—7.22(17A) as follows:

    701—7.21(17A) Record and transcript.      7.21(1)   The record in a contested case shall include:    a.    All pleadings, motions, and rulings;    b.    All evidence received or considered and all other submissions;    c.    A statement of all matters officially noticed;    d.    All questions and offers of proof, objections, and rulings thereon;    e.    All proposed findings and exceptions;    f.    All orders of the presiding officer; and    g.    The order of the director on appeal or review.    7.21(2)   Oral hearings regarding proceedings on appeal to or considered on motion of the director which are recorded by electronic means shall not be transcribed for the record of such appeal or review unless a party, by written notice, or the director, orally or in writing, requests such transcription. Such a request must be filed with the clerk of the hearings section who will be responsible for making the transcript. A transcription will be made only of that portion of the oral hearing relevant to the appeal or review, if so requested and if no objection is made by any other party to the proceeding or the director. Upon request, the department shall provide a copy of the whole record or any portion of the record at cost. The cost of preparing a copy of the record or of transcribing the hearing record shall be paid by the requesting party.    7.21(3)   Parties who request that a hearing be recorded by certified shorthand reporters rather than by electronic means shall bear the cost of that recordationrecording, unless otherwise provided by law.    7.21(4)   Upon issuance of a proposed decision which leaves no issues open for further consideration or upon issuance of a closing order, the administrative hearings division shall promptly forward the record of a contested case proceeding to the director. However, the administrative hearings division may keep the tapes of any evidentiary proceeding in case a transcript of the proceeding is required and, if one is required, the administrative hearings division shall make the transcription and promptly forward the tapes and the transcription to the director.       This rule is intended to implement Iowa Code section 17A.12.

    701—7.22(17A) Application for rehearing.  Any party to a contested case may file an application with the director for a rehearing in the contested case, stating the specific grounds therefor and the relief sought. The application must be filed within 20 days after the final order is issued. See subrule 7.17(8)7.19(8) as to when a proposed order becomes a final order. A copy of such application shall be timely mailed by the applicant to all parties in conformity with rule 701—7.21(17A)701—7.3(17A). The director shall have 20 days from the filing of the application for rehearing to grant or deny the application. If the application for rehearing is granted, a notice will be served on the parties stating the time and place of the rehearing. An application for rehearing shall be deemed denied if not granted by the director within 20 days after filing.    7.22(1)   The application for rehearing shall contain a caption in the following form:BEFORE THE DEPARTMENT OF REVENUEHOOVER STATE OFFICE BUILDINGDES MOINES, IOWAIN THE MATTER OF _________________*(state taxpayer’s name and address and designate type of proceeding, e.g., income tax refund claim)*APPLICATION FOR REHEARING*Docket No. ___________________*    7.22(2)   The application for rehearing shall substantially state in separate numbered paragraphs the following:    a.    Clear and concise statements of the reasons for requesting a rehearing and each and every error which the party alleges to have been committed during the contested case proceedings;    b.    Clear and concise statements of all relevant facts upon which the party relies;    c.    Reference to any particular statute or statutes and any rule or rules involved;    d.    The signature of the party or that of the party’s representative, the address of the party or of the party’s representative, and the telephone number of the party or the party’s representative.    7.22(3)   No applications for rehearing shall be filed with or entertained by an administrative law judge.       This rule is intended to implement Iowa Code section 17A.16.

        ITEM 13.    Amend renumbered rule 701—7.23(17A) as follows:

    701—7.23(17A) Ex parte communications and disqualification.      7.23(1) Ex parte communication.  A party that has knowledge of a prohibited communication by any party or presiding officer should file a copy of the written prohibited communication or a written summary of the prohibited oral communication with the clerk of the hearings section. The clerk of the hearings section will transfer to the presiding officer the filed copy of the prohibited communication.    a.    Prohibited communications.Unless required for the disposition of ex parte matters specifically authorized by statute, following issuance of the notice of hearing, there shall be no communication, directly or indirectly, between the presiding officer and any party or representative of any party or any other person with a direct or indirect interest in such case in connection with any issue of fact or law in the case except upon notice and opportunity for all parties to participate. This does not prohibit persons jointly assigned such tasks from communicating with each other. Nothing in this provision is intended to preclude the presiding officer from communicating with members of the department or seeking the advice or help of persons other than those with a personal interest in, or those engaged in personally investigating as defined in this rule, prosecuting, or advocating in, either the case under consideration or a pending factually related case involving the same parties as long as those persons do not directly or indirectly communicate to the presiding officer any ex parte communications they have received of a type that the presiding officer would be prohibited from receiving or that furnish, augment, diminish, or modify the evidence in the record. Prohibitions on ex parte communications commence with the issuance of the notice of hearing in a contested case and continue for as long as the case is pending.    b.    “Ex parte” communication defined.Written, oral or other forms of communication are “ex parte” if made without notice and opportunity for all parties to participate.    c.    How to avoid prohibited communications.To avoid prohibited ex parte communications, notice must be given in a manner reasonably calculated to give all parties a fair opportunity to participate. Notice of written communications shall be provided in compliance with this chapter and may be supplemented by telephone, facsimile, electronic mail, or other means of notification. Where permitted, oral communications may be initiated through conference telephone calls including all parties or their representatives.    d.    Joint presiding officers.Persons who jointly act as presiding officer in a pending contested case may communicate with each other without notice or opportunity for parties to participate.    e.    Advice to presiding officer.Persons may be present in deliberations or otherwise advise the presiding officer without notice or opportunity for parties to participate as long as the parties are not disqualified from participating in the making of a proposed or final decision under any provision of law and the parties comply with these rules.    f.    Procedural communications.Communications with the presiding officer involving uncontested scheduling or procedural matters do not require notice or opportunity for parties to participate. Parties should notify other parties prior to initiating such contact with the presiding officer when feasible and shall notify other parties when seeking to continue hearings or other deadlines.    g.    Disclosure of prohibited communications.A presiding officer who receives a prohibited ex parte communication during the pendency of a contested case must initially determine if the effect of the communication is so prejudicial that the presiding officer should be disqualified. If the presiding officer determines that disqualification is warranted, a copy of any prohibited written communication, all written responses to the communication, a written summary stating the substance of any prohibited oral or other communication not available in written form for disclosure, all responses made, and the identity of each person from whom the presiding officer received a prohibited ex parte communication, shall be submitted for inclusion in the record under seal by protective order. If the presiding officer determines that disqualification is not warranted, such documents shall be submitted for inclusion in the record and served on all parties. Any party desiring to rebut the prohibited communication must be allowed the opportunity to do so upon written request filed within ten days after notice of the communication.    h.    Disclosure by presiding officer.Promptly afterreceiving the communication or being assigned to serve as presiding officer at any stage in a contested case proceeding, a presiding officer shall disclose to all parties material factual information received through ex parte communication prior to such assignment unless the factual information has already been or shortly will be disclosed pursuant to Iowa Code section 17A.13(2) or through discovery. Factual information contained in an investigative report or similar document need not be separately disclosed by the presiding officer as long as such documents have been or will shortly be provided to the parties.    i.    Sanction.The presiding officer may render a proposed or final decision imposing appropriate sanctions for violations of this rule, including default, a decision against the offending party, censure, suspension, or revocation of the privilege to practice before the department or the administrative hearings division. Violation of ex parte communication prohibitions by department personnel or their representatives shall be reported to the clerk of the hearings section for possible sanctions including censure, suspension, dismissal, or other disciplinary action.    7.23(2) Disqualification of a presiding officer.  Request for disqualification of a presiding officer must be filed in the form of a motion supported by an affidavit asserting an appropriate ground for disqualification. A substitute presiding officer may be appointed by the division of administrative hearings if the disqualified presiding officer is an administrative law judge. If the disqualified presiding officer is the director, the governor must appoint a substitute presiding officer.    a.    Grounds for disqualification. Grounds for disqualification. A presiding officer or other person shall withdraw from participation in the making of any proposed or final decision in a contested case if that person:    (1)   Has a personal bias or prejudice concerning a party or a representative of a party;    (2)   Has personally investigated, prosecuted, or advocated in connection with that case the specific controversy underlying that case, another pending factually related contested case, or a pending factually related controversy that may culminate in a contested case involving the same parties;    (3)   Is subject to the authority, direction, or discretion of any person who has personally investigated, prosecuted, or advocated in connection with that contested case the specific controversy underlying that contested case or a pending factually related contested case or controversy involving the same parties;    (4)   Has acted as counsel to any person who is a private party to that proceeding within the past two years;    (5)   Has a personal financial interest in the outcome of the case or any other significant personal interest that could be substantially affected by the outcome of the case;    (6)   Has a spouse or relative within the third degree of relationship that:
    1. Is a party to the case or an officer, director, or trustee of a party to the case;
    2. Is a lawyer in the case;
    3. Is known to have an interest that could be substantially affected by the outcome of the case; or
    4. Is likely to be a material witness in the case; or
        (7)   Has any other legally sufficient cause to withdraw from participation in the decision making in that case.
        b.    Personally investigated.“Personally investigated” means taking affirmative steps to interview witnesses directly or to obtain documents or other information directly. The term “personally investigated” does not include general direction and supervision of assigned investigators, unsolicited receipt of information which is relayed to assigned investigators, review of another person’s investigative work product in the course of determining whether there is probable cause to initiate a proceeding, or exposure to factual information while performing other department functions, including fact gathering for purposes other than investigation of the matter which culminates in a contested case. Factual information relevant to the merits of a contested case received by a person who later serves as presiding officer in that case shall be disclosed if required by Iowa Code section 17A.17 and these rules.    c.    Disqualification and the record.Disqualification and the record. In a situation where a presiding officer or other person knows of information which might reasonably be deemed to be a basis for disqualification and decides voluntary withdrawal is unnecessary, that person shall submit the relevant information for the record by affidavit and shall provide for the record a statement of the reasons for the determination that withdrawal is unnecessary.    d.    Motion asserting disqualification.Motion asserting disqualification.     (1)   If a party asserts disqualification on any appropriate ground, the party shall file a motion supported by an affidavit pursuant to Iowa Code section 17A.17. The motion must be filed as soon as practicable after the reason alleged in the motion becomes known to the party. If, during the course of the hearing, a party first becomes aware of evidence of bias or other grounds for disqualification, the party may move for disqualification but must establish the grounds by the introduction of evidence into the record.    (2)   If the presiding officer determines that disqualification is appropriate, the presiding officer or other person shall withdraw. If the presiding officer determines that withdrawal is not required, the presiding officer shall enter an order to that effect. A party asserting disqualification may seek an interlocutory appeal and seek a stay as provided under this chapter.
           This rule is intended to implement Iowa Code section 17A.17.

        ITEM 14.    Renumber existing rule 701—7.23(17A) as 701—7.39(17A).

        ITEM 15.    Amend rule 701—7.24(17A) as follows:

    701—7.24(17A) Declaratory order—in general.  Any oral or written advice or opinion rendered to members of the public by department personnel not pursuant to a petition for declaratory order is not binding upon the department. However, department personnel, including field personnel, ordinarily will discuss substantive tax issues with members of the public or their representatives prior to the receipt of a petition for a declaratory order, but such oral or written opinions or advice are not binding on the department. This should not be construed as preventing members of the public or their representatives from inquiring whether the department will issue a declaratory order on a particular question. In these cases, however, the name of the taxpayer shall be disclosed. The department will also discuss questions relating to certain procedural matters such as, for example, submittal of a request for a declaratory order or submittal of a petition to initiate rule-making procedures. Members of the public may, of course, seek oral technical assistance from a departmental employee in regard to the proper preparation of a return or report required to be filed with the department. Such oral advice is advisory only, and the department is not bound to recognize the advice in the examination of the return, report or records.    7.24(1) PetitionFiling a petition for declaratory order.      a.    How to submit a petition.Any person may file with the Clerk of the Hearings Section, Department of Revenue, Fourth Floor, Hoover State Office Building, Des Moines, Iowa 50319, a petition seeking a declaratory order as to the applicability to specified circumstances of a statute, rule, or order within the primary jurisdiction of the departmentusing the methods described in rule 701—7.3(17A).     b.    When a petition is considered filed.A petition is deemed filed when it is received by the clerk of the hearings sectiondepartment as described in rule 701—7.4(17A). The clerk of the hearings sectiondepartment shall provide the petitioner with a file-stamped copy of the petition if the petitioner provides the clerk of the hearings sectiondepartment with an extra copy for this purpose. The     c.    Department forms.Petitioners may use the form provided on GovConnectIowa or the form provided on the department’s website, tax.iowa.gov/forms, to submit a petition.    d.    Manually created petitions.    (1)   If not submitted using the department-provided formats, thepetition must be typewritten or legibly handwritten in ink and must substantially conform to the following form:DEPARTMENT OF REVENUEPetition by (Name of Petitioner) *PETITION FORfor a Declaratory Order on (Cite *DECLARATORY ORDERprovisions of law involved).*Docket No. ___________________*    b.    (2)   The petition must provide the following information:    (1)   1.   A clear and concise statement of all relevant facts on which the order is requested;    (2)   2.   A citation and the relevant language of the specific statutes, rules, policies, decisions, or orders, whose applicability is questioned, and any other relevant law;    (3)   3.   The questions the petitioner wants answered, stated clearly and concisely;    (4)   4.   The answers to the questions desired by the petitioner and a summary of the reasons urged by the petitioner in support of those answers;    (5)   5.   The reasons for requesting the declaratory order and disclosure of the petitioner’s interest in the outcome;    (6)   6.   A statement indicating whether the petitioner is currently a party to another proceeding involving the questions at issue and whether, to the petitioner’s knowledge, those questions have been decided by, are pending determination by, or are under investigation by, any governmental entity;    (7)   7.   The names and addresses of other persons, or a description of any class of persons, known by petitioner to be affected by, or interested in, the questions presented in the petition;    (8)   8.   Any request by petitioner for a meeting provided for by this rule; and    (9)   9.   Whether the petitioner is presently under audit by the department.; and    c.    10.   The petition must be dated and signed bysignature of the petitioner or the petitioner’s representativeand date of signature. It must also include the name, mailing address, and telephone number of the petitioner and of the petitioner’s representative and a statement indicating the person to whom communications concerning the petition should be directed.Petitions submitted by a representative must have a valid IDR power of attorney form or representative certification form, as applicable in accordance with rule 701—7.6(17A), on file with the department.    7.24(2) Notice of petition.  Within 15 days after receipt of a petition for a declaratory order, the clerk of the hearings sectiondepartment shall give notice of the petition to all persons not served by the petitioner to whom notice is required by any provision of law. The clerk of the hearings sectiondepartment may also give notice to any other persons.    7.24(3) Intervention.      a.    Nondiscretionary intervention.Persons who qualify under any applicable provision of law as an intervenor and who file a petition for intervention within 20 days of the filing of a petition for declaratory order, shall be allowed to intervene in a proceeding for a declaratory order.    b.    Discretionary intervention.Any person who files a petition for intervention at any time prior to the issuance of an order may be allowed to intervene in a proceeding for a declaratory order at the discretion of the department.    c.    Filing and form of petition for intervention.A petition for intervention shall be filed with the Clerk of the Hearings Section, Department of Revenue, Fourth Floor, Hoover State Office Building, Des Moines, Iowa 50319.in accordance with paragraph 7.3(1)“b,” “c,” or “d.” Such a petition is deemed filed when it is received by the clerk of the hearings sectionin accordance with rule 701—7.4(17A). The clerk of the hearings sectiondepartment will provide the petitioner with a file-stamped copy of the petition for intervention if the petitioner provides an extra copy for this purpose. A petition for intervention must be typewritten or legibly handwritten in ink and must substantially conform to the following form:DEPARTMENT OF REVENUEPetition by (Name of Original *PETITION FORPetitioner) for a Declaratory Order *INTERVENTIONon (Cite provisions of law cited in *Docket No. ___________________original Petition).*    d.    The petition for intervention must provide the following information:    (1)   Facts supporting the intervenor’s standing and qualifications for intervention;    (2)   The answers urged by the intervenor to the question or questions presented and a summary of the reasons urged in support of those answers;    (3)   Reasons for requesting intervention and disclosure of the intervenor’s interest in the outcome;    (4)   A statement indicating whether the intervenor is currently a party to any proceeding involving the questions at issue and whether, to the intervenor’s knowledge, those questions have been decided by, are pending determination by, or are under investigation by, any governmental entity;    (5)   The names and addresses of any additional persons, or a description of any additional class of persons, known by the intervenor to be affected by, or interested in, the questions presented;    (6)   Whether the intervenor consents to be bound by the determination of the matters presented in the declaratory order proceeding;    (7)   Whether the intervenor is presently under audit by the department; and    (8)   Consent of the intervenor to be bound by the declaratory order.    e.    (9)   The petition must be dated and signed by the intervenor or the intervenor’s representative. It must also include the name, mailing address, and telephone number of the intervenor and of the intervenor’s representative and a statement indicating the person to whom communications should be directed.Petitions for intervention submitted by a representative must have a valid IDR power of attorney form or representative certification form, as applicable in accordance with rule 701—7.6(17A), on file with the department.    f.    e.    Standing.For a petition for intervention to be allowed, the petitioner must have consented to be bound by the declaratory order and the petitioner must have standing regarding the issues raised in the petition for declaratory order.Facts described in the petition for intervention must be those supporting intervention, not related to the substantive issues in the petition. The petition for intervention must not correct facts that are in the petition for declaratory order or raise any additional facts. To have standing, the intervenor must have a legally protectible and tangible interest at stake in the petition for declaratory order under consideration by the director for which the party wishes to petition to intervene. Black’s Law Dictionary, Centennial Edition, p. 1405, citing Guidry v. Roberts, 331 So. 44, 50 (La.App.). Based on Iowa case law, the department may refuse to entertain a petition from one whose rights will not be invaded or infringed. Bowers v. Bailey, 237 Iowa 295, 21 N.W.2d 773 (1946). The department may, by rule, impose a requirement of standing upon those that seek a declaratory order at least to the extent of requiring that they be potentially aggrieved or adversely affected by the department action or failure to act. Arthur Earl Bonfield, “The Iowa Administrative Procedure Act: Background, Construction, Applicability, Public Access to Agency Law, The Rule making Process,” 60 Iowa Law Review 731, 812-13 (1975). The department adopts this requirement of standing for those seeking a petition for a declaratory order and those seeking to intervene in a petition for a declaratory order.    g.    f.    Associations.An association or a representative group is not considered to be an entity qualifying for filing a petition requesting a declaratory order on behalf of all of the association or group members. Each member of an association may not be similarly situated or represented by the factual scenario set forth in such a petition.    h.    g.    Factually distinct matters.If a party seeks to have an issue determined by declaratory order, but the facts are different from those in a petition for declaratory order that is currently under consideration by the director, the interested party should not petition as an intervenor in the petition for declaratory order currently under the director’s consideration. Instead, the party should file a separate petition for a declaratory order, and the petition should include all of the relevant facts. The director may deny a petition for intervention without denying the underlying petition for declaratory order that is involved.    7.24(4) Briefs.  The petitioner or any intervenor may file a brief in support of the position urged. The department may request a brief from the petitioner, any intervenor, or any other person concerning the questions raised in the petition.    7.24(5) Inquiries.  Inquiries concerning the status of a declaratory order proceeding may be made to the Policy and Communications DivisionLegal Services Section,Iowa Department of Revenue, Fourth Floor, Hoover State Office BuildingP.O. Box 14457, Des Moines, Iowa 50319.50306-3457; or by email to the address provided in paragraph 7.3(1)“b.”    7.24(6) Service and filing of petitions and other papers.      a.    When serviceis required.Except where otherwise provided by law, every petition for declaratory order, petition for intervention, brief, or other paper filed in a proceeding for a declaratory order shall be served upon each of the parties of record to the proceeding, and on all other persons identified in the petition for declaratory order or petition for intervention as affected by or interested in the questions presented, simultaneously with its filing. The party filing a document is responsible for service on all parties and other affected or interested persons.    b.    Filing—when required.All petitions for declaratory orders, petitions for intervention, briefs, or other papers in a proceeding for a declaratory order shall be filed with the Clerk of the Hearings Section, Department of Revenue, Hoover State Office Building, Fourth Floor, Des Moines, Iowa 50319in the same manner described in subrule 7.24(1). All petitions, briefs, or other papers that are required to be served upon a party shall be filed simultaneously with the department.    c.    Method of service, time of filing, and proof of mailing.Method of service, time of filing, and proof of mailing shall be as provided in rules 701—7.8(17A) and 701—7.21(17A)701—7.3(17A) and 701—7.4(17A).    7.24(7) Department consideration.      a.    Informal meetings.Upon request by petitioner in the petition, the department may schedule a brief and informal meeting between the original petitioner, all intervenors, and the department, a member of the department, or a member of the staff of the department to discuss the questions raised.     b.    Requests for additional information.The department may solicit additional information from the petitioner and establish a time frame for response.The department mayalso solicit comments or information from anyother person on the questions raised. Also, comments or information on the questions raised may be submitted to the department by any person.    7.24(8) Action on petition.      a.    Within 30 days after receipt of a petition for a declaratory order, the director shall take action on the petition.That action may include issuing an order, issuing a refusal, or scheduling the issuance of a decision for a later date.    b.    The date of issuance of an order or of a refusal to issue an order is as defined in rule 701—7.2(17A)the date of mailing of the order or refusal or date of delivery if service is by other means.    7.24(9) Refusal to issue order.      a.    Reasons for refusal to issue order.The department shall not issue a declaratory order where prohibited by Iowa Code section 17A.9 and may refuse to issue a declaratory order on some or all questions raised forany of the following reasons:    (1)   The petition does not substantially comply with the required form;    (2)   The petition does not contain facts sufficient to demonstrate that the petitioner will be aggrieved or adversely affected by the failure of the department to issue an order;    (3)   The department does not have jurisdiction over the questions presented in the petition;    (4)   The questions presented by the petition are also presented in a current rule making, contested case, or other department or judicial proceeding that may definitively resolve them;    (5)   The questions presented by the petition would more properly be resolved in a different type of proceeding or by another body with jurisdiction over the matter;    (6)   The facts or questions presented in the petition are unclear, overbroad, insufficient, or otherwise inappropriate as a basis upon which to issue an order;    (7)   There is no need to issue an order because the questions raised in the petition have been settled due to a change in circumstances;    (8)   The petition is not based upon facts calculated to aid in the planning of future conduct but is, instead, based solely upon prior conduct, in an effort to establish the effect of that conduct or to challenge a department decision already made;    (9)   The petition requests a declaratory order that would necessarily determine the legal rights, duties, or responsibilities of other persons who have not joined in the petition, intervened separately, or filed a similar petition and whose position on the questions presented may fairly be presumed to be adverse to that of petitioner;    (10)   The petitioner requests the department to determine whether a statute is unconstitutional on its face; or    (11)   The petition requests a declaratory order on an issue presently under investigation or audit or in rule-making proceedings or in litigation in a contested case or court proceedings.; or    (12)   The petition requests a declaratory order on an issue that would substantially prejudice the rights of a person who would be a necessary party and who does not consent in writing to the determination of the matter by a declaratory order proceeding.    b.    Action on refusal.A refusal to issue a declaratory order must indicate the specific grounds for the refusal and constitutes final department action on the petition.    c.    Filing of new petition.Refusal to issue a declaratory order pursuant to this rule does not preclude the filing of a new petition that seeks to eliminate the grounds for the department’s refusal to issue an order.    7.24(10) Contents of declaratory order, refusal; effective date.      a.    In addition to the orderruling itself, a declaratory orderor refusal must contain the date of its issuance, the name of petitioner and all intervenors, the specific statutes, rules, policies, decisions, or orders involved, the particular facts upon which it is based, and the reasons for its conclusion.    b.    A declaratory order is effective on the date of issuance.    7.24(11) Copies of orders.  A copy of all orders issued in response to a petition for a declaratory order shall be maileddelivered promptly to the original petitioner and all intervenorsor otherwise served in accordance with rule 701—7.3(17A).    7.24(12) Effect of a declaratory order.  A declaratory order has the same status and binding effect as a final order issued in a contested case proceeding. A declaratory order is binding on the department, the petitioner, and any intervenors. As to all other persons, a declaratory order serves only as precedent and is not binding on the department. The issuance of a declaratory order constitutes final department action on the petition. A declaratory order, once issued, will not be withdrawn at the request of the petitioner.    7.24(13) Prejudice or no consent.Withdrawal of the petition.  The department will not issue a declaratory order that would substantially prejudice the rights of a person who would be a necessary party and who does not consent in writing to the determination of the matter by a declaratory order proceeding.The petitioner may voluntarily dismiss its petition by notifying the department in writing at any time before the order is issued. The petitioner may not dismiss the petition after the order is issued.       This rule is intended to implement Iowa Code section 17A.9.

        ITEM 16.    Amend rule 701—7.25(17A) as follows:

    701—7.25(17A) Department procedure for rule making.      7.25(1) Applicability.  The department hereby adopts and incorporates by reference the following Uniform Rules on Agency Procedure for Rule Making, which may be found on the general assembly’s website at www.legis.iowa.gov/DOCS/Rules/Current/UniformRules.pdf and which are printed in the first volume of the Iowa Administrative Code, with the additions, changes, and deletions to those rules listed below:Except to the extent otherwise expressly provided by statute, all rules adopted by the department are subject to the provisions of Iowa Code chapter 17A, the Iowa administrative procedure Act, and the provisions of this chapter.    7.25(2) Advice on possible rules before notice of proposed rule adoption.  X.2(17A) Advice on possible rules before notice of proposed rule adoption.In addition to seeking information by other methods, the department may, before publication of a Notice of Intended Action under Iowa Code section 17A.4(1)“a,” solicit comments from the public on a subject matter of possible rule making by the department by causing notice to be published in the Iowa Administrative Bulletin of the subject matter and indicating where, when, and how persons may comment.The department may send notices of proposed rule making and a request for comments to any agency, organization, or association known to the department to have a direct interest or expertise pertaining to the substance of the proposed rule.    7.25(3) Public rule-making docket.  The department utilizes the public rule-making docket available to all agencies on the Iowa legislature’s website.    7.25(4) Notice of proposed rule making.  X.4(1) Notice of proposed rule making—contents.    a.    Contents.Except for rules filed through emergency rule making, at least 35 days before the adoption of a rule the department shall cause Notice of Intended Action to be published in the Iowa Administrative Bulletin. The Notice of Intended Action shall include:    (1)   A brief explanation of the purpose of the proposed rule.     (2)   The specific legal authority for the proposed rule.     (3)   Except to the extent impracticable, the text of the proposed rule.     (4)   Where, when, and how persons may present their views on the proposed rules.     (5)   Where, when, and how persons may demand an oral proceeding on the proposed rule if the Notice does not already provide for one.Where the inclusion of the complete text of a proposed rule in the Notice of Intended Action is impracticable, the department shall include in the Notice a statement fully describing the specific subject matter of the omitted portion of the text of the proposed rule, the specific issues to be addressed by that omitted text of the proposed rule, and the range of possible choices being considered by the department for the resolution of each of those issues.    b.    Incorporation by reference.A proposed rule may incorporate other materials by reference only if it complies with all of the requirements applicable to the incorporation by reference of other materials in an adopted rule that are contained in subrule 7.25(12).    c.    Registration for Notices of Intended Action.X.4(3) Copies of notices. In addition to the text of this subrule, the department adds that the payment for the subscription and the subscription term is one year.Any person may register on the department’s website to receive announcements related to rules from the department. Persons registered to receive announcements from the department will be notified of the publication of the department’s Notices of Intended Action and Adopted and Filed rules. Persons who desire to request a paper copy of any rule filing shall make a request to the department’s administrative rules coordinator, in writing or by email. The request must specify the rules requested and specify the number of copies. The requester will be required to reimburse the department for the actual costs incurred in providing copies.    7.25(5) Public participation.  X.5(17A) Public participation. In addition to the text of this rule, the department adds that written submissions should be submitted to the Administrator of the Policy and Communications Division, Department of Revenue, Hoover State Office Building, Fourth Floor, Des Moines, Iowa 50319. Also, any requests for special requirements concerning accessibility are to be made to the Clerk of the Hearings Section, Department of Revenue, Hoover State Office Building, Fourth Floor, Des Moines, Iowa 50319; telephone (515)281-3204.    a.    Written comments.For at least 20 days after publication of the Notice of Intended Action, persons may submit argument, data, and views, in writing or via email, on the proposed rule. These submissions should identify the proposed rule to which they relate and should be submitted to the person designated on the Notice of Intended Action, or to the attention of the department’s administrative rules coordinator, at the address provided in paragraph 7.3(1)“c” or by email to the address provided in paragraph 7.3(1)“b.”    b.    Oral proceedings.The department may, at any time, schedule an oral proceeding on a proposed rule. The department shall schedule an oral proceeding on a proposed rule if, within 20 days after the published Notice of Intended Action, a written request for an opportunity to make oral presentations is submitted to the department by the administrative rules review committee, a governmental subdivision, a state agency, an association having not less than 25 members, or at least 25 persons. That request must contain the following information:    (1)   A request by one or more individual persons must be signed by each of them and include the address and telephone number of each of them.    (2)   A request by an association must be signed by an officer or designee of the association and must contain a statement that the association has at least 25 members and the address and telephone number of the person signing that request.    (3)   A request by a state agency or governmental subdivision must be signed by an official having authority to act on behalf of the entity and must contain the address and telephone number of the person signing the request.    c.    Conduct of oral proceedings.    (1)   Applicability. This subrule applies only to those oral rule-making proceedings in which an opportunity to make oral presentations is authorized or required by Iowa Code section 17A.4(1)“b” or this chapter.    (2)   Scheduling and notice. An oral proceeding on a proposed rule may be held in person, virtually, or both. The proceeding shall not be held earlier than 20 days after the related Notice of Intended Action is published in the Iowa Administrative Bulletin.    (3)   Presiding officer. An employee of the department shall preside at the oral proceeding on a proposed rule.    (4)   Conduct of proceeding. At an oral proceeding on a proposed rule, persons may make oral statements and make documentary and physical submissions, which may include data, views, comments, or arguments concerning the proposed rule. Persons wishing to make oral presentations at such a proceeding are encouraged to notify the department at least one business day prior to the proceeding and indicate the general subject of their presentations. At the proceeding, those who participate shall indicate their names and addresses, identify any persons or organizations they may represent, and provide any other information relating to their participation deemed appropriate by the presiding officer. Oral proceedings shall be open to the public and shall be recorded by stenographic or electronic means.    1.   The presiding officer may place time limitations on individual oral presentations when necessary to ensure the orderly and expeditious conduct of the oral proceeding. To encourage joint oral presentations and to avoid repetition, additional time may be provided for persons whose presentations represent the views of both themselves and other individuals.    2.   Persons making oral presentations are encouraged to avoid restating matters which have already been submitted in writing.    3.   To facilitate the exchange of information, the presiding officer may, where time permits, open the floor to questions or general discussion.    4.   The presiding officer shall have the authority to take any reasonable action necessary for the orderly conduct of the meeting.    5.   Physical and documentary submissions presented by participants in the oral proceeding shall be submitted to the presiding officer. Such submissions become the property of the department.    6.   The oral proceeding may be continued by the presiding officer to a later time without notice other than by announcement at the hearing.    7.   Participants in an oral proceeding shall not be required to take an oath or to submit to cross-examination. However, the presiding officer in an oral proceeding may question participants and permit the questioning of participants by other participants about any matter relating to that rule-making proceeding, including any prior written submissions made by those participants in that proceeding. However, no participant shall be required to answer any question.    8.   The presiding officer in an oral proceeding may permit rebuttal statements and request the filing of written statements subsequent to the adjournment of the oral presentations.    d.    Additional information.In addition to receiving written comments and oral presentations on a proposed rule according to the provisions of this rule, the department may obtain information concerning a proposed rule through any other lawful means deemed appropriate under circumstances.    e.    Accessibility.The department shall schedule oral proceedings in rooms accessible to and functional for persons with physical disabilities. Persons who have special requirements should contact the person listed on the Notice of Intended Action or the department’s administrative rules coordinator in advance to arrange access or other needed services.    7.25(6) Regulatory analysis.  X.6(17A) Regulatory analysis. In addition to the text of this rule, the department adds that small businesses or organizations of small businesses may register on the department’s small business impact list by making a written application to the Administrator of the Policy and Communications Division, Department of Revenue, Hoover State Office Building, Fourth Floor, Des Moines, Iowa 50319.    a.    Small business impact mailing list.Small businesses or organizations of small businesses may be registered on the department’s small business impact list by making a written application addressed to the department’s administrative rules coordinator by ordinary mail or email to the address provided in paragraph 7.3(1)“b.” The application for registration shall state:     (1)   The name of the small business or organization of small businesses;    (2)   The address of the small business or organization of small businesses;    (3)   The name of a person authorized to transact business for the applicant;    (4)   A description of the applicant’s business or organization. An organization representing 25 or more persons who qualify as a small business shall indicate that fact;    (5)   Whether the registrant desires copies of Notices of Intended Action at cost or desires advance notice of the subject of all or some specific category of proposed rule making affecting small business.The department may at any time request additional information from the applicant to determine whether the applicant is qualified as a small business or as an organization of 25 or more small businesses. The department may periodically send a letter to each registered small business or organization of small businesses asking whether that business or organization wishes to remain on the registration list. The name of a small business or organization of small businesses shall be removed from the list if a negative response is received, or if no response is received within 30 days after the letter is sent.    b.    Time of distribution.Within seven days after submission of a Notice of Intended Action to the legislative services agency’s administrative rules coordinator for publication in the Iowa Administrative Bulletin, the department shall mail to all registered small businesses or organizations of small businesses, in accordance with their request, either a copy of the Notice of Intended Action or notice of the subject of that proposed rule making. In the case of a rule that may have an impact on small business adopted in reliance upon Iowa Code section 17A.4(3), the department shall mail notice of the adopted rule to registered businesses or organizations prior to the time the adopted rule is published in the Iowa Administrative Bulletin.    c.    Qualified requestors for regulatory analysis—economic impact.The department shall issue a regulatory analysis of a proposed rule that conforms to the requirements of Iowa Code section 17A.4A(2)“a” after a proper request from:     (1)   The legislative services agency’s administrative rules coordinator, or     (2)   The administrative rules review committee.    d.    Qualified requestors for regulatory analysis—business impact.The department shall issue a regulatory analysis of a proposed rule that conforms to the requirements of Iowa Code section 17A.4A(2)“b” after a proper request from:    (1)   The administrative rules review committee;    (2)   The legislative services agency’s administrative rules coordinator;    (3)   At least 25 or more persons who sign the request provided that each represents a different small business, or    (4)   An organization representing at least 25 small businesses. That organization shall list the name, address and telephone number of not less than 25 small businesses it represents.    e.    Time period for analysis.Upon receipt of a timely request for a regulatory analysis, the department shall adhere to the timelines described in Iowa Code section 17A.4A(4).     f.    Contents of request.A request for a regulatory analysis is made when it is mailed or delivered to the department. The request shall be in writing and satisfy the requirements of Iowa Code section 17A.4A(1).     g.    Contents of concise summary.The contents of the concise summary shall conform to the requirements of Iowa Code sections 17A.4A(4) and 17A.4A(5).     h.    Publication of a concise summary.The department shall make available, to the maximum extent feasible, copies of the published summary in conformance with Iowa Code section 17A.4A(5).    i.    Regulatory analysis contents—rules review committee or rules coordinator.When a regulatory analysis is issued in response to a written request from the administrative rules review committee, or the legislative services agency’s administrative rules coordinator, the regulatory analysis shall conform to the requirements of Iowa Code section 17A.4A(2)“a,” unless a written request expressly waives one or more of the items listed in the section.    j.    Regulatory analysis contents—substantial impact on small business.When a regulatory analysis is issued in response to a written request from the administrative rules review committee, the legislative services agency’s administrative rules coordinator, at least 25 persons signing that request who each qualify as a small business or by an organization representing at least 25 small businesses, the regulatory analysis shall conform to the requirements of Iowa Code section 17A.4A(2)“b.”    7.25(7) Fiscal impact statement.  X.7(17A,25B) Fiscal impact statement.A rule that mandates additional combined expenditures exceeding $100,000 or combined expenditures of at least $500,000 within five years, by all affected political subdivisions, or by agencies and entities which contract with political subdivisions to provide services, must be accompanied by a fiscal impact statement outlining the costs associated with the rule. A fiscal impact statement must satisfy the requirements of Iowa Code section 25B.6.If the department determines at the time it adopts a rule that the fiscal impact statement upon which the rule is based contains errors, the department shall, at the same time, issue a corrected fiscal impact statement and publish the corrected fiscal impact statement in the Iowa Administrative Bulletin.    7.25(8) Time and manner of rule adoption.  X.8(17A) Time and manner of rule adoption.    a.    Time of adoption.The department shall not adopt a rule until the period for making written submissions and oral presentations has expired. Within 180 days after the later of the publication of the Notice of Intended Action, or the end of oral proceedings thereon, the department shall adopt a rule pursuant to the rule-making proceeding or terminate the proceeding by publication of a notice to that effect in the Iowa Administrative Bulletin.    b.    Consideration of public comment.Before the adoption of a rule, the department shall consider fully all of the written submissions and oral submissions received in that rule-making proceeding or any written summary of the oral submissions and any regulatory analysis or fiscal impact statement issued in that rule-making proceeding.    c.    Reliance on department expertise.Except as otherwise provided by law, the department may use its own experience, technical competence, specialized knowledge, and judgment in the adoption of a rule.    7.25(9) Variance between adopted rule and published notice of proposed rule adoption.  X.9(17A) Variance between adopted rule and published notice of proposed rule adoption.    a.    Allowable variances.The department shall not adopt a rule that differs from the rule proposed in the Notice of Intended Action on which the rule is based unless:     (1)   The differences are within the scope of the subject matter announced in the Notice of Intended Action and are in character with the issues raised in that Notice; and     (2)   The differences are a logical outgrowth of the contents of that Notice of Intended Action or the comments submitted in response thereto; and     (3)   The Notice of Intended Action provided fair warning that the outcome of that rule-making proceeding could be the rule in question.     b.    Fair warning.In determining whether the Notice of Intended Action provided fair warning that the outcome of that rule-making proceeding could be the rule in question, the department shall consider the following factors:    (1)   The extent to which persons who will be affected by the rule should have understood that the rule-making proceeding on which it is based could affect their interests.    (2)   The extent to which the subject matter of the rule or the issues determined by the rule are different from the subject matter or issues contained in the Notice of Intended Action.    (3)   The extent to which the effects of the rule differ from the effects of the proposed rule contained in the Notice of Intended Action.    c.    Petition for rule making.The department shall commence a rule-making proceeding within 60 days of its receipt of a petition for rule making seeking the amendment or repeal of a rule that differs from the proposed rule contained in the Notice of Intended Action upon which the rule is based, unless the department finds that the differences between the adopted rule and the proposed rule are so insubstantial as to make such a rule-making proceeding wholly unnecessary. A copy of any such finding and the petition to which it responds shall be sent to the petitioner, the legislative services agency’s administrative rules coordinator, and the administrative rules review committee, within three days of its issuance.    d.    Concurrent rule-making proceedings.Nothing in this rule disturbs the discretion of the department to initiate, concurrently, several different rule-making proceedings on the same subject with several different published Notices of Intended Action.    7.25(10) Exemptions from public rule-making procedures, emergency rule making.  X.10(17A) Exemptions from public rule-making procedures. In addition to the text of this rule, the department adds that exempt categories are generally limited to rules for nonsubstantive changes to a rule, such as rules for correcting grammar, spelling or punctuation in an existing or proposed rule.    a.    Omission of notice and comment.To the extent the department for good cause finds that public notice and participation are unnecessary, impracticable, or contrary to the public interest in the process of adopting a particular rule, the department may adopt that rule without publishing advance Notice of Intended Action in the Iowa Administrative Bulletin and without providing for written or oral public submissions prior to its adoption. The department shall incorporate the required finding and a brief statement of its supporting reasons in each rule adopted in reliance upon this subrule.    b.    Category exempt.Rule makings for nonsubstantive changes to a rule, such as rules for correcting grammar, spelling or punctuation in an existing or proposed rule, are exempted from the usual public notice and participation requirements because those requirements are unnecessary, impracticable, and contrary to the public interest.    c.    Public proceedings on rules adopted without them.The department may, at any time, commence a standard rule-making proceeding for the adoption of a rule that is identical or similar to a rule it adopts in reliance upon paragraph 7.25(10)“a.” Upon written petition by a governmental subdivision, the administrative rules review committee, a state agency, the legislative services agency’s administrative rules coordinator, an association having not less than 25 members, or at least 25 persons, the department shall commence a standard rule-making proceeding for any rule specified in the petition that was adopted in reliance upon paragraph 7.25(10)“a.” This petition must be filed within one year of the publication of the specified rule in the Iowa Administrative Bulletin as an adopted rule. The rule-making proceeding on that rule must be commenced within 60 days of the receipt of the petition. After a standard rule-making proceeding commenced pursuant to this subrule, the department may either readopt the rule it adopted without benefit of all usual procedures on the basis of paragraph 7.25(10)“a” or may take any other lawful action, including the amendment or repeal of the rule in question, with whatever further proceedings are appropriate.    7.25(11) Concise statement of reasons.  X.11(17A) Concise statement of reasons. In addition to the text of this rule, the department adds that a request for a concise statement of reasons for a rule must be submitted to the Administrator of the Policy and Communications Division, Department of Revenue, Hoover State Office Building, Fourth Floor, Des Moines, Iowa 50319.    a.    General.When requested by a person, either prior to the adoption of a rule or within 30 days after its publication in the Iowa Administrative Bulletin as an adopted rule, the department shall issue a concise statement of reasons for the rule. Requests for such a statement must be in writing and be delivered by mail to the address listed in paragraph 7.3(1)“c” or by email to the person listed on the adopted rule filing or to the department’s administrative rules coordinator at the address provided in paragraph 7.3(1)“b.” The request should indicate whether the statement is sought for all or only a specified part of the rule. Requests shall be considered made on the date received in accordance with rule 701—7.4(17A).     b.    Contents.The concise statement of reasons shall contain:     (1)   The reasons for adopting the rule;    (2)   An indication of any change between the text of the proposed rule contained in the published Notice of Intended Action and the text of the rule as finally adopted, with the reasons for any change;    (3)   The principal reasons urged in the rule-making proceeding for and against the rule, and the department’s reasons for overruling the arguments made against the rule.    c.    Time of issuance.After a proper request, the department shall issue a concise statement of reasons by the later of the time the rule is adopted or 35 days after receipt of the request.    7.25(12) Contents, style, and form of rule.  X.12(1) Contents, style, and form of rule—contents.    a.    Contests.Each rule adopted by the department shall contain the text of the rule and, in addition:     (1)   The date the department adopted the rule;    (2)   A brief explanation of the principal reasons for the rule-making action if the reasons are required by Iowa Code section 17A.4(2), or the department in its discretion decides to include the reasons;    (3)   A reference to all rules repealed, amended, or suspended by the rule;    (4)   A reference to the specific statutory or other authority authorizing adoption of the rule;    (5)   Any findings required by any provision of law as a prerequisite to adoption or effectiveness of the rule;    (6)   A brief explanation of the principal reasons for the failure to provide for waivers to the rule if no waiver provision is included and a brief explanation of any waiver or special exceptions provided in the rule if the reasons are required by Iowa Code section 17A.4(2), or the department in its discretion decides to include the reasons; and    (7)   The effective date of the rule.    b.    Incorporation by reference.X.12(4) Contents, style, and form of rule—style and form.The department may incorporate by reference in a proposed or adopted rule, and without causing publication of the incorporated matter in full, all or any part of a code, standard, rule, or other matter if the department finds that the incorporation of its text in the department proposed or adopted rule would be unduly cumbersome, expensive, or otherwise inexpedient. The reference in the department proposed or adopted rule shall fully and precisely identify the incorporated matter by location, title, citation, date, and edition, if any; shall briefly indicate the precise subject and the general contents of the incorporated matter; and shall state that the proposed or adopted rule does not include any later amendments or editions of the incorporated matter. The department may incorporate such matter by reference in a proposed or adopted rule only if the department makes copies of it readily available to the public. The rule shall state how and where copies of the incorporated matter may be obtained at cost from the department, and how and where copies may be obtained from the department or an agency of the United States, this state, another state, or the organization, association, or persons, originally issuing that matter. The department shall retain permanently a copy of any materials incorporated by reference in a rule of the department. If the department adopts standards by reference to another publication, it shall provide a copy of the publication containing the standards to the administrative rules coordinator for deposit in the state law library and may make the standards available electronically.    c.    References to materials not published in full.When the administrative code editor decides to omit the full text of a proposed or adopted rule because publication of the full text would be unduly cumbersome, expensive, or otherwise inexpedient, the department shall prepare and submit to the administrative code editor for inclusion in the Iowa Administrative Bulletin and Iowa Administrative Code a summary statement describing the specific subject matter of the omitted material. This summary statement shall include the title and a brief description sufficient to inform the public of the specific nature and subject matter of the proposed or adopted rules, and of significant issues involved in these rules. The summary statement shall also describe how a copy of the full text of the proposed or adopted rule, including any unpublished matter and any matter incorporated by reference, may be obtained from the department. The department will provide a copy of that full text (at actual cost) upon request and shall make copies of the full text available for review at the state law library and may make the standards available electronically. At the request of the administrative code editor, the department shall provide a proposed statement explaining why publication of the full text would be unduly cumbersome, expensive, or otherwise inexpedient.    7.25(14) Filing of rules.  X.14(17A) Filing of rules.The department shall file each rule it adopts in the office of the legislative services agency’s administrative rules coordinator. The filing shall be executed as soon after adoption of the rule as is practicable. At the time of filing, each rule shall have included with it any fiscal impact statement and any concise statement of reasons that was issued with respect to that rule. If a fiscal impact statement or statement of reasons for that rule was not issued until a time subsequent to the filing of that rule, the note or statement must be attached to the filed rule within five working days after the fiscal impact statement or concise statement is issued. In filing a rule, the department shall use the standard form prescribed by the legislative services agency’s administrative rules coordinator.     7.25(15) Effectiveness of rules prior to publication, emergency rule making.  X.15(17A) Effectiveness of rules prior to publication.    a.    Grounds.The department may make a rule effective after its filing at any stated time prior to 35 days after its indexing and publication in the Iowa Administrative Bulletin if it finds that a statute so provides, the rule confers a benefit or removes a restriction on some segment of the public, or that the effective date of the rule is necessary to avoid imminent peril to the public health, safety, or welfare. The department shall incorporate the required finding and a brief statement of its supporting reasons in each rule adopted in reliance upon this subrule.     b.    Special notice.When the department makes a rule effective prior to its indexing and publication in reliance upon the provisions of Iowa Code section 17A.5(2)“b,” the department shall employ all reasonable efforts to make its contents known to the persons who may be affected by that rule prior to the rule’s indexing and publication. The term “all reasonable efforts” requires the department to employ the most effective and prompt means of notice rationally calculated to inform potentially affected parties of the effectiveness of the rule that is justified and practical under the circumstances considering the various alternatives available for this purpose, the comparative costs to the department of utilizing each of those alternatives, and the harm suffered by affected persons from any lack of notice concerning the contents of the rule prior to its indexing and publication. The means that may be used for providing notice of such rules prior to their indexing and publication include, but are not limited to, any one or more of the following means: radio, newspaper, television, signs, mail, telephone, personal notice, or electronic means.A rule made effective prior to its indexing and publication in reliance upon the provisions of Iowa Code section 17A.5(2)“b” shall include in that rule a statement describing the reasonable efforts that will be used to comply with the requirements of paragraph 7.25(15)“b.”X.16(17A) General statement of policy.    7.25(16) Review of rules by department.  X.17(17A) Review by agency of rules.    a.    Request for review.Any interested person, association, agency, or political subdivision may submit a written request to the administrative rules coordinator for the department to conduct a formal review of a specified rule. Upon approval of that request by the department’s administrative rules coordinator, the department shall conduct a formal review of a specified rule to determine whether a new rule should be adopted instead or the rule should be amended or repealed. The department may refuse to conduct a review if it has conducted a review of the specified rule within five years prior to the filing of the written request.    b.    Conduct of review.In conducting the formal review, the department shall prepare within a reasonable time a written report summarizing its findings, its supporting reasons, and any proposed course of action. The report shall include a concise statement of the department’s findings regarding the rule’s effectiveness in achieving its objectives, including a summary of any available supporting data. The report shall also concisely describe significant written criticisms of the rule received during the previous five years, including a summary of any requests for exceptions to the rule received by the department or granted by the department. The report shall describe alternative solutions to resolve the criticisms of the rule, the reasons any were rejected, and any changes made in the rule in response to the criticisms as well as the reasons for the changes. A copy of the department’s report shall be sent to the administrative rules review committee and the legislative services agency’s administrative rules coordinator. The report shall also be available for public inspection.     7.25(2)   The department hereby states that the following cited Uniform Rules on Agency Procedure for Rule Making are not adopted by the department:X.1(17A) Applicability.X.3(17A) Public rule-making docket.X.4(2) Notice of proposed rule making—incorporation by reference.X.12(2) Contents, style, and form of rule—incorporation by reference.X.12(3) Contents, style, and form of rule—references to materials not published in full.X.13(17A) Agency rule-making record.       This rule is intended to implement Iowa Code chapter 17Aand section 421.14.

        ITEM 17.    Amend rule 701—7.26(17A) as follows:

    701—7.26(17A) Public inquiries on rule making and the rule-making records.  The department maintains records of information obtained and all actions taken and criticisms received regarding any rule within the past five years. The department also keeps a record of the status of every rule within the rule-making procedure. Inquiries concerning the status of rule making may be made by contacting the Administrator of the Policy and Communications Division, Department of Revenue, Hoover State Office Building, Fourth Floor, Des Moines, Iowa 50319.department’s administrative rules coordinator by mail at the address listed in paragraph 7.3(1)“c” or by email to the address provided in paragraph 7.3(1)“b.” For additional information regarding criticism of rules, see rule 701—7.27(17A).       This rule is intended to implement Iowa Code section 17A.3.

        ITEM 18.    Amend rule 701—7.27(17A) as follows:

    701—7.27(17A) Criticism of rules.  The Administrator of the Policy and Communications Division, Department of Revenue, Hoover State Office Building, Fourth Floor, Des Moines, Iowa 50319, is designated as the office where interestedInterested persons may submit by electronic means or by mail criticisms, requests for waivers, or comments regarding a rule.to the department’s administrative rules coordinator by mail at the address listed in paragraph 7.3(1)“c” or by email to the address provided in paragraph 7.3(1)“b.” A criticism of a specific rule must be more than a mere lack of understanding of a rule or a dislike of the rule. To constitute a criticism of a rule, the criticism must be in writing, indicate it is a criticism of a specific rule, and have a valid legal basis for support. All requests for waivers, comments, or criticisms received on any rule will be kept in a separate record for a period of five years by the department.       This rule is intended to implement Iowa Code sections 17A.7 and 421.60.

        ITEM 19.    Amend rule 701—7.28(17A) as follows:

    701—7.28(17A) Waiver or variance of certain department rules.  All discretionary rules or discretionary provisions in a rule over which the department has jurisdiction, in whole or in part, may be subject to waiver or variance. See subrules 7.28(3) and 7.28(4).    7.28(1) Definitions.  The following terms apply to the interpretation and application of this rule:        "Discretionary rule" "discretionary provisions in a rule" means rules or provisions in rules resulting from a delegation by the legislature to the department to create a binding rule to govern a given issue or area. The department is not interpreting any statutory provision of the law promulgated by the legislature in a discretionary rule. Instead, a discretionary rule is authorized by the legislature when the legislature has delegated the creation of binding rules to the department and the contents of such rules are at the discretion of the department. A rule that contains both discretionary and interpretive provisions is deemed to be a discretionary rule to the extent of the discretionary provisions in the rule.        "Interpretive rules" "interpretive provisions in rules" means rules or provisions in rules which define the meaning of a statute or other provision of law or precedent where the department does not possess the delegated authority to bind the courts to any extent with its definition.        "Waiver or variance" means an agencya department action which suspends, in whole or in part, the requirements or provisions of a rule as applied to an identified person on the basis of the particular circumstances of that person.    7.28(2) Scope of rule.      a.    This rule creates generally applicable standards and a generally applicable process for granting individual waivers or variances from the discretionary rules or discretionary provisions in rules adopted by the department in situations where no other specifically applicable law provides for waivers or variances. To the extent another more specific provision of law purports to govern the issuance of a waiver or variance from a particular rule, the more specific waiver or variance provision shall supersede this rule with respect to any waiver or variance from that rule.    b.    The waiver or variance provisions set forth in this rule do not apply to rules over which the department does not have jurisdiction or when issuance of the waiver or variance would be inconsistent with any applicable statute, constitutional provision or other provision of law.    7.28(3) Applicability of this rule.      a.    This rule applies only to waiver or variance of those departmental rules that are within the exclusive rule-making authority of the department. This rule shall not apply to interpretive rules that merely interpret or construe the meaning of a statute, or other provision of law or precedent, if the department does not possess statutory authority to bind a court, to any extent, with its interpretation or construction. Thus, this waiver or variance rule applies to discretionary rules and discretionary provisions in rules, and not to interpretive rules.    b.    The application of this rule is strictly limited to petitions for waiver or variance filed outside of a contested case proceeding. Petitions for waiver or variance from a discretionary rule or discretionary provisions in a rule filed after the commencement of a contested case as provided in rule 701—7.14(17A)701—7.16(17A) will be treated as an issue of the contested case to be determined by the presiding officer of the contested case.    7.28(4) Authority to grant a waiver or variance.  The director may not issue a waiver or variance under this rule unless:    a.    The legislature has delegated authority sufficient to justify the action; and    b.    The waiver or variance is consistent with statutes and other provisions of law. No waiver or variance from any mandatory requirement imposed by statute may be granted under this rule.    7.28(5) Criteria for waiver or variance.  In response to a petition, the director may, in the director’s sole discretion, issue an order granting a waiver or variance from a discretionary rule or a discretionary provision in a rule adopted by the department, in whole or in part, as applied to the circumstances of a specified person, if the director finds that the waiver or variance is consistent with subrules 7.28(3) and 7.28(4) and if all of the following criteria are also met:    a.    The waiver or variance would not prejudice the substantial legal rights of any person;    b.    The rule or provisions of the rule are not specifically mandated by statute or another provision of law;    c.    The application of the rule or rule provision would result in an undue hardship or injustice to the petitioner; and    d.    Substantially equal protection of public health, safety, and welfare will be afforded by means other than that prescribed in the rule or rule provision for which the waiver or variance is requested.    7.28(6) Director’s discretion.  The final decision to grant or deny a waiver or variance shall be vested in the director. This decision shall be made at the sole discretion of the director based upon consideration of relevant facts.    7.28(7) Burden of persuasion.  The burden of persuasion shall be on the petitioner to demonstrate by clear and convincing evidence that the director should exercise discretion to grant the petitioner a waiver or variance based upon the criteria contained in subrule 7.28(5).    7.28(8) ContentsForm and contents of petition.      a.    Department forms.A petition for waiver or variance must be in the followingmay be filed using the form available on the department’s portal, GovConnectIowa. Alternatively, a petition for waiver may be filed using the form available on the department’s website, tax.iowa.gov/forms.     b.    Manually created petitions.    (1)   Persons that do not use the department’s portal, GovConnectIowa, or the form available on the department’s website shall follow the followingformat:IOWA DEPARTMENT OF REVENUEName of Petitioner*PETITION FORAddress of Petitioner*WAIVERType of Tax at Issue*Docket No. ___________________*    b.    (2)   Amanually created petition for waiver or variance must contain all of the following, where applicable and known to the petitioner:    (1)   1.   The name, address,email address, telephone number, and case number or state identification number of the entity or person for whom a waiver or variance is being requested;    (2)   2.   A description and citation of the specific rule or rule provisions from which a waiver or variance is being requested;    (3)   3.   The specific waiver or variance requested, including a description of the precise scope and operative period for which the petitioner wants the waiver or variance to extend;    (4)   4.   The relevant facts that the petitioner believes would justify a waiver or variance. This statement shall include a signed statement from the petitioner attesting to the accuracy of the facts represented in the petition, and a statement of reasons that the petitioner believes will justify a waiver or variance;    (5)   5.   A complete history of any prior contacts between the petitioner and the department relating to the activity affected by the proposed waiver or variance, including audits, notices of assessment, refund claims,appeals, contested case hearings, or investigative reports relating to the activity within the last five years;    (6)   6.   Any information known to the petitioner relating to the department’s treatment of similar cases;    (7)   7.   The name, address, and telephone number of any public agency or political subdivision which might be affected by the granting of a waiver or variance;    (8)   8.   The name, address, and telephone number of any person or entity that would be adversely affected by the granting of the waiver or variance;    (9)   9.   The name, address, and telephone number of any person with knowledge of the relevant facts relating to the proposed waiver or variance;    (10)   10.   Signed releases of information authorizing persons with knowledge of relevant facts to furnish the department with information relating to the waiver or variance;and(11)   If the petitioner seeks to have identifying details deleted, which deletion is authorized by statute, such details must be listed with the statutory authority for the deletion; and    (12)   11.   Signature by the petitioner at the conclusion of the petition attesting to the accuracy and truthfulness of the information set forth in the petition.    7.28(9) Filing of petition.  A petition for waiver or variance must be filed with the Clerk of the Hearings Section, Department of Revenue, Hoover State Office Building, Fourth Floor, Des Moines, Iowa 50319using one of the methods described in subrule 7.3(1).    7.28(10) Additional information.  Prior to issuing an order granting or denying a waiver or variance, the director may request additional information from the petitioner relating to the petition and surrounding circumstances. The director may, on the director’s own motion, or at the petitioner’s request, schedule a telephonic or in-person meeting between the petitioner or the petitioner’s representative, or both, and the director to discuss the petition and surrounding circumstances.    7.28(11) Notice of petition for waiver or variance.  The petitioner shall provide, within 30 days of filing the petition for waiver or variance, a notice consisting of a concise summary of the contents of the petition for waiver or variance and stating that the petition is pending. Such notice shall be mailed by the petitioner to all persons entitled to such notice. Such persons to whom notice must be mailed include, but are not limited to, the director and all parties to the petition for waiver or variance, or the parties’ representatives. The petitioner must then file written notice with the clerk of the hearings section (address indicated above)to the department’s legal services section by mail to the address listed in paragraph 7.3(1)“c” or by email to the address provided in paragraph 7.3(1)“b,” attesting that the notice has been mailed. The names, addresses and telephone numbers of the persons to whom the notices were mailed shall be included in the filed written notice. The department has the discretion to give such notice to persons other than those persons notified by the petitioner.    7.28(12) Ruling on a petition for waiver or variance.  An order granting or denying a waiver or variance must conform to the following:    a.    An order granting or denying a waiver or variance shall be in writing and shall contain a reference to the particular person and rule or rule provision to which the order pertains, a statement of the relevant facts and reasons upon which the action is based, and a description of the narrow and precise scope and operative time period of a waiver or variance, if one is issued.    b.    If a petition requested the deletion of identifying details, then the order must either redact the details prior to the placement of the order in the public record file referenced in subrule 7.28(17) or set forth the grounds for denying the deletion of identifying details as requested.    c.    b.    Conditions. The director may condition the grant of a waiver or variance on any conditions which the director deems to be reasonable and appropriate in order to protect the public health, safety and welfare.    7.28(13) Time period for waiver or variance; extension.  Unless otherwise provided, an order granting a petition for waiver or variance will be effective for 12 months from the date the order granting the waiver or variance is issued. Renewal of a granted waiver or variance is not automatic. To renew the waiver or variance beyond the 12-month period, the petitioner must file a new petition requesting a waiver or variance. The renewal petition will be governed by the provisions in this rule and must be filed prior to the expiration date of the previously issued waiver or variance or extension of waiver or variance. Even if the order granting the waiver or variance was issued in a contested case proceeding, any request for an extension shall be filed with and acted upon by the director. However, renewal petitions must request an extension of a previously issued waiver or variance. Granting the extension of the waiver or variance is at the director’s sole discretion and must be based upon whether the factors set out in subrules 7.28(4) and 7.28(5) remain valid.    7.28(14) Time for ruling.  The director shall grant or deny a petition for waiver or variance as soon as practicable but, in any event, shall do so within 120 days of its receipt, unless the petitioner agrees in writing to a later date or the director indicates in a written order that it is impracticable to issue the order within the 120-day period.    7.28(15) When deemed denied.  Failure of the director to grant or deny a waiver or variance within the 120-day or the extended time period shall be deemed a denial of that petition.    7.28(16) Service of orders.  Within seven days of its issuance, any order issued under this rule shall be transmitted to the petitioner or the person to whom the order pertains and to any other person entitled to such notice by any provision of law.    7.28(17) Record keeping.  The department is required to maintain a record of all petitions for waiver or variance and rulings granting or denying petitions for waiver or variance.    a.    Petitions for waiver or variance.The department shall maintain a record of all petitions for waiver or variance available for public inspection. Such records will be indexed and filed and made available for public inspection at the office of the clerk of the hearings section at the address set forth in subrule 7.28(9).    b.    Report of orders granting or denying a waiver or variance.All orders granting or denying a waiver or variance shall be summarized in a semiannual report to be drafted by the department and submitted to the administrative rules coordinator and the administrative rules review committeesubmitted on the Internet site as prescribed in Iowa Code section 17A.9A.    7.28(18) Cancellation of waiver or variance.  A waiver or variance issued pursuant to this rule may be withdrawn, canceled, or modified if, after appropriate notice, the director issues an order finding any of the following:    a.    The person who obtained the waiver or variance order withheld or misrepresented material facts relevant to the propriety or desirability of the waiver or variance; or    b.    The alternative means for ensuring that public health, safety, and welfare will be adequately protected after issuance of the waiver or variance order have been demonstrated to be insufficient, and no other means exist to protect the substantial legal rights of any person; or    c.    The person who obtained the waiver or variance has failed to comply with all of the conditions in the waiver or variance order.    7.28(19) Violations.  A violation of a condition in a waiver or variance order shall be treated as a violation of the particular rule or rule provision for which the waiver or variance was granted. As a result, the recipient of a waiver or variance under this rule who violates a condition of the waiver or variance may be subject to the same remedies or penalties as a person who violates the rule or rule provision at issue.    7.28(20) Defense.  After an order granting a waiver or variance is issued, the order shall constitute a defense, within the terms and the specific facts indicated therein, for the person to whom the order pertains in any proceeding in which the rule in question is sought to be invoked, unless subrules 7.28(18) and 7.28(19) are applicable.    7.28(21) Hearing and appeals.      a.    Appeals from a decision granting or denying a waiver or variance in a contested case proceeding shall be in accordance with the rules governing hearings and appeals from decisions in contested cases. These appeals shall be taken within 30 days of the issuance of the ruling granting or denying the waiver or variance request, unless a different time is provided by rule or statute, such as provided in the area of license revocation (see rule 701—7.23(17A)701—7.39(17A)).    b.    The provisions of Iowa Code sections 17A.10 to 17A.18A and rule 701—7.17(17A)701—7.19(17A) regarding contested case proceedings shall apply to any petition for waiver or variance of a rule or provisions in a rule filed within a contested case proceeding. A petition for waiver or variance of a provision in a rule outside of a contested case proceeding will not be considered under the statutes or rule 701—7.17(17A)701—7.19(17A). Instead, the director’s decision on the petition for waiver or variance is considered to be “other agency action.”       This rule is intended to implement Iowa Code section 17A.9A.

        ITEM 20.    Amend rule 701—7.29(17A) as follows:

    701—7.29(17A) Petition for rule making.      7.29(1) FormFiling, form, and contents of petition.      a.    Filing.Any person or agency may file a petition for rule making at the Office of the Director, Department of Revenue, Hoover State Office Building, Fourth Floor, 1305 East Walnut Street, Des Moines, Iowa 50319using one of the methods described in subrule 7.3(1). A petition is deemed filed when it is received by the director. The department will provide the petitioner with a file-stamped copy of the petition if the petitioner provides the department an extra copy for this purpose. The petition must be typewritten or legibly handwritten in ink and must substantially conform to the following form:    b.    Department forms.A petition may be filed using the form available on GovConnectIowa or the form available on the department’s website, tax.iowa.gov/forms.    c.    Manually created petitions.    (1)   Persons that do not use the form available on GovConnectIowa, or the form available on the department’s website, shall follow the following format:DEPARTMENT OF REVENUEPetition by (Name of Petitioner)*PETITION FORfor the (adoption, amendment, or*RULE MAKINGrepeal) of rules relating to (state *subject matter).*    b.    (2)   The petition must provide the following information:    (1)   1.   A statement of the specific rule-making action sought by the petitioner including the text or a summary of the contents of the proposed rule or amendment to a rule and, if it is a petition to amend or repeal a rule, a citation and the relevant language to the particular portion or portions of the rule proposed to be amended or repealed.    (2)   2.   A citation to any law deemed relevant to the department’s authority to take the action urged or to the desirability of that action.    (3)   3.   A brief summary of the petitioner’s arguments in support of the action urged in the petition.    (4)   4.   A brief summary of any data supporting the action urged in the petition.    5.   A complete history of any prior contacts between the petitioner and the department relating to the activity affected by the proposed rule making, including audits, notices of assessment, refund claims, appeals, contested case hearings, or investigative reports relating to the activity within the last five years.    (5)   6.   The names and addresses of other persons, or a description of any class of persons, known by the petitioner to be affected by or interested in the proposed action which is the subject of the petition.    (6)   7.   Any request by the petitioner for a meeting.    (7)   8.   Any other matters deemed relevant that are not covered by the above requirements.    d.    File-stamped copy.The department will provide the petitioner with a file-stamped copy of the petition if the petitioner provides the department an extra copy for this purpose.    7.29(2) Form signed and dated.  The petition must be signed and dated by the petitioner or the petitioner’s representative. It must also include the name, mailing address, telephone number, and, if requested, the email address of the petitioner and of the petitioner’s representative and a statement indicating the person to whom communications concerning the petition should be directed.    7.29(3) Denial by department.  The department may deny a petition because it does not substantially conform to the required form or because all the required information has not been provided.    7.29(4) Briefs.  The petitioner may attach a brief to the petition in support of the action urged in the petition. The department may request a brief from the petitioner or from any other person concerning the substance of the petition.    7.29(5) Status of petition.  Inquiries concerning the status of a petition for rule making may be made to the Office of the Director, Department of Revenue, Hoover State Office Building, Fourth Floor, 1305 East Walnut Street, Des Moines, Iowa 50319.department’s administrative rules coordinator by mail at the address listed in paragraph 7.3(1)“c” or by email to the address provided in paragraph 7.3(1)“b.”    7.29(6) Informal meeting.  If requested in the petition by the petitioner, the department may schedule an informal meeting between the petitioner and the department, or a member of the staff of the department, to discuss the petition. The department may request that the petitioner submit additional information or argument concerning the petition. The department may also solicit comments from any person on the substance of the petition. Also, comments on the substance of the petition may be submitted to the department by any person.    7.29(7) Action required.  Within 60 days after the filing of the petition, or within an extended period as agreed to by the petitioner, the department must, in writing, either: (a) deny the petition and notify the petitioner of the department’s action and the specific grounds for the denial; or (b) grant the petition and notify the petitioner that the department has instituted rule-making proceedings on the subject of the petition. The petitioner shall be deemed notified of the denial of the petition or the granting of the petition on the date that the department mails or delivers the required notification to the petitioner.All orders granting or denying a petition shall be submitted on the Internet site as prescribed in Iowa Code section 17A.9A.    7.29(8) New petition.  Denial of a petition because the petition does not substantially conform to the required form does not preclude the filing of a new petition on the same subject when the new petition contains the required information that was the basis for the original denial.       This rule is intended to implement Iowa Code chapter 17A.

        ITEM 21.    Amend rule 701—7.30(9C,91C) as follows:

    701—7.30(9C,91C) Procedure for nonlocal business entity bond forfeitures.  Upon the failure of a transient merchant or an out-of-state contractor to pay any taxes payable, the amount of bond posted with the secretary of state by the transient merchant or out-of-state contractor necessary to pay the tax shall be forfeited. The following subrules shall govern the procedure for that forfeiture.    7.30(1) Definitions.      a.    “Nonlocal business entity” is either an out-of-state contractor or a transient merchant as those terms are defined in paragraphs 7.30(1)“b” and “f.”    b.    “Out-of-state contractor” means a general contractor, subcontractor, architect, engineer, or other person who contracts to perform in this state construction or installation of structures or other buildings or any other work covered by Iowa Code chapter 103A and whose principal place of business is outside Iowa.    c.    “Taxes payable by a transient merchant” refers to all taxes administered by the department, and penalties, interest, and fees which the department has previously determined to be due by assessment or due as a result of an appeal from an assessment.    d.    “Taxes payable by an out-of-state contractor” means tax, penalty, interest, and fees which the department, another state agency, or a subdivision of the state, has determined to be due by assessment or due as a result of an appeal from an assessment. The tax assessed must accrue as the result of a contract to perform work covered by Iowa Code chapter 103A.    e.    “Taxes payable” means any amount referred to in paragraphs 7.30(1)“c” and “d” above.    f.    “Transient merchant” shall be defined, for the purposes of this rule, as that term is defined in Iowa Code section 9C.1.    7.30(2) Increases in existing bonds.  If an out-of-state contractor has on file with the secretary of state a bond for any particular contract and for that particular contract the contractor has tax due and owing but unpaid and this tax is greater than the amount of the bond, the department shall require the out-of-state contractor to increase the bond on file with the secretary of state in an amount sufficient to pay tax liabilities which will become due and owing under the contract in the future.    7.30(3) Responsibility for notification.  Concerning taxes which are payable by an out-of-state contractor but which are not administered by the department of revenue, it shall be the duty of the department or subdivision of Iowa state government to which the taxes are owed to notify the department of revenue of the taxes payable by the out-of-state contractor in order to institute bond forfeiture proceedings or an increase in the amount of the bond which the out-of-state contractor must post.    7.30(4) Initial notification.  After it is determined that a bond ought to be forfeited, notice of this intent shall be sent to the nonlocal business entity and its surety of record, if any. Notice sent to the nonlocal business entity or its surety shall be sent to the last-known address as reflected in the records of the secretary of state. The notice sent to an out-of-state contractor shall also be mailed to the contractor’s registered agent for service of process, if any, within Iowa. This notice may be sent by ordinary mail. The notice shall state the intent to demand forfeiture of the nonlocal business entity’s bond, the amount of bond to be forfeited, the nature of the taxes alleged to be payable, the period for which these taxes are due, and the department or subdivision of Iowa to which the taxes are payable. The notice shall also state the statutory authority for the forfeiture and the right to a hearing upon timely application.    7.30(5) Protest of bond forfeiture.  The application of a nonlocal business entity for a hearing shall be written and substantially in the form set out for protests of other departmentaldepartment action in rule 701—7.8(17A)701—7.9(17A). The caption of the application shall be basically in the form set out in subrule 7.8(6)7.9(6) except the type of proceeding shall be designated as a bond forfeiture collection. The body of the application for hearing must substantially resemble the body of the protest described in subrule 7.8(7)7.9(6). However, referring tonumbered paragraph 7.8(7)“a,”7.9(6)“b”(2)“1,” the nonlocal business entity shall state the date of the notice described in subrule 7.30(4). With regard to paragraph 7.8(7)“c,”subparagraph 7.9(6)“b”(2), in the case of a tax payable which is not administered by the department, the errors alleged may be errors on the part of other departments or subdivisions of the state of Iowa. The application for hearing shall be filed with the department’s administrative law judge in the manner described in rule 701—7.8(17A)701—7.10(17A). The docketing of an application for hearing shall follow the procedure for the docketing of a protestan appeal under that rule.    7.30(6) Prehearing, hearing and rehearing procedures.  The following rules are applicable to preliminary and contested case proceedings under this rule: 701—7.3(17A) to 701—7.7(17A), 701—7.9(17A) to 701—7.13(17A),701—7.15(17A) and 701—7.15(17A) to 701—7.22(17A)701—7.17(17A) to 701—7.23(17A).    7.30(7) Sureties and state departments other than revenue.      a.    A surety shall not have standing to contest the amount of any tax payable.    b.    If there exist taxes payable by an out-of-state contractor and these taxes are payable to a department or subdivision of state government other than the department of revenue, that department or subdivision shall be the real party in interest to any proceeding conducted under this rule, and it shall be the responsibility of that department or subdivision to provide its own representation and otherwise bear the expenses of representation.       This rule is intended to implement Iowa Code sections 9C.4 and 91C.7.

        ITEM 22.    Amend rule 701—7.31(421) as follows:

    701—7.31(421) Abatement of unpaid tax.  For assessment notices issued on or after January 1, 1995, ifIf the statutory period for appealof a notice of assessment has expired, the director may abate any portion of unpaid tax, penalties or interest which the director determines is erroneous, illegal, or excessive. The authority of the director to settle doubtful and disputed claims for taxes or tax refunds or tax liability of doubtful collectability is not covered by this rule.    7.31(1) Assessments qualifying for abatement.  To be subject to an abatement, an assessment or a portion of an assessment for which abatement is sought must not have been paid and must have exceeded the amount due as provided by the Iowa Code and the administrative rules issued by the department interpreting the Iowa Code. If a taxpayer fails to timely appeal an assessment that is based on the Iowa Code or the department’s administrative rules interpreting the Iowa Code within the statutory period, then the taxpayer cannot request an abatement of the assessment or a portion thereof.    7.31(2) Procedures for requesting abatement.  The taxpayer must make a written request to the director for abatement of that portion of the assessment that is alleged to be erroneous, illegal, or excessive. A request for abatement must contain:    a.    The taxpayer’s name and address, social security number, federal identification number, or any permit number issued by the department;    b.    A statement on the type of proceeding, e.g., individual income tax or request for abatement; and    c.    The following information:    (1)   The type of tax, the taxable period or periods involved, and the amount of tax that was excessive or erroneously or illegally assessed;    (2)   Clear and concise statements of each and every error which the taxpayer alleges to have been committed by the director in the notice of assessment and which causes the assessment to be erroneous, illegal, or excessive. Each assignment of error must be separately numbered;    (3)   Clear and concise statements of all relevant facts upon which the taxpayer relies (documents verifying the correct amount of tax liability must be attached to the request);    (4)   Reference to any particular statute or statutes and any rule or rules involved, if known;    (5)   The signature of the taxpayer or that of the taxpayer’s representative and the addresses of the taxpayer and the taxpayer’s representative;    (6)   Description of records or documents which were not available or were not presented to department personnel prior to the filing of this request, if any (copies of any records or documents that were not previously presented to the department must be provided with the request); and    (7)   Any other matters deemed relevant and not covered in the above subparagraphs.    7.31(3) Review of requests.  The director may delegate review of and response to abatement requests to department staff.       This rule is intended to implement Iowa Code section 421.60.

        ITEM 23.    Amend rule 701—7.33(421) as follows:

    701—7.33(421) Mailing to the last-known addressor personal delivery of notices of assessment and refund denial letters.  Taxpayers must update their address with the department in order to receive notices of refunds of tax, notices of assessment, and notices of refund claim denials. When such a notice is sent to a taxpayer’s last-known address, the notice is legally effective even if the taxpayer never receives it.    7.33(1) Failure by department to mail to last-known address or personally deliver.      a.    If the department fails toeither mail a notice of assessment to the taxpayer’s last-known address or fails to personally deliver the notice to the taxpayer, interest is waived for the month the failure occurs through the month of correct mailing or personal delivery.    a.    b.    In addition, if the department fails toeither mailto the taxpayer’s last-known address or personally deliver to the taxpayer a notice of assessment or denial of a claim for refund to the taxpayer’s last-known address or fails to personally deliver the notice to a taxpayer and, if applicable,or fails to mail or personally deliver a copy of the notice to the taxpayer’s authorized representative,if applicable, the time period to appeal the notice of assessment or a denial of a claim for refund is suspended until the notice or claim denial is correctly mailed or personally delivered or for a period not to exceed one year, whichever is the lesser period.    b.    c.    Collection activities, except when a jeopardy situation existsin the case of a jeopardy assessment, shall be suspended and the statute of limitations for assessment and collection of the tax shall be tolled during the period in which interest is waived.    7.33(2) Determination of last-known address.  The department will make the determination of the taxpayer’s last-known address on a tax-type-by-tax-type basis. However, a notice of assessment or refund claim denial will be considered to be mailed to the last-known address if it is mailed to an address used for another tax type. A notice of assessment mailed to one of two addresses used by a taxpayer was sufficient. Langdon P. Marvin, Jr., 40 TC 982; Jack Massengale, TC Memo 1968-64.    a.    A taxpayer’s last-known address for a particular tax type shall be the one of the following most recently provided by the taxpayer and with which the department has updated its records:    (1)   The address provided in an application to register or receive a permit for a particular tax type;    (2)   The address used on the most recent filed and processed Iowa tax return of a particular tax type;    (3)   The address received by the department in a written, concise statement the taxpayer mailed to: Changes in Name or Address, Iowa Department of Revenue, P.O. Box 10465, Des Moines, Iowa 50306;    (4)   The address provided by the taxpayer in GovConnectIowa.    b.    While the determination of last-known address may differ by tax type, a notice of assessment or refund claim denial will be considered to be mailed to the last-known address if it is mailed to the taxpayer’s last-known address used for another tax type.    7.33(3)   The last-known address is the address used on the most recent filed and processed return. The following principles, established by case law, for the Internal Revenue Service (IRS) also will be applied in determining the taxpayer’s last-known address for purposes of this rule.    a.    Although the taxpayer filed a tax return showing a new address, the IRS had not processed the return sufficiently for the new address to be available by computer to the IRS agent who sent the notice of deficiency. Before a change of address is considered available, a reasonable amount of time must be allowed to process and transfer information to the IRS’s central computer system. Diane Williams v. Commissioner of Internal Revenue, U.S. Court of Appeals, 9th Circuit; 935 F. 2d 1066.    b.    If the department knows the taxpayer has moved but does not know the new mailing address, the prior mailing address is the proper place to send a deficiency notice. Kaestner v. Schmidt, 473 F. 2d 1294; Kohn vs. U.S. et al., 56 AFTR 2d 85-6147.    c.    Knowledge acquired by a collection agent regarding the taxpayer’s address in an unrelated investigation was not required to be imputed to the examination division responsible for mailing a notice of deficiency. Wise v. Commissioner, 688 F. Supp. 1164.    d.    However, information acquired by the department in a related investigation of the taxpayer is binding upon the department, e.g., where the taxpayer files a power of attorney showing a change of address.    7.33(4)   Procedures for notifying the department of a change in taxpayer’s address. The department generally will use the address on the most recent filed and properly processed return by tax type as the address of record for all notices of assessment and denial of claims for refund. If a taxpayer no longer wishes the address of record to be the address on the most recently filed return, the taxpayer must give clear and concise written notification of a change in address to the department. Notifications of a change in address should be addressed to: Changes in Name or Address, Iowa Department of Revenue, P.O. Box 10465, Des Moines, Iowa 50306.    a.    If after a joint return or married filing separately on a combined return is filed either taxpayer establishes a separate residence, each taxpayer should send clear and concise written notification of a current address to the department.    b.    If a department employee contacts a taxpayer in connection with the filing of a return or an adjustment to a taxpayer’s return, the taxpayer may provide clear and concise written notification of a change of address to the department employee who initiated the contact.    c.    A taxpayer should notify the U.S. Postal Service facility serving the taxpayer’s old address of the taxpayer’s new address in order that mail from the department can be forwarded to the new address. However, notification to the U.S. Postal Service does not constitute the clear and concise written notification that is required to change a taxpayer’s address of record with the department.    7.33(3) Personal delivery to a taxpayer.  The following shall constitute personal delivery to a taxpayer:    a.    Personal service upon a taxpayer by any method deemed sufficient to constitute personal service of an original notice pursuant to the Iowa Rules of Civil Procedure.    b.    Providing a notice of assessment or refund claim denial to the taxpayer by electronic means based on the taxpayer’s election to receive electronic communications in GovConnectIowa.    c.    With respect to a taxpayer who has not provided a last-known address for a particular tax type within the prior two years, mailing to an address the department receives from a third-party skip tracing service; a public or private utility company in response to a subpoena issued pursuant to Iowa Code section 421.17(32); or a federal, state, or local agency.    d.    By any other method that is reasonably calculated to result in the taxpayer’s actually receiving the notice, if the taxpayer actually receives the notice.    7.33(4) Personal delivery to authorized representatives.  The department may mail or personally deliver a copy of a notice to an authorized representative by one of the following methods:    a.    Mailing to the address used on the most recently filed and processed written authorization as described in rule 701—7.6(17A);    b.    In the case of fiduciary or inheritance tax matters, mailing to the address for the authorized representative contained on the most recently filed and processed return;    c.    With respect to an authorized representative who has elected to receive notices electronically, by providing the notice electronically through GovConnectIowa or similar method of electronic service;    d.    By any method deemed sufficient to constitute personal service of an original notice pursuant to the Iowa Rules of Civil Procedure;    e.    By any other method that is reasonably calculated to result in the authorized representative’s actually receiving a copy of the notice, if the authorized representative actually receives a copy of the notice.       This rule is intended to implement Iowa Code section 421.60.

        ITEM 24.    Amend renumbered rule 701—7.39(17A) as follows:

    701—7.39(17A) Licenses.      7.39(1) Denial of license; refusal to renew license.      a.    When the department is required by constitution or statute to provide notice and an opportunity for an evidentiary hearing prior to the refusal or denial of a license, a notice, as prescribed in rule 701—7.14(17A)701—7.16(17A), shall be served by the department upon the licensee or applicant. Prior to the refusal or denial of a license, the department shall give 30 days’ written notice to the applicant or licensee in which to appear at a hearing to show cause why a license should not be refused or denied. In addition to the requirements of rule 701—7.14(17A)701—7.16(17A), the notice shall contain a statement of facts or conduct and the provisions of law which warrant the denial of the license or the refusal to renew a license. If the licensee so desires, the licensee may file a petition as provided in subrule 7.23(3)7.39(3) with the presiding officer within 30 days prior to the hearing. The department may, in its discretion, file an answer to a petition filed by the licensee prior to the hearing. Thereafter, rule 701—7.17(17A)701—7.19(17A) governing contested case proceedings shall apply.    b.    When a licensee has made timely and sufficient application for the renewal of a license or a new license with reference to any activity of a continuing nature, the existing license does not expire until the application has been finally determined by the department, and in case the application is denied or the terms of the new license limited, until the last date for seeking judicial review of the department’s order or a later date fixed by order of the department or the reviewing court. See rule 481—100.2(99B)481—100.3(99B) regarding gambling license applications.    7.39(2) Revocation of license.      a.    The department shall not revoke, suspend, annul or withdraw any license until written notice is served by personal service or restricted certified mail pursuant to rule 701—7.14(17A)701—7.16(17A) within the time prescribed by the applicable statute and the licensee whose license is to be revoked, suspended, annulled, or withdrawn, is given an opportunity to show at an evidentiary hearing conducted pursuant to rule 701—7.17(17A)701—7.19(17A) compliance with all lawful requirements for the retention of the license. However, in the case of the revocation, suspension, annulment, or withdrawal of a sales or use tax permit, written notice will be served pursuant to rule 701—7.14(17A)701—7.16(17A) only if the permit holder requests that this be done following notification, by ordinary mail, of the director’s intent to revoke, suspend, annul, or withdraw the permit. In addition to the requirements of rule 701—7.14(17A)701—7.16(17A), the notice shall contain a statement of facts or conduct and the provisions of law which warrant the revocation, suspension, annulment, or withdrawal of the license. A licensee whose license may be revoked, suspended, annulled, or withdrawn, may file a petition as provided in subrule 7.23(3)7.39(3) with the clerk of the hearings section prior to the hearing. The department may, in its discretion, file an answer to a petition filed by the licensee prior to the hearing. Thereafter, rule 701—7.17(17A)701—7.19(17A) governing contested case proceedings shall apply.    b.    Notwithstanding paragraph 7.23(2)“a,”7.39(2)“a,” if the department finds that public health, safety, or welfare imperatively requires emergency action and the department incorporates a finding to that effect in an order to the licensee, summary suspension of a license shall be ordered pending proceedings for revocation as provided herein. These proceedings shall be promptly instituted and determined. When a summary suspension as provided herein is ordered, a notice of the time, place and nature of the evidentiary hearing shall be attached to the order.    7.39(3) Petition.      a.    When a person desires to file a petition as provided in subrules 7.23(1)7.39(1) and 7.23(2)7.39(2), the petition to be filed shall contain a caption in the following form:BEFORE THE DEPARTMENT OF REVENUEHOOVER STATE OFFICE BUILDINGDES MOINES, IOWAIN THE MATTER OF _____________________*PETITION(state taxpayer’s name and address, and type of license)*Docket No. _______*(filled in by Department)*    b.    The petition shall substantially state in separate numbered paragraphs the following:    a.    (1)   The full name and address of the petitioner;    b.    (2)   Reference to the type of license and the relevant statutory authority;    c.    (3)   Clear, concise and complete statements of all relevant facts showing why petitioner’s license should not be revoked, refused, or denied;    d.    (4)   Whether a similar license has previously been issued to or held by petitioner or revoked and if revoked the reasons therefor; and    e.    (5)   The signature of the petitioner or petitioner’s representative, the address of petitioner and of the petitioner’s representative, and the telephone number of petitioner or petitioner’s representative.       This rule is intended to implement Iowa Code section 17A.18.

        ITEM 25.    Adopt the following new definition of “GovConnectIowa” in rule 701—8.1(17A,421):        "GovConnectIowa" means the e-services portal of the department.

        ITEM 26.    Adopt the following new rule 701—8.6(421):

    701—8.6(421) Electing to receive communications in electronic format.  A taxpayer or taxpayer representative that is a registered account holder in GovConnectIowa may elect to receive notices, correspondence, or other communication electronically through GovConnectIowa in lieu of receiving them by regular mail. With respect to any notice, correspondence, or communication served electronically, response deadlines shall be calculated from the date the taxpayer is notified electronically of the correspondence or the item is mailed, whichever is earlier. For each account a taxpayer representative represents, if the taxpayer representative is registered in GovConnectIowa, the taxpayer representative will receive electronic notifications even if the taxpayer does not have an account. However, if the taxpayer has elected to continue to receive paper mail, the representative will continue to receive paper mail. If the taxpayer representative is not registered in GovConnectIowa, notifications will be provided by regular mail.    8.6(1) How to make the election.  The election must be made by selecting the appropriate setting on GovConnectIowa.     8.6(2) Limitations.      a.    This election only exists for persons registered in GovConnectIowa.    b.    Unless specified elsewhere in rule, this option is limited to notices, correspondence, or other communications on tax types managed in GovConnectIowa.     c.    This election is not available for mail required to be sent by means other than regular mail.     d.    Where the department finds it beneficial to continue to send items by regular mail, the department may continue to send regular mail even if an electronic copy is also provided and even if the person elects to receive electronic mail.        This rule is intended to implement Iowa Code section 421.60(11).

        ITEM 27.    Rescind and reserve rule 701—38.7(422).

        ITEM 28.    Rescind and reserve rule 701—51.8(422).

        ITEM 29.    Rescind and reserve rule 701—57.7(422).
    ARC 5818CRevenue Department[701]Notice of Intended Action

    Proposing rule making related to COVID-19 grant exclusion and providing an opportunity for public comment

        The Revenue Department hereby proposes to amend Chapter 40, “Determination of Net Income,” Chapter 53, “Determination of Net Income,” and Chapter 59, “Determination of Net Income,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 422.68 and 2021 Iowa Acts, Senate File 619, sections 5 through 7.State or Federal Law Implemented    This rule making implements, in whole or in part, 2021 Iowa Acts, Senate File 619, section 5 through 7.Purpose and Summary    The purposes of this proposed rule making are to implement the Iowa income tax exclusion for qualifying COVID-19 grants enacted by 2021 Iowa Acts, Senate File 619, division III, and identify state grant programs that qualify for the exclusion. The legislation requires the Department to identify, through rule, state grant programs that meet the definition of “qualifying COVID-19 grant” and thus qualify for the exclusion.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa beyond that of the legislation it implements. The final fiscal note for 2021 Iowa Acts, Senate File 619, division III, estimated a reduction of $9.2 million in FY 2021 and $1 million in FY 2022.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 August 31, 2021. Comments should be directed to: Michael Mertens Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.587.0458 Email: michael.mertens@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: August 31, 2021 1 to 2 p.m. Via video/conference call     Persons who wish to participate in the video/conference call should contact Michael Mertens before 4:30 p.m. on August 30, 2021, to facilitate an orderly hearing. A conference call number will be provided to participants prior to the hearing.    Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.    Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Emergency Rule Making Adopted by Reference    This proposed rule making is also published herein as an Adopted and Filed Emergency rule making (see ARC 5817C, IAB 8/11/21). The purpose of this Notice of Intended Action is to solicit public comment on that emergency rule making, whose subject matter is hereby adopted by reference.

        ITEM 1.    Adopt the following new rule 701—40.86(422):

    701—40.86(422) COVID-19 grant exclusion.      40.86(1) Definitions.  For purposes of this rule:        "Administering agency" means the economic development authority, the Iowa finance authority, or the department of agriculture and land stewardship.        "Grant recipient" means a person who applies for and is issued a qualifying COVID-19 grant by an administering agency.        "Issued" means the approval of the grant recipient’s application and amount for a qualifying COVID-19 grant by an administering agency, regardless of when the grant funds were paid by the administering agency.    40.86(2) Qualifying COVID-19 grant programs.      a.    The department is responsible for determining whether a grant program provides a “qualifying COVID-19 grant” as defined in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5. In making this determination, and for purposes of the definition of “qualifying COVID-19 grant,” a grant program is “created to primarily provide COVID-19 related financial assistance to economically impacted individuals and businesses located in this state” if that grant program, at the time of its inception, was intended by the administering agency to provide a majority (more than 50 percent) of its financial assistance to or for the benefit of either or both of the following persons economically affected by the COVID-19 pandemic:    (1)   Individuals living in Iowa.    (2)   Businesses that are doing business in Iowa or are deriving income from sources within Iowa.     b.    The administering agency shall notify the director of the existence of any grant program it believes may be a qualifying COVID-19 grant program. Upon such notification, the department will request from the administering agency the information necessary to determine whether that program is a qualifying COVID-19 grant as defined in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5, and this rule. The administering agency shall provide the department with the requested information within the time frame prescribed by the department in its request. Failure to provide the requested information to the department shall prevent the department from determining that the grant program is a qualifying COVID-19 grant. Grant programs not specifically listed below in paragraph 40.86(2)“c” are not qualifying COVID-19 grants and are not eligible for the exclusion provided in this rule, even if that program may otherwise meet the definition of “qualifying COVID-19 grant” in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5.    c.    The following is an exhaustive list of programs that have been identified by the department as qualifying COVID-19 grants, including a general description of each program’s grant recipients, that may qualify for the exclusion from Iowa net income under subrule 40.86(3):     (1)   Beef up Iowa program administered by the department of agriculture and land stewardship. Grant recipient is Iowa State University.     (2)   Iowa beginning farmer debt relief fund administered by the Iowa finance authority. Grant recipients include Iowa beginning farmers.     (3)   Iowa biofuels relief program administered by the economic development authority. Grant recipients include Iowa biodiesel and ethanol producers.     (4)   Iowa county fairs relief fund administered by the economic development authority. Grant recipients include Iowa county and district fairs.    (5)   Iowa COVID-19 business disruption relief program administered by the economic development authority. Grant recipients include Iowa bars, taverns, breweries, distilleries, wineries, and other similar drinking establishments.    (6)   Iowa COVID-19 targeted small business sole operator fund administered by the economic development authority. Grant recipients include Iowa targeted small businesses.     (7)   Iowa disposal assistance program administered by the department of agriculture and land stewardship. Grant recipients include Iowa pork and egg producers.    (8)   Iowa eviction and foreclosure prevention program administered by the Iowa finance authority. Grant recipients include Iowa residential renters and homeowners.     (9)   Iowa homeowner foreclosure prevention program administered by the Iowa finance authority. Grant recipients include Iowa residential homeowners.    (10)   Iowa hospital COVID-19 relief fund administered by the economic development authority. Grant recipients include Iowa hospitals.     (11)   Iowa livestock producer relief fund administered by the economic development authority. Grant recipients include Iowa livestock producers.     (12)   Iowa movie theatre relief grant program administered by the economic development authority. Grant recipients include Iowa movie theaters.    (13)   Iowa nonprofit recovery fund administered by the economic development authority. Grant recipients include Iowa nonprofit organizations.    (14)   Iowa renewable fuel retail recovery program administered by the department of agriculture and land stewardship. Grant recipients include Iowa fuel retailers.    (15)   Iowa rent and utility assistance program administered by the Iowa finance authority. Grant recipients include Iowa residential renters.    (16)   Iowa residential utility disruption prevention program administered by the economic development authority. Grant recipients include Iowa residential renters and homeowners.    (17)   Iowa restaurant and bar relief grant program administered by the economic development authority. Grant recipients include Iowa bars, breweries, brewpubs, distilleries, wineries, and restaurants.     (18)   Iowa small business relief grant program administered by the economic development authority. Grant recipients include Iowa small businesses.    (19)   Iowa small business utility disruption prevention program administered by the economic development authority. Grant recipients include Iowa small businesses and small nonprofit organizations.    (20)   Local produce and protein program administered by the department of agriculture and land stewardship. Grant recipients include Iowa schools, early childcare centers, specialty crop producers, and food hubs.     (21)   Meat processing expansion and development program administered by the department of agriculture and land stewardship. Grant recipients include Iowa meat and poultry processing businesses and employees and Iowa livestock producers.     (22)   Pack the pantry program administered by the department of agriculture and land stewardship. Grant recipients include Iowa food pantries.    (23)   Pass the pork program administered by the department of agriculture and land stewardship. Grant recipients include Iowa food banks.     (24)   Turkey to table program administered by the department of agriculture and land stewardship. Grant recipients include Iowa food banks.     40.86(3) Excluding qualifying COVID-19 grants from Iowa net income.      a.    Generally.A grant recipient may subtract a qualifying COVID-19 grant when calculating Iowa net income if all of the following apply:     (1)   The grant was issued as part of a qualifying COVID-19 grant program identified in paragraph 40.86(2)“c.”     (2)   The grant was issued on or after March 17, 2020, and on or before December 31, 2021.     (3)   The grant funds were included in the grant recipient’s net income for a tax year ending on or after March 17, 2020, but beginning before January 1, 2024. The grant may only be subtracted to the extent it is included in the grant recipient’s net income for that qualifying tax year. A qualifying COVID-19 grant that is exempt from federal income tax, and thus not included in the grant recipient’s Iowa net income, does not qualify for an additional subtraction on the grant recipient’s Iowa return.    b.    Third-party payee of grant funds.A third-party payee of qualifying COVID-19 grant funds is not eligible for this exemption from Iowa income. If the proceeds of a qualifying COVID-19 grant are paid to someone other than the grant recipient, only the grant recipient on whose behalf the grant proceeds were paid may qualify for this exemption from Iowa income.     c.    Repayment.Grant funds that were repaid to the administering agency for any reason are not eligible for this exemption from Iowa income.     d.    Reporting requirements.A grant recipient who received qualifying COVID-19 grant funds and who excludes those funds when calculating Iowa net income should retain documentation to support the claimed exclusion. A grant recipient must provide such documentation to the department if requested. The required documentation may include, but is not limited to, documentation to support that the grant recipient was issued and received the grant within the qualifying periods.       This rule is intended to implement Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5.

        ITEM 2.    Adopt the following new rule 701—53.30(422):

    701—53.30(422) COVID-19 grant exclusion.      53.30(1) Definitions.  For purposes of this rule:        "Administering agency" means the economic development authority, the Iowa finance authority, or the department of agriculture and land stewardship.        "Grant recipient" means a person who applies for and is issued a qualifying COVID-19 grant by an administering agency.        "Issued" means the approval of the grant recipient’s application and amount for a qualifying COVID-19 grant by an administering agency, regardless of when the grant funds were paid by the administering agency.    53.30(2) Qualifying COVID-19 grant programs.       a.    The department is responsible for determining whether a grant program provides “qualifying COVID-19 grants” as defined in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5. In making this determination, and for purposes of the definition of “qualifying COVID-19 grant,” a grant program is “created to primarily provide COVID-19 related financial assistance to economically impacted individuals and businesses located in this state” if that grant program, at the time of its inception, was intended by the administering agency to provide a majority (more than 50 percent) of its financial assistance to or for the benefit of businesses that are doing business in Iowa or are deriving income from sources within Iowa, and that are economically affected by the COVID-19 pandemic.    b.    The administering agency shall notify the director of the existence of any grant program it believes may be a qualifying COVID-19 grant program. Upon such notification, the department will request from the administering agency the information necessary to determine whether that program is a qualifying COVID-19 grant as defined in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5, and this rule. The administering agency shall provide the department with the requested information within the time frame prescribed by the department in its request. Failure to provide the requested information to the department shall prevent the department from determining that the grant program is a qualifying COVID-19 grant. Grant programs not specifically listed below in paragraph 53.30(2)“c” are not qualifying COVID-19 grants and are not eligible for the exclusion provided in this rule, even if that program may otherwise meet the definition of “qualifying COVID-19 grant” in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5.    c.    The following is an exhaustive list of programs that have been identified by the department as qualifying COVID-19 grants, including a general description of each program’s grant recipients, that may qualify for the exclusion from Iowa net income under subrule 53.30(3):     (1)   Beef up Iowa program administered by the department of agriculture and land stewardship. Grant recipient is Iowa State University.     (2)   Iowa beginning farmer debt relief fund administered by the Iowa finance authority. Grant recipients include Iowa beginning farmers.    (3)   Iowa biofuels relief program administered by the economic development authority. Grant recipients include Iowa biodiesel and ethanol producers.     (4)   Iowa county fairs relief fund administered by the economic development authority. Grant recipients include Iowa county and district fairs.    (5)   Iowa COVID-19 business disruption relief program administered by the economic development authority. Grant recipients include Iowa bars, taverns, breweries, distilleries, wineries, and other similar drinking establishments.    (6)   Iowa COVID-19 targeted small business sole operator fund administered by the economic development authority. Grant recipients include Iowa targeted small businesses.     (7)   Iowa disposal assistance program administered by the department of agriculture and land stewardship. Grant recipients include Iowa pork and egg producers.    (8)   Iowa hospital COVID-19 relief fund administered by the economic development authority. Grant recipients include Iowa hospitals.     (9)   Iowa livestock producer relief fund administered by the economic development authority. Grant recipients include Iowa livestock producers.     (10)   Iowa movie theatre relief grant program administered by the economic development authority. Grant recipients include Iowa movie theaters.    (11)   Iowa nonprofit recovery fund administered by the economic development authority. Grant recipients include Iowa nonprofit organizations.    (12)   Iowa renewable fuel retail recovery program administered by the department of agriculture and land stewardship. Grant recipients include Iowa fuel retailers.    (13)   Iowa restaurant and bar relief grant program administered by the economic development authority. Grant recipients include Iowa bars, breweries, brewpubs, distilleries, wineries, and restaurants.     (14)   Iowa small business relief grant program administered by the economic development authority. Grant recipients include Iowa small businesses.    (15)   Iowa small business utility disruption prevention program administered by the economic development authority. Grant recipients include Iowa small businesses and small nonprofit organizations.    (16)   Local produce and protein program administered by the department of agriculture and land stewardship. Grant recipients include Iowa schools, early childcare centers, specialty crop producers, and food hubs.     (17)   Meat processing expansion and development program administered by the department of agriculture and land stewardship. Grant recipients include Iowa meat and poultry processing businesses and employees and Iowa livestock producers.     (18)   Pack the pantry program administered by the department of agriculture and land stewardship. Grant recipients include Iowa food pantries.    (19)   Pass the pork program administered by the department of agriculture and land stewardship. Grant recipients include Iowa food banks.     (20)   Turkey to table program administered by the department of agriculture and land stewardship. Grant recipients include Iowa food banks.     53.30(3) Excluding qualifying COVID-19 grants from Iowa net income.      a.    Generally.A grant recipient may subtract a qualifying COVID-19 grant when calculating Iowa net income if all of the following apply:     (1)   The grant was issued as part of a qualifying COVID-19 grant program identified in paragraph 53.30(2)“c.”    (2)   The grant was issued on or after March 17, 2020, and on or before December 31, 2021.     (3)   The grant funds were included in the grant recipient’s net income for a tax year ending on or after March 17, 2020, but beginning before January 1, 2024. The grant may only be subtracted to the extent it is included in the grant recipient’s net income for that qualifying tax year. A qualifying COVID-19 grant that is exempt from federal income tax, and thus not included in the grant recipient’s Iowa net income, does not qualify for an additional subtraction on the grant recipient’s Iowa return.    b.    Third-party payee of grant funds.A third-party payee of qualifying COVID-19 grant funds is not eligible for this exemption from Iowa income. If the proceeds of a qualifying COVID-19 grant are paid to someone other than the grant recipient, only the grant recipient on whose behalf the grant proceeds were paid may qualify for this exemption from Iowa income.     c.    Repayment.Grant funds that were repaid to the administering agency for any reason are not eligible for this exemption from Iowa income.     d.    Reporting requirements.A grant recipient who received qualifying COVID-19 grant funds and who excludes those funds when calculating Iowa net income should retain documentation to support the claimed exclusion. A grant recipient must provide such documentation to the department if requested. The required documentation may include, but is not limited to, documentation to support that the grant recipient was issued and received the grant within the qualifying periods.       This rule is intended to implement Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5.

        ITEM 3.    Adopt the following new rule 701—59.32(422):

    701—59.32(422) COVID-19 grant exclusion.      59.32(1) Definitions.  For purposes of this rule:        "Administering agency" means the economic development authority, the Iowa finance authority, or the department of agriculture and land stewardship.        "Grant recipient" means a person who applies for and is issued a qualifying COVID-19 grant by an administering agency.        "Issued" means the approval of the grant recipient’s application and amount for a qualifying COVID-19 grant by an administering agency, regardless of when the grant funds were paid by the administering agency.    59.32(2) Qualifying COVID-19 grant programs.      a.    The department is responsible for determining whether a grant program provides “qualifying COVID-19 grants” as defined in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5. In making this determination, and for purposes of the definition of “qualifying COVID-19 grant,” a grant program is “created to primarily provide COVID-19 related financial assistance to economically impacted individuals and businesses located in this state” if that grant program, at the time of its inception, was intended by the administering agency to provide a majority (more than 50 percent) of its financial assistance to or for the benefit of businesses that are doing business in Iowa or are deriving income from sources within Iowa, and that are economically affected by the COVID-19 pandemic.     b.    The administering agency shall notify the director of the existence of any grant program it believes may be a qualifying COVID-19 grant program. Upon such notification, the department will request from the administering agency the information necessary to determine whether that program is a qualifying COVID-19 grant as defined in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5, and this rule. The administering agency shall provide the department with the requested information within the time frame prescribed by the department in its request. Failure to provide the requested information to the department shall prevent the department from determining that the grant program is a qualifying COVID-19 grant. Grant programs not specifically listed below in paragraph 59.32(2)“c” are not qualifying COVID-19 grants and are not eligible for the exclusion provided in this rule, even if that program may otherwise meet the definition of “qualifying COVID-19 grant” in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5.     c.    For an exhaustive list of programs that have been identified by the department as qualifying COVID-19 grants, including a general description of each program’s grant recipients, that may qualify for the exclusion from Iowa net income under subrule 59.32(3), see 701—paragraph 53.30(2)“c.”     59.32(3) Excluding qualifying COVID-19 grants from Iowa net income.      a.    Generally.A grant recipient may subtract a qualifying COVID-19 grant when calculating Iowa net income if all of the following apply:     (1)   The grant was issued as part of a qualifying COVID-19 grant program identified in 701—paragraph 53.30(2)“c.”    (2)   The grant was issued on or after March 17, 2020, and on or before December 31, 2021.     (3)   The grant funds were included in the grant recipient’s net income for a tax year ending on or after March 17, 2020, but beginning before January 1, 2024. The grant may only be subtracted to the extent it is included in the grant recipient’s net income for that qualifying tax year. A qualifying COVID-19 grant that is exempt from federal income tax, and thus not included in the grant recipient’s Iowa net income, does not qualify for an additional subtraction on the grant recipient’s Iowa return.    b.    Third-party payee of grant funds.A third-party payee of qualifying COVID-19 grant funds is not eligible for this exemption from Iowa income. If the proceeds of a qualifying COVID-19 grant are paid to someone other than the grant recipient, only the grant recipient on whose behalf the grant proceeds were paid may qualify for this exemption from Iowa income.     c.    Repayment.Grant funds that were repaid to the administering agency for any reason are not eligible for this exemption from Iowa income.     d.    Reporting requirements.A grant recipient who received qualifying COVID-19 grant funds and who excludes those funds when calculating Iowa net income should retain documentation to support the claimed exclusion. A grant recipient must provide such documentation to the department if requested. The required documentation may include, but is not limited to, documentation to support that the grant recipient was issued and received the grant within the qualifying periods.       This rule is intended to implement Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5.
    ARC 5822CRevenue Department[701]Notice of Intended Action

    Proposing rule making related to tax credit rate and total school tuition organization tax credits and providing an opportunity for public comment

        The Revenue Department hereby proposes to amend Chapter 42, “Adjustments to Computed Tax and Tax Credits,” and Chapter 52, “Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 422.68.State or Federal Law Implemented    This rule making implements, in whole or in part, 2020 Iowa Acts, House File 2641; 2018 Iowa Acts, Senate File 2417; 2019 Iowa Acts, House File 779; and 2021 Iowa Acts, House File 847.Purpose and Summary    This proposed rule making is primarily intended to implement statutory changes to the tax credit rate and the total school tuition organization tax credits that may be authorized each calendar year. 2021 Iowa Acts, House File 847, increases the tax credit rate to 75 percent from 65 percent for tax years beginning on or after January 1, 2021, and increases the amount of the credit available to taxpayers in 2022 and subsequent years. These proposed amendments also implement the provision in 2020 Iowa Acts, House File 2641, which eliminated the cap on the percentage of total tax credits that could be approved each year for a corporation. Previously, not more than 25 percent of the total annual tax credits could be allocated to corporate taxpayers.     This proposed rule making also updates the rules to reflect recent legislative changes to the 2020 and 2021 tax credit caps and certain administrative terms, including the definition of “eligible student.” Finally, this proposed rule making clarifies that a taxpayer must take the credit in the tax year in which the contribution is made.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa beyond that of the legislation it is intended to implement. The final fiscal note for 2021 Iowa Acts, House File 847, division VIII, estimated that the school tuition tax credit changes enacted in that legislation would decrease General Fund revenues for fiscal years 2022 through 2025 by $3.4 million, $3.4 million, $2.2 million, and $0.6 million, respectively.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 August 31, 2021. Comments should be directed to: Michael Mertens Department of Revenue Hoover State Office Building P.O. Box 10457 Des Moines, Iowa 50306 Phone: 515.587.0458 Email: michael.mertens@iowa.gov Public Hearing    If requested, a public hearing will be held as follows: August 31, 2021 10 to 11 a.m. Via video/conference call     Persons who wish to participate in the video/conference call should contact Michael Mertens before 4:30 p.m. on August 30, 2021, to facilitate an orderly hearing. A conference call number will be provided to participants prior to the hearing.    Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.    Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Amend rule 701—42.32(422) as follows:

    701—42.32(422) School tuition organization tax credit.  Effective for the tax year beginning on or after January 1, 2006, but beginning before January 1, 2007, a school tuition organization tax credit is available which is equal to 65 percent of the amount of the voluntary cash contributions made by a taxpayer to a school tuition organization. For tax years beginning on or after January 1, 2007, theFor tax years beginning prior to January 1, 2021, a school tuition organization tax credit is available which is equal to 65 percent of the amount of voluntary cash or noncash contributions made by a taxpayer to a school tuition organization.For tax years beginning on or after January 1, 2021, the tax credit is equal to 75 percent of the amount of voluntary cash or noncash contributions made by a taxpayer to a school tuition organization. There are numerous federal revenue regulations, rulings, court cases and other provisions relating to the determination of the value of a noncash contribution, and these are equally applicable to the determination of the amount of a school tuition organization tax credit for tax years beginning on or after January 1, 2007.    42.32(1) Definitions.  The following definitions are applicable to this rule:        "Certified enrollment" means the enrollment at schools served by school tuition organizations as of October 1, or the first Monday in October if October 1 falls on a Saturday or Sunday, of the appropriate year.        "Contribution" means a voluntary cash or noncash contribution to a school tuition organization that is not used for the direct benefit of any dependent of the taxpayer or any other student designated by the taxpayer.        "Eligible student" means a student residing in Iowa who is a member of a household whose total annual income during the calendar year prior to the school year in which the student receives a tuition grant from a school tuition organization does not exceed an amount equal to threefour times the most recently published federal poverty guidelines in the Federal Register by the United States Department of Health and Human Services.        "Qualified school" means a nonpublic elementary or secondary school in Iowa which is accredited under Iowa Code section 256.11, including a prekindergarten program for students who are five years of age by September 15 of the appropriate year, and adheres to the provisions of the federal Civil Rights Act of 1964 and Iowa Code chapter 216, and which is represented by only one school tuition organization.        "School tuition organization" means a charitable organization in Iowa that is exempt from federal taxation under Section 501(c)(3) of the Internal Revenue Code and that does all of the following:
    1. Allocates at least 90 percent of its annual revenue in tuition grants for children to allow them to attend a qualified school of their parents’ choice.
    2. Awards tuition grants only to children who reside in Iowa.
    3. Provides tuition grants to students without limiting availability to students of only one school.
    4. Provides tuition grants only to eligible students.
    5. Prepares an annual financial statement certified by a public accounting firm.
            "Tuition grant" means a grant to a student to cover all or part of the student’s tuition at a qualified school.
        42.32(2) Initial registration.  In order for contributions to a school tuition organization to qualify for the credit, the school tuition organization must initially register with the department. The following information must be provided with this initial registration:    a.    Verification from the Internal Revenue Service that Section 501(c)(3) status was granted and that the school tuition organization is exempt from federal income tax.    b.    A list of all qualified schools that the school tuition organization serves.    c.    The names and addresses of all the members of the board of directors of the school tuition organization.Once the school tuition organization is registered with the department, it is not required to subsequently register unless there is a change in the qualified schools that the organization serves. The school tuition organization must notify the department in writing of any changes in the qualified schools it serves.    42.32(3) Participation forms.  Each qualified school that is served by a school tuition organization must annually submit a participation form to the department by November 1. The following information must be provided with this participation form:    a.    The certified enrollment of the qualified school as of October 1, or the first Monday in October if October 1 falls on a Saturday or Sunday.    b.    The name of the school tuition organization that represents the qualified school.For the tax year beginning in the 2006 calendar year only, each qualified school served by a school tuition organization must submit to the department a participation form postmarked on or before August 1, 2006, which provides the certified enrollment as of the third Friday of September 2005, along with the name of the school tuition organization that represents the qualified school.    42.32(4) Authorization to issue tax credit certificates.      a.    By December 1 of each year, the department will authorize school tuition organizations to issue tax credit certificates for the following taxcalendar year. For the tax year beginning in the 2006 calendar year only, the department, by September 1, 2006, will authorize school tuition organizations to issue tax credit certificates for the 2006 calendar year only. The total amount of tax credit certificates that may be authorized is:     (1)   $2.5 million for the 2006 calendar year,     (2)   $5 million for the 2007 calendar year,     (3)   $7.5 million for the 2008 through 2011 calendar years,     (4)   $8.75 million for the 2012 and 2013 calendar years, and     (5)   $12 million forthe 2014 and subsequent calendar years.through 2018 calendar years,    (6)   $13 million for the 2019 calendar year,    (7)   $15 million for the 2020 and 2021 calendar years, and    (8)   $20 million for the 2022 calendar year and subsequent calendar years.    b.    The amount of authorized tax credit certificates for each school tuition organization is determined by dividing the total amount of tax credit available by the total certified enrollment of all qualified participating schools. This result, which is the per-student tax credit, is then multiplied by the certified enrollment of each school tuition organization to determine the tax credit authorized to each school tuition organization.    42.32(5) Issuance of tax credit certificates.      a.    The school tuition organization shall issue tax credit certificates to each taxpayer who made a cash or noncash contribution to the school tuition organization. The tax credit certificate, which will be designed by the department, willshall contain the name, address and tax identification number of the taxpayer,; the amount and date that the contribution was made,; the amount of the credit,; the tax year that the credit may be applied,; the school tuition organization to which the contribution was made,; and the tax credit certificate number.    b.    For tax years beginning on or after July 1, 2009, a tax credit certificate may be issued to corporation income taxpayers. For tax years beginning on or after January 1, 2013, aA tax credit certificate may be issued to a partnership, limited liability company, S corporation, estate or trust. The amount of credit claimed by an individual shall be based on the pro rata share of the individual’s earnings of the partnership, limited liability company, S corporation, estate or trust.    42.32(6) Claiming the tax credit.  The taxpayer must include the tax credit certificate with the tax return for which the credit is claimed.The tax credit shall be claimed in the tax year during which the contribution is made. Any credit in excess of the tax liability for the tax year may be credited to the tax liability for the following five years or until used, whichever is the earlier.    a.    The taxpayer mayshall not claim an itemized deduction for charitable contributions for Iowa income tax purposes for the amount of the contribution made to the school tuition organization.    b.    Married taxpayers who file separate returns or file separately on a combined return must allocate the school tuition organization tax credit to each spouse in the proportion that each spouse’s respective net income bears to the total combined net income. Nonresidents or part-year residents of Iowa, including those who are claiming a tax credit of a partnership, limited liability company, S corporation, estate, or trust of which they are a member, must determine the school tuition organization tax credit in the ratio of their Iowa source net income to their total source net income. In addition, if nonresidents or part-year residents of Iowa are married and elect to file separate returns or to file separately on a combined return, the school tuition organization tax credit must be allocated between the spouses in the ratio of each spouse’s Iowa source net income to the combined Iowa source net income.    42.32(7) Reporting requirements.  Each school tuition organization that issues tax credit certificates must report to the department, postmarked by January 12 of each taxcalendar year, the following information:    a.    The names and addresses of all the members of the board of directors of the school tuition organization, along with the name of the chairperson of the board.    b.    The total number and dollar value of contributions received by the school tuition organization for the previous taxcalendar year.    c.    The total number and dollar value of tax credit certificates issued by the school tuition organization for the previous taxcalendar year.    d.    A list of each taxpayer who received a tax credit certificate for the previous taxcalendar year, including the amount of the contribution and the amount of tax credit issued to each taxpayer for the previous taxcalendar year. This list should also include the tax identification number of the taxpayer and the tax credit certificate number for each certificate.    e.    The total number of children utilizing tuition grants for the school year in progress as of January 12, along with the total dollar value of the tuition grants.    f.    The name and address of each qualified school represented by the school tuition organization at which tuition grants are being utilized for the school year in progress.    g.    The number of tuition grant students and the total dollar value of tuition grants being utilized for the school year in progress at each qualified school served by the school tuition organization.       This rule is intended to implement Iowa Code section 422.11S as amended by 2013 Iowa Acts, House File 625.

        ITEM 2.    Amend rule 701—52.38(422) as follows:

    701—52.38(422) School tuition organization tax credit.  Effective for tax years beginning on or after July 1, 2009, aFor tax years beginning prior to January 1, 2021, a school tuition organization tax credit is available which is equal to 65 percent of the amount of the voluntary cash or noncash contribution made by a corporation taxpayer to a school tuition organization.For tax years beginning on or after January 1, 2021, the tax credit is equal to 75 percent of the amount of the voluntary cash or noncash contribution made by a corporation taxpayer to a school tuition organization. For tax years beginning on or after January 1, 2013, the credit is available for S corporations, partnerships, limited liability companies, estates and trusts where the income is taxed directly to the individual shareholders, partners, members or beneficiaries, an individual may claim the credit. The amount of credit claimed by an individual shall be based on the pro rata share of the individual’s earnings of theS corporation, partnership, limited liability company, estate or trust. For information on the initial registration, participation forms and reporting requirements for school tuition organizations, see rule 701—42.32(422).    52.38(1) Amount of tax credit authorized—additional limitation for corporations.      a.    Of the $7.5 million of school tuition organization tax credits authorized for the 2009 through 2011 calendar years, no more than 25 percent, or $1,875,000, can be authorized for corporation income tax taxpayers.     b.    Of the $8.75 million of school tuition organization tax credits authorized for 2012 and 2013, no more than 25 percent, or $2,187,500, can be authorized for corporation income tax taxpayers.     c.    Of the $12 million of school tuition organization tax credits authorized for 2014 and subsequent calendar yearsthrough 2018, no more than 25 percent, or $3 million, can be authorized for corporation income tax taxpayers.    d.    Of the $13 million of school tuition organization tax credits authorized for 2019, no more than 25 percent, or $3,250,000, can be authorized for corporation income tax taxpayers.     e.    Effective July 1, 2020, the prohibition against authorizing more than 25 percent of the total authorized tax credits for corporation income tax purposes was repealed. On or after July 1, 2020, of the total school tuition organization tax credits authorized for a year, any amount can be authorized for corporation income taxpayers.    52.38(2) Issuance of tax credit certificates.  The school tuition organization shall issue tax credit certificates to each taxpayer who made a cash or noncash contribution to the school tuition organization. The tax credit certificate willshall contain the name, address and tax identification number of the taxpayer,; the amount and date that the contribution was made,; the amount of the credit,; the tax year that the credit may be applied,; the school tuition organization to which the contribution was made,; and the tax credit certificate number.    52.38(3) Claiming the tax credit.  The taxpayer must include the tax credit certificate with the tax return for which the credit is claimed.The tax credit shall be claimed in the tax year during which the contribution is made. Any credit in excess of the tax liability for the tax year may be credited to the tax liability for the following five years or until used, whichever is the earlier. The taxpayer mayshall not claim a deduction for charitable contributions for Iowa corporation income tax purposes for the amount of the contribution made to the school tuition organization.       This rule is intended to implement Iowa Code section 422.33.
    ARC 5859CTransportation Department[761]Notice of Intended Action

    Proposing rule making related to the control of outdoor advertising devices and providing an opportunity for public comment

        The Transportation Department hereby proposes to amend Chapter 117, “Outdoor Advertising,” and to rescind Chapter 120, “Private Directional Signing,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 306C.11 and 307.12, 23 CFR Section 750.705, and 23 U.S.C. Section 131.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapters 306B and 306C as amended by 2021 Iowa Acts, Senate File 548; 23 CFR Section 750.705; and 23 U.S.C. Section 131.Purpose and Summary    This proposed rule making amends Chapter 117 and rescinds Chapter 120 to conform with 2021 Iowa Acts, Senate File 548, which amends Iowa Code chapters 306B and 306C. Senate File 548 redefines “advertising device” and strikes several exceptions listed in Iowa Code section 306C.11. These exceptions have been applied unequally and are based on the content of signs, which are expressions of speech. It is likely that the practice of basing these exceptions on content abridges the right to freedom of speech as protected by the First Amendment of the U.S. Constitution. The proposed amendments to Chapter 117 continue the process of eliminating these exceptions. The rescission of Chapter 120 is necessary following the repeal of Iowa Code section 306C.11(4), which contained another content-based exception for “directional signs.”    The proposed amendments to Chapter 117 strike all rules and subrules that pertain to definitions, provisions, and restrictions associated with different categories or types of signs based on message content. If a sign qualifies as an “advertising device,” as defined in Iowa Code sections 306B.1 and 306C.10 as amended by 2021 Iowa Acts, Senate File 548, sections 1 and 4, the sign will be subject to one set of standards for advertising devices, rather than standards based on the content of the message. The determining factor on whether to regulate the sign as an advertising device will be whether remuneration (compensation) is being paid or earned in exchange for the erection, display or existence of the sign.    A new subrule 117.2(2), concerning “rebuttable presumption,” is proposed to be added to provide the Department with the ability to regulate a sign as an advertising device, if sufficient documentation is not forthcoming from individuals involved with the sign. Without this ability, the opportunity exists for a person to claim that a sign is not an advertising device, while refusing to offer any information for the Department to make a determination. The process used to determine remuneration will not be overly intrusive. A simple form may be used for individuals involved with the sign to certify that no remuneration is being exchanged for the sign. If one of the parties opts to not have the forms completed, it is assumed that remuneration exists, and the sign will qualify as an “advertising device.” Advertising devices may still be permitted, but the standard permitting requirements (zoning, spacing, etc.) will apply to them.    A new subrule 117.2(7) is proposed to be added in order to grandfather in signs that are currently permitted through the private directional signing program. Current provisions exist for these signs in Chapter 120, but this chapter is being proposed to be rescinded because this program relies upon content-based factors. The effect of rescinding Chapter 120 will be minimal, because the Department has not received an application for this program in over two years.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa. The fiscal note for 2021 Iowa Acts, Senate File 548, explains the potential for a loss of $53.2 million in federal highway funding because of inaction. The proposed amendments implement the legislative changes to ensure that the Department is not put in a position of risk regarding federal highway funds.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the person’s circumstances meet the statutory criteria for a waiver may petition the Department for a waiver under 761—Chapter 11. Public Comment     Any interested person may submit written comments concerning this proposed rule making or may submit a written request to make an oral presentation at a public hearing. Written comments or requests to present oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on August 31, 2021. Comments should be directed to: Tracy George Department of Transportation DOT Rules Administrator, Government and Community Relations 800 Lincoln Way Ames, Iowa 50010 Email: tracy.george@iowadot.us Public Hearing     If requested, a public hearing to hear oral presentations will be held on September 2, 2021, at 1 p.m. via conference call. Persons who wish to participate in the conference call should contact Tracy George before 4:30 p.m. on August 31, 2021, to facilitate an orderly hearing. A conference call number will be provided to participants prior to the hearing.     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.    Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact Tracy George, the Department’s rules administrator, and advise of specific needs.     The public hearing will be canceled without further notice if no oral presentation is requested. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Rescind the definitions of “Development directory sign,” “Directional and official signs and notices,” “Directional sign,” “Obsolete sign,” “Official sign or notice,” “On-premises sign,” “Public utility sign,” and “Service club or religious notice” in rule 761—117.1(306B,306C).

        ITEM 2.    Amend rule 761—117.2(306B,306C) as follows:

    761—117.2(306B,306C) General provisions.      117.2(1) Scope.  This chapter of rules pertains to all advertising devices which are visible from the main traveled way of any primary highway, with the following exceptions:    a.    Within incorporated areas, this chapter does not apply to advertising devices which are beyond 660 feet from the nearest edge of the right-of-way.    b.    Except where specified otherwise, thisThis chapter does not apply to official traffic control devices, logo signing,or tourist-oriented directional signing, or private directional signing.    117.2(2) Rebuttable presumption.  The department may regulate signs as advertising devices except when sufficient documentation from persons reasonably identified as potential payors or receivers of remuneration is available to the department showing or certifying that remuneration does not exist.    117.(2) 117.2(3) Contact information.  Inquiries, requests for forms, and applications regarding this chapter shall be directed to the Advertising Management Section, Traffic and Safety Bureau, Department of Transportation, 800 Lincoln Way, Ames, Iowa 50010.    117.(3) 117.2(4) Unauthorized signs, signals, or markings.  Any sign, signal, marking or device prohibited by Iowa Code section 321.259 is a public nuisance and shall be removed by the department if it is within the department’s jurisdiction.    117.(4) 117.2(5) Advertising devices obstructing the view of a highway or railway.  Any advertising device that obstructs the view of any portion of a public highway or railway track in violation of Iowa Code subsectionsection 318.11(2) or 657.2(7) is a public nuisance, which shall be abated as provided in Iowa Code chapter 657.    117.(5) 117.2(6) Advertising devices within the right-of-way.  Any advertising device placed or erected within the right-of-way of any primary highway in violation of Iowa Code chapter 318 is subject to removal in the manner specified in Iowa Code chapter 318.    117.2(7) Advertising devices permitted under the private directional sign program between May 26, 1983, and July 1, 2021.      a.    Any advertising device permitted as a private directional sign by the department between May 26, 1983, and July 1, 2021, may continue to exist, even if nonconforming to this chapter, with the following conditions:    (1)   The permit is renewed each year by payment of a $15 fee on or before July 1.    (2)   The permit may not be transferred to an entity representing a different activity or site.    (3)   The advertising device is not modified or destroyed.    (4)   The advertising device is properly maintained with legible copy.    (5)   The design or display of the advertising device does not violate any federal or state laws or regulations.    b.    Advertising devices which fail to meet any of the conditions in this subrule shall be subject to removal as provided for in rule 761—117.8(306B,306C).

        ITEM 3.    Amend subrule 117.3(1) as follows:    117.3(1) Prohibition.  Advertising devices shall not be erected, maintained or illuminated unless they comply with the following:    a.    No advertising device shall attempt or appear to attempt to direct the movement of traffic.    b.    No advertising device shall interfere with, imitate or resemble any official sign, signal or deviceerected by the department within the right-of-way of any primary highway.    c.    No advertising device subject to the more restrictive controls of the bonus Act shall move or have any animated or moving parts.    d.    No advertising device shall be erected or maintained upon trees, painted or drawn upon rocks or other natural features.    e.    No off-premises advertising device shall include any flashing, intermittent or moving light or lights except those signs giving public service information such as time, date, temperature, weather and news. No on-premises sign located within the adjacent area of an interstate highway but outside an area zoned and used for commercial or industrial purposes, as defined in rule 761—117.1(306B,306C), shall include any flashing, intermittent or moving light or lights except those signs giving public service information such as time, date, temperature, weather and news. Any variation or addition to the stated service information is subject to department approval. This paragraph does not prohibit an LED display, provided:    (1)   Each change of message is accomplished in one second or less.    (2)   Each message remains in a fixed position for at least eight seconds.    (3)   No traveling messages (e.g., moving messages, animated messages, full-motion video, scrolling text messages) or segmented messages are presented.    f.    No lighting shall be used in any way in connection with any advertising device unless it is so effectively shielded as to prevent beams or rays of light from being directed at any portion of the main traveled way of any highway, or is of such low intensity or brilliance as to not cause glare or to impair the vision of the driver of any motor vehicle, or to otherwise interfere with any driver’s operation of a motor vehicle. This paragraph does not prohibit an LED display provided the light intensity presented does not exceed that allowed for other illuminated displays.    g.    No advertising device subject to the more restrictive controls of the bonus Act shall be obsolete.    h.    No advertising device shall be in a state of disrepair or illegible for a period of time exceeding 90 days.    i.    Advertising devices shall be securely affixed to a substantial structure.    j.    No advertising device subject to the more restrictive controls of the bonus Act shall advertise activities which are illegal under federal or state laws in effect at the location of those activities or at the location of the sign.    k.    An advertising device shall comply with all applicable state and local laws, regulations and ordinances, including but not limited to zoning, building and sign codes as locally interpreted and applied and enforced, which may be stricter than this chapter.    l.    No off-premises advertising device may be erected within the adjacent area of any primary highway that has been designated a scenic highway or scenic byway if the advertising device will be visible from the highway. However, if the off-premises advertising device was in existence at the time of the designation, subsequent permitting may occur in accordance with Iowa Code section 306C.18.    m.    An advertising device shall not be constructed or reconstructed beyond the adjacent area in unincorporated areas of the state if the advertising device is visible from the main traveled way of any primary highway except for on-premises signs and official signs and notices.

        ITEM 4.    Rescind and reserve rule 761—117.4(306B,306C).

        ITEM 5.    Amend rule 761—117.5(306B,306C), introductory paragraph, as follows:

    761—117.5(306B,306C) Location, size and spacing requirements.  This rule does not apply to on-premises signs.

        ITEM 6.    Rescind and reserve paragraph 117.5(5)"j".

        ITEM 7.    Amend rule 761—117.6(306C), introductory paragraph, as follows:

    761—117.6(306C) Outdoor advertising permits and fees required.  The owner of an advertising device must apply to the department for an outdoor advertising permit if the device is visible from the main traveled way of any primary highway and the device is regulated by subrule 117.4(1) or rule 761—117.5(306B,306C)subject to subrule 117.2(1).

        ITEM 8.    Amend paragraph 117.6(9)"a" as follows:    a.    A blank sign is:    (1)   An advertising device that has had a face physically removed.    (2)   An advertising device that does not display copy. “This space for rent” or a similar message is not copy.    (3)   An advertising device that qualifies as an obsolete sign.

        ITEM 9.    Rescind and reserve rule 761—117.7(306C).

        ITEM 10.    Amend subrule 117.8(2) as follows:    117.8(2) Removal from right-of-way and other state-owned property.  The department shall remove advertising devices erected upon the right-of-way of any primary highway; see subrule 117.2(5)117.2(6). Unauthorized advertising devices erected upon other property owned by the state of Iowa are subject to removal by the agency, board, commission or department having control or jurisdiction of the property.

        ITEM 11.    Amend subrule 117.10(2) as follows:    117.10(2)   The owner of an outdoor advertising permit which has been revoked or canceled by the department may contest the decision in accordance with 761—Chapter 13. The request for a contested case hearing shall be submitted in writing to the director of the traffic and safety bureau at the address in subrule 117.2(2)117.2(3). The request shall be deemed timely submitted if it is delivered or postmarked within 30 days of the owner’s receipt of the revocation notice issued by the department.

        ITEM 12.    Rescind and reserve rule 761—117.15(306C).

        ITEM 13.    Amend 761—Chapter 117, implementation sentence, as follows:       These rules are intended to implement Iowa Code chapters 306B and 306Cas amended by 2021 Iowa Acts, Senate File 548, and section 306D.4, 23 U.S.C. 131, and 23 CFR 750.705(h).

        ITEM 14.    Rescind and reserve 761—Chapter 120.
    ARC 5858CTransportation Department[761]Notice of Intended Action

    Proposing rule making related to ignition interlock devices and providing an opportunity for public comment

        The Transportation Department hereby proposes to amend Chapter 615, “Sanctions,” and Chapter 620, “OWI and Implied Consent,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 307.12.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 321.218 as amended by 2021 Iowa Acts, House File 757, section 1, and chapter 321J as amended by 2021 Iowa Acts, House 757, sections 2 to 7.Purpose and Summary    This proposed rule making updates Chapters 615 and 620 to comply with 2021 Iowa Acts, House File 757, sections 1 to 7.     House File 757 authorizes a person with no previous operating while intoxicated (OWI) conviction or revocation to install an ignition interlock device (IID) only on the vehicle(s) the person intends to operate while driving on a temporary restricted license (TRL) rather than on every vehicle the person owns or operates. Prior to this legislative change, any person serving a driver’s license sanction for an OWI offense was required to install an IID on every vehicle the person owned or operated as a condition of obtaining a TRL, even if it was the person’s first OWI offense. The law continues to require a person serving a second or subsequent OWI offense to install an IID on every vehicle the person owns or operates as a condition of obtaining a TRL. The legislation also eliminated the prohibition against issuing a TRL to a person serving a driver’s license sanction for driving while the license was revoked or suspended under Iowa Code sections 321.218 and 321J.21.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa beyond any impact anticipated by 2021 Iowa Acts, House File 757. 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. Public Comment     Any interested person may submit written comments concerning this proposed rule making or may submit a written request to make an oral presentation at a public hearing. Written comments or requests to present oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on August 31, 2021. Comments should be directed to: Tracy George Department of Transportation DOT Rules Administrator, Government and Community Relations 800 Lincoln Way Ames, Iowa 50010 Email: tracy.george@iowadot.us Public Hearing     If requested, a public hearing to hear oral presentations will be held on September 2, 2021, at 9 a.m. via conference call. Persons who wish to participate in the conference call should contact Tracy George before 4:30 p.m. on August 31, 2021, to facilitate an orderly hearing. A conference call number will be provided to participants prior to the hearing.     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.     Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact Tracy George, the Department’s rules administrator, and advise of specific needs.     The public hearing will be canceled without further notice if no oral presentation is requested. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Rescind and reserve paragraph 615.45(1)"e".

        ITEM 2.    Amend rule 761—615.45(321), implementation sentence, as follows:       This rule is intended to implement Iowa Code chapter 321A and sections 252J.8, 321.177, 321.178, 321.184, 321.185, 321.186, 321.189, 321.191, 321.193, 321.194, 321.201, 321.205, 321.209, 321.210, 321.210A, 321.212, 321.213A, 321.213B, 321.215, 321.218as amended by 2021 Iowa Acts, House File 757, section 1, 321.513, 321.560 and 321J.17.

        ITEM 3.    Amend rule 761—620.2(321J) as follows:

    761—620.2(321J) Information and location.  Applications, forms, information, assistance, and answers to questions relating to this chapter are available by mail from the Driver and Identification Services BureauMotor Vehicle Division, Iowa Department of Transportation, P.O. Box 9204, Des Moines, Iowa 50306-9204; in person at 6310 SE Convenience Blvd., Ankeny, Iowa; by telephone at (515)244-8725; or by facsimile at (515)239-1837.

        ITEM 4.    Strike “driver and identification services bureau” wherever it appears in rules 761—620.3(321J) and 761—620.4(321J) and insert “motor vehicle division” in lieu thereof.

        ITEM 5.    Amend subrule 620.3(2) as follows:    620.3(2) Additional requirements.  A person applying for a temporary restricted license shall also comply with all of the following requirements:    a.    Provide a description of all motor vehicles owned or operated under the temporary restricted licenseif the person has no previous operating while intoxicated conviction or revocation.If the person has a second or subsequent operating while intoxicated conviction or revocation, the person shall provide a description of all motor vehicles owned by such person or operated under the temporary restricted license.    b.    Submit proof of financial responsibility under Iowa Code chapter 321A for all motor vehicles owned or operated under the temporary restricted license.    c.    Provide certification of installation of an approved ignition interlock device on every motor vehicle owned or operatedif the person has no previous operating while intoxicated conviction or revocation.If the person has a second or subsequent operating while intoxicated conviction or revocation, the person shall provide certification of installation of an approved ignition interlock device on every motor vehicle owned by such person or operated under the temporary restricted license.    d.    Pay the $200 civil penalty.

        ITEM 6.    Amend 761—Chapter 620, implementation sentence, as follows:       These rules are intended to implement Iowa Code chapterschapter 17A and; chapter 321Jas amended by 2021 Iowa Acts, House File 757, sections 2 to 7; and sections 321.193, 321.201, 321.376 and 707.6A.
    ARC 5848CVeterinary Medicine Board[811]Notice of Intended Action

    Proposing rule making related to veterinarian/client/patient relationships and providing an opportunity for public comment

        The Board of Veterinary Medicine hereby proposes to amend Chapter 12, “Standards of Practice,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 169.5.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 169.5.Purpose and Summary    Currently, a veterinarian/client/patient relationship (VCPR) is established when three criteria are met. The proposed amendment revises one of these criteria by requiring that in order to maintain a VCPR, a veterinarian must perform a physical examination or have visited the patient on-site within the previous 12 months.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 811—Chapter 14.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 August 31, 2021. Comments should be directed to: Colin Tadlock Iowa Department of Agriculture and Land Stewardship Wallace State Office Building 502 East 9th Street Des Moines, Iowa 50319 Email: colin.tadlock@iowaagriculture.gov Public Hearing     A public hearing at which persons may present their views orally or in writing will be held as follows: September 1, 2021 10 to 11 a.m. Second Floor Boardroom Wallace State Office Building Des Moines, Iowa    Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.     Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the 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 paragraph 12.1(1)"b" as follows:    b.    The licensed veterinarian has sufficient knowledge of the patient to initiate at least a general or preliminary diagnosis of the medical condition of the patient. Sufficient knowledge means that the licensed veterinarian has recently seen or is personally acquainted with the care of the patient by virtue of ana physical examination of the patient or by medically appropriate and timely visitswithin the past 12 months to the premises where the patient is kept; and
    ARC 5847CLabor Services Division[875]Adopted and Filed Emergency

    Rule making related to emergency temporary standard related to COVID-19

        The Labor Commissioner hereby amends Chapter 10, “General Industry Safety and Health Rules,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 88.5.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 88.Purpose and Summary    The Iowa Labor Commissioner is required to adopt by reference changes to the U.S. Department of Labor’s occupational safety and health standards. This rule making adopts by reference federal Occupational Safety and Health’s (OSHA’s) new emergency temporary standard (ETS) related to the COVID-19 pandemic. The ETS applies only to certain locations where health care services are provided, and it is set to expire after six months.Reason for Adoption of Rule Making Without Prior Notice and Opportunity for Public Participation    Pursuant to Iowa Code section 17A.4(3), the Commissioner finds that notice and public participation are unnecessary or impractical because emergency adoption was approved by the Administrative Rules Review Committee. At 29 CFR 1953.5(b)(1), a requirement is set forth for Iowa to adopt by reference the new ETS within 30 days of the federal adoption.    In compliance with Iowa Code section 17A.4(3)“a,” the Administrative Rules Review Committee at its July 13, 2021, meeting reviewed the Commissioner’s determination and this rule making and approved the emergency adoption.Reason for Waiver of Normal Effective Date    Pursuant to Iowa Code section 17A.5(2)“b”(1)(c), the Commissioner also finds that the normal effective date of this rule making, 35 days after publication, should be waived and the rule making made effective on July 21, 2021, because federal OSHA found that the ETS is necessary due to the grave danger posed by the COVID-19 virus. Iowa Code section 88.5(5) is closely aligned with the federal ETS law. The ETS is aimed at protecting workers facing the highest COVID-19 hazards—those working in health care settings where suspected or confirmed COVID-19 patients are treated.Adoption of Rule Making    This rule making was adopted by the Commissioner on July 20, 2021.Concurrent Publication of Notice of Intended Action    In addition to its adoption on an emergency basis, this rule making has been initiated through the normal rule-making process and is published herein under Notice of Intended Action as ARC 5846C to allow for public comment.Fiscal Impact    In the Federal Register, the U.S. Department of Labor published a large amount of data as part of its economic analysis. The analysis concluded the ETS is economically feasible and the benefits far outweigh the costs. However, data specific to Iowa is not available. 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 5.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making became effective on July 22, 2021.    The following rule-making action is adopted:

        ITEM 1.    Amend rule 875—10.20(88) by inserting the following at the end thereof:86 Fed. Reg. 32620 (June 22, 2021)    [Filed Emergency 7/20/21, effective 7/22/21][Published 8/11/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/11/21.
    ARC 5820CPharmacy Board[657]Adopted and Filed Emergency

    Rule making related to pharmacy technician administration of vaccines

        The Board of Pharmacy hereby amends Chapter 3, “Pharmacy Technicians,” Iowa Administrative Code. Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 147.76 and 155A.6A.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 155A.6A.Purpose and Summary    This rule making provides the minimum training requirements for pharmacy technicians to engage in the administration of vaccinations. Currently, under the national public health emergency declaration and Public Readiness and Emergency Preparedness (PREP) Act in response to the global coronavirus pandemic, pharmacy technicians are authorized, pursuant to training and continuing education requirements, to administer pediatric vaccinations to any patient aged 3 to 18 years old and COVID-19 vaccinations to patients of any age for which the vaccination is authorized or approved. This rule making identifies properly trained pharmacy technicians so that the technicians may engage in pharmacist-delegated vaccine administration of immunizations and not be limited to pediatric or COVID-19 vaccinations.Reason for Adoption of Rule Making Without Prior Notice and Opportunity for Public Participation    Pursuant to Iowa Code section 17A.4(3), the Board finds that notice and public participation are unnecessary or impractical because emergency adoption was approved by the Administrative Rules Review Committee. The normal rule-making process would extend well into or beyond the coming fall influenza and pneumonia vaccination season (typically initiated late August and primarily completed by the end of October). The requirements in this rule making essentially mirror the requirements under the federal PREP Act for pharmacy technicians to engage in vaccine administration. The Board will also complete the notice and public participation processes via a simultaneous rule making.    In compliance with Iowa Code section 17A.4(3)“a,” the Administrative Rules Review Committee at its July 13, 2021, meeting reviewed the Board’s determination and this rule making and approved the emergency adoption.Reason for Waiver of Normal Effective Date    Pursuant to Iowa Code section 17A.5(2)“b”(1)(b) and (c), the Board also finds that the normal effective date of this rule making, 35 days after publication, should be waived and the rule making made effective on July 15, 2021, because allowing properly trained pharmacy technicians to assist pharmacists in vaccine administration during the upcoming influenza/pneumonia season (when there may also continue to be the compounding public health risk of continued COVID-19 infections or the public health protection of continued COVID-19 initial or booster vaccinations) will allow pharmacists to focus on the clinical aspects of the process and provide patients with increased access to vaccinations.Adoption of Rule Making    This rule making was adopted by the Board on July 14, 2021.Concurrent Publication of Notice of Intended Action    In addition to its adoption on an emergency basis, this rule making has been initiated through the normal rule-making process and is published herein under Notice of Intended Action as ARC 5831C to allow for public comment.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs can be determined.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 657—Chapter 34.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making became effective on July 15, 2021.    The following rule-making action is adopted:

        ITEM 1.    Amend rule 657—3.17(155A) as follows:

    657—3.17(155A) Training and utilization of pharmacy technicians.      3.17(1) Policies and procedures.  All licensed pharmacies located in Iowa that utilize pharmacy technicians shall develop, implement, and periodically review written policies and procedures for the training and utilization of pharmacy technicians appropriate to the practice of pharmacy. Pharmacy policies shall specify the frequency of review.     3.17(2) Documented training.  Pharmacy technician training shall be documented and maintained by the pharmacy for the duration of employment. Policies and procedures and documentation of pharmacy technician training shall be available for inspection and copying by the board or an agent of the board.    3.17(3) Vaccine administration training and continuing education.  A pharmacy technician who administers a vaccine or immunization under the supervision of a pharmacist shall document successful completion of the requirements in paragraph 3.17(3)“a” or “b” and shall maintain competency by completing and maintaining documentation of the continuing education requirements in paragraph 3.17(3)“c.”    a.    Initial qualification.Except as provided in paragraph 3.17(3)“b,” a technician shall have successfully completed an Accreditation Council for Pharmacy Education (ACPE)-accredited program on vaccine administration that is an evidence-based program that includes study material and hands-on training and techniques for administering vaccines, requires testing with a passing score, complies with current Centers for Disease Control and Prevention (CDC) guidelines, and provides instruction and experiential training in the following content areas:    (1)   Standards for immunization practices;    (2)   Basic immunology and vaccine protection;     (3)   Vaccine-preventable diseases;    (4)   Recommended immunization schedules;    (5)   Vaccine storage and management;     (6)   Informed consent;    (7)   Physiology and techniques for vaccine administration;    (8)   Immunization record management; and     (9)   Identification of adverse events.    b.    Previous qualification.A technician who is currently licensed as a registered nurse shall be deemed to have met the training requirement.    c.    Continuing education.During any technician registration renewal period, a technician who engages in the administration of vaccines shall complete and document at least one hour of ACPE-approved continuing education with the ACPE topic designator “06” followed by the letter “T” or “P.”    d.    Certification maintained.During any period within which a technician may engage in the administration of vaccines, the technician shall maintain current certification in basic cardiac life support through a training program designated for health care providers that includes hands-on training.
        [Filed Emergency 7/14/21, effective 7/15/21][Published 8/11/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/11/21.
    ARC 5817CRevenue Department[701]Adopted and Filed Emergency

    Rule making related to COVID-19 grant exclusion

        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 and 2021 Iowa Acts, Senate File 619, sections 5 through 7.State or Federal Law Implemented    This rule making implements, in whole or in part, 2021 Iowa Acts, Senate File 619, sections 5 through 7.Purpose and Summary    The purposes of this rule making are to implement the Iowa income tax exclusion for qualifying COVID-19 grants enacted by 2021 Iowa Acts, Senate File 619, division III, and identify state grant programs that qualify for the exclusion. The legislation requires the Department to identify, through rule, state grant programs that meet the definition of “qualifying COVID-19 grant” and thus qualify for the exclusion.Reason for Adoption of Rule Making Without Prior Notice and Opportunity for Public Participation    Pursuant to Iowa Code section 17A.4(3), the Department finds that notice and public participation are unnecessary or impractical because emergency adoption was approved by the Administrative Rules Review Committee. This new income tax exclusion for qualifying COVID-19 grants is effective immediately and retroactive to tax years ending on or after March 17, 2020. This means that taxpayers who have already filed their 2019 and 2020 Iowa income tax returns may be eligible for an additional adjustment to income. The legislation restricts the exclusion to the COVID-19 grant programs identified by the Department through rule, so making the rules effective immediately will enable taxpayers to rely on the rules and file amended Iowa income tax returns to take advantage of this new income tax exclusion in a timely manner and without additional delay.    In compliance with Iowa Code section 17A.4(3)“a,” the Administrative Rules Review Committee at its July 13, 2021, meeting reviewed the Department’s determination and this rule making and approved the emergency adoption.Reason for Waiver of Normal Effective Date    Pursuant to Iowa Code section 17A.5(2)“b”(1)(b), the Department also finds that the normal effective date of this rule making, 35 days after publication, should be waived and the rule making made effective on July 13, 2021, because the rule confers a benefit to the public by identifying COVID-19 grant programs that qualify for the income tax exclusion. This will allow taxpayers to take advantage of the exclusion as described above before the normal effective date.Adoption of Rule Making    This rule making was adopted by the Department on July 13, 2021.Concurrent Publication of Notice of Intended Action    In addition to its adoption on an emergency basis, this rule making has been initiated through the normal rule-making process and is published herein under Notice of Intended Action as ARC 5818C to allow for public comment.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa beyond that of the legislation it is implementing. The final fiscal note for 2021 Iowa Acts, Senate File 619, division III, estimated a reduction of $9.2 million in FY 2021 and $1 million in FY 2022.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making became effective on July 13, 2021.    The following rule-making actions are adopted:

        ITEM 1.    Adopt the following new rule 701—40.86(422):

    701—40.86(422) COVID-19 grant exclusion.      40.86(1) Definitions.  For purposes of this rule:        "Administering agency" means the economic development authority, the Iowa finance authority, or the department of agriculture and land stewardship.        "Grant recipient" means a person who applies for and is issued a qualifying COVID-19 grant by an administering agency.        "Issued" means the approval of the grant recipient’s application and amount for a qualifying COVID-19 grant by an administering agency, regardless of when the grant funds were paid by the administering agency.    40.86(2) Qualifying COVID-19 grant programs.      a.    The department is responsible for determining whether a grant program provides a “qualifying COVID-19 grant” as defined in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5. In making this determination, and for purposes of the definition of “qualifying COVID-19 grant,” a grant program is “created to primarily provide COVID-19 related financial assistance to economically impacted individuals and businesses located in this state” if that grant program, at the time of its inception, was intended by the administering agency to provide a majority (more than 50 percent) of its financial assistance to or for the benefit of either or both of the following persons economically affected by the COVID-19 pandemic:    (1)   Individuals living in Iowa.    (2)   Businesses that are doing business in Iowa or are deriving income from sources within Iowa.     b.    The administering agency shall notify the director of the existence of any grant program it believes may be a qualifying COVID-19 grant program. Upon such notification, the department will request from the administering agency the information necessary to determine whether that program is a qualifying COVID-19 grant as defined in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5, and this rule. The administering agency shall provide the department with the requested information within the time frame prescribed by the department in its request. Failure to provide the requested information to the department shall prevent the department from determining that the grant program is a qualifying COVID-19 grant. Grant programs not specifically listed below in paragraph 40.86(2)“c” are not qualifying COVID-19 grants and are not eligible for the exclusion provided in this rule, even if that program may otherwise meet the definition of “qualifying COVID-19 grant” in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5.    c.    The following is an exhaustive list of programs that have been identified by the department as qualifying COVID-19 grants, including a general description of each program’s grant recipients, that may qualify for the exclusion from Iowa net income under subrule 40.86(3):     (1)   Beef up Iowa program administered by the department of agriculture and land stewardship. Grant recipient is Iowa State University.     (2)   Iowa beginning farmer debt relief fund administered by the Iowa finance authority. Grant recipients include Iowa beginning farmers.     (3)   Iowa biofuels relief program administered by the economic development authority. Grant recipients include Iowa biodiesel and ethanol producers.     (4)   Iowa county fairs relief fund administered by the economic development authority. Grant recipients include Iowa county and district fairs.    (5)   Iowa COVID-19 business disruption relief program administered by the economic development authority. Grant recipients include Iowa bars, taverns, breweries, distilleries, wineries, and other similar drinking establishments.    (6)   Iowa COVID-19 targeted small business sole operator fund administered by the economic development authority. Grant recipients include Iowa targeted small businesses.     (7)   Iowa disposal assistance program administered by the department of agriculture and land stewardship. Grant recipients include Iowa pork and egg producers.    (8)   Iowa eviction and foreclosure prevention program administered by the Iowa finance authority. Grant recipients include Iowa residential renters and homeowners.     (9)   Iowa homeowner foreclosure prevention program administered by the Iowa finance authority. Grant recipients include Iowa residential homeowners.    (10)   Iowa hospital COVID-19 relief fund administered by the economic development authority. Grant recipients include Iowa hospitals.     (11)   Iowa livestock producer relief fund administered by the economic development authority. Grant recipients include Iowa livestock producers.     (12)   Iowa movie theatre relief grant program administered by the economic development authority. Grant recipients include Iowa movie theaters.    (13)   Iowa nonprofit recovery fund administered by the economic development authority. Grant recipients include Iowa nonprofit organizations.    (14)   Iowa renewable fuel retail recovery program administered by the department of agriculture and land stewardship. Grant recipients include Iowa fuel retailers.    (15)   Iowa rent and utility assistance program administered by the Iowa finance authority. Grant recipients include Iowa residential renters.    (16)   Iowa residential utility disruption prevention program administered by the economic development authority. Grant recipients include Iowa residential renters and homeowners.    (17)   Iowa restaurant and bar relief grant program administered by the economic development authority. Grant recipients include Iowa bars, breweries, brewpubs, distilleries, wineries, and restaurants.     (18)   Iowa small business relief grant program administered by the economic development authority. Grant recipients include Iowa small businesses.    (19)   Iowa small business utility disruption prevention program administered by the economic development authority. Grant recipients include Iowa small businesses and small nonprofit organizations.    (20)   Local produce and protein program administered by the department of agriculture and land stewardship. Grant recipients include Iowa schools, early childcare centers, specialty crop producers, and food hubs.     (21)   Meat processing expansion and development program administered by the department of agriculture and land stewardship. Grant recipients include Iowa meat and poultry processing businesses and employees and Iowa livestock producers.     (22)   Pack the pantry program administered by the department of agriculture and land stewardship. Grant recipients include Iowa food pantries.    (23)   Pass the pork program administered by the department of agriculture and land stewardship. Grant recipients include Iowa food banks.     (24)   Turkey to table program administered by the department of agriculture and land stewardship. Grant recipients include Iowa food banks.     40.86(3) Excluding qualifying COVID-19 grants from Iowa net income.      a.    Generally.A grant recipient may subtract a qualifying COVID-19 grant when calculating Iowa net income if all of the following apply:     (1)   The grant was issued as part of a qualifying COVID-19 grant program identified in paragraph 40.86(2)“c.”     (2)   The grant was issued on or after March 17, 2020, and on or before December 31, 2021.     (3)   The grant funds were included in the grant recipient’s net income for a tax year ending on or after March 17, 2020, but beginning before January 1, 2024. The grant may only be subtracted to the extent it is included in the grant recipient’s net income for that qualifying tax year. A qualifying COVID-19 grant that is exempt from federal income tax, and thus not included in the grant recipient’s Iowa net income, does not qualify for an additional subtraction on the grant recipient’s Iowa return.    b.    Third-party payee of grant funds.A third-party payee of qualifying COVID-19 grant funds is not eligible for this exemption from Iowa income. If the proceeds of a qualifying COVID-19 grant are paid to someone other than the grant recipient, only the grant recipient on whose behalf the grant proceeds were paid may qualify for this exemption from Iowa income.     c.    Repayment.Grant funds that were repaid to the administering agency for any reason are not eligible for this exemption from Iowa income.     d.    Reporting requirements.A grant recipient who received qualifying COVID-19 grant funds and who excludes those funds when calculating Iowa net income should retain documentation to support the claimed exclusion. A grant recipient must provide such documentation to the department if requested. The required documentation may include, but is not limited to, documentation to support that the grant recipient was issued and received the grant within the qualifying periods.       This rule is intended to implement Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5.

        ITEM 2.    Adopt the following new rule 701—53.30(422):

    701—53.30(422) COVID-19 grant exclusion.      53.30(1) Definitions.  For purposes of this rule:        "Administering agency" means the economic development authority, the Iowa finance authority, or the department of agriculture and land stewardship.        "Grant recipient" means a person who applies for and is issued a qualifying COVID-19 grant by an administering agency.        "Issued" means the approval of the grant recipient’s application and amount for a qualifying COVID-19 grant by an administering agency, regardless of when the grant funds were paid by the administering agency.    53.30(2) Qualifying COVID-19 grant programs.       a.    The department is responsible for determining whether a grant program provides “qualifying COVID-19 grants” as defined in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5. In making this determination, and for purposes of the definition of “qualifying COVID-19 grant,” a grant program is “created to primarily provide COVID-19 related financial assistance to economically impacted individuals and businesses located in this state” if that grant program, at the time of its inception, was intended by the administering agency to provide a majority (more than 50 percent) of its financial assistance to or for the benefit of businesses that are doing business in Iowa or are deriving income from sources within Iowa, and that are economically affected by the COVID-19 pandemic.    b.    The administering agency shall notify the director of the existence of any grant program it believes may be a qualifying COVID-19 grant program. Upon such notification, the department will request from the administering agency the information necessary to determine whether that program is a qualifying COVID-19 grant as defined in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5, and this rule. The administering agency shall provide the department with the requested information within the time frame prescribed by the department in its request. Failure to provide the requested information to the department shall prevent the department from determining that the grant program is a qualifying COVID-19 grant. Grant programs not specifically listed below in paragraph 53.30(2)“c” are not qualifying COVID-19 grants and are not eligible for the exclusion provided in this rule, even if that program may otherwise meet the definition of “qualifying COVID-19 grant” in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5.    c.    The following is an exhaustive list of programs that have been identified by the department as qualifying COVID-19 grants, including a general description of each program’s grant recipients, that may qualify for the exclusion from Iowa net income under subrule 53.30(3):     (1)   Beef up Iowa program administered by the department of agriculture and land stewardship. Grant recipient is Iowa State University.     (2)   Iowa beginning farmer debt relief fund administered by the Iowa finance authority. Grant recipients include Iowa beginning farmers.    (3)   Iowa biofuels relief program administered by the economic development authority. Grant recipients include Iowa biodiesel and ethanol producers.     (4)   Iowa county fairs relief fund administered by the economic development authority. Grant recipients include Iowa county and district fairs.    (5)   Iowa COVID-19 business disruption relief program administered by the economic development authority. Grant recipients include Iowa bars, taverns, breweries, distilleries, wineries, and other similar drinking establishments.    (6)   Iowa COVID-19 targeted small business sole operator fund administered by the economic development authority. Grant recipients include Iowa targeted small businesses.     (7)   Iowa disposal assistance program administered by the department of agriculture and land stewardship. Grant recipients include Iowa pork and egg producers.    (8)   Iowa hospital COVID-19 relief fund administered by the economic development authority. Grant recipients include Iowa hospitals.     (9)   Iowa livestock producer relief fund administered by the economic development authority. Grant recipients include Iowa livestock producers.     (10)   Iowa movie theatre relief grant program administered by the economic development authority. Grant recipients include Iowa movie theaters.    (11)   Iowa nonprofit recovery fund administered by the economic development authority. Grant recipients include Iowa nonprofit organizations.    (12)   Iowa renewable fuel retail recovery program administered by the department of agriculture and land stewardship. Grant recipients include Iowa fuel retailers.    (13)   Iowa restaurant and bar relief grant program administered by the economic development authority. Grant recipients include Iowa bars, breweries, brewpubs, distilleries, wineries, and restaurants.     (14)   Iowa small business relief grant program administered by the economic development authority. Grant recipients include Iowa small businesses.    (15)   Iowa small business utility disruption prevention program administered by the economic development authority. Grant recipients include Iowa small businesses and small nonprofit organizations.    (16)   Local produce and protein program administered by the department of agriculture and land stewardship. Grant recipients include Iowa schools, early childcare centers, specialty crop producers, and food hubs.     (17)   Meat processing expansion and development program administered by the department of agriculture and land stewardship. Grant recipients include Iowa meat and poultry processing businesses and employees and Iowa livestock producers.     (18)   Pack the pantry program administered by the department of agriculture and land stewardship. Grant recipients include Iowa food pantries.    (19)   Pass the pork program administered by the department of agriculture and land stewardship. Grant recipients include Iowa food banks.     (20)   Turkey to table program administered by the department of agriculture and land stewardship. Grant recipients include Iowa food banks.     53.30(3) Excluding qualifying COVID-19 grants from Iowa net income.      a.    Generally.A grant recipient may subtract a qualifying COVID-19 grant when calculating Iowa net income if all of the following apply:     (1)   The grant was issued as part of a qualifying COVID-19 grant program identified in paragraph 53.30(2)“c.”    (2)   The grant was issued on or after March 17, 2020, and on or before December 31, 2021.     (3)   The grant funds were included in the grant recipient’s net income for a tax year ending on or after March 17, 2020, but beginning before January 1, 2024. The grant may only be subtracted to the extent it is included in the grant recipient’s net income for that qualifying tax year. A qualifying COVID-19 grant that is exempt from federal income tax, and thus not included in the grant recipient’s Iowa net income, does not qualify for an additional subtraction on the grant recipient’s Iowa return.    b.    Third-party payee of grant funds.A third-party payee of qualifying COVID-19 grant funds is not eligible for this exemption from Iowa income. If the proceeds of a qualifying COVID-19 grant are paid to someone other than the grant recipient, only the grant recipient on whose behalf the grant proceeds were paid may qualify for this exemption from Iowa income.     c.    Repayment.Grant funds that were repaid to the administering agency for any reason are not eligible for this exemption from Iowa income.     d.    Reporting requirements.A grant recipient who received qualifying COVID-19 grant funds and who excludes those funds when calculating Iowa net income should retain documentation to support the claimed exclusion. A grant recipient must provide such documentation to the department if requested. The required documentation may include, but is not limited to, documentation to support that the grant recipient was issued and received the grant within the qualifying periods.       This rule is intended to implement Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5.

        ITEM 3.    Adopt the following new rule 701—59.32(422):

    701—59.32(422) COVID-19 grant exclusion.      59.32(1) Definitions.  For purposes of this rule:        "Administering agency" means the economic development authority, the Iowa finance authority, or the department of agriculture and land stewardship.        "Grant recipient" means a person who applies for and is issued a qualifying COVID-19 grant by an administering agency.        "Issued" means the approval of the grant recipient’s application and amount for a qualifying COVID-19 grant by an administering agency, regardless of when the grant funds were paid by the administering agency.    59.32(2) Qualifying COVID-19 grant programs.      a.    The department is responsible for determining whether a grant program provides “qualifying COVID-19 grants” as defined in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5. In making this determination, and for purposes of the definition of “qualifying COVID-19 grant,” a grant program is “created to primarily provide COVID-19 related financial assistance to economically impacted individuals and businesses located in this state” if that grant program, at the time of its inception, was intended by the administering agency to provide a majority (more than 50 percent) of its financial assistance to or for the benefit of businesses that are doing business in Iowa or are deriving income from sources within Iowa, and that are economically affected by the COVID-19 pandemic.     b.    The administering agency shall notify the director of the existence of any grant program it believes may be a qualifying COVID-19 grant program. Upon such notification, the department will request from the administering agency the information necessary to determine whether that program is a qualifying COVID-19 grant as defined in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5, and this rule. The administering agency shall provide the department with the requested information within the time frame prescribed by the department in its request. Failure to provide the requested information to the department shall prevent the department from determining that the grant program is a qualifying COVID-19 grant. Grant programs not specifically listed below in paragraph 59.32(2)“c” are not qualifying COVID-19 grants and are not eligible for the exclusion provided in this rule, even if that program may otherwise meet the definition of “qualifying COVID-19 grant” in Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5.     c.    For an exhaustive list of programs that have been identified by the department as qualifying COVID-19 grants, including a general description of each program’s grant recipients, that may qualify for the exclusion from Iowa net income under subrule 59.32(3), see 701—paragraph 53.30(2)“c.”     59.32(3) Excluding qualifying COVID-19 grants from Iowa net income.      a.    Generally.A grant recipient may subtract a qualifying COVID-19 grant when calculating Iowa net income if all of the following apply:     (1)   The grant was issued as part of a qualifying COVID-19 grant program identified in 701—paragraph 53.30(2)“c.”    (2)   The grant was issued on or after March 17, 2020, and on or before December 31, 2021.     (3)   The grant funds were included in the grant recipient’s net income for a tax year ending on or after March 17, 2020, but beginning before January 1, 2024. The grant may only be subtracted to the extent it is included in the grant recipient’s net income for that qualifying tax year. A qualifying COVID-19 grant that is exempt from federal income tax, and thus not included in the grant recipient’s Iowa net income, does not qualify for an additional subtraction on the grant recipient’s Iowa return.    b.    Third-party payee of grant funds.A third-party payee of qualifying COVID-19 grant funds is not eligible for this exemption from Iowa income. If the proceeds of a qualifying COVID-19 grant are paid to someone other than the grant recipient, only the grant recipient on whose behalf the grant proceeds were paid may qualify for this exemption from Iowa income.     c.    Repayment.Grant funds that were repaid to the administering agency for any reason are not eligible for this exemption from Iowa income.     d.    Reporting requirements.A grant recipient who received qualifying COVID-19 grant funds and who excludes those funds when calculating Iowa net income should retain documentation to support the claimed exclusion. A grant recipient must provide such documentation to the department if requested. The required documentation may include, but is not limited to, documentation to support that the grant recipient was issued and received the grant within the qualifying periods.       This rule is intended to implement Iowa Code section 422.7(62) as amended by 2021 Iowa Acts, Senate File 619, section 5.
        [Filed Emergency 7/13/21, effective 7/13/21][Published 8/11/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/11/21.
    ARC 5830CAgriculture and Land Stewardship Department[21]Adopted and Filed

    Rule making related to removal of the pseudorabies advisory committee

        The Agriculture and Land Stewardship Department hereby amends Chapter 64, “Infectious and Contagious Diseases,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 159.5.State or Federal Law Implemented    This rule making implements, in whole or in part, 2020 Iowa Acts, Senate File 2413, section 13.Purpose and Summary    This rule making removes references to the Pseudorabies Advisory Committee, which was repealed in 2020 Iowa Acts, Senate File 2413, section 13.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on April 21, 2021, as ARC 5588C. 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 July 20, 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 21—Chapter 8.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 September 15, 2021.    The following rule-making action is adopted:

        ITEM 1.    Amend subrules 64.162(1) and 64.162(4) as follows:    64 64.162 162(1) Requirements for certification.  To be certified, the veterinarian shall meet both of the following requirements:    a.    Be an accredited veterinarian.    b.    Attend and complete continuing education sessions as determined by the Iowa pseudorabies advisory committee and the department.    64 64.162 162(4) Remuneration.  Compensation will be made to the veterinarian or veterinarians certified to initiate herd plans and herd agreements. Payment will be made from pseudorabies program funds, if available and authorized for these purposes. Fees for payment shall be approved by the advisory committee and established by the department by order. Payment will be made for the following:    a.    Initial herd cleanup plan with or without an accompanying feeder pig cooperator agreement. Payment will be made upon submission of the completed form and department approval of the plan.    b.    Review of herd cleanup plan. Payment will be made upon submission of the completed form and department approval of the plan review.    c.    Upon completion of the herd cleanup plan and release of the infected status, the veterinarian will receive a payment.    d.    All other herd consultation or time devoted to herd plan implementation shall be at owner’s expense.    [Filed 7/20/21, effective 9/15/21][Published 8/11/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/11/21.
    ARC 5839CAgriculture and Land Stewardship Department[21]Adopted and Filed

    Rule making related to food safety and inspection services standards

        The Agriculture and Land Stewardship Department hereby amends Chapter 76, “Meat and Poultry Inspection,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 189A.7.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 189A.Purpose and Summary    This rule making adopts by reference the most up-to-date federal standards from the Food Safety and Inspection Service (FSIS). In order for Iowa’s Meat and Poultry Bureau to remain compliant, state regulations must be equal to or greater than federal standards. Specifically, these updates address the following:

  • Modernization of swine slaughter inspection.
  • Preparation of uninspected products outside of the hours of inspectional supervision.
  • Eliminating unnecessary requirements for hog carcass cleaning.
  • Continuing to implement a requirement that was removed by FSIS to prevent confusion and noncompliance.
  • Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 2, 2021, as ARC 5652C. A public hearing was held on June 23, 2021, at 10 a.m., both virtually and in the Second Floor Conference Room, Wallace State Office Building, Des Moines, Iowa. No one attended the public hearing. No public comments were received. Two changes from the Notice have been made. Item 2 was revised to strike redundant language, and subrule 76.7(3) in Item 4 was revised for clarity.Adoption of Rule Making    This rule making was adopted by the Department on July 20, 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 21—Chapter 8.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 September 15, 2021.    The following rule-making actions are adopted:

        ITEM 1.    Amend rules 21—76.1(189A) to 21—76.3(189A) as follows:

    21—76.1(189A) Federal Wholesome Meat Act regulations adopted.  Part 301 of Title 9, Chapter III, of the Code of Federal Regulations, revised as of July 30, 2018December 31, 2020, is hereby adopted in its entirety by reference; and in addition thereto, the following subsections shall be expanded to include:
    1. Sec. 301.2(a) therein defining the term “Act” shall include the Iowa meat and poultry inspection Act, Iowa Code chapter 189A.
    2. Sec. 301.2(b) therein defining the term “department” shall include the Iowa department of agriculture and land stewardship.
    3. Sec. 301.2(c) therein defining the term “secretary” shall include the secretary of agriculture of the state of Iowa.
    4. Sec. 301.2(e) therein defining the term “administrator” shall include the supervisor of the Iowa meat and poultry inspection service or any officer or employee of the Iowa department of agriculture and land stewardship.
    5. Sec. 301.2(t) therein defining the term “commerce” shall include intrastate commerce in the state of Iowa.
    6. Sec. 301.2(u) therein defining the term “United States” shall include the state of Iowa.

    21—76.2(189A) Federal Wholesome Meat Act regulations adopted.  Part 303, Part 304, Part 305, Part 306, Parts 308 through315, Parts 317 through 320, Part 329, Part 332, Part 412, Part 416, Part 417, Part 418, Part 424, Part 430, Part 431, Part 441 and Part 442 of Title 9, Chapter III, of the Code of Federal Regulations, revised as of July 30, 2018December 31, 2020, are hereby adopted in their entirety by reference. Part 307 except Sections 307.5 and 307.6 and Part 325 except Sections 325.3 and 325.12 of Title 9, Chapter III, of the Code of Federal Regulations, revised as of July 30, 2018, are hereby adopted in their entirety by reference. Part 500 of Title 9, Chapter III, of the Code of Federal Regulations, revised as of January 1, 2016, is adopted by reference, except that references in Sections 500.5, 500.6, 500.7, and 500.8 to the federal Uniform Rules of Practice are not adopted.       This rule is intended to implement Iowa Code sections 189A.3 and 189A.7(8).

    21—76.3(189A) Federal Poultry Products Inspection Act regulations adopted.  Part 381, Title 9, Chapter III, of the Code of Federal Regulations, revised as of July 30, 2018December 31, 2020, is hereby adopted in its entirety with the following exceptions: Sections 381.96, 381.97, 381.99, 381.101, 381.102, 381.104, 381.105, 381.106, 381.107, and 381.128, Subpart R, Subpart T, Subpart V, and Subpart W; and in addition thereto, the following subsections shall be expanded to include:
    1. Sec. 381.1(b)(2) therein defining the term “Act” shall include the Iowa meat and poultry inspection Act, Iowa Code chapter 189A.
    2. Sec. 381.1(b)(3) therein defining the term “administrator” shall include the supervisor of the Iowa meat and poultry inspection service, or any officer or employee of the Iowa department of agriculture and land stewardship.
    3. Sec. 381.1(b)(10) therein defining the term “commerce” shall include intrastate commerce in the state of Iowa.
    4. Sec. 381.1(b) therein defining the term “department” shall include the Iowa department of agriculture and land stewardship.
    5. Sec. 381.1(b)(47) therein defining the term “secretary” shall include the secretary of agriculture of the state of Iowa.
    6. Sec. 381.1(b)(53) therein defining the term “United States” shall include the state of Iowa.

        ITEM 2.    Amend rule 21—76.6(189A) as follows:

    21—76.6(189A) Forms and marks.  Whenever an official form is designated by federal regulation, the appropriate Iowa form will be substituted, and whenever an official mark is designated, the following official Iowa marks will be substituted:
    1. Iowa inspected and condemned brand:
    2. Iowa product label mark of inspection and carcass brand for amenable species:
    3. Iowa inspected carcass brand for amenable species (excluding poultry): Stamp (brand) must be 1¾ inch tall. The wording shall be all the same height and fill the space inside and centered within the outline of the state of Iowa.
    4. Exotic carcass brand:
    5. Exotic product label mark of inspection:
    6. Notwithstanding any other provision of this rule, a red meat establishment that is a selected establishment under 9 CFR Part 332 shall use the official marks, devices, and certificates in 9 CFR Part 312 for products that are intended for interstate commerce with the modifications described in 9 CFR Sec. 332.5(c).  a. Cooperative Interstate Shipment program product label mark of inspection: b. Cooperative Interstate Shipment program carcass brand. Sizing of brands shall be as described in 9 CFR Sec. 312.2(a), except that the 1¼ʺ brand shall be utilized in lieu of the ¾ʺ brand:
    7. Notwithstanding any other provision of this rule, a poultry establishment that is a selected establishment under 9 CFR Part 381, Subpart Z, shall use the official marks, devices, and certificates in 9 CFR Part 381, Subpart M, for products that are intended for interstate commerce with the modifications described in 9 CFR Sec. 381.515(c). Cooperative Interstate Shipment program poultry product label mark of inspection:
           This rule is intended to implement Iowa Code section 189A.5(2).

        ITEM 3.    Renumber rules 21—76.7(189A,167) to 21—76.11(189A) as 21—76.8(189A,167) to 21—76.12(189A).

        ITEM 4.    Adopt the following new rule 21—76.7(189A):

    21—76.7(189A) Products to be marked with official marks.      76.7(1)   Each carcass which has been inspected and passed in an official establishment shall be marked at the time of inspection with the official inspection legend containing the number of the official establishment.     76.7(2)   Except as provided otherwise in 9 CFR Part 316.8, each primal part of a carcass and each liver, beef tongue, and beef heart which has been inspected and passed shall be marked with the official inspection legend containing the number of the official establishment before it leaves the establishment in which it is first inspected and passed, and each such inspected and passed product shall be marked with the official inspection legend containing the number of the official establishment where it was last prepared. Additional official marks of inspection may be applied to products as desired to meet local conditions. Primal parts are the wholesale cuts of carcasses as customarily distributed to retailers. The round, flank, loin, rib, plate, brisket, chuck, and shank are primal parts of beef carcasses. Veal, mutton, and goat primal parts are the leg, flank, loin, rack, breast, and shoulder. The ham, belly, loin, shoulder, and jowl are pork primal parts. Equine primal parts are the round, flank, loin, rib, plate, brisket, chuck, and shank.     76.7(3)   Beef livers shall be marked with the official inspection legend containing the number of the official establishment at which the cattle involved were slaughtered. Beef livers shall be marked on the convex surface of the thickest portion of the organ.    76.7(4)   Inspected and passed parts of carcasses which are not marked with the official inspection legend under this rule shall not enter any official establishment or be sold, transported, or offered for sale or transportation in commerce except as provided in 9 CFR Part 316.8.       This rule is intended to implement Iowa Code section 189A.5(2).

        ITEM 5.    Amend renumbered rule 21—76.12(189A), implementation sentence, as follows:       This rule is intended to implement Iowa Code section 189A.4(7).189A.5(2)“g.”    [Filed 7/20/21, effective 9/15/21][Published 8/11/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/11/21.
    ARC 5823CCity Development Board[263]Adopted and Filed

    Rule making related to waivers

        The City Development Board hereby amends Chapter 6, “Waiver and Variance Rules,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 368.10.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 17A.9A.Purpose and Summary    2020 Iowa Acts, House File 2389, amended Iowa Code section 17A.9A to remove references to “variances” and change how agencies report on rule waivers that are granted or denied. The amendments to Chapter 6 update the rules to conform to the changes implemented by House File 2389.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on May 19, 2021, as ARC 5620C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Board on July 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 Board for a waiver of the discretionary provisions, if any, pursuant to 263—Chapter 6.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on September 15, 2021.    The following rule-making actions are adopted:

        ITEM 1.    Amend 263—Chapter 6, title, as follows:WAIVER AND VARIANCE RULES

        ITEM 2.    Amend rule 263—6.1(17A) as follows:

    263—6.1(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 or entity on the basis of the particular circumstances of that person or entity. For simplicity, the term “waiver” shall include both a “waiver” and a “variance.”

        ITEM 3.    Amend rule 263—6.4(17A), catchwords, as follows:

    263—6.4(17A) Criteria for waiver or variance.  

        ITEM 4.    Amend rule 263—6.8(17A) as follows:

    263—6.8(17A) Notice.  The board shall acknowledge a petition upon receipt. The board shall ensure that, within 30 days of the receipt of the petition, notice of the pendency of the petition and a concise summary of its contents have been provided to all persons to whom notice is required by any provision of law. In addition, the board may give notice to other persons. To accomplish this notice provision, the board may require the petitioner to serve the notice on all persons to whom notice is required by any provision of lawor who may be impacted by the requested waiver and provide a written statement to the board attesting that notice has been provided.

        ITEM 5.    Rescind rule 263—6.11(17A) and adopt the following new rule in lieu thereof:

    263—6.11(17A) Submission of waiver information.  Within 60 days of granting or denying a waiver, the board shall make a submission on the Internet site established pursuant to Iowa Code section 17A.9A for the submission of waiver information. The submission shall identify the rule(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 rules, and a general summary of the reasons justifying the board’s actions on waiver requests. If practicable, the report shall detail the extent to which granting 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.

        ITEM 6.    Rescind rule 263—6.12(17A).

        ITEM 7.    Renumber rules 263—6.13(17A) to 263—6.16(17A) as 263—6.12(17A) to 263—6.15(17A).    [Filed 7/19/21, effective 9/15/21][Published 8/11/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/11/21.
    ARC 5824CCivil Rights Commission[161]Adopted and Filed

    Rule making related to waivers

        The Civil Rights Commission hereby amends Chapter 15, “Miscellaneous Provisions,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 17A.3.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 216.5.Purpose and Summary    These amendments update the rule on requesting a waiver of the Commission’s rules in order to remove language on variances in compliance with 2020 Iowa Acts, House File 2389. Also, a new implementation sentence is adopted for Chapter 15, because the chapter did not previously have one.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on April 21, 2021, as ARC 5565C. A public hearing was held on May 14, 2021, at 1:15 p.m. in the Grimes State Office Building, Room B100, 400 East 14th Street, Des Moines, Iowa. No one attended the public hearing. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Commission on July 9, 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    This rule does not provide for a waiver of its terms.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 September 15, 2021.    The following rule-making actions are adopted:

        ITEM 1.    Amend rule 161—15.3(17A,ExecOrd11) as follows:

    161—15.3(17A,ExecOrd11) Waiver of requirements imposed by commission rule.      15.3(1) Filing of a request for waiver or variance.  Any person may file a request for waiver or variance of an administrative rule of the civil rights commission by writing a proper request which is received by Executive Director, Iowa Civil Rights Commission, Grimes State Office Building, 400 E. 14th Street, Des Moines, Iowa 50319-1004. All requests for waiver or variance of an administrative rule must be in writing and meet all requirements set out in paragraph 15.3(2)“a.” A request for a waiver is filed by any of the methods listed in rule 161—3.5(216). The date a request for waiver is filed is governed by 161—subrule 3.5(4). The commission shall provide the requester with a file-stamped copy of the request if the requester provides an extra copy for this purpose.    15.3(2) Form of request.      a.    Required contents.A request for waiver or variance of a rule must:    (1)   Prominently state on its face that it is a request for a waiver or variance of an administrative rule; and    (2)   State the name and address of the entity or person for whom a waiver or variance is requested; and    (3)   Describe or give the citation of the specific rule for which a waiver or variance is requested; and    (4)   State the specific waiver or variance requested.The commission shall not process a filing as a request for a waiver or variance if that filing does not conform to the requirements of this paragraph.    b.    Suggested contents.In addition, a request for waiver or variance of a rule should also:    (1)   State all relevant facts that the requester believes would justify a waiver or variance.    (2)   State the reasons the requester believes will justify a waiver or variance.    (3)   State the history of the commission’s action relative to the requester. If the request is in connection with a complaint of discrimination on file with the commission, the requester should identify the complaint at issue including, if possible, the complaint number.    (4)   State any information regarding the commission’s treatment of similar cases, if known.    (5)   State the name, address and telephone number of any person inside or outside state government who would be adversely affected by the grant of the request or who otherwise possesses knowledge of the matter with respect to the waiver or variance request.    15.3(3) Procedure for evaluating requests for waiver.      a.    Service of request.Within 30 days after the receipt of a request for waiver or variance of an administrative rule, the commission shall provide a copy to all persons who are required to receive one by a provision of law. The commission may also provide a copy of the request to those individuals whom the requester has identified as being adversely affected by a grant of the request. In the case of a request made in connection with a complaint of discrimination on file with the commission, the commission shall provide a copy of the request to all other parties in the case. Service may occur by regular mail. If necessary for maintenance of the confidentiality of a commission investigation, information may be redacted from a request for variancewaiver before the request is provided to persons other than the requester.    b.    Decision maker for request.The decision whether to grant a request for waiver or variance shall be made either by the executive director or upon a vote of the commissioners. If the request is made in connection with a complaint of discrimination on file with the commission, any discussion by the commissioners of the request for waiver may be in closed session.    c.    Investigation of allegations.The decision maker or a designated member of the commission staff may conduct an investigation into any factual issue which is relevant to the request for a waiver or variance. A refusal by the requester to cooperate in this investigation may be grounds to deny the request for waiver or variance. In the case of a request made in connection with a complaint of discrimination, if any party to the complaint refuses to cooperate in the investigation, the decision maker may infer that the requested information would be adverse to the uncooperative party.    d.    Time frame for decision on request.The commission shall render a decision on a request for waiver or variance of a rule within 120 days of receipt of the request. During this period the commission may extend the time for rendering a decision by notifying all persons who were notified of the request pursuant to paragraph 15.3(3)“a” that the time for rendering a decision has been extended. This notice shall include a new time frame for rendering the decision. Failure to render a decision or extend the time for rendering a decision within the required period shall be deemed a denial of the request.    e.    Notification of decision.The commission shall send any decision rendered concerning the request for waiver or variance to all persons who were notified of the request pursuant to paragraph 15.3(3)“a.”    f.    Form of grant of request.Any waiver or variance shall be the narrowest exception possible to the provisions of the rule. A waiver or variance shall not be permanent unless the requester has shown that a temporary waiver or variance is impracticable. The commission may renew a temporary waiver or variance without a request if the commission finds that the factors of paragraph 15.3(4)“b” remain valid.    15.3(4) Standard for evaluating request for waiver.      a.    Burden of persuasion.The burden of persuasion rests with the person who requests from the commission a waiver or variance of a rule.    b.    Standard.A request for a waiver or variance shall be evaluated based on the unique, individual circumstances set out in the request. A waiver or variance may be granted only if the decision maker finds clear and convincing evidence that:    (1)   The application of the rule would pose an undue hardship on the person for whom the waiver or variance is requested; and    (2)   The waiver or variance from the requirements of a rule in the specific case would not prejudice the substantial legal rights of any person; and    (3)   The provisions of a rule subject to a request for a waiver or variance are not specifically mandated by statute or another provision of law; and    (4)   Substantially equal protection of public health, safety, and welfare will be afforded by a means other than that prescribed in the particular rule for which the waiver or variance is requested; and    (5)   Granting the request would not waive or vary any requirement created or duty imposed by statute.    15.3(5) Exceptions to waiver.      a.    Waiver in contested cases.This rule does not apply to any request for a waiver or variance of a rule which is made in connection with a contested case before the commission. Waiver or variance requests made in connection with a contested case are governed by rule 161—4.29(17A).    b.    Not applicable to this rule.No person may request a waiver or variance from the requirements of this rule.    c.    Requests by commission officials.No commissioner, commission staff member or other commission official may file a request for a waiver of a requirement placed upon that individual as part of that individual’s official duties.    d.    Time requirements.This rule does not authorize the commission to waive or vary any time requirement of an administrative rule.    e.    No effect on case status.In the case of a request made in connection with a complaint of discrimination on file with the commission, the commission may not grant a request for waiver or variance if this would either close a case which was open at the time of the request or reopen a case which was closed at the time of the request. The reopening provisions of rule 161—3.16(216), however, shall apply.    15.3(6) Public inspection of waiver requests.  All waiver or variance requests and responses shall be indexed by administrative rule number and available to members of the public for inspection at the offices of the Civil Rights Commission, Grimes State Office Building, 400 E. 14th Street, Des Moines, Iowa 50319. Identifying information concerning any person, including parties to complaints on file, may be withheld by the commission in order to protect the confidentiality of case-related information as required by 2009 Iowa Code Supplement section 216.15(5).

        ITEM 2.    Adopt the following new implementation sentence in 161—Chapter 15:       These rules are intended to implement Iowa Code chapter 216.    [Filed 7/12/21, effective 9/15/21][Published 8/11/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/11/21.
    ARC 5845CInspections and Appeals Department[481]Adopted and Filed

    Rule making related to food processing plant inspections

        The Inspections and Appeals Department hereby amends Chapter 30, “Food and Consumer Safety,” and Chapter 31, “Food Establishment and Food Processing Plant Inspections,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 10A.104 and 137F.2(1).State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 10A.104 and 137F.2(1).Purpose and Summary    These amendments revise the definition of “food processing plant” to exclude premises or operations that are exclusively engaged in the production of Siluriformes, including catfish, and are inspected by the United States Department of Agriculture under a Federal Grant of Inspection from the list of premises that are not considered to be a food processing plant under the definition. These amendments also update the reference to the adopted parts of the Code of Federal Regulations. Subrule 31.2(9) currently adopts the 2019 Code of Federal Regulations, and this rule making adopts the same sections of the 2021 Code of Federal Regulations. No substantive changes were made to the pertinent parts of the 2021 Code of Federal Regulations.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 16, 2021, as ARC 5703C. 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 July 21, 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 481—Chapter 6.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on September 15, 2021.    The following rule-making actions are adopted:

        ITEM 1.    Amend rule 481—30.2(10A,137C,137D,137F), definition of “Food processing plant,” as follows:        "Food processing plant" means a commercial operation that manufactures, packages, labels or stores food for human consumption and does not provide food directly to a consumer. “Food processing plant” does not include any of the following:
    1. The following premises, provided they are exclusively engaged in the sale of alcoholic beverages in a prepackaged form:
    2. Premises covered by a current Class “A” beer permit, including a Class “A” native beer permit as provided in Iowa Code chapter 123;
    3. Premises covered by a current Class “A” wine permit, including a Class “A” native wine permit as provided in Iowa Code chapter 123; and
    4. Premises of a manufacturer of distilled spirits under Iowa Code chapter 123.
    5. The premises of a residence in which honey is stored; prepared; packaged, including by placement in a container; or labeled or from which honey is distributed.
    6. Premises or operations that are exclusively engaged in the processing of meat and poultry and are licensed pursuant to Iowa Code section 189A.3.
    7. Premises or operations that are exclusively engaged in the processing of milk or milk products, are regulated by Iowa Code section 192.107, and have a milk or milk products permit issued by the department of agriculture and land stewardship.
    8. Premises or operations that are exclusively engaged in the production of shell eggs, are regulated by Iowa Code section 196.3, and have an egg handler’s license.
    9. Premises or operations that are exclusively engaged in the preparation or processing of Siluriformes, including catfish, and are regulated and inspected by the United States Department of Agriculture under a federal grant of inspection.

        ITEM 2.    Amend subrule 31.2(9), introductory paragraph, as follows:    31.2(9) Adoption of Code of Federal Regulations.  The following parts of the Code of Federal Regulations (April 1, 20192021) are adopted:    [Filed 7/21/21, effective 9/15/21][Published 8/11/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/11/21.
    ARC 5843CInspections and Appeals Department[481]Adopted and Filed

    Rule making related to wild-harvested mushrooms

        The Inspections and Appeals Department hereby amends Chapter 30, “Food and Consumer Safety,” and Chapter 31, “Food Establishment and Food Processing Plant Inspections,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 10A.104 and 137F.2(1).State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 10A.104 and 137F.2(1).Purpose and Summary    These amendments modify exceptions to the Food Code issued by the U.S. Food and Drug Administration (FDA) that relate to wild-harvested mushrooms. These amendments add definitions for “certified wild-harvested mushroom identification expert” and “cultivated mushroom” and revise the definition of “wild-harvested mushroom.” These amendments also revise exceptions to the Food Code that relate to wild-harvested mushrooms to provide greater diversity of the wild-harvested mushroom species permitted to be sold and to update the certification course requirements to provide reciprocity to certifications obtained in other states.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 16, 2021, as ARC 5701C. No public comments were received. A change from the Notice has been made to correct the spelling of mushroom names in the table in Item 3. Adoption of Rule Making    This rule making was adopted by the Department on July 21, 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 481—Chapter 6.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on September 15, 2021.    The following rule-making actions are adopted:

        ITEM 1.    Amend rule 481—30.2(10A,137C,137D,137F), definition of “Wild-harvested mushroom,” as follows:        "Wild-harvested mushroom" means a fresh mushroom that has been picked in the wildfound or foraged in the natural environment and has not been processed (e.g., dried or frozen). “Wild-harvested mushroom” does not include cultivated mushrooms or mushrooms that have been packaged in an approved food processing plant.

        ITEM 2.    Adopt the following new definitions of “Certified wild-harvested mushroom identification expert” and “Cultivated mushroom” in rule 481—30.2(10A,137C,137D,137F):        "Certified wild-harvested mushroom identification expert" means an individual who has within the last three years successfully completed a wild-harvested mushroom identification training program provided by an accredited college, university, or state mycological society. The training program must include a component of actual identification of physical specimens or simulations of mushroom species. A document must be issued by an accredited college, accredited university, or state mycological society certifying the individual’s successful completion of the wild-harvested mushroom identification training program and specifying the species of wild mushrooms the individual is qualified to identify.        "Cultivated mushroom" means a mushroom grown through a process in which the grower inoculates a substrate (logs, beds, straw, etc.) with a known strain or species of mushroom spawn in a dedicated space, whether outdoors or indoors, that is under the control of the grower, for the purpose of fruiting mushrooms.

        ITEM 3.    Rescind subrule 31.1(4) and adopt the following new subrule in lieu thereof:    31.1(4) Wild-harvested mushrooms.  Section 3-201.16, paragraph (A), is amended by adding the following:“A food establishment or farmers market time/temperature control for safety food licensee may sell or serve wild-harvested mushrooms provided:“a. All wild-harvested mushrooms sold or served are varieties classified as one of the following:Common nameScientific nameMorelMorchella spp. (M. americana, M. angusticeps, M. punctipes)OysterPleurotus citrinopileatus, Pleurotus ostreatus, Pleurotus populinus, or Pleurotus pulmonariousChicken of the woodsLaetiporus (L. cincinnatus, L. sulphureus)Hen of the woodsGrifola frondosaChanterelleCantharellus cibarius groupBear’s head tooth, Lion’s mane Hericium spp. (H. erinaceus, H. americanum)Pheasant backPolyporus squamosusBlack trumpetCraterellus cornucopoides“b. All wild-harvested mushrooms sold or served in a food establishment must be obtained from sources where each mushroom is individually inspected and found to be safe by a certified wild-harvested mushroom identification expert.“c. All wild-harvested mushroom species sold or served in a food establishment must have a written buyer specification. The buyer shall retain the written buyer specification for 90 days from the date of sale or service. The written buyer specification must include all of the following information:“1. Identification of each mushroom species by the scientific and common name;“2. Date of purchase;“3. Quantity by weight of each species received;“4. A statement indicating that each mushroom was identified in its fresh state and was not mixed or in contact with other mushroom species; “5. The name, address, and telephone number of the certified wild-harvested mushroom identification expert; and“6. A copy of the certified wild-harvested mushroom identification expert’s certificate of successful completion of the program, including the date of completion.“d. A consumer advisory shall inform consumers by brochures, deli case, menu advisories, label statements, table tents, placards, or other effective written means that ‘wild-harvested mushrooms should be thoroughly cooked and may cause allergic reactions or other effects.’“e. This section does not apply to cultivated mushrooms or mushrooms that have been packaged in an approved food processing plant.”     [Filed 7/21/21, effective 9/15/21][Published 8/11/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/11/21.
    ARC 5844CInspections and Appeals Department[481]Adopted and Filed

    Rule making related to lavatories at food establishments

        The Inspections and Appeals Department hereby amends Chapter 31, “Food Establishment and Food Processing Plant Inspections,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 10A.104 and 137F.2(1).State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 10A.104 and 137F.2(1).Purpose and Summary    These amendments revise the exceptions to the Food Code by rescinding the requirement that separate toilet facilities for men and women be provided in establishments which seat 50 or more people or in establishments which serve beer or alcoholic beverages.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 16, 2021, as ARC 5702C. 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 July 21, 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 481—Chapter 6.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on September 15, 2021.    The following rule-making actions are adopted:

        ITEM 1.    Rescind subrule 31.1(11).

        ITEM 2.    Renumber subrules 31.1(12) to 31.1(18) as 31.1(11) to 31.1(17).    [Filed 7/21/21, effective 9/15/21][Published 8/11/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/11/21.
    ARC 5825CNursing Board[655]Adopted and Filed

    Rule making related to background checks for nursing students

        The Board of Nursing hereby amends Chapter 2, “Nursing Education Programs,” 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 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 rule making updates the Board’s rules regarding background checks for nursing students to incorporate the amended Iowa Code language.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on May 5, 2021, as ARC 5615C. A public hearing was held on May 25, 2021, at 9 a.m. at the Board’s Office, Suite B, 400 S.W. Eighth Street, Des Moines, Iowa. No one attended the public hearing. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Board on July 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 Board for a waiver of the discretionary provisions, if any, pursuant to 655—Chapter 15.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on September 15, 2021.    The following rule-making action is adopted:

        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.
        [Filed 7/19/21, effective 9/15/21][Published 8/11/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/11/21.
    ARC 5826CNursing Board[655]Adopted and Filed

    Rule making related to submission of waiver information

        The Board of Nursing hereby amends Chapter 15, “Waiver Rules,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted 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 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.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on May 5, 2021, as ARC 5616C. A public hearing was held on May 25, 2021, at 10 a.m. at the Board’s Office, Suite B, 400 S.W. Eighth Street, Des Moines, Iowa. No one attended the public hearing. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Board on July 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 Board for a waiver of the discretionary provisions, if any, pursuant to 655—Chapter 15.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on September 15, 2021.    The following rule-making actions are adopted:

        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.    [Filed 7/19/21, effective 9/15/21][Published 8/11/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/11/21.
    ARC 5827CPetroleum Underground Storage Tank Fund Board, Iowa Comprehensive[591]Adopted and Filed

    Rule making related to waivers

        The Iowa Comprehensive Petroleum Underground Storage Tank Fund Board hereby amends Chapter 16, “Waivers and Variances,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 455G.4.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 17A.9A.Purpose and Summary    The purpose of this rule making is to update the Board’s administrative rules in accordance with changes included in 2020 Iowa Acts, House File 2389, section 10. The changes call for removal of the word “variance” when the word is used in relation to “waiver.”Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on May 19, 2021, as ARC 5637C. No comments from the public were received; however, a comment was received from the Administrative Code Editor regarding language in rule 591—16.5(17A). The recommended change was to remove the reference “or on its own motion” from the rule. That change has been made in Item 3 of this adopted rule making, and Item 3 of the Notice has been renumbered as Item 4. In addition to the change recommended by the Administrative Code Editor, one additional change has been made to add a new Item 5 to make the language in rule 591—16.17(17A) consistent with the requirements in Iowa Code section 17A.9A for agency reporting of waiver information.Adoption of Rule Making    This rule making was adopted by the Board on July 5, 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 591—Chapter 16.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 September 15, 2021.    The following rule-making actions are adopted:

        ITEM 1.    Amend 591—Chapter 16, title, as follows:WAIVERS AND VARIANCES

        ITEM 2.    Amend rule 591—16.1(17A) as follows:

    591—16.1(17A) Definition.  The term “waiver” as used in this chapter means a described waiver or variance from a specific rule or set of rules of this board applicable only to an identified person on the basis of the particular circumstances of that person.

        ITEM 3.    Amend rule 591—16.5(17A) as follows:

    591—16.5(17A) Criteria for a waiver.  The board may issue an order, in response to a completed petition, or on its own motion, granting a waiver from a rule adopted by the board, in whole or in part, as applied to the circumstances of a specified person, if the board finds that the granting of such a waiver would not exceed the authority for granting waivers contained in Iowa Code section 17A.9A, that the waiver would not prejudice the substantial legal rights of any person, and either that:
    1. The application of the rule to the person at issue does not advance, to any extent, any of the purposes for the rule or set of rules; or
    2. All of the following criteria have been met:
  • The application of the rule or set of rules to the person at issue would result in an undue hardship or injustice to that person; and
  • The waiver on the basis of the particular circumstances relative to the specified person would be consistent with the overall public interest; and
  • The waiver, if related to administrative deadlines, would not jeopardize the overall goals of the deadline as established.
  • In determining whether a waiver would be consistent with the public interest, the board shall consider whether, if a waiver is granted, the public health, safety, and welfare will be adequately protected by other means that will ensure a result that is substantially equivalent to full compliance with the rule.

        ITEM 4.    Amend rule 591—16.8(17A) as follows:

    591—16.8(17A) Contents of petition.  A petition for a waiver shall include the following information where applicable and known to the requester:
    1. The name, address, and telephone number of the entity or person for whom a waiver is being requested. To the extent applicable, the petition should also include the site registration number(s) and LUST number(s) and the case number of any related contested case.
    2. A description and citation of the specific rule or set of rules from which a waiver is being requested.
    3. The specific waiver requested, including a description of the precise scope and operative period for which the petitioner wants the waiver to extend.
    4. The relevant facts that the petitioner believes would justify a waiver. This statement shall include a signed statement from the petitioner attesting to the accuracy of the facts represented in the petition and a statement of reasons that the petitioner believes will justify a waiver.
    5. A history of any prior contacts between the petitioner and the board relating to the activity affected by the proposed waiver or variance, including any notices of violation, contested case hearings, or investigative reports relating to the activity within the last five years.
    6. Any information known to the requester relating to the board’s treatment of similar cases.
    7. The name, address, and telephone number of any public agency or political subdivision which also regulates the activity in question, or which might be affected by the granting of a waiver or variance.
    8. The name, address, and telephone number of any entity or person who would be adversely affected by the granting of a petition.
    9. The name, address, and telephone number of any person with knowledge of the relevant facts relating to the proposed waiver.
    10. Signed releases of information authorizing persons with knowledge of the waiver request to furnish the board with information relevant to the waiver.
    11. If there is a contested case concerning the person, site or matter for which the petition for waiver is being made, such petition must include a signed statement consenting to ex parte communications between the board and its counsel concerning the facts and issues of the petition. If there is a contested case filed subsequent to this petition for waiver, such a statement must be provided at that time.

        ITEM 5.    Amend rule 591—16.17(17A) as follows:

    591—16.17(17A) Record keepingSubmission of waiver information.  Subject to the provisions of Iowa Code section 17A.3(1)“e,” theThe board shall maintain a record of all orders granting and denying waivers under this chaptersubmit information about granted and denied waivers to the Internet site pursuant to Iowa Code section 17A.9A(4) within 60 days. All final rulings in response to requests for waivers shall be indexed and copies distributed to members of the administrative rules review committee upon request. All final rulings shall also be available for inspection by the public at the address identified in 591—1.4(455G) during regular business hours.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 and a citation to the statutory provisions implemented by the rules. The report submission shall include a general summary of the reasons justifying the board’s actions on waiver requests and, if practicable, shall detail the extent to which the granting of a waiver has affected the general applicability of the rule itself and the extent to which the granting of the waiver has established a precedent for additional waivers.
        [Filed 7/19/21, effective 9/15/21][Published 8/11/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/11/21.
    ARC 5841CRevenue Department[701]Adopted and Filed

    Rule making related to excise taxes and fees

        The Revenue Department hereby amends Chapter 3, “Voluntary Disclosure Program,” 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 section 421.5.Purpose and Summary    The Department is incorporating its voluntary disclosure agreement (VDA) process into the design of its new tax administration system. In reviewing relevant rules for the VDA program, the Department noticed the list of permitted tax types does not include all excise taxes and fees. The Department has added to subrule 3.1(3) excise taxes and fees that were not part of the Iowa Code the last time subrule 3.1(3) was updated: the water service excise tax, equipment excise tax, state and local hotel and motel taxes, automobile rental excise tax, and prepaid wireless 911 surcharge. The amendments to the subrule make clear that all tax types are eligible for a VDA.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 16, 2021, as ARC 5688C. 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 July 21, 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 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 September 15, 2021.    The following rule-making action is adopted:

        ITEM 1.    Amend subrule 3.1(3) as follows:    3.1(3) Type of taxes eligible.  Only taxes, penalties and interest related to Iowa source income are eligible for settlement under the voluntary disclosure program. For purposes of this rule, “Iowa source income” means the tax base and the tax collection responsibility for the following enumerated taxes: corporate income tax, franchise tax, fiduciary income tax, withholding income tax, individual income tax, local option school district income surtax, state sales tax, state use tax, motor fuel taxes, cigarette and tobacco taxes, and local option taxes, state and local hotel and motel taxes, automobile rental excise tax, equipment excise tax, water service excise tax, and the prepaid wireless 911 surcharge.    [Filed 7/21/21, effective 9/15/21][Published 8/11/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/11/21.
    ARC 5842CRevenue Department[701]Adopted and Filed

    Rule making related to motor fuel and undyed special fuel

        The Revenue Department hereby amends Chapter 68, “Motor Fuel and Undyed Special Fuel,” and Chapter 69, “Liquefied Petroleum Gas—Compressed Natural Gas—Liquefied Natural Gas,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 452A.59.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 452A as amended by 2020 Iowa Acts, Senate File 2403.Purpose and Summary    Item 1 of this rule making amends Chapter 68 primarily to reflect the enactment of 2020 Iowa Acts, Senate File 2403. Notably, Senate File 2403 changed tax rates for gasoline and biodiesel-blended fuel rated B-11 or higher and created new classifications of ethanol blended gasolines. Senate File 2403 also modified the report the Department uses to calculate motor fuel distribution percentages used to determine these rates, switching from fuel tax monthly reports to an annual retailers’ report.    Items 2 through 13 reflect cleanup of outdated citations or terms throughout the chapter.    Item 14 strikes language relating to how taxpayers should round for purposes of reporting tax due for liquefied petroleum gas, liquefied natural gas, and compressed natural gas on returns being designed as a part of the Department’s modernization initiative. The prior rule required rounding to the nearest whole dollar. The rule as amended requires taxpayers to enter cents rather than round.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 16, 2021, as ARC 5710C. 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 July 21, 2021.Fiscal Impact    The fuel tax rates modified by 2020 Iowa Acts, Senate File 2403, are estimated by the Department to impact the Road Use Tax Fund positively by $1.18 million in FY 2022. The Department can provide additional detail on this fiscal analysis upon request.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on September 15, 2021.    The following rule-making actions are adopted:

        ITEM 1.    Amend rule 701—68.2(452A) as follows:

    701—68.2(452A) Tax rates—time tax attaches—responsible party.      68.2(1)   The following rates of tax apply to the use of fuel in operating motor vehicles and aircraft:Gasoline20.3¢ per gallon (for July 1, 2003, through June 30, 2004) 20.5¢ per gallon (for July 1, 2004, through June 30, 2005) 20.7¢ per gallon (for July 1, 2005, through June 30, 2006) 21¢ per gallon (for July 1, 2006, through June 30, 2007) 20.7¢ per gallon (for July 1, 2007, through June 30, 2008) 21¢ per gallon (for July 1, 2008, through February 28, 2015) 31¢ per gallon (for March 1, 2015, through June 30, 2015) 30.8¢ per gallon (for July 1, 2015, through June 30, 2016) 30.7¢ per gallon (for July 1, 2016, through June 30, 2017) 30.5¢ per gallon (for July 1, 2017, through June 30, 2018) 30.7¢ per gallon (for July 1, 2018, through June 30, 2019) 30.5¢ per gallon (beginningfor July 1, 2019, through June 30, 2020) 30¢ per gallon (beginning July 1, 2020)Ethanol blended gasoline19¢ per gallon (for July 1, 2003, through February 28, 2015) 29¢ per gallon (for March 1, 2015, through June 30, 2015) 29.3¢ per gallon (for July 1, 2015, through June 30, 2016) 29¢ per gallon (beginningfor July 1, 2016, through June 30, 2020)Ethanol blended gasoline E-10 to E-1430¢ per gallon (beginning July 1, 2020)E-85 gasoline17¢ per gallon (for January 1, 2006, through June 30, 2007) 19¢ per gallon (for July 1, 2007, through February 28, 2015) 29¢ per gallon (for March 1, 2015, through June 30, 2015) 29.3¢ per gallon (for July 1, 2015, through June 30, 2016) 29¢ per gallon (beginningfor July 1, 2016, through June 30, 2020)Ethanol blended gasoline E-15 or higher24¢ per gallon (beginning July 1, 2020)Aviation gasoline8¢ per gallon (beginning July 1, 1988)Diesel fuel other than B-11 or higher22.5¢ per gallon (on and before February 28, 2015) 32.5¢ per gallon (beginning March 1, 2015) Biodiesel blended fuel (B-11 orhigher)22.5¢ per gallon (on and before February 28, 2015) 32.5¢ per gallon (for March 1, 2015, through June 30, 2015) 29.5¢ per gallon (beginningfor July 1, 2015, through June 30, 2020) 30.1¢ per gallon (for July 1, 2020, through June 30, 2021) 30.4¢ per gallon (beginning July 1, 2021)Aviation jet fuel3¢ per gallon (on and before February 28, 2015) 5¢ per gallon (beginning March 1, 2015)L.P.G.20¢ per gallon (on and before February 28, 2015) 30¢ per gallon (beginning March 1, 2015)C.N.G.16¢ per 100 cu. ft. (on and before June 30, 2014) 21¢ per gallon (for July 1, 2014, through February 28, 2015) 31¢ per gallon (beginning March 1, 2015)L.N.G.22.5¢ per gallon (on and before February 28, 2015) 32.5¢ per gallon (beginning March 1, 2015)    68.2(2) Fuel distribution percentages.      a.    Ethanol distribution percentage.    (1)   Except as otherwise provided in this paragraph, for March 1, 2015, through June 30, 2020, this paragraph shall apply to the excise tax imposed on each gallon of motor fuel used for any purpose for the privilege of operating motor vehicles in this state. TheAn excise tax of 30 cents is imposed on each gallon of motor fuel other than ethanol blended gasoline classified as E-15 or higher.Ethanol Distribution %Ethanol TaxGasoline Tax00/5029.030.050+/5529.030.155+/6029.030.360+/6529.030.565+/7029.030.770+/7529.031.075+/8029.330.880+/8529.530.785+/9029.730.490+/9529.930.195+/10030.030.0    (2)   On and after July 1, 2026, an excise tax of 30 cents is imposed on each gallon of ethanol blended gasoline classified as E-15 or higher.    (3)   Before July 1, 2026, therate of the excise taxon ethanol blended gasoline classified as E-15 or higher shall be based on the ethanol distribution percentageas specified in Iowa Code section 452A.3. The ethanol distribution percentage is the number of gallons of ethanol blended gasolineclassified as E-15 or higher that isare distributed in this state as expressed as a percentage of the number of gallons of motor fuel, excluding aviation gasoline, distributed in this state. The number of gallons of ethanol blended gasoline and motor fuel distributed in this state shall be based on the total taxable gallons of ethanol blended gasoline and motor fuel as shown on the fuel tax monthly reports issued by the department for January through December for each determination period. The department shall determine the percentage for each determination period beginning January 1 and ending December 31based on data from reports filed pursuant to Iowa Code section 452A.33. The rate for the excise tax shall apply for the period beginning July 1 and ending June 30 following the end of the determination period. The rate for the excise tax shall be as follows:    (2)   Except as otherwise provided in this paragraph, after June 30, 2020, an excise tax of 30 cents is imposed on each gallon of motor fuel used for any purpose for the privilege of operating motor vehicles in this state.    b.    Biodiesel distribution percentage.    (1)   Except as otherwise provided in this paragraph, the rate of the excise tax on each gallon of special fuel for diesel engines of motor vehicles used for any purpose for the privilege of operating motor vehicles in this state, other than biodiesel blended fuel classified as B-11 or higher, is 32.5 cents.    1.   Except as otherwise provided in this paragraph, for July 1, 2015, through June 30, 2020, this paragraph shall apply to the excise tax imposed on each gallon of special fuel for diesel engines of motor vehiclesbiodiesel blended fuel classified as B-11 or higher used for any purpose for the privilege of operating motor vehicles in this state. The    2.   On and after July 1, 2026, the rate of the excise tax on each gallon of biodiesel blended fuel classified as B-11 or higher is 32.5 cents.    3.   Before July 1, 2026, therate of the excise tax shall be based on the biodiesel distribution percentageas specified in Iowa Code section 452A.3. The biodiesel distribution percentage is the number of gallons of biodiesel blended fuel classified as B-11 or higher that is distributed in this state as expressed as a percentage of the number of gallons of special fuel for diesel engines of motor vehicles distributed in this state. The number of gallons of biodiesel blended fuel and special fuel for diesel engines of motor vehicles distributed in this state shall be based on the total taxable gallons of biodiesel blended fuel and special fuel for diesel engines of motor vehicles as shown on the fuel tax monthly reports issued by the department for January through December for each determination period. The department shall determine the percentage for each determination period beginning January 1 and ending December 31based on data from reports filed pursuant to Iowa Code section 452A.33. The rate for the excise tax shall apply for the period beginning July 1 and ending June 30 following the end of the determination period. The rate for the excise tax shall be as follows:Biodiesel Distribution %B-11 or Higher TaxOther Than B-11 or Higher Tax00/5029.532.550+/5529.832.555+/6030.132.560+/6530.432.565+/7030.732.570+/7531.032.575+/8031.332.580+/8531.632.585+/9031.932.590+/9532.232.595+/10032.532.5    (2)   The determination period for the biodiesel distribution percentage is January through December each calendar year. Prior to July 1, 2015, Iowa licensees did not separately report the total taxable gallons of biodiesel blended fuel classified as B-11 or higher that is distributed in this state. Accordingly, the department cannot calculate the biodiesel distribution percentage for calendar years 2014 and 2015 using the method described in subparagraph 68.2(2)“b”(1). However, the best information available to the department indicates the biodiesel distribution percentage is not greater than 50 percent for calendar years 2014 and 2015. Therefore, for the period between July 1, 2015, and June 30, 2016, and for the period between July 1, 2016, and June 30, 2017, the rates for the excise tax on special fuel for diesel engines of motor vehicles are based on a biodiesel distribution percentage of 00/50%.    (3)   Except as otherwise provided in this paragraph, for the period between March 1, 2015, and June 30, 2015, and for the period after June 30, 2020, an excise tax of 32.5 cents is imposed on each gallon of special fuel for diesel engines of motor vehicles used for any purpose for the privilege of operating motor vehicles in this state.    c.    Legislative review.The ethanol distribution percentage, the biodiesel distribution percentage, and the corresponding excise tax rates are subject to legislative review at least every sixfive years. The review is based upon a fuel distribution percentage formula status report, which contains the recommendations of a legislative interim committee appointed to conduct a review of the fuel distribution percentage formulas. The report is prepared with the assistance of the Iowa department of revenue and the Iowa department of transportation. The report includes recommendations for changes or revisions to the fuel distribution percentage formulas based upon advances in technology, fuel use trends, and fuel price fluctuations observed during the preceding six-yearfive-year interval; an analysis of the operation of the fuel distribution percentage formulas during the preceding six-yearfive-year interval; and a summary of issues that have arisen since the previous review and potential approaches for resolution of those issues. The first report will be submitted to the general assembly no later than January 1, 2020, with subsequent reports developed and submitted by January 1 at least every sixthfifth year thereafter.    68.2(3)   The tax attaches when the fuel is withdrawn from a terminal or imported into Iowa. The tax is payable to the department by the supplier, restrictive supplier, importer, blender, or any person who owns the fuel at the time it is brought into the state by a restrictive supplier or importer or any other person who possesses taxable fuel upon which the tax has not been paid. The tax is to be remitted to the department by a supplier, restrictive supplier, or blender by the last day of the month following the month in which the fuel is withdrawn from a terminal or imported. The tax is to be remitted by an importer by the last day of the month for fuel imported in the first 15 days of the month and by the fifteenth day of the following month for fuel imported after the fifteenth day of the previous month. Nonlicensees who possess taxable fuel upon which the tax has not been paid must file returns and pay the tax the same as a restrictive supplier (monthly). All licensees must make payment by electronic funds transfer (see publication 90-201 for EFT requirements).    68.2(4)   The department shall determine the actual tax paid for E-85 gasoline in the previous calendar year and compare this amount to the amount that would have been paid using the tax rate imposed in Iowa Code section 452A.3, subsection 1 or 2. If the difference is less than $25,000, the tax rate for the tax period beginning the following July 1 shall be 17¢ per gallon. If the difference is $25,000 or more, the tax rate shall be the rate in effect pursuant to Iowa Code section 452A.3, subsection 1 or 2.Beginning January 1, 2006, retailers of E-85 gasoline must file a report with the department by the last day of the month of each calendar quarter for each retail location showing the number of invoiced gallons of E-85 gasoline sold by the retailer in Iowa during the preceding calendar quarter. The report must also include a listing of the vendors providing E-85 gasoline to the retailer and the number of gallons received from each vendor. If the retailer blends E-85 gasoline, the retailer must show the number of gallons of motor fuel (including both gasoline and alcohol) purchased and blended. The report must be signed under penalty for false certificate.    68.(5) 68.2(4)   Persons having title to motor fuel, ethanol blended gasoline, undyed special fuel, compressed natural gas, liquefied natural gas, or liquefied petroleum gas in storage and held for sale on the effective date of an increase in the excise tax rate imposed on motor fuel, ethanol blended gasoline, undyed special fuel, compressed natural gas, liquefied natural gas, or liquefied petroleum gas shall be subject to an inventory tax based upon the gallonage in storage as of the close of the business day preceding the effective date of the increased excise tax rate of motor fuel, ethanol blended gasoline, undyed special fuel, compressed natural gas, liquefied natural gas, or liquefied petroleum gas which will be subject to the increased excise tax rate.    a.    Persons subject to the tax imposed under this subrule shall take an inventory to determine the gallonage in storage for purposes of determining the tax and shall report the gallonage and pay the tax due within 30 days of the prescribed inventory date.    b.    The amount of the inventory tax is equal to the inventory tax rate times the gallonage in storage. The inventory tax rate is equal to the increased excise tax rate less the previous excise tax rate. The inventory tax does not apply to an increase in the tax rate of a specified fuel, except for compressed natural gas, unless the increase in the tax rate of that fuel is in excess of one-half cent per gallon.       This rule is intended to implement Iowa Code sections 452A.3, 452A.8 and 452A.85.

        ITEM 2.    Amend rule 701—68.3(452A) as follows:

    701—68.3(452A) Exemption.      68.3(1)   Motor fuel or undyed special fuel sold for export or exported from this state to another state, territory, or foreign country is exempt from the excise tax. The fuel is deemed sold for export or exported only if the bill of lading or manifest indicates that the destination of the fuel withdrawn from the terminal is outside the state of Iowa. The mode of transportation is not of consequence. In the event fuel is taxed and then subsequently exported, an amount equal to the tax previously paid will be allowable as a refund, upon receipt by the department of the appropriate documents, to the party who originally paid the tax. If the sale of exported fuel is completed in Iowa, then the sale is subject to Iowa sales tax if it is not exported for resale or otherwise exempt from sales tax. The sale is completed in Iowa if the foreign purchaser takes physical possession of the fuel in this state. Dodgen Industries, Inc. v. Iowa State Tax Commission, 160 N.W.2d 289 (Iowa 1968). See sales tax rule 701—18.37(422,423).    68.3(2)   Indelible dye meeting United States Environmental Protection Agency and Internal Revenue Service regulations must be added to fuel before or upon withdrawal at a terminal or refinery rack for that fuel to be exempt from tax and the dyed fuel can only be used for a nontaxable purpose listed in Iowa Code section 452A.17, subsection 1, paragraph “a.”452A.17(1)“a.” However, this exemption does not apply to fuel used for idle time, power takeoffs, reefer units, or pumping credits, or fuel used by contract carriers.       This rule is intended to implement Iowa Code section 452A.3 as amended by 1995 Iowa Acts, chapter 155.

        ITEM 3.    Amend rule 701—68.4(452A) as follows:

    701—68.4(452A) Blended fuel taxation—nonterminal location.      68.4(1) Responsibilities of all blenders at nonterminal locations.  A person who blends ethanol blended gasoline or biodiesel blended fuel at a nonterminal location must obtain a blender’s license. Blending ethanol with gasoline, or blending biodiesel with petrodiesel, may result in additional tax due or an allowable refund depending on the alcoholethanol content of the mixture and the tax paid on its components. The blender must make payment to the department for the additional tax due. The blender must obtain a refund permit to receive a refund of the overpayment of tax on the blended product.    68.4(2) Blenders of ethanol blended gasoline.      a.    A blender who owns the alcoholethanol (supplier) being used to blend with gasoline must purchase the gasoline from a supplier and pay the appropriate tax to the supplier. The blender must obtain a blender’s license and compute the tax due on the total gallons of blended product and make payment to the department for the additional amount due. For purposes of the following example, the tax rate for gasoline is presumed to be 30¢ per gallon and the tax rate for ethanol blended gasolineE-15 or higher is presumed to be 29¢24¢ per gallon. The actual tax rates for the appropriate period are shown in subrule 68.2(1).E XAMPLE :Blender purchases 7,2007,000 gallons tax-paid gasoline (7,2007,000 × .30) = $2,160.00$2,100.00Blender adds 8003,000 gallons untaxed alcoholethanol $.00Total tax paid on products $2,160.00$2,100.00Total tax due on 8,00010,000 gallons ethanol blended gasolineE-15 or higher (8,00010,000 × .29.24) = $2,320.00$2,400.00Additional Amount Due $160.00$300.00    b.    A blender who purchases alcoholethanol and gasoline from a supplier must pay tax on both the alcoholethanol purchased and the gasoline purchased. The blender must obtain a refund permit to receive a refund of the overpayment of tax on the blended product. For purposes of the following example, the tax rate for gasoline is presumed to be 30¢ per gallon and the tax rate for ethanol blended gasolineE-15 or higher is presumed to be 29¢24¢ per gallon. The actual tax rates for the appropriate period are shown in subrule 68.2(1).E XAMPLE :Blender purchases 7,2007,000 gallons tax-paid gasoline (7,2007,000 × .30) = $2,160.00$2,100.00Blender purchases 8003,000 gallons tax-paid alcoholethanol (8003,000 × .29.24) = $232.00$720.00Total tax paid on products $2,392.00$2,820.00Total tax due on 8,00010,000 gallons ethanol blended gasolineE-15 or higher (8,00010,000 × .29.24) = $2,320.00$2,400.00Amount of Refund Allowable $72.00$420.00    c.    A blender who purchases ethanol and gasoline from any source must pay tax on both the ethanol purchased and the gasoline purchased. The blender must obtain a blender’s license and compute the tax due on the total gallons of blended product and make payment to the department for the additional amount due. For purposes of the following example, the tax rate for gasoline is presumed to be 30¢ per gallon, the tax rate for ethanol is presumed to be 24¢ per gallon, and the tax rate for ethanol blended gasoline E-10 is presumed to be 30¢ per gallon. The actual tax rates for the appropriate period are shown in subrule 68.2(1).E XAMPLE :Blender purchases 7,200 gallons tax-paid gasoline (7,200 × .30) =$2,160.00Blender purchases 800 gallons tax-paid ethanol (800 × .24) =$192.00Total tax paid on products$2,352.00Total tax due on 8,000 gallons ethanol blended gasoline E-10 (8,000 × .30) =$2,400.00Additional Amount Due$48.00    d.    A blender who purchases ethanol blended gasoline E-10 to E-14 and ethanol blended gasoline E-15 or higher from a supplier must pay tax on both the ethanol blended gasoline E-10 to E-14 purchased and the ethanol blended gasoline E-15 purchased. The blender must obtain a refund permit to receive a refund of the overpayment of tax on the blended product. For purposes of the following example, the tax rate for E-10 to E-14 purchased is presumed to be 30¢ per gallon and the tax rate for ethanol blended gasoline E-15 or higher is presumed to be 24¢ per gallon. The actual tax rates for the appropriate period are shown in subrule 68.2(1).E XAMPLE :Blender purchases 7,000 gallons tax-paid ethanol blended gasoline E-10 to E-14 (7,000 × .30) =$2,100.00Blender purchases 3,000 gallons tax-paid ethanol blended gasoline E-15 or higher (3,000 × .24) =$720.00Total tax paid on products$2,820.00Total tax due on 10,000 gallons ethanol blended gasoline E-15 or higher (10,000 × .24) =$2,400.00Amount of Refund Allowable$420.00    c.    e.    Ethanol blended gasolineE-15 or higher—blending errors.Where a blending error occurs and an insufficient amount of alcoholethanol has been blended with gasoline so that the mixture fails to qualify as ethanol blended gasoline as defined in Iowa Code section 452A.2E-15 or higher, a 1 percent tolerance applies in determining the tax on the blended product as described in this paragraph:    (1)   If the amount of the alcoholethanol erroneously blended with gasoline is at least 914 percent of the total blended product by volume, the alcoholethanol and gasoline blended product is considered ethanol blended gasolineE-15 or higher and there is no penalty or assessment of additional tax.    (2)   If the amount of alcoholethanol erroneously blended with gasoline is less than 914 percent of the total blended product by volume, the total blend of gasoline and alcoholethanol is subject to tax asethanol blended gasolineE-10 to E-14 at the prevailing rate of tax.    (3)   This paragraph applies only if a blender intends to produce ethanol blended gasolineE-15 or higher. If a blender does not intend to produce ethanol blended gasoline when blending alcoholethanol and gasoline, and the mixture contains less than 1014 percent alcoholethanol by volume, no error has occurred and the mixture is subject to tax asethanol blended gasolineE-10 to E-14.    (4)   The following formulas are used to compute blending errors:Actual gasoline + actual alcoholethanol = total gallons of blended productTotal gallons of blended product × .09.14 = required alcoholethanol    (5)   Examples. The following factors are assumed for all examples:The blender in each example intends to blend ethanol blended gasolineE-15 or higher. Figures are rounded to the nearest whole gallon; ethanol blended gasolineE-15 or higher is taxed at $.2924¢ per gallon; gasoline is taxed at $.3030¢ per gallon. The actual tax rates for the appropriate period are shown in subrule 68.2(1). Penalty and interest charges are not computed in the examples.E XAMPLE 1:Actual gasoline= 8,0008,500gal.Actual alcoholethanol= 8001,500gal.Total blended product= 8,80010,000gal.8,80010,000 × .09.14= 7921,400gal. required alcoholethanol The actual alcoholethanol (8001,500 gallons) is more than the required alcoholethanol (7921,400 gallons), which means that the tax is applied according to subparagraph 68.4(2)“c”(1)68.4(2)“e”(1) as follows:8,80010,000 gal. of blended product × $.29.24 = $2,552$2,400tax on ethanol blended gasolineE-15 or higherE XAMPLE 2:Actual gasoline= 8,0109,200gal.Actual alcoholethanol= 790800gal.Total blended product= 8,80010,000gal.8,80010,000 × .09.14= 7921,400gal. required alcoholethanol The actual alcoholethanol (790800 gallons) is less than the required alcoholethanol (7921,400 gallons), which means that the entire blend is considered gasoline and the tax is applied according to subparagraph 68.4(2)“c”(2)68.4(2)“e”(2) as follows:8,80010,000 gal. of blended product × $.30 = $2,6403,000tax on gasoline    68.4(3) Blenders of biodiesel blended fuel.      a.    A blender who owns the biodiesel (supplier) being used to blend with diesel must purchase the diesel from a supplier and pay the appropriate tax to the supplier. The blender must obtain a blender’s license and compute the tax due on the total gallons of blended product and make payment to the department for the additional amount due. For purposes of the following examples, the tax rate for B-11 or higher is presumed to be 29¢30.1¢ per gallon and the tax rate for diesel other than B-11 or higher is presumed to be 32.5¢ per gallon. The actual tax rates for the appropriate period are shown in subrule 68.2(1).E XAMPLE 1.Blender purchases 7,120 gallons tax-paid petrodiesel (7,120 × .325) =$2,314.00Blender adds 880 gallons untaxed biodiesel =$.00Total tax paid on products =$2,314.00The blended product is 8,000 gallons of diesel, which includes 880 gallons (11% by volume) of biodiesel. Thus, the product is taxed as B-11 or higher.Total tax due on 8,000 gallons blended B-11 or higher (8,000 × .29.301) =$2,320.00$2,408.00Additional Amount Due = $6.00$94.00E XAMPLE 2.Blender purchases 7,600 gallons tax-paid petrodiesel (7,600 × .325) =$2,470.00Blender adds 400 gallons untaxed biodiesel =$.00Total tax paid on products =$2,470.00The blended product is 8,000 gallons of diesel, which includes 400 gallons (5% by volume) of biodiesel. Thus, the product is taxed as diesel other than B-11 or higher.Total tax due on 8,000 gallons diesel other than B-11 or higher (8,000 × .325) =$2,600.00Additional Amount Due = $130.00E XAMPLE 3.Blender purchases 7,750 gallons tax-paid B-2 (7,750 × .325) =$2,518.75Blender adds 250 gallons untaxed biodiesel =$.00Total tax paid on products =$2,518.757,750 gallons of B-2 contains 155 gallons (2%) of biodiesel. The blended product is 8,000 gallons of diesel, which includes 405 gallons (155 + 250, or 5% by volume) of biodiesel. Thus, the product is taxed as diesel other than B-11 or higher.Total tax due on 8,000 gallons diesel other than B-11 or higher (8,000 × .325) =$2,600.00Additional Amount Due = $81.25    b.    A blender who purchases diesel products from a supplier must pay the appropriate tax on all diesel products purchased. The blender must obtain a blender’s license and compute the tax due on the total gallons of blended product and make payment to the department for any additional amount due. The blender must also obtain a refund permit to receive a refund of any overpayment of tax on the blended product. For purposes of the following examples, the tax rate for B-11 or higher is presumed to be 29¢30.1¢ per gallon and the tax rate for diesel fuel other than B-11 or higher is presumed to be 32.5¢ per gallon. The actual tax rates for the appropriate period are shown in subrule 68.2(1).E XAMPLE 1.Blender purchases 7,120 gallons tax-paid petrodiesel (7,120 × .325) =$2,314.00Blender purchases 880 gallons tax-paid biodiesel (880 × .29.301) =$255.20$264.88Total tax paid on products =$2,569.20$2,578.88The blended product is 8,000 gallons of diesel, which includes 880 gallons (11% by volume) of biodiesel. Thus, the product is taxed as B-11 or higher.Total tax due on 8,000 gallons blended B-11 or higher (8,000 × .29.301) =$2,320.00$2,408.00Amount of Refund Allowable = $249.20$170.88E XAMPLE 2.Blender purchases 7,600 gallons tax-paid petrodiesel (7,600 × .325) =$2,470.00Blender purchases 400 gallons tax-paid biodiesel (400 × .29.301) =$116.00$120.40Total tax paid on products =$2,586.00$2,590.40The blended product is 8,000 gallons of biodiesel blended fuel, which includes 400 gallons (5% by volume) of biodiesel. Thus, the product is taxed as diesel other than B-11 or higher.Total tax due on 8,000 gallons blended B-5 (8,000 × .325) =$2,600.00Additional Amount Due = $14.00$9.60E XAMPLE 3.Blender purchases 4,000 gallons tax-paid B-2 (4,000 × .325) =$1,300.00Blender purchases 4,000 gallons tax-paid B-20 (4,000 × .29.301) =$1,160.00$1,204.00Total tax paid on products =$2,460.00$2,504.004,000 gallons of B-2 contains 80 gallons (2%) of biodiesel, and 4,000 gallons of B-20 contains 800 gallons (20%) of biodiesel. The blended product is 8,000 gallons of diesel, which includes 880 gallons (80 + 800, or 11% by volume) of biodiesel. Thus, the product is taxed as B-11 or higher.Total tax due on 8,000 gallons B-11 or higher (8,000 × .29.301) =$2,320.00$2,408.00Amount of Refund Allowable = $140.00$96.00    c.    Blending errors. Where a blending error occurs and an insufficient amount of biodiesel has been blended with petrodiesel so that the mixture fails to qualify as B-11 or higher as defined in rule 701—67.1(452A), a 1 percent tolerance applies in determining the tax on the blended product as described in this paragraph:    (1)   If the amount of the biodiesel erroneously blended with petrodiesel is at least 10 percent of the total blended product by volume, the biodiesel and petrodiesel blended product is considered B-11 or higher and there is no penalty or assessment of additional tax.    (2)   If the amount of biodiesel blended with petrodiesel is less than 10 percent of the total blended product by volume, the entire mixture is considered taxable diesel other than B-11 or higher and subject to tax at the prevailing rate.    (3)   This paragraph applies only if a blender intends to produce B-11 or higher. If a blender does not intend to produce B-11 or higher when blending biodiesel and petrodiesel, and the mixture contains less than 11 percent biodiesel by volume, no error has occurred and the mixture is subject to tax as diesel other than B-11 or higher.    (4)   The following formulas are used to compute blending errors:Actual biodiesel + actual petrodiesel = total gallons of blended productTotal gallons of blended product × .1 = required biodiesel    (5)   Examples. The following factors are assumed for all examples:The blender in each example intends to blend B-11 or higher. Figures are rounded to the nearest whole gallon; B-11 or higher is taxed at $.29.301¢ per gallon; diesel other than B-11 or higher is taxed at $.325.325¢ per gallon. The actual tax rates for the appropriate period are shown in subrule 68.2(1). Penalty and interest charges are not computed in the examples. E XAMPLE 1.Actual petrodiesel= 8,095gal.Actual biodiesel = 905gal.Total blended product= 9,000gal.9,000 × .1= 900gal. required biodieselThe actual biodiesel (905 gallons) is more than the required biodiesel (900 gallons). Thus, the tax is applied according to subparagraph 68.4(3)“c”(1) as follows:9,000 gal. of blended product × $.29.301= $2,610$2,709 tax on B-11 or higherE XAMPLE 2.Actual petrodiesel= 8,105gal.Actual biodiesel = 895gal.Total blended product= 9,000gal.9,000 × .1 = 900gal. required biodieselThe actual biodiesel (895 gallons) is less than the required biodiesel (900 gallons). Thus, the tax is applied according to subparagraph 68.4(3)“c”(2) as follows:9,000 gal. of blended product × $.325= $2,925 tax on diesel other than B-11 or higherE XAMPLE 3.    A blender erroneously mixes 5,000 gallons of B-2 with 4,500 gallons of B-20 with the intent of creating B-11 or higher. 5,000 gallons of B-2 contains 100 gallons (2%) of biodiesel. 4,500 gallons of B-20 contains 900 gallons (20%) of biodiesel. Thus, the 9,500 gallons (4,500 + 5,000) of blended product includes 1,000 gallons (100 + 900) of biodiesel and 8,500 gallons (9,500 – 1,000) of petrodiesel.Actual petrodiesel= 8,500gal.Actual biodiesel = 1,000gal.Total blended product= 9,500gal.9,500 × .1= 950gal. required biodieselThe actual biodiesel (1,000 gallons) is greater than the required biodiesel (950 gallons), which means that the entire blend is considered B-11 or higher and the tax is applied according to subparagraph 68.4(3)“c”(1) as follows:9,500 gal. of blended product × $.29.301= $2,755$2,859.50tax on B-11 or higher       This rule is intended to implement Iowa Code section 452A.8 as amended by 2015 Iowa Acts, Senate File 257.

        ITEM 4.    Amend paragraph 68.5(1)"a" as follows:    a.    The fuel tax liability for a supplier is computed by multiplying the per gallon fuel tax rate by the total number of invoiced gallons of motor fuel or undyed special fuel withdrawn from the terminal by the supplier within the state or by the supplier with an Iowa nexus from a terminal outside the state during the preceding calendar month, less deductions for fuel exported in the case of in-state withdrawals and the distribution allowance provided for in Iowa Code section 452A.5.Tax shall not be paid when the sale of alcoholethanol occurs within a terminal from an alcoholethanol manufacturer to a licensed supplier. The tax shall be paid by the licensed supplier when the invoiced gross gallonage of the alcoholethanol or the alcoholethanol part of the ethanol blended gasoline is withdrawn from a terminal for delivery in this state. This makes the licensed supplier responsible for the tax on both the alcoholethanol and the gasoline portions of the ethanol blended gasoline and for the reporting and accounting of this fuel as ethanol blended gasoline on the supplier report.

        ITEM 5.    Amend subrule 68.5(4) as follows:    68.5(4)   The tax liability for a nonlicensee is computed the same as a restrictive supplier. If motor fuel or undyed special fuel is exported from this state with no tax paid and subsequently returned to this state because all or a portion of it was not delivered where destined, the tax must be paid to the department by the nonlicensee.Allgallon entries on the return for determining the tax liability must be rounded to the nearest whole number.

        ITEM 6.    Amend subrule 68.7(1) as follows:    68.7(1)   To qualify for the credit, the supplier must notify the department in writing of the uncollectible account no later than ten calendar days after the due date for payment of the tax.Notification is to be sent to the Iowa Department of Revenue, Examination Section, Compliance DivisionSection - Business, P. O. Box 1045610465, Des Moines, Iowa 50306-045650306-0465.

        ITEM 7.    Amend subrule 68.8(1), introductory paragraph, as follows:    68.8(1)   Federal government. Fuel sold to the United States or to any agency or instrumentality of the United States. The tax is subject to refund regardless of how the fuel is used.     a.    The following factors, among others, will be considered in determining if any organization is an instrumentality of the United States government: (a) whether it was created by the federal government, (b) whether it is wholly owned by the federal government, (c) whether it is operated for profit, (d) whether it is “primarily” engaged in the performance of some “essential” government function, and (e) whether the tax will impose an economic burden upon the federal government or serve to materially impair the usefulness and efficiency of the organization or to materially restrict it in the performance of its duties if it were imposed. Unemployment Compensation Commission v. Wachovia Bank & Trust Company, 215 N.C. 491, 2 S.E.2d 592 (1939); 1976 O.A.G. 823, 827.    b.    The American Red Cross, Project Head Start, Federal Land Banks and Federal Land Bank Associations, among others, have been determined to be instrumentalities of the federal government. Receivers or trustees appointed in the federal bankruptcy proceedings are subject to the excise tax. Wood Brothers Construction Co. v. Bagley, 232 Iowa 902, 6 N.W.2d 397 (1942).

        ITEM 8.    Amend subrule 68.8(3) as follows:    68.8(3)   The state and political subdivisions. Fuel sold to the state of Iowa or any political subdivision of the state which is used for public purposes.    a.    The refund is not available to agencies or instrumentalities of a political subdivision, but rather only to the state of Iowa, agencies of the state of Iowa, and political subdivisions of the state of Iowa. The general attributes and factors in determining if an entity is a political subdivision of the state of Iowa are: (a) the entity has a specific geographic area, (b) the entity has public officials elected at public elections, (c) the entity has taxing power, (d) the entity has a general public purpose or benefit, and (e) the foregoing attributes, factors or powers were delegated to the entity by the state of Iowa. (1976 O.A.G. 823)    b.    The refund is also not available to employees of a governmental unit who purchase fuel individually and are later reimbursed by the governmental unit. The name of the governmental unit must appear on the invoice as the purchaser of the fuel or the refund will not be allowed. Alabama v. King & Boozer, 314 U.S. 1 (1941).

        ITEM 9.    Amend subrule 68.8(4) as follows:    68.8(4)   Contract carriers.     a.    Motor fuel and undyed special fuel sold to a contract carrier who has a contract with a public school under Iowa Code section 285.5 for the transportation of pupils of an approved public or nonpublic school is refundable. If the contract carrier also uses fuel for purposes other than the transportation of pupils, the refund will be based on that percentage of the total amount of fuel purchased which reflects the pupil transportation usage.    b.    A refund requested by contract carriers will be reduced by the applicable sales tax unless otherwise exempt. The name of the contract carrier must appear on the invoice as the purchaser of the fuel or the refund will not be allowed. Alabama v. King & Boozer, 314 U.S. 1 (1941).

        ITEM 10.    Amend subrule 68.8(6) as follows:    68.8(6)   Fuel used for producing denatured alcoholethanol.

        ITEM 11.    Amend subrule 68.9(1) as follows:    68.9(1)   Persons requesting a refund for fuel used for any exempt purpose will do so by providing all or a portion of the following: (a) refund permit number, (b) type of fuel, (c) total number of gallons/tons of fuel used to calculate the refund amount, (d) the beginning and ending dates of the tax period, (e) net cost of fuel, (f) Iowa sales tax due (net cost of fuel times sales tax rate), (g) other items depending on the type of permit and claim type, (h) the total amount of refund claimed, and (i) additional information as required.Persons requesting a refund for casualty loss, transport diversions, blending errors of motor fuel and alcoholethanol, and blending errors of special fuel must file in writing on the forms provided by the department and must attach supporting documents explaining why a refund is due.

        ITEM 12.    Amend subrule 68.9(4) as follows:    68.9(4)   A claim for refund will not be allowed unless the claimant has accumulated $60 in credits for one calendar year. A claim for refund may be filed anytime the $60 minimum has been met within the calendar year. If the $60 minimum has not been met in the calendar year, the credit must be claimed on the claimant’s income tax return unless the claimant is not required to file an income tax return in which case a refund will be allowed. An income tax credit may not be claimed for any year in which a claim for refund was filed. Once the $60 minimum has been met, the claim for refund must be filed within one year if met prior to July 1, 2002, and within three years if met on or after July 1, 2002.

        ITEM 13.    Amend rule 701—68.13(452A) as follows:

    701—68.13(452A) Reduction of refund—sales and use tax.  Under Iowa Code section 423.3(56), the sales price from the sale of motor fuel and special fuel consumed for highway use or in watercraft or aircraft where the fuel tax has been imposed and paid, and no refund has been or will be allowed, is exempt from Iowa sales and use tax. Therefore, unless the fuel is used for some other exempt purpose under Iowa Code section 423.3 (e.g., used for processing, used for agricultural purposes, used by an exempt government entity, used by a private nonprofit educational institution), or the fuel is lost through a casualty, the refund of taxes on motor fuel or special fuel will be reduced by the applicable sales and use tax. See sales tax rule 701—18.37(422,423). The sales price upon which the sales and use tax will be applied shall include all federal excise taxes, but will not include the Iowa fuel tax. Gurley v. Rhoden, 421 U.S. 200 (1975).       This rule is intended to implement Iowa Code section 452A.17.

        ITEM 14.    Amend rule 701—69.2(452A) as follows:

    701—69.2(452A) Tax rates—time tax attaches—responsible party—payment of the tax.  See 701—subrule 68.2(1) for tax rates. The excise tax on L.P.G. attaches when the special fuel is placed in a fuel supply tank of a motor vehicle. The excise tax on C.N.G. and L.N.G. attaches at the time of delivery into equipment for compressing the gas for subsequent delivery into the fuel supply tank of a motor vehicle.     69.2(1)   The person responsible for the tax must collect the tax from the purchaser and remit the tax to the department. The person responsible for the tax is:    1a.    The licensed L.P.G., L.N.G., or C.N.G. dealer, or    2b.    The licensed L.P.G., L.N.G., or C.N.G. user.    69.2(2)   The person responsible for placing L.P.G. into the fuel supply tank of a vehicle and the person responsible for placing C.N.G. or L.N.G. into compressing equipment must hold a license as a dealer or user as defined in Iowa Code section 452A.4.    69.2(3)   The return and tax are due no later than the last day of the month following the month the L.P.G. was placed in a vehicle or C.N.G. or L.N.G. was placed into compressing equipment. The tax must be remitted by means of electronic funds transfer, unless the licensee can show that this method of payment would cause undue hardship on the licensee and must be rounded to the nearest whole number. The return must be remitted by means of electronic transmission.       This rule is intended to implement Iowa Code section 452A.8 as amended by 2014 Iowa Acts, Senate File 2338.
        [Filed 7/21/21, effective 9/15/21][Published 8/11/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/11/21.
    ARC 5840CRevenue Department[701]Adopted and Filed

    Rule making related to data center businesses and refund requests

        The Revenue Department hereby amends Chapter 230, “Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing,” 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 section 423.4.Purpose and Summary    The Department is incorporating the sales and use tax refund request process for data center businesses into its new tax administration system. The prior rule implementing the refund for data center businesses required that an affidavit be filed by the business before the business can file a refund claim. The Department adopted this rule making to allow businesses to submit the refund claim form and the affidavit simultaneously, after which the Department will review the affidavit prior to reviewing the refund claim form. This change makes it easier for data center businesses to provide the information required to request a refund.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 16, 2021, as ARC 5687C. 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 July 21, 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 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 September 15, 2021.    The following rule-making action is adopted:

        ITEM 1.    Amend paragraph 230.13(7)"d", introductory paragraph, as follows:    d.    Affidavit.In addition to completing and filing Form IA 843, Claim for Refund, the owner of a data center business seeking a refund as specified in this rule must also complete and file with the department an affidavit certifying that qualifications for the refund have been met. The affidavit must be filed prior to any refund request and must be approved by the department before a refund claim can be filedreviewed. The following format must be used for the affidavit:    [Filed 7/21/21, effective 9/15/21][Published 8/11/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/11/21.
    ARC 5828CTelecommunications and Technology Commission, Iowa[751]Adopted and Filed

    Rule making related to waivers

        The Iowa Telecommunications and Technology Commission hereby amends Chapter 9, “Requests for Waiver of Network Use by Certified Users,” and Chapter 16, “Uniform Waiver and Variance Rules,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 8D.3(3)“b.”State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 8D.9(2) and 17A.9A.Purpose and Summary    2020 Iowa Acts, House File 2389, amended the waivers and variances provision of the Administrative Procedures Act (Iowa Code chapter 17A) by striking references to “variances” and changing reporting requirements for waivers from semiannually to within 60 days of the granting or denying of a waiver request. 2020 Iowa Acts, Senate File 2284, amended Iowa Code section 8D.9 to strike Regents institutions from the definition of “certified users” of the Iowa Communications Network. This rule making implements those changes.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on May 19, 2021, as ARC 5635C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Commission on July 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 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 September 15, 2021.    The following rule-making actions are adopted:

        ITEM 1.    Amend rule 751—9.1(8D), introductory paragraph, as follows:

    751—9.1(8D) Request for waiver.  A certified user is entitled to file a request for a waiver pursuant to Iowa Code section 8D.9(2). For the purposes of this chapter, “certified user” means an area education agency,or community college, or regents institution, that has certified with the commission that it is or will be a part of the network.

        ITEM 2.    Amend rule 751—9.6(8D) as follows:

    751—9.6(8D) Hearing.  At the commission meeting where the petition is considered, the petitioner and the commission staff will have an opportunity to present any relevant evidence to the commission bearing on the appropriateness of the petition. The hearing will be informal. The hearing will be mechanically recorded. The recording shall constitute the official record of the hearing. Either party may at its own expense have a certified court reporter present to record the hearing. In the event of an appeal, the appealing party shall, at its cost, be responsible for transcribing the record of the meeting for judicial review. In the event the decision of the commission is subject to arbitration pursuant to Iowa Code section 679A.19, the commission shall have the record transcribed with the cost to be split evenly between the parties subject to the arbitration.    9.6(1) Official record and in camera requests.  All of the information received by the commission from the staff and the petitioner including the petition and attachments will be included in the record of the hearing. The petitioner may ask the commission to examine any proprietary information in camera and in conformance with Iowa Code chapter 22. The tape recording for the hearing and the evidence presented to the commission will constitute the record of the proceeding.    9.6(2) Decision.  The commission members, the petitioner and the staff will be afforded an opportunity to ask questions regarding the information presented at the time of the meeting. At the close of the meeting, the commission will issue a decision that is dictated into the record or the matter will be taken under advisement to be discussed and decided at a subsequent public meeting. The commission’s decision shall be reduced to writing and shall constitute final agency action. In the event the decision is appealed by a regents institution, the resolution of the dispute shall be subject to the provisions of Iowa Code section 679A.19.

        ITEM 3.    Amend 751—Chapter 16, title, as follows:UNIFORM WAIVER AND VARIANCE RULES

        ITEM 4.    Amend rules 751—16.1(17A,ExecOrd11) to 751—16.3(17A,ExecOrd11) as follows:

    751—16.1(17A,ExecOrd11) Applicability.  This chapter outlines a uniform process for the granting of waivers or variances from rules adopted by the commission. The intent of this chapter is to allow persons to seek exceptions to the application of rules issued by the commission. This chapter shall not apply to rules that merely define the meaning of a statute or other provision of law or precedent if the commission does not possess delegated authority to bind the courts to any extent with its definition. To the extent another more specific provision of law governs the issuance of a waiver from a particular rule, the more specific provision shall supersede this chapter with respect to any waiver from that rule.    16.1(1) Definitions.          "Commission" "Iowa telecommunications and technology commission" means the Iowa telecommunications and technology commission established by Iowa Code chapter 8D operating the Iowa Communications Network.        "Person" means an individual, corporation, limited liability company, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any legal entity.        "Waiver or variance" means an agency action which suspends in whole or in part the requirements or provisions of a rule as applied to an identified person on the basis of the particular circumstances of that person.    16.1(2) Authority.      a.    A waiver or variance from rules adopted by the commission may be granted in accordance with this chapter if (1) the commission has authority to promulgate the rule from which waiver or variance is requested or has final decision-making authority over a contested case in which a waiver or variance is requested; and (2) no statute or rule otherwise controls the granting of a waiver or variance from the rule from which a waiver or variance is requested.    b.    No waiver or variance may be granted from a requirement which is imposed by statute. Any waiver or variance must be consistent with statute.

    751—16.2(17A,ExecOrd11) Commission discretion.  The decision on whether the circumstances justify the granting of a waiver or variance shall be made at the discretion of the commission upon consideration of all relevant factors.    16.2(1) Criteria for waiver or variance.  The commission may, in response to a completed petition or on its own motion, grant a waiver or variance from a rule, in whole or in part, as applied to the circumstances of a specified situation if the commission finds each of the following:    a.    Application of the rule to the person at issue would result in hardship or injustice to that person; and    b.    Waiver or variance on the basis of the particular circumstances relative to that specified person would be consistent with the public interest; and    c.    Waiver or variance in the specific case would not prejudice the substantial legal rights of any person; and    d.    Where applicable, substantially equal protection of public health, safety, and welfare will be afforded by a means other than that prescribed in the particular rule for which the waiver or variance is requested.In determining whether a waiver should be granted, the commission shall consider the public interest, policies and legislative intent of the statute on which the rule is based. When the rule from which a waiver or variance is sought establishes administrative deadlines, the commission shall balance the special individual circumstances of the petitioner with the overall goal of uniform treatment of all affected persons.    16.2(2) Special waiver or variance rules not precluded.  These uniform waiver and variance rules shall not preclude the commission from granting waivers or variances in other contexts including those described in Iowa Code section 8D.9 or on the basis of other standards if a statute or other commission rule authorizes the commission to do so and the commission deems it appropriate to do so.

    751—16.3(17A,ExecOrd11) Requester’s responsibilities in filing a waiver or variance petition.      16.3(1) Application.  All petitions for waiver or variance must be submitted in writing to the ICN main office location as listed in 751—subrule 1.6(1). If the petition relates to a pending contested case, a copy of the petition shall also be filed in the contested case proceeding.    16.3(2) Content of petition.  A petition for waiver or variance shall include the following information where applicable and known to the requester (for an example of a petition for waiver or variance, see Exhibit A at the end of this chapter):    a.    A description and citation of the specific rule from which a waiver or variance is requested.    b.    The specific waiver or variance requested, including the precise scope and operative period that the waiver or variance will extend.    c.    The relevant facts that the petitioner believes would justify a waiver or variance.    d.    A signed statement from the petitioner attesting to the accuracy of the facts provided in the petition and a statement of reasons that the petitioner believes will justify a waiver or variance.    e.    A history of any prior contacts between the commission and the petitioner relating to the use of the network, other regulated activity, license, grant, loan or other financial assistance affected by the proposed waiver or variance, including a description of each use of the network, license, grant, loan or other financial assistance held by the requester, any notices of violation, contested case hearings, or investigative reports relating to the affected use of the network, regulated activity, license, grant or loan within the last five years.    f.    Any information known to the requester regarding the commission’s treatment of similar cases.    g.    The name, address, and telephone number of any public agency or political subdivision which also regulates the activity in question or which might be affected by the granting of a waiver or variance.    h.    The name, address, and telephone number of any person or entity that would be adversely affected by the granting of a petition.    i.    The name, address, and telephone number of any person with knowledge of the relevant facts relating to the proposed waiver or variance.    j.    Signed releases of information authorizing persons with knowledge regarding the request to furnish the commission with information relevant to the waiver or variance.    16.3(3) Burden of persuasion.  When a petition is filed for a waiver or variance from a commission rule, the burden of persuasion shall be on the petitioner to demonstrate by clear and convincing evidence that the commission should exercise its discretion to grant the petitioner a waiver or variance.

        ITEM 5.    Amend rules 751—16.5(17A,ExecOrd11) to 751—16.11(17A,ExecOrd11) as follows:

    751—16.5(17A,ExecOrd11) Commission responsibilities regarding petition for waiver or variance.      16.5(1) Additional information.  Prior to issuing an order granting or denying a waiver or variance, the commission may request additional information from the petitioner relative to the petition and surrounding circumstances. If the petition was not filed in a contested case, the commission may, on its own motion or at the petitioner’s request, schedule a telephonic or in-person meeting or a meeting over the network operated by the commission, between the petitioner and the commission’s designee, a committee of the commission, or a quorum of the commission.    16.5(2) Hearing procedures.  The provisions of Iowa Code sections 17A.10 to 17A.18A regarding contested case hearings shall apply in three situations: (a) to any petition for a waiver or variance of rule filed within a contested case; (b) when the commission so provides by rule or order; or (c) when a statute so requires.    16.5(3) Ruling.  An order granting or denying a waiver or variance shall be in writing and shall contain a reference to the particular person and rule or portion thereof to which the order pertains, a statement of the relevant facts and reasons upon which the action is based, and a description of the precise scope and operative period of the waiver if one is issued.    16.5(4) Conditions.  The commission may condition the granting of the waiver or variance on such reasonable conditions as appropriate to achieve the objectives of the particular rule in question through alternative means.    16.5(5) Narrowly tailored exception.  A waiver, if granted, shall provide the narrowest exception possible to the provisions of a rule.    16.5(6) Time period of waiver.  A waiver shall not be permanent unless the petitioner can show that a temporary waiver would be impracticable. If a temporary waiver is granted, there is no automatic right to renewal. At the sole discretion of the commission, a waiver may be renewed if the commission finds that grounds for a waiver continue to exist.    16.5(7) Time for ruling.  The commission shall grant or deny a petition for a waiver or variance as soon as practicable but, in any event, shall do so within 120 days of its receipt, unless the petitioner agrees to a later date. However, if a petition is filed in a contested case, the commission shall grant or deny the petition no later than the time at which the final decision in that contested case is issued.    16.5(8) When deemed denied.  Failure of the commission to grant or deny a petition within the required time period shall be deemed a denial of that petition by the commission.    16.5(9) Service of order.  Within seven days of its issuance, any order issued under this chapter shall be transmitted to the petitioner or the person to whom the order pertains and to any other person entitled to such notice by any provision of law.

    751—16.6(17A,ExecOrd11) Public availability.  Subject to the provisions of Iowa Code section 17A.3(1)“e,” the commission shall maintain a record of all orders granting or denying waivers and variances under this chapter. All final rulings in response to requests for waivers or variances shall be indexed and available to members of the public at the ICN main office location as listed in 751—subrule 1.6(1).

    751—16.7(17A,ExecOrd11) Voiding or cancellation.  A waiver or variance issued by the commission pursuant to this chapter may be withdrawn, canceled, modified, declared void or revoked if, after appropriate notice and hearing, the commission issues an order finding any of the following:
    1. The petitioner or the person who was the subject of the waiver or variance order withheld or misrepresented material facts relevant to the propriety or desirability of granting the waiver or variance; or
    2. The alternative means for ensuring that the public health, safety and welfare will be adequately protected after issuance of the waiver order have been demonstrated to be insufficient; or
    3. The subject of the waiver order has failed to comply with all conditions contained in the order; or
    4. The waiver or variance is contrary to the public health, safety and welfare in light of newly discovered evidence or changed circumstances.

    751—16.8(17A,ExecOrd11) Violations.  Violation of conditions in the waiver or variance approval is the equivalent of violation of the particular rule for which the waiver or variance is granted and is subject to the same remedies or penalties.

    751—16.9(17A,ExecOrd11) Defense.  After the commission issues an order granting a waiver or variance, the order is a defense within its terms and the specific facts indicated therein for the person to whom the order pertains in any proceeding in which the rule in question is sought to be invoked.

    751—16.10(17A,ExecOrd11) Appeals.  Granting or denying a request for waiver or variance is final agency action under Iowa Code chapter 17A. An appeal to district court shall be taken within 30 days of the issuance of the ruling in response to the request unless a contrary time is provided by rule or statute.

    751—16.11(17A,ExecOrd11) Summary reportsSubmission of waiver information.  Semiannually, the commission shall prepare a summary report identifyingWithin 60 days of granting or denying a waiver, the commission shall make a submission on the Internet site established pursuant to Iowa Code section 17A.9A for the submission of waiver information. 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 commission’s actions on waiver requests. If practicable, the report shall detailthe extent to which granting 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.Exhibit ASample Petition (Request) for Waiver/VarianceBEFORE THE IOWA TELECOMMUNICATIONS AND TECHNOLOGY COMMISSION    Petition by (insert name of petitioner)for the waiver of (insert rule citation)relating to (insert the subject matter). }    PETITION FORWAIVERRequests for waiver or variance from a commission rule shall include the following information in the petition for waiver or variance where applicable and known to the petitioner:    a.    Provide the petitioner’s (person asking for a waiver or variance) name, address, and telephone number.    b.    Describe and cite the specific rule from which a waiver or variance is requested.    c.    Describe the specific waiver or variance requested; include the exact scope and time period that the waiver or variance will extend.    d.    Explain the important facts that the petitioner believes justify a waiver or variance. Include in your answer why (1) applying the rule will result in hardship or injustice to the petitioner; and (2) granting the waiver or variance to the petitioner is consistent with the public interest; and (3) granting the waiver or variance will not prejudice the substantial legal rights of any person; and (4) where applicable, how substantially equal protection of public health, safety, and welfare will be afforded by a means other than that prescribed in the particular rule for which the waiver or variance is requested.    e.    Provide a history of prior contacts between the commission and petitioner relating to the use of the network, regulated activity, license, grant, loan or other financial assistance that would be affected by the waiver or variance; include a description of each affected use of the network, license, grant, loan or other financial assistance held by the petitioner, any notices of violation, contested case hearings, or investigative reports relating to the affected use, regulated activity, license, grant or loan within the past five years.    f.    Provide information known to the petitioner regarding the commission’s treatment of similar cases.    g.    Provide the name, address, and telephone number of any public agency or political subdivision which also regulates the activity in question or which might be affected by the granting of a waiver or variance.    h.    Provide the name, address, and telephone number of any person or entity that would be adversely affected or disadvantaged by the granting of the waiver or variance.    i.    Provide the name, address, and telephone number of any person with knowledge of the relevant or important facts relating to the requested waiver or variance.    j.    Provide signed releases of information authorizing persons with knowledge regarding the request to furnish the commission with information relevant to the waiver or variance.I hereby attest to the accuracy and truthfulness of the above information.Petitioner’s signatureDate Petitioner should note the following when requesting or petitioning for a waiver or variance:
    1. The petitioner has the burden of proving to the commission, by clear and convincing evidence, the following: (a) application of the rule to the petitioner would result in hardship or injustice to the petitioner; and (b) waiver or variance on the basis of the particular circumstances relative to the petitioner would be consistent with the public interest; and (c) waiver or variance in the specific case would not prejudice the substantial legal rights of any person; and (d) where applicable, how substantially equal protection of public health, safety, and welfare will be afforded by a means other than that prescribed in the particular rule for which the waiver or variance is requested.
    2. The commission may request additional information from or request an informal meeting with the petitioner prior to issuing a ruling granting or denying a request for waiver or variance.
    3. All petitions for waiver or variance must be submitted in writing to the ICN main office location as listed in 751—subrule 1.6(1). If the petition relates to a pending contested case, a copy of the petition shall also be filed in the contested case proceeding.
        [Filed 7/15/21, effective 9/15/21][Published 8/11/21]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/11/21.
    ARC 5829CTransportation Department[761]Adopted and Filed

    Rule making related to odometer disclosure statements

        The Transportation Department hereby amends Chapter 400, “Vehicle Registration and Certificate of Title,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 307.12 and 321.71.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 321.71.Purpose and Summary    The amendment to Chapter 400 conforms subrule 400.52(3) with 2020 Iowa Acts, Senate File 2091, which amended Iowa Code section 321.71 related to odometer disclosure statements. Senate File 2091 became effective January 1, 2021.    Federal and Iowa law require odometer disclosure upon transfer of a vehicle to prevent odometer fraud and ensure that all parties are aware of the mileage on a vehicle. Prior to January 1, 2021, a vehicle seller was required to disclose the odometer mileage for any vehicle that was less than ten model years old when transferring the vehicle. However, federal regulations as adopted in Iowa Code section 321.71 now require odometer disclosure statements for the transfer of a vehicle that is less than 20 model years old, beginning with vehicles from the 2011 model year (49 CFR Section 580.17).    This requirement put into place the following scenarios:

    1. For a vehicle transfer that occurs through December 31, 2030, any vehicle of model year 2011 or newer will require odometer disclosure.
    2. For a vehicle transfer that occurs on or after January 1, 2031, any vehicle that is less than 20 model years old will require odometer disclosure. The model year formula for odometer statements will be the current year minus 20. For example, if the calendar year is 2033 and the car model year is 2013, the car is 20 model years old and therefore is not subject to odometer disclosure.
        This requirement is for all transfers of vehicles, whether through sale at a licensed dealer, private sale, operation of law transfer, or other method. However, any vehicle that is currently exempt from odometer disclosure under federal or Iowa law based on any reason other than model year will remain exempt. This includes the provision in 49 CFR Section 580.17(a)(1) that exempts any vehicle having a gross vehicle weight rating of more than 16,000 pounds.</