Bulletin 09-24-2008

Front matter not included
ARC 7175BBanking Division[187]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code sections 17A.3 and 535B.14, the Banking Division of the Commerce Department hereby gives Notice of Intended Action to amend Chapter 18, “Mortgage Bankers and Mortgage Brokers,” Iowa Administrative Code.    The proposed amendments update existing rules to conform to recent legislative changes and in response to a review for necessary corrections.    Interested persons may make written comments on the proposed amendments on or before October 14, 2008. Such written material should be directed to the Superintendent of Banking, Banking Division, Department of Commerce, 200 East Grand Avenue, Suite 300, Des Moines, Iowa 50309. Persons who want to convey their views orally should contact the Superintendent of Banking, Department of Commerce, at (515)281-4014 or at 200 East Grand Avenue, Suite 300.    These amendments are intended to implement Iowa Code sections 17A.3 and 524.213 and 2008 Iowa Acts, House File 2556 and Senate File 2428.    The following amendments are proposed.

    ITEM 1.    Amend rule 187—18.1(17A,535B) as follows:

187—18.1(17A,535B) Definitions.  For the purposes of this chapter, the definitions in Iowa Code chapter 535B, 2005 Iowa Acts, chapter 83, and 2006 Iowa Acts, Senate File 2353, shall apply. In addition, unless the context otherwise requires:        "Criminal background check" means a state criminal background check and a national criminal history check through the Federal Bureau of Investigation.        "Individual registrant" means a natural person who is registered with the administrator in accordance with the provisions of 2005 Iowa Acts, chapter 83, section 6Iowa Code section 535B.4A.        "Individual registration" means a written oran electronic registration submitted by a natural person to the administrator to act as a mortgage banker or mortgage broker in this state in accordance with the provisions of 2005 Iowa Acts, chapter 83, section 6Iowa Code section 535B.4A. To be considered active, an individual registrant must be an employee of or an exclusive agent of a licensee.        "License application" means a written oran electronic application submitted to the administrator for a license to operate as a mortgage banker or mortgage broker in accordance with the provisions of Iowa Code section 535B.4.        "Licensee" means a person who has a license to operate as a mortgage banker or mortgage broker in accordance with the provisions of Iowa Code section 535B.4.        "Makes at least four mortgage loans," as used in Iowa Code section 535B.1(4)“a,” means the person is listed on loan documents as the lender for at least four mortgage loans.        "Mortgage application" means an oral or written request for an extension of credit that is made in accordance with procedures established by a creditor for the type of credit requested. A completed application has all the information that the creditor regularly obtains and considers in evaluating an application for the amount and type of credit requested.“Nationwide mortgage licensing system and registry” or “NMLS&R” means a mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of mortgage loan originators, mortgage providers, mortgage lenders, mortgage brokers, and mortgage servicers.        "Services a loan" "servicing a loan" means undertaking the direct collection of payments on a loan from the borrower or the right to undertake direct collection of payments on a loan from the borrower.

    ITEM 2.     Amend subrules 18.2(2), 18.2(4) and 18.2(5) as follows:    18 18 18.2 2 2(2)   The license application shall be accompanied by a fee of $500 plus $40 per additional branch location. The $500 fee is not subject to refund.    18 18 18.2 2 2(4)   The administrator shall approve or deny a license application in accordance with the provisions of Iowa Code section 535B.5. A person shall not be eligible for licensing unless all individual registrants who are employed by, under contract with, or exclusive agents of the person have successfully completed the registration and background checks required by 2005 Iowa Acts, chapter 83, section 6Iowa Code section 535B.4A.    18 18 18.2 2 2(5)   Licenses expire on the next June 30December 31 after issuance. However, licenses granted on or after April 1November 1 but before July 1January 1 will not expire until June 30December 31 of the following year. For example, a license granted on April 17, 2007November 17, 2008, would not expire until June 30, 2008December 31, 2009.

    ITEM 3.    Amend rule 187—18.3(17A,535B) as follows:

187—18.3(17A,535B) Renewal of license.      18.3(1)   To remain authorized to act as a mortgage banker or mortgage broker, a licensee must renew a license before the expiration date of the license. A licensee who fails to renew a license before expiration is not authorized to act as a mortgage banker or mortgage broker in Iowa after the expiration date.    18.3(2)   Application to renew a license shall be submitted to the administrator before June 1 December 1 of the year of expiration on forms provided by the administratorthrough the NMLS&R. All requested information shall be provided to the administrator on or with the application formas directed by the NMLS&R. Applications for renewal of a license to transact business solely as a mortgage broker must be accompanied by a fee of $200. Applications for renewal of a license to transact business as a mortgage banker must be accompanied by a fee of $400. In addition, the licensee shall pay a branch office renewal fee of $40 per branch. The administrator may assess late fees of up to $10 per day for applications submitted after June 1December 1.    18.3(3)   Application forms for renewal of a license may be obtained from the administrator’s office or will be available on the administrator’s Web site. Licensees may renew electronically or by submitting a written application. While the administrator generally mails renewal application forms or reminders to licensees before May 1 preceding license expiration, the failure of the administrator to mail an application form or the failure of a licensee to receive an application form shall not excuse the licensee from the requirement to timely renew.    18.(4) 18.3(3)   The administrator shall grant an application to renew a license if:    a.    The administrator receives the application by June 1 December 1, accompanied by the appropriate renewal fee, or the administrator receives the application after June 1 December 1 but before July 1 January 1 and it is accompanied by the appropriate renewal fee and the appropriate late fee;    b.    The application is fully completed with all necessary information; and    c.    The application does not reveal grounds to deny a license.    18.(5) 18.3(4)   A renewal application received by the administrator after June 30December 31 may, at the discretion of the administrator, be rejected for processing or may be treated as a new application for a license. A licensee who fails to renew a license before the expiration date is not authorized to act as a mortgage banker or mortgage broker in Iowa after the expiration date.

    ITEM 4.    Amend rule 187—18.4(17A,535B) as follows:

187—18.4(17A,535B) Individual registration requirements.      18.4(1)   A natural person who applies for individual registration pursuant to 2005 Iowa Acts, chapter 83, section 6, Iowa Code section 535B.4A to act as a mortgage banker or mortgage broker in this state shall apply with the administrator on forms provided by the administrator. The administrator may consider an application withdrawn if it does not contain all of the information required and the information is not submitted to the administrator within 30 days after the administrator requests the information.    18.4(2)   Prior to applying for an individual registration, an applicant must complete at least 20 hours of education approved by the NMLS&R, which shall include at least:    a.    Three hours of federal law and regulations;    b.    Three hours of ethics, which shall include instruction on fraud, consumer protection, and fair lending issues; and     c.    Two hours of training related to lending standards for the nontraditional mortgage product marketplace.    18.4(3)   Prior to applying for an individual registration, an applicant must pass, in accordance with the standards established under Public Law 110-289, Title V, the S.A.F.E. Mortgage Licensing Act, a qualified written test developed by the NMLS&R and administered by a provider approved by the NMLS&R. An applicant must achieve a test score of not less than 75 percent correct answers to questions to pass the qualified written test.    18.(2) 18.4(4)   The fee for an initial individual registration is $50, plus the actual cost of obtaining the criminal background check. The fee is not subject to refund.    18.(3) 18.4(5)   An applicant must submit to a criminal background check.    18.(4) 18.4(6)   The administrator may deny an application for individual registration for any of the following reasons:    a.    AnotherThis state or another state or jurisdiction has denied, suspended, revoked, or refused to renew the applicant’s authorization to act as a mortgage banker or mortgage broker or has denied, suspended, revoked or refused to renew a similar license or registration under this state's or the other state’s or jurisdiction’s law. An agreement made between a person and this state or another state or jurisdiction not to operate as a mortgage banker or mortgage broker in that state shall be considered a denial of that person’s authorization to act as a mortgage banker or mortgage broker in that state.    b.    The applicant has been barred, removed, or prohibited from serving in any capacity in a financial institution by any state or federal regulatory agency including but not limited to the Office of Comptroller of the Currency, the Office of Thrift Supervision, the Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System, or the U.S. Department of Housing and Urban Development.    c.    The applicant has been convicted of a felony in a domestic, foreign, or military court during the seven-year period preceding the date of the application for individual registration; or at any time preceding such date of application if such felony involved an act of fraud, dishonesty, a breach of trust, or money laundering. For the purposes of this paragraph, “convicted of” includes a guilty plea, deferred judgment, deferred sentence, or other similar finding of guilt by a court of competent jurisdiction.    c.    d.    The applicant has been convicted of forgery, embezzlement, obtaining money under false pretenses, theft, extortion, conspiracy to defraud, or another similar offense, in a court of competent jurisdiction in this state or in any other state, territory or district of the United States, or in any foreign jurisdiction. For the purposes of this paragraph, “conviction” “convicted of” includes a guilty plea, deferred judgment, deferred sentence, or other similar finding of guilt by a court of competent jurisdiction.    d.    e.    The applicant has had a professional license of any kind revoked in any state or jurisdiction. An agreement to surrender a license and not to operate in an occupation in which a professional license is required shall be considered a revocation for the purposes of this rule.    e.    f.    The applicant is under 18 years of age.    g.    The applicant has made a false statement of material fact on an application for an individual registration or has been otherwise implicated in the submission of a false application.    h.    The applicant has demonstrated a lack of moral character in a manner that the administrator reasonably believes will impair the applicant’s ability to act as a mortgage banker or broker in full compliance with the public interest and state policies described in Iowa Code chapter 535B.     f.    i.    The applicant has failed to pay child support and is identified in a certificate of noncompliance from the child support recovery unit of the department of human services according to the procedures in Iowa Code chapter 252J.    g.    j.    The applicant has failed to pay student loans and is identified in a certificate of noncompliance from the college student aid commission according to the procedures set forth in Iowa Code chapter 261.     k.    The applicant has failed to pay state debt and is identified in a certificate of noncompliance from the department of revenue according to the procedures set forth in 2008 Iowa Acts, Senate File 2428.    18.(5) 18.4(7)   As required by 2005 Iowa Acts, chapter 83, section 6Iowa Code section 535B.4A, an individual registrant must be employed by, under contract with, or an exclusive agent of a licensee under Iowa Code section 535B.4. However, the administrator may consider an application for individual registration from a person not currently employed by, under contract with, or an exclusive agent of a licensee. If the administrator determines that the applicant is otherwise eligible for individual registration, the administrator shall approve the registration in “unattached” status.    18.(6) 18.4(8)   An individual registration expires on the next June 30December 31 after approval. However, individual registrations approved on or after April 1November 1 but before July 1January 1 will not expire until June 30December 31 of the following year. For example, an application for individual registration approved on April 17, 2007November 17, 2008, would not expire until June 30, 2008December 31, 2009.    18.(7) 18.4(9)   The administrator may issue a temporary individual registration for a period not to exceed 180 days to an applicant who has submitted to a national criminal history check as required by 2005 Iowa Acts, chapter 83, section 6, as amended by 2006 Iowa Acts, Senate File 2353Iowa Code section 535B.4A, pending the results of the national criminal history check. The temporary individual registration issued pursuant to this subrule is subject to the expiration and renewal requirements of subrule 18.4(6)18.4(8) and rule 187—18.5(17A,535B). If compliant with the aforementioned expiration and renewal requirements, the temporary individual registration issued pursuant to this subrule is valid until such time as the individual registration is issued, the temporary individual registration is renewed, or the temporary individual registration expires or is revoked. The administrator may revoke the temporary individual registration at any time prior to issuing an individual registration if the results of the national criminal history check reveal information that would be grounds for the administrator to deny an application for an individual registration or if an applicant fails to resubmit to the national criminal history check within 30 days of notice from the administrator to do so.    18.4(8)   A provision of 2005 Iowa Acts, chapter 83, section 6, requires an individual registrant to submit to a state criminal background check before being registered for the first time. 2006 Iowa Acts, Senate File 2353, section 17, amends that provision to require that an individual registrant submit to a national criminal history check through the Federal Bureau of Investigation prior to being registered. 2005 Iowa Acts, chapter 83, section 6, as amended by 2006 Iowa Acts, Senate File 2353, is effective July 1, 2006. As a result of the timing of the effective date of the Act, the forms necessary to obtain a national criminal history check through the Federal Bureau of Investigation were not available to some applicants for individual registrations at the time the applicants initially applied for individual registrations. To address these timing considerations, the administrator may issue a temporary individual registration for a period ending on June 30, 2007, to an applicant who filed an application with the administrator before the forms necessary to obtain a national criminal history check through the Federal Bureau of Investigation were available, provided that the applicant submitted to a state criminal background check. An applicant who receives a temporary individual registration pursuant to this subrule must submit to a national criminal history check as soon as the forms become available. The administrator may revoke a temporary individual registration issued under this subrule at any time prior to issuing an individual registration if the applicant fails to submit to the national criminal history check within 30 days of notice from the administrator to do so or the results of the national criminal history check reveal information that would be grounds for the administrator to deny an application for an individual registration.

    ITEM 5.    Amend rule 187—18.5(17A,535B) as follows:

187—18.5(17A,535B) Renewal of individual registration.      18.5(1)   The individual registration must be renewed before expiration. An individual who fails to renew an individual registration before expiration is not authorized to act as a mortgage banker or mortgage broker in Iowa after the expiration date.    18.5(2)   AnBefore December 1 of the year of expiration, an individual registration shall be renewed on forms provided by the administrator, andthrough the NMLS&R, with all requested information shall be provided as directed by the NMLS&R,on or with the registration form. An individual registration renewal must be filed with the administrator before June 1 of the year of expiration and must be accompanied by a fee of $50. The administrator may assess a late fee of $5 per day, not to exceed $100, for an individual registration renewal accepted for processing after June 1December 1.    18.5(3)   Forms for renewal of an individual registration may be obtained from the administrator’s office or will be available on the administrator’s Web site. Individual registrants may renew electronically or by submitting a written application. While the administrator generally mails renewal application forms or reminders to individual registrants before May 1 preceding expiration of individual registration, the failure of the administrator to mail an individual registration renewal form or the failure of an individual registrant to receive an individual registration renewal form shall not excuse the individual registrant from the requirement to timely renew.    18.(4) 18.5(3)   The administrator may reject an individual registration renewal if the registration renewal is not complete or all required fees, including late fees, are not remitted.    18.(5) 18.5(4)   The administrator shall grant an application to renew an individual registration if:    a.    The administrator receives the registration renewal by June 1December 1, accompanied by the $50 renewal fee, or the administrator receives the registration renewal after June 1December 1 but before July 1January 1 and it is accompanied by the $50 renewal fee and the appropriate late fee;    b.    The registration renewal is fully completed with all necessary information, including proper disclosure of completion of required continuing education; and    c.    The registration renewal does not reveal grounds to deny an individual registration.    18.(6) 18.5(5)   A registration renewal received by the administrator after June 30December 31 may, at the discretion of the administrator, be rejected for processing or may be treated as a new individual registration. An individual registrant who fails to renew before the expiration date is not authorized to act as a mortgage banker or mortgage broker in Iowa after the expiration date unless specific written permission is provided by the administrator.

    ITEM 6.    Amend subrule 18.6(4) as follows:    18.6(4)   An individual registrant in unattached status shall not be authorized to act as a mortgage banker or mortgage broker in Iowa unless the individual registrant is employed by, under contract with, or an exclusive agent of persons listed as exemptions pursuant to Iowa Code section 535B.2 as amended by 2005 Iowa Acts, chapter 83, section 4.

    ITEM 7.    Amend rule 187—18.8(17A,535B) as follows:

187—18.8(17A,535B) Changes in the licensee’s business; fees.      18.8(1)   No licensee or individual registrant shall conduct the residential mortgage lending activities authorized in Iowa Code chapter 535B as amended by 2006 Iowa Acts, Senate File 2353, section 16, under any name other than that stated on the license or individual registration certificate.    18.8(2)   A licensee shall notify the administrator of a change of name of the business in writing within ten days of the change. A filing fee of $25 shall accompany a notice of change of name, in addition to all other information required by the administrator.    18.8(3)   An individual registrant shall notify the administrator in writing within ten days of a change in the individual registrant’s name.    18.8(4)   A licensee shall notify the administrator in writing of a change in the location, the addition, or the closing of any office prior to the change, addition, or closure.    18.8(5)   A licensee shall maintain on file with the administrator, through the NMLS&R, a list of all individual registrants who are employed by, under contract with, or exclusive agents of the licensee. The licensee shall pay a change in sponsorship fee of $30 to add an individual registrant to the licensee’s list in the NMLS&R.    18.8(6)   When an individual registrant ceases to be employed by, under contract with, or an exclusive agent of a licensee, the licensee shall notify the administrator in writing, through the NMLS&R,within five business days. The notification shall include the reasons for the termination of the individual registrant’s employment, contract, or agency.    18.8(7)   A licensee shall notify the administrator in writing of the addition of any individual registrant, owner, officer, partner, or director within five business days of addition.    18.8(8)   Failure to notify the administrator within the prescribed time as required by this rule may subject the licensee or individual registrant to disciplinary action.

    ITEM 8.    Amend subrule 18.10(1) as follows:    18.10(1)   The continuing education year shall begin on the first day of MayNovember each year and shall end on April 30October 31 the following year. Each person who is an individual registrant on December 31June 30 shall complete at least 12 hours of continuing education from May 1November 1 (preceding December 31June 30) to April 30October 31 (following December 31June 30). For example, a person who is an individual registrant on December 31, 2006June 30, 2009, shall complete at least 12 hours of continuing education from May 1, 2006, to April 30, 2007November 1, 2008, to October 31, 2009. Due to the change in the licensing year, a person who was an individual registrant on June 30, 2008, has from May 1, 2007, to October 31, 2008, to complete at least 12 hours of continuing education.

    ITEM 9.    Amend 187—Chapter 18, as follows:       Rules 187—18.1(17A,535B) to 187—18.20(17A,535B) are intended to implement Iowa Code chapter 535B as amended by 2005 Iowa Acts, chapter 83, and 2006 Iowa Acts, Senate File 2353.

    ITEM 10.    Adopt the following new rule 187—18.23(82GA,SF2428):

187—18.23(82GA,SF2428) Nonpayment of state debt.  The administrator shall deny the issuance or renewal of an individual registration upon the receipt of a certificate of noncompliance from the centralized collection unit of the department of revenue according to the procedures in 2008 Iowa Acts, Senate File 2428. In addition to the procedures set forth in 2008 Iowa Acts, Senate File 2428, this rule shall apply.    18.23(1)   The notice required by 2008 Iowa Acts, Senate File 2428, section 14, shall be served on the individual registrant or applicant by restricted certified mail, return receipt requested, or personal service in accordance with the Iowa Rules of Civil Procedure. Alternatively, the individual registrant or applicant may accept service personally or through authorized counsel.    18.23(2)   The effective date of the denial of issuance or renewal of a license, as specified in the notice required by 2008 Iowa Acts, Senate File 2428, section 14, shall be 60 days following service of the notice upon the individual registrant or applicant.    18.23(3)   The administrator is authorized to prepare and serve the notice required by 2008 Iowa Acts, Senate File 2428, section 14, upon the individual registrant or applicant.    18.23(4)    Individual registrants and applicants shall keep the administrator informed of all court actions and all centralized collection unit actions taken under or in connection with 2008 Iowa Acts, Senate File 2428, and shall provide the administrator copies, within seven days of filing or issuance, of all applications filed with the district court pursuant to 2008 Iowa Acts, Senate File 2428, section 15, all court orders entered in such actions, and withdrawals of certificates of noncompliance by the centralized collection unit.    18.23(5)   All fees for applications, individual registration renewals or reinstatements must be paid by individual registrants or applicants, and all continuing education requirements must be met before an individual registration will be issued, renewed or reinstated after the administrator has denied the issuance or renewal of an individual registration pursuant to 2008 Iowa Acts, Senate File 2428.       This rule is intended to implement 2008 Iowa Acts, Senate File 2428.
ARC 7184BCorrections Department[201]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 904.108, the Iowa Department of Corrections hereby gives Notice of Intended Action to amend Chapter 20, “Institutions and Administration,” Iowa Administrative Code.     The Department proposes these amendments to reflect changes in the Department’s policy numbers as well as to add, delete, and modify definitions and language used throughout the chapter. The amendments add an additional means for sending money to an offender’s account and update the name of the fund account. The amendment in Item 4 clarifies how confidential mail is to be handled. The amendments to rule 201—20.6(904) clarify the types of publications included in the term “publications,” how publications will be handled, and the authorized reasons for denying a publication. Rule 201—20.10(904), which pertains to incarceration fees, is being rescinded. Incarceration fees are addressed in the Department's internal policies. The amendments also replace the word “inmate” with the word “offender” to be consistent throughout the chapter.    Any interested person may make written comments on the proposed amendments on or before October 14, 2008. Written comments may be sent to Michael Savala, Iowa Department of Corrections, 510 E. 12th Street, Des Moines, Iowa 50319. Comments may also be submitted electronically to Michael.Savala@iowa.gov or via facsimile to (515)725-5799.     A public hearing will be held at the office of the Iowa Department of Corrections from 11 a.m. to 1 p.m. on October 14, 2008. The Department is located at 510 E. 12th Street, Des Moines, Iowa. At the hearing, individuals will be asked to give their names and addresses for the record and to confine their remarks to the subject of the amendments. Any individuals who will attend the public hearing and need special accommodations, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs.    These amendments are intended to implement Iowa Code section 904.108.    The following amendments are proposed.

    ITEM 1.    Amend rule 201—20.2(904), as follows:        "Class I Disciplinary Report" means the same as a major report and is defined in department policy IN-V-36IO-RD-01.        "Class II Disciplinary Report" means the same as a minor report and is defined in department policy IN-V-36IO-RD-01.        "Contraband" means weapons,; alcohol,; drugs,; money,; obscene materials,; or materials advocating disruption of or injury to offenders, employees, programs, or physical facilities. It “Contraband” shall also include anything which is illegal to possess under federal or state law,; anything which is against institutional regulations,; drugs or alcohol or materials which are used in the production or use of drugs or alcohol or weapons, explosives, or potential weapons and explosives; and altered authorized property. The term also includes possession or use of any prohibited communication device.

    ITEM 2.    Amend subrule 20.3(16) as follows:    20.3(16) Money orders,and cashier’s checks, and electronic funds transfers.  Money orders and cashier’s checks for deposit in the offender’s account must be made payable to the Iowa Department of Corrections Central BankOffender Fiduciary Account (IDOC OFA) and sent to: Fort Dodge Correctional Facility, 1550 L Street, Suite B, Fort Dodge, Iowa 50501, and must include the offender’s name and ID number and the sender’s name and complete address. Funds will also be accepted via electronic funds transfers from authorized vendors. Personal checks and cash will not be accepted. SuspectedAn offender's suspected abuse of requests for money requests from the public by an offender may be cause for limits or restrictions on the amounts of money which can be received and from whom money can be received.

    ITEM 3.    Strike the word “inmate” and its plural and possessive forms and insert the word “offender” and its plural and possessive forms in lieu thereof in rule 201—20.4(904).

    ITEM 4.    Amend paragraph 20.4(2)"b" as follows:    b.    Confidential mail will be delivered unopened and then, in the presence of the offender, will be opened and inspected for contraband and to ensure that the contents are from the return addressee, only in the presence of the inmate.Confidential mail may be read only after a finding of probable cause by a court of competent jurisdiction that a threat to the order and security of the institution or abuse of correspondence exists.

    ITEM 5.    Amend paragraph 20.4(3)"g" as follows:    g.    Inmates/offenders Offenders under correctional supervision or detention will not be allowed to correspond with other inmates/offenders offenders unless the individuals are immediate family and approved by the authority of the institution or both authorities in the case of correspondence between facilities.“Immediate family” means mother, father, sister, brother, half sister, half brother, spouse, son, daughter, natural grandparents, and natural grandchildren. Legal guardian, foster parents, stepparents, stepchildren, stepsister, and stepbrother will be included provided a positive relationship exists or contact will confer a benefit to the inmate.

    ITEM 6.    Amend paragraph 20.4(3)"v" as follows:    v.    An individual may deposit funds in an inmate’soffender's account by sending only bank drafts or money orders payable to (warden or superintendent’s name) for (inmate’s name). Identification of the sender and a cover letter shall accompany the bank draft or money order. These funds may be enclosed with a letter to the inmate but shall not be enclosed with a package.by money order, cashier’s check, or electronic funds transfer. Personal checks and cash will not be accepted. Only money orders and cashier’s checks will be accepted for deposit into an offender’s account by mail. Money orders and cashier’s checks must be made payable to the Iowa Department of Corrections Offender Fiduciary Account (IDOC OFA) and sent to: Fort Dodge Correctional Facility, 1550 L Street, Suite B, Fort Dodge, Iowa 50501, and must include the offender’s name and ID number and the sender’s name and complete address. Funds will also be accepted via electronic funds transfers from authorized vendors. An offender's suspected abuse of requests for money from the public may be cause for limits or restrictions on the amounts of money which can be received and from whom money can be received.

    ITEM 7.    Amend rule 201—20.5(904) as follows:

201—20.5(904) Money orders, and cashier’s checks, and electronic funds transfers for offenders.  Money Only money orders and cashier’s checks only will be accepted for deposit into an offender’s account by mail. Personal checks and cash will not be accepted. Money orders and cashier’s checks must be made payable to the Iowa Department of Corrections Central Bank Offender Fiduciary Account (IDOC OFA) and sent to: Fort Dodge Correctional Facility, 1550 L Street, Suite B, Fort Dodge, Iowa 50501, and must include the offender’s name and ID number and the sender’s name and complete address. Personal checks and cash will not be accepted. Funds will also be accepted via electronic funds transfers from authorized vendors. Suspected An offender's suspected abuse of requests for money requests from the public by an offender may be cause for limits or restrictions on the amounts of money which can be received and from whom money can be received.

    ITEM 8.    Amend rule 201—20.6(904) as follows:

201—20.6(904) Publications.      20.6(1)   The institution shall allow inmates offenders access to publications when doing so is consistent with institutional goals of maintaining internal order, safety, security, and rehabilitation.    20.(1) 20.6(2)   Publications include periodicals, newspapers, books, and other printed matter any periodical, newspaper, book, pamphlet, magazine, newsletter, or similar material published by any individual, organization, company, or corporation, and made available for a commercial purpose. All publications shall be unused and sent directly from a reputable publishing firm an approved publisher or bookstore which does mail order business. Any exceptions must be authorized by the warden or superintendent. No publication will be denied approval solely on the basis of its appeal to a particular ethnic, racial, religious, or political group. The quantity of printed materials, as with other personal property, will be controlled for safety and security reasons.    20.(2) 20.6(3)   All publications not on the approved list shall be reviewed by a publication review committee for approval, or denial, or control of the publication.    a.    The committee shall be appointed by the director or designee, department of corrections, and shall include a person with broad exposure to various publications, and two representatives of correctional institutions operations.    b.    The committee shall fairly review all types of publications to be received by inmates offenders in accordance with these rules.    20.(3) 20.6(4)   The following procedures shall be used when reviewing a publication not on the approved list is reviewed:    a.    The committee shall approve, or deny, or control publications within 15 30 working days of receipt of the publication.    b.    When a publication is denied or controlled, the committee shall send the offender a written notice to the inmate, stating the publication involved, the reason for denial or control, and the inmate’s offender's available appeal process.    c.    The inmate offender shall have five days from receipt of the notice of denial or control to notify the designated institution staff to destroy the publication, to specify where to send the material publication at the inmate’s offender's expense, or to notify the institution that the decision is being appealed.    d.    A list of approved publications shall be maintained.    20.(4) 20.6(5)   A publication may be denied when the publication presents a danger to the security or order of an institution or is detrimental to the inconsistent with rehabilitation of the inmate goals. Authorized reasons for denying a publication are that the publication:    a.    Is likely to be disruptive or produce violence.    b.    Contains material which portrays or simulates a minor (any person 17 years of age or younger) engaged in or simulating any of the following: act that is sexual in nature.    (1)   An act which involves sexual contact between two or more persons by penetration of penis into the vagina or anus, by contact between the mouth and the genitalia or by contact between the genitalia of one person and the genitalia or anus of another person, or by the use of artificial sexual organs or substitutes therefor in contact with the genitalia or anus.    (2)   An act of bestiality involving a minor.    (3)   Fondling or touching the pubes or genitals of the minor.    (4)   Fondling or touching the pubes or genitals of a person by a minor.    (5)   Sadomasochistic abuse of a minor for the purpose of arousing or satisfying sexual desires of the person who may view a depiction of the abuse.    (6)   Sadomasochistic abuse of a person by a minor for the purpose of arousing or satisfying the sexual desires of the person who may view a portrayal of the abuse.    (7)   Nudity of a minor for the purpose of arousing or satisfying the sexual desires of a person who may view a portrayal of the nude minor.    c.    Contains material portraying bestiality, sadomasochism, or excretory functions or lewd exhibition of the genitals hard-core pornography depicting patently offensive representations of oral, anal, or vaginal intercourse, actual or simulated, involving humans, or depicting patently offensive representations of masturbation, excretory functions, or bestiality, or lewd exhibition of the genitals, which the average adult taking the material as a whole in applying statewide contemporary community standards would find appeals to the prurient interest; and which material, taken as a whole, lacks serious literary, scientific, political, or artistic value as prohibited by Iowa Code section 728.1(2) 728.4.    d.    Contains information relating to escapes or formulating escape plans.    e.    Contains information relating to provoking a riot or disturbance.    f.    Contains information relating to obtaining an emotional or behavioral state comparable to those produced by a controlled substance, by using aerosols, glue, or other chemical materials.    g.    Contains materials which illustrate, explain, describe, or teach martial arts, or other manufacture of weapons or explosives, or advocate behavior contrary to duly established institution rules or Iowa statutes. Contains materials which illustrate, explain, describe, or teach ability to frustrate crowd or riot control methods. Contains materials which illustrate, explain, describe, or teach ability to sabotage or disrupt communications networks, including a prison’s internal and external communications and automated information systems.    h.    Contains information concerning criminal activities.    i.    Contains encoded material. This shall not automatically include foreign language publications not otherwise prohibited in these rules.    j.    May violate postal regulations, such as threats, blackmail, contraband, or similar violations.    20.(5) 20.6(6)   Portrayal or simulation of fellatio, cunnilingus, masturbation, ejaculation, sexual intercourse, male erection, bestiality, sadomasochism, excretory functions, lewd exhibition of genitals, or other sexually explicit materials will be denied to those inmates offenders when the material is detrimental to the inconsistent with rehabilitation of an individual inmate, based on psychological/psychiatric recommendation goals.    20.(6) 20.6(7)   Publications which contain material portraying or simulating fellatio, cunnilingus, masturbation, ejaculation, sexual intercourse or male erection and are not prohibited by 20.6(4)“b,” 20.6(4)“c,” or 20.6(5) above approved or denied by the review committee will be controlled for the security and order of the institution and to assist in enabling its control from those inmates offenders denied access by 20.6(5) 20.6(6) above. Institutional procedures shall be established for the inmate offender to reserve time in a designated controlled area and obtain the material controlled publication for reading during specified times. The controlled publication will be secured until the inmate offender makes arrangements for further review of the material controlled publication. An inmate offender may have secured no more than ten publications at any given time, none of which are over three months old from publication date or receipt, and any that are in excess of the ten limit or over three months old must be sent out of the institution at the inmate’s offender's expense, or destroyed, or taken with the inmate offender upon release.    20.(7) 20.6(8)   An inmate offender may appeal the committee’s decision or the denial of a publication for treatment reasons because the publication is inconsistent with rehabilitation goals within ten days of receipt of the decision by filing a written objections appeal and sending it to the Director, Administrator, Division of Investigative Services, Department of Corrections, Capitol Annex Building, 523 510 East 12th Street, Des Moines, Iowa 50319. The director’s administrator's decision shall be final.

    ITEM 9.    Amend subrule 20.7(1) as follows:    20.7(1)   When inmates offenders are selected to be interviewed and photographed within the institution, either singly individually or as part of a group, identifiable interviews or pictures shall have the written consent of the inmate offender involved as well as prior consent of the warden, superintendent, or designee.

    ITEM 10.    Amend subrule 20.8(2) as follows:    20.8(2)   Persons under 18 years of age may only visit with prior approval of the warden, superintendent, or designee, and shall be accompanied by a responsible adult. An adult shall be in charge of no more than four children. Persons under 18 years of age shall not be allowed to make institutional visits to maximum security prisons.

    ITEM 11.    Amend subrule 20.8(4) as follows:    20.8(4)   Guests shall be allowed personal contact with an inmate offender only when it serves the best interests of the inmate offender as determined by the warden, superintendent, or designee.

    ITEM 12.    Amend rule 201—20.9(904) as follows:

201—20.9(904) Donations.  Donations of money, books, games, recreation equipment or other such gifts shall be made directly to the warden or superintendent. The warden or superintendent shall evaluate the donation in terms of the nature of the contribution to the institution program. The warden or superintendent is responsible for accepting the donation and reporting the gift to the director, division of adult corrections regional deputy director on a monthly basis.

    ITEM 13.    Rescind and reserve rule 201—20.10(904).

    ITEM 14.    Amend rule 201—20.11(904,910) as follows:

201—20.11(904,910) Restitution.      20.11(1)   Every inmate offender required by a court order to pay restitution shall have a restitution plan and a restitution plan of payment developed, unless a court-ordered restitution plan has been completed.    20.11(2)   The restitution plan of payment shall consider the present circumstances of an inmate’s offender's physical/mental health and other legal financial obligations.    20.11(3)   The deputy director of institutions shall ensure that there are written procedures governing the development and modification of each restitution plan and plan of payment.    20.11(4)   The warden/superintendent or designee shall approve each restitution plan or modified plan and send a copy to the clerk of court. Each offender shall be given a Predeprivation Notice: Notice of Intent to Deduct Restitution From All Account Credits and Notice of Opportunity to Respond during initial reception following admission to the Iowa medical and classification center (IMCC).    20.11(5)   Initial inmate offender complaints regarding restitution plans of payment or modifications may be addressed via the inmate offender grievance procedure.    20.11(6)   The staff shall explain the restitution plan and plan of payment to the inmate offender. Each inmate offender shall receive a copy of the restitution plan and plan of payment.    20.11(7)   Restitution payments shall be deducted from all credits to an inmate’s offender's account. Up to 50 percent may be deducted. The following are exempt for deductions from credits to an inmate’s offender's account from an outside source:    a.    An amount, assessed by the warden/superintendent or designee, specifically for medical costs. The same percent as established in the restitution plan will be deducted from any amount over the total amount assessed. If the medical procedures are not performed or carried out, the money shall be returned to the sender at the inmate’s offender's expense.    b.    An amount, assessed by the warden/superintendent or designee, specifically for the cost of a funeral trip. The same percent as established in the restitution plan will be deducted from any amount over the total amount assessed.    c.    An amount as assessed by the appropriate authority specifically for transportation fees as a result of work release/OWI violations or compact transfers. The same percent as established in the restitution plan will be deducted from any amount over the total amount assessed.    d.    An account transfer from one institution to another.    e.    Refunds from outside vendors or institution commissaries.    f.    Property tort claims.    g.    Any other exception approved by the warden/superintendent or designee.    20.11(8)   Restitution deductions shall be forwarded to the clerk of court in the county of commitment on a quarterly basis.    20.11(9)   When the department of corrections has knowledge of other income or assets the district court clerk of the sentencing county shall be so notified.    20.11(10)   A percent greater than that established in the restitution plan of payment may be deducted from a credit to an inmate’s offender's account by authorization of either the inmate offender, the warden/superintendent or designee, or by court order.    20.11(11)   The restitution plan of payment may be modified through each level of commitment. (This includes preinstitutional services and postinstitutional services.)       This rule is intended to implement Iowa Code chapter 904 and sections 910.2, 910.3 and 910.5.

    ITEM 15.    Rescind rule 201—20.12(904) and adopt the following new rule in lieu thereof:

201—20.12(904) Furloughs.      20.12(1)   Furloughs are a privilege, not a right, and may be denied or canceled at any time for reasons deemed sufficient by the warden/superintendent. Reasons for denial or cancellation shall be given to the offender.    20.12(2)   Emergency family furlough shall be considered in the event of a death or imminent death in the immediate family.    20.12(3)   Emergency medical furlough is for those offenders whose medical condition has deteriorated to the point of incapacitation or to a comatose state.    20.12(4)   Both emergency family furloughs and emergency medical furloughs shall have approval of the warden/superintendent and the respective regional deputy director.    20.12(5)   Furloughs are additionally governed by the provisions of the department’s furlough policy IS-RL-04.

    ITEM 16.    Strike the word “inmate” and its plural and possessive forms and insert the word “offender” and its plural and possessive forms in lieu thereof in rules 201—20.13(904)201—20.15(910A)201—20.17(904).

    ITEM 17.    Amend paragraph 20.17(4)"c" as follows:    c.    InmatesOffenders must be furlough-eligible in accordance with furlough eligibility standards in DOC policy IN-V-44IS-RL-04 and administrative rule 20.12(904).

    ITEM 18.    Amend rule 201—20.18(904), as follows:

201—20.18(904) Violator/shock probation programs.  The department of corrections provides violator/shock probation programs at three institutions: 30 beds for females at the Iowa correctional institution for women (ICIW) at Mitchellville, 80 70 beds for males at the correctional release center (CRC) at Newton, and up to 150 beds for male youthful offenders in the RIVERS program at the Fort Dodge correctional facility (FDCF) 58 beds for males at Luster Heights (ASP) at Harpers Ferry. These programs provide up to a six-month intensive intervention for probation, parole, and work release offenders that have violated conditions of supervision and would otherwise have been returned to or sent to prison. Additionally, offenders sentenced to the custody of the department of corrections that have been identified as potential shock probation candidates are eligible for program participation.

    ITEM 19.    Rescind the in subrule 20.18(2).

    ITEM 20.    Amend paragraph 20.18(8)"e" as follows:    e.    Rule 20.5(904)—Money orders/, cashier’s checks, and electronic funds transfers for offenders. Money orders/, cashier’s checks, and electronic funds transfers for offenders are allowed but will be subject to a restitution plan, child support orders, fines, court costs and fees.

    ITEM 21.    Amend paragraph 20.18(8)"k" as follows:    k.    Rule 20.12(904)—Furloughs. This rule will only apply in family emergency situations in accordance with 20.12(5)“a” and 20.12(6)“a,”20.12(2) although the criteria for eligibility are waived, and these furloughs will only be granted at the discretion of the warden/superintendent or designee with approval of the regional deputy director.
ARC 7181BEthics and Campaign Disclosure Board, Iowa[351]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 68B.32A, the Iowa Ethics and Campaign Disclosure Board hereby gives Notice of Intended Action to amend Chapter 4, “Campaign Disclosure Procedures,” Iowa Administrative Code.    Iowa Code Supplement section 68A.201 requires campaign committees to appoint certain officers. Some committees appoint officers that are not required under the statute. The proposed amendment clarifies that a committee is only required to disclose on the statement of organization registering the committee with the Board those officers who are required by statute to be appointed.    The proposed amendment does not contain a waiver provision as no obligation is being imposed on the regulated community.    Any interested person may make written comments on the proposed amendment on or before October 14, 2008. Comments should be directed to Charlie Smithson, Iowa Ethics and Campaign Disclosure Board, 510 E. 12th Street, Suite 1A, Des Moines, Iowa 50319. Persons who wish to comment orally should contact Charlie Smithson at (515)281-3489.    This amendment is intended to implement Iowa Code Supplement section 68A.201.    The following amendment is proposed.

    ITEM 1.    Amend subrule 4.4(1) as follows:    4.4(1) Committee officers.  The committee shall disclose on the statement of organization the name, mailing address, telephone number, and office of each committee officer whom the committee is required by statute to appoint. Each candidate’s committee shall appoint a treasurer who shall be an Iowa resident and at least 18 years of age. A candidate’s committee may also appoint a committee chairperson who is not limited by residency or age. Every other committee shall appoint a separate treasurer and chairperson, each of whom shall be at least 18 years of age. The committee may appoint other officers not required by statute without restriction on residency or age, and the committee is not required to disclose these officers. Except for a candidate’s committee, every committee shall either have an Iowa resident as treasurer or shall maintain all of the committee’s funds in bank accounts in a financial institution in Iowa.
ARC 7188BEthics and Campaign Disclosure Board, Iowa[351]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 68B.32A, the Iowa Ethics and Campaign Disclosure Board hereby gives Notice of Intended Action to amend Chapter 4, “Campaign Disclosure Procedures,” Iowa Administrative Code.    The proposed amendment clarifies that a candidate registering a committee by filing a Statement of Organization for one office who then files an amended Statement of Organization for another office must continue to file campaign disclosure reports regardless of whether the candidate has exceeded $750 in campaign activities for the new office sought.    The proposed amendment does not contain a waiver provision as the requirement to file campaign disclosure reports is mandated by statute.    Any interested person may make written comments on the proposed amendment on or before October 14, 2008. Comments should be directed to Charlie Smithson, Iowa Ethics and Campaign Disclosure Board, 510 E. 12th Street, Suite 1A, Des Moines, Iowa 50319. Persons who wish to comment orally should contact Charlie Smithson at (515)281-3489.    This amendment is intended to implement Iowa Code Supplement section 68A.201.    The following amendment is proposed.

    ITEM 1.    Amend subrule 4.6(2) as follows:    4.6(2) New office sought.  A candidate who filed a statement of organization for one office but eventually seeks another office may file an amended statement of organization to reflect the change in office sought in lieu of dissolving the old committee and organizing a new committee. A candidate filing an amended statement of organization for a new office shall continue to file the required campaign reports regardless of whether the $750 financial filing threshold for the new office has been exceeded. A candidate who has filed a statement of organization for one office and who then exceeds the financial activity threshold as set forth in Iowa Code section 68A.102(5) for a new office shall, within ten days of exceeding the threshold, file either an amended statement of organization disclosing information for the new office sought or organize and register a new committee.
ARC 7185BEthics and Campaign Disclosure Board, Iowa[351]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 68B.32A, the Iowa Ethics and Campaign Disclosure Board hereby gives Notice of Intended Action to amend Chapter 4, “Campaign Disclosure Procedures,” Iowa Administrative Code.    A federal or out-of-state political committee that makes a contribution to an Iowa committee is required to file a Verified Statement of Registration (VSR) with each contribution in excess of $50. The proposed amendments reflect that a VSR filed electronically via the Board’s Web site is deemed signed when electronically filed.    The proposed amendments do not contain a waiver provision as no obligation is being imposed on the regulated community.    Any interested person may make written comments on the proposed amendments on or before October 14, 2008. Comments should be directed to Charlie Smithson, Iowa Ethics and Campaign Disclosure Board, 510 E. 12th Street, Suite 1A, Des Moines, Iowa 50319. Persons who wish to comment orally should contact Charlie Smithson at (515)281-3489.    These amendments are intended to implement Iowa Code Supplement section 68A.201(5).    The following amendments are proposed.

    ITEM 1.    Amend paragraph 4.32(2)"h" as follows:    h.    An attested statement that the jurisdiction with which the out-of-state committee is registered has reporting requirements substantially similar to those of Iowa Code Supplement chapter 68A. The statement shall include confirmation that the contribution is made from an account that does not accept contributions prohibited by Iowa Code Supplement section 68A.503 as amended by 2007 Iowa Acts, Senate File 42, section 2, unless the contribution from the out-of-state committee is made to an Iowa ballot issue committee.

    ITEM 2.    Amend subrule 4.32(3) as follows:    4.32(3) Signature.  The VSR shall be signed by the individual filing the VSR on behalf of the out-of-state committee. A VSR that is filed electronically using the board’s Web site is deemed signed when filed.

    ITEM 3.    Amend rule 351—4.32(68A), as follows:       This rule is intended to implement Iowa Code Supplement section 68A.201(5) as amended by 2007 Iowa Acts, Senate File 39, section 3.
ARC 7189BEthics and Campaign Disclosure Board, Iowa[351]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 68B.32A, the Iowa Ethics and Campaign Disclosure Board hereby gives Notice of Intended Action to amend Chapter 4, “Campaign Disclosure Procedures,” Iowa Administrative Code.    The proposed amendment establishes the procedure by which reports filed with the Internal Revenue Service by a 527 Committee that engages in issue advocacy in Iowa are posted on the Board’s Web site.    The proposed amendment does not contain a waiver provision as the requirement is mandated by statute and the obligation that would be imposed is the least possibly restrictive imposition on the regulated community.    Any interested person may make written comments on the proposed amendment on or before October 14, 2008. Comments should be directed to Charlie Smithson, Iowa Ethics and Campaign Disclosure Board, 510 E. 12th Street, Suite 1A, Des Moines, Iowa 50319. Persons who wish to comment orally should contact Charlie Smithson at (515)281-3489.    This amendment is intended to implement 2008 Iowa Acts, House File 2700, section 37.    The following amendment is proposed.

    ITEM 1.    Adopt the following new rule 351—4.34(82GA,HF2700):

351—4.34(82GA,HF2700) Copies of reports filed by 527 Committees.  2008 Iowa Acts, House File 2700, section 37, requires the board to adopt a procedure for 527 Committees that file reports with the Internal Revenue Service and engage in issue advocacy in Iowa to file copies of those reports with the board. If a 527 Committee notifies the board that it is filing reports with the Internal Revenue Service, the 527 Committee will be deemed in compliance with 2008 Iowa Acts, House File 2700, section 37. The board will then establish on its Web site a link to the reports filed with the Internal Revenue Service, or the board will otherwise post on its Web site the reports filed with the Internal Revenue Service.This rule is intended to implement 2008 Iowa Acts, House File 2700, section 37.
ARC 7186BEthics and Campaign Disclosure Board, Iowa[351]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 68B.32A, the Iowa Ethics and Campaign Disclosure Board hereby gives Notice of Intended Action to amend Chapter 4, “Campaign Disclosure Procedures,” Iowa Administrative Code.    A permanent organization that makes a contribution in excess of $750 to an Iowa committee is required to file Form DR-OTC with the Board. The proposed amendments reflect that Form DR-OTC may now be filed electronically via the Board’s Web site.    The proposed amendments do not contain a waiver provision as no obligation is being imposed on the regulated community.    Any interested person may make written comments on the proposed amendments on or before October 14, 2008. Comments should be directed to Charlie Smithson, Iowa Ethics and Campaign Disclosure Board, 510 E. 12th Street, Suite 1A, Des Moines, Iowa 50319. Persons who wish to comment orally should contact Charlie Smithson at (515)281-3489.    These amendments are intended to implement Iowa Code Supplement sections 68A.102(18) and 68A.402.    The following amendments are proposed.

    ITEM 1.    Amend paragraph 4.35(1)"f" as follows:    f.    The signature and date of the individualdate and signature of the person filing Form DR-OTC. A Form DR-OTC that is filed electronically using the board’s Web site is deemed signed when filed.

    ITEM 2.    Amend subrule 4.35(2) as follows:    4.35(2) Place of filing.  Form DR-OTC shall be filed with the board at 510 East 12th Street, Suite 1A, Des Moines, Iowa 50319, or filed by fax at (515)281-3701 (515)281-4073, or filed electronically using the board’s Web site at www.iowa.gov/ethics.

    ITEM 3.    Amend subrule 4.35(3) as follows:    4.35(3) Time of filing.  Form DR-OTC shall be filed with the board within ten days after the one-time contribution in excess of $750 is made. The form must be physically received by the board or, if mailed, must bear a United States Postal Service postmark dated on or before the report due date. A faxed or electronically filed Form DR-OTC must be submitted on or before 11:59 p.m. of the tenth day after the organization of the committee is required. If the tenth day falls on a Saturday, Sunday, or holiday on which the board office is closed, the filing deadline is extended to the next working day when the board office is open.
ARC 7187BEthics and Campaign Disclosure Board, Iowa[351]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 68B.32A, the Iowa Ethics and Campaign Disclosure Board hereby gives Notice of Intended Action to amend Chapter 7, “Personal Financial Disclosure,” Iowa Administrative Code.    Certain officials and employees of the executive branch and candidates for statewide office are required to file Form PFD with the Board. The proposed amendments reflect that Form PFD may now be filed electronically via the Board’s Web site.     The proposed amendments do not contain a waiver provision as no obligation is being imposed on the regulated community.    Any interested person may make written comments on the proposed amendments on or before October 14, 2008. Comments should be directed to Charlie Smithson, Iowa Ethics and Campaign Disclosure Board, 510 E. 12th Street, Suite 1A, Des Moines, Iowa 50319. Persons who wish to comment orally should contact Charlie Smithson at (515)281-3489.    These amendments are intended to implement Iowa Code Supplement section 68B.32A(4) and Iowa Code sections 68B.35 and 68B.35A.    The following amendments are proposed.

    ITEM 1.    Amend subrule 7.1(2) as follows:    7.1(2) Place of filing.  Form PFD shall be filed with the board at 510 East 12th Street, Suite 1A, Des Moines, Iowa 50319. The form may also be filed by fax at (515)281-3701(515)281-4073 or electronically using the board’s Web site at www.iowa.gov/ethics.

    ITEM 2.    Amend subrule 7.1(4) as follows:    7.1(4) Physical receipt.  The board must physically receive a filed Form PFD on or before April 30 of each year. If mailed, the form must bear a United States Postal Service postmark dated on or before April 30. Faxed or electronically filed forms must be submitted on or before 11:59 p.m. on the required due date. If the due date falls on a weekend or holiday, the filing deadline shall be extended to the first working day following the deadline.

    ITEM 3.    Amend subrule 7.3(5) as follows:    7.3(5) Distribution of forms.  The board shall provide each agency with blank forms for distribution to the designated persons and shall make blank forms available via the board’s Web site at www.iowa.gov/ethics. The board shall provide each agency with the link on the board’s Web site where forms may be filed electronically. The board shall also make blank forms available via the board’s Web site.
ARC 7208BHuman Services Department[441]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 249A.4, the Department of Human Services proposes to amend Chapter 75, “Conditions of Eligibility,” Iowa Administrative Code.    The proposed amendment expands Medicaid coverage to children with disabilities who have family income or resources that are too high for eligibility for SSI-related Medicaid. This expansion takes advantage of the opportunity offered by the Family Opportunity Act, Section 6062 of the Deficit Reduction Act of 2005, Public Law 106-170. The Iowa General Assembly authorized this expansion in 2007 Iowa Acts, chapter 218, section 124, and 2008 Iowa Acts, House File 2539, section 55. The Department estimates that about 200 Iowa children may qualify for this coverage.    This amendment does not provide for waiver in specified situations because the amendment confers a benefit and because federal requirements do not allow for waiver of the eligibility requirements. The Department has a general rule at 441—1.8(17A,217) on procedures for requesting an exception to policy when members feel they have special situations that need to be evaluated on an individual basis.    Any interested person may make written comments on the proposed amendment on or before October 15, 2008. Comments should be directed to Mary Ellen Imlau, Bureau of Policy Analysis and Appeals, Department of Human Services, Hoover State Office Building, 1305 East Walnut Street, Des Moines, Iowa 50319-0114. Comments may be sent by fax to (515)281-4980 or by E-mail to policyanalysis@dhs.state.ia.us.    This amendment is intended to implement Iowa Code section 249A.3 as amended by 2007 Iowa Acts, chapter 218, section 124.    The following amendment is proposed.

    ITEM 1.    Adopt the following new subrule 75.1(43):    75.1(43) Medicaid for children with disabilities.  Medical assistance shall be available to children who meet all of the following conditions on or after January 1, 2009:    a.    The child is under 19 years of age.    b.    The child is disabled as determined pursuant to rule 441—75.20(249A) based on the disability standards for children used for Supplemental Security Income (SSI) benefits under Title XVI of the Social Security Act, but without regard to any income or asset eligibility requirements of the SSI program.     c.    The child is enrolled in any group health plan available through the employer of a parent living in the same household as the child if the employer contributes at least 50 percent of the total cost of annual premiums for that coverage. The parent shall enroll the child and pay any employee premium required to maintain coverage for the child.    d.    The child’s household has income at or below 300 percent of the federal poverty level applicable to a family of that size.    (1)   For this purpose, the child’s household shall include any of the following persons who are living with the child and are not receiving Medicaid on another case:
  1. The child’s parents.
  2. The child’s siblings under the age of 19.
  3. The child’s spouse.
  4. The child’s children.
  5. The children of the child's spouse.
    (2)   Only those persons identified in subparagraph (1) shall be considered a member of the child’s household. A child who lives alone or with persons not identified in subparagraph (1) shall be considered as having a household of one.    (3)   For this purpose, income shall include all earned and unearned income as defined for purposes of the Supplemental Security Income program by 20 CFR Sections 416.1102, 416.1103, 416.1110, 16.1111, and 416.1120 to 416.1123 as amended to August 20, 2008, without regard to exclusions or deductions from income applied in determining eligibility for Supplemental Security Income.     (4)   The federal poverty levels used to determine eligibility shall be revised annually on April 1 .
ARC 7206BHuman Services Department[441]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 249A.4, the Department of Human Services proposes to amend Chapter 77, “Conditions of Participation for Providers of Medical and Remedial Care,” and Chapter 78, “Amount, Duration and Scope of Medical and Remedial Services,” Iowa Administrative Code.    The proposed amendments modify the rules for provision of case management services in screening centers, maternal health centers, local education agencies, and infant and toddler (Early ACCESS) programs to comply with federal regulations on targeted case management published at 74 Fed. Reg. 68077-01. All state Medicaid programs are required to be in compliance.    The federal regulations standardize the definition of case management, require a comprehensive assessment and plan of care, limit Medicaid coverage of case management services to one case manager per member, and establish standards for freedom of choice of providers, monitoring, and service documentation.    These amendments remove the care coordination components from the service descriptions for the Early and Periodic Screening, Diagnosis, and Treatment Program (Care for Kids) as provided by physicians, screening centers, rural health clinics, maternal health centers, and federally qualified health centers. An interagency agreement will be implemented between the Iowa Departments of Public Health and Human Services to replace these services. There will be increased costs for the administration by the Department of Public Health, but significantly less cost than if the additional case management activities required by federal regulation were provided by local maternal and child health centers funded under Title V of the Social Security Act.    The service description for infant and toddler programs, which serve infants and toddlers with disabilities from birth to 36 months of age, is modified to meet the federal requirements for targeted case management services. Services that are educational in nature and that are an integral part or an extension of direct services are excluded. Service requirements include assessment of the child’s needs, development of a plan of care, contact with the child and family, referral, monitoring, and record keeping.    Because, under the federal regulations, Medicaid will cover only one case manager, a family whose child is also eligible for case management for people with mental retardation, chronic mental illness, or developmental disabilities under 441—Chapter 90 must choose which case management provider the family will use. If the family chooses case management under Chapter 90, the Infant and Toddler Program cannot be paid for providing case management services. Similarly, a child living in a medical institution cannot receive any other case management services, since the institution is responsible for case management.    Changes are also proposed to clarify the policies on prenatal risk assessments and administration of vaccines. A second risk assessment is not required if the first assessment indicated a high-risk pregnancy. Medicaid will not reimburse a provider for the cost of a vaccine that is available under the federal Vaccines for Children administered by the Department of Public Health, but administration of vaccines is a covered service.    These amendments also make numerous technical changes to the rules affected by the federal regulations as well as other related rules to update terminology and meet formatting standards.    These amendments do not provide for waivers in specified situations because the federal regulations make no provision for waivers.    Any interested person may make written comments on the proposed amendments on or before October 15, 2008. Comments should be directed to Mary Ellen Imlau, Bureau of Policy Analysis and Appeals, Department of Human Services, Hoover State Office Building, 1305 East Walnut Street, Des Moines, Iowa 50319-0114. Comments may be sent by fax to (515)281-4980 or by E-mail to policyanalysis@dhs.state.ia.us.    These amendments are intended to implement Iowa Code section 249A.4.    The following amendments are proposed.

    ITEM 1.    Amend subrule 77.9(1), as follows:        "Assets" includes any listing that identifies Medicaid recipientsmembers to whom home health services were furnished by a participating or formerly participating home health agency.

    ITEM 2.    Amend rule 441—77.43(249A), as follows:

441—77.43(249A) Infant and toddler program providers.  A publicAn agency provider in good standing under the infants and toddlers with disabilities program administered by the department of education, the department of public health, the department of human services, and the Iowa Child Health Specialty Clinics pursuant to the interagency agreement between these agencies under Subchapter III of the federal Individuals with Disabilities Education Act (IDEA) is eligible to participate in the medical assistance program as a provider of infant and toddler program services under rule 441—78.49(249A) if the following additional requirements are met.agency:
  1. Is in good standing under the infants and toddlers with disabilities program administered by the department of education, the department of public health, the department of human services, and the Iowa Child Health Specialty Clinics pursuant to the interagency agreement between these agencies under Subchapter III of the federal Individuals with Disabilities Education Act (IDEA); and
  2. Meets the following additional requirements.

    ITEM 3.    Amend subrule 78.1(22) as follows:    78.1(22)   Risk assessmentsassessment. Risk assessmentsassessment, using Form 470-2942, Medicaid Prenatal Risk Assessment, shall be completed twiceat the initial visit during a Medicaid member’s pregnancy.     a.    If the risk assessment reflects a low-risk pregnancy, the assessment shall be completed again at approximately the twenty-eighth week of pregnancy.    b.    If the risk assessment reflects a high-risk pregnancy, referral shall be made for enhanced services. Enhanced services include care coordination, health education, social services, nutrition education, and a postpartum home visit. Additional reimbursement shall be provided for obstetrical services related to a high-risk pregnancy. (See description of enhanced services at subrule 78.25(3).)

    ITEM 4.    Rescind and reserve subrule 78.1(23).

    ITEM 5.    Amend subrule 78.16(1) as follows:    78.16(1)   Payment to a community mental health center will be approved for reasonable and necessary services provided to medical assistance recipientsmembers by a psychiatrist, psychologist, social worker or psychiatric nurse on the staff of the center under the following conditions:    a.    Services must be rendered under the supervision of a board-eligible or board-certified psychiatrist. All services must be performed under the supervision of a board-eligible or board-certified psychiatrist subject to the conditions set forth in 78.16(1)“b” with the following exceptions:    (1)   Services by staff psychiatrists, or    (2)   Services rendered by psychologists meeting the requirements of the National Register of Health Service Providers in Psychology, or    (3)   Services provided by a staff member, listed in this subrule, performing the preliminary diagnostic evaluation of medical assistance recipientsa member for voluntary admission to one of the state mental health institutes.    b.    Supervisory process.    (1)   Each patient shall have an initial evaluation completed which shall include at least one personal evaluation interview with a mental health professional, as defined under Iowa Code section 228.1. If the evaluation interview results indicate a need for an interview with a board-eligible or board-certified psychiatrist, then such referral shall be made. This must be accomplished before submission of the first claim for services rendered to that patient.    (2)   Ongoing review and assessment of patients’ treatment needs, treatment plans, and the appropriateness of services rendered shall be assured through the peer review process in effect for community mental health centers, as directed by 2002 Iowa Acts, chapter 1120, section 13.    (3)   Rescinded IAB 2/5/03, effective 2/1/03.    (4)   Rescinded IAB 2/5/03, effective 2/1/03.

    ITEM 6.    Amend rule 441—78.18(249A), as follows:

441—78.18(249A) Screening centers.  Payment will be approved for health screening as defined in 441—subrule 84.1(1) for individualsMedicaid members under 21 years of age who are eligible for medical assistance.

    ITEM 7.    Amend subrule 78.18(1) as follows:    78.18(1)   Vaccines available through the Vaccines for Children program under Section 1928 of the Social Security Act are not covered as screening center services. Screening centers whichthat wish to administer those vaccines which are available through the vaccines for children program to Medicaid recipientsmembers shall enroll in the vaccines for childrenVaccines for Children program. In lieu of payment, vaccines available throughand obtain the vaccines for children program shall be accessed from the department of public health for Medicaid recipients. Screening centers shall receive reimbursement for the administration of vaccines to Medicaid recipientsmembers.

    ITEM 8.    Rescind and reserve subrule 78.18(6).

    ITEM 9.    Rescind subrule 78.21(3).

    ITEM 10.    Amend subrules 78.21(1) and 78.21(2) as follows:    78 78.21 21(1) Utilization review.  Utilization review shall be conducted of Medicaid recipientsmembers who access more than 24 outpatient visits in any 12-month period from physicians, advanced registered nurse practitioners, federally qualified health centers, other clinics, and emergency rooms. Refer to rule 441—76.9(249A) for further information concerning the recipientmember lock-in program.    78 78.21 21(2) Risk assessmentsassessment.  Risk assessmentsassessment, using Form 470-2942, Medicaid Prenatal Risk Assessment, shall be completed twiceat the initial visit during a Medicaid recipient’smember's pregnancy.    a.    If the risk assessment reflects a low-risk pregnancy, the assessment shall be completed again at approximately the twenty-eighth week of pregnancy.    b.     If the risk assessment reflects a high-risk pregnancy, referral shall be made for enhanced services. (See description of enhanced services at subrule 78.25(3).)    78 78.21 21(3) Vaccines.  Vaccines available through the Vaccines for Children program under Section 1928 of the Social Security Act are not covered as rural health center services. Rural health clinics whichthat wish to administer those vaccines which are available through the vaccines for children program to Medicaid recipientsmembers shall enroll in the vaccines for childrenVaccines for Children program. In lieu of payment, vaccines available throughand obtain the vaccines for children program shall be accessed from the department of public health for Medicaid recipients.However, the administration of vaccines is a covered service.

    ITEM 11.    Amend rules 441—78.22(249A) and 441—78.23(249A) as follows:

441—78.22(249A) Family planning clinics.  Payments will be made on a fee schedule basis for services provided by family planning clinics.    78.22(1)   Payment will be made for sterilization in accordance with 78.1(16).    78.22(2)   Vaccines available through the Vaccines for Children program under Section 1928 of the Social Security Act are not covered as family planning clinic services. Family planning clinics whichthat wish to administer those vaccines for Medicaid recipientsmembers who receive family planning services at the family planning clinic shall enroll in the vaccines for childrenVaccines for Children program. In lieu of payment, vaccines available throughand obtain the vaccines for children program shall be accessed from the department of public health for Medicaid recipients. Family planning clinics shall receive reimbursement for the administration of vaccines to Medicaid recipientsmembers.       This rule is intended to implement Iowa Code section 249A.4.

441—78.23(249A) Other clinic services.  Payment will be made on a fee schedule basis to facilities not part of a hospital, funded publicly or by private contributions, which provide medically necessary treatment by or under the direct supervision of a physician or dentist to outpatients.     78.23(1) Sterilization.  Payment will be made for sterilization in accordance with 78.1(16).    78.23(2) Utilization review.  Utilization review shall be conducted of Medicaid recipientsmembers who access more than 24 outpatient visits in any 12-month period from physicians, advanced registered nurse practitioners, federally qualified health centers, other clinics, and emergency rooms. Refer to rule 441—76.9(249A) for further information concerning the recipientmember lock-in program.    78.23(3) Risk assessment.  Risk assessmentsassessment, using Form 470-2942, Medicaid Prenatal Risk Assessment, shall be completed twiceat the initial visit during a Medicaid recipient’smember's pregnancy.    a.    If the risk assessment reflects a low-risk pregnancy, the assessment shall be completed again at approximately the twenty-eighth week of pregnancy.    b.    If the risk assessment reflects a high-risk pregnancy, referral shall be made for enhanced services. (See description of enhanced services at subrule 78.25(3).)    78.23(4) Vaccines.  Vaccines available through the Vaccines for Children program under Section 1928 of the Social Security Act are not covered as clinic services. Clinics that wish to administer those vaccines which are available through the vaccines for children program to Medicaid recipientsmembers shall enroll in the vaccines for childrenVaccines for Children program. In lieu of payment, vaccines available throughand obtain the vaccines for children program shall be accessed from the department of public health for Medicaid recipients. Clinics shall receive reimbursement for the administration of vaccines to Medicaid recipientsmembers.       This rule is intended to implement Iowa Code section 249A.4.

    ITEM 12.    Amend subparagraph 78.24(2)"e" as follows:    (3)   The recipientmember has a medical condition which prohibits travel.

    ITEM 13.    Amend rule 441—78.25(249A), as follows:

441—78.25(249A) Maternal health centers.  Payment will be made for prenatal and postpartum medical care, care coordination, health education, and transportation to receive prenatal and postpartum services. Payment will be made for enhanced perinatal services for persons determined high risk. These services include additional health education services, nutrition counseling, social services, additional care coordination services, and one postpartum home visit. Maternal health centers shall provide trimester and postpartum reports to the referring physician. Risk assessmentsassessment using Form 470-2942, Medicaid Prenatal Risk Assessment, shall be completed twiceat the initial visit during a Medicaid recipient’smember's pregnancy. If the risk assessment reflects a low-risk pregnancy, the assessment shall be completed again at approximately the twenty-eighth week of pregnancy. If the risk assessment reflects a high-risk pregnancy, referral shall be made for enhanced services. (See description of enhanced services at subrule 78.25(3).)

    ITEM 14.    Amend rule 441—78.25(249A), first unnumbered paragraph, as follows:Vaccines available through the Vaccines for Children program under Section 1928 of the Social Security Act are not covered as maternal health center services. Maternal health centers whichthat wish to administer those vaccines which are available through the vaccines for children program to Medicaid recipientsmembers shall enroll in the vaccines for childrenVaccines for Children program. In lieu of payment, vaccines available throughand obtain the vaccines for children program shall be accessed from the department of public health for Medicaid recipients. Maternal health centers shall receive reimbursement for the administration of vaccines to Medicaid recipientsmembers.

    ITEM 15.    Rescind and reserve paragraph 78.25(1)"b".

    ITEM 16.    Rescind paragraph 78.25(2)"c" and adopt the following new paragraph in lieu thereof:    c.    Home visit.

    ITEM 17.    Amend paragraph 78.25(2)"e" as follows:    e.    Dental hygiene services within the scope of practice as defined by the dental board of dental examiners at 650—paragraph 10.5(3)“b.”

    ITEM 18.    Rescind and reserve paragraph 78.25(3)"a".

    ITEM 19.    Amend rule 441—78.30(249A) as follows:

441—78.30(249A) Birth centers.  Payment will be made for prenatal, delivery, and postnatal services. Risk assessments, using Form 470-2942, Medicaid Prenatal Risk Assessment, shall be completed twice during a Medicaid recipient's pregnancy.    78.30(1) Risk assessment.  Risk assessment, using Form 470-2942, Medicaid Prenatal Risk Assessment, shall be completed at the initial visit during a Medicaid member’s pregnancy.    a.    If the risk assessment reflects a low-risk pregnancy, the assessment shall be completed again at approximately the twenty-eighth week of pregnancy.    b.    If the risk assessment reflects a high-risk pregnancy, referral shall be made for enhanced services. (See description of enhanced services at subrule 78.25(3).)    78.30(2) Vaccines.  Vaccines available through the Vaccines for Children program under Section 1928 of the Social Security Act are not covered as birth center services. Birth centers whichthat wish to administer those vaccines which are available through the vaccines for children program to Medicaid eligiblesmembers shall enroll in the vaccines for childrenVaccines for Children program. In lieu of payment, vaccines available throughand obtain the vaccines for children program shall be accessed from the department of public health for Medicaid eligibles. Birth centers shall receive reimbursement for the administration of vaccines to Medicaid recipientsmembers.       This rule is intended to implement Iowa Code section 249A.4.

    ITEM 20.    Rescind subrule 78.39(3).

    ITEM 21.    Amend subrules 78.39(1) and 78.39(2) as follows:    78 78.39 39(1) Utilization review.  Utilization review shall be conducted of Medicaid recipientsmembers who access more than 24 outpatient visits in any 12-month period from physicians, advanced registered nurse practitioners, federally qualified health centers, other clinics, and emergency rooms. Refer to rule 441—76.9(249A) for further information concerning the recipientmember lock-in program.    78 78.39 39(2) Risk assessmentsassessment.  Risk assessmentsassessment, using Form 470-2942, Medicaid Prenatal Risk Assessment, shall be completed twiceat the initial visit during a Medicaid recipient’smember's pregnancy.    a.    If the risk assessment reflects a low-risk pregnancy, the assessment shall be completed again at approximately the twenty-eighth week of pregnancy.    b.    If the risk assessment reflects a high-risk pregnancy, referral shall be made for enhanced services. (See description of enhanced services at subrule 78.25(3).)    78 78.39 39(3) Vaccines.  Vaccines available through the Vaccines for Children program under Section 1928 of the Social Security Act are not covered services. Federally qualified health centers whichthat wish to administer those vaccines which are available through the vaccines for children program to Medicaid recipientsmembers shall enroll in the vaccines for childrenVaccines for Children program. In lieu of payment, vaccines available throughand obtain the vaccines for children program shall be accessed from the department of public health for Medicaid recipients. However, vaccine administration is a covered service.

    ITEM 22.    Amend subrules 78.40(3), 78.40(4) and 78.40(5) as follows:    78 78 78.40 40 40(3) Utilization review.  Utilization review shall be conducted of Medicaid recipientsmembers who access more than 24 outpatient visits in any 12-month period from physicians, advanced registered nurse practitioners, other clinics, and emergency rooms. Refer to rule 441—76.9(249A) for further information concerning the recipientmember lock-in program.    78 78 78.40 40 40(4) Vaccine administration.  Vaccines available through the Vaccines for Children program under Section 1928 of the Social Security Act are not covered services. Advanced registered nurse practitioners who wish to administer those vaccines which are available through the vaccines for children program to Medicaid recipientsmembers shall enroll in the vaccines for childrenVaccines for Children program. In lieu of payment, vaccines available throughand obtain the vaccines for children program shall be accessed from the department of public health for Medicaid recipients. Advanced registered nurse practitioners shall receive reimbursement for the administration of vaccines to Medicaid recipientsmembers.    78 78 78.40 40 40(5) Prenatal risk assessment.  Risk assessmentsassessment, using Form 470-2942, Medicaid Prenatal Risk Assessment, shall be completed twiceat the initial visit during a Medicaid recipient’smember's pregnancy.    a.    If the risk assessment reflects a low-risk pregnancy, the assessment shall be completed again at approximately the twenty-eighth week of pregnancy.    b.    If the risk assessment reflects a high-risk pregnancy, referral shall be made for enhanced services. (See description of enhanced services at subrule 78.25(3).)

    ITEM 23.    Amend subrule 78.49(1) as follows:    78.49(1) Covered services.  Covered services include, but are not limited to, audiology, psychological evaluation and counseling, health and nursing services, nutrition services, occupational therapy services, physical therapy services, developmental services, speech-language services, vision services, case management, and medical transportation.

    ITEM 24.    Rescind subrule 78.49(2) and adopt the following new subrule in lieu thereof:    78.49(2) Case management services.   Payment shall also be approved for infant and toddler case management services subject to the following requirements:    a.    Definition.“Case management” means services that will assist eligible children in gaining access to needed medical, social, educational, and other services. Case management is intended to address the complexities of coordinated service delivery for children with medical needs. The case manager should be the focus for coordinating and overseeing the effectiveness of all providers and programs in responding to the assessed need. Case management does not include the direct delivery of an underlying medical, educational, social, or other service to which an eligible child has been referred or any activities that are an integral part or an extension of the direct services.     b.    Choice of provider.Children who also are eligible to receive targeted case management services under 441—Chapter 90 must choose whether to receive case management through the infant and toddler program or through 441—Chapter 90. The chosen provider must meet the requirements of this subrule.    (1)   When a child resides in a medical institution, the institution is responsible for case management. The child is not eligible for any other case management services.    (2)   If the case management agency also provides direct services, the case management unit must be designed so that conflict of interest is addressed and does not result in self-referrals.    (3)   If the costs of any part of case management services are reimbursable under another program, the costs must be allocated between those programs and Medicaid in accordance with OMB Circular No. A-87 or any related or successor guidance or regulations regarding allocation of costs.    (4)   The case manager must complete a competency-based training program with content related to knowledge and understanding of eligible children, Early ACCESS rules, the nature and scope of services in Early ACCESS, and the system of payments for services, as well as case management responsibilities and strategies. The department of education or its designee shall determine whether a person has successfully completed the training.    c.    Assessment.The case manager shall conduct a comprehensive assessment and periodic reassessment of an eligible child to identify all of the child’s service needs, including the need for any medical, educational, social, or other services. Assessment activities are defined to include the following:    (1)   Taking the child’s history;    (2)   Identifying the needs of the child;    (3)   Gathering information from other sources, such as family members, medical providers, social workers, and educators, if necessary, to form a complete assessment of the child;    (4)   Completing documentation of the information gathered and the assessment results; and    (5)   Repeating the assessment every six months to determine whether the child’s needs or preferences have changed.    d.    Plan of care.The case manager shall develop a plan of care based on the information collected through the assessment or reassessment. The plan of care shall:     (1)   Include the child’s strengths and preferences;     (2)   Consider the child’s physical and social environment;     (3)   Specify goals of providing services to the child; and    (4)   Specify actions to address the child’s medical, social, educational, and other service needs. These actions may include activities such as ensuring the active participation of the child and working with the child or the child’s authorized health care decision maker and others to develop goals and identify a course of action to respond to the assessed needs of the child.    e.    Other service components.Case management must include the following components:    (1)   Contacts with the child and family. The case manager shall have face-to-face contact with the child and family within the first 30 days of service and every three months thereafter. In months in which there is no face-to-face contact, a telephone contact between the service coordinator and the family is required.    (2)   Referral and related activities to help a child obtain needed services. The case manager shall help to link the child with medical, social, or educational providers or other programs and services that are capable of providing needed services. Referral activities do not include provision of the direct services, program, or activity to which the child has been linked. Referral activities include:
  1. Assisting the family in gaining access to the infant and toddler program services and other services identified in the child’s plan of care.
  2. Assisting the family in identifying available service providers and funding resources and documenting unmet needs and gaps in services.
  3. Making referrals to providers for needed services.
  4. Scheduling appointments for the child.
  5. Facilitating the timely delivery of services.
  6. Arranging payment for medical transportation.
    (3)   Monitoring and follow-up activities. Monitoring activities shall take place at least once annually for the duration of the child’s eligibility, but may be conducted as frequently as necessary to ensure that the plan of care is effectively implemented and adequately addresses the needs of the child. Monitoring and follow-up activities may be with the child, family members, providers, or other entities. The purpose of these activities is to help determine:
  1. Whether services are being furnished in accordance with the child’s plan of care.
  2. Whether the services in the plan of care are adequate to meet the needs of the child.
  3. Whether there are changes in the needs or status of the child. If there are changes in the child’s needs or status, follow-up activities shall include making necessary adjustments to the plan of care and to service arrangements with providers.
    (4)   Keeping records, including preparing reports, updating the plan of care, making notes about plan activities in the child’s record, and preparing and responding to correspondence with the family and others.
    f.    Documentation of case management.For each child receiving case management, case records must document:    (1)   The name of the child;     (2)   The dates of case management services;     (3)   The agency chosen by the family to provide the case management services;     (4)   The nature, content, and units of case management services received;    (5)   Whether the goals specified in the care plan have been achieved;    (6)   Whether the family has declined services in the care plan;    (7)   Time lines for providing services and reassessment; and    (8)   The need for and occurrences of coordination with case managers of other programs.

    ITEM 25.    Amend rule 441—78.50(249A), as follows:

441—78.50(249A) Local education agency services.  Subject to the following subrules, payment shall be made for medical services provided by local education agency services providers to Medicaid-eligible individualsMedicaid members under the age of 21.

    ITEM 26.    Amend subrule 78.50(1) as follows:    78.50(1) Covered services.  Covered services include, but are not limited to, audiology services, behavior services, consultation services, medical transportation, nursing services, nutrition services, occupational therapy services, personal assistance, physical therapy services, psychologist services, speech-language services, social work services, vision services, and school-based clinic visit services.    a.    Vaccines available through the Vaccines for Children program under Section 1928 of the Social Security Act are not covered as local education agency services. Agencies that wish to administer those vaccines to Medicaid members shall enroll in the Vaccines for Children program and obtain the vaccines from the department of public health. However, the administration of vaccines is a covered service.    b.    Payment for supplies shall be approved when the supplies are incidental to the patient’s care, e.g., syringes for injections, and do not exceed $25 per month. Durable medical equipment and other supplies are not covered as local education agency services.

    ITEM 27.    Rescind and reserve subrule 78.50(2).
ARC 7173BHuman Services Department[441]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 217.6, the Department of Human Services proposes to amend Chapter 150, “Purchase of Service,” Iowa Administrative Code.    The proposed amendment s:    • Change Department practice to negotiate Iowa donation of funds contracts directly with the donors under the Accountable Government Act, Iowa Code chapter 8E, instead of using the current contract form and procedures. All requirements and restrictions previously outlined in rule will be conditions of the individual contracts.    • Eliminate the rule on the Provider Advisory Committee, as the committee no longer exists.    The Department rarely receives donated funds. For the past few years, funds have been donated only to Department facilities.    These amendments do not provide for waivers in specified situations because the contract provisions to be implemented are mandated by the Accountable Government Act, with no provision for exceptions.    Any interested person may make written comments on the proposed amendments on or before October 15, 2008. Comments should be directed to Mary Ellen Imlau, Bureau of Policy Analysis and Appeals, Department of Human Services, Hoover State Office Building, 1305 East Walnut Street, Des Moines, Iowa 50319-0114. Comments may be sent by fax to (515)281-4980 or by E-mail to policyanalysis@dhs.state.ia.us.    These amendments are intended to implement Iowa Code section 234.6.    The following amendments are proposed.

    ITEM 1.    Amend Division I, title, in 441—Chapter 150, as follows: DIVISION I CATEGORIES OF CONTRACTS, TERMS AND CONDITIONS FOR IOWA PURCHASE OF SOCIAL SERVICES AGENCY AND INDIVIDUAL CONTRACTS, IOWA PURCHASE OF ADMINISTRATIVE SUPPORT, AND IOWA DONATIONS OF FUNDS CONTRACT AND PROVISIONS FOR PROVIDER ADVISORY COMMITTEE AND PUBLIC ACCESS TO CONTRACTS

    ITEM 2.    Amend subrule 150.2(4) as follows:    150.2(4) Iowa donation of funds contract.  The Iowa donation of funds contract establishes the conditions under which a donor makes funds available to the department. This is generally for the purpose of matching state or federal funds for services or administrative support.The department may accept donated funds.    a.    Upon mutual agreement regarding the scope and use of the funds to be donated, the department may negotiate and shall execute a contract between the department and the donor in accordance with department of administrative services rules in 11—Chapters 106 and 107. The contract shall contain specifications concerning amendment, termination, transmittal of funds, accounting, and reversion of unspent funds.    b.    Except for restrictions permitted by the contract, all funds shall be donated on an unrestricted basis for use as if they were appropriated funds and shall be under the administrative control of the department. The donor may specify the geographic area to be served and the specific service to be provided. The Iowa Donation of Funds Contract, Form 470-0629, shall be completed prior to the department’s acceptance of the funds.    c.    No funds donated and transmitted to the department will be returned to the donor unless specified in the contract.

    ITEM 3.    Rescind and reserve rules 441—150.7(234)441—150.8(234).
ARC 7201BInsurance Division[191]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 522B.18, the Insurance Division hereby gives Notice of Intended Action to amend Chapter 10, “Licensing of Insurance Producers,” Iowa Administrative Code.    The rules in Chapter 10 set out the requirements, procedures and fees relating to the qualification, licensure and appointment of insurance producers. The proposed amendments to the rules are in accordance with uniform guidelines issued by the National Association of Insurance Commissioners. The Insurance Division intends that Iowa insurance companies and producers shall comply with the rules beginning January 1, 2009.    Any interested person may make written suggestions or comments on these proposed amendments on or before October 14, 2008. Such written materials should be directed to Ann Outka, Iowa Insurance Division, 330 Maple Street, Des Moines, Iowa 50319; fax (515)281-3059.    Also, there will be a public hearing on October 14, 2008, at 10 a.m. at the offices of the Iowa Insurance Division, 330 Maple Street, Des Moines, Iowa 50319, at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the amendments.    Any persons who intend to attend the public hearing and have special requirements, such as those relating to hearing or mobility impairments, should contact the Division and advise of specific needs.    These amendments are intended to implement Iowa Code chapter 522B and 2008 Iowa Acts, Senate File 2428.    The following amendments are proposed.

    ITEM 1.    Rescind the in rule 191—10.2(522B).

    ITEM 2.    Amend rule 191—10.2(522B), as follows:        "Appointment" means a notification filed with the division that an insurer has established an agency relationship with an insurancea producer. A company filing such a request must verify that the producer is licensed for the appropriate line(s) of authority.        "Birth month" means the month in which an insurancea producer was born.        "Home state" means the District of Columbia and any state or territory of the United States in which an insurancea producer maintains the producer’s principal place of residence or principal place of business and is licensed to act as an insurancea producer.        "License" means the division’s authorization for a person to act as an insurancea producer for the authorized lines of insurance.        "License number" means the National Insurance Producer Registry (NIPR) national producer number (NPN) issued to all licensees whose license records exist in the producer databasestate producer licensing database (SPLD). For purposes of this definition, “state producer licensing database (SPLD)” means the national database of producers maintained by the National Association of Insurance Commissioners (NAIC), its affiliates or subsidiaries.        "National Insurance Producer Registry" "NIPR" means the nonprofit affiliate of the National Association of Insurance Commissioners (NAIC). The NIPR’s Web site is www.licenseregistry.comwww.NIPR.com.        "Notification" means a written or electronic communication from an insurancea producer to the division.        "Producer renewal notice" means a written or electronic communication issued by the division to inform an insurancea producer about license renewal.        "Termination" means that an insurer has ended its agency relationship with an insurancea producer.        "Termination for cause" means that an insurer has ended its agency relationship with an insurancea producer for one of the reasons set forth in Iowa Code section 522B.11.

    ITEM 3.    Adopt the following new in rule 191—10.2(522B):        "Commissioner" means the Iowa insurance commissioner.        "Producer" "insurance producer" means a person required to be licensed in this state to sell, solicit or negotiate insurance.

    ITEM 4.    Amend rule 191—10.3(522B) as follows:

191—10.3(522B) Requirement to hold a license.      10.3(1)   No person may sell, solicit or negotiate insurance in Iowa until that person has been issued an Iowa insurance producer license.    10.3(2)   A person offering to the public, for a fee or commission, to engage in the business of offering any advice, counsel, opinion or service with respect to the benefits, advantages or disadvantages promised under any policy of insurance must be licensed as insurancea producer.    10.3(3)   A person shall not advise an Iowa resident to cancel, not renew, or otherwise change an existing insurance policy unless that person holds an Iowa insurance producer license regarding the line of insurance for which the advice is given. This subrule shall not apply to a licensed attorney or certified public accountant who does not sell or solicit insurance.    10.3(4)   The license itself does not provide the producer with any authority to represent or commit an insurer.

    ITEM 5.    Amend rule 191—10.4(522B) as follows:

191—10.4(522B) Licensing of resident producers.      10.4(1)   A person whose home state is Iowa and who desires to be licensed as an insurancea producer must satisfy the following requirements:    a.    Be at least 18 years of age,    b.    Have not committed any act that is grounds for denial under subrule 10.20(4).    c.    Submit a completed uniform application,    d.    Pass an examination in the line of authority sought, and    e.    Pay the appropriate insurance producer license fee.    10.4(2)   Examinations are conducted by the outside testing service on contract with the division. Applications and fees for examinations and for initial producer licensing will be submitted either to the outside testing service on contract with the division or as directed by the division. Instructions are available at the division’s Web site: www.iid.state.ia.us.    10.4(3)   An application is valid for 90 days after a properly completed application is received by the division or its designee. If an applicant does not pass the necessary examinations within 90 days, the application will expire and the license fee will not be returned.    10.4(4)   Examination results are valid for 90 days after the date of the test. Failure to apply for licensure within 90 days after the examination is passed shall void the examination results.    10.4(5)   Amendments to insurance producer licenses shall be done either by an outside vendor or by the division, as directed by the division. Any licensed insurance producer desiring to become licensed in an additional line of authority shall:    a.    Submit a completed uniform application form through the NIPR Gateway or as directed by the division, specifying the line(s) of authority requested to be added. Instructions are available at the division’s Web site: www.iid.state.ia.us; and    b.    For each line of authority requested to be added, pass any required examination.    10.4(6)   A producer who holds a personal lines authority (authority number 16) can obtain property and casualty lines of authority (authority numbers 21 and 22) upon successful completion of the commercial insurance subject examination.    10.4(7)   To receive a license for an excess and surplus lines line of authority, the applicant must have successfully completed the examination for the excess and surplus lines examinationline of authority (authority number 20) and also have successfully completed either: (1) the examinations for property and casualty lines of authority (authority numbers 21 and 22); or (2) the examination for personal line lines of authority (authority number 16) and the commercial insurance subject examination.    10.4(8)   To receive a license for the variable products line of authority, the applicant must:    a.    Hold an active Iowa insurance license with a life insurance line of authority;    b.    Pass the Financial Industry RegulationRegulatory Authority (FINRA) examinations necessary to obtain an Iowa securities license; and    c.    File an application through the NIPR Gateway or as directed by the division to amend the license to add the variable products line of authority.    10.4(9)   The division may require any documents reasonably necessary to verify the information contained in the application or to verify that the individual making application has the character and competency required to receive an insurancea producer license. If an applicant does not provide the additional information requested by the division within 45 days of receipt of the request, the application will expire and the license fee will not be returned.

    ITEM 6.    Amend rule 191—10.5(522B) as follows:

191—10.5(522B) Licensing of nonresident producers.      10.5(1)   A producer for whom Iowa is not the home state who desires to sell, solicit or negotiate insurance in Iowa must satisfy the following requirements to obtain an Iowa nonresident insurance producer license:    a.    Be licensed and in good standing in the home state;    b.    Submit a proper request for licensure to the division through the NIPR Gateway; and    c.    Pay the appropriate fee.    10.5(2)   Any licensed nonresident producer desiring to become licensed in an additional line of authority shall submit to the division using the NIPR Gateway a completed application form specifying the line(s) of authority requested to be added.    10.5(3)   A license will not be issued to a nonresident producer if the producer’s resident state does not issue licenses to Iowa resident producers applying for nonresident producer licenses in that state or if the producer’s resident state restricts Iowa resident producers’ nonresident activities in that state.    10.5(4)   The division may require any documents reasonably necessary to verify the information contained in the application or to verify that the individual making application has the character and competency required to receive an insurancea producer license. If an applicant does not provide the additional information requested by the division within 45 days of receipt of the request, the application will expire and the license fee will not be returned.

    ITEM 7.    Amend rule 191—10.6(522B) as follows:

191—10.6(522B) Issuance of license.      10.6(1)    A person who meets the requirements of Iowa Code sections 522B.4 and 522B.5, or section 522B.7, and of rule 10.5(522B), unless otherwise denied licensure pursuant to Iowa Code section 522B.11 or rule 10.19(522B), shall be issued a producer license.An insuranceA producer license shall remain in effect for aan initial term of three years,after the last day of the applicant's birth month of the year the license was issued, unless revoked or suspended, and. A license may be continually renewed pursuant to rule 10.8(522B) as long as the proper fees are paid and home state continuing education requirements are met. A renewal term is three years. If not renewed, a producer license automatically terminates on the last day of the month of the initial or renewal term.    10.6(2)   An individual insurance producer whose license has lapsedexpired may seek reinstatement as set forth in rule 10.9(522B).    10.6(3)   The license shall contain the producer’s name, address, license number, date of issuance, date of expiration, the line(s) of authority held and any other information the division deems necessary. The license number shall be the same as the producer’s National Insurance Producer Registry (NIPR) national producer number (NPN). Effective January 1, 2008, the division will not send a paper license to the insurance producer, but insurance producers may download and print licenses through the division’s Web site: www.iid.state.ia.us.    10.6(4)   If the division issues or renews a producer license and subsequently determines that payment for the license or renewal was returned to the division by a bank without payment, or that the credit card company does not approve or cancels or refuses amounts charged to the credit card, the license shall be immediately suspended until the payments are made and any fees or penalties charged by the division are paid, at which time the license may be reinstated. The individual may request a hearing within 30 days of receipt of notice by the division that the license was suspended.

    ITEM 8.    Amend rule 191—10.7(522B) as follows:

191—10.7(522B) License lines of authority.  In addition to the lines of authority listed in Iowa Code subsection 522B.6(2), theThe following lines of authority also are available for issuance in Iowa: crop; surety; and reciprocal (any other line of insurance issued in another state and for which Iowa grants authority to sell, solicit or negotiate in this state).NumberAuthority     4 Crop    5Surety    6Accident and health (insurance coverage for sickness, bodily injury, or accidental death and may include benefits for disability income)    7Life (insurance coverage on human lives, including benefits of endowment, annuities, equity indexed products, may include benefits in event of death or dismemberment by accident and benefits for disability income)    9Variable life/variable annuity products (insurance coverage provided under variable life insurance contracts and variable annuities)    16Personal lines (fire, casualty and auto insurance sold to individuals or families)    18Credit (offered in connection with an extension of credit to extinguish a credit obligation)    20Excess and surplus lines (prerequisite is authority 21 and 22)    21Property (coverage for the direct or consequential loss or damage to property of any kind)    22Casualty (coverage against legal liability, including that for death, injury, or disability, or damage to real or personal property)    23Reciprocal authority (any other line of insurance issued in another state and for which Iowa grants authority to sell, solicit or negotiate in this state)

    ITEM 9.    Amend rule 191—10.8(522B) as follows:

191—10.8(522B) License renewal.      10.8(1)   The division shall send a producer renewal notice to each licensed producer at the producer’s last-known address as it appears in division records. If the division has received notification from the post office that the address of record is no longer valid, no renewal notice will be mailed.    10.8(2)   A producer must apply for license renewal within 60 days prior to the expiration date of the license. Failure to apply to renew a license and pay appropriate fees prior to the expiration date of the license will result in expiration of the license.    10.8(3)   The division may deliver the producer renewal notice electronically. If delivered electronically, the notice will be sent to the last-known electronic mail address as provided by the insurance producerof record.    10.8(4)   Resident insurance producer licenses may be renewed electronically through the division’s Web site (www.iid.state.ia.us) or by mailNIPR Gateway at www.NIPR.com.    10.8(5)   Nonresident insurance producer licenses may be renewed only through the NIPR Gateway, or as otherwise directed by the division.

    ITEM 10.    Amend subrule 10.10(1) as follows:    10.10(1)   The term “reinstatement” as used in this rule means the reinstatement of a suspended license. The term “reissuance” as used in this rule means the issuance of a new license following either the revocation of a license or the forfeiture of a license in connection with a disciplinary matter, including but not limited to proceedings pursuant to rules 10.21(252J), 10.22(261) and 10.23(82GA,SF2428). This rule does not apply to the reinstatement of an expired license.

    ITEM 11.    Rescind subrule 10.10(6).

    ITEM 12.    Renumber subrule 10.10(7) as 10.10(6).

    ITEM 13.    Amend rule 191—10.12(522B) as follows:

191—10.12(522B) Change in name, address or state of residence.      10.12(1)   If a producer’s name is changed, the producer must file notification with the division within 30 days of the name change. The notification must include the producer’s:    a.    Prior name;    b.    License number; and    c.    New name.Notification mayshall be filed via electronic mail to producer.licensing@iid.state.ia.us, or through the NIPR Gateway, if availableat www.NIPR.com, unless the division instructs the producer otherwise.    10.12(2)   Address change. If a resident or nonresident producer’s address is changed, the producer must file notification with the division within 30 days of the address change. The notification must include the producer’s:    a.    Name;    b.    License number;    c.    Previous address; and    d.    New address. A producer may designate a business address instead of a resident address at the option of the producer.Notification mayshall be filed via electronic mail to producer.licensing@iid.state.ia.us, or through the NIPR Gateway, if availableat www.NIPR.com, unless the division instructs the producer otherwise.    10.12(3)   A nonresident insurance producer who moves from one state to another state or an Iowa resident producer who moves to another state and wishes to retain an Iowa insurance producer license must file a change of address with the division and provide a certification from the new resident state within 30 days of the change of legal residence. No fee or license application is required. If the new resident state is actively participating in the producer database, a letter of certification is not required. A nonresident licensed insurance producer who moves to Iowa and wishes to retain the nonresident’s insuranceproducer license must file a change of address with the division within 90 days of the change of legal residence.    10.12(4)   Issuance of an Iowa nonresident insurance producer license is contingent on proper licensure in the nonresident insurance producer’s home state. Termination of the producer’s resident license will be deemed termination of the Iowa nonresident insurance producer license unless the producer timely files a change of address pursuant to this rule.    10.12(5)   If a producer has provided an E-mail address to the division, the division has the option to send information to the producer through the E-mail address rather than through the mail.

    ITEM 14.    Amend subrule 10.14(5) as follows:    10.14(5)   A person who is not engaged in any activities in Iowa that require an insurancea producer license in Iowa is not required to maintain an active insurance producer license in order to receive override or hierarchy commissions or to receive renewal commissions earned while the producer was actively engaged in activities that required an insurancea producer license.

    ITEM 15.    Amend subrule 10.15(1) as follows:    10.15(1)   Insurers are required to file appointments with the division for each insurance producer with which the producer has an agency relationship. The determination of whether an insurer and an insurancea producer have an agency relationship will be made by the division based on the totality of the circumstances surrounding the business relationship. Appointments are not issued for business entities.

    ITEM 16.    Amend subrule 10.15(4) as follows:    10.15(4)   Appointment fees are set forth in rule 10.24(522B)10.26(522B). A billing statement will be submitted to insurance companies on a monthly basis and payment is due within 45 days. The division will assess a late fee of $100 for the failure to timely pay appointment billing statements of $100 on the forty-sixth day, an additional $100 on the sixtieth day, and an additional $100 each day thereafterand an additional $500 on or after the forty-sixth day.

    ITEM 17.    Adopt the following new subrule 10.15(7):    10.15(7)   Insurance companies are required to file the name, address, and electronic address of a contact person for the company, to whom the billing statements will be sent. Insurance companies are required to notify the division if a there is a change of the person appointed as the contact person or if a change of the address of such contact occurs. If a company fails to notify the division of such a change, the division shall charge the insurance company a $100 fee.

    ITEM 18.    Amend subrule 10.16(4) as follows:    10.16(4)   Failure to pay renewal appointment fees by March 15 will result in termination of a company’s appointments. Appointments that are terminated due to nonpayment of renewal fees may be reinstated upon payment of the renewal fee plus a reinstatement fee which is equal to the renewal feeof $500.

    ITEM 19.    Adopt the following new subrule 10.16(6):    10.16(6)   Insurance companies are required to file the name, address, and electronic address of a contact person for the company, to whom the appointment renewals will be sent. Insurance companies are required to notify the division if a change of the address of such contact occurs. If a company fails to notify the division of such a change of address, the division shall charge the insurance company a $100 fee.

    ITEM 20.    Amend subrule 10.18(2) as follows:    10.18(2) Requirements.      a.    To qualify for such a license, the business entity must:    (1)   File a completed NAIC uniform business entity application through the NIPR Gateway or as directed by the division. For purposes of this subrule, “uniform business entity application” means the National Association of Insurance Commissioners’ uniform business entity application for resident and nonresident business entities, as the application appears on the NAIC Web site;    (2)   Designate one officer, owner, partner, or member of the business entity, which person also is a producer licensed by the division, as the person who will have full responsibility for the conduct of all business transactions of the business entity or of insurance producers affiliated with the business entity;    (3)   For a nonresident business entity, submit an appropriate request through the NIPR Gateway; and    (4)   Pay the license fee.    b.    The designated responsible producer shall maintain an active Iowa insurance producer license. If the license of the designated responsible producer terminates or lapses for any reason, the business entity must supply the division with a substitute designated responsible producer within ten days. If the business entity does not provide a substitute, the division shall terminate the license, and the entity shall submit a new application.

    ITEM 21.    Amend subrule 10.18(5) as follows:    10.18(5) Business address.  Business entities licensed under this rule must maintain a current business address with the division. If a business entity’s address is changed, notification from the designated responsible producer must be submitted to the division within 30 days of the address change, stating:    a.    Name of the business entity;    b.    License number;    c.    Previous address; and    d.    New address.The notification may be sent by electronic mail to producer.licensing@iid.state.ia.us, or through the NIPR Gateway, if availableat www.NIPR.com, unless the division instructs the producer otherwise.

    ITEM 22.    Renumber rule 191—10.19(522B) as 191---10.20 (522B).

    ITEM 23.    Adopt the following new rule 191—10.19(522B):

191—10.19(522B) Use of senior-specific certifications and professional designations in the sale of life insurance and annuities.      10.19(1) Purpose.  The purpose of this rule is to set forth standards to protect consumers from misleading and fraudulent marketing practices with respect to the use of senior-specific certifications and professional designations in the solicitation, sale or purchase of, or advice made in connection with, a life insurance or annuity product.    10.19(2) Scope.  This rule shall apply to any solicitation, sale or purchase of, or advice made in connection with, a life insurance or annuity product by a producer.    10.19(3) Authority.      a.    This rule is promulgated under the authority of Iowa Code chapters 507B and 522B.    b.    Nothing in this rule shall limit the division’s authority to enforce existing provisions of law.    10.19(4) Prohibited uses of senior-specific certifications and professional designations.      a.     It is an unfair and deceptive act or practice in the business of insurance within the meaning of Iowa Code chapter 507B for a producer to use a senior-specific certification or professional designation that indicates or implies in such a way as to mislead a purchaser or prospective purchaser that the producer has special certification or training in advising or servicing seniors in connection with the solicitation, sale or purchase of a life insurance or annuity product or in the provision of advice as to the value of or the advisability of purchasing or selling a life insurance or annuity product, either directly or indirectly through publications or writings, or by issuing or promulgating analyses or reports related to a life insurance or annuity product.     b.    The prohibited use of senior-specific certifications or professional designations includes, but is not limited to, the following:    (1)   Use of a certification or professional designation by an insurance producer who has not actually earned or is otherwise ineligible to use such certification or designation;    (2)   Use of a nonexistent or self-conferred certification or professional designation;    (3)   Use of a certification or professional designation that indicates or implies a level of occupational qualifications obtained through education, training or experience that the producer using the certification or designation does not have; and    (4)   Use of a certification or professional designation that was obtained from a certifying or designating organization that:
  1. Is primarily engaged in the business of instruction in sales or marketing;
  2. Does not have reasonable standards or procedures for assuring the competency of its certificants or designees;
  3. Does not have reasonable standards or procedures for monitoring and disciplining its certificants or designees for improper or unethical conduct; or
  4. Does not have reasonable continuing education requirements for its certificants or designees in order to maintain the certificate or designation.
    c.    There is a rebuttable presumption that a certifying or designating organization is not disqualified solely for purposes of subparagraph 10.19(4)“b”(4) when the certification or designation issued from the organization does not primarily apply to sales or marketing and when the organization or the certification or designation in question has been accredited by:    (1)   The American National Standards Institute (ANSI);    (2)   The National Commission for Certifying Agencies; or    (3)   Any organization that is on the U.S. Department of Education’s list entitled “Accrediting Agencies Recognized for Title IV Purposes.”    d.    In determining whether a combination of words or an acronym standing for a combination of words constitutes a certification or professional designation indicating or implying that a person has special certification or training in advising or servicing seniors, factors to be considered shall include:    (1)   Use of one or more words such as “senior,” “retirement,” “elder,” or like words combined with one or more words such as “certified,” “registered,” “chartered,” “adviser,” “specialist,” “consultant,” “planner,” or like words, in the name of the certification or professional designation; and    (2)   The manner in which those words are combined.    e.    Financial services regulatory agency.    (1)   For purposes of this rule, a job title within an organization that is licensed or registered by a state or federal financial services regulatory agency is not a certification or professional designation, unless it is used in a manner that would confuse or mislead a reasonable consumer, when the job title:
  1. Indicates seniority or standing within the organization; or
  2. Specifies an individual’s area of specialization within the organization.
    (2)   For purposes of paragraph 10.19(4)“e,” “financial services regulatory agency” includes, but is not limited to, an agency that regulates insurers, insurance producers, broker-dealers, investment advisers, or investment companies as defined under the Investment Company Act of 1940.
    f.    Effective date. This rule shall become effective January 1, 2009.

    ITEM 24.    Amend renumbered rule 191—10.20(522B) as follows:

191—10.20(522B) Violations and penalties.      10.20(1)   A producer who sells, solicits or negotiates insurance, directly or indirectly, in violation of this chapter shall be deemed to be in violation of Iowa Code section 522B.2 and subject to the penalties provided in Iowa Code section 522B.17.    10.20(2)   A person who sells, solicits or negotiates insurance, directly or indirectly, who is not properly licensed as a producer is subject to the penalties provided in Iowa Code chapter 507A and Iowa Code section 522B.17.    10.20(3)   Any company or company representative who aids and abets a producer in the above-described violation shall be deemed to be in violation of Iowa Code section 522B.2 and subject to the penalties provided in Iowa Code section 522B.17.    10.20(4)   The commissioner may place on probation, suspend, revoke, or refuse to issue or renew a producer’s license or may levy a civil penalty, in accordance with Iowa Code section 522B.17 or any combination of actions, for any action listed in Iowa Code section 522B.11 and any one or more of the following causes:    a.    Submitting to the division or to the outside testing service on contract with the division a check which is returned to the division by a bank without payment, or submitting a payment to the division by credit card which the credit card company does not approve, or canceling or refusing amounts charged to a credit card by the outside testing service on contract with the division where services were received by the producer;    b.    Failing to report any administrative action or criminal prosecution taken against the producer or failure to report the termination of a resident insurance producer license;    c.    Acting as an insurancea producer through persons not licensed as insurance producers; or    d.    Taking any action to circumvent the spirit of these rules and the Iowa insurance statutes or any other action that shows noncompliance with the requirements of Iowa Code chapter 522B or these rules.    10.20(5)   If a producer fails to provide to the division any notification required either by Iowa Code chapter 522B or by this chapter, including but not limited to notification of a change of address, notification of change of name, or notification of administrative criminal action as required by rules 10.12(522B) and 10.13(522B), within the required time, the producer shall pay a late fee of $100. A business entity that fails to make a notification to the division as required by rule 10.18(522B) within the required time shall pay a late fee of $100.    10.(5) 10.20(6)   In the event that the division denies a request to renew an insurancea producer license or denies an application for an insurancea producer license, the commissioner shall provide written notification to the producer or applicant of the denial or failure to renew, including the reason therefor. The producer or applicant may request a hearing within 30 days of receipt of the notice to determine the reasonableness of the division’s action. The hearing shall be held within 30 days of the date of the receipt of the written demand by the applicant and shall be held pursuant to 191—Chapter 3.    10.(6) 10.20(7)   The commissioner may suspend, revoke, or refuse to issue the license of a business entity if the commissioner finds, after hearing, that an individual licensee’s violation was known or should have been known by one or more of the partners, officers or managers acting on behalf of the entity and the violation was neither reported to the insurance division nor was corrective action taken.

    ITEM 25.    Renumber rule 191---10.20(252J) as 191—10.21(252J).

    ITEM 26.    Amend renumbered subrule 10.21(5) as follows:    10.21(5)   Upon receipt of a withdrawal of the certificate of noncompliance from the CSRU, suspension proceedings shall halt and the named producer shall be notified that the proceedings have been halted. If the producer’s license has already been suspended, the license shall be reinstated if the producer is otherwise in compliance with division rules. All fees required for license renewal or license reinstatement must be paid by producers and all continuing education requirements must be met before an insurancea producer license will be renewed or reinstated after a license suspension or revocation pursuant to this subrule.

    ITEM 27.    Renumber rule 191—10.21(261) as 191---10.22(261).

    ITEM 28.    Amend renumbered rule 191—10.22(261) as follows:

191—10.22(261) Suspension for failure to pay student loan.      10.22(1)   The division shall deny the issuance or renewal of an insurancea producer license upon receipt of a certificate of noncompliance from the college student aid commission (CSAC) according to the procedures set forth in Iowa Code sections 261.126 and 261.127. In addition to the procedures contained in those sections, this rule shall apply.    10.22(2)   Upon receipt of a certificate of noncompliance from the CSAC according to the procedures set forth in Iowa Code sections 261.126 and 261.127, the commissioner shall issue a notice to the producer that the producer’s pending application for licensure, pending request for renewal, or current license will be suspended 30 60 days after the date of the notice. Notice shall be sent to the producer’s last-known address by restricted certified mail, return receipt requested, or by personal service in accordance with the Iowa Rules of Civil Procedure. Alternatively, the applicant or licensed producer may accept service personally or through authorized counsel.    10.22(3)   The notice shall contain the following items:    a.    A statement that the commissioner intends to suspend the producer’s application, request for renewal or current insurance license in 60 days;    b.    A statement that the producer must contact the CSAC to request a withdrawal of the certificate of noncompliance;    c.    A statement that the producer’s application, request for renewal or current insurance producer license will be suspended if the certificate of noncompliance is not withdrawn or, if the current license is on suspension, a statement that the producer’s current insurance producer license will be revoked;    d.    A statement that the producer does not have a right to a hearing before the division, but that the producer may file an application for a hearing in district court pursuant to Iowa Code section 261.127;    e.    A statement that the filing of an application with the district court will stay the proceedings of the division;    f.    A copy of the certificate of noncompliance.    10.22(4)   The effective date of revocation or suspension of an insurancea producer license, as specified in the notice required by Iowa Code section 261.126, shall be 60 days following service of the notice upon the applicant or registrant.    10.22(5)   In the event an applicant or licensed producer timely files a district court action following service of a division notice pursuant to Iowa Code section 261.127, the division’s suspension proceedings will be stayed until the division is notified by the district court of the resolution of the application. Upon receipt of a court order lifting the stay, or otherwise directing the division to proceed, the division shall continue with the intended action described in the notice. For purposes of determining the effective date of the denial of the issuance or renewal of an insurancea producer license, the division shall count the number of days before the action was filed and the number of days after the court disposed of the action.    10.22(6)   If the division does not receive a withdrawal of the certificate of noncompliance from the CSAC or a notice from a clerk of court that an application for hearing has been filed, the division shall suspend the producer’s application, request for renewal or current insurance producer license 60 days after the notice is issued.    10.22(7)   Upon receipt of a withdrawal of the certificate of noncompliance from the CSAC, suspension proceedings shall halt and the named producer shall be notified that the proceedings have been halted. If the producer’s insurance license has already been suspended, the license shall be reinstated if the producer is otherwise in compliance with division rules. All fees required for license renewal or license reinstatement must be paid by producers and all continuing education requirements must be met before an insurancea producer license will be renewed or reinstated after a license suspension or revocation pursuant to Iowa Code section 261.126.    10.22(8)   The division shall notify the producer in writing through regular first-class mail, or such other means as the division deems appropriate in the circumstances, within ten days of the effective date of the suspension or revocation of an insurancea producer license, and shall similarly notify the producer when the insurance producer license is reinstated following the division’s receipt of a withdrawal of the certificate of noncompliance.    10.22(9)   Notwithstanding any statutory confidentiality provision, the division may share information with the CSAC for the sole purpose of identifying producers subject to enforcement under Iowa Code chapter 261.

    ITEM 29.    Renumber rule 191—10.22(522B) as 191---10.24(522B).

    ITEM 30.    Rescind rule 191—10.25(522B).

    ITEM 31.    Renumber rule 191—10.23(522B) as 191---10.25(522B).

    ITEM 32.    Adopt the following new rule 191—10.23(82GA,SF2428):

191—10.23(82GA,SF2428) Suspension for failure to pay state debt.      10.23(1)   The commissioner shall deny the issuance or renewal of a producer license upon receipt of a certificate of noncompliance from the centralized collection unit of the department of revenue according to the procedures in 2008 Iowa Acts, Senate File 2428. In addition to the procedures set forth in 2008 Iowa Acts, Senate File 2428, this rule shall apply.    10.23(2)   Upon receipt of a certificate of noncompliance from the centralized collection unit of the department of revenue according to the procedures set forth in 2008 Iowa Acts, Senate File 2428, the commissioner shall issue a notice to the producer that the producer’s pending application for licensure, pending request for renewal, or current producer license will be suspended 60 days after the date of the notice. Notice shall be sent to the producer’s last-known address by restricted certified mail, return receipt requested, or by personal service in accordance with the Iowa Rules of Civil Procedure. Alternatively, the applicant or licensed producer may accept service personally or through authorized counsel.    10.23(3)   Pursuant to 2008 Iowa Acts, Senate File 2428, section 14, the notice shall contain the following items:    a.    A statement that the commissioner intends to suspend the producer’s application, request for renewal or current producer license in 60 days;    b.    A statement that the producer must contact the centralized collection unit of the department of revenue to schedule a conference or to otherwise obtain a withdrawal of the certificate of noncompliance;    c.    A statement that the producer’s application, request for renewal or current producer license will be suspended, or denied if the commissioner does not receive a withdrawal of the certificate of noncompliance from the centralized collection unit of the department of revenue within 60 days of the issuance of notice under this rule; or, if the current producer license is on suspension, a statement that the producer’s current producer license will be revoked;    d.    A statement that the producer does not have a right to a hearing before the commissioner, but that the producer may file an application for a hearing in district court pursuant to 2008 Iowa Acts, Senate File 2428, section 15;    e.    A statement that the filing of an application with the district court will stay the proceedings of the commissioner;    f.    A copy of the certificate of noncompliance.    10.23(4)   Producers shall keep the commissioner informed of all court actions and all actions taken by the centralized collection unit of the department of revenue under or in connection with 2008 Iowa Acts, Senate File 2428; and producers shall provide to the commissioner, within seven days of filing or issuance, of all applications filed with the district court pursuant to 2008 Iowa Acts, Senate File 2428, section 15, all court orders entered in such actions, and withdrawals of certificates of noncompliance by the centralized collection unit of the department of revenue.     10.23(5)   The effective date of revocation or suspension of a producer license, as specified in the notice required by 2008 Iowa Acts, Senate File 2428, section 14, and subrule 10.23(2), shall be 60 days following service of the notice upon the applicant or producer.    10.23(6)   In the event an applicant or licensed producer timely files a district court action following service of a notice by the commissioner pursuant to 2008 Iowa Acts, Senate File 2428, section 15, the commissioner’s suspension proceedings will be stayed until the commissioner is notified by the district court of the resolution of the application. Upon receipt of a court order lifting the stay, or otherwise directing the commissioner to proceed, the commissioner shall continue with the intended action described in the notice. For purposes of determining the effective date of the denial of the issuance or renewal of a producer license, the commissioner shall count the number of days before the action was filed and the number of days after the court disposed of the action.    10.23(7)   If the commissioner does not receive a withdrawal of the certificate of noncompliance from the centralized collection unit of the department of revenue or a notice from a clerk of court that an application for hearing has been filed, the commissioner shall suspend the producer’s application, request for renewal or current producer license 60 days after the notice is issued.    10.23(8)   Upon receipt of a withdrawal of the certificate of noncompliance from the centralized collection unit of the department of revenue, suspension proceedings shall halt, and the named producer shall be notified that the proceedings have been halted. If the producer’s license has already been suspended, the license shall be reinstated if the producer is otherwise in compliance with this chapter. All fees required for license renewal or license reinstatement must be paid by the producer, and all continuing education requirements must be met before a producer license will be renewed or reinstated after a license suspension or revocation pursuant to 2008 Iowa Acts, Senate File 2428.    10.23(9)   The commissioner shall notify the producer in writing through regular first-class mail, or such other means as the commissioner deems appropriate in the circumstances, within ten days of the effective date of the suspension or revocation of a producer license, and shall similarly notify the producer when the producer license is reinstated following the commissioner’s receipt of a withdrawal of the certificate of noncompliance.    10.23(10)   Notwithstanding any statutory confidentiality provision, the commissioner may share information with the centralized collection unit of the department of revenue for the sole purpose of identifying producers subject to enforcement under 2008 Iowa Acts, Senate File 2428.

    ITEM 33.    Renumber rule 191—10.24(522B) as 191---10.26(522B).

    ITEM 34.    Amend renumbered subrules 10.26(3) and 10.26(5) as follows:    10 10.26 26(3)   The fee for issuance or renewal of an insurancea producer license is $50 for three years.    10 10.26 26(5)   The fee for reinstatement of an insurancea producer license is a total of the renewal fee plus $100.

    ITEM 35.    Amend 191—Chapter 10, Division I, implementation sentence, as follows:       These rules are intended to implement Iowa Code chapters 252J, 261, and 522B and 2008 Iowa Acts, Senate File 2428.
ARC 7202BInsurance Division[191]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code sections 505.8 and 522B.18, the Insurance Division hereby gives Notice of Intended Action to amend Chapter 11, “Continuing Education for Insurance Producers,” Iowa Administrative Code.    The rules in Chapter 11 set out the requirements, procedures and fees relating to the type, amount, and proof of continuing education insurance producers must complete, and relating to the approval of continuing education providers and courses. The proposed amendments to the rules are in accordance with uniform guidelines issued by the National Association of Insurance Commissioners. The Insurance Division intends that Iowa insurance companies and producers shall comply with the rules beginning January 1, 2009.    Any interested person may make written suggestions or comments on these proposed amendments on or before October 14, 2008. Such written materials should be directed to Ann Outka, Iowa Insurance Division, 330 Maple Street, Des Moines, Iowa 50319; fax (515)281-3059.    Also, there will be a public hearing on October 14, 2008, at 10 a.m. at the offices of the Iowa Insurance Division, 330 Maple Street, Des Moines, Iowa 50319, at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the amendments.    Any persons who intend to attend the public hearing and have special requirements, such as those relating to hearing or mobility impairments, should contact the Division and advise of specific needs.    These amendments are intended to implement Iowa Code chapter 522B.    The following amendments are proposed.

    ITEM 1.    Amend subrule 11.1(3) as follows:    11.1(3)   These rules do not apply to:    a.    A nonresident producer who resides in a state or district having a continuing education (CE) requirement for insurance producers.    b.    A resident producer who holds qualification in one of the following lines of authority:5 ( surety),;18 (or credit life, accident and health insurance ), or 4 (crop insurance).    c.    Licensed attorneys who are also producers who submit proof of completion of continuing legal education for the appropriate calendar years during the CE term, pay the continuing education fee set forth in subrule 11.14(1) and otherwise comply with the producer license renewal procedures set forth in 191—Chapter 10.    d.    A producer who serves full-time in the armed forces of the United States of America on active duty during a substantial part of the CE term and who submits evidence of such service.    e.    A resident producer who holds qualification only for a crop insurance line of authority and who complies with subrule 11.3(8).

    ITEM 2.    Rescind the in rule 191—11.2(505,522B).

    ITEM 3.    Amend rule 191—11.2(505,522B),as follows:        "CE term" means the three-year-one-month period beginning the first day of the producer’s birth month and ending on the last day of the producer’s birth month in the renewal yearperiod of time beginning when a producer’s insurance license is issued or renewed and the following license expiration date.        "Proctored" "independently proctored" means the supervision by a CE provider or licensed producerdisinterested third party over the conduct of a producer while that producer is completing an examination that is part of a self-study CE course.

    ITEM 4.    Adopt the following new in rule 191—11.2(505,522B):        "Producer" "insurance producer" means a person required to be licensed in this state to sell, solicit or negotiate insurance.

    ITEM 5.    Amend subrule 11.3(7) as follows:    11.3(7)   A producer may elect to comply with the CE requirements by taking and passing the appropriate licensing examination for each qualification held by the producer.    a.    A producer who holds property and casualty lines of authority (authority numbers 21 and 22) must successfully complete the commercial insurance subject examination.    b.    A producer who holds an excess and surplus line of authority must successfully complete the examination for the excess and surplus line of authority (authority number 20) and the commercial insurance subject examination.

    ITEM 6.    Rescind subrule 11.3(8) and adopt the following new subrule in lieu thereof:    11.3(8)   For a resident producer who holds qualification only for a crop insurance line of authority and who is requesting renewal of a producer license on or after January 1, 2010, the producer must be able to demonstrate the following each time renewal of a license is requested:    a.    The producer has completed all training and continuing education requirements imposed by the federal Risk Management Association, if any; and     b.    The producer has completed 18 credits of continuing education, 3 of which must be in the area of ethics, except that a producer who is requesting renewal of a producer license during 2010 must demonstrate that the producer has completed 9 credits of continuing education, 3 of which must be in the area of ethics.

    ITEM 7.    Amend rule 191—11.4(505,522B) as follows:

191—11.4(505,522B) Proof of completion of continuing education requirements.      11.4(1) Producer duties.      a.    Producers are required to demonstrate compliance with the CE requirements at the time of license renewal. Procedures for completing the license renewal process are outlined in 191—Chapter 10.    b.    Producers are required to maintain a record of all CE courses completed by keeping the original certificates of completion for four years after the end of the year of attendance.    11.4(3)   Waiver or extension. Rescinded IAB 10/25/06, effective 11/29/06.    11.4(2) Insurer duties regarding federal flood insurance.  An insurer authorized to do business in Iowa shall demonstrate to the division, upon the division’s request, that producers appointed by the insurer have complied with all continuing education guidelines as established by the National Flood Insurance Program (NFIP).

    ITEM 8.    Amend subrule 11.10(8) as follows:    11.10(8)   CE providers must submit rosters of all course attendees to the divisiondivision's outside vendor. These reports must be received at the division by the tenth day of the month following the month in which the course is completed. Rosters shall be submitted electronically in a manner prescribed by the division.
ARC 7205BInsurance Division[191]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 507B.12, the Insurance Division hereby gives Notice of Intended Action to amend Chapter 15, “Unfair Trade Practices,” Iowa Administrative Code.    The rules in Chapter 15 establish certain minimum standards and guidelines of conduct by identifying unfair methods of competition and unfair or deceptive acts or practices in the business of insurance, as prohibited by Iowa Code chapter 507B. The proposed amendment to the rules is intended to add as a prohibited designation the use of designations prohibited by proposed new rule 191—10.19(522B), Use of Senior-Specific Certifications and Professional Designations in the Sale of Life Insurance and Annuities, prohibited herein in ARC 7201B. This amendment is intended to be effective January 1, 2009.    Any interested person may make written suggestions or comments on these proposed amendments on or before October 14, 2008. Such written materials should be directed to Ann Outka, Iowa Insurance Division, 330 Maple Street, Des Moines, Iowa 50319; fax (515)281-3059.    Also, there will be a public hearing on October 14, 2008, at 10 a.m. at the offices of the Iowa Insurance Division, 330 Maple Street, Des Moines, Iowa 50319, at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the amendment.    Any persons who intend to attend the public hearing and have special requirements, such as those relating to hearing or mobility impairments, should contact the Division and advise of specific needs.    This amendment is intended to implement Iowa Code chapter 522B.    The following amendment is proposed.

    ITEM 1.    Adopt the following new paragraph 15.8(3)"e" as follows:    e.    Producers shall comply with rule 191—10.19(522B) in using senior-specific certifications and professional designations in the sale of life insurance and annuities.
ARC 7207BInsurance Division[191]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code sections 505.8 and 514D.9, Iowa Code chapter 514G, and 2008 Iowa Acts, House File 2694, section 12, the Insurance Division hereby gives Notice of Intended Action to amend Chapter 39, “Long-Term Care Insurance,” Iowa Administrative Code.    Iowa Code chapter 514G and 2008 Iowa Acts, House File 2694, among other things, establish standards for long-term care insurance, including a mechanism for the independent review of insurance companies’ determinations regarding whether an insured has met the necessary conditions to have benefits paid. The Iowa Insurance Commissioner has the authority to adopt rules for administering the independent review process of insurers' benefit trigger determinations, pursuant to 2008 Iowa Acts, House File 2694, section 12. The proposed rules will provide further guidance as to how the independent review process will operate. The Division intends that the rules will become effective January 1, 2009, and that insurance producers and companies must be able to demonstrate compliance by January 1, 2009.    Any interested person may make written suggestions or comments on these proposed amendments on or before October 14, 2008. Such written materials should be directed to Rosanne Mead, Assistant Insurance Commissioner, Iowa Insurance Division, 330 Maple Street, Des Moines, Iowa 50319; fax (515)281-3059.    Also, there will be a public hearing on October 14, 2008, at 11 a.m. at the offices of the Iowa Insurance Division, 330 Maple Street, Des Moines, Iowa 50319, at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the amendments.    Any persons who intend to attend the public hearing and have special requirements, such as those relating to hearing or mobility impairments, should contact the Division and advise of specific needs.    These amendments are intended to implement Iowa Code chapter 514D and chapter 514G as amended by 2008 Iowa Acts, House File 2694.    The following amendments are proposed.

    ITEM 1.    Insert the following new heading before rule 191—39.1(514G): DIVISION I

    ITEM 2.    Reserve rules 191---39.33 to 191—39.40.

    ITEM 3.    Insert the following new heading before rule 191---39.41(514G):DIVISION II INDEPENDENT REVIEW OF BENEFIT TRIGGER DETERMINATIONS

    ITEM 4.    Adopt the following new rules 191—39.41(514G) to 191—39.55(514G):

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

191—39.42(514G) Effective date.   The rules contained in this division shall apply to all long-term care insurance claims made on or after January 1, 2009, which are denied based on a benefit trigger determination.

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

191—39.44(514G) Notice of benefit trigger determination and content.  The notice required by 2008 Iowa Acts, House File 2694, section 10, shall contain the following information:
  1. The reason that the insurer determined that the policy benefit trigger has not been met by the insured.
  2. A description of the internal appeal mechanism provided under the long-term care policy.
  3. A description of how the insured, after exhausting the insurer’s internal appeal process, has the right to have the benefit trigger determination reviewed under the independent review process required by 2008 Iowa Acts, House File 2694, section 11.

191—39.45(514G) Notice of internal appeal decision and right to independent review.  Upon the conclusion of the internal appeal mechanism specified in 2008 Iowa Acts, House File 2694, section 10, the notice required in 2008 Iowa Acts, House File 2694, section 10, shall contain the following information:    39.45(1)   A description of additional internal appeal rights, if any, offered by the insurer.    39.45(2)   A description of how the insured can request independent review of the benefit trigger determination. Such description must specify the following:    a.    The insured must submit a written request within 60 days of the insured's receiving written notice of the insurer’s internal appeal decision;    b.    The request must be made to the Iowa Insurance Division, 330 Maple Street, Des Moines, Iowa 50319;    c.    A copy of the insurer’s benefit trigger determination letter must accompany the written request for an independent review;    d.    A $25 filing fee is required unless the insured is requesting that the fee be waived. The check should be made payable to the Iowa Insurance Division. If a waiver is requested, the request shall include an explanation for the insured's request that the fee be waived.

191—39.46(514G) Independent review request.       39.46(1)   The insured shall send a copy of the insurer’s notice explaining why the benefit trigger has not been met, with the insured’s request for an independent review, to the insurance commissioner within 60 days of receipt of the benefit trigger determination. The notice shall be sent to the commissioner at the Iowa Insurance Division, 330 Maple Street, Des Moines, Iowa 50319.    39.46(2)   A $25 filing fee shall be enclosed with the independent review request. The commissioner may waive the fee for good cause.

191—39.47(514G) Certification process.      39.47(1)   The commissioner shall provide written notice of the certification decision to the insurer and the insured within the two-business-day period specified in 2008 Iowa Acts, House File 2694, section 11.    39.47(2)    The insurer may appeal the commissioner’s certification decision within three business days after receiving notice of the decision. The commissioner shall review any such appeal and promptly notify the insured and the insurer of the commissioner’s decision.

191—39.48(514G) Selection of independent review entity.      39.48(1)   Within three business days of receiving the commissioner’s certification decision, the insurer shall:    a.    Select an independent review entity from the list certified by the commissioner;    b.    Notify the insured in writing of the name, address, and telephone number of the independent review entity;    c.    Notify the independent review entity of its selection and provide the independent review entity with sufficient information to allow selection of qualified licensed health care professionals to conduct the independent review;    d.    Provide the commissioner with copies of the notices required by this subrule.    39.48(2)   Within three business days of receiving the notice specified in subrule 39.48(1), the independent review entity shall do one of the following:    a.    Accept its selection, designate a qualified licensed health care professional to perform the independent review, and notify the insured and insurer, with a copy to the commissioner, of the designation, the qualifications of the qualified licensed health care professional, and the reasons why the licensed health care professional is qualified to conduct the independent review;    b.    Decline its selection and provide notice to the commissioner, the insured, and the insurer of the declination. The insurer shall have three business days after receipt of the declination notice to designate a different independent review entity pursuant to subrule 39.48(1); or     c.    Request that the commissioner grant the independent review entity additional time to have a qualified licensed health care professional certified and provide notice of such request to the insured, the insurer, and the commissioner. Within three business days of such a request, the commissioner shall notify the insured, the insurer, and the independent review entity how to proceed.    39.48(3)   Within ten days of receiving the notice specified in paragraph 39.48(1)“b,” an insured may object to the independent review entity selected by the insurer or the licensed health care professional selected by the independent review entity. Such an objection shall state the reasons for the objection with particularity. The objection shall be sent to the commissioner, and a copy shall be sent to the insurer. The commissioner shall notify the insured, the insurer, and the independent review entity of the commissioner's decision within two business days of receipt of the objection.

191—39.49(514G) Independent review process.      39.49(1)   Within five business days of receiving either the notice provided in paragraph 39.48(1)“b,” or the denial of an objection made pursuant to subrule 39.48(3), whichever is later, the insured may submit any additional information or documentation in support of the insured’s claim to both the independent review entity and the insurer.    39.49(2)   Within 15 days of receiving the notice provided in paragraph 39.48(1)“b,” or within three business days of receiving notice of the denial of an objection made pursuant to subrule 39.48(3), whichever is later, an insurer shall:    a.    Provide the independent review entity with any information submitted to the insurer by the insured during the insurer’s internal appeal process relating to the benefit trigger determination that is the subject of the independent review proceeding;    b.    Provide the independent review entity with any other relevant documents used by the insurer in making its benefit trigger determination; and    c.    Provide the commissioner and the insured with confirmation that the information required by this subrule was submitted to the independent review entity, including the date such information was submitted.    39.49(3)   The independent review entity shall not commence its review of the insurer’s benefit trigger determination until 15 business days after either the independent review entity receives the notice of its selection specified in paragraph 39.48(1)“c” or the resolution of any objection made pursuant to subrule 39.48(3), whichever is later.    39.49(4)   During the time period specified in subrule 39.48(3), the insurer may consider any information provided by the insured pursuant to subrule 39.49(1) and affirm or overturn the insurer’s benefit trigger determination. If the insurer overturns its benefit trigger determination:    a.    The insurer shall provide notice to the independent review entity, the commissioner, and the insured of the insurer’s decision; and    b.    The independent review process shall immediately cease.

191—39.50(514G) Decision notification.      39.50(1)   The independent review entity shall immediately notify the insurer, the insured, and the commissioner of the independent review decision either affirming or overturning the insurer’s benefit trigger determination. The initial notification shall be delivered by telephone or fax transmission, and a written copy of the decision notification delivered by regular mail. The written copy of the decision shall include a description of the basis for the independent review entity’s decision.     39.50(2)   If the independent review entity overturns the insurer’s decision, the independent review entity shall include all of the following in the decision:    a.    The precise date that the benefit trigger was deemed to have been met;    b.    The specific period of time under review for which the insurer declined eligibility but during which the independent review entity determined that the benefit trigger was met;    c.    For qualified long-term care insurance contracts, a certification made only by a licensed health care practitioner that the insured is a chronically ill individual.

191—39.51(514G) Insurer information.      39.51(1)   No later than January 1, 2009, each insurer delivering or issuing for delivery long-term care insurance policies in this state on or after July 1, 2008, shall provide the commissioner the name or title, telephone and fax numbers and E-mail address of an individual who shall be the insurer’s contact person for independent review procedures and matters. Any changes in personnel or communication numbers shall be immediately communicated to the commissioner.    39.51(2)   Each insurer shall provide the commissioner a detailed description of the process that the insurer has in place to ensure compliance with the requirements of this division and of 2008 Iowa Acts, House File 2694, sections 10 and 11. The description required by this subrule shall be filed in a format as directed by the commissioner on or before March 1, 2009, and thereafter as requested by the commissioner. The description shall include:    a.    An explanation of how the insurer determines when an insured has qualified for independent review of the benefit trigger decision and should receive a notice from the insurer,     b.    A copy of the notice sent to insureds who fall within the scope of the law, and    c.    An explanation of the internal appeal process.

191—39.52(514G) Certification of independent review entity.  The following minimum standards are required for certification as an independent review entity:    39.52(1)   The entity shall ensure that any licensed health care professional on its staff who participates in an independent review proceeding holds a current unrestricted license or certification to practice a health care profession in the United States.    39.52(2)   The entity shall ensure that any licensed health care professional on its staff who participates in an independent review proceeding and who is a physician holds a current certification by a recognized American medical specialty board in a specialty appropriate for determining an insured’s functional or cognitive impairment.     39.52(3)   The entity shall ensure that any licensed health care professional on its staff who participates in an independent review proceeding and who is not a physician holds a current certification in the specialty in which that person is licensed by a recognized American specialty board in a specialty appropriate for determining an insured’s functional or cognitive impairment.    39.52(4)   The entity shall ensure that any licensed health care professionals on its staff who participate in an independent review proceeding have no history of disciplinary actions or sanctions including, but not limited to, the loss of staff privileges or any participation restriction taken or pending by any hospital or state or federal government regulatory agency for wrongdoing by the health care professional.    39.52(5)   The entity shall ensure that neither the entity, nor any of its employees, agents, or licensed health care professionals utilized, receive compensation of any type that is dependent on the outcome of the review.    39.52(6)   The entity shall ensure that neither the entity, nor any of its employees, agents, or licensed health care professionals utilized, are in any manner related to, employed by, or affiliated with the insured or with a person who previously provided medical care to the insured.    39.52(7)   The entity shall provide a description of the qualifications of the reviewers retained to conduct independent review of long-term care insurance benefit trigger decisions, including the reviewers’ employment histories and practice affiliations for at least the prior ten years, and a description of past experience with decisions relating to long-term care, functional capacity, and dependency in activities of daily living, or in assessing cognitive impairment.    39.52(8)   The entity shall provide a description of the procedures employed to ensure that reviewers conducting independent reviews are appropriately: licensed, registered or certified; trained in the principles, procedures and standards of the independent review entity; knowledgeable about the functional or cognitive impairments associated with the diagnosis and disease staging processes, including expected duration of such impairment; and knowledgeable and experienced in diagnosing a person as a “chronically ill individual” as defined in Section 7702B(c)(2) of the Internal Revenue Code.    39.52(9)   The entity shall provide a description of the evaluation tools the entity would use to conduct a review of a long-term care insurance benefit trigger decision.    39.52(10)   The entity shall provide a description of the methods of recruiting and selecting impartial reviewers and matching such reviewers to specific cases.    39.52(11)   The entity shall provide the number of reviewers retained by the independent review entity and a description of the areas of expertise available from such reviewers and the types of cases such reviewers are qualified to review (e.g., assessment of cognitive impairment or inability to perform activities of daily living due to a loss of functional capacity).    39.52(12)   The entity shall provide a description of the policies and procedures employed to protect confidentiality of individual personally identifiable health information in accordance with applicable state and federal laws.     39.52(13)   The entity shall provide a description of the quality assurance program established by the independent review entity.     39.52(14)   The entity shall provide the names of all corporations and organizations owned or controlled by the independent review entity or which own or control the entity, and the nature and extent of any such ownership or control. The entity must ensure that neither the entity, nor any of its employees, agents, or licensed health care professionals utilized, are a subsidiary of, or owned or controlled by, an insurer or by a trade association of insurers of which the insurer is a member.    39.52(15)   The entity shall provide the names and résumés of all directors, officers and executives of the entity.    39.52(16)   The entity shall provide a description of the fees to be charged by the entity for independent reviews of a long-term care insurance benefit trigger decision.    39.52(17)   The entity shall provide the name of the medical director or health professional director responsible for the supervision and oversight of the independent review procedure.    39.52(18)   The entity must have on staff or contract with a licensed health care practitioner who is qualified to certify that an individual is chronically ill for purposes of a qualified long-term care insurance contract.

191—39.53(514G) Additional requirements.   The independent review entity shall develop and maintain written policies and procedures governing all aspects of the independent review process. The written policies and procedures include, but are not limited to, the following:    39.53(1)   Procedures to ensure that independent reviews are conducted within the time frames specified in this division and Iowa Code chapter 514G as amended by 2008 Iowa Acts, House File 2694, and that any required notices are provided in a timely manner.    39.53(2)   Procedures to ensure the selection of qualified and impartial reviewers. The reviewers shall be qualified to render impartial determinations relating to the benefit trigger which is the subject of the benefit trigger decision under review (e.g., assessment of cognitive impairment or inability to perform activities of daily living due to a loss of functional capacity) and be deemed experts in the assessment of such benefit trigger.    39.53(3)   Procedures to ensure that the insured is notified in writing of the insured's right to object to the independent review entity selected by the insurer or to the licensed health care professional designated by the independent review entity to conduct the review by filing a notice of objection, along with the reasons for the objection, with the commissioner at the Iowa Insurance Division, 330 Maple Street, Des Moines, Iowa 50319, within ten days of the receipt of a notice from the independent review entity.    39.53(4)   Procedures to ensure the confidentiality of protected health information records and review materials, in accordance with federal and state law.    39.53(5)   Procedures to ensure adherence to the requirements of this division and Iowa Code chapter 514G as amended by 2008 Iowa Acts, House File 2694, by any contractor, subcontractor, subvendor, agent or employee affiliated with the independent review entity.    39.53(6)   Policies and procedures establishing a quality assurance program. The program shall include a written description to be provided to all individuals involved in the program, the organizational arrangements, and the ongoing procedures for the identification, evaluation, resolution and follow-up of potential and actual problems in independent reviews performed by the independent review entity and procedures to ensure the maintenance of program standards pursuant to this requirement.

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

191—39.55(514G) Insurance division application and reports.  The independent review entity shall provide the commissioner such data, information, and reports as the commissioner determines necessary to evaluate the independent review process established under Iowa Code chapter 514G as amended by 2008 Iowa Acts, House File 2694. An application for certification as an independent review entity must be submitted in duplicate to the Iowa Insurance Division, 330 Maple Street, Des Moines, Iowa 50319. An application must be submitted in full to be considered. Every applicant will be notified of the certification decision. A list of certified independent review entities shall be maintained at the insurance division and shall be available through the division's Web site, www.iid.state.ia.us.

    ITEM 5.    Amend 191—Chapter 39, as follows:       These rules are intended to implement Iowa Code section 514D.9 and Iowa Code chapter 514G as amended by 2008 Iowa Acts, House File 2694.
ARC 7200BInsurance Division[191]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code sections 505.8 and 514D.9, Iowa Code chapter 514G, and 2008 Iowa Acts, House File 2694, section 12, the Insurance Division hereby gives Notice of Intended Action to amend Chapter 39, “Long-Term Care Insurance,” Iowa Administrative Code.    The chapter, among other things, promotes the availability of long-term care insurance and establishes standards for long-term care insurance. The Iowa Insurance Commissioner has the authority to adopt rules for full and fair disclosure of the terms and benefits of a long-term care insurance policy and for establishing standard provisions for terms and benefits required to be included in a long-term care insurance policy, pursuant to Iowa Code sections 514D.9 and 514G.7(1)(2007) and 2008 Iowa Acts, House File 2694, section 12.    In 2003, Iowa adopted updates to the National Association of Insurance Commissioners model act regarding long-term care insurance. One provision of the model requires insurers to meet more stringent standards to justify a premium rate increase for a long-term care insurance policy issued after 2003. The proposed subrule will provide a key part of those same protections to consumers when insurers seek premium rate increases for policies issued prior to 2003. Under the proposed subrule, when an insurer raises premiums, the insurer will be required to offer a reduced benefit option and, under certain circumstances, a contingent benefit upon lapse. The Division intends that the subrule will become effective January 1, 2009, and that insurance producers and companies must be able to demonstrate compliance by January 1, 2009.    Any interested person may make written suggestions or comments on this proposed amendment on or before October 14, 2008. Such written materials should be directed to Rosanne Mead, Assistant Insurance Commissioner, Iowa Insurance Division, 330 Maple Street, Des Moines, Iowa 50319; fax (515)281-3059.    Also, there will be a public hearing on October 14, 2008, at 10:30 a.m. at the offices of the Iowa Insurance Division, 330 Maple Street, Des Moines, Iowa 50319, at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the amendment.    Any persons who intend to attend the public hearing and have special requirements, such as those relating to hearing or mobility impairments, should contact the Division and advise of specific needs.    This amendment is intended to implement Iowa Code chapters 514D and 514G and Iowa Code Supplement section 505.8 as amended by 2008 Iowa Acts, House File 2694, section 1.    The following amendment is proposed.

    ITEM 1.    Adopt the following new subrule 39.29(14):    39.29(14)   Notwithstanding subrule 39.29(10), if an insurer requests a premium rate increase on any long-term care policy issued prior to February 1, 2003, the commissioner shall require as a condition of approval of such premium rate increase that the insurer provide notice to all affected policyholders and certificate holders that, in lieu of the requested premium rate increase, the insured may opt for one of the following:    a.    A reduced benefit. The insurer may limit any reduction in coverage to plans or options available for that policy form and to those for which benefits will be available after consideration of claims paid or payable. The age used to determine the premium for the reduced coverage shall be based on the age used to determine the premiums for the coverage currently in force. The reduced benefit offered may include one or more of the following:    (1)   A reduced daily, weekly, or monthly benefit;    (2)   A longer waiting period;    (3)   A reduced benefit period or a reduced maximum lifetime benefit; or    (4)   Any other benefit or coverage reduction option consistent with the policy or certificate design or the carrier's administrative processes.    b.    A contingent benefit upon lapse as described in subrules 39.29(7), 39.29(8), 39.29(9), and 39.29(12) if the requested premium rate increase results in a cumulative increase of the annual premium equal to or exceeding the percentage of the insured’s initial annual premium set forth in paragraph 39.29(6)“c.”    c.    Any other alternative mechanism filed by the insurer and approved by the commissioner.
ARC 7190BInsurance Division[191]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 502.605(1), the Insurance Division hereby gives Notice of Intended Action to amend Chapter 50, “Regulation of Securities Offerings and Those Who Engage in the Securities Business,” Iowa Administrative Code.    These amendments propose a new rule 191—50.54(502) and amendments to subrules 50.16(2) and 50.38(1) to include a reference to the proposed new rule which prohibits the use of a senior- specific certification or designation in connection with the offer, sale or purchase of securities or the provision of advice as to the advisability of investing in, purchasing or selling securities. Publications, issuance or promulgation of writings, analyses or reports relating to securities that indicate or imply that the user has special certification or training in advising or servicing senior citizens or retirees in such a way as to mislead any person shall be a dishonest and unethical practice in the securities business. The rule provides examples of misleading designations. The rule is based on a model developed by the North American Securities Administrators Association. The rule complements a similar rule for insurance producers developed by the National Association of Insurance Commissioners.    Any interested person may make written comments on the proposed rule on or before October 14, 2008. Written comments may be sent to Craig Goettsch, Insurance Division, 330 Maple Street, Des Moines, Iowa 50319. Comments may also be submitted by fax to (515)281-3059 or electronically to craig.goettsch@iid.iowa.gov.    These amendments are intended to implement Iowa Code section 502.605(1).    The following amendments are proposed.

    ITEM 1.    Adopt the following new paragraph 50.16(2)"j":    j.    Engaging in conduct deemed dishonest or unethical in rule 191—50.54(502).

    ITEM 2.    Adopt the following new paragraph 50.38(1)"y":    y.    Engaging in conduct deemed dishonest or unethical in rule 191—50.54(502).

    ITEM 3.    Adopt the following new rule 191—50.54(502):

191—50.54(502) Use of senior-specific certifications and professional designations.      50.54(1)   The use of a senior-specific certification or designation by any person in connection with the offer, sale, or purchase of securities or the provision of advice as to the value of or the advisability of investing in, purchasing, or selling securities, either directly or indirectly or through publications or writings, or by issuing or promulgating analyses or reports relating to securities, that indicate or imply that the user has special certification or training in advising or servicing senior citizens or retirees in such a way as to mislead any person shall be a dishonest and unethical practice in the securities, commodities, investment, franchise, banking, finance, or insurance business within the meaning of Iowa Code section 502.412(4)“m.” The prohibited use of such certifications or professional designation includes, but is not limited to, the following:    a.    Use of a certification or professional designation by a person who has not actually earned or is otherwise ineligible to use such certification or designation;    b.    Use of a nonexistent or self-conferred certification or professional designation;    c.    Use of a certification or professional designation that indicates or implies a level of occupational qualifications obtained through education, training, or experience that the person using the certification or professional designation does not have; and    d.    Use of a certification or professional designation that was obtained from a designating or certifying organization that:    (1)   Is primarily engaged in the business of instruction in sales or marketing;    (2)   Does not have reasonable standards or procedures for ensuring the competency of its designees or certificants;    (3)   Does not have reasonable standards or procedures for monitoring and disciplining its designees or certificants for improper or unethical conduct; or    (4)   Does not have reasonable continuing education requirements for its designees or certificants in order to maintain the designation or certificate.    50.54(2)   There is a rebuttable presumption that a designating or certifying organization is not disqualified solely for purposes of 50.54(1)“d” when the organization has been accredited by:    a.    The American National Standards Institute;     b.    The National Commission for Certifying Agencies; or    c.    An organization that is on the United States Department of Education’s list entitled “Accrediting Agencies Recognized for Title IV Purposes” and the designation or credential issued therefrom does not primarily apply to sales or marketing.    50.54(3)   In determining whether a combination of words or an acronym standing for a combination of words constitutes a certification or professional designation indicating or implying that a person has special certification or training in advising or servicing senior citizens or retirees, the administrator shall consider the following factors:    a.    Use of one or more words such as “senior,” “retirement,” “elder,” or similar words combined with one or more words such as “certified,” “registered,” “chartered,” “adviser,” “specialist,” “consultant,” “planner,” or similar words in the name of the certification or professional designation; and    b.    The manner in which those words are combined.    50.54(4)   For purposes of this rule, a certification or professional designation does not include a job title within an organization that is licensed or registered by a state or federal financial services regulatory agency, when that job title:    a.    Indicates seniority or standing within the organization; or    b.    Specifies an individual’s area of specialization within the organization.For purposes of this subrule, financial services regulatory agency includes, but is not limited to, an agency that regulates broker-dealers, investment advisers, or investment companies as defined under the Investment Company Act of 1940.    50.54(5)   Nothing in this rule shall limit the administrator’s authority to enforce existing provisions of law.This rule is intended to implement Iowa Code section 502.605(1).
ARC 7195BPharmacy Board[657]Notice of Termination

    Pursuant to the authority of Iowa Code section 147.76, the Board of Pharmacy terminates the rule making initiated by its Notice of Intended Action published in the Iowa Administrative Bulletin on July 2, 2008, as ARC 6868B, proposing to amend Chapter 3, “Pharmacy Technicians," Iowa Administrative Code.    The Notice proposed to add, delete, and modify various definitions relating to national certification of pharmacy technicians, recognize certification from either of two certification entities if that certification is attained and maintained prior to July 1, 2010, and to establish requirements for accreditation of national certification entities that will be accepted beginning July 1, 2010.    The amendments proposed in the Notice were also Adopted and Filed Emergency and published in the Iowa Administrative Bulletin on July 2, 2008, as ARC 6867B. The Board is terminating the rule making commenced in ARC 6868B. No comments were received relating to the Notice, and the rules became effective on July 9, 2008.

ARC 7191BPharmacy Board[657]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 147.76, the Board of Pharmacy hereby gives Notice of Intended Action to amend Chapter 13, “Sterile Compounding Practices,” Iowa Administrative Code.    This amendment was approved at the July 29, 2008, regular meeting of the Board of Pharmacy.    The proposed amendment clarifies the requirements for a supervising pharmacist to perform in-process checks of compounding functions performed by a nonpharmacist and the requirements for documentation of that verification.    Requests for waiver or variance of the discretionary provisions of Board rules will be considered pursuant to 657—Chapter 34.    Any interested person may present written comments, data, views, and arguments on the proposed amendment not later than 4:30 p.m. on October 14, 2008. Such written materials may be sent to Terry Witkowski, Executive Officer, Board of Pharmacy, 400 S.W. Eighth Street, Suite E, Des Moines, Iowa 50309-4688; or by E-mail to terry.witkowski@iowa.gov.    This amendment is intended to implement Iowa Code sections 155A.2, 155A.6A, 155A.13, and 155A.33.    The following amendment is proposed.

    ITEM 1.    Amend subrule 13.3(2) as follows:    13.3(2) In-process checking procedure.  Each pharmacy shall establish a written quality assurance procedure that includes the following in-process checks:    a.    Appropriate procedures are followed for measuring, mixing, diluting, purifying, sterilizing, packaging, and labeling of the specific preparation.    b.    Packaging selection is appropriate to preserve the sterility and strength of the preparation.    c.    AllIf functions are performed by nonpharmacists are verified bya nonpharmacist, the pharmacist before the preparation is dispensed to the patientshall verify the accuracy of the procedure at each step during the compounding process. Documentation that identifies the individual performing each step of the compounding process and the pharmacist verifying the accuracy of each step of the process shall be maintained and be available for inspection and copying by the board or its representative for at least two years.    d.     If an electronic record capable of identifying each component and measurement required in the compounding process is created and utilized, pharmacist verification shall be completed before the preparation is dispensed to the patient. Documentation that identifies the individual performing each step of the compounding process and the pharmacist verifying the accuracy of the compounding process shall be maintained and be available for inspection and copying by the board or its representative for at least two years.
ARC 7194BPharmacy Board[657]Notice of Termination

    Pursuant to the authority of Iowa Code section 147.76, the Board of Pharmacy terminates the rule making initiated by its Notice of Intended Action published in the Iowa Administrative Bulletin on July 2, 2008, as ARC 6870B, proposing to amend Chapter 18, “Centralized Prescription Filling and Processing,” Iowa Administrative Code.    The Notice proposed to define “mail order pharmacy” and to require that a pharmacist providing central fill or central processing functions as an employee of a licensed pharmacy located in Iowa must be licensed to practice pharmacy in Iowa. The Notice also proposed to exempt from the requirement to return a centrally filled prescription to the originating pharmacy for delivery to the patient if the central fill pharmacy is a mail order pharmacy and provides that a central fill or central processing pharmacy sharing a common central processing unit with an originating pharmacy may perform drug use review, subject to specific requirements of subrule 18.3(3), paragraph “b.”    The amendments proposed in the Notice were also Adopted and Filed Emergency and published in the Iowa Administrative Bulletin on July 2, 2008, as ARC 6869B. The Board is terminating the rule making commenced in ARC 6870B. No comments were received relating to the Notice, and the amendments became effective on July 9, 2008.

    ITEM 1.    Amend rule 657—18.2(155A), as follows:

657—18.2(155A) Definitions.  For the purposes of this chapter, the following definitions shall apply:
ARC 7165BProfessional Licensure Division[645]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 147.53, the Professional Licensure Division hereby gives Notice of Intended Action to amend Chapter 4, “Board Administrative Processes,” Iowa Administrative Code.    The proposed amendments to Chapter 4 remove the requirement that a board elect a secretary and replace the rule that pertains to physical, mental, and clinical competency examinations and alcohol or drug screenings. These amendments are proposed in order to ensure that the rules are consistent with statute.    Any interested person may make written comments on the proposed amendments no later than October 14, 2008, addressed to Pierce Wilson, Professional Licensure Division, Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319-0075; E-mail pwilson@idph.state.ia.us.    A public hearing will be held on October 14, 2008, from 9 to 9:30 a.m. in the Fifth Floor Board Conference Room, Lucas State Office Building, Des Moines, Iowa, at which time persons may present their views either orally or in writing. It is requested, though not required, that oral presentations also be shared in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the proposed amendments.    These amendments are intended to implement Iowa Code chapter 272C.    The following amendments are proposed.

    ITEM 1.    Amend subrule 4.3(2) as follows:    4.3(2)   Each board shall elect a chairperson,and vice chairperson, and secretary from its membership at the first meeting after April 30 of each year.

    ITEM 2.    Rescind rule 645—4.15(272C) and adopt the following new rule in lieu thereof:

645—4.15(147,272C) Order for physical, mental, or clinical competency examination or alcohol or drug screening.  A licensee who is licensed by the board is, as a condition of licensure, under a duty to submit to a physical, mental, or clinical competency examination, including alcohol or drug screening, within a time specified by order of the board. Such examination may be ordered upon a showing of probable cause and shall be at the licensee’s expense.    4.15(1) Content of order.  A board order for a physical, mental, or clinical competency examination shall include the following items:    a.    A description of the type of examination to which the licensee must submit.    b.    The name and address of the examiner or of the evaluation or treatment facility that the board has identified to perform the examination on the licensee.    c.    The time period in which the licensee must schedule the required examination.    d.    The amount of time which the licensee has to complete the examination.    e.    A requirement that the licensee sign necessary releases for the board to communicate with the examiner or the evaluation or treatment facility.    f.    A requirement that the licensee cause a report of the examination results to be provided to the board within a specified period of time.    g.    A requirement that the licensee communicate with the board regarding the status of the examination.    h.    A concise statement of the facts relied on by the board to order the evaluation.    4.15(2) Alternatives.  Following issuance of the examination order, the licensee may request additional time to schedule or complete the examination or may request the board approve an alternative examiner or treatment facility. The board in its sole discretion shall determine whether to grant such a request.    4.15(3) Objection to order.   A licensee who is the subject of a board order and who objects to the order may file a request for hearing. The request for hearing must be filed within 30 days of the date of the examination order, and the request for hearing shall specifically identify the factual and legal issues upon which the licensee bases the objection. A licensee who fails to timely file a request for hearing to object to an examination order waives any future objection to the examination order in the event formal disciplinary charges are filed for failure to comply with the examination order or on any other grounds. The hearing shall be considered a contested case proceeding and shall be governed by the provisions of 645—Chapter 11. On judicial review of a board decision in a contested case involving an objection to an examination order, the case will be captioned in the name of Jane Doe or John Doe to maintain the licensee’s confidentiality.     4.15(4) Closed hearing.  Any hearing on an objection to the examination order shall be closed pursuant to Iowa Code section 272C.6(1).    4.15(5) Order and reports confidential.  An examination order, and any subsequent examination reports issued in the course of a board investigation, are confidential investigative information pursuant to Iowa Code section 272C.6(4). However, all investigative information regarding the examination order shall be provided to the licensee in the event the licensee files an objection, under 4.15(3), in order to allow the licensee an opportunity to prepare for hearing.     4.15(6) Admissibility.   In the event the licensee submits to evaluation and subsequent proceedings are held before the board, all objections shall be waived as to the admissibility of the examining physicians’ or health care providers’ testimony or examination reports on the grounds that they constitute privileged communication. The medical testimony or examination reports shall not be used against the licensee in any proceeding other than one relating to licensee discipline by the board.    4.15(7) Failure to submit.   Failure of a licensee to submit to a board-ordered mental, physical, or clinical competency examination or to submit to alcohol or drug screening constitutes a violation of the rules of the board and is grounds for disciplinary action.
ARC 7156BProfessional Licensure Division[645]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 147.76, the Board of Hearing Aid Dispensers hereby gives Notice of Intended Action to rescind Chapter 120, “Administrative and Regulatory Authority for the Board of Examiners for the Licensing and Regulation of Hearing Aid Dispensers,” to amend Chapter 121, “Licensure of Hearing Aid Dispensers,” Chapter 122, “Continuing Education for Hearing Aid Dispensers,” and Chapter 124, “Discipline for Hearing Aid Dispensers,” and to rescind Chapter 125, “Fees,” Iowa Administrative Code.    These proposed amendments rescind chapters and rules that duplicate existing rules in 645—Chapters 4 and 5; eliminate outdated or duplicative language in the requirements for licensure, continuing education, and discipline; and revise grounds for discipline to be consistent with changes in Iowa Code chapter 147.    Any interested person may make written comments on the proposed amendments no later than October 14, 2008, addressed to Sharon Dozier, Professional Licensure Division, Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319-0075; E-mail sdozier@idph.state.ia.us.    A public hearing will be held on October 14, 2008, from 10 to 11 a.m. in the Fifth Floor Board Conference Room, Lucas State Office Building, at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the proposed amendments.    These amendments are intended to implement Iowa Code chapters 21, 147, 154A and 272C.    The following amendments are proposed.

    ITEM 1.    Rescind and reserve 645—Chapter 120.

    ITEM 2.    Strike the words “board of examiners for the licensing and regulation of hearing aid dispensers” wherever they appear in 645—Chapter 121645—Chapter 122645—Chapter 124 and insert the words “board of hearing aid dispensers” in lieu thereof:

    ITEM 3.    Rescind and reserve rules 645—121.7(154A), 645—121.12(154A,147) and 645—121.13(272C).

    ITEM 4.    Rescind and reserve rules 645—122.4(154A,272C) to 645—122.7(154A,272C).

    ITEM 5.    Amend subrule 124.2(3), as follows:    124.2(3)   Professional incompetencyincompetence. Professional incompetencyincompetence includes, but is not limited to:

    ITEM 6.    Amend subrule 124.2(16) as follows:    124.2(16)   Conviction of a felonycrime related to the profession or occupation of the licensee or the conviction of any felonycrime that would affect the licensee’s ability to practice as a hearing aid dispenser. A copy of the record of conviction or plea of guilty shall be conclusive evidence.

    ITEM 7.    Rescind and reserve rule 645—124.5(154A).

    ITEM 8.    Rescind and reserve 645—Chapter 125.
ARC 7158BProfessional Licensure Division[645]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 147.76, the Board of Physical and Occupational Therapy hereby gives Notice of Intended Action to rescind Chapter 199, “Administrative and Regulatory Authority for the Board of Physical and Occupational Therapy—Physical Therapy,” to amend Chapter 200, “Licensure of Physical Therapists and Physical Therapist Assistants,” Chapter 202, “Discipline for Physical Therapists and Physical Therapist Assistants,” and Chapter 203, “Continuing Education for Physical Therapists and Physical Therapist Assistants,” to rescind Chapter 204, “Fees,” and Chapter 205, “Administrative and Regulatory Authority for the Board of Physical and Occupational Therapy—Occupational Therapy,” to amend Chapter 206, “Licensure of Occupational Therapists and Occupational Therapy Assistants,” Chapter 207, “Continuing Education for Occupational Therapists and Occupational Therapy Assistants,” and Chapter 209, “Discipline for Occupational Therapists and Occupational Therapy Assistants,” and to rescind Chapter 210, “Fees,” Iowa Administrative Code.    These proposed amendments update practice requirements for physical and occupational therapy licensure and remove language that has been added to the common chapters for the Bureau of Professional Licensure.    Any interested person may make written comments on the proposed amendments no later than October 14, 2008, addressed to Judy Manning, Professional Licensure Division, Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319-0075; E-mail jmanning@idph.state.ia.us.    A public hearing will be held on October 14, 2008, from 9:30 to 10 a.m. in the Fifth Floor Board Conference Room, Lucas State Office Building, at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the proposed amendments.    These amendments are intended to implement Iowa Code chapters 21, 147, 148A, 148B and 272C.    The following amendments are proposed.

    ITEM 1.    Rescind and reserve 645—Chapter 199.

    ITEM 2.    Rescind and reserve rules 645—200.8(147) and 645—200.12(147) to 645—200.14(17A,147,272C)

    ITEM 3.    Rescind and reserve rule 645—202.5(148A).

    ITEM 4.    Rescind and reserve rules 645—203.4(148A,272C) to 645—203.7(148A,272C).

    ITEM 5.    Rescind and reserve 645—Chapter 204645—Chapter 205.

    ITEM 6.    Rescind and reserve rules 645—206.11(147) and 645—206.15(147) to 645—206.17(17A,147,272C).

    ITEM 7.    Rescind and reserve rules 645—207.4(148B,272C) to 645—207.7(148B,272C).

    ITEM 8.    Rescind and reserve rule 645—209.5(148B).

    ITEM 9.    Rescind and reserve 645—Chapter 210.
ARC 7171BPublic Health Department[641]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 714.16, the Department of Public Health hereby gives Notice of Intended Action to rescind Chapter 14, “Residential Water Treatment Systems,” and adopt new Chapter 14, “Water Treatment Systems,” Iowa Administrative Code.    The proposed rules describe the requirements for water treatment systems that are advertised or sold in Iowa and for which a claim is made that the system reduces health-related contaminants in drinking water. The rules also include the procedures and fees for the registration of water treatment systems.    The proposed rules were distributed among interested parties, including manufacturers, dealers, laboratories, the attorney general’s office, and the university hygienic laboratory in March 2008.    A summary of the major changes from the existing rules follows.    Definitions for “ANSI,” “drinking water,” “maximum contaminant level (MCL),” “performance indication device (PID),” and “surrogate” are added.    Definitions for “initial registration,” “performance testing” and “water treatment system” are revised.    The term “health-related contaminant” has been changed to “contaminant,” and the definition has been revised. The term “National Sanitation Foundation (NSF)” has been changed to “NSF,” and the definition has been revised.    The definition for “temporary registration” has been deleted.    Rule 641—14.4(714) has been rewritten to reference nationally recognized testing standards for water treatment systems and to clarify the submission and evaluation of testing protocols not specifically referenced in the rule. A minimum performance standard for water treatment systems was added. A requirement for retesting and submission of test data at least every five years has been added.    Rule 641—14.5(714) has been reorganized and a fee has been added for review of third-party testing agencies. The information required for evaluation of an agency has been added with provisions for a simplified application if an agency is nationally accredited. An appeal process for disapproval, conditions under which resubmission might be required, and a revocation procedure and appeal process have been added.    Rule 641—14.6(714) (formerly rule 641—14.8(714)) deletes the provisions for temporary registration, lists the information required for an application to register a water treatment system with relaxed provisions for systems tested by a nationally recognized agency, increases the fees for initial and renewal registration and establishes penalties for late renewal applications, and establishes the expiration date for initial registrations. Proposed subrule 14.6(3) requires submission of information about changes to a water treatment system or its trade names and sets a fee for review of the changes.    Rule 641—14.7(714) (formerly rule 641—14.6(714)) allows performance data sheets to be in accordance with national standards and the policies of nationally recognized testing agencies.    Proposed rule 641—14.9(714) requires that a water treatment system be registered before being sold in Iowa and that the performance data sheet and a consumer information booklet be given to the buyer before a sale is consummated. The rule prohibits false or deceptive claims and representations that a water treatment system is approved or endorsed by the state of Iowa.    Rule 641—14.11(714) (formerly rule 641—14.9(714)) has been amended to add criminal penalties as well as civil penalties.    Any interested person may make written suggestions or comments on the proposed rules on or before October 14, 2008. Written materials should be directed to Michael Magnant, Iowa Department of Public Health, 321 East 12th Street, Des Moines, Iowa 50319-0075; fax (515)281-4529; E-mail mmagnant@idph.state.ia.us.    There will be a public hearing on October 14, 2008, at 1 p.m. in the Fifth Floor Conference Room, Side 1 (Room 518), Lucas State Office Building, 321 East 12th Street, Des Moines, at which time persons may present their views either orally or in writing. 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 of Public Health and advise of specific needs.    These rules are intended to implement Iowa Code chapter 714.    The following amendment is proposed.

    ITEM 1.    Rescind 641—Chapter 14 and adopt the following new chapter in lieu thereof: CHAPTER 14WATER TREATMENT SYSTEMS

641—14.1(714) Purpose.  The purpose of these rules is to establish the requirements and procedures for the registration and sale of water treatment systems. These rules are established pursuant to Iowa Code section 714.16, which prohibits a person selling, leasing or renting, or advertising the sale, lease or rental of a water treatment system in Iowa from making false or deceptive representations that the water treatment system will reduce the concentration of one or more contaminants in drinking water.

641—14.2(714) Applicability.  The provisions of this chapter apply to the seller and manufacturer of a water treatment system offered for sale, lease, or rent in Iowa for which representations are made that the water treatment system will reduce the concentration of one or more contaminants in drinking water. Individual water treatment systems installed as central treatment for a public water system under the rules of the Iowa department of natural resources are not required to comply with these rules.

641—14.3(714) Definitions.          "Annual registration" means the renewal of registration of a water treatment system for years subsequent to the initial registration.        "ANSI" means the American National Standards Institute, 25 W. 43rd Street, New York, New York 10036. ANSI reviews and accredits testing agencies and the standards processes of agencies that generate and maintain product standards.        "Buyer" means the person to whom a water treatment system is being sold, leased, or rented.        "Consumer information pamphlet" means a publication which explains water quality, health effects, quality expectations for drinking water, and the effectiveness and functions of water treatment systems.        "Consummation of sale" means the completion of the act of selling, leasing, or renting. Where the water treatment system is ordered by telephone, mail, or Internet, “consummation of sale” means delivery.        "Contaminant" means any particulate, chemical, microbiological, or radiological substance or parameter in drinking water which has a potentially adverse health effect and for which a maximum contaminant level (MCL) has been established. “Contaminant” does not include chlorine, chloramine, or chlorine dioxide. A substance or parameter becomes a contaminant on the effective date of the United States Environmental Protection Agency (USEPA) rule establishing the MCL in the national primary drinking water regulation.        "Department" means the Iowa Department of Public Health, Lucas State Office Building, 321 E. 12th Street, Des Moines, Iowa 50319-0075.        "Drinking water" means water intended for human consumption.        "Initial registration" means the first registration of a water treatment system after performance testing.        "Label" means the written, printed, or graphic matter attached to or printed on the water treatment system so it is not likely to be separated during normal shipping and handling and that can only be removed with a purposeful effort by the owner.         "Manufacturer’s performance data sheet (PDS)" means a booklet, document, or other printed material that contains, at a minimum, the information required pursuant to Iowa Code section 714.16 and that meets the requirements of 641—14.7(714).        "Maximum contaminant level (MCL)," as used in these rules, means a maximum contaminant level, or an action level, or a treatment technique requirement established in lieu of a maximum contaminant level, as specified in the national primary drinking water regulations (40 CFR 141).        "NSF" means NSF International, 789 Dixboro Road, P.O. Box 130140, Ann Arbor, Michigan 48113-0140. NSF maintains performance and testing standards for water treatment systems.        "Performance indication device (PID)" means an automatic, effective means to warn the user when a water treatment system requires service, typically after a fixed time or volume of water.        "Performance testing" means:
  1. The third-party laboratory testing of a water treatment system in accordance with an approved performance testing protocol; or
  2. The testing of a water treatment system by the manufacturer in accordance with an approved performance testing protocol followed by an audit of the manufacturer’s performance testing facilities and data by a third-party testing agency.
        "Seller" means the person offering a water treatment system for sale, lease, or rent.        "State hygienic laboratory" means the University Hygienic Laboratory, University of Iowa, Oakdale Campus, Iowa City, Iowa 52242.        "Surrogate" means a substance or parameter that is reduced in concentration by a water treatment system and for which the reduction has been shown to reliably represent the reduction in concentration of one or more contaminants.        "Third-party testing agency" means an independent laboratory that is approved by the department to conduct performance testing of water treatment systems or to conduct audits of manufacturers’ performance testing facilities and data.        "Water treatment system" means a device or assembly for which a claim is made that it will improve the quality of public or private drinking water by reducing the concentration of one or more contaminants through mechanical, physical, chemical, or biological processes or a combination of processes. Each model of a water treatment system shall be deemed a distinct water treatment system.
  1. Products that are given different model numbers by the manufacturer will be considered to be separate models unless the manufacturer can demonstrate that the products are identical.
  2. Products that are similar but have different capacities, flow rates, or daily production rates will be considered to be separate models.
  3. Products that are similar but make different contaminant reduction claims will be considered separate models.
  4. Replacement components that are part of a registered water treatment system will not be considered separate models.

641—14.4(714) Performance testing.   A water treatment system shall be tested for performance by a third-party testing agency or by the manufacturer. If the manufacturer does the performance testing, the provisions of 14.4(3) shall apply.    14.4(1) Standards.  The performance testing shall be conducted in accordance with the applicable standard(s) from Table 1 or in accordance with a protocol approved by the state hygienic laboratory. Performance testing shall include an evaluation of structural integrity and of the water contact materials of the water treatment system in accordance with the applicable standard(s) listed in Table 1 or methods approved by the state hygienic laboratory.Table 1Treatment ProcessNSF/ANSI StandardMechanical filtration53 1 Carbon adsorption/filtration53 1 Reverse osmosis58 2 Cation exchange softening44 3 Ion exchange except softening53 1 UV disinfection, Class A55 4 Distillation62 5 1Drinking Water Treatment Units-Health Effects, 20072Reverse Osmosis Drinking Water Systems, 20073Residential Cation Exchange Water Softeners, 20074Ultraviolet Microbiological Water Treatment Systems, 20075Drinking Water Distillation Systems, 2007    14.4(2) Alternate performance testing protocols.   If a water treatment system is not tested in accordance with a standard(s) in Table 1, the manufacturer of the water treatment system shall submit an alternate performance testing protocol for the water treatment system to the department.    a.    The submission shall include, but may not be limited to, the following information:    (1)   The name and address of the manufacturer and the name, address, telephone number, and E-mail address of the manufacturer’s representative.    (2)   The brand name, model number, and trade names of each water treatment system requiring performance testing. The manufacturer shall state whether each water treatment system will be performance tested or if one water treatment system will be performance tested and the results used to represent the performance of other water treatment systems. The manufacturer shall provide justification that the performance testing of one water treatment testing will reliably represent the performance of other water treatment systems.    (3)   A detailed drawing with part numbers identifying each component of the water treatment system. Where applicable, this includes, but may not be limited to, pre- and post-filters, storage tank, dispensing unit (faucet), booster pump, and the main treatment module. Replaceable components shall be specifically identified and the approximate treatment capacity or replacement frequency shall be stated.    (4)   Identification of the water treatment system materials that are in contact with the water and of any chemical added to the drinking water by the water treatment system.    (5)   Specification of the pressure, flow and temperature requirements and limits for the water treatment system.    (6)   A list of the contaminants claimed to be reduced by the water treatment system.    (7)   A statement indicating whether the water treatment system will be advertised and sold to treat water that is microbiologically unsafe as defined in NSF/ANSI standard 53.    (8)   A detailed description of the performance testing protocol including, but not necessarily limited to:
  1. A schematic of the test rig with specifications for the critical components and instrumentation.
  2. Characterization of the general test water and the challenge water, including the level of the challenge parameter(s) in the water. A justification for the level of the challenge parameter(s) shall be provided.
  3. Details of how the general test water and the challenge water are prepared.
  4. Water pressure, flow rate and temperature during the test.
  5. Sample schedule for influent and effluent water.
  6. Analytical methods for the challenge parameter(s).
  7. Performance standard for the challenge parameter(s).
    b.    The performance testing protocol shall include the following provisions:    (1)   At least two units shall be tested.    (2)   The flow rate and water pressure shall be typical of the end use for the water treatment system.    (3)   Where applicable, a water treatment system with a PID shall be tested to at least 120 percent of the capacity listed on the PDS. A water treatment system without a PID shall be tested to at least 200 percent of the capacity listed on the PDS.    (4)   The structural integrity of the water treatment system shall be tested in accordance with the method in the applicable standard in Table 1.    (5)   The materials shall be evaluated for safety in accordance with one of the standards in Table 1 or in accordance with NSF/ANSI standard 61-2007a, “Drinking Water System Components - Health Effects.”    c.    The state hygienic laboratory shall review the performance testing protocol and shall report the approval, conditional approval or disapproval of the protocol in writing to the department. The conditions of approval or the reasons for disapproval shall be in the report.    d.    The manufacturer shall pay a fee not to exceed $200 to the state hygienic laboratory for each performance testing protocol review done in accordance with these rules.
    14.4(3) Manufacturer testing and audit.  A manufacturer may do performance testing of a water treatment system at its own facilities provided that a performance testing protocol from a standard in Table 1 or approved in accordance with 14.4(2) is used and the manufacturer’s personnel, facilities and data are found to be adequate when audited by a third-party testing agency.    a.    The manufacturer shall submit to the department information including, but not necessarily limited to, the following:    (1)   The applicable standard(s) from Table 1 or the information required by 14.4(2).    (2)   The name and address of the third-party testing agency performing the audit, and the name, address, telephone number, and E-mail address of an authorized representative of the third-party testing agency.    b.    The third-party testing agency responsible for the audit of the manufacturer’s facilities and data shall submit to the department information including, but not necessarily limited to, the following:    (1)   A detailed description of the manufacturer’s testing facilities and equipment.    (2)   Résumés of the management, scientific, and technical personnel responsible for conducting the performance testing.    (3)   A copy of the manufacturer’s state drinking water laboratory certification for the contaminants treated by the water treatment system, or verification that the manufacturer has the capability to perform USEPA-approved analytical methods for the contaminants treated by the water treatment system. If the analyses are performed by another agency, a copy of that agency’s certificate and documentation of the business relationship between the manufacturer and the agency shall be submitted.    (4)   An evaluation of the manufacturer’s laboratory quality assurance program.    (5)   The number of water treatment systems tested at the manufacturer’s testing facilities, if applicable, listed by the standard(s) used as the basis for testing and including the contaminants for which testing was done.    (6)   An evaluation of the capability of the facility to conduct performance testing in accordance with the approved performance testing protocol.    c.    Upon receipt of the report of the audit, the department shall transmit a letter of approval, conditional approval, or disapproval to the manufacturer within 30 days. The conditions of approval or the reasons for disapproval shall be in writing and shall be provided to the manufacturer’s representative.    14.4(4) Performance requirements.   A water treatment system shall meet or exceed the performance requirements of the standard(s) in Table 1 applicable to the water treatment system. If a contaminant treated by the water treatment system is not addressed by a standard in Table 1, the water treatment system shall reduce the level of the contaminant to or below the MCL when the water treatment system is tested in accordance with a performance testing protocol approved according to 14.4(2).    14.4(5) Retesting.       a.    If a water treatment system is listed by an ANSI-accredited third-party testing agency, the manufacturer shall have the water treatment system retested for performance in accordance with the policies of the third-party testing agency, but no less frequently than every five years. Other water treatment systems shall be retested by a third-party testing agency at least every five years.     b.    After a water treatment system is retested, the manufacturer shall submit the test data in accordance with 14.6(1). The manufacturer shall submit a PDS modified to include the results of the retesting at the time of the next annual registration.    c.    A change in the capacity of the water treatment system or to the contaminant claims shall be reported in accordance with 14.6(3).    d.    Water treatment systems registered prior to January 1, 2009, shall be retested, and the test data and PDS submitted prior to January 1, 2014.

641—14.5(714) Third-party testing agencies.   The department shall review and approve the facilities and capabilities of an agency before the agency is authorized as a third-party testing agency for the purposes of these rules.    14.5(1) Submission of information.   An agency applying for authorization as a third-party testing agency shall submit to the department information including, but not necessarily limited to, the following:    a.    The name, address, telephone number, and E-mail address of the agency representative.    b.    Verification that the agency is not owned, fully or partially, or managed by a company engaged in the manufacture or sales of water treatment systems.    c.    A copy of the agency’s laboratory certification under the Safe Drinking Water Act for the contaminants for which the agency will do performance testing (if the analyses are performed by another agency, a copy of that agency’s certificate and documentation of the business relationship between the applicant and the agency shall be submitted); or    d.    Written verification to the department that the agency has the capability to perform the USEPA-approved methods of analysis for the contaminants for which the agency will do performance testing.    e.    A copy of the agency laboratory quality assurance plan.    f.    A detailed description of the agency’s testing facilities and equipment.    g.    Résumés of the management, scientific, and technical personnel responsible for conducting the performance testing.    h.    The number of water treatment systems tested by the agency, if applicable, listed by the standards used as the basis for testing and including the contaminants for which testing was done.    i.    A copy of a test protocol that the agency has developed for a client or a copy of the report of the test of a water treatment system prepared for a client, if applicable.    j.    A nonrefundable $200 review fee.    k.    If product testing is subcontracted to another testing agency, the name of the agency; the name, address, telephone number, and E-mail address of an authorized representative of the agency; the standard(s) used, and the contaminant(s) tested by the agency.    l.    An agency that is accredited by ANSI for product testing and certification in accordance with one or more of the standards in Table 1 shall submit the following:    (1)   The information required in 14.5(1)“a” and “b” and the fee required in 14.5(1)“j.”    (2)   The ANSI certificate and scope of accreditation.    (3)   The method by which the department can access information about a water treatment system tested and certified by the agency. The information shall include:
  1. Manufacturer’s name.
  2. Model number of the water treatment system.
  3. Replacement element(s) designation.
  4. Rated capacity, if applicable.
  5. Service flow rate, if applicable.
  6. Daily production rate, if applicable.
  7. List of the contaminants for which the water treatment system has been tested.
    14.5(2) Testing auditor.  An agency applying for authorization to audit a manufacturer’s data and facilities shall submit to the department information including, but not necessarily limited to, the following:    a.    The information and fee required by 14.5(1).    b.    A written description of the agency's qualifications and experience in performing laboratory audits and laboratory analysis.    c.    Written verification that USEPA or equivalent procedures for auditing quality control of laboratories are followed in performing an audit of a manufacturer’s testing of a water treatment system.    14.5(3) Approval of third-party testing agencies.   The department shall review the information submitted by an agency applying for third-party testing agency status.    a.    The department shall consider:    (1)   The independence of the agency ownership and management.    (2)   The adequacy of the agency’s facilities and equipment for water treatment system testing.    (3)   The experience and training of the management, scientific, and technical staff directly responsible for testing water treatment systems.    (4)   The adequacy of the equipment, facilities and personnel for analysis of the contaminants for which the agency will do performance testing.    (5)   The adequacy of quality assurance systems at the testing facility.    b.    The department shall transmit a letter of approval, conditional approval, or disapproval to the agency representative. The conditions of approval or the reasons for disapproval shall be in writing and shall be provided to the agency representative.    c.    An appeal of disapproval or a condition of approval shall be submitted by the agency to the department by certified mail, return receipt requested, within 30 days of receipt of the department’s letter. The address is Iowa Department of Public Health, Water Treatment System Registration, 321 E. 12th Street, Des Moines, Iowa 50319-0075. If no appeal is received within the 30 days, the disapproval or conditional approval becomes the department’s final agency action. An appeal shall be forwarded to the department of inspections and appeals within 5 working days of its receipt. The department shall provide the information upon which the disapproval or conditional approval was based and any additional information provided by the agency to the department of inspections and appeals.    14.5(4) Resubmission.  The department may require that an agency resubmit the information required in 14.5(1) and 14.5(2) if:    a.    The testing facilities are relocated.    b.    The corporate identity of the agency changes.    c.    The agency has not tested a water treatment system submitted to the department for registration or has not audited a manufacturer for a period of three years or longer.    14.5(5) Revocation of authorization.  The department may revoke authorization for an agency to be a third-party testing agency or a test auditor if:    a.    The agency loses ANSI accreditation.    b.    The agency submits false information in support of the registration of a product.    c.    Information submitted to support authorization is found to be false.    d.    The agency, in the judgment of the department, is incompetent to conduct or incapable of conducting testing in accordance with the standards in Table 1 or in accordance with approved protocols.    14.5(6)  Notice of revocation.   Notice of revocation shall be sent to the agency by restricted certified mail, return receipt requested, or by personal service. The agency shall have a right to appeal the revocation.    a.    An appeal of a revocation shall be submitted by certified mail, return receipt requested, within 30 days of receipt of the department’s notice. The appeal shall be sent to the Iowa Department of Public Health, Division of Environmental Health, Lucas State Office Building, 321 East 12th Street, Des Moines, Iowa 50319-0075. If such a request is made within the 30-day time period, the revocation shall be deemed to be suspended. Prior to or at the hearing, the department may rescind the revocation upon satisfaction that the reason for the revocation has been or will be removed. After the hearing, or upon default of the agency, the administrative law judge shall affirm, modify or set aside the revocation. If no appeal is submitted within 30 days, the revocation shall become the department’s final agency action.    b.     Upon receipt of an appeal that meets contested case status, the appeal shall be transmitted to the department of inspections and appeals within five working days of receipt pursuant to the rules adopted by that agency regarding the transmission of contested cases. The information upon which the revocation is based shall be provided to the department of inspections and appeals.    c.    The hearing shall be conducted in accordance with 481—Chapter 10.    d.    When the administrative law judge makes a proposed decision and order, it shall be served by restricted certified mail, return receipt requested, or delivered by personal service. The proposed decision and order then becomes the department’s final agency action without further proceedings ten days after it is received by the agency unless an appeal to the director is taken as provided in paragraph “e.”    e.    Any appeal to the director of the department for review of the proposed decision and order of the administrative law judge shall be filed in writing and mailed to the director by certified mail, return receipt requested, or delivered by personal service within ten days after the receipt of the administrative law judge’s proposed decision and order by the aggrieved party. A copy of the appeal shall also be mailed to the administrative law judge. Any request for appeal shall state the reason for appeal.    f.    Upon receipt of an appeal request, the administrative law judge shall prepare the record of the hearing for submission to the director. The record shall include the following:    (1)   All pleadings, motions and rules.    (2)   All evidence received or considered and all other submissions by recording or transcript.    (3)   A statement of all matters officially noticed.    (4)   All questions and offers of proof, objections, and rulings thereon.    (5)   All proposed findings and exceptions.    (6)   The proposed findings and order of the administrative law judge.    g.    The decision and order of the director becomes the department’s final agency action upon receipt by the agency and shall be delivered by restricted certified mail, return receipt requested.    h.     It is not necessary to file an application for a rehearing to exhaust administrative remedies when appealing to the director or the district court as provided in Iowa Code section 17A.19. The agency may petition for judicial review pursuant to Iowa Code chapter 17A.    i.    Any petition for judicial review of a decision and order shall be filed in the district court within 30 days after the decision and order becomes final. A copy of the notice of appeal shall be sent by certified mail, return receipt requested, or by personal service to the department at Iowa Department of Public Health, Division of Environmental Health, 321 East 12th Street, Des Moines, Iowa 50319-0075.    j.    An agency that appeals a final department action to the district court shall pay the cost of the preparation of a transcript of the contested case hearing for the district court.

641—14.6(714) Registration.  A water treatment system that has been performance tested in accordance with 14.4(714) and that meets the performance requirement of 14.4(4) may be registered with the department. A water treatment system shall be registered with the department before it is sold, leased or rented and before it is advertised for sale, lease or rent in Iowa.    14.6(1) Initial registration.      a.    The manufacturer of a water treatment system or the manufacturer’s authorized representative shall submit the following information to the department on forms supplied by the department:    (1)   The name and address of the manufacturer and the name, address, telephone number, and E-mail address of the manufacturer’s representative.    (2)   The brand name, model number, and trade name(s) of the water treatment system.    (3)   A detailed drawing with part numbers identifying each component of the water treatment system. Where applicable, this includes, but may not be limited to, pre- and post-filters, storage tank, dispensing unit (faucet), booster pump, and the main treatment module. Replaceable components shall be specifically identified and the approximate treatment capacity or replacement frequency shall be stated.    (4)   Verification by a third-party testing agency that the water treatment system performed in accordance with 14.4(4) when tested with an approved performance testing protocol. If the third-party testing agency is ANSI-accredited and the water treatment system was tested in accordance with a standard(s) in Table 1, documentation of a listing by the ANSI-accredited agency is sufficient.    (5)   The test data generated by the third-party testing agency. Submission of the test data is not required if the testing agency is an ANSI-accredited third-party testing agency and the water treatment system was tested for performance in accordance with a standard in Table 1.    (6)   The PDS.    (7)   Copies of the labels for the water treatment system and for any replaceable components.    (8)   Copies of product packaging, product promotional materials, and sales training materials.    (9)   A copy of installation and operation guides with identification of replaceable components and replacement frequencies, where applicable.    (10)   A nonrefundable initial registration fee of $800 for each water treatment system.    b.    A registration issued between July 1 and March 31, inclusive, shall expire on the next June 30. A registration issued between April 1 and June 30, inclusive, shall expire on June 30 of the year after the year in which the registration is issued.    14.6(2) Annual registration.  Each calendar year on or before March 1, the department shall notify each manufacturer or the manufacturer’s designated agent of the water treatment systems registered in Iowa and the requirement for renewal of the registration. For each water treatment system that a manufacturer wishes to continue to sell in Iowa, the manufacturer or the manufacturer’s designated agent shall submit the following information to the department on or before May 31 of each calendar year.    a.    Certification that there has been no change in the water treatment system's design since the system was tested during the initial registration process.    b.    A copy of the current PDS.    (1)   A statement that the PDS has not changed since the initial registration or the previous annual registration may be submitted in lieu of the PDS.    (2)   Changes on the PDS must be explained and supported by third-party testing results. If the testing was done by an ANSI-accredited third-party testing agency in accordance with a standard(s) in Table 1, documentation of listing by the testing agency is sufficient.    c.    A nonrefundable annual registration fee of $400 for each water treatment system.    d.     If the annual registration information is sent after May 31, the manufacturer shall pay for each water treatment system a penalty of $50 per month or fraction thereof that the information is late to a maximum of $200 for each water treatment system.    14.6(3)  Changes to registration.      a.    Modifying one or more contaminant claims, capacity claims, or treatment components of a registered water treatment system without the written approval of the department shall void the registration.    b.    The manufacturer shall apply to the department for approval of a change in contaminant claims or capacity claims for a water treatment system, or of changes to the treatment components. The application shall be on a form supplied by the department. The application shall include, but may not be limited to:    (1)   The name and address of the manufacturer and the name, address, telephone number, and E-mail address of the manufacturer’s representative.    (2)   The brand name, model number, and trade name(s) of the water treatment system.    (3)   A description of the changes in claims, capacity, or components.    (4)   The third-party testing agency report and data supporting the change in contaminant claims or capacity, or showing equivalent performance for a new treatment component. If the third-party testing agency is ANSI-accredited, a copy of the listing for the water treatment system showing the changes in contaminant claims or capacity, or a statement of equivalent performance by the new treatment component(s) from the testing agency is sufficient.    (5)   A revised PDS that meets the requirements of 14.7(2).    (6)   Copies of labels, packaging and promotional material that have been revised to reflect the changed claims.    (7)   A nonrefundable $100 fee for each water treatment system for which the registration is changed.    c.    The manufacturer shall notify the department of any changes to the trade name(s) for a water treatment system. The notification shall include, but may not be limited to:    (1)   The original model number(s) and trade name(s) of the water treatment system.    (2)   The changed or added model number(s) and trade name(s) for the water treatment system.    (3)   A statement that the treatment components and claims are the same between the original and the changed or added trade names.    (4)   Copies of the PDS, labels, packaging, and promotional materials showing the changed or added trade name(s).

641—14.7(714) Label and manufacturer’s performance data sheet.   A label and a PDS shall be provided with a water treatment system to provide the consumer with information on the effectiveness of the water treatment system in reducing the concentration of contaminants from drinking water.    14.7(1) Label.  Each water treatment system must bear a conspicuous and legible label stating, “IMPORTANT NOTICE - Read the manufacturer's performance data sheet.”    14.7(2) Manufacturer's performance data sheet.  A PDS for a water treatment system listed by an ANSI-accredited third-party testing agency and tested in accordance with a standard in Table 1 shall comply with the requirements of the applicable standard(s) in Table 1 and the policies of the third-party testing agency. The PDS for other water treatment systems shall include, but may not be limited to:    a.    The name, address, and telephone number of the seller.    b.    The name, brand, or trademark under which the water treatment system is sold, and its model number.    c.    Performance and test data including, but not necessarily limited to:    (1)   The list of contaminants found to be reduced by the water treatment system.    (2)   The average test influent concentration level of each contaminant or surrogate.    (3)   The average effluent concentration and the percentage reduction of each contaminant or surrogate.    (4)   When the reduction of a contaminant is verified using a surrogate, the equivalent influent concentration, effluent concentration, and percent reduction for the contaminant.    (5)   The MCL for each contaminant.    (6)   The approximate capacity in gallons or the period of time during which the water treatment system is effective in reducing the concentration of contaminants based upon the contaminant influent concentrations used for the performance tests. The claimed volume capacity of a water treatment system shall be based upon the contaminant most likely to break through into the effluent during the test period.    (7)   Where applicable, the flow rate, pressure, and temperature of the water during the performance tests.     d.    Substances or parameters that are not contaminants as defined in 14.3(714) may be listed on the PDS, but the substances may not be referred to as contaminants.    e.     The following information shall be on the PDS or in the owner's manual. If the information is in the owner’s manual, there shall be a statement on the performance data sheet referring the buyer to the owner’s manual.    (1)   Installation instructions.    (2)   Procedures and requirements necessary for the proper operation of the water treatment system including, but not limited to, electrical requirements; maximum and minimum pressure; flow rate; temperature limitations; maintenance requirements; and expected replacement frequencies.    (3)   The seller's warranty.

641—14.8(714) Consumer information pamphlet.    A consumer information pamphlet prepared by the department shall be given to the buyer by the seller along with the manufacturer’s performance data sheet prior to the consummation of the sale of a water treatment system. The consumer information pamphlet may be printed in detail by the manufacturer.

641—14.9(714) Sales of water treatment systems.   No water treatment system may be sold in Iowa unless it is first registered with the department.    14.9(1)   Prior to the consummation of sale, the seller shall provide to the buyer:    a.    The PDS.    b.    A copy of the consumer information pamphlet.    14.9(2)    Prior to the consummation of sale, the seller and the buyer shall sign and date a copy of the PDS. The seller shall retain the signed PDS on file at the seller's place of business for at least two years.    14.9(3)    The seller shall make no false or deceptive claims or representations regarding the contaminant removal capability of a water treatment system.    14.9(4)   The seller shall not make any representation or claim that a water treatment system is approved or endorsed by any agency of the state.

641—14.10(714) Treatment of records.   Information submitted by a manufacturer to support registration of a water treatment system is subject to the provisions of 641—Chapter 175, Fair Information Practices and Public Records. A manufacturer may request that information submitted for the purposes of these rules be considered confidential by reference to the appropriate subsection of Iowa Code section 22.7.

641—14.11(714) Penalties.   A seller of a water treatment system or unit violating any provision of these rules shall be subject to civil or criminal penalties pursuant to the authority of Iowa Code chapter 714.       These rules are intended to implement Iowa Code chapter 714.
ARC 7169BPublic Health Department[641]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 147A.4, the Department of Public Health hereby gives Notice of Intended Action to amend Chapter 131, “Emergency Medical Services Provider Education/Training/Certification,” Iowa Administrative Code.    The rules in Chapter 131 describe the standards for the education, training, and certification of emergency medical providers and establish a standard of conduct for training programs, students, and providers. These proposed amendments update disciplinary rules for providers and eliminate the fee for retirement of an EMS certification.    Any interested person may make written comments or suggestions on the proposed amendments on or before October 14, 2008. Such written comments should be directed to Kirk Schmitt, Bureau of EMS, Department of Public Health, 321 East 12th Street, Des Moines, Iowa 50319. E-mail may be sent to kschmitt@idph.state.ia.us.    These amendments are intended to implement Iowa Code chapter 147A.    The following amendments are proposed.

    ITEM 1.    Amend paragraph 131.4(3)"h" as follows:    h.    An individual may request an inactive or retired status for a certificate. The request must be made to the department in writingby submitting a change of status request, available through the Iowa Department of Public Health, Bureau of EMS, Lucas State Office Building, Des Moines, Iowa 50319-0075, or the bureau of EMS Web site (www.idph.state.ia.us/ems). A certification card reflecting the inactive or retired status may be issued to the individual for a fee of $30. Reinstatement of an inactive or retired certificate shall be made pursuant to 131.4(3)“f.” A request for inactive or retired status, when accepted in connection with a disciplinary investigation or proceeding, has the same effect as an order of revocation.

    ITEM 2.    Rescind paragraph 131.4(8)"f."

    ITEM 3.    Amend paragraph 131.7(2)"u" as follows:    u.    Having certification to practice emergency medical care suspended or revoked, or having other disciplinary action taken by a licensing or certifying authority of this state or another state, territory or country. A certified copy of the record or order of suspension, revocation or disciplinary action is conclusive or prima facie evidence.

    ITEM 4.    Adopt the following new paragraph 131.7(2)"ab":    ab.    Failure to respond within 30 days of receipt, unless otherwise specified, of communication from the department which was sent by registered or certified mail.
ARC 7170BPublic Health Department[641]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 147A.4, the Department of Public Health hereby gives Notice of Intended Action to amend Chapter 132, “Emergency Medical Service—Service Program Authorization,” Iowa Administrative Code.    The rules in Chapter 132 describe the standards for the authorization of EMS services. These proposed amendments clarify definitions for air medical services, describe requirements for driver training and require that service providers notify the Department when employees are terminated for certain reasons.    Any interested person may make written comments or suggestions on the proposed amendments on or before October 14, 2008. Such written comments should be directed to Kirk Schmitt, Bureau of EMS, Department of Public Health, 321 East 12th Street, Des Moines, Iowa 50319. E-mail may be sent to kschmitt@idph.state.ia.us.    These amendments are intended to implement Iowa Code chapter 147A.    The following amendments are proposed.

    ITEM 1.    Amend rule 641—132.1(147A), as follows:        "Rotorcraft ambulance" means any privately or publicly owned rotorcraft specifically designed, modified, constructed, equipped, staffed and used regularlyFAA-approved to transport the sick, injured or otherwise incapacitated who are in need of out-of-hospital emergency medical care or whose condition requires treatment or continuous observation while being transportedduring transport.

    ITEM 2.    Adopt the following new in rule 641—132.1(147A):        "Fixed-wing aircraft" means any privately or publicly owned propeller-driven or jet airplane specifically designed, modified, constructed, equipped, staffed and FAA-approved to transport the sick, injured or otherwise incapacitated who are in need of out-of-hospital emergency medical care or whose condition requires treatment or continuous observation during transport.

    ITEM 3.    Amend subparagraph 132.8(1)"c" as follows:    (2)   One currently licensed driver. The service shall document each driver’s training in CPR (AED training not required), in emergency driving techniques and in the use of the service’s communications equipment. Training in emergency driving techniques shall include:
  1. Review of Iowa laws regarding emergency vehicle operations.
  2. A review of the service program’s driving policy for first response vehicles, ambulances, rescue vehicles or personal vehicles of an emergency medical care provider responding as a member of the service. The policy shall include, as a minimum:
  3. Frequency and content of driver’s training requirements.
  4. Criteria for response with lights or sirens or both.
  5. Speed limits when responding with lights or sirens or both.
  6. Procedure of approaching intersections with lights or sirens or both.
  7. Notification process in the event of a motor vehicle collision involving a first response vehicle, ambulance, rescue vehicle or personal vehicle of an emergency medical care provider responding as a member of the service.
  8. Behind-the-wheel driving of the service’s first response vehicles, ambulances and rescue vehicles.

    ITEM 4.    Adopt the following new paragraph 132.8(6)"c":    c.    A service program must report the termination of an emergency medical care provider due to negligence, professional incompetency, unethical conduct or substance use to the department within ten days following the termination.
ARC 7180BPublic Safety Department[661]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code Supplement section 101B.3, the Department of Public Safety hereby gives Notice of Intended Action to adopt new Chapter 61, “Reduced Ignition Propensity Cigarettes,” Iowa Administrative Code.    Iowa Code Supplement chapter 101B, which was enacted by the Iowa General Assembly during its 2007 session, provides for cigarette fire safety standards that will restrict sales of cigarettes in Iowa to “fire-safe cigarettes.” Iowa Code Supplement section 101B.3 provides for the Department of Public Safety to promulgate administrative rules to implement the provisions of chapter 101B. The rules proposed herein are intended to do so.    A public hearing on this proposed amendment will be held on October 14, 2008, at 8:30 a.m. in the First Floor Public Conference Room (Room 125), State Public Safety Headquarters Building, 215 East 7th Street, Des Moines, Iowa 50319. Persons may present their views orally or in writing at the public hearing. Persons who wish to make oral presentations at the public hearing should contact the Agency Rules Administrator, Iowa Department of Public Safety, State Public Safety Headquarters Building, 215 East 7th Street, Des Moines, Iowa 50319, by mail; by telephone at (515)725-6185; or by electronic mail to admrule@dps.state.ia.us, at least one day prior to the public hearing.     Any written comments or information regarding these proposed amendments may be directed to the Agency Rules Administrator by mail or electronic mail at the addresses indicated by 4:30 p.m. on October 14, 2008, or submitted at the public hearing. Persons who wish to convey their views orally other than at the public hearing may contact the Agency Rules Administrator by telephone or in person at the Department office at least one day prior to the public hearing.    These rules are intended to implement Iowa Code Supplement chapter 101B.    The following amendment is proposed.

    ITEM 1.    Adopt the following new 661—Chapter 61: CHAPTER 61REDUCED IGNITION PROPENSITY CIGARETTES

661—61.1(101B) Definitions.  The following definitions apply to rules 661—61.1(101B) through 661—61.21(101B):        "Agent" means a distributor as defined in Iowa Code section 453A.1 authorized by the department of revenue to purchase and affix stamps pursuant to Iowa Code section 453A.10.        "Certified reduced ignition propensity cigarette" means a unique cigarette brand style that meets the following criteria:
  1. The unique cigarette brand style has been tested in accordance with the test method prescribed in rule 661—61.3(101B) or has been approved pursuant to rule 661—61.4(101B).
  2. The unique cigarette brand style meets the performance standard specified in rule 661—61.3(101B) or has been approved pursuant to rule 661—61.4(101B).
  3. A written certification for the unique cigarette brand style has been filed by the manufacturer with the department and in accordance with rule 661—61.10(101B).
  4. Packaging for the unique cigarette brand style has been marked in accordance with rule 661—61.13(101B).
        "Cigarette" means a cigarette as defined in Iowa Code section 453A.1, but shall not mean a tobacco product as defined in Iowa Code section 453A.1.        "Department" means the department of public safety.        "Manufacturer" means any of the following:
  1. An entity that manufactures or otherwise produces cigarettes or causes cigarettes to be manufactured or produced, anywhere, which cigarettes the manufacturer intends to be sold in this state, including cigarettes intended to be sold in the United States through an importer.
  2. The first purchaser of cigarettes anywhere, that intends to resell in the United States, cigarettes manufactured or produced anywhere, that the original manufacturer did not intend to be sold in the United States.
  3. An entity that becomes a successor of an entity described in numbered paragraph “1” or “2” of this definition.
        "Quality control and quality assurance program" means the laboratory procedures implemented to ensure that operator bias, systematic and nonsystematic methodological errors, and equipment-related problems do not affect the results of the repeatability testing, and which program ensures that the testing repeatability remains within the required repeatability values specified in rule 661—61.3(101B).        "Reduced ignition propensity cigarette" means a cigarette certified pursuant to this chapter.        "Repeatability" means the range of values within which the repeat results of cigarette test trials from a single laboratory will fall 95 percent of the time.        "Retailer" means retailer as defined in Iowa Code section 453A.1.        "Sale" means any transfer of title or possession, exchange or barter, in any manner or by any means or any agreement. In addition to cash and credit sales, the giving of cigarettes as a sample, prize, or gift or the exchanging of cigarettes for any consideration other than money is considered a sale.        "Sell" means to sell, or to offer or agree to sell.        "Unique cigarette brand style" means a cigarette with a unique combination of the following:
  1. Brand or trade name.
  2. Style, such as light or ultra light.
  3. Length.
  4. Circumference.
  5. Flavor, such as menthol or chocolate, if applicable.
  6. Presence or absence of a filter.
  7. Type of package, such as soft pack or box.
        "Wholesaler" means wholesaler as defined in Iowa Code section 453A.1.

661—61.2(101B) Restriction on sale of cigarettes.  On or after January 1, 2009, cigarettes shall not be sold or offered for sale to any person in this state unless the cigarettes are reduced ignition propensity cigarettes.E XCEPTION I: This chapter shall not be construed to prohibit a wholesaler or retailer from selling the wholesaler's or retailer's inventory of cigarettes existing prior to January 1, 2009, provided that the wholesaler or retailer is able to establish both of the following:
  1. Tax stamps were affixed to the cigarettes on inventory, pursuant to Iowa Code section 453A.10, before January 1, 2009.
  2. The inventory of cigarettes was purchased before January 1, 2009, in comparable quantity to the amount of inventory of cigarettes purchased during the same period of the prior year.
E XCEPTION II: This chapter shall not be construed to prohibit any person from selling or offering for sale cigarettes that have not been certified by the manufacturer in accordance with Iowa Code Supplement section 101B.5 if the cigarettes are or will be stamped for sale in another state or are packaged for sale outside the United States.

661—61.3(101B) Test method, performance standard, test report.  Except as provided in rule 661—61.4(101), each unique cigarette brand style submitted for certification under this chapter shall meet all of the following criteria:    61.3(1)   Testing shall be conducted in accordance with ASTM (American Society for Testing and Materials) international standard E2187-04, standard test method for measuring the ignition strength of cigarettes.    61.3(2)   Testing shall be conducted on ten layers of filter paper.    61.3(3)   The performance standard shall require that no more than 25 percent of the cigarettes tested in a test trial shall exhibit full-length burns.    61.3(4)   Forty replicate tests shall comprise a complete test trial for each cigarette tested.    61.3(5)   The performance standard required by this rule shall only be applied to a complete test trial.    61.3(6)   Testing shall be conducted by a laboratory that has been accredited pursuant to International Organization for Standardization/International Electrotechnical Commission Standard 17025.    61.3(7)   Laboratories conducting testing in accordance with subrule 61.3(6) shall implement a quality control and quality assurance program that includes a procedure that will determine the repeatability of the testing results. The testing repeatability shall be no greater than nineteen one-hundredths.    61.3(8)   This rule shall not require additional testing if cigarettes are tested in a manner consistent with this chapter for any other purpose.    61.3(9)   Each cigarette listed in a certification submitted in accordance with Iowa Code Supplement section 101B.5 that uses lowered permeability bands in the cigarette paper to achieve compliance with the performance standard pursuant to this rule shall have at least two nominally identical bands on the paper surrounding the tobacco column. At least one complete band shall be located at least 15 millimeters from the lighting end of the cigarette. For cigarettes on which the bands are positioned by design, there shall be at least two bands fully located at least 15 millimeters from the lighting end and either 10 millimeters from the filter end of the tobacco column or 10 millimeters from the labeled end of the tobacco column for nonfiltered cigarettes.

661—61.4(101B) Alternate test method.       61.4(1)   The manufacturer of a cigarette that the department determines cannot be tested in accordance with the test method prescribed in rule 661—61.3(101B) shall propose a test method and performance standard for the cigarette.    61.4(2)   A manufacturer proposing an alternate test method and performance standard pursuant to this rule shall submit such proposal on a form provided by the department and shall send such form by certified mail, return receipt requested, to the following address:Fire Marshal DivisionState Public Safety Headquarters Building215 East 7th StreetDes Moines, Iowa 50319    61.4(3)   The department shall approve or deny the proposed alternate test method and performance standard within 60 days of receipt of such proposal and shall send notification of such approval or denial by certified mail, return receipt requested, to the address provided by the manufacturer.     61.4(4)   If an alternate test method and performance standard are approved pursuant to this rule, the manufacturer may employ the test method and performance standard to certify the cigarette in accordance with rule 661—61.3(101B).

661—61.5(101B) Acceptance of alternate test method approved by another state.      61.5(1)   If the department determines that another state has enacted reduced cigarette ignition propensity standards that include a test method and performance standard that are the same as those contained in this chapter, and the department finds that the officials responsible for implementing those requirements have approved the proposed alternate test method and performance standard for a unique cigarette brand style proposed by a manufacturer as meeting the fire safety standards of that state's law or regulation under a legal provision comparable to rule 661—61.4(101B), the department shall authorize that manufacturer to employ the alternate test method and performance standard to certify that cigarette for sale in this state, unless the department demonstrates a reasonable basis why the alternate test method and performance standard should not be accepted under this chapter. All other applicable requirements of this chapter shall apply to the manufacturer.    61.5(2)   A manufacturer proposing an alternate test method and performance standard under this rule shall use the procedure for submitting an alternate test method and performance standard specified in rule 661—61.4(101B) and shall provide documentation verifying that the alternate test method and performance standard have been approved by another state as provided in subrule 61.5(1).

661—61.6(101B) Retention of reports of testing.   A manufacturer shall maintain copies of the reports of all tests conducted on all certified reduced ignition propensity cigarettes offered for sale for a period of three years and shall make copies of the reports available to the department and the office of the attorney general upon written request.

661—61.7(101B) Testing performed or sponsored by the department.   Testing performed or sponsored by the department to determine a cigarette's compliance with the performance standard required by this chapter shall be conducted in accordance with rule 661—61.3(101B).E XCEPTION : Testing performed or sponsored by the department to determine the compliance of a cigarette tested in accordance with rule 661—61.4(101B) shall be conducted in accordance with the test method and performance standard specified in a proposal approved under rule 661—61.4(101B).

661—61.8()   Reserved.

661—61.9()   Reserved.

661—61.10(101B) Certification and fee.      61.10(1)   Each manufacturer shall submit a written certification to the department attesting to all of the following:    a.    Each certified reduced ignition propensity cigarette listed in the certification has been tested in accordance with rule 661—61.3(101B), 661—61.4(101B), or 661—61.5(101B).    b.    Each certified reduced ignition propensity cigarette listed in the certification meets the performance standard specified in rule 661—61.3(101B) or approved under rule 661—61.4(101B).    61.10(2)   Each certified reduced ignition propensity cigarette listed in the certification shall be described in the certification as follows:    a.    The brand or trade name on the package.    b.    The style of cigarette, such as light or ultra light.    c.    The length of the cigarette in millimeters.    d.    The circumference of the cigarette in millimeters.    e.    The flavor of the cigarette, such as menthol or chocolate, if applicable.    f.    Whether the cigarette is filtered or nonfiltered.    g.    The type of cigarette package, such as soft pack or box.    h.    The marking approved in accordance with Iowa Code Supplement section 101B.7.    i.    The name, address, and telephone number of the laboratory, if different than the manufacturer, that conducted the test.    j.    The date the testing was performed.    61.10(3)   Each cigarette certified under this rule shall be recertified every three years.    61.10(4)   The manufacturer shall, upon request, make a copy of the written certification available to the office of the attorney general and the department of revenue for purposes of ensuring compliance with this chapter.    61.10(5)   For each cigarette listed in a certification, a manufacturer shall pay a fee of $100 to the department. Checks shall be made payable to the “Iowa Department of Public Safety.” The memo portion of the check shall state “Reduced propensity cigarettes.”    61.10(6)   A certification and fee submitted pursuant to this rule shall be sent the following address:Fire Marshal DivisionState Public Safety Headquarters Building215 East 7th StreetDes Moines, Iowa 50319

661—61.11(101B) Changes to the manufacture of a certified reduced ignition propensity cigarette.  If a manufacturer has certified a cigarette pursuant to this chapter and makes any change to the certified reduced ignition propensity cigarette thereafter that is likely to alter the cigarette's compliance with the reduced cigarette ignition propensity standards specified in this chapter, prior to the cigarette's being sold or offered for sale in this state, the manufacturer shall retest the cigarette in accordance with the testing standards specified in rule 661—61.3(101B) or shall propose an alternate test method and performance standard pursuant to rule 661—61.4(101B) or rule 661—61.5(101B), and shall maintain records of the retesting as required by rule 661—61.6(101B). Any altered cigarette that does not meet the performance standard specified in rule 661—61.3(101B) or approved pursuant to rule 661—61.4(101B) shall not be sold in this state.

661—61.12(101B) Notification of certification.      61.12(1)   A manufacturer certifying cigarettes in accordance with rule 661—61.3(101B) or rule 661—61.4(101B) shall provide a copy of the certification to all wholesalers and agents to whom the manufacturer sells cigarettes and shall also provide sufficient copies of an illustration of the cigarette packaging marking used by the manufacturer in accordance with rule 661—61.13(101B) for each retailer to whom the wholesalers or agents sell cigarettes.    61.12(2)   A wholesaler or agent shall provide a copy of the cigarette packaging marking received from a manufacturer to all retailers to whom the wholesaler or agent sells cigarettes. A wholesaler, agent, or retailer shall permit the state fire marshal, the department of revenue, or the office of the attorney general to inspect markings of cigarette packaging marked in accordance with rule 661—61.13(101B).

661—61.13(101B) Marking reduced ignition propensity cigarette packaging.      61.13(1)   Cigarettes that have been certified by a manufacturer in accordance with rule 661—61.3(101B) or rule 661—61.4(101B) shall be marked to indicate compliance with the requirements of this chapter. The marking shall be in eight-point type or larger and consist of one of the following:    a.    Modification of the product's universal product code to include a visible mark printed at or around the area of the universal product code. The mark may consist of an alphanumeric or symbolic character or characters permanently stamped, engraved, embossed, or printed in conjunction with the universal product code.    b.    Any visible alphanumeric or symbolic character or combination of alphanumeric or symbolic characters permanently stamped, engraved, or embossed upon the cigarette package or cellophane wrap.    c.     Printed, stamped, engraved, or embossed text that indicates that the cigarettes meet the standards of this chapter.N OTE : Though compliance with this subrule may be achieved by any of the methods described above, the recommended marking shall be the letters “FSC” displayed in accordance with any of the methods described above.    61.13(2)   A manufacturer shall use only one marking and shall apply the marking uniformly for all packages, including but not limited to packs, cartons, and cases and to brands marketed by that manufacturer.    61.13(3)   A manufacturer shall present its proposed marking to the department for approval using the following procedures:    a.    Requests for approval of a proposed marking shall be included in the certification submitted pursuant to rule 661—61.10(101B).    b.    Upon receipt of the request, the department shall approve or disapprove the marking offered within ten business days of receiving a request for approval.    61.13(4)   A manufacturer shall not modify its approved marking until the modification has been approved by the department in accordance with subrule 61.11(3).E XCEPTION I: If the department fails to approve or disapprove a proposed marking within ten business days, the marking shall be deemed approved.E XCEPTION II: A marking in use and approved for the sale of cigarettes in the state of New York shall be deemed approved.

661—61.14()   Reserved.

661—61.15()   Reserved.

661—61.16()   Reserved.

661—61.17()   Reserved.

661—61.18()   Reserved.

661—61.19()   Reserved.

661—61.20(101B) Applicability—preemption.      61.20(1)    Pursuant to Iowa Code Supplement section 101B.10, this chapter shall cease to be applicable if federal fire safety standards for cigarettes that preempt this chapter are enacted and take effect subsequent to January 1, 2009, and the state fire marshal shall notify the secretary of state and the Iowa Code editor if such federal fire safety standards for cigarettes are enacted.    61.20(2)    Pursuant to Iowa Code Supplement section 101B.10, political subdivisions shall not adopt or enforce any ordinance, rule, or regulation that conflicts with any provision of this chapter, or with any policy of the state expressed by this chapter, whether the policy is expressed by inclusion of or exclusion from this chapter.

661—61.21(17A) Violations and penalties.  A person who violates any provision of Iowa Code Supplement chapter 101B or of this chapter shall be subject to a civil penalty of an amount no greater than specified for the specific offense in Iowa Code Supplement section 101B.8. Notice of a civil penalty may be provided by mail or by personal service. A person subject to a civil penalty may appeal the imposition of the penalty as provided in 661—Chapter 10. An appeal of a civil penalty shall be subject to the provisions of 661—Chapter 10 for contested cases.       These rules are intended to implement Iowa Code Supplement chapter 101B.
ARC 7178BPublic Safety Department[661]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 100.1, the State Fire Marshal hereby gives Notice of Intended Action to amend Chapter 201, “General Fire Safety Requirements,” Iowa Administrative Code.    The State Fire Marshal is authorized by Iowa Code section 100.1 to establish general requirements for fire safety and specific requirements for electrical installations. Other provisions of Iowa law authorize the Building Code Commissioner and the Electrical Examining Board to establish requirements for electrical installations. The Fire Marshal, the Building Code Commissioner, and the Electrical Examining Board have agreed to attempt to coordinate their rule making in this area and, as a general policy, to adopt succeeding editions of the National Electrical Code in a timely fashion. The amendment proposed herein would update the rules of the Fire Marshal to adopt by reference the National Electrical Code, 2008 edition. Similar rule makings are being undertaken by the Electrical Examining Board and the Building Code Commissioner.    A public hearing on this proposed amendment will be held on October 14, 2008, at 10 a.m. in the First Floor Public Conference Room (Room 125), State Public Safety Headquarters Building, 215 East 7th Street, Des Moines, Iowa 50319. Persons may present their views orally or in writing at the public hearing. Persons who wish to make oral presentations at the public hearing should contact the Agency Rules Administrator, Iowa Department of Public Safety, Wallace State Office Building, Des Moines, Iowa 50319, by mail; by telephone at (515)725-6185; or by electronic mail to admrule@dps.state.ia.us, at least one day prior to the public hearing.     Any written comments or information regarding this proposed amendment may be directed to the Agency Rules Administrator by mail or electronic mail at the addresses indicated by 4:30 p.m. on October 14, 2008, or submitted at the public hearing. Persons who wish to convey their views orally other than at the public hearing may contact the Agency Rules Administrator by telephone or in person at the Department office at least one day prior to the public hearing.    This amendment is intended to implement Iowa Code section 100.1.    The following amendment is proposed.

    ITEM 1.    Amend rule 661—201.3(100) as follows:

661—201.3(100) Electrical installations.  Electrical installations shall comply with the provisions of NFPA 70, National Electrical Code, 20052008 edition.
ARC 7179BPublic Safety Department[661]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 103A.7, the Building Code Commissioner hereby gives Notice of Intended Action to amend Chapter 301, “State Building Code—General Provisions,” Iowa Administrative Code, with the approval of the Building Code Advisory Council.    The Building Code Commissioner, the State Fire Marshal, and the Electrical Examining Board all have authority to adopt requirements for electrical installations. The Building Code Commissioner, the State Fire Marshal, and the Electrical Examining Board have agreed to attempt to coordinate their rule making in this area and, as a general policy, to adopt succeeding editions of the National Electrical Code in a timely fashion. The amendment proposed herein would update the State Building Code to adopt by reference the National Electrical Code, 2008 edition. Similar rule makings are being undertaken by the Electrical Examining Board and the State Fire Marshal.    A public hearing on this proposed amendment will be held on October 14, 2008, at 10 a.m. in the First Floor Public Conference Room (Room 125), State Public Safety Headquarters Building, 215 East 7th Street, Des Moines, Iowa 50319. Persons may present their views orally or in writing at the public hearing. Persons who wish to make oral presentations at the public hearing should contact the Agency Rules Administrator, Iowa Department of Public Safety, State Public Safety Headquarters Building, 215 East 7th Street, Des Moines, Iowa 50319, by mail; by telephone at (515)725-6185; or by electronic mail to admrule@dps.state.ia.us, at least one day prior to the public hearing.     Any written comments or information regarding this proposed amendment may be directed to the Agency Rules Administrator by mail or electronic mail at the addresses indicated by 4:30 p.m. on October 14, 2008, or submitted at the public hearing. Persons who wish to convey their views orally other than at the public hearing may contact the Agency Rules Administrator by telephone or in person at the Department office at least one day prior to the public hearing.    This amendment is intended to implement Iowa Code section 103A.7.    The following amendment is proposed.

    ITEM 1.    Amend rule 661—301.5(103A) as follows:

661—301.5(103A) Electrical requirements.  The provisions of the National Electrica l Code, 2005 2008 edition, published by the National Fire Protection Association, 1 Batterymarch Park, Quincy, MA 02169-7471, are hereby adopted by reference as the requirements for electrical installations, with the following amendments:.Delete appendices A through G.Delete all references to the “International Plumbing Code” and insert in lieu thereof “state plumbing code.”
ARC 7177BPublic Safety Department[661]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code Supplement section 103.6, the Electrical Examining Board hereby gives Notice of Intended Action to amend Chapter 504, “Standards for Electrical Work,” Iowa Administrative Code.    The Electrical Examining Board is authorized by Iowa Code Supplement section 103.6 to adopt standards for electrical work performed by persons licensed by the Board and in installations subject to inspection by the State Electrical Inspection Program. The statute requires that these standards be based upon the most current edition of the National Electrical Code published by the National Fire Protection Association. The amendment proposed herein would update the rules of the Electrical Examining Board to adopt by reference the National Electrical Code, 2008 edition. Similar rule makings are being undertaken by the Building Code Commissioner and the State Fire Marshal.    A public hearing on this proposed amendment will be held on October 16, 2008, at 10:15 a.m. in the First Floor Public Conference Room (Room 125), State Public Safety Headquarters Building, 215 East 7th Street, Des Moines, Iowa 50319. Persons may present their views orally or in writing at the public hearings. Persons who wish to make oral presentations at the public hearing should contact the Agency Rules Administrator, Iowa Department of Public Safety, Wallace State Office Building, Des Moines, Iowa 50319, by mail; by telephone at (515)725-6185; or by electronic mail to admrule@dps.state.ia.us, at least one day prior to the public hearing.    Any written comments or information regarding this proposed amendment may be directed to the Agency Rules Administrator by mail or electronic mail at the addresses indicated by 4:30 p.m. on October 16, 2008, or submitted at the public hearing. Persons who wish to convey their views orally other than at the public hearing may contact the Agency Rules Administrator by telephone or in person at the Department office at least one day prior to the public hearing.    This amendment is intended to implement Iowa Code Supplement chapter 103.    The following amendment is proposed.

    ITEM 1.    Amend rule 661—504.1(82GA,ch197) as follows:

661—504.1(82GA,ch197103) Installation requirements.  The provisions of the National Electrical Code, 20052008 edition, published by the National Fire Protection Association, Batterymarch Park, Quincy, Massachusetts, 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 2007 Iowa Acts, chapter 197.       This rule is intended to implement 2007 Iowa Acts, chapter 197Iowa Code Supplement chapter 103.
ARC 7176BPublic Safety Department[661]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code Supplement section 103.6, the Electrical Examining Board hereby gives Notice of Intended Action to adopt new Chapter 550, “Electrical Inspection Program—Organization and Administration,” Chapter 551, “Electrical Inspection Program—Definitions,” Chapter 552, “Electrical Inspection Program—Permits and Inspections,” Chapter 553, “Civil Penalties,” and Chapter 559, “Electrical Inspection Program—Utility Notifications and Responsibilities of Utilities,” Iowa Administrative Code.    During the 2007 session of the Iowa General Assembly, House File 897, now 2007 Iowa Acts, chapter 197, was enacted. This Act created the state’s new electrician licensing program, which took effect on January 1, 2008, and a state electrical inspection program, which will become effective January 1, 2009. The rules proposed herein would establish procedures and requirements for the electrical inspection program.    A public hearing on these proposed amendments will be held on October 16, 2008, at 10:15 a.m. in the First Floor Public Conference Room (Room 125), State Public Safety Headquarters Building, 215 East 7th Street, Des Moines, Iowa 50319. Persons may present their views orally or in writing at the public hearings. Persons who wish to make oral presentations at the public hearing should contact the Agency Rules Administrator, Iowa Department of Public Safety, Wallace State Office Building, Des Moines, Iowa 50319, by mail; by telephone at (515)725-6185; or by electronic mail to admrule@dps.state.ia.us, at least one day prior to the public hearing.     Any written comments or information regarding these proposed amendments may be directed to the Agency Rules Administrator by mail or electronic mail at the addresses indicated by 4:30 p.m. on October 16, 2008, or submitted at the public hearing. Persons who wish to convey their views orally other than at the public hearing may contact the Agency Rules Administrator by telephone or in person at the Department office at least one day prior to the public hearing.    These amendments are intended to implement 2007 Iowa Acts, chapter 197.    The following amendments are proposed.

    ITEM 1.    Adopt the following new 661—Chapter 550: CHAPTER 550ELECTRICAL INSPECTION PROGRAM—ORGANIZATION AND ADMINISTRATION

661—550.1(103) Electrical inspection program.  The electrical inspection program is created as a section within the building code bureau in the fire marshal division of the department of public safety. The program is under the general supervision of the state fire marshal and the direct supervision of the building code commissioner, and shall be headed by a chief electrical inspector. The program shall enforce requirements for electrical installations adopted by the electrical examining board in 661—Chapter 504.

661—550.2(103) Communications.  The electrical inspection program may be contacted by telephone at [insert telephone number at time of adoption] or by U.S. mail or in person at the following address:State of Iowa Electrical Inspection ProgramFire Marshal DivisionIowa Department of Public SafetyWallace State Office Building502 East 9th StreetDes Moines, Iowa 50319Note: The Web site of the electrical inspection program, as of [insert filing date of adopted rules], is www.dps.state.ia.us/fm/electrical/inspection/.

661—550.3(103) Organization.  The electrical inspection section shall be headed by a chief electrical inspector. Reporting directly to the chief electrical inspector shall be electrical inspector supervisors, each of whom shall head a unit which shall include a number of electrical inspectors assigned by the building code commissioner and the chief electrical inspector. Each unit supervisor may designate electrical inspectors as lead workers with the approval of the chief electrical inspector and consistent with any applicable rules of the department of administrative services.

661—550.4(103) Qualifications of inspectors.  Electrical inspectors, electrical inspector supervisors, and the chief electrical inspector shall be certified as commercial and residential electrical inspectors no later than one year after starting employment in any of these positions. Certification shall be obtained from the International Association of Electrical Inspectors, P.O. Box 830848, Richardson, TX 75080-0848, as both a certified electrical inspector – residential and as a certified electrical inspector – master or from the International Code Council, 5203 Leesburg Pike, Suite 600, Falls Church, VA 22041, as both a residential electrical inspector and a commercial electrical inspector. Each of the persons employed in these classifications shall also meet any requirements established by the department of administrative services, human resource enterprise, for the job classification in which the person is employed.

661—550.5(103) Fees.   The following fees shall apply to services provided by the electrical inspection program:    550.5(1)    For each separate inspection of an installation, replacement, alteration, or repair, $25.    550.5(2)    For services, change of services, temporary services, additions, alterations, or repairs on either primary or secondary services as follows:    a.    Zero to one hundred ampere capacity, $25 plus $5 per branch circuit or feeder.    b.    One hundred one to two hundred ampere capacity, $35 plus $5 per branch circuit or feeder.    c.    For each additional one hundred ampere capacity or fraction thereof, $20 plus $5 per branch circuit or feeder.    550.5(3)   For field irrigation system inspections, $60 for each unit inspected.    550.5(4)   For the first reinspection required as a result of a correction order, $50; a second reinspection required as a result of noncompliance with the same correction order, $75; and subsequent reinspections associated with the same correction order, $100 for each reinspection.    550.5(5)   When an inspection is requested by an owner, the minimum fee shall be $30 plus $5 per branch circuit or feeder. The fee for fire and accident inspections shall be computed at the rate of $47 per hour, and mileage and other expenses shall be reimbursed.    550.5(6)   For installations requiring more than six months in the process of construction and in excess of $300 total inspection fees, the persons responsible for the installation may, after a minimum filing fee of $100, pay a prorated fee for each month and submit it with an order for payment initiated by the electrical inspector.    550.5(7)   For issuance of a permit and performance of an initial inspection when an installation has been commenced with no Permit and Inspection Request form having been filed, twice the fees that would have been applicable if a timely request for permit and inspection had been filed.       These rules are intended to implement 2007 Iowa Acts, chapter 197.

    ITEM 2.    Adopt the following new 661—Chapter 551: CHAPTER 551ELECTRICAL INSPECTION PROGRAM—DEFINITIONS

661—551.1(103) Applicability.   The definitions provided in this chapter apply to 661—Chapters 550 through 559, inclusive.

661—551.2(103) Definitions.   The following definitions apply to the electrical inspection program:        "Apprentice electrician" means any person who, as such person's principal occupation, is engaged in learning and assisting in the installation, alteration, and repair of electrical wiring, apparatus, and equipment as an employee of a person licensed under this chapter, and who is licensed by the board and is progressing toward completion of an apprenticeship training program registered by the Bureau of Apprenticeship and Training of the United States Department of Labor. For purposes of this chapter, persons who are not engaged in the installation, alteration, or repair of electrical wiring, apparatus, and equipment, either inside or outside buildings, shall not be considered apprentice electricians.        "Board" means the electrical examining board created under Iowa Code Supplement section 103.2.        "Class A journeyman electrician" means a person having the necessary qualifications, training, experience, and technical knowledge to wire for or install electrical wiring, apparatus, and equipment and to supervise apprentice electricians and who is licensed by the board.        "Class A master electrician" means a person having the necessary qualifications, training, experience, and technical knowledge to properly plan, lay out, and supervise the installation of electrical wiring, apparatus, and equipment for light, heat, power, and other purposes and who is licensed by the board.        "Class B journeyman electrician" means a person having the necessary qualifications, training, experience, and technical knowledge to wire for or install electrical wiring, apparatus, and equipment and who meets and is subject to the requirements of Iowa Code Supplement section 103.12.        "Class B master electrician" means a person having the necessary qualifications, training, experience, and technical knowledge to properly plan, lay out, and supervise the installation of electrical wiring, apparatus, and equipment and who meets and is subject to the requirements of Iowa Code Supplement section 103.10.        "Commercial installation" means an installation intended for commerce, but does not include a residential installation.        "Electrical contractor" means a person affiliated with an electrical contracting firm or business who is licensed by the board as either a class A or class B master electrician and who is also registered with the state of Iowa as a contractor.        "Industrial installation" means an installation intended for use in the manufacture or processing of products involving systematic labor or habitual employment and includes installations in which agricultural or other products are habitually or customarily processed or stored for others, either by buying or reselling on a fee basis.        "Inspector" means a person certified as an electrical inspector upon such reasonable conditions as may be adopted by the board. The board may recognize more than one class of electrical inspectors.        "New electrical installation" means the installation of electrical wiring, apparatus, and equipment for light, heat, power, and other purposes.        "Public use building or facility" means any building or facility designated for public use, including all property owned and occupied or designated for use by the state of Iowa.        "Residential installation" means an installation intended for a single-family or two-family residential dwelling or a multifamily residential dwelling not larger than a four-family dwelling.        "Routine maintenance" means the repair or replacement of existing electrical apparatus or equipment of the same size and type for which no changes in wiring are made. “Routine maintenance” by itself does not require an electrical inspection.        "Special electrician" means a person having the necessary qualifications, training, and experience in wiring or installing special classes of electrical wiring, apparatus, equipment, or installations which shall include irrigation system wiring, disconnecting and reconnecting existing air conditioning and refrigeration, and sign installation, and who is licensed by the board.        "Unclassified person" means any person, other than an apprentice electrician or other person licensed under this chapter, who, as such person's principal occupation, is engaged in learning and assisting in the installation, alteration, and repair of electrical wiring, apparatus, and equipment as an employee of a person licensed under this chapter, and who is licensed by the board as an unclassified person. For purposes of this chapter, persons who are not engaged in the installation, alteration, or repair of electrical wiring, apparatus, and equipment, either inside or outside buildings, shall not be considered unclassified persons.       These rules are intended to implement 2007 Iowa Acts, chapter 197.

    ITEM 3.    Adopt the following new 661—Chapter 552: CHAPTER 552ELECTRICAL INSPECTION PROGRAM—PERMITS AND INSPECTIONS

661—552.1(103) Required permits and inspections.  Permits and inspections are required for any of the following electrical installations:
  1. All new electrical installations for commercial or industrial applications, including installations both inside and outside buildings, and for public-use buildings and facilities and any installation at the request of the owner.
  2. All new electrical installations for residential applications in excess of single-family residential applications.
  3. All new electrical installations for single-family residential applications requiring new electrical service equipment.
  4. Any existing electrical installation observed during inspection which constitutes an electrical hazard. Existing installations shall not be deemed to constitute electrical hazards if the wiring was originally installed in accordance with the electrical code in force at the time of installation and has been maintained in that condition.
  5. Installations of alarm systems or alarm system components as provided in 661—Chapter 560.
E XCEPTION 1: Installations in political subdivisions which perform electrical inspections and which are inspected by the political subdivision are not required to be inspected by the state electrical inspection program. Any installation which is subject to inspection and is on property owned by the state or an agency of the state shall be inspected by the state electrical inspection program.E XCEPTION 2: Any electrical work which is limited to routine maintenance shall not require an inspection.

661—552.2(103) Request for inspection.  Prior to commencement of any electrical installation, the person making such installation shall notify the electrical inspection section of the installation by applying for a permit and shall request an inspection of the installation through one of the following methods:    552.2(1)   An inspection may be requested by completing and electronically submitting a Request for Permit form, available on the Web site of the electrical inspection program. Payment of the permit and inspection fees shall be submitted with the form in accordance with the instructions on the electrical inspection section Web site.N OTE : The Web site to obtain, complete, and submit a Request for Permit form is, as of [insert filing date of adopted rules]: [insert Web site address at time of adoption].    552.2(2)   An inspection may be requested by completing a Request for Inspection form and mailing it to the electrical inspection section as provided in rule 661—550.2(103). The Request for Inspection form may be obtained upon request to the electrical inspection section or from the Web site of the electrical inspection program. If a Request for Inspection is submitted by mail, it shall be postmarked no less than seven days prior to the commencement of the installation.    552.2(3)   An inspection may be requested by completing a Request for Inspection form and submitting it by fax transmission to the electrical inspection section at [insert fax number at time of adoption]. The Request for Inspection form may be obtained upon request to the electrical inspection section or from the Web site of the electrical inspection program.

661—552.3(103) Scheduling of inspections.  Subject to the availability of electrical inspectors, the electrical inspector whose territory includes the location of a requested inspection shall schedule the requested inspection to be completed within three business days of the receipt of the request. If an inspection for which a timely request has been made is not completed within three business days of the completion of the installation, a licensee who completed the installation may energize any new circuits included in the installation, although the installation remains subject to condemnation and disconnection if found to be out of compliance with any applicable provision of 661—Chapter 504 when inspected.

661—552.4(103) Report of inspection.  After the completion of an inspection, the inspector shall issue an inspection report on a form prescribed by the board. The report shall indicate the results of the inspection, which may be any of the following:    552.4(1) Approval.  If the inspector finds that the installation is in compliance with applicable requirements, the inspector shall issue a report indicating that the installation is approved.    552.4(2) Order of correction.  If the inspector finds that the installation is not in compliance with applicable requirements but does not present an imminent threat to the health or safety of any person, the inspector shall issue an order of correction, prescribing a time frame during which corrective action shall be taken by the licensee responsible for the installation to bring the installation fully into compliance.    552.4(3) Order of disconnection.  If the inspector finds that the installation is not in compliance with applicable requirements and presents an imminent threat to the health or safety of any person, the inspector shall issue an order of disconnection, requiring that the installation be disconnected until corrective action has been taken which brings the installation into full compliance with applicable requirements. The installation shall not be reconnected until corrective action has been completed and the corrected installation has been approved by an inspector as in compliance with all applicable requirements. The inspector issuing an order of disconnection shall notify the utility providing electrical service to the location of the order and shall notify the utility when the order of disconnection is no longer effective.

661—552.5(103) Appeals.  An order of correction or an order of disconnection may be appealed. However, an order of disconnection shall be complied with immediately, and the installation shall not be reconnected pending the outcome of the appeal.    552.5(1)   A person who has received an order of correction or disconnection may request an informal appeal to the chief electrical inspector within 14 days of receiving the order by contacting the electrical inspection section by telephone, fax, E-mail, or mail. The informal appeal may be heard in any manner agreed to by the person filing the appeal and the chief electrical inspector. If the order is upheld by the chief electrical inspector, the person receiving the order may file a formal appeal pursuant to subrule 552.5(2).    552.5(2)   A person who has received an order of correction or disconnection may file a request for a formal appeal to the board within 30 days of receiving the order or, if the person has filed a request for an informal appeal, within 30 days of having been notified that the chief electrical inspector has upheld the order. Formal appeals shall be processed as provided in 661—Chapter 10, except that wherever “commissioner” or “department of public safety” appears in those rules, “electrical examining board” shall be substituted.       These rules are intended to implement 2007 Iowa Acts, chapter 197.

    ITEM 4.    Adopt the following new 661—Chapter 553: CHAPTER 553CIVIL PENALTIES

661—553.1(103) Civil penalty—when applicable.  Any person who commences an electrical installation subject to inspection pursuant to 2007 Iowa Acts, chapter 197, and who fails to file a Request for Permit and Inspection form with the board within 14 days of commencing work on the electrical installation may be subject to a civil penalty. The amount of the civil penalty shall be no more than $750 and shall be determined by the chief electrical inspector.

661—553.2(103) Civil penalty—notice.  Notice shall be provided by certified mail to any person on whom a civil penalty is imposed.

661—553.3(103) Civil penalty—appeal.  Any person on whom a civil penalty has been imposed may appeal the imposition of the civil penalty to the board within 14 days of the date on which notice of the civil penalty was mailed by notifying the board in writing that the person wishes to appeal the civil penalty. An appeal of a civil penalty shall be subject to the provisions of 661—Chapter 10 which apply to contested cases, except that wherever “commissioner” or “department” appears, “electrical examining board” shall be substituted.       These rules are intended to implement 2007 Iowa Acts, chapter 197.

    ITEM 5.    Reserve 661---Chapter 554 to 661—Chapter 558.

    ITEM 6.    Adopt the following new 661—Chapter 559: CHAPTER 559ELECTRICAL INSPECTION PROGRAM—UTILITY NOTIFICATIONS AND RESPONSIBILITIES OF UTILITIES

661—559.1(103) Notification of utility.  Upon the completion of an inspection report which approves an installation, if the installation involves new electrical service, the inspector shall provide notice of the action to the utility which provides electrical service to the location of the installation.       This rule is intended to implement 2007 Iowa Acts, chapter 197.
ARC 7197BRevenue Department[701]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code chapter 17A and sections 421.14 and 421.17, the Department of Revenue hereby gives Notice of Intended Action to amend Chapter 6, “Organization, Public Inspection,” Iowa Administrative Code.    This proposed new rule provides that the Director of Revenue may extend the period of time for filing tax returns for up to one year for businesses and persons located in disaster areas declared by the Governor.    The proposed rule will not necessitate additional expenditures by political subdivisions or agencies and entities that contract with political subdivisions.    Any person who believes that the application of the discretionary provisions of this rule would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any.    The Department has determined that this proposed rule may have an impact on small business. The Department has considered the factors listed in Iowa Code section 17A.4A. The Department will issue a regulatory analysis as provided in Iowa Code section 17A.4A if a written request is filed by delivery or by mailing postmarked no later than October 27, 2008, to the Policy Section, Taxpayer Services and Policy Division, Department of Revenue, Hoover State Office Building, P.O. Box 10457, Des Moines, Iowa 50306. The request may be made by the Administrative Rules Review Committee, the Administrative Rules Coordinator, at least 25 persons signing that request who each qualify as a small business or an organization representing at least 25 such persons.    Any interested person may make written suggestions or comments on this proposed rule on or before October 14, 2008. Such written comments should be directed to the Policy Section, Taxpayer Services and Policy Division, Department of Revenue, Hoover State Office Building, P.O. Box 10457, Des Moines, Iowa 50306.    Persons who want to convey their views orally should contact the Policy Section, Taxpayer Services and Policy Division, Department of Revenue, at (515)281-8036 or at the Department of Revenue offices on the fourth floor of the Hoover State Office Building.    Requests for a public hearing must be received by October 17, 2008.    This rule is intended to implement 2008 Iowa Acts, Senate File 2400, section 52.    The following amendment is proposed.

    ITEM 1.    Adopt the following new rule 701—6.8(421):

701—6.8(421) Tax return extension in disaster areas.   If a natural disaster is declared by the governor in any area of the state, the director may extend for a period of up to one year the due date for the filing of any tax return and may suspend any associated penalty or interest that would accrue during that period of time for any affected taxpayer whose principal residence or business is located in the covered area if the director determines it necessary for the efficient administration of the tax laws of this state. The director will notify the public of any possible extensions of tax filings as well as possible suspensions of penalty and interest. Notification will be made through different means available to the director including, but not limited to, press releases, media information, and the department's Web site. Persons eligible for extension shall notify the director that they qualify and shall include a notation of the reason for the extension request on the tax return.This rule is intended to implement 2008 Iowa Acts, Senate File 2400.
ARC 7204BRevenue Department[701]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code chapter 17A and Iowa Code sections 452A.59 and 452A.76, the Department of Revenue hereby gives Notice of Intended Action to amend Chapter 18, “Taxable and Exempt Sales Determined by Method of Transaction or Usage,” to rescind Chapter 63, “Administration,” Chapter 64, “Motor Fuel,” and Chapter 65, “Special Fuel,” and to amend Chapter 67, “Administration,” Chapter 68, “Motor Fuel and Undyed Special Fuel,” and Chapter 231, “Exemptions Primarily of Benefit to Consumers,” Iowa Administrative Code.    Item 1 amends subrule 18.37(5) to replace the outdated term “gasohol” with the updated term “ethanol.”    Item 2 rescinds 701—Chapter 63, “Administration,” Chapter 64, “Motor Fuel,” and Chapter 65, “Special Fuel.” Iowa Code chapter 452A was rewritten in 1995 by House File 552, chapter 155, during the 1995 legislative session and became effective January 1, 1996. Also effective January 1, 1996, Chapter 63 was replaced by Chapter 67; Chapter 64 was replaced by Chapter 68; and Chapter 65 was replaced by Chapter 69. The administrative rules contained in 701—Chapters 63 to 65 were maintained for audit purposes. The Department has determined that these rules should be rescinded at this time.    Item 3 amends rule 701—67.1(452A), definition of “supplier,” to include persons who produce or acquire biofuel or biodiesel for storage at and distribution from a terminal.    Item 4 amends the implementation clause for rule 701—67.1(452A).    Item 5 amends rule 701—67.23(452A) by adding new subrule 67.23(5), which authorizes the Director to regard a person or facility in possession of fuel products as a person or facility defined in Iowa Code section 452A.2.    Item 6 amends Chapter 67 by adding new rule 701—67.27(452A). This new rule requires the Department to report the number of gallons of retail fuel sales, by classification, to the Governor and the Legislative Services Agency by April 1 of each year.    Item 7 amends subrule 68.2(1) to show the change in the tax rate for gasoline from 20.7 cents to 21 cents for the fiscal year beginning July 1, 2008, and ending June 30, 2009.    Item 8 amends subrule 231.2(1) to replace the outdated term “gasohol” with the updated term “ethanol.”    The proposed amendments will not necessitate additional expenditures by political subdivisions or agencies and entities which contract with political subdivisions.    Any person who believes that the application of the discretionary provisions of these amendments would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any.    The Department has determined that these proposed amendments may have an impact on small business. The Department has considered the factors listed in Iowa Code section 17A.4A. The Department will issue a regulatory analysis as provided in Iowa Code section 17A.4A if a written request is filed by delivery or by mailing postmarked no later than October 27, 2008, to the Taxpayer Service and Policy Division, Department of Revenue, Hoover State Office Building, P.O. Box 10457, Des Moines, Iowa 50306. The request may be made by the Administrative Rules Review Committee, the Administrative Rules Coordinator, or at least 25 persons signing that request who each qualify as a small business or an organization representing at least 25 such persons.    Any interested person may make written suggestions or comments on these proposed amendments on or before October 14, 2008. Such written comments should be directed to the Taxpayer Service and Policy Division, Department of Revenue, Hoover State Office Building, P.O. Box 10457, Des Moines, Iowa 50306.    Persons who want to convey their views orally should contact the Policy Section, Taxpayer Service and Policy Division, Department of Revenue, at (515)281-8036 or at the Department of Revenue offices on the fourth floor of the Hoover State Office Building.    Requests for a public hearing must be received by October 17, 2008.    These amendments are intended to implement Iowa Code sections 452A.2(35), 452A.33(2), and 452A.59 as amended by 2008 Iowa Acts, Senate File 2400, sections 62, 63, and 64.    The following amendments are proposed.

    ITEM 1.    Amend subrule 18.37(5) as follows:    18.37(5) GasoholEthanol.  For tax periods after April 30, 1981. Retail sales of gasoholethanol are exempt from Iowa sales or use tax.

    ITEM 2.    Rescind and reserve 701—Chapter 63, 701—Chapter 64701—Chapter 65.

    ITEM 3.    Amend rule 701—67.1(452A), as follows:        "Supplier" means a person who acquires motor fuel or special fuel by pipeline or marine vessel from a state, territory, or possession of the United States, or from a foreign country for storage at and distribution from a terminal and who is registered under 26 U.S.C. § 4101 for tax-free transactions in gasoline; a person who produces in this state or acquires by truck, railcar, or barge for storage at and distribution from a terminal, biofuel, biodiesel, alcohol, or alcohol derivative substances; or a person who produces, manufactures, or refines motor fuel or special fuel in this state. “Supplier” includes a person who does not meet the jurisdictional connection to this state but voluntarily agrees to act as a supplier for purposes of collecting and reporting the motor fuel or special fuel tax. “Supplier” does not include a retail dealer or wholesaler who merely blends alcohol with gasoline or biofuel with diesel before the sale or distribution of the product or a terminal operator who merely handles, in a terminal, motor fuel or special fuel consigned to the terminal operator.

    ITEM 4.    Amend rule 701—67.1(452A), as follows:       This rule is intended to implement Iowa Code Supplement sectionsections 452A.2 and 452A.59 as amended by 20062008 Iowa Acts, chapter 1142, and section 452A.3Senate File 2400.

    ITEM 5.    Adopt the following new subrule 67.23(5):    67.23(5) Efficient administration of motor fuel laws.  When in the opinion of the director it is necessary for the efficient administration of Iowa Code chapter 452A, the director may regard persons or facilities in possession of motor fuel, special fuel, biofuel, alcohol, or alcohol derivative substances as blenders, dealers, eligible purchasers, exporters, importers, restrictive suppliers, suppliers, terminal operators, or nonterminal storage facility operators. The department will notify the person or facility of the various requirements under the motor fuel tax laws and will ensure that a license is issued.

    ITEM 6.    Adopt the following new rule 701—67.27(452A):

701—67.27(452A) Retailer gallons report.  The department is required to compile information reported to it by retail dealers regarding the number of gallons of the various fuel classifications sold by retail dealers in the previous calendar year and submit a report to the governor and the legislative services agency by April 1 of each year. Each retail dealer is required to file a report with the department detailing the number of gallons sold during the previous calendar year as required by the department. The retail dealer report is due by January 31 following the close of the calendar year.The report filed by the department will include information in the aggregate relating to total sales of gasoline, ethanol blended gasoline, diesel fuel and biofuels. The report will also include appropriate percentage sales of various fuel products. The report will not include individual retail dealer information, trade secret information or confidential information.       This rule is intended to implement Iowa Code section 452A.33(2) as amended by 2008 Iowa Acts, Senate File 2400.

    ITEM 7.    Amend subrule 68.2(1) as follows:    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 June 30, 2009)LPG20¢ per gallonEthanol blended gasoline19¢ per gallon (for July 1, 2003, through June 30, 20082009)E-85 gasoline17¢ per gallon beginning January 1, 2006, through June 30, 200719¢ per gallon (for July 1, 2007, through June 30, 20082009)Aviation gasoline8¢ per gallonSpecial fuel (diesel)22.5¢ per gallonSpecial fuel (aircraft)3 ¢ per gallonCNG16¢ per 100 cu. ft.

    ITEM 8.    Amend subrule 231.2(1) as follows:    231.2(1) In general.  The sales price from the sale of motor fuel, including gasoholethanol, and special fuel is exempt from sales tax under 2005 Iowa Code section 423.3(55) if (a) the fuel is consumed for highway use, in watercraft, or in aircraft, (b) the Iowa fuel tax has been imposed and paid, and (c) no refund or credit of fuel tax has been made or will be allowed. The sales price from the sale of special fuel for diesel engines used in commercial watercraft on rivers bordering Iowa is exempt from sales tax, even though no fuel tax has been imposed and paid, providing the seller delivers the fuel to the owner’s watercraft while it is afloat.
ARC 7198BRevenue Department[701]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code sections 421.14 and 422.68, the Department of Revenue hereby gives Notice of Intended Action to amend Chapter 38, “Administration,” Chapter 41, “Determination of Taxable Income,” Chapter 42, “Adjustments to Computed Tax,” and Chapter 52, “Filing Returns, Payment of Tax and Penalty and Interest,” Iowa Administrative Code.    These amendments are proposed as a result of 2008 Iowa Acts, House Files 2539 and 2700.    Item 1 adopts new rule 701—38.19(422) to provide for the indication of health care coverage for dependent children on individual income tax returns starting with the tax year beginning January 1, 2008.    Item 2 adopts new subrule 41.5(15) to provide that an itemized deduction for charitable contributions is not allowed for individual income tax for tax years beginning on or after January 1, 2008, for the amount of the contribution which is eligible for the charitable conservation contribution tax credit.    Item 3 amends rule 701—42.23(422) to update the listing regarding the sequence of tax credits to be deducted for individual income tax.    Item 4 adopts new rule 701—42.38(422) to provide for the charitable conservation contribution tax credit for individual income tax for tax years beginning on or after January 1, 2008.    Item 5 amends rule 701—52.12(422) to update the listing regarding the sequence of tax credits to be deducted for corporation income tax.    Item 6 adopts new rule 701—52.37(422) to provide for the charitable conservation contribution tax credit for corporation income tax for tax years beginning on or after January 1, 2008. This is similar to the change in Item 4.    The proposed amendments will not necessitate additional expenditures by political subdivisions or agencies and entities which contract with political subdivisions.    Any person who believes that the application of the discretionary provisions of these amendments would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any.    The Department has determined that these proposed amendments may have an impact on small business. The Department has considered the factors listed in Iowa Code section 17A.4A. The Department will issue a regulatory analysis as provided in Iowa Code section 17A.4A if a written request is filed by delivery or by mailing postmarked no later than October 27, 2008, to the Policy Section, Taxpayer Services and Policy Division, Department of Revenue, Hoover State Office Building, P.O. Box 10457, Des Moines, Iowa 50306. The request may be made by the Administrative Rules Review Committee, the Administrative Rules Coordinator, at least 25 persons signing that request who each qualify as a small business or an organization representing at least 25 such persons.    Any interested person may make written suggestions or comments on these proposed amendments on or before October 14, 2008. Such written comments should be directed to the Policy Section, Taxpayer Services and Policy Division, Department of Revenue, Hoover State Office Building, P.O. Box 10457, Des Moines, Iowa 50306.     Persons who want to convey their views orally should contact the Policy Section, Taxpayer Services and Policy Division, Department of Revenue, at (515)281-8036 or at the Department of Revenue offices on the fourth floor of the Hoover State Office Building.    Requests for a public hearing must be received by October 17, 2008.    These amendments are intended to implement 2008 Iowa Acts, House File 2539, section 4, and House File 2700, section 62, and Iowa Code Supplement section 422.33 as amended by 2008 Iowa Acts, House File 2700, section 63.    The following amendments are proposed.

    ITEM 1.    Adopt the following new rule 701—38.19(422):

701—38.19(422) Indication of dependent child health care coverage on tax return.  For tax years beginning on or after January 1, 2008, an individual who is an Iowa resident as of December 31 of the tax year who files an Iowa individual income tax return may report on the return the presence or absence of health care coverage for each dependent child as of December 31 of the tax year for which the exemption credit described in subrule 42.2(1), paragraph “c,” is claimed. It is not mandatory that a taxpayer indicate on the tax return the presence or absence of health care coverage for each dependent, and there is no penalty if this information is not provided on the tax return.     38.19(1) Definition of health care coverage.  Health care coverage includes the following:    a.    Private health care coverage provided through an employer, a relative’s employer, or through a union.    b.    Private health care coverage purchased by an individual from a private company.    c.    Government health care coverage provided through the state Medicaid program set forth in Iowa Code chapter 249A, or the Hawk-I (Healthy and Well Kids in Iowa) program set forth in Iowa Code chapter 514I.    d.    Government health care coverage provided by the military including the Civilian Health and Medical Program of the Uniformed Services (TRICARE/CHAMPUS) and the Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA).    e.    Government health care coverage provided by the United States Department of Health and Human Services to eligible American Indians under the Indian Health Service program.     38.19(2) Notification to the taxpayer.  If the taxpayer indicates on the return that a dependent child does not have health care coverage and the taxpayer's income reflected on the tax return is within the eligibility requirements for either the Medicaid program or the Hawk-I program, the department will send a letter to the taxpayer indicating that the dependent may be eligible for health care coverage under either the Medicaid or Hawk-I program. The letter will also enclose an application for health care coverage under either the Medicaid or Hawk-I program which can be completed and sent to the Iowa department of human services. The department of human services will make the final determination on whether the taxpayer is eligible under the Medicaid or Hawk-I program. A dependent child must be under the age of 21 to be eligible for the Medicaid program, and a dependent child must be under the age of 19 to be eligible for the Hawk-I program.    38.19(3) Reporting requirements.  The department, in cooperation with the department of human services, must submit an annual report to the governor and the general assembly which will include the following:    a.    Number of Iowa families, by income level, who claim the personal exemption credit for dependent children described in subrule 42.2(1), paragraph “c.”    b.    The number of Iowa families, by income level, who claim the personal exemption credit who also indicated the presence or absence of health care coverage for their dependent children.    c.    The effect of these reporting and notification requirements on the number and percentage of children in Iowa who are uninsured.       This rule is intended to implement 2008 Iowa Acts, House File 2539, section 4.

    ITEM 2.    Adopt the following new subrule 41.5(15):    41.5(15)   Charitable contributions relating to the charitable conservation contribution tax credit. For tax years beginning on or after January 1, 2008, a taxpayer who claims a charitable conservation contribution tax credit in accordance with rule 701—42.38(422) cannot claim an itemized deduction for charitable contributions for the amount of the contribution for which the tax credit is claimed. See 701—subrule 42.38(2) for examples illustrating how this subrule is applied.

    ITEM 3.    Amend rule 701—42.23(422) as follows:

701—42.23(422) Deduction of credits.  The credits against computed tax set forth in Iowa Code sections 422.5, 422.8, 422.10 through 422.12C, and 422.110 shall be deducted in the following sequence:
  1. Personal exemption credits.
  2. Tuition and textbook credit.
  3. Nonresident and part-year resident credit.
  4. Franchise tax credit.
  5. S corporation apportionment credit.
  6. School tuition organization tax credit.
  7. Venture capital credits.
  8. Endow Iowa tax credit.
  9. Agricultural assets transfer tax credit.
  10. Film qualified expenditure tax credit.
  11. Film investment tax credit.
  12. Investment tax credit.
  13. Wind energy production tax credit.
  14. Renewable energy tax credit.
  15. New jobs credit.
  16. Economic development region revolving fund tax credit.
  17. Charitable conservation contribution tax credit.
  18. 17Alternative minimum tax credit.
  19. 18Historic preservation and cultural and entertainment district tax credit (refundable portion).
  20. 19Ethanol blended gasoline tax credit or ethanol promotion tax credit.
  21. 20Research activities credit.
  22. 21Assistive device credit.
  23. 22Out-of-state tax credit.
  24. 23Child and dependent care credit or early childhood development tax credit.
  25. 24Motor fuel credit.
  26. 25Claim of right credit (if elected in accordance with rule 701—38.18(422)).
  27. 26Wage-benefits tax credit.
  28. 27Soy-based cutting tool oil tax credit.
  29. 28Refundable portion of investment tax credit, as provided in subrule 42.2(10), paragraph “b.”
  30. 29E-85 gasoline promotion tax credit.
  31. 30Biodiesel blended fuel tax credit.
  32. 31Soy-based transformer fluid tax credit.
  33. 32Earned income tax credit.
  34. 33Estimated payments, payment with vouchers and withholding tax.
       This rule is intended to implement Iowa Code sections 422.5, 422.8, 422.10, 422.11, 422.11A, 422.11B, 422.11C, 422.11D, 422.11E, 422.11F, 422.11G, 422.11H, 422.11I, 422.11J, 422.11K, 422.11L, 422.11M, 422.11O, 422.11P, 422.11R, 422.11S, 422.11T, 422.11U, 422.12, 422.12B,and 422.12C and 422.110 and 2007 Iowa Acts, House File 892, sections 5 and 6and 2008 Iowa Acts, House File 2700, section 62.

    ITEM 4.    Adopt the following new rule 701—42.38(422):

701—42.38(422) Charitable conservation contribution tax credit.   Effective for tax years beginning on or after January 1, 2008, a charitable conservation contribution tax credit is available for individual income tax which is equal to 50 percent of the fair market value of a qualified real property interest located in Iowa that is conveyed as an unconditional charitable donation in perpetuity by a taxpayer to a qualified organization exclusively for conservation purposes.    42.38(1) Definitions.  The following definitions are applicable to this rule:        "Conservation purpose" means the same as defined in section 170(h)(4) of the Internal Revenue Code, with the exception that a conveyance of land for open space for the purpose of fulfilling density requirements to obtain subdivision or building permits is not considered a conveyance for a conservation purpose.        "Qualified organization" means the same as defined in section 170(h)(3) of the Internal Revenue Code.        "Qualified real property interest" means the same as defined in section 170(h)(2) of the Internal Revenue Code. Conservation easements and bargain sales are examples of a qualified real property interest.    42.38(2) Computation of the credit.  The credit equals 50 percent of the fair market value of the qualified real property interest. There are numerous federal revenue regulations, rulings, court cases and other provisions relating to the determination of the value of a qualified real property interest, and these are equally applicable in determining the amount of the charitable conservation contribution tax credit.The maximum amount of the tax credit is $100,000. The amount of the contribution for which the tax credit is claimed shall not be claimed as an itemized deduction for charitable contributions for Iowa income tax purposes.    42.38(3) Claiming the tax credit.  The tax credit is claimed on Form IA 148, Tax Credits Schedule. The taxpayer must attach a copy of federal Form 8283, Noncash Charitable Contributions, which reflects the calculation of the fair market value of the real property interest, to the Iowa return for the year in which the contribution is made. If a qualified appraisal of the property or other relevant information is required to be attached to federal Form 8283 for federal tax purposes, the appraisal and other relevant information must also be attached to the Iowa return. Any credit in excess of the tax liability for the tax year may be credited to the tax liability for the following 20 years or until used, whichever is the earlier. If the taxpayer claiming the credit is a partnership, limited liability company, S corporation, or an estate or trust electing to have the income taxed directly to the individual, an individual may claim the credit. The amount claimed by an individual must be based on the individual's pro-rata share of the individual's earnings of the partnership, limited liability company, S corporation, or estate or trust.    42.38(4) Examples.  The following noninclusive examples illustrate how this rule applies:       This rule is intended to implement 2008 Iowa Acts, House File 2700, section 62.

    ITEM 5.    Amend rule 701—52.12(422) as follows:

701—52.12(422) Deduction of credits.  The credits against computed tax set forth in Iowa Code sections 422.33 and 422.110 shall be deducted in the following sequence.
  1. Franchise tax credit.
  2. Venture capital credits.
  3. Endow Iowa tax credit.
  4. Agricultural assets transfer tax credit.
  5. Film qualified expenditure tax credit.
  6. Film investment tax credit.
  7. Investment tax credit.
  8. Wind energy production tax credit.
  9. Renewable energy tax credit.
  10. New jobs credit.
  11. Economic development region revolving fund tax credit.
  12. Charitable conservation contribution tax credit.
  13. 12Alternative minimum tax credit.
  14. 13Historic preservation and cultural and entertainment district tax credit.
  15. 14Corporate tax credit for certain sales tax paid by developer.
  16. 15Ethanol blended gasoline tax credit or ethanol promotion tax credit.
  17. 16Research activities credit.
  18. 17Assistive device credit.
  19. 18Motor fuel credit.
  20. 19Wage-benefits tax credit.
  21. 20Soy-based cutting tool oil tax credit.
  22. 21Refundable portion of investment tax credit, as provided in subrule 52.10(4).
  23. 22E-85 gasoline promotion tax credit.
  24. 23Biodiesel blended fuel tax credit.
  25. 24Soy-based transformer fluid tax credit.
  26. 25Estimated tax and payments with vouchers.
       This rule is intended to implement Iowa Code sections 15.333, 15.335, 422.33, 422.91 and 422.110.

    ITEM 6.    Adopt the following new rule 701—52.37(422):

701—52.37(422) Charitable conservation contribution tax credit.   Effective for tax years beginning on or after January 1, 2008, a charitable conservation contribution tax credit is available for corporation income tax which is equal to 50 percent of the fair market value of a qualified real property interest located in Iowa that is conveyed as an unconditional charitable donation in perpetuity by a taxpayer to a qualified organization exclusively for conservation purposes.    52.37(1) Definitions.  The following definitions are applicable to this rule:        "Conservation purpose" means the same as defined in Section 170(h)(4) of the Internal Revenue Code, with the exception that a conveyance of land for open space for the purpose of fulfilling density requirements to obtain subdivision or building permits is not considered a conveyance for a conservation purpose.        "Qualified organization" means the same as defined in Section 170(h)(3) of the Internal Revenue Code.        "Qualified real property interest" means the same as defined in Section 170(h)(2) of the Internal Revenue Code. Conservation easements and bargain sales are examples of a qualified real property interest.    52.37(2) Computation of the credit.  The credit equals 50 percent of the fair market value of the qualified real property interest. There are numerous federal revenue regulations, rulings, court cases and other provisions relating to the determination of the value of a qualified real property interest, and these are equally applicable in determining the amount of the charitable conservation contribution tax credit.The maximum amount of the tax credit is $100,000. The amount of the contribution for which the tax credit is claimed shall not be claimed as a deduction for charitable contributions for Iowa income tax purposes.    52.37(3) Claiming the tax credit.  The tax credit is claimed on Form IA 148, Tax Credits Schedule. The taxpayer must attach a copy of federal Form 8283, Noncash Charitable Contributions, which reflects the calculation of the fair market value of the real property interest, to the Iowa return for the year in which the contribution is made. If a qualified appraisal of the property or other relevant information is required to be attached to federal Form 8283 for federal tax purposes, the appraisal and other relevant information must also be attached to the Iowa return. Any credit in excess of the tax liability for the tax year may be credited to the tax liability for the following 20 years or until used, whichever is the earlier. If the taxpayer claiming the credit is a partnership, limited liability company, S corporation, or an estate or trust electing to have the income taxed directly to the individual, an individual may claim the credit. The amount claimed by an individual must be based on the individual's pro-rata share of the individual's earnings of the partnership, limited liability company, S corporation, or estate or trust.    52.37(4) Examples.  The following noninclusive examples illustrate how this rule applies:       This rule is intended to implement Iowa Code Supplement section 422.33 as amended by 2008 Iowa Acts, House File 2700, section 63.
ARC 7199BRevenue Department[701]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code sections 421.14 and 422.68, the Department of Revenue hereby gives Notice of Intended Action to amend Chapter 40, “Determination of Net Income,” Chapter 41, “Determination of Taxable Income,” Chapter 42, “Adjustments to Computed Tax,” Chapter 52, “Filing Returns, Payment of Tax and Penalty and Interest,” and Chapter 53, “Determination of Net Income,” Iowa Administrative Code.    These amendments are proposed as a result of 2008 Iowa Acts, House Files 2283 and 2417 and 2008 Iowa Acts, Senate Files 2123 and 2430.    Item 1 amends subrule 40.44(1) to provide that state match payments related to individual development accounts are also exempt from Iowa individual income tax.    Item 2 amends the implementation sentence for rule 701—40.44(422,541A).    Item 3 adopts new subrule 40.60(3) to provide that the 50 percent bonus depreciation for assets acquired after December 31, 2007, but before January 1, 2009, does not apply for Iowa individual income tax.    Item 4 amends the implementation sentence for rule 701—40.60(422).    Item 5 amends rule 701—40.65(422) to provide that the increased Section 179 expensing allowance for tax periods beginning after December 31, 2007, but before January 1, 2009, does apply for Iowa individual income tax.    Item 6 amends the implementation sentence for rule 701—40.65(422).    Item 7 amends rule 701—40.72(422) to provide for an exclusion for individual income tax for a Vietnam Conflict veterans bonus received by eligible veterans who served between July 1, 1958, through May 31, 1975, and who have not received a bonus for that service from Iowa or another state.    Item 8 adopts new subrule 41.3(7) to provide that the federal rebate received by individuals in 2008 does not have to be included as part of an individual’s federal income tax refund for Iowa individual income tax purposes.    Item 9 amends the implementation sentence for rule 701—41.3(422).    Item 10 amends paragraph 42.2(11)“b” to include federal revisions made in 2007 to the research activities credit for individual income tax.    Items 11 and 12 amend paragraphs 52.7(3)“c” and 52.7(5)“c” to include federal revisions made in 2007 to the research activities credit for corporation income tax.    Item 13 amends the implementation sentence for rule 701—52.7(422).    Item 14 adopts new subrule 53.22(3) to provide that the 50 percent bonus depreciation for assets acquired after December 31, 2007, but before January 1, 2009, does not apply for Iowa corporation income tax.    Item 15 amends the implementation sentence for rule 701—53.22(422).    Item 16 amends rule 701—53.23(422) to provide that the increased Section 179 expensing allowance for tax periods beginning after December 31, 2007, but before January 1, 2009, does apply for Iowa corporation income tax.    Item 17 amends the implementation sentence for rule 701—53.23(422).    The proposed amendments will not necessitate additional expenditures by political subdivisions or agencies and entities which contract with political subdivisions.    Any person who believes that the application of the discretionary provisions of these amendments would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any.    The Department has determined that these proposed amendments may have an impact on small business. The Department has considered the factors listed in Iowa Code section 17A.4A. The Department will issue a regulatory analysis as provided in Iowa Code section 17A.4A if a written request is filed by delivery or by mailing postmarked no later than October 27, 2008, to the Policy Section, Taxpayer Services and Policy Division, Department of Revenue, Hoover State Office Building, P.O. Box 10457, Des Moines, Iowa 50306. The request may be made by the Administrative Rules Review Committee, the Administrative Rules Coordinator, at least 25 persons signing that request who each qualify as a small business or an organization representing at least 25 such persons.    Any interested person may make written suggestions or comments on these proposed amendments on or before October 14, 2008. Such written comments should be directed to the Policy Section, Taxpayer Services and Policy Division, Department of Revenue, Hoover State Office Building, P.O. Box 10457, Des Moines, Iowa 50306.    Persons who want to convey their views orally should contact the Policy Section, Taxpayer Services and Policy Division, Department of Revenue, at (515)281-8036 or at the Department of Revenue offices on the fourth floor of the Hoover State Office Building.    Requests for a public hearing must be received by October 17, 2008.    These amendments are intended to implement Iowa Code Supplement sections 15.335, 15A.9, 422.3, 422.7, 422.10, 422.32, 422.33 and 422.35 as amended by 2008 Iowa Acts, Senate File 2123; Iowa Code Supplement section 422.7 as amended by 2008 Iowa Acts, House File 2283 and Senate File 2430; and Iowa Code section 422.9 as amended by 2008 Iowa Acts, House File 2417.    The following amendments are proposed.

    ITEM 1.    Amend subrule 40.44(1) as follows:    40.44(1) Exemption of additions to individual development accounts.  The following additions to individual development accounts are exempt from the state income tax of the owners of the accounts to the extent the additions were subject to federal income tax:    a.    The amount of contributions made in the tax year to an account by persons and entities other than the owner of the account.    b.    The amount of any savings refund or state match payments made in the tax year to an account as authorized for contributions made to the accounts by the owner of the account.    c.    Earnings on the account in the tax year or interest earned on the account.

    ITEM 2.    Amend rule 701—40.44(422,541A), as follows:       This rule is intended to implement Iowa Code sections 422.7, 541A.2 and 541A.3 as amended by 1996 Iowa Acts, Senate File 23242008 Iowa Acts, Senate File 2430.

    ITEM 3.    Adopt the following new subrule 40.60(3):    40.60(3) Assets acquired after December 31, 2007, but before January 1, 2009.  For tax periods beginning after December 31, 2007, but beginning before January 1, 2009, the bonus depreciation of 50 percent authorized in Section 168(k) of the Internal Revenue Code, as amended by Public Law No. 110-185, Section 103, does not apply for Iowa individual income tax. Taxpayers who claim the bonus depreciation on their federal income tax return must add the total amount of depreciation claimed on assets acquired after December 31, 2007, but before January 1, 2009, and subtract the amount of depreciation taken on such property using the modified accelerated cost recovery system (MACRS) depreciation method applicable under Section 168 of the Internal Revenue Code without regard to Section 168(k).If any such property was sold or disposed of during the tax year, the applicable depreciation catch-up adjustment must be made to adjust the basis of the property for Iowa tax purposes. The gain or loss reported on the sale or disposition of these assets for federal tax purposes must be adjusted for Iowa tax purposes to account for the adjusted basis of assets.The adjustment for both depreciation and the gain or loss on the sale of qualifying assets acquired after December 31, 2007, but before January 1, 2009, can be calculated on Form IA 4562A.See rule 701—53.22(422) for examples illustrating how this rule is applied.

    ITEM 4.    Amend rule 701—40.60(422), as follows:       This rule is intended to implement Iowa Code section 422.7 as amended by 2005 Iowa Acts, House File 102.

    ITEM 5.    Amend rule 701—40.65(422), as follows:

701—40.65(422) Section 179 expensing.  For tax periods beginning on or after January 1, 2003, but beginning before January 1, 2006, the increase in the expensing allowance for qualifying property authorized in Section 179(b) of the Internal Revenue Code, as enacted by Public Law No. 108-27, Section 202, may be taken for Iowa individual income tax. If the taxpayer elects to take the increased Section 179 expensing, the Section 179 expensing allowance on the Iowa individual income tax return is the same as the Section 179 expensing allowance on the federal income tax return for tax years beginning on or after January 1, 2003, but beginning before January 1, 2006. In addition, for tax periods beginning on or after January 1, 2008, but beginning before January 1, 2009, the increase in the expensing allowance for qualifying property authorized in Section 179(b) of the Internal Revenue Code, as enacted by Public Law No.110-185, Section 102, may be taken for Iowa individual income tax.

    ITEM 6.    Amend rule 701—40.65(422), as follows:       This rule is intended to implement Iowa Code section 422.7 as amended by 2005 Iowa Acts, House File 1022008 Iowa Acts, Senate File 2123.

    ITEM 7.    Amend rule 701—40.72(422) as follows:

701—40.72(422) Exclusion of Vietnam Conflict veterans bonus.      40.72(1)   For tax years beginning on or after January 1, 2007, a taxpayer who received a bonus under the Vietnam Conflict veterans bonus program may subtract, to the extent included in federal adjusted gross income, the amount of the bonus received. The Vietnam Conflict veterans bonus is administered by the Iowa department of veterans affairs, and bonuses of up to $500 are awarded to residents of Iowa who served on active duty in the armed forces of the United States between July 1, 1973, and May 31, 1975.    40.72(2)   For tax years beginning on or after January 1, 2008, a taxpayer who received a bonus under the Vietnam Conflict veterans bonus program may subtract, to the extent included in federal adjusted gross income, the amount of the bonus received. The Vietnam Conflict veterans bonus is administered by the Iowa department of veterans affairs. Bonuses of up to $500 are awarded to veterans who were inducted into active duty service from the state of Iowa, who served on active duty in the United States armed forces from July 1, 1958, through May 31, 1975, and who have not received a bonus for that service from Iowa or another state.       This rule is intended to implement Iowa Code section 422.7 as amended by 2007 Iowa Acts, Senate File 5782008 Iowa Acts, House File 2283.

    ITEM 8.    Adopt the following new subrule 41.3(7):    41.3(7) Federal rebate received in 2008.   For tax years beginning in the 2008 calendar year, the federal tax rebate or advanced refund of federal income tax provided to certain individuals in 2008 pursuant to the federal Economic Stimulus Act of 2008 is not to be included as part of an individual's federal income tax refund for the individual's federal tax deduction for Iowa individual income tax purposes.

    ITEM 9.    Amend rule 701—41.3(422), as follows:       This rule is intended to implement Iowa Code section 422.9 as amended by 2005 Iowa Acts, Senate File 4132008 Iowa Acts, House File 2417.

    ITEM 10.    Amend paragraph 42.2(11)"b" as follows:    b.    In lieu of the credit computed under paragraph “a” of this subrule, a taxpayer may elect to compute the credit amount for qualified research expenses incurred in this state in a manner consistent with the alternative incremental credit described in Section 41(c)(4) of the Internal Revenue Code. The taxpayer may make this election regardless of the method used by the taxpayer on the taxpayer’s federal income tax return. The election made under this paragraph is for the tax year and the taxpayer may use another method or this same method for any subsequent tax year. For purposes of this alternative research credit computation, the credit percentages applicable to qualified research expenses described in clauses (i), (ii), and (iii) of Section 41(c)(4)(A) of the Internal Revenue Code are 1.65 percent, 2.20 percent, and 2.75 percent, respectively.For purposes of this subrule, the terms “base amount,” “basic research payment,” and “qualified research expense” mean the same as defined for the federal credit for increasing research activities under Section 41 of the Internal Revenue Code, except that, for purposes of the alternative incremental credit described in paragraph “b” of this subrule, such amounts are limited to research activities conducted within this state. For purposes of this subrule, “Internal Revenue Code” means the Internal Revenue Code in effect on January 1, 20072008.

    ITEM 11.    Amend paragraph 52.7(3)“c” as follows:    c.    For purposes of this subrule, the terms “base amount,” “basic research payment,” and “qualified research expense” mean the same as defined for the federal credit for increasing research activities under Section 41 of the Internal Revenue Code, except that, for purposes of the alternative incremental credit described in paragraph “b” of this subrule, such amounts are limited to research activities conducted within this state. For purposes of this rule, “Internal Revenue Code” means the Internal Revenue Code in effect on January 1, 20072008.

    ITEM 12.    Amend paragraph 52.7(5)“c” as follows:    c.    For purposes of this subrule, the terms “base amount,” “basic research payment,” and “qualified research expense” mean the same as defined for the federal credit for increasing research activities under Section 41 of the Internal Revenue Code, except that, for purposes of the alternative incremental credit described in subrule 52.7(3) of this rule, such amounts are limited to research activities conducted within the quality jobs enterprise zone. For purposes of this rule, “Internal Revenue Code” means the Internal Revenue Code in effect on January 1, 20072008.

    ITEM 13.    Amend rule 701—52.7(422), as follows:       This rule is intended to implement Iowa Code section 422.33 as amended by 2007 Iowa Acts, House File 3192008 Iowa Acts, Senate File 2123.

    ITEM 14.    Adopt the following new subrule 53.22(3):    53.22(3) Assets acquired after December 31, 2007, but before January 1, 2009.  For tax periods beginning after December 31, 2007, but beginning before January 1, 2009, the bonus depreciation of 50 percent authorized in Section 168(k) of the Internal Revenue Code, as amended by Public Law No. 110-185, Section 103, does not apply for Iowa corporation income tax. Taxpayers who claim the bonus depreciation on their federal income tax return must add the total amount of depreciation claimed on assets acquired after December 31, 2007, but before January 1, 2009, and subtract the amount of depreciation taken on such property using the modified accelerated cost recovery system (MACRS) depreciation method applicable under Section 168 of the Internal Revenue Code without regard to Section 168(k).If any such property was sold or disposed of during the tax year, the applicable depreciation catch-up adjustment must be made to adjust the basis of the property for Iowa tax purposes. The gain or loss reported on the sale or disposition of these assets for federal tax purposes must be adjusted for Iowa tax purposes to account for the adjusted basis of assets.The adjustment for both depreciation and the gain or loss on the sale of qualifying assets acquired after December 31, 2007, but before January 1, 2009, can be calculated on Form IA 4562A.The following nonexclusive examples illustrate how this subrule applies:Using the MACRS depreciation method, taxpayer claimed $539,200 of depreciation deductions on the Iowa returns for 2008-2011. This results in a basis for this asset of $460,800 ($1,000,000 - $539,200), and a gain of $39,200 ($500,000 - $460,800) on the Iowa return for 2011 on the sale of the asset. Therefore, a decrease to net income of $138,240 ($177,440 - $39,200) relating to this gain adjustment must be made on the Iowa return for 2011.

    ITEM 15.    Amend rule 701—53.22(422), as follows:       This rule is intended to implement Iowa Code section 422.35 as amended by 2005 Iowa Acts, House File 102.

    ITEM 16.    Amend rule 701—53.23(422), as follows:

701—53.23(422) Section 179 expensing.  For tax periods beginning on or after January 1, 2003, but beginning before January 1, 2006, the increase in the expensing allowance for qualifying property authorized in Section 179(b) of the Internal Revenue Code, as enacted by Public Law No. 108-27, Section 202, may be taken for Iowa corporation income tax. If the taxpayer elects to take the increased Section 179 expensing, the Section 179 expensing allowance on the Iowa corporation income tax return is the same as the Section 179 expensing allowance on the federal income tax return for tax years beginning on or after January 1, 2003, but beginning before January 1, 2006. In addition, for tax periods beginning on or after January 1, 2008, but beginning before January 1, 2009, the increase in the expensing allowance for qualifying property authorized in Section 179(b) of the Internal Revenue Code, as enacted by Public Law No.110-185, Section 102, may be taken for Iowa corporation income tax.

    ITEM 17.    Amend rule 701—53.23(422), as follows:       This rule is intended to implement Iowa Code section 422.35 as amended by 2005 Iowa Acts, House File 1022008 Iowa Acts, Senate File 2123.
ARC 7196BRevenue Department[701]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code sections 421.14 and 422.68, the Department of Revenue hereby gives Notice of Intended Action to amend Chapter 42, “Adjustments to Computed Tax,” Chapter 43, “Assessments and Refunds,” Chapter 52, “Filing Returns, Payment of Tax and Penalty and Interest,” and Chapter 58, “Filing Returns, Payment of Tax, Penalty and Interest, and Allocation of Tax Revenues,” Iowa Administrative Code.    These amendments are proposed as a result of 2008 Iowa Acts, House Files 2689 and 2700, and 2008 Iowa Acts, Senate Files 572, 2124, 2400 and 2405.    Item 1 amends paragraphs 42.24(3)“d,” “e” and “f” to provide that the wage-benefits tax credit for individual income tax will be allowed through the fiscal year ending June 30, 2011.    Item 2 adopts new subrule 42.24(5) to provide that the wage-benefits tax credit for individual income tax is repealed effective July 1, 2008, but that the wage-benefits credit will still be allowed through the fiscal year ending June 30, 2011. Item 3 amends the implementation sentence for rule 701—42.24(15I,422).    Items 4 and 6 amend rule 701—42.25(422,476B) and subrule 42.25(2) to provide that the wind energy production tax credit for individual income tax is also available to facilities that will use the electricity for on-site consumption.    Item 5 amends subrule 42.25(1) to provide that for applications for the wind energy production tax credit filed on or after March 1, 2008, a facility must consist of one or more wind turbines which have a combined nameplate generating capacity of at least two megawatts.    Item 7 amends subrule 42.25(3) to eliminate the provision that the wind energy production tax credit for individual income tax can only be transferred once. Item 8 amends the implementation sentence for rule 701—42.25(422,476B).    Item 9 amends rule 701—42.32(422) to provide that the computation and eligibility requirements for the biodiesel blended fuel tax credit for individual income tax will be done on a site-by-site basis for tax years beginning on or after January 1, 2009.    Items 10 and 11 amend rule 701—42.33(422) and paragraph 42.33(1)“a” to provide that the soy-based transformer fluid tax credit for individual income tax is available for costs incurred through December 31, 2008. Item 12 amends the implementation sentence for rule 701—42.33(422).    Item 13 amends subrule 42.35(2) to provide for an alternative format for submitting qualified expenditures relating to the film qualified expenditure tax credit for individual income tax.    Items 14 and 15 amend subrules 42.35(3) and 42.36(2) to eliminate the restriction that tax credit certificates for the film qualified expenditure tax credit and the film investment tax credit for individual income tax can only be transferred if the amount was $1,000 or more.    Items 16 and 17 amend subrules 43.4(8) and 43.4(9) to provide that the veterans trust fund checkoff and the joint keep Iowa beautiful fund and volunteer firefighter preparedness fund checkoff are only in effect until tax years beginning prior to January 1, 2008.    Item 18 adopts new subrules 43.4(10) and 43.4(11) to provide for the child abuse prevention program fund checkoff and the joint veterans trust fund and volunteer firefighter preparedness fund checkoff that takes effect for tax years beginning on or after January 1, 2008. Item 19 amends the implementation sentence for rule 701—43.4(68A,422,456A).    Item 20 amends subrule 52.1(10) to provide for the repeal of the deferment of income for start-up companies effective for tax years beginning on or after January 1, 2008. Item 21 amends the implementation sentence for rule 701—52.1(422).    Item 22 amends paragraphs 52.25(3)“d,” “e” and “f” to provide that the wage-benefits tax credit for corporation income tax will be allowed through the fiscal year ending June 30, 2011. This is similar to the change in Item 1.    Item 23 adopts new subrule 52.25(5) to provide that the wage-benefits tax credit for corporation income tax is repealed effective July 1, 2008, but that the wage-benefits credit will still be allowed through the fiscal year ending June 30, 2011. This is similar to the change in Item 2. Item 24 amends the implementation sentence for rule 701—52.25(15I,422).    Items 25 and 27 amend rule 701—52.26(422,476B) and subrule 52.26(2) to provide that the wind energy production tax credit for corporation income tax is also available to facilities that will use the electricity for on-site consumption. This is similar to the change in Items 4 and 6.    Item 26 amends subrule 52.26(1) to provide that for applications for the wind energy production tax credit filed on or after March 1, 2008, a facility must consist of one or more wind turbines which have a combined nameplate generating capacity of at least two megawatts. This is similar to the change in Item 5.    Item 28 amends subrule rule 52.26(3) to eliminate the provision that the wind energy production tax credit for corporation income tax can only be transferred once. This is similar to the change in Item 7. Item 29 amends the implementation sentence for rule 701—52.26(422,476B).    Item 30 amends rule 701—52.31(422) to provide that the computation and eligibility requirements for the biodiesel blended fuel tax credit for corporation income tax will be done on a site-by-site basis for tax years beginning on or after January 1, 2009. This is similar to the change in Item 9.    Items 31, 32 and 33 amend rule 701—52.32(422), paragraph 52.32(1)“a” and the implementation clause for rule 701—52.32(422) to provide that the soy-based transformer fluid tax credit for corporation income tax is available for costs incurred through December 31, 2008. This is similar to the change in Items 10 and 11.    Item 34 amends subrule 52.34(2) to provide for an alternative format for submitting qualified expenditures relating to the film qualified expenditure tax credit for corporation income tax. This is similar to the change in Item 13.    Items 35 and 36 amend subrules 52.34(3) and 52.35(2) to eliminate the restriction that tax credit certificates for the film qualified expenditure tax credit and the film investment tax credit for corporation income tax can only be transferred if the amount was $1,000 or more. This is similar to the change in Items 14 and 15.    Item 37 amends rule 701—58.14(15I,422) to reference the repeal of the wage-benefits credit for franchise tax.    The proposed amendments will not necessitate additional expenditures by political subdivisions or agencies and entities which contract with political subdivisions.     Any person who believes that the application of the discretionary provisions of these amendments would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any.    The Department has determined that these proposed amendments may have an impact on small business. The Department has considered the factors listed in Iowa Code section 17A.4A. The Department will issue a regulatory analysis as provided in Iowa Code section 17A.4A if a written request is filed by delivery or by mailing postmarked no later than October 27, 2008, to the Policy Section, Taxpayer Services and Policy Division, Department of Revenue, Hoover State Office Building, P.O. Box 10457, Des Moines, Iowa 50306. The request may be made by the Administrative Rules Review Committee, the Administrative Rules Coordinator, at least 25 persons signing that request who each qualify as a small business or an organization representing at least 25 such persons.    Any interested person may make written suggestions or comments on these proposed amendments on or before October 14, 2008. Such written comments should be directed to the Policy Section, Taxpayer Services and Policy Division, Department of Revenue, Hoover State Office Building, P.O. Box 10457, Des Moines, Iowa 50306.    Persons who want to convey their views orally should contact the Policy Section, Taxpayer Services and Policy Division, Department of Revenue, at (515)281-8036 or at the Department of Revenue offices on the fourth floor of the Hoover State Office Building.    Requests for a public hearing must be received by October 17, 2008.    These amendments are intended to implement Iowa Code chapter 15I as amended by 2008 Iowa Acts, House File 2700; Iowa Code Supplement section 422.11P as amended by 2008 Iowa Acts, House File 2689; Iowa Code Supplement section 422.33 as amended by 2008 Iowa Acts, House File 2689 and Senate File 572; Iowa Code section 422.24A as amended by 2008 Iowa Acts, Senate File 2400; Iowa Code Supplement section 422.11R as amended by 2008 Iowa Acts, Senate File 572; 2008 Iowa Acts, Senate File 2124; Iowa Code chapter 476B as amended by 2008 Iowa Acts, Senate File 2405; and Iowa Code chapter 476D as amended by 2008 Iowa Acts, Senate File 572.    The following amendments are proposed.

    ITEM 1.    Amend paragraphs 42.24(3)"d,"42.24(3)"e"42.24(3)"f" as follows:    d.    The tax credit certificates that are issued in a fiscal year cannot exceed $10 million for the fiscal year ending June 30, 2007, and shall not exceed $4 million for the fiscal yearyears ending June 30, 2008, and for subsequent fiscal yearsthrough June 30, 2011. The tax credit certificates are issued on a first-come, first-served basis. Therefore, if tax credit certificates have already been issued for the $10 million limit for the fiscal year ending June 30, 2007, any applications for tax credit certificates received after the $10 million limit has been reached will be denied. Similarly, if tax credit certificates have already been issued for the $4 million limit for the fiscal yearyears ending June 30, 2008, and for subsequent fiscal yearsthrough June 30, 2011, any applications for tax credit certificates received after the $4 million limit has been reached will be denied. If a business failed to receive all or a part of the tax credit due to the $10 million or $4 million limitation, the business may reapply for the tax credit for the retained new job for a subsequent tax period.    e.    A business which qualifies for the tax credit for the fiscal year ending June 30, 2007, is eligible to receive the tax credit certificate for each of the four subsequent tax yearsfiscal years ending June 30, 2008, through June 30, 2011, subject to the $4 million limit for tax credits for subsequent yearsthe fiscal years ending June 30, 2008, through June 30, 2011, if the business retains the qualified new job during each of these subsequent tax yearsthe fiscal years ending June 30, 2008, through June 30, 2011. The business must reapply by June 30 of each fiscal year for the tax credit, and the percentage of the wages and benefits allowed for the credit set forth in subrule 42.24(2) for the first year is applicable for each subsequent period. Preference will be given in issuing tax credit certificates for those businesses that retain qualified new jobs, and preference will be given in the order in which applications were filed for the fiscal year ending June 30, 2007. Therefore, those businesses which received the first $4 million of tax credits for the year ending June 30, 2007, in which the qualified jobs were created will automatically receive a tax credit for a subsequent yearthe fiscal years ending June 30, 2008, through June 30, 2011, as long as the qualified jobs are retained and an application is completed.    f.    AfterFor the fiscal yearyears ending June 30, 20072008, through June 30, 2011, if credits become available because the jobs were not retained by businesses which received the first $4 million of credits for the year ending June 30, 2007, an application which was originally denied will be considered in the order in which the application was received for the fiscal year ending June 30, 2007.

    ITEM 2.    Adopt the following new subrule 42.24(5):    42.24(5) Repeal of the wage-benefits tax credit.  The wage-benefits tax credit is repealed effective July 1, 2008. However, the wage-benefits tax credit is still available through the fiscal year ending June 30, 2011, as provided in subrule 42.24(3), paragraphs “d,” “e,” and “f.” A business is not entitled to a wage-benefits tax credit for a qualified new job created on or after July 1, 2008.

    ITEM 3.    Amend rule 701—42.24(15I,422), as follows:       This rule is intended to implement Iowa Code chapter 15I as amended by 2007 Iowa Acts, Senate File 601, section 822008 Iowa Acts, House File 2700, section 167, and Iowa Code section 422.11L.

    ITEM 4.    Amend rule 701—42.25(422,476B), as follows:

701—42.25(422,476B) Wind energy production tax credit.  Effective for tax years beginning on or after July 1, 2006, an owner of a qualified wind energy production facility that has been approved by the Iowa utilities board may claim a wind energy production tax credit for qualified electricity sold by the owner or used for on-site consumption against a taxpayer’s Iowa individual income tax liability. The administrative rules for the certification of eligibility for the wind energy production tax credit for the Iowa utilities board may be found in rule 199—15.18(476B).

    ITEM 5.    Amend subrule 42.25(1), as follows:    42.25(1) Application and review process for the wind energy production tax credit.  An owner of a wind energy production facility must be approved by the Iowa utilities board in order to qualify for the wind energy production tax credit. The facility must be an electrical production facility that produces electricity from wind, is located in Iowa, and must be placed in service on or after July 1, 2005, but before July 1, 20092012. For applications filed on or after March 1, 2008, a facility must consist of one or more wind turbines which have a combined nameplate generating capacity of at least two megawatts. In addition, the facility must also be approved by the board of supervisors of the county in which the facility is located. Once the owner receives the approval from the board of supervisors, approval is not required for subsequent tax periods.

    ITEM 6.    Amend subrule 42.25(2) as follows:    42.25(2) Computation of the credit.  The wind energy production credit equals one cent multiplied by the number of kilowatt-hours of qualified electricity sold or used for on-site consumption by the owner during the tax year. For the first tax year in which the credit is applied, the kilowatt-hours of qualified electricity sold may exceed 12 months.The credit is not allowed for any kilowatt-hours of electricity sold to a related person. The definition of “related person” uses the same criteria set forth in Section 45(e)(4) of the Internal Revenue Code relating to the federal renewable electricity production credit. Persons shall be treated as related to each other if such persons are treated as a single employer under Treasury Regulation §1.52-1. In the case of a corporation that is a member of an affiliated group of corporations filing a federal consolidated return, such corporation shall be treated as selling electricity to an unrelated person if such electricity is sold to the person by another member of the affiliated group.The utilities board will notify the department of the number of kilowatt-hours of electricity sold by the qualified facility or generated and used on site by the qualified facility during the tax year. The department will calculate the credit and issue a tax credit certificate to the owner. The tax credit certificate will include the taxpayer’s name, address and federal identification number, the tax type for which the credit will be claimed, the amount of the credit and the tax year for which the credit may be claimed. In addition, the tax credit certificate will include a place for the name and tax identification number of a transferee and the amount of the tax credit certificate, as provided in subrule 42.25(3). If the department refuses to issue the tax credit certificate, the taxpayer shall be notified in writing and the taxpayer will have 60 days from the date of denial to file a protest in accordance with rule 701—7.41(17A). The department will not issue a tax credit certificate if the facility is not operational within 18 months after approval was given by the utilities board.If the taxpayer is a partnership, limited liability company, S corporation, or estate or trust requesting a credit for individual or corporation income tax, the tax credit certificate will be issued to the partners, members, shareholders or beneficiaries based on the partner’s, member’s, shareholder’s or beneficiary’s pro-rata share of earnings of the partnership, limited liability company, S corporation, or estate or trust, except when the taxpayer is eligible to receive renewable electricity production tax credits authorized under Section 45 of the Internal Revenue Code. In cases where the taxpayer is eligible to receive renewable electricity production tax credits under Section 45 of the Internal Revenue Code, the partnership, limited liability company or S corporation may designate the amount of the tax credit to be allocated to each partner, member or shareholder. In addition, if a taxpayer is a partnership, limited liability company, S corporation, or estate or trust that is eligible to receive renewable electricity production tax credits under Section 45 of the Internal Revenue Code, the taxpayer may distribute the tax credit to an equity holder or beneficiary as a liquidating distribution or portion thereof, of an equity holder’s interest in the partnership, limited liability company or S corporation, or the beneficiary’s interest in the estate or trust.The credit can be allowed for a ten-year period beginning on the date the qualified facility was originally placed in service. For example, if a facility was placed in service on April 1, 2006, the credit can be claimed for kilowatt-hours of electricity sold between April 1, 2006, and March 31, 2016.To claim the tax credit, the taxpayer must attach the tax credit certificate to the tax return for the tax year set forth on the certificate. Any tax credit in excess of the tax liability may be carried forward for seven years or until it is used, whichever is the earlier.

    ITEM 7.    Amend subrule 42.25(3), as follows:    42.25(3) Transfer of the wind energy production tax credit certificate.  The wind energy production tax credit certificate may be transferred once to any person or entity.

    ITEM 8.    Amend rule 701—42.25(422,476B), as follows:       This rule is intended to implement Iowa Code section 422.11J and chapter 476B as amended by 2008 Iowa Acts, Senate File 2405.

    ITEM 9.    Amend rule 701—42.32(422) as follows:

701—42.32(422) Biodiesel blended fuel tax credit.  Effective for tax years beginning on or after January 1, 2006, a retail dealer of biodiesel blended fuel may claim a biodiesel blended fuel tax credit. “Biodiesel blended fuel” means a blend of biodiesel with petroleum-based diesel fuel which meets the standards provided in Iowa Code section 214A.2. The biodiesel blended fuel must be formulated with a minimum percentage of 2 percent by volume of biodiesel, if the formulation meets the standards provided by section 214A.2, to qualify for the tax credit. In addition, of the total gallons of diesel fuel sold by the retail dealer, 50 percent or more must be biodiesel blended fuel to be eligible for the tax credit for tax years beginning prior to January 1, 2009. For tax years beginning on or after January 1, 2009, the biodiesel blended fuel tax credit is calculated separately for each retail motor fuel site for which 50 percent or more of the total gallons of diesel fuel sold at the motor fuel site was biodiesel blended fuel.The tax credit equals three cents multiplied by the totalqualifying number of biodiesel blended fuel gallons sold by the taxpayer during the tax year. For purposes of this rule, tank wagon sales are considered retail sales. The credit is calculated on Form IA8864.Any credit in excess of the taxpayer’s tax liability is refundable. In lieu of claiming the refund, the taxpayer may elect to have the overpayment credited to the tax liability for the following tax year.    42.32(1) Fiscal year filers.  For taxpayers whose tax year is not on a calendar-year basis and whose tax year ends before December 31, 2006, the taxpayer may compute the tax credit on the gallons of biodiesel blended fuel sold during the period from January 1, 2006, through the end of the tax year, provided that 50 percent of all diesel fuel sold during that period was biodiesel blended fuel. Because the tax credit is repealed on January 1, 2012, a taxpayer whose tax year ends prior to December 31, 2011, may continue to claim the tax credit in the following tax year for any biodiesel blended fuel sold through December 31, 2011, provided that 50 percent of all diesel fuel sold at qualifying retail motor fuel sites during that period was biodiesel blended fuel.See 701—subrule 52.31(1) for examples illustrating how this subrule is applied.    42.32(2) Allocation of credit to owners of a business entity.  If a taxpayer claiming the biodiesel blended fuel tax credit is a partnership, limited liability company, S corporation, or an estate or trust electing to have the income taxed directly to the individual, an individual may claim the credit. The amount claimed by an individual must be based on the individual’s pro-rata share of the individual’s earnings of the partnership, limited liability company, S corporation, or estate or trust.       This rule is intended to implement 2006 Iowa Acts, House File 2754, section 41Iowa Code Supplement section 422.11P as amended by 2008 Iowa Acts, House File 2689, sections 31 and 32.

    ITEM 10.    Amend rule 701—42.33(422), as follows:

701—42.33(422) Soy-based transformer fluid tax credit.  Effective for tax periods ending after June 30, 2006, and beginning before January 1, 20082009, an electric utility may claim a soy-based transformer fluid tax credit. An electric utility, which is a public utility, city utility, or electric cooperative which furnishes electricity, may claim a credit equal to the costs incurred during the tax year for the purchase and replacement costs relating to the transition from using nonsoy-based transformer fluid to using soy-based transformer fluid.

    ITEM 11.    Amend paragraph 42.33(1)"a" as follows:    a.    The costs must be incurred after June 30, 2006, and before January 1, 20082009.

    ITEM 12.    Amend rule 701—42.33(422), implementation sentence, as follows:       This rule is intended to implement Iowa Code Supplement section 422.11R as amended by2006 Iowa Acts, Senate File 24022008 Iowa Acts, Senate File 572.

    ITEM 13.    Amend subrule 42.35(2), as follows:    42.35(2) Claiming the tax credit.  Upon completion of the registered project in Iowa, the taxpayer must submit to the film office a completed Form Z, Schedule of Qualified Expenses, or an alternative to Form Z in a format approved by IDED prior to production, listing the qualified expenditures. Upon verification of the qualified expenditures, IDED will issue a tax credit certificate to the taxpayer. The certificate will list the taxpayer’s name, address, and tax identification number; the date of project completion; the amount of the credit; the tax period for which the credit may be applied; and the type of tax for which the credit will be applied.

    ITEM 14.    Amend subrule 42.35(3), as follows:    42.35(3) Transfer of the film qualified expenditure tax credit.  The film qualified expenditure tax credit may be transferred no more than two times to any person or entity. In addition, a tax credit certificate of less than $1,000 shall not be transferable.

    ITEM 15.    Amend subrule 42.36(2), as follows:    42.36(2) Transfer of the film investment tax credit.  The film investment tax credit may be transferred no more than two times to any person or entity. In addition, a tax credit certificate of less than $1,000 shall not be transferable.

    ITEM 16.    Amend subrule 43.4(8), as follows:    43.4(8) Veterans trust fund checkoff.  For tax years beginning on or after January 1, 2006, but before January 1, 2008, a taxpayer filing an individual income tax return can designate a checkoff of $1 or more to the veterans trust fund. If the refund due on the return or the payment remitted with the return is insufficient to pay the additional amount designated by the taxpayer to the veterans trust fund, the amount credited to the veterans trust fund will be reduced accordingly. Once the taxpayer has designated a contribution to the veterans trust fund on an individual income tax return filed with the department of revenue, the taxpayer cannot amend that designation.

    ITEM 17.    Amend subrule 43.4(9), as follows:    43.4(9) Joint keep Iowa beautiful fund and volunteer firefighter preparedness fund checkoff.  For tax years beginning on or after January 1, 2006, but before January 1, 2008, a taxpayer filing an individual income tax return can designate a checkoff of $1 or more to the joint keep Iowa beautiful fund and volunteer firefighter preparedness fund. If the refund due on the return or the payment remitted with the return is insufficient to pay the additional amount designated by the taxpayer to the joint keep Iowa beautiful fund and volunteer firefighter preparedness fund, the amount credited to the joint keep Iowa beautiful fund and volunteer firefighter preparedness fund will be reduced accordingly. Once the taxpayer has designated a contribution to the joint keep Iowa beautiful fund and volunteer firefighter preparedness fund on an individual income tax return filed with the department of revenue, the taxpayer cannot amend that designation.

    ITEM 18.    Adopt the following new subrules 43.4(10) and 43.4(11):    43 43.4 4(10) Child abuse prevention program fund checkoff.  For tax years beginning on or after January 1, 2008, a taxpayer filing an individual income tax return can designate a checkoff of $1 or more to the child abuse prevention program fund. If the refund due on the return or the payment remitted with the return is insufficient to pay the additional amount designated by the taxpayer to the child abuse prevention program fund, the amount credited to the child abuse prevention program fund will be reduced accordingly. Once the taxpayer has designated a contribution to the child abuse prevention program fund on an individual income tax return filed with the department of revenue, the taxpayer cannot amend that designation.A designation to the child abuse prevention program fund checkoff may be allowed only after obligations of the taxpayer to the department of revenue, the child support recovery unit of the department of human services, the foster care recovery unit of the department of human services, the college student aid commission, the office of investigations of the department of human services, the district courts, other state agencies, the Iowa election campaign checkoff, the Iowa fish and game protection fund checkoff and the state fair foundation checkoff are satisfied.On or before January 31 of the year following the year in which Iowa income tax returns with contributions to the child abuse prevention program fund are due, the department of revenue shall transfer the total amount designated to the child abuse prevention program fund.    43 43.4 4(11) Joint veterans trust fund and volunteer fire fighter preparedness fund checkoff.   For tax years beginning on or after January 1, 2008, a taxpayer filing an individual income tax return can designate a checkoff of $1 or more to the joint veterans trust fund and volunteer fire fighter preparedness fund. If the refund due on the return or the payment remitted with the return is insufficient to pay the additional amount designated by the taxpayer to the joint veterans trust fund and volunteer fire fighter preparedness fund, the amount credited to the joint veterans trust fund and volunteer fire fighter preparedness fund will be reduced accordingly. Once the taxpayer has designated a contribution to the joint veterans trust fund and volunteer fire fighter preparedness fund on an individual income tax return filed with the department of revenue, the taxpayer cannot amend that designation.A designation to the joint veterans trust fund and volunteer fire fighter preparedness fund checkoff may be allowed only after obligations of the taxpayer to the department of revenue, the child support recovery unit of the department of human services, the foster care recovery unit of the department of human services, the college student aid commission, the office of investigations of the department of human services, the district courts, other state agencies, the Iowa election campaign checkoff, the Iowa fish and game protection fund checkoff, the state fair foundation checkoff and the child abuse prevention program fund checkoff are satisfied.On or before January 31 of the year following the year in which Iowa income tax returns with contributions to the joint veterans trust fund and volunteer fire fighter preparedness fund are due, the department of revenue shall transfer one-half of the total amount designated to the veterans trust fund, and the remaining one-half will be transferred to the volunteer fire fighter preparedness fund.

    ITEM 19.    Amend rule 701—43.4(68A,422,456A), as follows:       This rule is intended to implement Iowa Code sectionsections 422.12D,and section 422.12E,as amended by 2007 Iowa Acts, House File 923and 422.12H and 2008 Iowa Acts, Senate File 2124, division II.

    ITEM 20.    Amend subrule 52.1(10), as follows:    52.1(10) Deferment of income for start-up companies.  For tax periods beginning on or after January 1, 2002, but before January 1, 2008, a business that qualifies as a “start-up” business can defer taxable income for the first three years that the business is in operation. The deferment of income for start-up companies is repealed effective for tax years beginning on or after January 1, 2008.

    ITEM 21.    Amend rule 701—52.1(422), as follows:       This rule is intended to implement Iowa Code sections 422.21, 422.24A, 422.32, 422.33, 422.34, 422.34A, and 422.36 and Iowa Code section 422.24A as amended by 2008 Iowa Acts, Senate File 2400, section 66.

    ITEM 22.    Amend paragraphs 52.25(3)"d,"52.25(3)"e"52.25(3)"f" as follows:    d.    The tax credit certificates that are issued in a fiscal year cannot exceed $10 million for the fiscal year ending June 30, 2007, and shall not exceed $4 million for the fiscal yearyears ending June 30, 2008, and for subsequent fiscal yearsthrough June 30, 2011. The tax credit certificates are issued on a first-come, first-served basis. Therefore, if tax credit certificates have already been issued for the $10 million limit for the fiscal year ending June 30, 2007, any applications for tax credit certificates received after the $10 million limit has been reached will be denied. Similarly, if tax credit certificates have already been issued for the $4 million limit for the fiscal yearyears ending June 30, 2008, and for subsequent fiscal yearsthrough June 30, 2011, any applications for tax credit certificates received after the $4 million limit has been reached will be denied. If a business failed to receive all or a part of the tax credit due to the $10 million or $4 million limitation, the business may reapply for the tax credit for the retained new job for a subsequent tax period.    e.    A business which qualifies for the tax credit for the fiscal year ending June 30, 2007, is eligible to receive the tax credit certificate for each of the four subsequent tax yearsfiscal years ending June 30, 2008 through June 30, 2011, subject to the $4 million limit for tax credits for subsequent yearsthe fiscal years ending June 30, 2008, through June 30, 2011, if the business retains the qualified new job during each of these subsequent tax yearsthe fiscal years ending June 30, 2008, through June 30, 2011. The business must reapply by June 30 of each fiscal year for the tax credit, and the percentage of the wages and benefits allowed for the credit set forth in subrule 52.25(2) for the first year is applicable for each subsequent period. Preference will be given in issuing tax credit certificates for those businesses that retain qualified new jobs, and preference will be given in the order in which applications were filed for the fiscal year ending June 30, 2007. Therefore, those businesses which received the first $4 million of tax credits for the year ending June 30, 2007, in which the qualified jobs were created will automatically receive a tax credit for a subsequent yearthe fiscal years ending June 30, 2008, through June 30, 2011, as long as the qualified jobs are retained and an application is completed.    f.    AfterFor the fiscal yearyears ending June 30, 20072008, through June 30, 2011, if credits become available because the jobs were not retained by businesses which received the first $4 million of credits for the year ending June 30, 2007, an application which was originally denied will be considered in the order in which the application was received for the fiscal year ending June 30, 2007.

    ITEM 23.    Adopt the following new subrule 52.25(5):    52.25(5) Repeal of the wage-benefits tax credit.  The wage-benefits tax credit is repealed effective July 1, 2008. However, the wage-benefits tax credit is still available through the fiscal year ending June 30, 2011, as provided in subrule 52.25(3), paragraphs “d,” “e,” and “f.” A business is not entitled to a wage-benefits tax credit for a qualified new job created on or after July 1, 2008.

    ITEM 24.    Amend rule 701—52.25(15I,422), as follows:       This rule is intended to implement Iowa Code chapter 15I as amended by 2007 Iowa Acts, Senate File 601, section 822008 Iowa Acts, House File 2700, section 167, and Iowa Code section 422.33(18).

    ITEM 25.    Amend rule 701—52.26(422,476B), as follows:

701—52.26(422,476B) Wind energy production tax credit.  Effective for tax years beginning on or after July 1, 2006, an owner of a qualified wind energy production facility that has been approved by the Iowa utilities board may claim a wind energy production tax credit for qualified electricity sold by the owner or used for on-site consumption against a taxpayer’s Iowa corporation income tax liability. The administrative rules for the certification of eligibility for the wind energy production tax credit for the Iowa utilities board may be found in rule 199—15.18(476B).

    ITEM 26.    Amend subrule 52.26(1), as follows:    52.26(1) Application and review process for the wind energy production tax credit.  An owner of a wind energy production facility must be approved by the Iowa utilities board in order to qualify for the wind energy production tax credit. The facility must be an electrical production facility that produces electricity from wind, is located in Iowa, and must be placed in service on or after July 1, 2005, but before July 1, 20092012. For applications filed on or after March 1, 2008, a facility must consist of one or more wind turbines which have a combined nameplate generating capacity of at least two megawatts. In addition, the facility must also be approved by the board of supervisors of the county in which the facility is located. Once the owner receives the approval from the board of supervisors, approval is not required for subsequent tax periods.

    ITEM 27.    Amend subrule 52.26(2) as follows:    52.26(2) Computation of the credit.  The wind energy production credit equals one cent multiplied by the number of kilowatt-hours of qualified electricity sold or used for on-site consumption by the owner during the tax year. For the first tax year in which the credit is applied, the kilowatt-hours of qualified electricity sold may exceed 12 months.The credit is not allowed for any kilowatt-hours of electricity sold to a related person. The definition of “related person” uses the same criteria set forth in Section 45(e)(4) of the Internal Revenue Code relating to the federal renewable electricity production credit. Persons shall be treated as related to each other if such persons are treated as a single employer under Treasury Regulation §1.52-1. In the case of a corporation that is a member of an affiliated group of corporations filing a federal consolidated return, such corporation shall be treated as selling electricity to an unrelated person if such electricity is sold to the person by another member of the affiliated group.The utilities board will notify the department of the number of kilowatt-hours of electricity sold by the qualified facility or generated and used on site by the qualified facility during the tax year. The department will calculate the credit and issue a tax credit certificate to the owner. The tax credit certificate will include the taxpayer’s name, address and federal identification number, the tax type for which the credit will be claimed, the amount of the credit and the tax year for which the credit may be claimed. In addition, the tax credit certificate will include a place for the name and tax identification number of a transferee and the amount of the tax credit certificate, as provided in subrule 52.26(3). If the department refuses to issue the tax credit certificate, the taxpayer shall be notified in writing and the taxpayer will have 60 days from the date of denial to file a protest in accordance with rule 701—7.41(17A). The department will not issue a tax credit certificate if the facility is not operational within 18 months after approval was given by the utilities board.If the taxpayer is a partnership, limited liability company, S corporation, or estate or trust requesting a credit for individual or corporation income tax, the tax credit certificate will be issued to the partners, members, shareholders or beneficiaries based on the partner’s, member’s, shareholder’s or beneficiary’s pro-rata share of earnings of the partnership, limited liability company, S corporation, or estate or trust, except when the taxpayer is eligible to receive renewable electricity production tax credits authorized under Section 45 of the Internal Revenue Code. In cases where the taxpayer is eligible to receive renewable electricity production tax credits under Section 45 of the Internal Revenue Code, the partnership, limited liability company or S corporation may designate the amount of the tax credit to be allocated to each partner, member or shareholder. In addition, if a taxpayer is a partnership, limited liability company, S corporation, or estate or trust that is eligible to receive renewable electricity production tax credits under Section 45 of the Internal Revenue Code, the taxpayer may distribute the tax credit to an equity holder or beneficiary as a liquidating distribution or portion thereof, of an equity holder’s interest in the partnership, limited liability company or S corporation, or the beneficiary’s interest in the estate or trust.The credit can be allowed for a ten-year period beginning on the date the qualified facility was originally placed in service. For example, if a facility was placed in service on April 1, 2006, the credit can be claimed for kilowatt-hours of electricity sold between April 1, 2006, and March 31, 2016.To claim the tax credit, the taxpayer must attach the tax credit certificate to the tax return for the tax year set forth on the certificate. Any tax credit in excess of the tax liability may be carried forward for seven years or until it is used, whichever is the earlier.

    ITEM 28.    Amend subrule 52.26(3), as follows:    52.26(3) Transfer of the wind energy production tax credit certificate.  The wind energy production tax credit certificate may be transferred once to any person or entity.

    ITEM 29.    Amend rule 701—52.26(422,476B), as follows:       This rule is intended to implement Iowa Code section 422.33 and chapter 476B as amended by 2008 Iowa Acts, Senate File 2405.

    ITEM 30.    Amend rule 701—52.31(422) as follows:

701—52.31(422) Biodiesel blended fuel tax credit.  Effective for tax years beginning on or after January 1, 2006, a retail dealer of biodiesel blended fuel may claim a biodiesel blended fuel tax credit. “Biodiesel blended fuel” means a blend of biodiesel with petroleum-based diesel fuel which meets the standards provided in Iowa Code section 214A.2. The biodiesel blended fuel must be formulated with a minimum percentage of 2 percent by volume of biodiesel, if the formulation meets the standards provided by section 214A.2, to qualify for the tax credit. In addition, of the total gallons of diesel fuel sold by the retail dealer, 50 percent or more must be biodiesel blended fuel to be eligible for the tax credit for tax years beginning prior to January 1, 2009. For tax years beginning on or after January 1, 2009, the biodiesel blended fuel tax credit is calculated separately for each retail motor fuel site for which 50 percent or more of the total gallons of diesel fuel sold at the motor fuel site was biodiesel blended fuel.The tax credit equals three cents multiplied by the totalqualifying number of biodiesel blended fuel gallons sold by the taxpayer during the tax year. For purposes of this rule, tank wagon sales are considered retail sales. The credit is calculated on Form IA8864.Any credit in excess of the taxpayer’s tax liability is refundable. In lieu of claiming the refund, the taxpayer may elect to have the overpayment credited to the tax liability for the following tax year.    52.31(1) Fiscal year filers.  For taxpayers whose tax year is not on a calendar-year basis and whose tax year ends before December 31, 2006, the taxpayer may compute the tax credit on the gallons of biodiesel blended fuel sold during the period from January 1, 2006, through the end of the tax year, provided that 50 percent of all diesel fuel sold during that period was biodiesel blended fuel. Because the tax credit is repealed on January 1, 2012, a taxpayer whose tax year ends prior to December 31, 2011, may continue to claim the tax credit in the following tax year for any biodiesel blended fuel sold through December 31, 2011, provided that 50 percent of all diesel fuel sold at qualifying retail motor fuel sites during that period was biodiesel blended fuel.    52.31(2) Allocation of credit to owners of a business entity.  If a taxpayer claiming the biodiesel blended fuel tax credit is a partnership, limited liability company, S corporation, or an estate or trust electing to have the income taxed directly to the individual, an individual may claim the credit. The amount claimed by an individual must be based on the individual’s pro-rata share of the individual’s earnings of the partnership, limited liability company, S corporation, or estate or trust.       This rule is intended to implement Iowa Code Supplement section 422.33 as amended by 2006 Iowa Acts, House File 27542008 Iowa Acts, House File 2689, section 33.

    ITEM 31.    Amend rule 701—52.32(422), as follows:

701—52.32(422) Soy-based transformer fluid tax credit.  Effective for tax periods ending after June 30, 2006, and beginning before January 1, 20082009, an electric utility may claim a soy-based transformer fluid tax credit. An electric utility, which is a public utility, city utility, or electric cooperative which furnishes electricity, may claim thea credit equal to the costs incurred during the tax year for the purchase and replacement costs relating to the transition from using nonsoy-based transformer fluid to using soy-based transformer fluid.

    ITEM 32.    Amend paragraph 52.32(1)"a" as follows:    a.    The costs must be incurred after June 30, 2006, and before January 1, 20082009.

    ITEM 33.    Amend rule 701—52.32(422), as follows:       This rule is intended to implement Iowa Code Supplement section 422.33 as amended by2006 Iowa Acts, Senate File 24022008 Iowa Acts, Senate File 572.

    ITEM 34.    Amend subrule 52.34(2), as follows:    52.34(2) Claiming the tax credit.  Upon completion of the registered project in Iowa, the taxpayer must submit to the film office a completed Form Z, Schedule of Qualified Expenses, or an alternative to Form Z in a format approved by IDED prior to production, listing the qualified expenditures. Upon verification of the qualified expenditures, IDED will issue a tax credit certificate to the taxpayer. The certificate will list the taxpayer’s name, address, and tax identification number; the date of project completion; the amount of the credit; the tax period for which the credit may be applied; and the type of tax for which the credit will be applied.

    ITEM 35.    Amend subrule 52.34(3), as follows:    52.34(3) Transfer of the film qualified expenditure tax credit.  The film qualified expenditure tax credit may be transferred no more than two times to any person or entity. In addition, a tax credit certificate of less than $1,000 shall not be transferable.

    ITEM 36.    Amend subrule 52.35(2), as follows:    52.35(2) Transfer of the film investment tax credit.  The film investment tax credit may be transferred no more than two times to any person or entity. In addition, a tax credit certificate of less than $1,000 shall not be transferable.

    ITEM 37.    Amend rule 701—58.14(15I,422) as follows:

701—58.14(15I,422) Wage-benefits tax credit.  Effective for tax years ending on or after June 9, 2006, a wage-benefits tax credit, subject to the availability of the credit, equal to a percentage of the annual wages and benefits paid for a qualified new job created by the location or expansion of the business in Iowa is available for eligible financial institutions. For information on the eligibility for the wage-benefits tax credit, how to file applications for the wage-benefits tax credit, how the wage-benefits tax credit is computed, the repeal of the wage-benefits credit effective July 1, 2008, and other details about the credit, see rule 701—52.25(15I,422).       This rule is intended to implement Iowa Code Supplement chapter 15I as amended by 2008 Iowa Acts, House File 2700, section 167, and Iowa Code Supplement section 422.60(10) as amended by 2008 Iowa Acts, House File 2700, section 164.
ARC 7168BUtilities Division[199]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to Iowa Code sections 17A.4 and 476.2 and 2008 Iowa Acts, Senate File 2248, the Utilities Board (Board) gives notice that on September 3, 2008, the Board issued an order in Docket No. RMU-08-5, In re: Revisions to Rules Governing Certificates of Franchise Authority for Cable and Video Service [199 IAC 44], “Order Commencing Rule Making.”    The proposed amendments revise the Board's rules at 199 IAC 44 regarding certificates of franchise authority for cable and video service providers. Two of the proposed revisions reflect recent legislative changes. 2008 Iowa Acts, Senate File 2248, became effective on July 1, 2008, and made two changes to Iowa Code chapter 477A, the statute authorizing the Board to issue certificates of franchise authority to cable and video service providers. Senate File 2248 removed counties from the definition of “municipality” in Iowa Code section 477A.1(12) and added a provision to Iowa Code section 477A.2(2)“b” to allow a service provider that is subject to an existing municipal franchise to file an application for a certificate of franchise authority from the Board within 60 days prior to the expiration of the municipal franchise. The proposed amendments revise Board rule 44.2(17A,476,82GA,SF554) to reflect the amended definition of “municipality” and subrule 44.3(1) to add a provision allowing an application from a service provider subject to an existing municipal franchise agreement to be filed prior to expiration of the franchise agreement.    The proposed amendments also revise subrules 44.3(5) and 44.3(7) to require a service provider to specify the effective date of a service area modification or certificate termination and revise subrules 44.3(5) through 44.3(7) to provide that the Agency will acknowledge receipt of notice of service area modification, certificate transfer, or certificate termination by letter.    The order commencing rule making contains a more thorough discussion of the proposed rule making. The order is available on the Board's Web site at www.state.ia.us/iub.    Pursuant to Iowa Code section 17A.4(1)“a” and “b,” any interested person may file a written statement of position pertaining to the proposed amendments. The statement must be filed on or before October 14, 2008, by filing an original and ten copies in a form substantially complying with 199 IAC 2.2(2). All written statements should clearly state the author's name and address and should make specific reference to this docket. All communications should be directed to the Executive Secretary, Iowa Utilities Board, 350 Maple Street, Des Moines, Iowa 50319-0069.    No oral presentation is scheduled at this time. Pursuant to Iowa Code section 17A.4(1)“b,” an oral presentation may be requested, or the Board on its own motion may determine that an oral presentation should be scheduled.    These amendments are intended to implement Iowa Code sections 17A.4 and 476.2 and 2008 Iowa Acts, Senate File 2248.    The following amendments are proposed.

    ITEM 1.    Amend rules 199—44.2(17A,476,82GA,SF554)199—44.3(17A,476,82GA,SF554), parenthetical implementation, by striking “82GA,SF554” and inserting “477A,82GA,SF2248” in lieu thereof.

    ITEM 2.    Amend rule 199—44.2(17A,476,477A,82GA,SF2248), as follows:        "Municipality" means a county or a city.

    ITEM 3.    Amend subrule 44.3(1) as follows:    44.3(1) Existing franchise agreements.  A person providing cable service or video service pursuant to a franchise agreement with a municipality in effect before July 1, 2007, is not subject to the requirement to obtain a franchise with respect to such municipality until the franchise agreement expires or, in the case of an incumbent cable provider, until the franchise is converted to a certificate of franchise authority issued by the board. Upon expiration of a franchise, a person may choose to renegotiate a franchise agreement with a municipality or may apply for a certificate of franchise authority from the board. An application for a certificate of franchise authority from a person subject to an existing municipal franchise agreement may be filed within 60 days prior to the expiration of the agreement and, if granted, shall take effect upon the expiration date of the agreement.

    ITEM 4.    Amend subrules 44.3(5) to 44.3(7) as follows:    .(5) Modification of service area.  At least 14 days before expanding cable service or video service to a previously undesignated service area or making any other change to its previously designated service area, the holder of a certificate of franchise authority shall update the description of its service area on file with the board and shall notify the board uponof the effective date of the expansion or other change in service area using a form developed by and available from the board. The board will acknowledge receipt of a notice of service area modification by letter.    .(6) Transfer of certificate of franchise authority.  The holder of a certificate of franchise authority may transfer the certificate to any successor by filing a notice of transfer with the board and each affected municipality using a form developed by and available from the board. The notice of transfer shall include the address of the successor’s principal place of business and the names and titles of the successor’s principal executive officers with direct authority over and responsibility for the successor’s cable or video operations. A notice of transfer shall be effective on the date which is the later of (1) 14 business days after the date of filing of the notice of transfer with the board or (2) the effective date of transfer as designated by the certificate holder, provided such date is not less than 14 business days after the date the notice of transfer is filed with the board, unless the certificate holder files a notice of rescheduling of the transfer and provides a copy of such notice to each affected municipality. As of the effective date of the transfer, the successor shall assume all regulatory rights and responsibilities of the holder of the certificate. The board will acknowledge receipt of a notice of transfer by letter.    .(7) Termination of certificate of franchise authority.  The holder of a certificate of franchise authority may terminate the certificate by providing written notice of the effective date of termination to the board and to each affected municipality using a form developed by and available from the board. The board will acknowledge receipt of a notice of termination by letter.
ARC 7182BEthics and Campaign Disclosure Board, Iowa[351]Filed Without Notice

    Pursuant to the authority of Iowa Code section 68B.32A, the Iowa Ethics and Campaign Disclosure Board hereby amends Chapter 4, “Campaign Disclosure Procedures,” Iowa Administrative Code.    The 2008 General Assembly amended Iowa Code Supplement section 68A.402 to require any campaign disclosure report that is due less than five days before an election to be physically received by the Board by 4:30 p.m. of the due date to be considered timely filed. The amendment reflects this statutory change.    Pursuant to Iowa Code section 17A.4(2), the Board finds that notice and public participation prior to the adoption of this amendment are impracticable, as it is desirable to have the Board’s rules reflect current statutory requirements.    This amendment is intended to implement Iowa Code Supplement section 68A.402 as amended by 2008 Iowa Acts, Senate File 2400, sections 24 and 28.    This amendment will become effective on October 29, 2008.    The following amendment is adopted.

    ITEM 1.    Amend rule 351—4.10(68A,68B) as follows:

351—4.10(68A,68B) Time of filing.  A report must be physically received by the board or, if mailed, shall bear a United States Postal Service postmark dated on or before the report due date. Faxed, E-mailed, or electronically filed reports must be submitted on or before 11:59 p.m. of the report due date. However, as provided in Iowa Code Supplement section 68A.402 as amended by 2007 Iowa Acts, Senate File 42, section 1, and 2007 Iowa Acts, House File 413, section 32008 Iowa Acts, Senate File 2400, sections 24 and 28, any report that is required to be filed five days or less prior to an election must be physically received by the board prior to 4:30 p.m. on the report due date. If the due date falls on a Saturday, Sunday, or holiday on which the board office is closed, the due date is extended to the first working day when the board office is open.       This rule is intended to implement Iowa Code Supplement section 68A.402 as amended by 2007 Iowa Acts, Senate File 42, section 1, and 2007 Iowa Acts, House File 413, section 3, and Iowa Code section 68B.32A(6) as amended by 2007 Iowa Acts, Senate File 40, section 32008 Iowa Acts, Senate File 2400, sections 24 and 28.
    [Filed Without Notice 9/5/08, effective 10/29/08][Published 9/24/08]Editor's Note: For replacement pages for IAC, see IAC Supplement 9/24/08.
ARC 7160BEthics and Campaign Disclosure Board, Iowa[351]Adopted and Filed

    Pursuant to the authority of Iowa Code section 68B.32A, the Iowa Ethics and Campaign Disclosure Board hereby amends Chapter 4, “Campaign Disclosure Procedures,” Iowa Administrative Code.    The Board created Form DR-SFA to permit a candidate or organization that has not exceeded the $750 financial filing threshold for registering a campaign committee to use the short form “paid for by” attribution statement on political materials as set out in Iowa Code section 68A.405. The amendment requires the candidate or organization to file a Form DR-SFA with the Board prior to the distribution of political materials containing the short form attribution statement.    Notice of Intended Action was published in the Iowa Administrative Bulletin on June 18, 2008, as ARC 6848B. No oral or written comments on the amendment were received. The amendment is identical to that published under Notice.    The Board adopted this amendment on August 28, 2008.    This amendment is intended to implement Iowa Code sections 68A.201 and 68A.405.    This amendment will become effective on October 29, 2008.    The following amendment is adopted.

    ITEM 1.    Amend rule 351—4.11(68A) as follows:

351—4.11(68A) Voluntary registration—Form DR-SFA.      4.11(1) Persons voluntarily registering a committee.  A person that has not exceeded the $750 financial filing threshold may file Form DR-SFA for purposes of using the short form “paid for by” attribution statement under Iowa Code section 68A.405 and rule 351—4.38(68A). A person using the short form “paid for by” attribution statement shall file Form DR-SFA with the board prior to distributing the political material containing the short form “paid for by” attribution statement.    4.11(2) $750 threshold later exceeded.  A person filing Form DR-SFA shall not be required to file a statement of organization or be required to file disclosure reports unless the $750 threshold is later exceeded. A person that later exceeds the $750 threshold and that fails to timely file a statement of organization or to timely file disclosure reports may be subject to the appropriate board sanctions as set out by statute and board rule.       This rule is intended to implement Iowa Code sections 68A.201 and 68A.402A68A.405.
    [Filed 9/2/08, effective 10/29/08][Published 9/24/08]Editor's Note: For replacement pages for IAC, see IAC Supplement 9/24/08.
ARC 7183BEthics and Campaign Disclosure Board, Iowa[351]Filed Without Notice

    Pursuant to the authority of Iowa Code section 68B.32A, the Iowa Ethics and Campaign Disclosure Board hereby amends Chapter 4, “Campaign Disclosure Procedures,” Iowa Administrative Code.    The 2008 General Assembly amended Iowa Code section 68A.404 to lower the financial threshold for reporting an independent expenditure statement from $750 to $100. The amendments reflect this statutory change.    Pursuant to Iowa Code section 17A.4(2), the Board finds that notice and public participation prior to the adoption of these amendments are impracticable, as it is desirable to have the Board’s rules reflect current statutory requirements.    These amendments are intended to implement Iowa Code section 68A.404 as amended by 2008 Iowa Acts, House File 2700, sections 116 and 117.    These amendments will become effective on October 29, 2008.    The following amendments are adopted.

    ITEM 1.    Amend rule 351—4.27(68A), as follows:

351—4.27(68A) Filing of independent expenditure statement.  Pursuant to Iowa Code section 68A.404 as amended by 2005 Iowa Acts, House File 312, sections 13, 14, and 152008 Iowa Acts, House File 2700, sections 116 and 117, any person except a candidate or a registered committee that makes one or more independent expenditures in excess of $750$100 in the aggregate shall file an independent expenditure statement.

    ITEM 2.    Amend subrule 4.27(3) as follows:    4.27(3) Place of filing.  An independent expenditure statement shall be filed with the board at 510 East 12th Street, Suite 1A, Des Moines, Iowa 50319, or by fax at (515)281-3701 (515)281-4073. The board shall immediately make the independent expenditure statement available for public viewing via the board’s Web site at www.iowa.gov/ethics.

    ITEM 3.    Amend subrule 4.27(4) as follows:    4.27(4) Time of filing.  An independent expenditure statement shall be filed within 48 hours of the making of an independent expenditure exceeding $750$100 or independent expenditures exceeding $750$100 in the aggregate. An independent expenditure is deemed made at the time that the cost is incurred.

    ITEM 4.    Amend rule 351—4.27(68A), as follows:       This rule is intended to implement Iowa Code section 68A.404 as amended by 2005 Iowa Acts, House File 312, sections 13, 14, and 152008 Iowa Acts, House File 2700, sections 116 and 117.    [Filed Without Notice 9/5/08, effective 10/29/08][Published 9/24/08]Editor's Note: For replacement pages for IAC, see IAC Supplement 9/24/08.
ARC 7161BEthics and Campaign Disclosure Board, Iowa[351]Adopted and Filed

    Pursuant to the authority of Iowa Code section 68B.32A, the Iowa Ethics and Campaign Disclosure Board hereby amends Chapter 8, “Executive Branch Lobbying,” Iowa Administrative Code.    The amendment clarifies the type of expenses that executive branch lobbyists disclose on their executive branch lobbying reports. The sections discussing “compensation” are removed because compensation paid to executive branch lobbyists is disclosed on separate forms filed by their clients.    Notice of Intended Action was published in the Iowa Administrative Bulletin on June 18, 2008, as ARC 6849B. No oral or written comments on the amendment were received. The amendment is identical to that published under Notice.    The Board adopted this amendment on August 28, 2008.    This amendment is intended to implement Iowa Code section 68B.37.    This amendment will become effective on October 29, 2008.    The following amendment is adopted.

    ITEM 1.    Amend rule 351—8.6(68B) as follows:

351—8.6(68B) Executive branch lobbying expenditures defined.  This rule is intended to aid executive branch lobbyists in reporting expenditures as required by Iowa Code section 68B.37 that are made by lobbyists for executive branch lobbying purposes. The provisions of this rule are intended to serve as a general guideline to obtain uniform reporting. The following are defined as executive branch lobbying expenditures:    8.6(1) Expenditures defined.  The following are defined as executive branch lobbying expenditures:1.a. Direct communication expenses such as telephone calls, letters, faxes, printing, and postage for purposes of engaging in executive branch lobbying.    b.    Other tangible costs directly associated with engaging in executive branch lobbying as defined in rule 351—8.1(68B).2. Compensation received for time spent researching and drafting proposed legislation, rules, or executive orders when the draft is then submitted to any executive branch official or employee.3. Compensation received for time spent by the lobbyist communicating with executive branch officials and employees for purposes of engaging in executive branch lobbying.    8.6(2) Lobbyist client expenses   For purposes of this rule, any of thesethe expenses set out in subrule 8.6(1) incurred by a lobbyist’s client shall apply to the lobbyist and shall be a reportable expense by the lobbyist. However, an expenditure made by any organization for publishing a newsletter or other informational release for its members is not a reportable expenditure.       This rule is intended to implement Iowa Code section 68B.37.
    [Filed 9/2/08, effective 10/29/08][Published 9/24/08]Editor's Note: For replacement pages for IAC, see IAC Supplement 9/24/08.
ARC 7166BLabor Services Division[875]Adopted and Filed

    Pursuant to the authority of Iowa Code section 89A.3, the Elevator Safety Board amends Chapter 71, “Administration,” Chapter 72, “New Installations,” Chapter 75, “Fees,” and Chapter 76, “Permits,” Iowa Administrative Code.    The principal reasons for adoption of these amendments are to protect worker safety and health and to implement legislative intent. No variance provision is included in these amendments as 875—Chapter 66 sets forth applicable variance procedures.    Notice of Intended Action was published in the June 18, 2008, Iowa Administrative Bulletin as ARC 6853B. These amendments were simultaneously Adopted and Filed Emergency as ARC 6852B.    No public comment opposing these amendments was received. These amendments differ from those published under Notice of Intended Action and Adopted and Filed Emergency. The description of plan and design documents found in 72.12(4)“e” was changed to coincide with current business practice and Iowa Code section 89A.8. Paragraph “e” now reads as follows:    “e. Three copies of the prints and design documents that are certified by a professional engineer duly licensed in the state of Iowa and that bear the professional engineer's P.E. stamp for the lifts.”    These amendments shall become effective on October 29, 2008, at which time the Adopted and Filed Emergency amendments are hereby rescinded.    These amendments are intended to implement Iowa Code chapter 89A.

    ITEM 1.    Adopt the following new definitions in alphabetical order in rule 875—71.1(89A):        "AECO." An accredited elevator/escalator certification organization accredited pursuant to ASME A17.7(2007).        "Wind tower lift." A conveyance designed and utilized solely for movement of trained and authorized people and small loads in wind towers built for the production of electricity.

    ITEM 2.    Amend subrule 71.2(7) as follows:    71.2(7)   The commissioner shall assign identification numbers to all conveyances which shall be on a metal tag permanently attached to the controller or electrical disconnect in the machine room. The metal tag in a wind tower lift shall be attached in the lift cage.

    ITEM 3.    Amend subrule 71.5(5) as follows:    71.5(5) Prohibited inspections.  A special inspector shall not conduct an inspection of any conveyance to satisfy the requirements of Iowa Code section 89A.6, if the conveyance is:    a.    Owned or leased by the employer of the inspector, or    b.    Under contract for installation, alteration or maintenance by the employer of the special inspector., or    c.    A wind tower lift as described in rule 875—72.12(89A).

    ITEM 4.    Adopt the following new rule 875—72.12(89A):

875—72.12(89A) Wind tower lifts.  Wind tower lifts authorized by this rule shall not be installed in grain elevators, high-rise buildings, water towers, television towers or any facility other than a wind tower built for the production of electricity. This rule applies to all wind tower lifts, whether installed before or after May 28, 2008; however, this exception shall not apply to a wind tower lift if the contract for its installation is executed after an AECO is accredited.    72.12(1)   Wind tower lifts that meet the requirements of subrules 72.12(2) through 72.12(10) are exempt from the requirements of ASME A17.1. This temporary exemption shall terminate for a wind tower lift upon the occurrence of at least one of the following events:    a.    Three weeks have passed since the accreditation of at least one AECO, and the manufacturer of the wind tower lift has not filed with the labor commissioner an affidavit attesting that a request for Certificate of Conformance as described by ASME A17.7 (2007) was submitted to an AECO.    b.    The AECO has reviewed a request pursuant to ASME A17.7 and refused to issue a Certificate of Conformance for the model or series of lifts.    c.    The AECO has determined that modifications to the wind tower lift are necessary, and the modifications have not been made with reasonable diligence.    d.    The AECO has determined that modifications to the wind tower lift are necessary, and the labor commissioner determines the wind tower lift is not safe to operate prior to completion of the modifications.    e.    The AECO has reviewed an application pursuant to ASME A17.7 and issued a Certificate of Conformance for the model or series of lifts.    72.12(2)   A wind tower lift placed in operation on or before May 28, 2008, shall be registered by the owner with the labor commissioner no later than July 1, 2008, and shall pass an installation inspection by inspectors employed by the labor commissioner according to the schedule set by the labor commissioner. The wind tower lift shall receive a periodic inspection by the labor commissioner’s inspectors annually thereafter.    72.12(3)   The owner of a wind tower lift installed after May 28, 2008, shall register the wind tower lifts with the labor commissioner prior to its installation. A wind tower lift installed after May 28, 2008, shall pass an installation inspection by the labor commissioner’s inspectors prior to its being placed into operation. The wind tower lift shall receive a periodic inspection by the labor commissioner’s inspectors annually thereafter.    72.12(4)   Registration pursuant to this rule requires submission of the following information to the labor commissioner:    a.    The unique identifier of the wind tower.    b.    The name of the wind tower owner and contact information for the owner’s representative.    c.    The name of the wind tower lift manufacturer and contact information for the manufacturer’s representative.    d.    The location of the wind farm.    e.    Three copies of the prints and design documents that are certified by a professional engineer duly licensed in the state of Iowa and that bear the professional engineer's P.E. stamp for the lifts.    f.    The manufacturer’s complete test procedures, inspection checklists, operating manual, service manual, and related documents as determined necessary by the labor commissioner.    72.12(5)   The owner shall notify the labor commissioner within 30 days of any change in the information provided pursuant to 72.12(4)“b” and “c.”    72.12(6)   This subrule establishes reporting requirements in addition to the requirements of rule 875—71.3(89A). The manufacturer of a lift must notify the labor commissioner in writing within one week if one of its wind tower lifts anywhere in the world is involved in a personal injury accident requiring the service of a physician, a personal injury accident causing disability exceeding one day or death, or an incident causing property damage exceeding $2,000. The notification shall specifically identify the model number, serial number, and owner of the lift, and a description of the incident or accident. The labor commissioner shall determine and require necessary inspections, tests, changes or enhancements to prevent a similar incident or accident in this state.    72.12(7)   Wind tower lifts must comply with 29 CFR 1910.    72.12(8)   The manufacturer shall notify the labor commissioner within 7 days of notification to the manufacturer that an AECO has:    a.    Issued a Certificate of Conformance for the model or series of wind tower lifts,    b.    Refused to issue a Certificate of Conformance for the model or series of wind tower lifts, or    c.    Determined that modifications to the wind tower lifts are necessary.    72.12(9)   Wind tower lifts shall pass an inspection covering the following criteria:    a.    Ascending speed, descending speed, and emergency descending speed shall not exceed the manufacturer’s recommendations.    b.    Stop switch, interior lighting, cage entry door, door contact, operating controls and remote operating controls shall operate according to manufacturer’s recommendations.    c.    Interior floor and cage framework shall appear to be structurally sound.    d.    Enclosure signage recommended by the manufacturer shall be in place.    e.    Manufacturer’s data plate shall be visible.    f.    Hoisting mechanism shall appear to be structurally sound and intact from inside and outside the car.    g.    Guide shoes shall appear to be structurally sound and undamaged.    h.    Suspended power cords and strain relief devices shall reveal no visible damage.    i.    Upper and lower normal and final limits shall operate according to the manufacturer’s recommendations.    j.    Overspeed device shall successfully pass a full-load test.    k.    Overload device shall successfully pass an overload test according to the manufacturer’s recommendations.    l.    Wire rope, safety rope, and guide rope shall show no evidence of wear.    m.    Guide rope attachments, suspension attachment beam, beam tower attachments, suspension rope attachment, suspension rope secondary attachment (if present), and guide wire rope attachments shall show no evidence of wear or fatigue.    n.    The wind tower lift shall not drift when subjected to a static full load.    o.    Maintenance logs, tags, and other necessary documentation shall be available in sufficient detail to establish that maintenance is occurring pursuant to the manufacturer’s schedule.    p.    Guide rope tension device, safety rope tension device, and suspension rope tension device shall pass a visual test for proper tension.    q.    Power cord catch basket shall pass a visual inspection.    r.    Safety set distance, overspeed trip speed, overload limit setting, and maximum overload allowed shall not exceed manufacturer’s recommendations.    s.    A communication device, if installed in the car, shall be operable.    t.    Any other items on the manufacturer’s recommended inspection checklist shall pass inspection.    72.12(10)   The owner or owner’s representative shall provide weights as needed to perform necessary tests during inspections.

    ITEM 5.    Renumber subrule 75.1(3) as 75.1(4).

    ITEM 6.    Adopt the following new subrule 75.1(3):    75.1(3)   Installation inspection and permit fees for each wind tower lift as described in rule 875—72.12(89A) shall be $250. This fee includes the initial inspection; the first-year operating permit; and the issuance of a single installation permit for all of the identical wind tower lifts installed in identical wind towers in a single wind farm as the result of one construction contract. This fee is applicable to all wind tower lifts regardless of the date of installation. If a wind tower lift is not in compliance at the time of the installation inspection and has to be reinspected through no fault of the division of labor services, there shall be a reinspection fee of $150 for each additional inspection.

    ITEM 7.    Adopt the following new subrule 75.3(3):    75.3(3)   Wind tower lift inspections. The periodic (annual) inspection fee for each wind tower lift shall be $150. If the installation has to be reinspected through no fault of the division of labor services, there shall be a reinspection fee of $150. The fee for each consultative inspection is $150.

    ITEM 8.    Amend subrule 76.4(2) as follows:    76.4(2)   Escalator, moving walk, wind tower lift, and wheelchair lift operating permits shall be displayed on or near the unit for which they are issued.

    ITEM 9.    Amend subrule 76.5(1) as follows:    76.5(1)   All installation or major alteration permits shall be kept at the worksite and be made available upon request. All the wind towers covered by a single installation permit shall be considered a single worksite, and posting one copy of the installation permit at the construction project office shall be sufficient.Editor's Note: Pursuant to recommendation of the Administrative Rules Review Committee published in the Iowa Administrative Bulletin, September 10, 1986, the text of these amendments [amendments to Chs 71, 72, 75, 76] is being omitted. With the exception of the change noted above, these amendments are identical to those published under Notice as ARC 6853B and Adopted and Filed Emergency as ARC 6852B, IAB 6/18/08.[Filed 9/3/08, effective 10/29/08][Published 9/24/08][For replacement pages for IAC, see IAC Supplement 9/24/08.]
ARC 7167BLabor Services Division[875]Adopted and Filed

    Pursuant to the authority of Iowa Code section 89A.3, the Elevator Safety Board amends Chapter 71, “Administration,” Chapter 75, “Fees,” and Chapter 76, “Permits,” Iowa Administrative Code.    Pursuant to 2008 Iowa Acts, Senate File 2154, construction personnel hoists came under the jurisdiction of Iowa’s elevator safety program for the first time on July 1, 2008. These amendments establish fees for operating permits, alteration permits, installation permits and inspections of construction personnel hoists. These amendments set forth procedures for construction personnel hoist alteration permits, installation permits, registration, and operating permits.    The principal reasons for adoption of these amendments are to protect worker safety and health and to implement legislative intent. No variance provision is included in these rules as 875—Chapter 66 sets forth applicable variance procedures.    Notice of Intended Action was published in the July 16, 2008, Iowa Administrative Bulletin as ARC 6946B. No public comment was received on the proposed amendments. These amendments were simultaneously Adopted and Filed Emergency as ARC 6947B. These amendments are identical to those published under Notice of Intended Action and Adopted and Filed Emergency.    These amendments are intended to implement Iowa Code Supplement sections 89A.1, 89A.2 and 89A.9 as amended by 2008 Iowa Acts, Senate File 2154.    These amendments shall become effective on October 29, 2008, at which time the Adopted and Filed Emergency amendments are hereby rescinded.

    ITEM 1.    Amend rule 875—71.4(89A) as follows:

875—71.4(89A) Registration of conveyances.  The owner or authorized agent of each operable conveyance not previously registered shall register the conveyance on or before December 31, 1982. An application to install a new conveyance shall constitute registration for all conveyances installed on or after January 1, 1983. All registrations shall be submitted to the commissioner on forms available from the division of labor services and shall include all information requested by the labor commissioner. The registration for each construction personnel hoist installed prior to July 1, 2008, and in service on or after July 1, 2008, shall be completed no later than July 23, 2008, and shall include three copies of plans, drawings, or other engineering documents.

    ITEM 2.    Renumber subrule 75.1(4) as 75.1(5).

    ITEM 3.    Adopt the following new subrule 75.1(4):    75.1(4) Construction personnel hoists.      a.    Installation inspection and permit fees for construction personnel hoists installed on or after July 1, 2008, shall be $500 if the completed construction personnel hoist is planned for four or fewer landings and $600 if the completed construction personnel hoist is planned for five or more landings. This fee includes the initial inspection and first-year operating permit.    b.    If the plans call for a construction personnel hoist to be extended to additional floors after it is initially put into service, each extension shall be considered an alteration. The cost for each alteration shall be $150, and the installation permit for construction personnel hoists shall also serve as an alteration permit for each of the planned extensions as reported to the labor commissioner.    c.    The fees established by paragraphs “a” and “b” of this subrule shall be remitted to the division of labor services when the installation permit application is filed.    d.    If the construction personnel hoist does not comply at the time of inspection and has to be reinspected through no fault of the division of labor services, there shall be a reinspection fee of $150 for each additional inspection.    e.    Consultative inspections on construction personnel hoists may be performed at the discretion of the labor commissioner for a fee of $100 per hour, including travel time, with a minimum charge of $200.

    ITEM 4.    Amend rule 875—75.2(89A) as follows:

875—75.2(89A) Alterations.      75.2(1)   Alteration inspection and permit fees shall be $200 for alterations up to and including 25 percent; $400 for alterations of 26 percent up to and including 50 percent; and the fee schedule for new installations shall apply for alterations over 50 percent. The alterations table in rule 875—76.7(89A) shall be used to determine the change percentage. These fees include initial inspection and the alteration permit fees.    75.2(2)   If the alteration does not comply at the time of an acceptance inspection and has to be reinspected through no fault of the division of labor services, there shall be a reinspection fee of $200 for each additional inspection.    75.2(3)   TheExcept as described in subrules 75.2(4) to 75.2(6), the alteration inspection and permit fees shall be remitted to the division of labor services when the application is filed.    75.2(4)   The alteration permit application fee and alteration inspection fee for construction personnel hoists installed after July 1, 2008, are included with the installation application fee as described in rule 75.1(89A).    75.2(5)   For construction personnel hoists installed prior to July 1, 2008, and extended to additional floors on or after July 1, 2008, the combined fee for the alteration inspection and the alteration permit shall be $150.    75.2(6)   Consultative inspections associated with alteration permits may be performed at the discretion of the labor commissioner for a fee of $100 per hour, including travel time, with a minimum charge of $200.

    ITEM 5.    Amend subrule 75.3(2) as follows:    75.3(2)   Tower elevator and construction personnel hoist inspections. The periodic (annual) inspection fee for tower elevators and construction personnel hoists shall be $300. If the installation has to be reinspected through no fault of the division of labor services, there shall be a reinspection fee of $300. Each consultative inspection fee is $300.

    ITEM 6.    Adopt the following new subrule 76.2(11):    76.2(11)   For a construction personnel hoist, the planned dates for the addition of floors to the range of the construction personnel hoist, and the number of additional floors to be added in each phase.

    ITEM 7.    Amend rule 875—76.3(89A) as follows:

875—76.3(89A) Alteration permit application—drawings and specifications.  When application is made for an alteration permit, drawings and specifications of all changes to be made shall be submitted. For construction personnel hoists, if a complete installation permit application with blueprints was submitted to the labor commissioner, notice of intent to put additional floors into service shall be provided to the labor commissioner at least seven days in advance. For a construction personnel hoist installed prior to July 1, 2008, without an installation permit, a completed alteration permit shall be submitted to the labor commissioner at least seven days before the construction personnel hoist is ready for inspection each time additional floors are added.
Editor's Note: Pursuant to recommendation of the Administrative Rules Review Committee published in the Iowa Administrative Bulletin, September 10, 1986, the text of these amendments [71.4, 75.1, 75.2, 75.3(2), 76.2(11), 76.3] is being omitted. These amendments are identical to those published under Notice as ARC 6946B and Adopted and Filed Emergency as ARC 6947B, IAB 7/16/08.[Filed 9/3/08, effective 10/29/08][Published 9/24/08][For replacement pages for IAC, see IAC Supplement 9/24/08.]
ARC 7193BPharmacy Board[657]Adopted and Filed

    Pursuant to the authority of Iowa Code section 147.76, the Board of Pharmacy hereby amends Chapter 8, “Universal Practice Standards,” Iowa Administrative Code.    The amendment authorizes a hospital to make available to prescribers while they practice in the hospital generic prescription blanks or forms that may identify the hospital pharmacy.    Requests for waiver or variance of the discretionary provisions of Board rules will be considered pursuant to 657—Chapter 34.    Notice of Intended Action was published in the July 2, 2008, Iowa Administrative Bulletin as ARC 6872B. The Board received no written comments regarding the proposed amendment. The adopted amendment is identical to that published under Notice.    The amendment was approved during the July 29, 2008, meeting of the Board of Pharmacy.    This amendment will become effective on October 29, 2008.    This amendment is intended to implement Iowa Code sections 147.55 and 155A.12.    The following amendment is adopted.

    ITEM 1.    Amend subrule 8.11(5) as follows:    8.11(5) Freedom of choice/solicitation/kickbacks/fee-splitting and imprinted prescription blanks or forms.  A pharmacist or pharmacy shall not enter into any agreement which negates a patient’s freedom of choice of pharmacy services. A pharmacist or pharmacy shall not participate in prohibited agreements with any person in exchange for recommending, promoting, accepting, or promising to accept the professional pharmaceutical services of any pharmacist or pharmacy. “Person” includes an individual, corporation, partnership, association, firm, or other entity. “Prohibited agreements” includes an agreement or arrangement that provides premiums, “kickbacks,” fee-splitting, or special charges as compensation or inducement for placement of business or solicitation of patronage with any pharmacist or pharmacy. “Kickbacks” includes, but is not limited to, the provision of medication carts, facsimile machines, any other equipment, or preprinted forms or supplies for the exclusive use of a facility or practitioner at no charge or billed below reasonable market rate. A pharmacist shall not provide, cause to be provided, or offer to provide to any person authorized to prescribe prescription blanks or forms bearing the pharmacist’s or pharmacy’s name, address, or other means of identification, except that a hospital may make available to hospital staff prescribers, emergency department prescribers, and prescribers granted hospital privileges for the prescribers’ use during practice at or in the hospital generic prescription blanks or forms bearing the name, address, or telephone number of the hospital pharmacy.    [Filed 9/5/08, effective 10/29/08][Published 9/24/08]Editor's Note: For replacement pages for IAC, see IAC Supplement 9/24/08.
ARC 7192BPharmacy Board[657]Adopted and Filed

    Pursuant to the authority of Iowa Code sections 124.301 and 147.76, the Board of Pharmacy hereby amends Chapter 13, “Sterile Compounding Practices,” Iowa Administrative Code.    The amendments clarify the purpose and scope of the rules contained within Chapter 13 and add, delete, and modify definitions of terms used throughout the Chapter. Item 3 amends rule 13.11(155A) to specifically address defined conditions and examples of low-risk preparations and adds new subrule 13.11(3) relating to a new subset of low-risk preparations that are further identified as low-risk preparations with 12-hour or less beyond-use date. The new subrule identifies the conditions and criteria that classify a preparation within this category including the required equipment, area, personnel, and environmental processes. Standards for solid-frozen state are amended in subrules 13.11(1), 13.12(1), and 13.13(1) to comply with current industry standard temperatures for this state and conditions defining high-risk preparations are amended for clarity.    Rule 13.14(155A) is amended in Item 7 to clarify the provisions relating to immediate-use preparations, including the identification of circumstances that would qualify a preparation under this category and the detailing of processes relating to the compounding of immediate-use preparations. Requirements regarding the use of single-dose and multiple-dose vials are clarified in rule 13.15(155A).    The preferred placement of a biological safety cabinet or a compounding aseptic isolator containment and control device to be used in the sterile preparation of hazardous drugs is clarified in Item 9, and terms relating to sterilization methods are corrected and further clarified in Item 10.    Amendments adopted in Item 11 are intended to clarify the purpose for media-fill testing by personnel and provide guidance for the development of appropriate testing procedures. Redundant terms are deleted in Item 12, and Item 13 amends the requirements for periodic microbial air sampling to require semiannual sampling regardless of the level of sterile compounding engaged in at the compounding site.    Requests for waiver or variance of the discretionary provisions of these rules will be considered pursuant to 657—Chapter 34.    Notice of Intended Action was published in the July 2, 2008, Iowa Administrative Bulletin as ARC 6874B. The Board received one written comment regarding the proposed amendments, suggesting that the time periods in Item 7, numbered paragraphs “4” and “5” in rule 657—13.14(155A), be amended to be consistent with industry standards and with the defined beyond-use date. The adopted amendments differ from those published under Notice. Numbered paragraphs “4” and “5” have been amended to require administration of an immediate-use preparation within one hour after compounding of the preparation is completed, which is consistent with the beyond-use date. Paragraphs “4” and “5” now read as follows:    “4. Administration begins not later than one hour after compounding of the preparation is completed.”     “5. If administration has not begun within one hour after compounding of the preparation is completed, the preparation is promptly and safely discarded.”    The amendments were approved during the July 29, 2008, meeting of the Board of Pharmacy.    These amendments will become effective on October 29, 2008.    These amendments are intended to implement Iowa Code sections 124.301, 126.10, 155A.2, 155A.4, 155A.13, 155A.13A, and 155A.28.

    ITEM 1.    Amend rule 657—13.1(124,126,155A), as follows:

657—13.1(124,126,155A) Purpose and scope.  These rules establish standards and procedures for the preparation, labeling, and distribution of sterile preparations by licensed pharmacies pursuant to a physician’spractitioner's order or prescription; for sterile product quality and characteristics; for personnel training, environmental quality, and equipment standards; and for pharmaceutical care. Sterile compounding differs from nonsterile compounding primarily by requiring the maintenance of sterility when preparations are compounded exclusively with sterile ingredients and components and by requiring the achievement of sterility when preparations are compounded with nonsterile ingredients and components. The standards and procedures outlined in this chapter apply to pharmacy practice when a preparation:

    ITEM 2.    Amend rule 657—13.2(124,126,155A) as follows:

657—13.2(124,126,155A) Definitions.  For the purposes of this chapter, the following definitions shall apply:        "Anteroom" "ante area" means an ISO Class 8 or superior area where personnel perform hand hygiene and garbing procedures, staging of components, order entry, preparation labeling, and other high-particulate generating activities.        "Aseptic processing" means a method of preparing pharmaceutical and medical products that involves the separate sterilization of the product and of the package, the transfer of the product into the container, and closure of the container under at least ISO Class 5 conditions and using procedures designed to preclude contamination of drugs, packaging, equipment, or supplies by microorganisms during processing.        "Beyond-use date" means the date or time following compounding after which the preparation shall not be stored,or transported, or administered. The beyond-use date is determined from the date or time compounding of the preparation is completed.        "Biological safety cabinet, Class II" "BSC" means a ventilated cabinet having an open front with inward airflow for personnel protection, downward HEPA-filtered laminar airflow for product protection, and HEPA-filtered exhausted air for environmental protection.        "Buffer area" "cleanroom" means a room or area where the primary engineering control device is physically located and in which the concentration of airborne particles is controlled to meet an ISO Class 7 standarda specified airborne particulate cleanliness class. Microorganisms in the environment are monitored so that a microbial level for air, surface, and personnel gear is not exceeded for a specified cleanliness class. Activities that occur in the buffer area include the preparation and staging of components and supplies used when sterile preparations are compounded.        "Compounding" means the constitution, reconstitution, combination, dilution, or other process causing a change in the form, composition, or strength of any ingredient or of any other attribute of a product.        "Compounding aseptic isolator" "CAI" means a form of barrier isolator specifically designed for compounding pharmaceutical ingredients or preparations. A CAI is designed to maintain an aseptic compounding environment within the isolator throughout the compounding and material transfer processes. Air exchange into the isolator from the surrounding environment should not occur unless itthe air has first passed through a microbially retentive filter, HEPA minimum.        "Critical site" means a location that includes any component or fluid pathway surfaces or openings, such as vial septa, injection ports, beakers, opened ampoules, and needle hubs, exposed and at risk of direct contact with air, moisture, or touch contamination.        "Critical surface" means any area that provides an opportunity for exposure to contamination during aseptic processing, including sterilized products, devices, components, and containers used in the preparation, packaging and transferring of compounded sterile preparations.        "Hazardous drug" means a pharmaceutical that is antineoplastic, carcinogenic, mutagenic, or teratogenic.        "HEPA" means high efficiency particulate air.        "High-risk preparation" means a sterile preparation that is compounded from nonsterile ingredients; that is compounded with nonsterile components, containers, or equipment and requires terminal sterilization; or that meets the conditions of rule 13.13(155A).        "ISO Class 5" "Class 100 condition" means an atmospheric environment that contains less than 100 particles, 0.5 microns or larger in diameter per cubic foot of air, according to ISO standards.        "ISO Class 7" "Class 10,000 condition" means an atmospheric environment that contains less than 10,000 particles, 0.5 microns or larger in diameter per cubic foot of air, according to ISO standards.        "ISO Class 8" "Class 100,000 condition" means an atmospheric environment that contains less than 100,000 particles, 0.5 microns or larger in diameter per cubic foot of air, according to ISO standards.        "Laminar airflow workbench" "LAFW" means an apparatus designed to provide an ISO Class 5 environment for the preparation of sterile products that uses air circulation in a defined direction that passes through a HEPA filter to remove the initial particles and the particles generated within the controlled environment.        "Low-risk preparation" means a sterile preparation that is compounded with sterile equipment, sterile ingredients, and sterile contact surfaces or that meets the conditions of rule 13.11(155A).        "Media-fill test" "MFT" means a test used to validate aseptic technique of compounding personnel or of processes and to ensure that the processes used are able to produce sterile product without microbial contamination.        "MFT" means a media-fill test as specified in rule 13.25(155A).        "Medium-risk preparation" means a sterile preparation that is compounded with sterile equipment, sterile ingredients, and sterile contact surfaces and involves complex or numerous manipulations of a sterile product or that meets the conditions of rule 13.12(155A).        "Multiple-dose container" means a multiple-unit container for articles or preparations intended for parenteral administration only and usually containing antimicrobial preservatives.        "Negative pressure room" means a room that is at a lower pressure compared to adjacent spaces, creating a net airflow into the room.        "Positive pressure room" means a room that is at a higher pressure compared to adjacent spaces, creating a net airflow out of the room.        "Preparation" "compounded sterile preparation" means a sterile drug or nutrient that is preparedcompounded in a licensed pharmacy or other health care-related facility pursuant to the order of a licensed prescriber, which preparation may or may not becontain sterile products.        "Primary engineering control device" means a device or room that provides an ISO Class 5 environment during the compounding process. Such devices include, but may not be limited to, laminar airflow workbenches (LAFWs), biological safety cabinets (BSCs), and compounding aseptic isolators (CAIs).        "Product" means a commercially manufactured sterile drug or nutrient that has been evaluated for safety and efficacy by the FDA.        "Segregated compounding area" means a designated space, either a demarcated area or room, which is restricted to preparing low-risk preparations with 12-hour or less beyond-use date. A segregated compounding area shall contain a device that provides unidirectional airflow of ISO Class 5 air quality for the compounding of sterile preparations and shall be void of activities and materials that are extraneous to sterile compounding.        "Single-dose container" means a single-unit container for articles or preparations intended for parenteral administration only, intended for a single use and labeled as such. Examples include prefilled syringes, cartridges, fusion-sealed containers, and closure-sealed containers when labeled for a single use or single dose.        "Sterile compounding" means the aseptic processing in a clean air environment of any pharmaceutical including, but not limited to, the following preparations that are required to be sterile when they are administered to patients: baths and soaks for live organs and tissues,into patient body cavities, central nervous and vascular systems, eyes, and joints, and when used as baths for live organs and tissues, including by not limited to injections (e.g., colloidal dispersions, emulsions, solutions, and suspensions), aqueous bronchial and nasal inhalations, irrigations for wounds and body cavities, ophthalmic drops and ointments, and tissue implants.

    ITEM 3.    Amend rule 657—13.11(155A) as follows:

657—13.11(155A) Low-risk preparations and low-risk preparations with 12-hour or less beyond-use date.      13.11(1) Conditions defined—low-risk preparations.  Preparations compounded under all of the following conditions are at a low risk of contamination.    a.    The preparations are compounded with aseptic manipulations entirely within ISO Class 5 or superior air quality using only sterile ingredients, products, components, and devices.    b.    The compounding involves only transferring, measuring, and mixing nonot more than three commercially manufactured packages of sterile products and not more than two entries into any one container (e.g., bag, vial) of sterile product or administration container or device to make the preparation.    c.    Manipulations are limited to aseptically opening ampoules, penetrating sterile stoppers on vials with sterile needles and syringes, and transferring sterile liquids in sterile syringes to sterile administration devices, containers of other sterile products, and containers for storage and dispensing.    d.    In the absence of the preparation’s passing a sterility test and provided that the preparation is properly stored before administration, storage periods shall not exceed the following:    (1)   At controlled room temperature for 48 hours;    (2)   At a cold temperature for 14 days; or    (3)   In a solid-frozen state atbetween minus 2025 and minus 10 degrees Celsius or colder for 45 days.    13.11(2) Examples—low-risk preparations.  Examples of low-risk compounding include:    a.    The single-volume transfer of sterile dosage forms from ampoules, bottles, bags, and vials using sterile syringes with sterile needles, other administration devices, and other sterile containers. When ampoules are employed, solution content shall be passed through a sterile filter to remove any particles.    b.    The manual measuring and mixing of no more than three manufactured products including an infusion or diluent solution to compound drug admixtures and nutritional solutions.    13.11(3) Low-risk preparations with 12–hour or less beyond-use date.  If the primary engineering control device is a CAI and does not meet the requirements described in subrule 13.27(3) or is a BSC or LAFW that cannot be located within an ISO Class 7 buffer area, then only low-risk level nonhazardous and radiopharmaceutical preparations compounded pursuant to a prescriber’s order for a specific patient may be prepared, and administration of such preparations shall commence within 12 hours of compounding or as recommended in the manufacturers’ package insert, whichever is less. Preparations shall meet all four of the following criteria:    a.    The primary engineering control device shall be certified and shall maintain ISO Class 5 for exposure of critical sites and shall be in a segregated compounding area restricted to sterile compounding activities that minimize the risk of preparation contamination.    b.    The segregated compounding area shall not be in a location that has unsealed windows or doors that connect to the outdoors or high traffic flow, or that is adjacent to construction sites, warehouses, food preparation areas, or other areas presenting a risk of contamination.    c.    Personnel shall be appropriately garbed and shall perform appropriate cleansing activities prior to compounding. Sinks should be separated from the immediate area of the ISO Class 5 primary engineering control device.    d.    Appropriate procedures for cleaning and disinfecting the sterile compounding areas, for personnel training and competency evaluation, for aseptic practices and cleaning or disinfecting processes, and for environmental air sampling and testing shall be followed.

    ITEM 4.    Amend paragraph 13.12(1)"d" as follows:    d.    In the absence of the preparation’s passing a sterility test and provided that the preparation is properly stored before administration, storage periods shall not exceed the following:    (1)   At controlled room temperature for 30 hours;    (2)   At a cold temperature for 9 days; or    (3)   In a solid-frozen state atbetween minus 2025 and minus 10 degrees Celsius or colder for 45 days.

    ITEM 5.    Amend paragraphs 13.13(1)"c" and 13.13(1)"e" as follows:    c.    Nonsterile procedures such as weighing and mixing in air quality inferior to ISO Class 7 are performed before sterilization, compounding personnel are not properly garbed and gloved, or nonsterile water-containing preparations are stored for more than six hours.    e.    For a sterilized high-risk preparation, in the absence of the preparation’s passing a sterility test, the storage periods shall not exceed the following:    (1)   At controlled room temperature for 24 hours;    (2)   At a cold temperature for 3 days; or    (3)   In a solid-frozen state atbetween minus 2025 and minus 10 degrees Celsius or colder for 45 days.

    ITEM 6.    Amend rule 657—13.14(155A) as follows:

657—13.14(155A) Immediate-use preparations.  For the purpose ofThe immediate-use provisions of this rule are intended only for those situations where there is a need for emergency or immediate patient care, pharmacies are exempted from requirements described in this chapter for low- and medium-risk preparationsadministration of a sterile preparation. Such situations may include cardiopulmonary resuscitation, emergency room treatment, preparation of diagnostic agents, or critical therapy where the compounding of the preparation under low-risk level conditions would subject the patient to additional risk due to delays in therapy. Immediate-use preparations are not intended for storage for anticipated needs or for batch compounding. Medium-risk and high-risk preparations shall not be compounded as immediate-use preparations. Immediate-use preparations are exempt from the provisions of rule 13.11(155A) for low-risk preparations only when all of the following criteria are met:
  1. OnlyThe compounding process involves simple aseptic measuring and transfer manipulations are performed withof not more than three commercially manufactured packages of sterile commercial drugnonhazardous products including an infusion or diluent solutionor diagnostic radiopharmaceutical products from the manufacturers’ original containers and not more than two entries into any one container or package of sterile infusion solution or administration container or device. Hazardous drugs shall not be compounded as immediate-use preparations.
  2. Unless required for the preparation, the compounding procedure occurs continuously without delays or interruptions and doesis a continuous process not to exceed one hour.
  3. At no point during preparation are critical surfaces and ingredients of the preparation directly exposed to contact contamination, such as human touch, cosmetic flakes or particulates, blood, human body substances (e.g., nasal and oral excretions and secretions), and nonsterile inanimate sources.During compounding, aseptic technique is followed and, if the preparation is not immediately administered, the preparation is under continuous supervision to minimize the potential for contact with nonsterile surfaces, introduction of particulate matter or biological fluids, mix-ups with other sterile preparations, and direct contact with outside surfaces.
  4. Administration begins not later than two hours after compounding of the preparation has begun.
  5. If administration has not begun within two hours after compounding of the preparation has begun, the preparation is promptly and safely discarded. Immediate-use preparations shall not be stored for later use.
  6. Unless immediately and completely administered by the person who compounded the preparation or unless immediate and complete administration is witnessed by the person who compounded the preparation, the preparation shall bear a label listing patient identification information, the names and amounts of all ingredients, the name or initials of the person who compounded the preparation, and the exact one-hour beyond-use date and time.

    ITEM 7.    Amend rule 657—13.15(155A) as follows:

657—13.15(155A) Utilization of single-dose and multiple-dose containers.  Pharmacies utilizing single-dose and multiple-dose containers in sterile compounding shall comply with the following:
  1. Single-dose containers that are opened or needle-punctured shall be used within one hour if opened in air quality conditions inferior to ISO Class 5. Any remaining contents shall be discarded.
  2. Single-dose vials that are continuously exposed to ISO Class 5 or cleaner air shall be used within six hours after initial needle puncture.
  3. Opened single-dose ampoules shall not be stored for any period of time under any air quality conditions.
  4. Multiple-dose containers with antimicrobial preservatives that are entered or opened shall be used within 28 days of initial entry or opening unless otherwise specified by the manufacturer.
  5. Multiple-dose and single-dose sterile products shall not be combined for use as multiple-dose applications.

    ITEM 8.    Amend paragraph 13.20(3)"a" as follows:    a.    It is preferable for the ISO Class 5 BSC or CAI to be placed in a contained environment, physically separated from other preparation areas, where air pressure is negative and where the ISO Class 5 BSC or CAI is appropriately vented to the outside of the building.

    ITEM 9.    Amend paragraph 13.24(2)"a", as follows:    a.    Sterilization by filtration.This method of sterilization involves the passage of a fluid or solution through a sterilizing grade membrane to produce a sterile effluent.

    ITEM 10.    Amend paragraph 13.24(2)"b", as follows:    b.    ThermalTerminal sterilization.Use of saturated steam under pressure, or autoclaving, is the preferred method to terminally sterilize aqueous preparations.

    ITEM 11.    Amend rule 657—13.25(155A), as follows:

657—13.25(155A) Media-fill testing by personnel.  The pharmacy shall develop, maintain, and implement written procedures that include appropriate media-fill testing by personnel authorized to compound preparations. The issues to consider in the development of a media-fill test are media-fill procedures, media selection, fill volume, incubation, time and temperature, inspection of filled units, documentation, interpretation of results, and possible corrective actions required. Tests shall be performed without interruption in an ISO Class 5 environment under conditions that closely simulate the stressful conditions encountered during compounding of the specific risk level preparations for which the test is intended. The pharmacy shall maintain records of media-fill testing performed, and results of testing procedures shall be available to the board or agents of the board. Compounding personnel whose media-fill test vials result in gross microbial colonization shall be immediately reinstructed and reevaluated by expert compounding personnel to ensure correction of all aseptic practice deficiencies.

    ITEM 12.    Amend subrule 13.27(2) as follows:    13.27(2) Placement of primary engineering control device.  The primary engineering control device shall be placed in a cleanroom or buffer area where HEPA filters are employed and the air quality is maintained at ISO Class 7. This area shall have cleanable, nonshedding, smooth surfaces; all junctures shall be coved; and all cracks and crevices shall be caulked. The ceiling shall be impervious and hydrophobic. The buffer area shall not contain any drains or sinks. Only the furniture, equipment, supplies and other material required for compounding activities to be performed shall be brought into the room. Such items brought into the room shall be cleaned and disinfected. Placement in buffer areas and cleanrooms of objects and devices not essential to the compounding process is dictated by the measured effect of those objects and devices on the required environmental quality of air atmospheres and surfaces.

    ITEM 13.    Amend paragraph 13.29(2)"a" as follows:    a.    Air sampling.Microbial sampling of air within the primary engineering control devices, buffer areas, and anterooms is required on a monthly basis for pharmacies engaging in low- and medium-risk compounding and weekly for pharmacies engaging in high-risk compoundingat least semiannually as part of the recertification of facilities and equipment. If compounding occurs in multiple locations within an institution, environmental sampling is required for each individual compounding area.Editor's Note: Pursuant to recommendation of the Administrative Rules Review Committee published in the Iowa Administrative Bulletin, September 10, 1986, the text of these amendments [amendments to Ch 13] is being omitted. With the exception of the changes noted above, these amendments are identical to those published under Notice as ARC 6874B, IAB 7/2/08.[Filed 9/5/08, effective 10/29/08][Published 9/24/08][For replacement pages for IAC, see IAC Supplement 9/24/08.]
ARC 7159BProfessional Licensing and Regulation Bureau[193]Adopted and Filed

    Pursuant to the authority of Iowa Code section 546.2, the Professional Licensing and Regulation Bureau hereby amends Chapter 13, “Public Records and Fair Information Practices,” Iowa Administrative Code.    These amendments implement changes required by 2008 Iowa Acts, Senate File 2179, which was signed by the Governor on April 11, 2008.    Notice of Intended Action was published in the Iowa Administrative Bulletin on May 7, 2008, as ARC 6764B. No comments were received. These amendments are identical to those published under Notice.    The Bureau adopted these amendments on May 28, 2008.    These amendments are intended to implement Iowa Code chapter 546.    The amendments shall become effective October 29, 2008.    The following amendments are adopted.

    ITEM 1.    Rescind paragraph 13.12(2)"f."

    ITEM 2.    Reletter paragraphs 13.1 2(2)“g” to “m” as “f” to “l.”

    ITEM 3.    Amend subrule 13.17(3) as follows:    13.17(3) License renewal.  Licensees are requested to supply a wide range of information in connection with license renewal, including continuing education information, criminal history and disciplinary actions, as provided by board statutes, rules and application forms, both on paper and electronically. Failure to provide requested information may result in denial of the application. Most information contained on renewal applications is treated as public information freely available for public examination, but some information, such as criminal historycredit card numbers, may be confidential under state or federal law.    [Filed 9/2/08, effective 10/29/08][Published 9/24/08]Editor's Note: For replacement pages for IAC, see IAC Supplement 9/24/08.
ARC 7203BProfessional Licensure Division[645]Adopted and Filed

    Pursuant to the authority of Iowa Code section 147.76, the Board of Psychology hereby rescinds Chapter 239, “Administrative and Regulatory Authority for the Board of Psychology Examiners,” amends Chapter 240, “Licensure of Psychologists,” Chapter 241, “Continuing Education for Psychologists,” and Chapter 242, “Discipline for Psychologists,” and rescinds Chapter 243, “Fees,” Iowa Administrative Code.    These amendments rescind chapters and rules that duplicate existing rules in 645—Chapters 4 and 5; eliminate outdated or duplicative language in the requirements for licensure; clarify the process and expand the options for curriculum evaluation of foreign-trained psychologists; accept examination scores received from the state of initial licensure for endorsement applicants; provide consistency in the administrative requirements for the certified health service provider in psychology; eliminate the jurisprudence examination requirement; require new licensees to complete six hours of continuing education in legal aspects of practice; require six hours of continuing education in ethical or legal aspects of practice for subsequent renewals; allow licensees to submit mandatory reporter training for continuing education credit; revise grounds for discipline to be consistent with changes in Iowa Code chapter 147; and provide for Web-based reporting of name and address changes by licensees.    Notice of Intended Action was published in the Iowa Administrative Bulletin on July 16, 2008, as ARC 6931B. A public hearing was held on August 5, 2008, from 10 to 11 a.m. in the Fifth Floor Board Conference Room, Lucas State Office Building. Three comments were received that oppose the requirement of six hours of required continuing education in legal or ethical aspects of practice for licensed practitioners. Those comments included the following: continuing education hours should be used for new research and treatment/assessment information; individual practitioners should be allowed to decide which continuing education topics are most relevant to their practice rather than the Board's mandating continuing education that may result in passive compliance on the part of licensed psychologists; and the number of mandated hours should be changed from six to three. One of the comments stated that the jurisprudence examination should be retained as a requirement for initial licensure in lieu of mandatory continuing education in legal and ethical issues.    The Board reviewed and discussed the comments, and did not make any revisions to the noticed rule amendments. The Board noted that providers of continuing education already provide a number of educational offerings in legal, ethical and risk management areas, and that there is likely a plethora of topics that would satisfy the requirement. The Board also noted that the areas of legal, ethical and risk management have broad applicability to licensed professional practice, and that prescribing six hours in these areas is reasonable, given the total of 40 hours of continuing education required each biennium for renewal of a psychology license.    These amendments were adopted by the Board of Psychology on September 3, 2008.    These amendments will become effective October 29, 2008.    These amendments are intended to implement Iowa Code chapters 21, 147, 154B and 272C.

    ITEM 1.    Rescind and reserve 645—Chapter 239.

    ITEM 2.    Strike the words "board of psychology examiners" and "state board of examiners in psychology" wherever they appear in 645—Chapter 240645—Chapter 241645—Chapter 242 and insert the words "board of psychology" in lieu thereof:

    ITEM 3.    Rescind and reserve subparagraph 240.2(1)"d".

    ITEM 4.    Amend paragraph 240.2(1)"e" as follows:    e.    An applicant shall successfully pass the national examination and Iowa jurisprudence examination.

    ITEM 5.    Rescind and reserve paragraph 240.2(1)"g".

    ITEM 6.    Rescind and reserve subrule 240.3(2).

    ITEM 7.    Amend subrules 240.3(3) and 240.3(4) as follows:    240 240.3 3(3)   As of January 1, 2006, atAt the time of an applicant’s graduation:    a.    The program from which the doctoral degree in psychology is granted must be:    (1)   Accredited by the American Psychological Association; or    (2)   Accredited by the Canadian Psychological Association; or    (3)   Designated by the Association of State and Provincial Psychology Boards (ASPPB)/National Register Designation Project as a doctoral program in psychology; or    b.    The applicant must hold a specialty diploma by examination from the American Board of Professional Psychology.    240 240.3 3(4)   Foreign-trained psychologists shall:    a.    Provide an equivalency evaluation of their educational credentials by one of the following: International Educational Research Foundations, Inc., Credentials Evaluation Service, P.O. Box 3665, Culver City, CA 90231-3665, telephone (310)258-9451, Web site www.ierf.org, or E-mail info@ierf.org; or International Credentialing Associates, Inc., 7245 Bryan Dairy Road, Bryan Dairy Business Park II, Largo, Florida 33777, telephone (727)549-8555. The professional curriculum must be equivalent to that stated in these rules. The candidate shall bear the expense of the curriculum evaluationthe National Register of Health Service Providers in Psychology, 1120 G Street NW, Suite 330, Washington, D.C. 20005, telephone (202)783-7663, Web site www.nationalregister.org, or by an evaluation service with membership in the National Association of Credentials Evaluation Services, Inc., at www.naces.org. A certified translation of documents submitted in a language other than English shall be provided. The candidate shall bear the expense of the curriculum evaluation and translation of application documents. The educational credentials must be equivalent to programs stated in 240.3(3).    b.    Provide a notarized copy of the certificate or diploma awarded to the applicant from a psychology program in the country in which the applicant was educated.    c.    Receive a final determination from the board regarding the application for licensure.Submit evidence of meeting all other requirements for licensure stated in these rules.    d.    Receive a final determination from the board regarding the application for licensure.

    ITEM 8.    Amend rule 645—240.4(154B), as follows:

645—240.4(154B) Examination requirements.  An applicant must pass the national examination and Iowa jurisprudence examination to be eligible for licensure in Iowa.

    ITEM 9.    Rescind and reserve subrule 240.4(5).

    ITEM 10.    Amend subrule 240.5(3) as follows:    240.5(3)   Notwithstanding other provisions of these rules, applicantsApplicants for licensure who are engaged in organized health service training programs as specified in rule 645—240.7(154B) may be designated “psychology intern” or “intern in psychology” during their time in training.shall use one of the titles specified in paragraph 240.7(2)“i.”

    ITEM 11.    Amend paragraph 240.7(1)"b" as follows:    b.    CompeteComplete a board-approved application and submit supporting documentation. Application forms may be obtained from the board’s Web site (http://www.idph.state.ia.us/licensure) or directly from the board office. All applications shall be sent to the Board of Psychology Examiners, Professional Licensure Division, Fifth Floor, Lucas State Office Building, Des Moines, Iowa 50319-0075. An 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. Incomplete applications that have been on file in the board office for more than two years without additional supporting documentation shall be:    (1)   Considered invalid and shall be destroyed; or     (2)   Maintained upon written request of the applicant. The applicant is responsible for requesting that the file be maintained.

    ITEM 12.    Amend subrule 240.10(3) as follows:    240.10(3)   Provides anone of the following: the official copy of the EPPP score sent directly to the board from the Association of State and Provincial Psychology Boards, or verification of the EPPP score sent directly from the state of initial licensure. The passing score is established by the Association of State and Provincial Psychology Boards.

    ITEM 13.    Rescind and reserve subrule 240.10(6).

    ITEM 14.    Rescind and reserve rules 645—240.15(147) to 645—240.17(17A,147,272C).

    ITEM 15.    Amend subrule 240.18(2) as follows:    240.18(2)   Pay the reactivation fee that is due as specified in 645—Chapter 243 645—Chapter 5.

    ITEM 16.    Rescind subrule 241.3(2) and adopt the following new subrule in lieu thereof:    241.3(2) Specific criteria.      a.    For the second license renewal, licensees shall obtain 6 hours of continuing education pertaining to the practice of psychology in either of the following areas: Iowa mental health laws and regulations, or risk management.    b.    For all renewal periods following the second license renewal, licensees shall obtain 6 hours of continuing education pertaining to the practice of psychology in any of the following areas: ethical issues, federal mental health laws and regulations, Iowa mental health laws and regulations, or risk management.    c.    A licensee may obtain the remainder of continuing education hours of credit by:    (1)   Completing training to comply with mandatory reporter training requirements, as specified in 645—subrule 240.12(4). Hours reported for credit shall not exceed the hours required to maintain compliance with required training.    (2)   Attending programs/activities that are sponsored by the American Psychological Association or the Iowa Psychological Association.    (3)   Completing academic coursework that meets the criteria set forth in these rules. Continuing education credit equivalents are as follows:1 academic semester hour = 15 continuing education hours1 academic quarter hour = 10 continuing education hours    (4)   Conducting scholarly research or other activities that integrally relate to the practice of psychology, the results of which are published in a recognized professional publication.    (5)   Preparing new courses that have received approval from the board.    (6)   Completing home study courses for which a certificate of completion is issued.    (7)   Completing electronically transmitted courses for which a certificate of completion is issued.    (8)   Attending workshops, conferences, or symposiums that meet the criteria in rule 645—241.3(154B,272C).    d.    A combined maximum of 20 hours of credit per biennium may be used for scholarly research and preparation of new courses.

    ITEM 17.    Rescind and reserve rules 645—241.4(154B,272C) to 645—241.7(154B,272C).

    ITEM 18.    Amend subrules 242.2(3), 242.2(12) and 242.2(26) as follows:    242 242 242.2 2 2(3)   Professional incompetencyincompetence. Professional incompetencyincompetence includes, but is not limited to:    a.    A substantial lack of knowledge or ability to discharge professional obligations within the scope of practice.    b.    A substantial deviation from the standards of learning or skill ordinarily possessed and applied by other psychologists in the state of Iowa acting in the same or similar circumstances.    c.    A failure to exercise the degree of care which is ordinarily exercised by the average psychologist acting in the same or similar circumstances.    d.    Failure to conform to the minimal standard of acceptable and prevailing practice of a licensed psychologist in this state.    e.    Mental or physical inability reasonably related to and adversely affecting the licensee’s ability to practice in a safe and component manner.    f.    Being adjudged mentally incompetent by a court of competent jurisdiction.    242 242 242.2 2 2(12)   Conviction of a felonycrime related to the profession or occupation of the licensee or the conviction of any felonycrime that would affect the licensee’s ability to practice psychology. A copy of the record of conviction or plea of guilty shall be conclusive evidence.    242 242 242.2 2 2(26)   Failure to report a change of name or address within 30 days after it occurs. Name and address changes may be reported on the form provided by the board at: www.idph.state.ia.us/licensure.

    ITEM 19.    Rescind and reserve 645—Chapter 243.Editor's Note: Pursuant to recommendation of the Administrative Rules Review Committee published in the Iowa Administrative Bulletin, September 10, 1986, the text of these amendments [rescind Chs 239, 243; amend Chs 240 to 242] is being omitted. These amendments are identical to those published under Notice as ARC 6931B, IAB 7/16/08.[Filed 9/5/08, effective 10/29/08][Published 9/24/08][For replacement pages for IAC, see IAC Supplement 9/24/08.]
ARC 7157BProfessional Licensure Division[645]Adopted and Filed

    Pursuant to the authority of Iowa Code section 147.76, the Board of Sign Language Interpreters and Transliterators hereby gives Notice of Intended Action to rescind Chapter 360, “Administrative and Regulatory Authority for the Board of Interpreter for the Hearing Impaired Examiners,” to amend Chapter 361, “Licensure of Sign Language Interpreters and Transliterators,” Chapter 362, “Continuing Education for Interpreter for the Hearing Impaired Practitioners,” and Chapter 363, “Discipline for Interpreter for the Hearing Impaired Practitioners,” and to rescind Chapter 364, “Fees,” Iowa Administrative Code.    These amendments rescind rules that duplicate currently existing rules in 645—Chapters 4 and 5.    Notice of Intended Action was published in the Iowa Administrative Bulletin on June 18, 2008, as ARC 6845B. A public hearing was held on July 8, 2008, from 9 to 9:30 a.m. in the Fifth Floor Board Conference Room, Lucas State Office Building. No public comments were received.    Since publication of the Notice, minor changes have been made to remove all references to “interpreter for the hearing impaired” in Chapters 361 to 363. Additionally, internal references to rules or chapters that are being rescinded by this rule making have been corrected.    The amendments were adopted by the Board of Sign Language Interpreters and Transliterators on August 18, 2008.    These amendments will become effective October 29, 2008.    These amendments are intended to implement Iowa Code chapters 21, 147, 154E and 272C.    The following amendments are adopted.

    ITEM 1.    Rescind and reserve 645—Chapter 360.

    ITEM 2.    Strike the words “interpreter for the hearing impaired” wherever they appear in 645---Chapter 361, 645—Chapter 362645—Chapter 363 and insert the words “sign language interpreters and transliterators” in lieu thereof.

    ITEM 3.    Rescind and reserve rules 645---361.4(147), 645---361.6(147), 645—361.7(147)645—361.8(17A,147,272C).

    ITEM 4.    Amend 645—Chapter 362, as follows:CHAPTER 362 CONTINUING EDUCATION FOR INTERPRETER FOR THE HEARING IMPAIRED PRACTITIONERSSIGN LANGUAGE INTERPRETERS AND TRANSLITERATORS

    ITEM 5.    Rescind and reserve rules 645—362.4(154E,272C), 645---362.5(154E,272C), 645---362.6(272C) and 645—362.7(154E,272C).

    ITEM 6.    Amend 645—Chapter 363, as follows:CHAPTER 363 DISCIPLINE FOR INTERPRETER FOR THE HEARING IMPAIRED PRACTITIONERS SIGN LANGUAGE INTERPRETERS AND TRANSLITERATORS

    ITEM 7.    Amend subrule 363.2(25) as follows:    363.2(25)   Representing oneself as an interpreter or transliterator when one’s license has been suspended or revoked, or when one’s license is on inactive status.

    ITEM 8.    Amend paragraphs 363.2(28)"d"363.2(28)"e" as follows:    d.    Engaging in sexual activities or sexual contact with a consumer when there is a risk of exploitation or potential harm to the consumer or when the relationship could reasonably be expected to interfere with the interpreter’s or transliterator's objectivity, competence, or effectiveness.    e.    Failure to decline or to withdraw from an interpreting or transliterating assignment when the interpreter or transliterator does not possess the professional skills and knowledge required for the specific interpreting or transliterating situation or setting.

    ITEM 9.    Rescind and reserve rule 645—363.5(154E).

    ITEM 10.    Rescind and reserve 645—Chapter 364.    [Filed 8/21/08, effective 10/29/08][Published 9/24/08]Editor's Note: For replacement pages for IAC, see IAC Supplement 9/24/08.
ARC 7162BVeterans Affairs, Iowa Department of[801]Adopted and Filed

    Pursuant to the authority of Iowa Code section 35A.5 and 2008 Iowa Acts, Senate File 2124, the Department of Veterans Affairs hereby amends Chapter 14, “Veterans Trust Fund,” Iowa Administrative Code.    The rules in Chapter 14 are amended to increase the usage of the trust fund, to improve administration of the trust fund, and to implement legislative changes enacted during the 2008 Session of the Iowa General Assembly.    These amendments were Adopted and Filed Emergency and published in the Iowa Administrative Bulletin on July 30, 2008, as ARC 7021B. Notice of Intended Action was published simultaneously as ARC 7022B. A public hearing was held on August 19, 2008, and public comment was received by the Department.    The amendments in Item 3 have been changed since the Notice of Intended Action in response to public comments. In subrule 14.4(1), a specified distance for travel expenses has been added. In subrule 14.4(3), the term “underemployment” has been modified and the entire subrule has been changed to clarify that “unemployment” and “underemployment” must be due to a problem caused while serving in the military. The provisions in subrules 14.4(4), 14.4(5) and 14.4(8) have been revised to include references to a veteran's family members, and a change was made to the emergency medical provisions in subrule 14.4(7). In addition, these amendments rescind Item 3, which was previously Adopted and Filed Emergency, and adopt new language which incorporates the changes described above.    The Iowa Department of Veterans Affairs adopted these amendments on September 3, 2008.    These amendments shall become effective October 29, 2008, at which time the Adopted and Filed Emergency amendments are hereby rescinded.    No fiscal impact is anticipated.    These amendments are intended to implement 2008 Iowa Acts, Senate File 2124.    The following amendments are adopted.

    ITEM 1.    Amend rule 801—14.2(35A) as follows:

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

    ITEM 2.    Amend rule 801—14.3(35A) as follows:

801—14.3(35A) Eligibility.  Veterans, their spouses, and their dependents applying for benefits available under subrules 14.4(1) through 14.4(6)14.4(9) must meet the following threshold requirements.    14.3(1) Income.  For the purposes of this chapter, an applicant’s household income, excluding VA pension benefits and service-connected disability income, shall not exceed 200300 percent of the federal poverty guidelines for the number of family members living in the primary residence in effect on the date the application is received by the county director of veterans affairs. Federal poverty guidelines shall be those guidelines established by the Iowa department of human services for the veteran’s family size. The commission shall adjust the guidelines on July 1 of each year to reflect the most recent federal poverty guidelines.    14.3(2) Resources.  The department may not pay benefits under this chapter if the available liquid assets of the veteran are in excess of $15,000. For the purposes of this chapter, “available liquid assets” means cash on hand, cash in a checking or savings account, stocks, bonds, certificates of deposit, treasury bills, money market funds and other liquid investments owned individually or jointly by the applicant and the applicant’s spouse, unless the applicant and spouse are separated or are in the process of obtaining a divorce, but does not include funds deposited in IRAs, Keogh plans or deferred compensation plans, unless the veteran is eligible to withdraw such funds without incurring a penalty. Cash surrender value of life insurance policies, real property, established burial account, or a personal vehicle shall not be included as available liquid assets.    14.3(3) Funding from other sources.  Applications shall not be approved if the applicant is eligible to receive aid from other sources to meet the purposes authorized in this chapter.    14.3(4) Additional requirements and limitations.  Applicants must meet any additional requirements and are subject to any limitations which may be set out in this chapter or which may be established for a particular benefit.

    ITEM 3.    Rescind rule 801—14.4(35A) and adopt the following new rule in lieu thereof:

801—14.4(35A) Benefits available.  Applications may be approved for any of the following purposes.    14.4(1) Travel expenses for wounded veterans, and their spouses, directly related to follow-up medical care.  Travel expenses under this subrule include the unreimbursed cost of airfare, lodging, and a per diem of $25 per day for required out-of-state medical travel that exceeds 125 miles from the veteran's home. Spouses may be reimbursed for in-state lodging and a per diem of $25 per day when visiting a veteran who is in a hospital for medical care related to a service-connected disability. The distance from the veteran's home to the hospital must exceed 100 miles. The veteran or the veteran's spouse shall provide such evidence as the commission may require, which includes but is not limited to evidence the injury or disability is service-connected, the necessity of treatment in a particular facility, and documentation of expenses. The maximum amount for lodging reimbursement shall be $90. The maximum amount of aid payable in a consecutive 12-month period under this subrule is $1,000.    14.4(2) Job training or college tuition assistance for job retraining.      a.    The commission may pay a veteran not more than $3,000 for retraining or postsecondary education to enable the veteran to obtain gainful employment. The commission may provide aid under this subrule if all of the following apply:    (1)   The veteran is enrolled in a training course in a technical college or school, is enrolled in an accredited postsecondary institution, or is engaged in a structured on-the-job training program.    (2)   The veteran is unemployed, underemployed, or has received a notice of termination of employment.    (3)   The commission determines that the veteran’s proposed program, or current program, will provide retraining or initial training that could enable the veteran to find gainful employment. In making its determination, the commission shall consider whether the proposed program, or current program, provides adequate employment skills and is in an occupation for which favorable employment opportunities are anticipated.    (4)   The veteran requesting aid has not received full reimbursement or payment from any other retraining or education scholarship programs and the veteran does not have other assets or income available to meet retraining or initial training expenses. Applicants requesting aid under this subrule will only be granted the unpaid portion of their tuition statement, and the payment will be made directly to the institution.    b.    The veteran shall provide such evidence as the commission may require to satisfy the requirements of this subrule.    14.4(3) Unemployment or underemployment assistance during a period of unemployment or underemployment due to prolonged physical or mental illness resulting from military service or disability resulting from military service.  The commission may provide subsistence payments only to a veteran who has suffered a loss of income due to prolonged physical or mental illness resulting from military service or disability resulting from military service. The commission may provide subsistence payments of up to $500 per month of unemployment or underemployment to a veteran. No payment may be made under this subrule if the veteran has other assets or income available to meet basic subsistence needs. The veteran shall provide such evidence as the commission may require, which includes but is not limited to evidence that the mental illness or disability is service-connected and evidence that the veteran is unemployed or underemployed for the period of payments. To qualify as underemployed, the applicant must be currently working at an income that is below 200 percent of federal poverty guidelines due to limitations caused by the applicant's service-connected disability or illness. The maximum amount of aid payable in a consecutive 12-month period under this subrule is $3,000 and a lifetime maximum of $6,000.    14.4(4) Expenses related to hearing care, dental care, vision care, or prescription drugs.      a.    The commission may provide health care aid to a veteran, to the veteran's spouse or dependents, or to the unremarried spouse of a deceased veteran for dental care, including dentures; vision care, including eyeglass frames and lenses; hearing care, including hearing aids; and prescription drugs that are not covered by the Veterans Affairs medical center.    b.    The maximum amount that may be paid under this subrule for any consecutive 12-month period may not exceed $2,500 for dental care, $500 for vision care, $1,500 per ear for hearing care, and $1,500 for prescription drugs.    c.    The commission shall not provide health care aid under this subrule unless the aid recipient’s health care provider agrees to accept, as full payment for the health care provided, the amount of the payment; the amount of the recipient’s health insurance or other third-party payments, if any; and the amount that the commission determines the veteran is capable of paying. Payment under this subrule will be provided directly to the health care provider. The commission shall not pay health care aid under this subrule if the available liquid assets of the veteran are in excess of $5,000.    d.    Applicants for assistance under this subrule will be required to provide the commission with an unpaid bill for service or an estimated cost of service from the health care provider and documentation of the need for the service. For prescription drugs, the applicant must produce documentation of the need for the prescribed drug and documentation stating whether a generic drug is available or appropriate. The commission payment will not exceed an estimated cost of service by a health care provider.    14.4(5)  Expenses relating to the purchase of durable equipment or services to allow a veteran, the veteran's spouse or dependents, or the unremarried spouse of a deceased veteran to remain in their home.      a.    The commission may make reimbursement payments to a veteran or to the unremarried spouse of a deceased veteran for the purchase of durable equipment that allows the veteran, the veteran's spouse or dependents, or the unremarried spouse of a deceased veteran to remain in their home or allows them the ability to utilize more of their home.    b.    Individuals requesting reimbursement under this subrule will be required to provide verification of the purchase and installation of the equipment and information relating to the need for the equipment. Individuals may also provide a product and installation cost estimate to the commission for approval, with the understanding that the commission will pay no more than the cost estimate to the supplier or installer. Applicants needing durable equipment as a medical necessity should provide information from a physician.    c.    Assistance under this subrule cannot duplicate assistance from other entities, and the maximum amount that may be paid may not exceed $2,500.    d.    The commission shall not pay a reimbursement under this subrule if the available liquid assets of the veteran are in excess of $5,000.    14.4(6) Individual counseling or family counseling programs.      a.    The commission may make mental health, substance abuse, and family counseling available to veterans and their families. Individual family members are eligible for counseling.    b.    The assistance may include appropriate counseling and treatment programs for veterans and their families in need of services.    c.    Any assistance provided under this subrule shall not duplicate other services readily available to veterans and their families. Veterans who are eligible for VA mental health services must initially visit their nearest VA medical facility for initial consultation and continued psychiatric treatment. Payment under this subrule will be made for additional services for the veteran in a location closer to the veteran's home and at a greater frequency than the VA medical center can accommodate.    d.    The commission may provide up to $150 per hour and $75 per half-hour for outpatient counseling visits to providers who will accept as full payment for the counseling services the amount provided. Counseling and substance abuse services provided in a group setting may be paid up to $40 per hour. Counseling and substance abuse services may also be provided in an inpatient setting, subject to the maximum amount eligible under 14.4(6)“f.”    e.    The maximum amount that may be paid under this subrule for any consecutive 12-month period shall not exceed $5,000. Individuals seeking counseling services are eligible for up to $2,500, individuals seeking substance abuse treatment and counseling combined are eligible for up to $3,500, and families seeking counseling services that may also include individual counseling and substance abuse services are eligible for up to $5,000.    f.    The commission may not provide counseling under this subrule unless the aid recipient’s counseling service provider agrees to accept, as full payment for the counseling services provided, the amount of the payment; the amount of the recipient’s health insurance or other third-party payments, if any; and the amount that the commission determines the veteran is capable of paying. The commission will make payment directly to the entity providing counseling and substance abuse services. The commission shall not pay for counseling under this subrule if the available liquid assets of the veteran are in excess of $5,000.    14.4(7) Expenses relating to ambulance and emergency room services for veterans.      a.    The commission may provide assistance to veterans for expenses related to ambulance trips, including air ambulance transportation, and emergency room visits for emergency care patients or VA health care patients that cannot indicate to emergency personnel that they are to be presented to a VA medical center.    b.    Funding through this subrule shall be paid directly to the entity providing the emergency service or transportation after the commission is provided with an unpaid bill. All efforts should be made to utilize all other methods of payment prior to accessing assistance under this subrule.    c.    The maximum amount that may be paid under this subrule may not exceed $5,000.    14.4(8) Emergency expenses related to vehicle repair, housing repair, or temporary housing assistance.      a.    The commission may provide assistance to a veteran or to the unremarried spouse of a deceased veteran for emergency vehicle repair, emergency housing repair, and temporary housing.    b.    Assistance for vehicle repair is limited to expenses that are required for continued use of the vehicle. This assistance will only be granted in cases where the vehicle is needed for travel to and from work-related activities, the applicant is over the age of 65, or substantial hardship will occur if the vehicle is not repaired. Assistance may be provided in situations where the applicant does not have sufficient means to pay an insurance deductible. Assistance may be paid directly to the entity performing the maintenance or the insurance company owed the deductible. In certain circumstances, reimbursement may be made to the veteran or to the unremarried spouse of a deceased veteran in order for the vehicle to be released from the entity providing the service. Assistance will not be provided for damage caused during the commission of a crime, for cosmetic needs, for damage resulting in an auto accident when automobile insurance has not been purchased, or for routine maintenance.    c.    Assistance for home repair is limited to repairs that are required to improve the conditions and integrity of the home and are necessary for the safety and security of the residents. Applicants with homeowners insurance may request assistance for payment of a deductible. Assistance may be provided for applicants in disaster situations, home accidents, vandalism, or other situations as determined by the commission. In situations where a home is damaged beyond repair, assistance under this subrule is available to assist the applicant in purchasing a new home.    d.    Assistance for transitional housing may be provided to applicants who are displaced from their home during a period of repairs related to a disaster, vandalism, home accident, or other reason that makes staying in the home hazardous to the health of the residents. Any refunded security deposits paid for under this subrule shall be returned to the Iowa veterans trust fund.    e.    The maximum amount that may be paid under this subrule for any consecutive 12-month period may not exceed $2,500 for vehicle repair, $3,000 for housing repair, and $1,000 for transitional housing.    f.    The commission shall not pay a reimbursement under this subrule if the available liquid assets of the veteran are in excess of $3,000.    14.4(9)  Expenses related to establishing whether a minor child is a dependent of a deceased veteran.      a.    The commission may provide assistance to the family of veterans who are killed while serving on active federal service, for expenses related to paternity or maternity tests or the cost of procuring additional DNA samples from the deceased veteran. This assistance is available to determine whether a child is eligible for United States Department of Veterans Affairs war orphan benefits.    b.    Applicants are required to provide the results of the paternity or maternity examinations to the commission upon completion of the tests. Where the deceased veteran is not the parent of the child, the applicant will be required to repay the assistance received as provided in 801—14.6(35A).    c.    The maximum amount that may be paid under this subrule is $2,500.    14.4(10) Family support group programs or programs for children of members of the military.      a.    The commission may award grants to unit family readiness/support groups, family support offices, and other such organizations providing support and programs to families and children of family members.    b.    The grant shall be only for projects or programs which are not funded from any other source. The commission shall determine if the applicant’s proposed project or program will provide the intended support. In making its determination, the commission shall consider whether the proposed program will provide anticipated favorable results.    c.    The maximum amount of aid payable in a consecutive 12-month period under this subrule to a family readiness/support group is $500.    14.4(11) Honor guard services.      a.    The commission may reimburse veterans organizations for providing military funeral honors as follows:    (1)   If a single veterans organization provides basic honors, $25.    (2)   If a single veterans organization provides full honors, $50.    (3)   If two or more veterans organizations participate in providing full honors and one of the organizations provides a firing detail, $50. The organizations may request that the commission split the reimbursement.    (4)   If two or more veterans organizations participate in providing basic honors, $25. Payment shall be to one veterans organization, as determined by the commission.    b.    Notwithstanding paragraph “a,” the commission shall not reimburse a veterans organization if federal funding is available to reimburse the veterans organization for providing military funeral honors. The veterans organization shall request reimbursement from federal sources. If a veterans organization receives federal funding for providing military funeral honors at the reimbursement rate of one funeral per day, the department shall reimburse the organization for the provision of military funeral honors at any additional funerals on that day.    c.    The maximum amount of aid payable in a consecutive 12-month period under this subrule to a veterans organization is $500.    d.    Veterans service organizations that are not currently providing honor guard services may apply for a $500, up-front grant, for the use of creating a new honor guard within their organization. Applicants must present the commission with an estimated cost for purchasing uniforms and firearms for providing military honors and an estimated number of members who will be available to perform honor guard services. Organizations should also provide information regarding how they plan to pay for additional expenses that may occur outside of trust fund assistance. Applicants will be eligible for reimbursements under 14.4(11)“a” to “c” 12 months after the receipt of their original $500 grant.    14.4(12) Matching funds to veterans service organizations to provide for accredited veteran service officers.      a.    The commission may provide matching funds to veterans service organizations for maintaining accredited veteran service officers located at the Des Moines Veterans Affairs Regional Office.    b.    Funding for all service organizations combined is available in an amount of up to 20 percent of the interest and earnings on the trust fund balance during the fiscal year or $150,000, whichever is less.    c.    Service organizations requesting funding from the trust fund must provide financial data on the level of organizational funding for the staffing and operation of an office in the Des Moines Veterans Affairs Regional Office. Of the available amount outlined in this subrule, assistance will be split evenly among the service organizations eligible for the trust fund assistance. If the service organization’s expenditures are less than their share of the grant, the grant amount will be reduced to the amount of their previous fiscal year’s expenditures.    d.    Service organizations will be required to maintain the same level of expenditures in the year they receive funding as in the previous year. Funding will be recaptured by the treasurer of the state of Iowa if this funding is used to supplant funding from an individual veterans service organization. Trust fund assistance will not be included in future fiscal year maintenance of effort requirements. A report on the previous fiscal year’s expenditures will be required to determine the maintenance of effort for the organization.

    ITEM 4.    Amend subrule 14.5(3) as follows:    14.5(3) Eligibility determination.      a.    The county director of veterans affairs or members of the county commission shall make a recommendation to the Iowa commission of veterans affairs as to whether to approve or deny the application. The Iowa commission of veterans affairs or a subcommittee appointed by the chair shall approve or deny all applications. Applications that are denied by the subcommittee will be forwarded to the Iowa commission of veterans affairs and will be processed at its quarterly meetings as set forth in 801—paragraph 1.2(2)“a” or during a conference call for the sole purpose of voting on a trust fund expenditure. Applications must be approved by a majority vote of the commission membership. The director of the Iowa department of veterans affairs shall notify an applicant within 15 days of the commission’s decision. An explanation of the reasons for rejection of an application will accompany denials.    b.    Applications for honor guard reimbursements under subrule 14.4(11) shall be processed solely by the Iowa department of veterans affairs and do not need commission approval for expenditure of trust fund interest balance funds for this purpose.

    ITEM 5.    Amend subrule 14.7(1) as follows:    14.7(1) Final agency action.  The approval or denial of an application by the commission or the department shall be the final decision of the agency.    [Filed 9/3/08, effective 10/29/08][Published 9/24/08]Editor's Note: For replacement pages for IAC, see IAC Supplement 9/24/08.
ARC 7163BVeterans Affairs, Iowa Department of[801]Adopted and Filed

    Pursuant to the authority of Iowa Code section 17A.3(1)“b” and Iowa Code Supplement section 35A.5(12), the Iowa Department of Veterans Affairs hereby amends Chapter 15, “Veterans Commemorative Property,” Iowa Administrative Code.    These amendments implement 2008 Iowa Acts, Senate File 2333, which eliminates the requirement that veterans commemorative property be placed in a cemetery and be at least 75 years old before coming under the jurisdiction of the Iowa Department of Veterans Affairs for a property transaction.    Notice of Intended Action was published in the Iowa Administrative Bulletin on July 30, 2008, as ARC 7002B. A public hearing was held on August 19, 2008. No public comment was received. These amendments are identical to those published under Notice of Intended Action.    The Iowa Department of Veterans Affairs adopted these amendments on September 3, 2008.    These amendments shall become effective October 29, 2008.    No fiscal impact is anticipated.    These amendments are intended to implement 2008 Iowa Acts, Senate File 2333.

    ITEM 1.    Rescind the in rule 801—15.2(37A).

    ITEM 2.    Amend rule 801—15.2(37A), definitions of “Veterans commemorative property” and “Veterans organization,” as follows:        "Veterans commemorative property" means any memorial as defined in Iowa Code section 523I.102, including a headstone, plaque, statue, urn, decoration, flag holder, badge, shield, item of memorabilia, or other embellishment, that meets all of the following criteria:identifies or commemorates any veteran or group of veterans, including any veterans organization or any military unit, company, battalion, or division.
  1. Is over 75 years old;
  2. Identifies or commemorates any veteran or group of veterans, including any veterans organization or any military unit, company, battalion, or division; and
  3. Has been placed in a cemetery.
        "Veterans organization" means the Grand Army of the Republic, Sons of Union Veterans of the Civil War, Sons of Confederate Veterans, Veterans of Foreign Wars, Disabled American Veterans, Paralyzed Veterans of America, Military Order of the Purple Heart, Forty and Eight, Vietnam Veterans of America, United Spanish War Veterans, the Jewish War Veterans of the United States, Inc., the Catholic War Veterans, Inc., American Legion, American Veterans of World War II, Italian American War Veterans of the United States, Inc., or other corporation or association of veterans.

    ITEM 3.    Amend subrule 15.3(1) as follows:    15.3(1) Notification.  Prior to the sale, trade or transfer of veterans commemorative property, a person who owns or controls a cemeteryproperty where veterans commemorative property has been placed shall provide notice to the department and obtain written authorization. Notification to the department shall be submitted for review on forms provided by the department 60 days prior to the proposed transaction date of the veterans commemorative property.

    ITEM 4.    Amend subrule 15.4(6) as follows:    15.4(6) Lending owner approval.  The department may authorize the sale, trade, or transfer of veterans commemorative property if the owner of the property authorizes the transaction and is aware that the cemeteryentity in possession of the property will retain the proceeds of the transaction.

    ITEM 5.    Amend 801—Chapter 15, as follows:       These rules are intended to implement Iowa Code section 37A.1 as amended by 2008 Iowa Acts, Senate File 2333.Editor's Note: Pursuant to recommendation of the Administrative Rules Review Committee published in the Iowa Administrative Bulletin, September 10, 1986, the text of these amendments [15.2, 15.3(1), 15.4(6)] is being omitted. These amendments are identical to those published under Notice as ARC 7002B, IAB 7/30/08.[Filed 9/3/08, effective 10/29/08][Published 9/24/08][For replacement pages for IAC, see IAC Supplement 9/24/08.]
ARC 7164BVeterans Affairs, Iowa Department of[801]Adopted and Filed

    Pursuant to the authority of Iowa Code section 35A.5 and 2008 Iowa Acts, House File 2283, the Department of Veterans Affairs hereby adopts Chapter 16, “Limited Residency Vietnam Conflict Veterans Bonus,” Iowa Administrative Code.    The rules in Chapter 16 are established to create a limited Vietnam veteran bonus for the time period of July 1, 1958, to May 31, 1975, for veterans of that time period who were inducted into the military in Iowa, were denied a previous Iowa Vietnam bonus due to residency, and have not received a similar bonus from another state.    These rules were Adopted and Filed Emergency and published in the Iowa Administrative Bulletin on July 30, 2008, as ARC 7018B. Notice of Intended Action was published simultaneously as ARC 7019B. A public hearing was held on August 19, 2008. No public comment was received. These rules are identical to those published under Notice of Intended Action and Adopted and Filed Emergency.    The Iowa Department of Veterans Affairs adopted these rules on September 3, 2008.    These rules shall become effective October 29, 2008, at which time the Adopted and Filed Emergency rules are hereby rescinded.    No fiscal impact is anticipated.    These rules are intended to implement 2008 Iowa Acts, House File 2283.

    ITEM 1.    Adopt the following new 801—Chapter 16: CHAPTER 16LIMITED RESIDENCY VIETNAM CONFLICT VETERANS BONUS

801—16.1(82GA,HF2283) Bonus for persons serving in the Vietnam service area.      16.1(1) Service requirement.  A person who served on active duty for not less than 120 days in the armed forces of the United States at any time between July 1, 1958, and May 31, 1975, both dates inclusive, and who was inducted into active duty service from the state of Iowa and was honorably discharged or separated from active duty service, or is still in active service in an honorable status, or has been retired, or has been furloughed to a reserve, or has been placed on inactive status is entitled to receive from moneys appropriated for that purpose the sum of $17.50 for each month that the person was on active duty service in the Vietnam service area, within the dates specified in this subrule, if the veteran earned either a Vietnam service medal or an armed forces expeditionary medal-Vietnam or can otherwise establish service in the Vietnam service area during that period.    16.1(2) Limited eligibility requirements.  A person eligible to receive compensation pursuant to 16.1(1) shall be entitled to compensation pursuant to this rule only if all of the following requirements are met:    a.    The person has not received a bonus or compensation similar to that provided in this chapter from this state or another state.    b.    The person was on active duty service after July 1, 1958, and the person did not refuse on conscientious, political, religious, or other grounds, to be subject to military discipline.    c.    The person made application for a bonus or compensation similar to that provided in this chapter from this state and was denied compensation because the person did not meet the applicable residency requirements.    d.    The person files an application for compensation under this chapter in a manner determined by the department of veterans affairs by July 1, 2010.    16.1(3) Compensation.  Compensation for persons who served in the Vietnam service area shall be as follows:    a.    The amount of compensation shall be the sum of $17.50 for each month that the person was on active duty service in the Vietnam service area, within the dates specified in subrule 16.1(1).    b.    In addition, the person shall receive compensation at the sum of $12.50 for each month that the person was on active duty service within the dates specified in subrule 16.1(1) and was not in the Vietnam service area. For example, a person who served six months in the Vietnam service area and six months not in the Vietnam service area will receive compensation for six months at $17.50 per month, which is $105, and six months at $12.50 per month, which is $75, for a total compensation payment of $180.    c.    Compensation under this subrule shall not exceed a total sum of $500. Compensation for a fraction of a month shall not be considered unless the fraction is 16 days or more, in which case the fraction shall be computed as a full month.

801—16.2(82GA,HF2283) Bonus for persons serving outside the Vietnam service area.      16.2(1) Service requirement.  A person serving outside the Vietnam service area is a person otherwise qualified under subrule 16.1(1) except that the person did not earn either a Vietnam service medal or an armed forces expeditionary medal-Vietnam and did not serve in the Vietnam service area during the period between July 1, 1958, and May 31, 1975, both dates inclusive.    16.2(2) Limited eligibility requirements.  A person eligible to receive compensation pursuant to 16.2(1) shall be entitled to compensation pursuant to this rule only if all of the following requirements are met:    a.    The person has not received a bonus or compensation similar to that provided in this chapter from this state or another state.    b.    The person was on active duty service after July 1, 1958, and the person did not refuse on conscientious, political, religious, or other grounds, to be subject to military discipline.    c.    The person made application for a bonus or compensation similar to that provided in this chapter from this state and was denied compensation because the person did not meet the applicable residency requirements.    d.    The person files an application for compensation under this chapter in a manner determined by the department of veterans affairs by July 1, 2010.    16.2(3) Compensation.  Compensation shall be the sum of $12.50 for each month that the person was on active duty service within the dates specified in subrule 16.2(1). Compensation under this subrule shall not exceed a total sum of $300. Compensation for a fraction of a month shall not be considered unless the fraction is 16 days or more, in which case the fraction shall be computed as a full month.

801—16.3(82GA,HF2283) Definition of active duty.  “Active duty” means full-time duty in the armed forces of the United States, excluding active duty for training purposes only and excluding any period a person was assigned by the armed forces to a civilian institution for a course of education or training which was substantially the same as established courses offered to civilians, or as a cadet or midshipman, however enrolled, at one of the service academies.

801—16.4(82GA,HF2283) Survivor compensation.  The surviving unremarried widow or widower, child or children, mother, father, or person standing in loco parentis, in the order named and none other, of any deceased person shall be paid the compensation that the deceased person would be entitled to pursuant to this chapter, if living. However, if any person dies or is disabled from service-connected causes incurred during the period and in the area from which the person is entitled to receive compensation pursuant to this chapter, the person or the first survivor as designated by this rule, and in the order named, shall be paid $500 or $300, whichever maximum amount would have applied pursuant to rule 801—16.1(82GA,HF2283) or 801—16.2(82GA,HF2283), regardless of the length of service.

801—16.5(82GA,HF2283) Penalties.  A person who knowingly makes a false statement relating to a material fact in supporting an application under this chapter is guilty of a serious misdemeanor. A person convicted under 2008 Iowa Acts, Senate File 2283, section 4, shall forfeit all benefits to which the person may have been entitled under this chapter.

801—16.6(82GA,HF2283) Tax exemption.  All payments and allowances made under this chapter shall be exempt from taxation, levy, and sale on execution.

801—16.7(82GA,HF2283) Application procedures and determination of eligibility.      16.7(1) Application procedures.  Application shall be made on forms provided by the Iowa department of veterans affairs. Applications may be obtained from the department at the address listed in subrule 16.7(4) or from the department’s Web site at www.iowava.org. The applicant shall provide the information requested on the application and include any additional documentation required (for example, a copy of the applicant’s DD Form 214). The completed application, including documentation, shall be returned to the department at the address listed in subrule 16.7(4).    16.7(2) Department processing and investigation.  The executive director of the Iowa department of veterans affairs will approve or disapprove the application.    16.7(3) Appeals procedure.  Decisions of the executive director are subject to review by the commission pursuant to 801—Chapter 8. Applicants may appeal the decisions of the commission as provided by Iowa Code section 17A.19.    16.7(4) Office address.  Persons may contact the Iowa Department of Veterans Affairs, Camp Dodge, Bldg. A6A, 7105 NW 70th Avenue, Johnston, Iowa 50131-1824; telephone (515)242-5331 or 1-800-838-4692; fax (515)242-5659. The department’s Web address is www.iowava.org.

801—16.8(82GA,HF 2388) Bonus restrictions and limitations.  All bonuses under the program are subject to funding availability. Bonuses will be awarded in the order in which completed applications are received.       These rules are intended to implement 2008 Iowa Acts, House File 2283.
Editor's Note: Pursuant to recommendation of the Administrative Rules Review Committee published in the Iowa Administrative Bulletin, September 10, 1986, the text of these rules [Ch 16] is being omitted. These rules are identical to those published under Notice as ARC 7019B and Adopted and Filed Emergency as ARC 7018B, IAB 7/30/08.[Filed 9/3/08, effective 10/29/08][Published 9/24/08][For replacement pages for IAC, see IAC Supplement 9/24/08.]
ARC 7172BVeterinary Medicine Board[811]Adopted and Filed

    Pursuant to the authority of Iowa Code section 169.5, the Iowa Board of Veterinary Medicine hereby amends Chapters 1 through 7 and 9 through 14, Iowa Administrative Code.    The amendments set out the discipline standards in Chapter 10. The civil penalties that could be imposed are increased. Additionally, financial responsibility for disciplinary actions may be imposed.    Increases in fees are made in Chapter 6. Application requirements, licensing and the licensing fee structure for veterinarians are revised. The description of the Veterinary Medicine Board organization is revised, and updated definitions are provided in Chapter 1.    Notice of Intended Action was published in the April 23, 2008, Iowa Administrative Bulletin as ARC 6747B. A public hearing was held on May 27, 2008, and written comments were received. An Amended Notice of Intended Action was published in the June 18, 2008, Iowa Administrative Bulletin as ARC 6863B. A public hearing was held on July 9, 2008. No public comments were made, and one written comment was received.    Two clarifications have been made to the amendments published in the Amended Notice of Intended Action.    First, in Item 2, rule 811—1.1(17A,169) has been changed to provide that the Board member who is a licensed technician is considered “credentialed” instead of “licensed.” Rule 811—1.1(17A,169) now reads as follows:    “811—1.1(17A,169) Organization and duties. The board of veterinary medicine shall consist of five members, three of whom shall be licensed veterinarians and two of whom shall not be licensed veterinarians and who shall represent the general public. One public member may be a graduate of an AVMA-accredited school of veterinary technology and be credentialed in Iowa as a veterinary technician. The state veterinarian shall serve as secretary. The board may administer examinations to applicants for a license or temporary permit to practice veterinary medicine and to applicants for licenses or certificates for auxiliary personnel. The board shall investigate and discipline, as necessary, persons for whom credentials have been issued or who are engaged in an activity regulated by the board.”    Second, in Item 62, in rule 811—12.2(169), introductory paragraph, and subrule 12.2(2), the phrase “drug and immunization” was added before the word “products.” The introductory paragraph of rule 811—12.2(169) and subrule 12.2(2) now read as follows:    “811—12.2(169) Extra-label use of veterinary drugs and immunization products. Any extra-label use of veterinary drug and immunization products shall be by or under the order of a licensed veterinarian only and shall be subject to the following criteria:”    “12.2(2) For drugs used in animals not intended for food, there are no marketed drug and immunization products specifically labeled for the conditions diagnosed; or in the veterinarian’s clinical judgment the labeled dosage is inappropriate for the condition or the extra-label use should result in a better outcome for the patient.”    The Board of Veterinary Medicine adopted these amendments on August 28, 2008.    These amendments are intended to implement Iowa Code chapters 169 and 272C.    These amendments shall become effective on October 29, 2008.

    ITEM 1.    Amend 811—Chapter 1, title, as follows:DESCRIPTION OF ORGANIZATION AND DEFINITIONS

    ITEM 2.    Amend rule 811—1.1(17A,169) as follows:

811—1.1(17A,169) Organization and duties.  The board of veterinary medicine shall consist of five members, three of whom shall be licensed veterinarians and two of whom shall not be licensed veterinarians and who shall represent the general public. One public member may be a graduate of an AVMA-accredited school of veterinary technology and be licensed in Iowa as a veterinary technician. The state veterinarian shall serve as secretary. The board shallmay administer examinations to applicants for a license or temporary permit to practice veterinary medicine and to applicants for licenses or certificates for auxiliary personnel.andThe board shall investigate and discipline, as necessary, persons licensed to practice veterinary medicinefor whom credentials have been issued or who are engaged in an activity regulated by the board.

    ITEM 3.    Amend rule 811—1.2(17A,169) as follows:

811—1.2(17A,169) Headquarters of the board.  The official mailing address of the board shall beis: State Veterinarian, Secretary of theIowa Board of Veterinary Medicine, Iowa Department of Agriculture and Land Stewardship, Wallace State Office Building, 502 E. 9th Street, Des Moines, Iowa 50319-0053.

    ITEM 4.    Adopt the following new rule 811—1.4:

811—1.4(17A, 169) Definitions.  As used in these rules, unless the context otherwise requires:         "AAVSB" means the American Association of Veterinary State Boards.        "AVMA" means the American Veterinary Medical Association.        "AVMA-accredited" means colleges in the United States and foreign colleges evaluated by the AVMA Council on Education and found to meet accreditation standards as published.        "AVMA-listed" means a foreign college recognized by the World Health Organization or the government of its own country whose graduates are eligible to practice veterinary medicine in that country and whose graduates may qualify for entrance in the ECFVG certification program.        "Board" means the Iowa board of veterinary medicine.        "Certificate" means a credential issued by the board to practice on an animal as a certified veterinary student pursuant to 811—subrule 6.6(3).        "Certificate holder" means a person issued a certificate by the board.        "Credential" means, as applicable, a certificate, license, or permit issued by the board. “Credential holder” means a person who holds a certificate, license, or permit issued by the board.        "Department" means the Iowa department of agriculture and land stewardship.        "Direct supervision" means that a licensed veterinarian is on the premises and is readily available.        "ECFVG" means the Educational Commission for Foreign Veterinary Graduates.        "License" means a credential issued by the board that permits a person to practice veterinary medicine.        "Licensee" means a person holding a license issued by the board.        "NAVLE" means the North American Veterinary Licensing Examination.        "NBVME" means the National Board of Veterinary Medical Examiners.        "PAVE" means the Program for the Assessment of Veterinary Education Equivalence.        "Permit" means a temporary educational permit or a temporary in–state practice permit issued by the board pursuant to rule 811—9.1(169).        "Permit holder" means a person holding a permit issued by the board.        "RACE" means the Registry of Approved Continuing Education, which is the national clearinghouse for approval of continuing education providers and their programs. All RACE–approved continuing education providers and programs are listed on the American Association of Veterinary State Boards Web site.        "Veterinarian" means a person who has received a doctor of veterinary medicine degree or its equivalent from an AVMA-accredited, -approved or -listed college of veterinary medicine.        "VTNE" means the Veterinary Technician National Examination.

    ITEM 5.    Amend rule 811—2.1(17A) as follows:

811—2.1(17A) Petition for rule making.  In lieu of the words “agency, at (designate office)” insert “Board of Veterinary Medicine at the Iowa Department of Agriculture and Land Stewardship, State Veterinarian, Wallace State Office Building, 502 E. 9th Street, Des Moines, Iowa 50319-0053”. In lieu of the words “(AGENCY NAME)”, the heading on the petition should read:BEFORE THEBOARD OF VETERINARY MEDICINE

    ITEM 6.    Amend rule 811—2.3(17A) as follows:

811—2.3(17A) Inquiries.  Substitute the following information for the parenthetical statement at the end: “the State Veterinarian, Iowa Department of Agriculture and Land Stewardship, Wallace State Office Building, 502 E. 9th Street, Des Moines, Iowa 50319-0053”.

    ITEM 7.    Amend rule 811—3.1(17A,169,272C) as follows:

811—3.1(17A,169,272C) Petition for declaratory order.  In lieu of the words “(designate agency)” the first time the words are used, insert “board of veterinary medicine (hereinafter referred to as “the board”)”. In lieu of the words “(designate agency)” the subsequent times the words are used, insert “board”. In lieu of the words “(designate office)”, insert “State Veterinarian’s Office, Wallace State Office Building, East Ninth and Grand502 E. 9th Street , Des Moines, Iowa 50319-0053.” In lieu of the words “(AGENCY NAME)”, insert “BOARD OF VETERINARY MEDICINE”.

    ITEM 8.    Amend rule 811—3.5(17A,169,272C) as follows:

811—3.5(17A,169,272C) Inquiries.  In lieu of the words “(designate official by full title and address)”, insert “the State Veterinarian, Department of Agriculture and Land Stewardship, Wallace State Office Building, East Ninth and Grand502 E. 9th Street, Des Moines, Iowa 50319-0053”.

    ITEM 9.    Amend subrule 3.6(2) as follows:    3.6(2)   In lieu of the words “(specify office and address)”, insert “the State Veterinarian, Department of Agriculture and Land Stewardship, Wallace State Office Building, East Ninth and Grand502 E. 9th Street, Des Moines, Iowa 50319-0053”. In lieu of the words “(agency name)”, insert “board”.

    ITEM 10.    Amend 811—Chapter 3, implementation sentence, as follows:       These rules are intended to implement Iowa Code chapterchapters 17A,as amended by 1998 Iowa Acts, chapter 1202169, and 272C.

    ITEM 11.    Amend rule 811—4.5(17A,169,272C) as follows:

811—4.5(17A,169,272C) Public participation.      4.5(1)   In lieu of the words “(identify office and address)”, insert “the State Veterinarian, Department of Agriculture and Land Stewardship, Wallace State Office Building, East Ninth and Grand502 E. 9th Street, Des Moines, Iowa 50319-0053”.    4.5(5)   In lieu of the words “(designate office and telephone number)”, insert “the state veterinarian office at (515)281-5305(515)281–8617”.

    ITEM 12.    Amend subrule 4.11(1) as follows:    4.11(1)   In lieu of the words “(specify the office and address)”, insert “the State Veterinarian, Department of Agriculture and Land Stewardship, Wallace State Office Building, East Ninth and Grand502 E. 9th Street, Des Moines, Iowa 50319-0053”.

    ITEM 13.    Amend 811—Chapter 4, implementation sentence, as follows:       These rules are intended to implement Iowa Code chapterchapters 17A,as amended by 1998 Iowa Acts, chapter 1202169, and 272C.

    ITEM 14.    Amend subrule 5.3(1) as follows:    5.3(1) Location of record.  In lieu of the words “(insert agency head)” , insert “state veterinarian as secretary of the board of veterinary medicine”. In lieu of the words “(insert agency name and address)” , insert “Board of Veterinary Medicine, State Veterinarian, Department of Agriculture and Land Stewardship, Wallace State Office Building, 502 E. 9th Street, Des Moines, Iowa 50319-0053”.

    ITEM 15.    Amend paragraph 5.9(2)"e" as follows:    e.    To the legislative services agency under Iowa Code section 2A.3.

    ITEM 16.    Amend subrules 5.14(3)5.14(4) as follows:    5 5.14 14(3) Contested case matters.  These records are collected and maintained pursuant to Iowa Code sections 17A.3(1)“d,” 17A.3(2), and 17A.12, and the Iowa Code sections noted in subrule 5.14(4). Contested case matters include all pleadings, motions, briefs, orders, transcripts, exhibits, and physical evidence utilized in the resolution of the matter, and may, unless released by the licenseecredential holder, be confidential as stated in subrule 5.14(4). These records are primarily maintained in paper copy, with some material generated or maintained in a data processing system.    5 5.14 14(4) Licensure or certificationCredential records.  Under Iowa Code chapter 169, the board regulates by license the profession of veterinary medicineveterinarians and regulates by certificate veterinary technicians,and assistants and veterinary students, and regulates by temporary permit veterinarians credentialed under Iowa Code section 169.11 and rule 811—9.1(169), Iowa Administrative Code. Licensure and certificationCredentials records generally include, but are not limited to, information identifying the licenseecredential holder by name or code, location, and form of business entity, including the names of corporate principals. Examination and compliance reports may be included in the license records.These records may include examinations, complaints, compliance activities and investigatory reports that are confidential. These records may include confidential information protected from disclosure under Iowa Code section 22.7(3), 22.7(6), or 22.7(18). In addition, information relating to examination results is confidential under Iowa Code section 169.6, and information regarding complaints and investigations of licensees is confidential under Iowa Code section 272C.6sections 22.7, 169.6 and 272.6. These records are maintained jointly with the department of agriculture and land stewardship. These records are primarily maintained in paper copy, with some material generated or maintained in a data processing system.

    ITEM 17.    Amend rule 811—5.17(169,252J) as follows:

811—5.17(169,252J) Release of confidential licensing information for child support recovery purposes.  Notwithstanding any statutory confidentiality provision, the board may share information with the child support recovery unit through manual or automated means for the sole purpose of identifying licensees of applicants or credential holders subject to enforcement under Iowa Code Supplement chapter 252J or 598.

    ITEM 18.    Amend 811—Chapter 5, implementation sentence, as follows:       These rules are intended to implement Iowa Code chapters 17A,and 22, 169 and Iowa Code Supplement chapter 252J.

    ITEM 19.    Amend 811—Chapter 6, title, as follows:APPLICATION FOR VETERINARY LICENSURE

    ITEM 20.    Amend subrules 6.1(1)6.1(2)6.1(3) as follows:    6 6 6.1 1 1(1)   Application to take examination. Any person desiring to take the National Board Examination (NBE) or the Clinical Competency Test (CCT)NAVLE in Iowa for a license to practice veterinary medicine shall make application 60 days before the date set for the beginning of the examinationto the board in accordance with the guidelines and time lines established by the NBVME. The applicant shall submit to the board proof of completing the application process with NBVME along with the administrative fee by sending the proof and fee to: Bureau of Animal Industry,Iowa Board of Veterinary Medicine,Iowa Department of Agriculture and Land Stewardship,Wallace State Office Building,East 9th and Grand Avenue,502 E. 9th StreetDes Moines, Iowa 50319,-0053Proof of NAVLE application shall be submitted to the board in accordance with the guidelines and time lines established by the NBVME on forms to be provided by the board. The application form shall be notarized and completely filled out. The completed applicationform shall include twoone current passport size and quality photographsphotographof the applicant. Incomplete applications shall be returned to the applicant along with the tendered fee and a written statement setting forth the reasons for such rejections.The applicationform shall be accompanied by satisfactory evidence of the applicant's having graduated from an AVMA- accredited or approved school of veterinary medicine or satisfactory evidence that the applicant is expected to graduate within six months of the date of the examination. However, applications for either the NBE or CCT may be accepted without evidence of graduation if the applicant provides satisfactory evidence that the applicant is expected to graduate within six months of the date of the examination.Applications to take the NBE or CCTNAVLE will not be accepted from any person who has previously taken and passed that examination in any jurisdiction, except on case-by-case petition to the board for good cause shown or other order of the board.    6 6 6.1 1 1(2)   License requirements. Prior to the board's issuance of a license, the applicant shall:    a.    Successfully complete the NBE and CCTNAVLE as provided in rule 811—7.1(169);    b.    Remit the proper application fee for licensure;    c.    Graduate from an:    (1)   An AVMA- accredited or approved school of veterinary medicine,; or    (2)   An AVMA=listed school of veterinary medicine and have receivedor receive a certificate from the Educational Commission for Foreign Veterinary Graduates (ECFVG)either ECFVG or PAVE ;    d.    Provide a statement indicating all jurisdictions in which the applicant is or has ever been licensed to practice veterinary medicine. The applicant shall provide information and shall consent to release to the board license information from jurisdictions in which the applicant is or has ever been licensed;    e.    The board may require from an applicant or obtain from other sources such other informationProvide information or consent to the release of information pertinent to the character and education of the applicant as itthe board may deem necessary in order to pass uponevaluate the applicant’s qualifications; and    f.    Submit evidence of having completed at least an average of 2060 hours of approved continuing education for each year of the previous three yearswithin the last three licensing years. New graduates and applicants within one year after the date of graduation are exempt from continuing education requirements for initial licensing. Applicants who apply more than one year but less than two years after the date of graduation must complete at least 20 hours of approved continuing education. Applicants who apply more than two years but less than three years after the date of graduation must have completed at least 40 hours of approved continuing education. As used in this paragraph, “date of graduation” also includes the date of PAVE or ECFVG certification.Upon payment of the prorated triennial license fee, aA license issued during a triennium, upon the applicant's completion of these requirements is valid through June 30 of the next triennium yearand payment of the prorated triennial license fee, shall be issued for the balance of the triennium. A license shall expire on June 30 of the third year if the triennium.    6 6 6.1 1 1(3)   An accredited or approved college of veterinary medicine is a school which has satisfied the “Essential Requirements of an Accredited or Approved College of Veterinary Medicine” as revised and adopted by the American Veterinary Medical Association (AVMA), July 1987, which is hereby adopted by reference. An evaluation by the AVMA Council on Education finding that these criteria are satisfied will be automatically accepted absent sufficient evidence to the contrary.

    ITEM 21.    Amend rule 811—6.2(169) as follows:

811—6.2(169) Fee schedule for veterinarians.  The following fees shall be collected by the board and shall not be refunded except by board action in unusual instances such as documented illness of the applicant, death of the applicant, inability of the applicant to comply with the rules of the board, or withdrawal of application provided withdrawal is received in writing 45 days prior to the examination date. Examination fees shall be nontransferrable from one examination to another.The fee for the National Board Examination (NBE) or Clinical Competency Test (CCT)NAVLE, which is utilized by the board as a part of their examinationthe licensure process, shall be the feesfee charged that year by the Professional Examination Service (PES) and approved by the boardNBVME, plus the costs incurred byan administrative fee payable to the board for administration of the NBE or CCT examination.Based on the board’s anticipated financial requirements, the following fees are hereby adopted:    License—application fee$50 National Board Examination (NBE) cost of PES examination plus$10 Clinical Competency Test (CCT) cost of PES examination plus$10    NBVME examination feeset by NAVLE    Board administrative fee for NAVLE$25    State veterinary examination feeset by board    State veterinary administration feeset by board    Triennial license$45    Late renewal penalty$100    License by endorsement—application fee$2550    Reactivation fee for lapsed or in active license$100 Late renewal penalty$100    Reinstatement fee$45    Duplicate license$15    Temporary permit$25    Temporary permit application fee$15    Certification ofOfficial licensure verification$10    Charge for insufficient funds or returned checks$10    Senior student certificate$0       This rule is intended to implement Iowa Code section 169.5.

    ITEM 22.    Amend rule 811—6.3(169) as follows:

811—6.3(169) ReinstatementReactivation fee.  All applications for reinstatementreactivation of a lapsed or inactive license to practice veterinary medicine shall be filed with the secretary of the board, together with the then current license fee, the current reinstatementreactivation fee, and all, if lapsed, applicable penalties for a lapsed or inactive license.

    ITEM 23.    Amend rule 811—6.4(169) as follows:

811—6.4(169) Graduates of foreign schools.  Graduates of foreign veterinary schools may become eligible for examination and licensure by either of the following methods:    6.4(1)   Examination eligibility through ECFVG. Graduates of foreign veterinary schools which, pursuant to the AVMA criteria, are not AVMA-approvedaccredited but are AVMA-listed may make application to take the NBE or the CCTNAVLE in this state provided that suchthe application includeincludes a copy of the applicant’s diploma or certificate indicating the award of a degree in veterinary medicine from an AVMA-listed college, and a letter from the Educational Commission for Foreign Veterinary Graduates (ECFVG)ECFVG verifying that the applicant is or will be participating in an ECFVG certification program administered by an institution in Iowa or a state contiguous to Iowa.    6.4(2)   Licensure eligibility through ECFVG. Graduates of foreign schools which are not AVMA-approvedaccredited but are AVMA-listed will not be considered for licensing until they have received the certificate granted by the Educational Commission for Foreign Veterinary GraduatesECFVG. A license will not be issued to an applicant until the applicant submits a copy of the applicant’s ECFVG certificate.    6.4(3)   Examination eligibility through PAVE. Graduates of foreign veterinary schools may make application to take the NAVLE in this state provided that the application includes a certified copy of the applicant’s diploma or certificate indicating the award of a degree in veterinary medicine from a foreign veterinary school and a letter from the AAVSB on behalf of PAVE verifying that the applicant is participating in the PAVE certification program administered by the AAVSB, and has met the requirements for taking the NAVLE.    6.4(4)   Licensure eligibility through PAVE. Graduates of foreign veterinary schools will not be considered for licensing until they have received the certificate granted by PAVE. A license will not be issued to an applicant until the applicant submits a copy of the applicant’s PAVE certificate.

    ITEM 24.    Amend rule 811—6.5(169) as follows:

811—6.5(169) License by endorsement.      6.5(1)   A license by endorsement may be granted by the board pursuant to either Iowa Code section 169.10(1) or 169.10(2). An applicant shall make application for a license by endorsement on a form provided by the board. The application fee and triennial license fee shall accompany the application. In addition to the information specified in Iowa Code section 169.10, the applicant shall supply all of the following:    a.    A statement indicating all jurisdictions in which the licensee is or has ever been licensed to practice veterinary medicine. The applicant shall provide information and consent to the release of information to the board license information from jurisdictions in which the applicant is or has ever been licensed.    b.    The board may require from the applicant or obtain from other sources such other informationInformation pertinent to the character and education of the applicant as itthe board may deem necessary in order to pass uponevaluate the applicant’s qualifications.    c.    Evidence of approved continuing education totaling at least 60 hours obtained in the previous three yearswithin the last three licensing years. New graduates and applicants within one year after graduation are exempt from continuing education requirements for initial licensing. Applicants who apply more than one year but less than two years after the date of graduation must complete at least 20 hours of approved continuing education. Applicants who apply more than two years but less than three years after the date of graduation must have completed at least 40 hours of approved continuing education. As used in this paragraph, “date of graduation” also includes the date of PAVE or ECFVG certification. Foreign graduates licensed by PAVE or ECFVG certification are exempt from the continuing education requirement for one year from the date of certification by PAVE or ECFVG.    6.5(2)   If the non-Iowa license of an applicant under Iowa Code section 169.10(1) was issued after January 1, 1965, the applicant shall have successfully completed the NBE. If the applicant’s non-Iowa license was issued after January 1, 1980, the applicant shall have successfully completed the NBE and CCT according to rule 811—7.1(169).For an applicant with a non–Iowa license seeking licensure under Iowa Code section 169.10(1), the following shall apply:    a.     If the applicant’s non–Iowa license was issued between December 31, 1964, and December 31, 1979, the applicant shall have successfully completed the National Board Examination (NBE).    b.     If the applicant’s non–Iowa license was issued between January 1, 1980, and December 31, 2000, the applicant shall have successfully completed the National Board Examination (NBE) and the Clinical Competency Test (CCT).    c.     If the applicant’s non–Iowa license was issued on or after January 1, 2001, the applicant shall have successfully completed the NAVLE in accordance with rule 811—7.1(169).    6.5(3)   An applicant who is a diplomate under Iowa Code section 169.10(2) shall also include a copy of the applicant’s board or college specialty certificate. For the purpose of this rule, a specialty board or college means a specialty board or college which has been officially recognized by the AVMA. Changes of specialty status shall be reported to the board within 30 days of the action.

    ITEM 25.    Amend rule 811—6.6(169) as follows:

811—6.6(169) Issuance of limited license; specialization.      6.6(1)   The board may grant a license to practice veterinary medicine within a limited and specified scope:    a.    As an option for board discipline under 811—Chapter 10.    b.    Rescinded IAB 11/18/98, effective 12/23/98.To a qualified member of the faculty of the Iowa State University College of Veterinary Medicine.    c.    To an applicant requesting limited or specialized status.    6.6(2)   A licensed veterinarian holding either a limited license or a full license shall not claim or imply specialization unless the veterinarian is a memberdiplomate in good standing of the respective specialty board or college recognized by the AVMA.    6.6(3)   Veterinary student certificate. The board may issue a veterinary student certificate to a senior veterinary student who is attending an AVMA–accredited college of veterinary medicine, upon endorsement by the college that the student is competent to perform veterinary duties. The certificate issued by the board shall limit the student to performing duties under the direction of an instructor of veterinary medicine or under the direct supervision of a licensed veterinarian. Veterinary student certificate holders are prohibited from administering rabies vaccine to dogs as described in Iowa Code section 351.35 and signing a certificate of veterinary inspection as described in Iowa Code section 163.12.    6.6(4)   Limited licensure for faculty. Faculty, not including residents or interns, at Iowa State University College of Veterinary Medicine may be issued a limited license to practice veterinary medicine. The applicant for a limited license for faculty shall have graduated from an AVMA–accredited or AVMA–listed school of veterinary medicine or have received a PAVE or ECFVG certificate and shall submit a completed application and the required fees. Holders of limited licenses for faculty are limited to duties performed on the college premises during periods of employment at the college.

    ITEM 26.    Amend subrules 6.7(1)6.7(5) as follows:    6 6.7 7(1)   A license to practice veterinary medicine shall be issued for a three-year period, except that new licenses issued during a triennium shall be issued for the balance of that triennium, except that new certificates issued during a triennium shall be issued for the balance of the triennium and the certificate fee shall be prorated. A license shall expire on June 30 of the third year of the triennium.    6 6.7 7(5)   If the renewal and penalty fees arefee has not been received by the board on or by August 1 afterbefore the license has lapsed, an application for reinstatementrenewal must be filed with the board with a reinstatementrenewal fee in addition to the renewalreactivation fee and the late renewal penalty fee.

    ITEM 27.    Adopt the following new rule 811—6.9:

811—6.9(169) Renewal, lapsed or inactive license.   A veterinarian whose license has lapsed may renew an expired license within five years of the date of its expiration by making written application for renewal and paying the current renewal fee plus all delinquent renewal fees. After five years have elapsed since the date of expiration, a license may not be renewed, and the veterinarian must make application for a new license and take the license examination. A veterinarian whose license has lapsed or has been placed on inactive status shall, prior to receiving active status licensure in the practice of veterinary medicine in the state of Iowa, satisfy the requirements in either subrule 6.9(1) or subrule 6.9(2) for renewal of a lapsed or inactive license:    6.9(1)   Renewal of a lapsed or inactive license. An applicant for renewal of a lapsed or inactive license shall do both of the following:    a.    Submit written application for renewal of a lapsed or inactive license to the board upon forms provided by the board;    b.    Furnish evidence of compliance with continuing education requirements specified in rule 811— 11.3(169).    6.9(2)   Renewal by endorsement. An applicant for renewal by endorsement may submit an application for renewal by endorsement by following the procedures set out in rule 811—6.5(169).

    ITEM 28.    Amend 811—Chapter 6, implementation sentence, as follows:       These rules are intended to implement Iowa Code sections 17A.3, 169.5, 169.8, 169.9, 169.10, and 169.12chapters 17A, 169, and 261.

    ITEM 29.    Amend 811—Chapter 7, title, as follows:VETERINARY EXAMINATIONS

    ITEM 30.    Amend rule 811—7.1(169) as follows:

811—7.1(169) Examination procedure.  In order to successfully complete the National Board Examination, an applicant shall achieve a minimum converted score of 70. In addition, in order to successfully complete the CCT, the applicant shall obtain a minimum converted score of 75. The National Board Examination and the CCT are prepared by the Professional Examination Service for use by the state board of veterinary examiners.In order to successfully complete the NAVLE, an applicant shall achieve the minimum passing score as determined by the NBVME. The NAVLE is prepared by the NBVME for use by the board.    7.1(1)   Examinations shall be given in April and December each year. The dates for the examination shall be those set by the National Board Examination CommitteeNBVME. Examinations shall be held at a site to be determined by the board at least 30 days before the date of the examinationNBVME.    7.1(2)   Upon request, the boardNBVME will attempt to provide adequate individualized testing arrangements for applicants who establish the existence of a verified disability, including a verified learning disability, consistent with the provisions of the Americans with Disabilities Act of 1990, and regulations promulgated thereunder. Verification may be provided by a testing or evaluation agency approved by the boardNBVME or by a physician approved by the boardNBVME.

    ITEM 31.    Amend 811—Chapter 7, implementation sentence, as follows:       These rules are intended to implement Iowa Code sections 17A.3, 169.5, and 169.9chapters 17A and 169.

    ITEM 32.    Amend 811—Chapter 9, title, as follows:TEMPORARY VETERINARY PERMITS

    ITEM 33.    Amend rule 811—9.1(169) as follows:

811—9.1(169) Eligibility for a temporary permit.      9.1(1) Pending state board examinationTemporary educational permit.  Rescinded IAB 11/18/98, effective 12/23/98For the purpose of this subrule, “qualified applicant” means a person who is undertaking internship or residency training at Iowa State University College of Veterinary Medicine. A temporary educational permit may be issued upon application to a qualified applicant who does not also seek an Iowa veterinary license. A temporary educational permit allows the permit holder to act as a licensed veterinarian, including for privately owned animals, but only within the scope of the permit holder’s internship or residency program at Iowa State University College of Veterinary Medicine. Verification of internship or residency shall consist of an endorsement signed by the dean of the school and submitted directly to the board by the school. A temporary educational permit expires upon termination of the permit holder’s internship or residency program, as reported by the dean of the school of veterinary medicine. An initial temporary educational permit may be issued by the board for a term of up to two years. An initial temporary educational permit may be renewed by the board for a term of up to one year. No more than two renewals will be granted to the same person..    9.1(2) Temporary in-state practice permit.      a.    A temporary in-state practice permit may be issued upon application to a qualified applicant who does not also seek a fullan Iowa license. For the purpose of this subrule, “qualified applicant” means a person who:    a.    (1)   Has graduated from an AVMA-accredited or approvedAVMA-listed school of veterinary medicine or has received an ECFVG or PAVE certificate.    b.    Rescinded IAB 11/18/98, effective 12/23/98.    c.    (2)   Is licensed in good standing in another jurisdiction.    d.    (3)   If the applicant’s non-Iowa license was issued after January 1, 1965, the applicant shall have successfully completed the NBE. If the applicant’s non-Iowa license was issued after January 1, 1980, the applicant shall have successfully completed the NBE and CCT.For an applicant with a non-Iowa license seeking licensure under Iowa Code section 169.10(1), the applicant:
  1. Has successfully completed the National Board Examination (NBE) if the applicant’s non–Iowa license was issued between December 31, 1964, and December 31, 1979.
  2. Has successfully completed the National Board Examination (NBE) and the Clinical Competency Test (CCT) if the applicant’s non–Iowa license was issued between January 1, 1980, and December 31, 2000.
  3. Has successfully completed the NAVLE in accordance with rule 811—7.1(169) if the applicant’s non–Iowa license was issued on or after January 1, 2001.
    b.    The temporary permit shall be issued for a period of no more than 180 days, and no more than one permit shall be issued to a person during each calendar year. The temporary in-state practice permit allows the permit holder to act as a licensed veterinarian in this state. A person may not obtain more than three temporary permits.

    ITEM 34.    Amend subrule 9.2(1) as follows:    9.2(1)   An application for a temporary permit shall be made on formsa form provided by the board. The application shall state whether the applicant is applying for a temporary educational permit or a temporary in-state practice permit. The applicant shall provide a statement indicating all jurisdictions in which the licensee is or has ever been licensed to practice veterinary medicine. The applicant shall provide information and consent to the release of information to the board license information from jurisdictions in which the applicant is or has ever been licensed.

    ITEM 35.    Rescind and reserve rule 811—9.3(169).

    ITEM 36.    Amend rule 811—9.4(169) as follows:

811—9.4(169) Practice without benefit of temporary permit or full Iowa license.  An applicant for a temporary permit or a fullan Iowa license shall not engage in the practice of veterinary medicine unless and until a temporary permit or full Iowa license is granted by the board. Prior to the issuance of the temporary permit or full Iowa license, an applicant who is otherwise qualified under rule 9.1(169) may perform within the same scope of authority as a registeredlicensed veterinary technician, as provided in 811—Chapter 8. An applicant for a temporary permit or full Iowa license who engages in the practice of veterinary medicine prior to the issuance of the temporary permit or full Iowa license is subject to denial or revocation of the temporary permit, denial or revocation of the full Iowa license, and referral for civil or criminal prosecution, at the board’s discretion.

    ITEM 37.    Adopt the following new rule 811—9.5:

811—9.5(169) Grounds for discipline and disciplinary procedures.  A disciplinary action against a permit holder, including grounds for disciplinary action, is governed by 811—Chapter 10. In addition to the applicable grounds set forth in 811—Chapter 10, an applicant for a temporary permit or an Iowa license who engages in the practice of veterinary medicine prior to the issuance of the temporary permit or Iowa license is subject to denial or revocation of the temporary permit, denial or revocation of the Iowa license, and referral for civil or criminal prosecution, at the board’s discretion.

    ITEM 38.    Amend 811—Chapter 9, implementation sentence, as follows:       These rules are intended to implement Iowa Code section 169.11chapter 169.

    ITEM 39.    Amend rule 811—10.1(17A,169,272C) as follows:

811—10.1(17A,169,272C) Board authority.  The board of veterinary medicine (hereinafter referred to as “the board”) may discipline a veterinariana credential holder for any grounds stated in Iowa Code chapters 169 and 272C or rules promulgated thereunder.

    ITEM 40.    Amend rule 811—10.2(17A,169,272C) as follows:

811—10.2(17A,169,272C) Complaints and investigations.  Complaints are allegations of wrongful acts or omissions relating to the ethical or professional conduct of a licenseecredential holder.    10.2(1)   In accordance with Iowa Code section 272C.3(1)“c,” the board shall investigate or review, upon written complaint or upon its own motion pursuant to other information received by the board, alleged acts or omissions which the board reasonably believes constitute cause for licenseecredential holder discipline.    10.2(2)   The executive secretary or authorized designee shall investigate complaints in order to determine the probability that a violation of law or rule has occurred.

    ITEM 41.    Amend rule 811—10.3(17A,169,272C) as follows:

811—10.3(17A,169,272C) Investigatory subpoena powers.  The board shall have the authority to issue an investigatory subpoena in accordance with the provisions of Iowa Code section 17A.13.    10.3(1)   A subpoena which requires production of real evidence that is necessary to an investigation may be issued upon the authority of the executive secretary or a designee.    10.3(2)   Any person who is aggrieved or adversely affected by compliance with the subpoena and who desires to challenge the subpoena must, within 14 days after the service of the subpoena or before the time specified for compliance if such time is less than 14 days, file with the board a motion to quash or modify the subpoena. The motion shall describe the legal reasons why the subpoena should be quashed or modified and may be accompanied by legal briefs or factual affidavits.    10.(2) 10.3(3)   In the event obedience to a subpoena is refused, the requesting party may petition the district court for enforcement.

    ITEM 42.    Amend subrule 10.5(1) as follows:    10.5(1)   The committee shall determine if the conduct of the licenseecredential holder conforms to minimum standards of acceptable and prevailing practice of veterinary medicine or other applicable standards and submit a report of its findings to the board.

    ITEM 43.    Amend rule 811—10.6(17A,169,272C) as follows:

811—10.6(17A,169,272C) Grounds for discipline.  Without regard as to whether the board has determined that an injury has occurred,Thethe board may impose any of the disciplinary sanctions set forth in rule 10.7(17A, 169, 272C), including civil penalties in an amount not to exceed $1000$10,000, when the board determines that the licenseecredential holder is guilty of any of the following acts or offenses:    10.6(1) Grounds applicable to all credential holders.      a.    Fraud in procuring a licensecredential, which includes but is not limited to an intentional perversion of the truth in making application for a licensecredential to practice veterinary medicineany of the professions or activities regulated by the board in this state, and includes false representations of a material fact, whether by word or by conduct, by false or misleading allegations, or by concealment of that which should have been disclosed when making application for a licensecredential in this state, or attempting to file or filing with the board or the Iowa department of agriculture and land stewardship any false or forged diploma, certificate, affidavit, identification, or qualification in making an application for a license in this state.    b.    Credential holder professionalProfessional incompetency, which includes but is not limited to violations of the standards of practice as set out in 811—Chapter 12. Professional incompetency of a credential holder may also be established by:    a.    (1)   A substantial lack of knowledge or ability to discharge professional obligations within the scope of the veterinarian’scredential holder's practice;    b.    (2)   A substantial deviation by the veterinariancredential holder from the standards of learning or skill ordinarily possessed and applied by other veterinarianscredential holders acting in the same or similar circumstances;c.    A failure by a veterinarian to exercise in a substantial respect that degree of care which is ordinarily exercised by the average veterinarian acting in the same or similar circumstances;    d.    (3)   A willful or repeated departure from or the failure to conform to the minimal standards of acceptable and prevailing practice of veterinarianscredential holders.    (4)   Knowingly making misleading, deceptive, untrue or fraudulent representations in the practice of athe profession or engaging in unethical conduct or practice harmful or detrimental to the public. Proof of actual injury need not be established.
  1. a.    Knowingly making misleading, deceptive, untrue or fraudulent representations in the practice of athe profession includes, but is not limited to, an intentional perversion of the truth, either orally or in writing, by a veterinarian in the practice of veterinary medicine and includes any representation contrary to legal or equitable duty, trust or confidence and is deemed by the board to be contrary to good conscience, prejudicial to the public welfare or may operate to the injury of another.b.    Engaging in unethical conduct includes, but is not limited to, a violation of the standards of practice as set out in 811—Chapter 12, and may include acts or offenses in violation of the code of ethics of the American Veterinary Medical Association (AVMA).
  2. c.    Practice harmful or detrimental to the public includes, but is not limited to, the failure of a veterinariancredential holder to possess and exercise that degree of skill, learning and care expected of a reasonable, prudent veterinariancredential holder acting in the same or similar circumstances, including for a veterinarian a violation of the standards of practice as set out in 811—Chapter 12, or when a veterinariancredential holder is unable to practice veterinary medicine with reasonable skill and safety toon a client’s animals as a result of a mental or physical impairment or chemical abuse.
d.    Practice harmful or detrimental to the public includes, but is not limited to, the use of a rubber stamp to affix a signature to a prescription. A person who is unable, due to a physical handicap, to make a written signature or mark may substitute in lieu of a signature a rubber stamp which is adopted by the handicapped person for all purposes requiring a signature and which is affixed by the handicapped person or affixed by another person upon the request of the handicapped person and in their presence.e.    Practice harmful or detrimental to the public includes, but is not limited to, the practice of maintaining any presigned prescription which is intended to be completed and issued at a later time.    (5)   Habitual intoxication or addiction to the use of drugs, which includes, but is not limited to, the inability of a veterinariancredential holder to practice veterinary medicine with reasonable skill and safety by reason of the excessive use of alcohol, drugs, narcotics, chemicals or other types of material on a continuing basis, or the excessive use of alcohol, drugs, narcotics, chemicals or other typetypes of material which may impair a veterinarian’scredential holder's ability to practice the profession with reasonable skill and safety. The board may require participation ina credential holder's completion of a treatment program as a condition of license probation or suspension, and shall consider the licensee’scredential holder's willingness to participate incomplete a treatment program when determining the appropriate degree of disciplinary sanction.    (6)   Conviction of a felony which is either of the following:
  1. One that is related to the credential holder's profession or occupation of the licensee,; or the conviction of any felony that would
  2. One that would affect the licensee’scredential holder's ability to practice within athe profession.
A copy of the record of conviction or plea of guilty shall be conclusive evidence.Conviction of a felony related to the profession or occupation of the licenseecredential holder or the conviction of any felony that would affect the licensee’scredential holder's ability to practice within athe profession includes, but is not limited to, the conviction of a veterinarian who has committed a public offense in the practice of theirthe credential holder's profession which is defined or classified as a felony under state or federal law, or who has violatedviolation of a statute or law designated as a felony in this state, another state, or the United States, which statute or law relates to the practice of veterinary medicinecredential holder's profession or who has been convictedconviction of a felonious act, which is so contrary to honesty, justice or good morals, and so reprehensible as to violate the public confidence and trust imposed upon a veterinariancredential holder in this state. A copy of the record of conviction or plea of guilty shall be conclusive evidence.
    (7)   Fraud in representations as to skill or ability, which includes but is not limited to a veterinarian’scredential holder's having made misleading, deceptive or untrue representations as to the veterinarian’scredential holder'scompetency to perform professional services for which the veterinariancredential holder is not qualified to perform by training or experience.    (8)   Use of untruthful or improbable statements in advertisements, which includes but is not limited to an action by a veterinariancredential holder in making information or intention known to the public which is false, deceptive, misleading or promoted through fraud or misrepresentation and includes statements which may consist of, but not be limited to:
  1. Inflated or unjustified expectations of favorable results;
  2. Self-laudatory claims that imply that the veterinariancredential holder engaged in a field or specialty of practice for which the veterinariancredential holder is not qualified. A veterinarian is not qualified to claim or imply specialization unless the veterinarian is a member in good standing of the respective specialty board or college recognized by the AVMA;
  3. Representations that are likely to cause the average person to misunderstand; or
  4. Extravagant claims or claims of extraordinary skills not recognized by the veterinarycredential holder's profession.
    (9)   Willful or repeated violations of the provisions of Iowa Code chapters 169 and 272C and rules promulgated thereunder by the board.    (10)   Violating a statute or law of this state, another state, or the United States, without regard to its designation as either felony or misdemeanor, which statute or law relates to the practice of veterinary medicine.    (11)   Failure to report a license, certificate, permit, or other credential revocation, suspension or other disciplinary action taken by a licensing or regulating authority of another state, territory or country within 30 days of the final action by such licensing or regulating authority. A stay by an appellate court shall not negate this requirement; however, if such disciplinary action is overturned or reversed by a court of last resort, such report shall be expunged from the records of the board.    (12)   Failure of licenseea credential holder or an applicant for licensurea credential in this state to report anywithin 30 days, any of the following:
  1. Any settlement agreement or voluntary agreement to restrict the practice of veterinary medicine or other applicable activities entered into in another state, district, territory or country,; or failure to report any
  2. Any adverse judgment in a malpractice action to which the licenseecredential holder is a party, and everyor
  3. Any settlement of a claim against the licenseecredential holder alleging malpractice, within 30 days of said voluntary agreement, adverse judgment, or settlement.
    (13)   Knowingly aiding, assisting, procuring, or advising a person to unlawfully practice veterinary medicine.Being guilty of a willful or repeated departure from, or the failure to conform to, the minimal standard of acceptable and prevailing practice of veterinary medicine in which proceeding actual injury to a patient need not be established, which includes, but is not limited to, a violation of the standards of practice as set out in 811—Chapter 12; or the committing by a veterinarian of an act contrary to honesty, justice or good morals, whether the same is committed in the course of practice or otherwise, and whether committed within or without this state, where such act substantially relates to the practice of veterinary medicine.    (14)   Inability to practice veterinary medicineperform duties for which a credential is required with reasonable skill and safety by reason of a mental or physical impairment or chemical abuse.    (15)   Violating a lawful order of the board previously entered by the board in a disciplinary hearing.    (16)   Being adjudged mentally incompetent by a court of competent jurisdiction. Such adjudication shall automatically suspend a licensecredential for the duration of the licensecredential unless the board orders otherwise.Indiscriminately or promiscuously prescribing, administering or dispensing any drug; or prescribing, administering or dispensing any drug for other than a lawful purpose.    (17)   Knowingly submitting a false report of continuing education or failure to submit the triennial report of continuing education.    (18)   Failure to comply with a subpoena issued by the board.    (19)   Willful or gross negligence.    (20)   Obtaining any fee by fraud or misrepresentation.Negligence in failing to exercise due care in the delegation of veterinary services to or supervision of registered veterinary technicians, veterinary assistants, employees or other individuals, whether or not injury results.    (21)   Violating any of the grounds for the revocation or suspension of a licensecredential as listed in Iowa Code section 169.13 or these rules.    (22)   Noncompliance with the college student aid commission in regard to repayment of student financial aid obligations. The board shall suspend or revoke a license to practice veterinary medicinecredentialupon receipt of a certificate of noncompliance from the college student aid commission according to the procedures set forth in Iowa Code chapter 261. In addition to the procedures contained therein, the following shall apply.:
  1. a.    The notice required by Iowa Code section 261.126 shall be served by restricted certified mail, return receipt requested, or by personal service in accordance with the Iowa Rules of Civil Procedure. Alternatively, the applicant or credential holder may accept service personally or through authorized counsel.
  2. b.    The effective date of revocation or suspension of a licensecredential, as specified in the notice required by Iowa Code section 261.126, shall be 60 days following service of the notice upon the applicantcredential holder.
  3. c.    The board’s executive secretary is authorized to prepare and serve the notice required by Iowa Code section 261.126 and is directed to notify the licenseecredential holder that the licensecredential will be suspended, unless the licensecredential is already suspended on other grounds. In the event a licensecredential is onunder suspension, the executive secretary shall notify the licenseecredential holder of the board’s intention to revoke the licensecredential.
  4. d.    LicenseesCredential holder shall keep the board informed of all court actions and all college student aid commission actions taken under or in connection with Iowa Code chapter 261 and shall provide the board copies, within seven days of filing or issuance, of all applications filed with the district court pursuant to Iowa Code section 261.127, all court orders entered in such actions, and withdrawals of certificates of noncompliance by the college student aid commission.
  5. e.    All board fees required for renewal or reinstatement must be paid by the applicant or credential holder, and all continuing education requirements must be met before a licensecredential will be renewed or reinstated after the board has denied the renewal or reinstatement of a licensecredential pursuant to Iowa Code chapter 261.
  6. f.    In the event a licenseecredential holder timely files a district court action following service of a board notice pursuant to Iowa Code sections 261.126 and 261.127, the board shall continue with the intended action described in the notice upon the receipt of a court order lifting the stay, dismissing the action, or otherwise directing the board to proceed. For purposes of determining the effective date of the denial of the renewal, or reinstatement of a licensecredential, the board shall count the number of days before the court action was disposed of by the court.
  7. g.    The board shall notify the licenseecredential holder in writing through regular first-class mail, or such other means as the board deems appropriate in the circumstances, within ten days of the effective date of the suspension or revocation of a licensecredential and shall similarly notify the applicant when the licensecredential is reinstated following the board’s receipt of a withdrawal of the certificate of noncompliance.
    (23)   Having the person’s certificate, license, and permit, or other credentialto practice veterinary medicine revoked or suspended, or having any other disciplinary action taken by a licensing or regulating authority of another state, territory, or country, or the United States Department of Agriculture (USDA), or having the person’sveterinarian's U.S.D.A. accreditation revoked, suspended or other disciplinary action taken against the accreditation. A certified copy of the record or order of suspension, revocation, or disciplinary action is conclusive or prima facie evidence.of the credential holder's having committed one of the following actions:
  1. Permitting or directing any auxiliary personnel or any other person who does not hold the proper credentials to perform veterinary duties involving diagnosis, prescription or surgery, except as allowed pursuant to rule 811—8.5(169);
  2. Permitting or directing any auxiliary personnel or any other person to perform any act which would be a legal or ethical violation if committed by a veterinarian;
  3. Failing to comply with a lawful child support order as provided in 811—Chapter 13; or
  4. Failing to pay any hearing fees and costs within the time specified in the board’s decision;
    10.6(2)   Grounds applicable to licensed veterinarians only. In addition to the grounds set out in subrule 10.6(1), without regard as to whether the board has determined that injury has occurred, a licensed veterinarian is subject to disciplinary action for the violation of any of the following:    a.    Engaging in unethical conduct which includes, but is not limited to, a violation of the standards of practice as set out in 811—Chapter 12, and which may include acts or offenses in violation of the AVMA Principles of Veterinary Medical Ethics.    b.    Engaging in practice harmful or detrimental to the public which includes, but is not limited to, either of the following:    (1)   The use of a rubber stamp to affix a signature to a prescription. A licensee who is unable, due to a physical disability, to make a written signature or mark may substitute in lieu of a signature a rubber stamp which is adopted by the disabled person for all purposes requiring a signature and which is affixed by the disabled person or affixed by another person upon the request of the disabled person and in the licensee’s presence.    (2)   The practice of maintaining any presigned prescription which is intended to be completed and issued at a later time.    c.    Willfully or repeatedly departing from, or failing to conform to, the minimal standard of acceptable and prevailing practice of veterinary medicine which includes, but is not limited to, a violation of the standards of practice as set out in 811—Chapter 12; or committing an act contrary to honesty, justice or good morals, whether the act is committed in the course of practice or otherwise, and whether the act is committed within or without this state, where such act substantially relates to the practice of veterinary medicine. It is not necessary for grounds to exist under this paragraph that actual injury to a patient be established.    d.    Indiscriminately or promiscuously prescribing, administering or dispensing any drug; or prescribing, administering or dispensing any drug for other than a lawful purpose.    e.    Negligently failing to exercise due care in the delegation of veterinary services to or in supervision of employees or other individuals, whether or not injury results.

    ITEM 44.    Amend rule 811—10.7(17A,169,272C) as follows:

811—10.7(17A,169,272C) Sanctions.  The board has authority to impose the following disciplinary sanctions:
  1. Revoke a licensecredential.
  2. Suspend a licensecredential until further order of the board or for a specified period.
  3. Prohibit permanently, until further order of the board or for a specified period, the engaging in specified procedures, methods or acts.
  4. Impose a period of probation.
  5. Require additional education or training.
  6. Require a reexamination.
  7. Order a physical or mental examination.
  8. Impose civil penalties not to exceed $1000$10,000.
  9. Issue a citation and warning.
  10. Impose such other sanctions allowed by law as may be appropriate.

    ITEM 45.    Amend paragraph 10.8(2)"d" as follows:    d.    Receive evidence, in accordance with Iowa Code section 17A.14, on behalf of the state of Iowa and on behalf of the licenseecredential holder.

    ITEM 46.    Amend rule 811—10.9(17A,169,272C) as follows:

811—10.9(17A,169,272C) Informal settlement.  Pursuant to the provisions of Iowa Code sections 17A.12 and 272C.3, the board may consider resolution of disciplinary matters through informal settlement prior to commencement of contested case proceedings. The executive secretary or a designee may negotiate with the licenseecredential holder regarding a proposed disposition of the controversy. Upon consent of both parties, the board will review the proposal for action.

    ITEM 47.    Amend rule 811—10.10(17A,169,272C) as follows:

811—10.10(17A,169,272C) Voluntary surrender.  A voluntary surrender of licensurecredentials may be submitted to the board as resolution of a contested case or in lieu of continued compliance with a disciplinary decision of the board.

    ITEM 48.    Amend rule 811—10.11(17A,169,272C) as follows:

811—10.11(17A,169,272C) Application for reinstatement.  AnyA person whose license to practice veterinary medicinecredential has been suspended, revoked, or voluntarily surrendered may apply to the board for reinstatement in accordance with the terms and conditions of the order.    10.11(1)   If the licensecredential was voluntarily surrendered, or if the order for suspension or revocation did not establish terms and conditions for reinstatement, an initial application may not be made until one year has elapsed from the date of the order.    10.11(2)   The application shall allege facts and circumstances which will enable the board to determine that the basis for the sanction or voluntary surrender no longer exists, and that it is in the public interest to reinstate the licensecredential. The burden of proof to establish these facts shall rest with the petitioner.    10.11(3)   The hearing in an application for reinstatement is a contested case inwithin the meaning of Iowa Code section 17A.12.    10.11(4)   The order to grant or deny reinstatement shall incorporate findings of fact and conclusions of law. If reinstatement is granted, terms and conditions of licensurefor reinstating the credential may be imposed.

    ITEM 49.    Amend rule 811—10.14(17A) as follows:

811—10.14(17A) Definitions.  Except where otherwise specifically defined by law:        "Contested case" means a proceeding defined by Iowa Code section 17A.2(5) and includes any matter defined as a no factual dispute contested case under 1998 Iowa Acts, chapter 1202, section 14.        "Issuance" means the date of mailing of a decision or order or date of delivery if service is by other means, unless another date is specified in the order.        "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.        "Presiding officer" means the chairperson of the board or designee.        "Proposed decision" means the presiding officer’s recommended findings of fact, conclusions of law, decision, and order in a contested case in which the board did not preside.

    ITEM 50.    Amend subrules 10.16(1)10.16(2) as follows:    10 10.16 16(1)   The date, time, and location of the hearing shall be set by the chairperson or the executive secretaryboard. The licenseecredential holder shall be notified at least 30 days prior to the scheduled hearing.    10 10.16 16(2)   Notification shall be in writing delivered either by personal service as in civil actions or by certified mail with return receipt requested. When the licenseecredential holder cannot be located:    a.    An affidavit shall be prepared outlining the measures taken to attempt service, and shall become a part of the filerecord when a notice cannot be delivered by personal service or certified mail, return receipt requested.    b.    Notice of hearing shall be published once each week for three consecutive weeks in a newspaper of general circulation, published or circulated in the county of last-known residence of the licenseecredential holder. The newspaper will be selected by the executive secretary or a designee. The first notice of hearing shall be published at least 30 days prior to the scheduled hearing.

    ITEM 51.    Amend rule 811—10.17(17A), introductory paragraph, as follows:

811—10.17(17A) Presiding officer.  Disciplinary hearings shall be conducted by the board pursuant to Iowa Code section 272C.6. The chairperson of the board shall designate the presiding officer in accordance with the provisions of 1998 Iowa Acts, chapter 1202, section 15.

    ITEM 52.    Amend subrule 10.20(2) as follows:    10.20(2)   The term “personally investigated” means taking affirmative steps to interview witnesses directly or to obtain documents or other information directly. The term “personally investigated” does not include general direction and supervision of assigned investigators, unsolicited receipt of information which is relayed to assigned investigators, review of another person’s investigative work product in the course of determining whether there is probable cause to initiate a proceeding or exposure to factual information while performing other agency functions, including fact gathering for purposes other than investigation orof the matter which culminates in a contested case. Factual information relevant to the merits of a contested case received by a person who later serves as presiding officer in that case shall be disclosed if required by 1998 Iowa Acts, chapter 1202, section 19(3),Iowa Code section 17A.17(3) and subrules 10.20(3) and 10.32(9).

    ITEM 53.    Amend subrule 10.20(4) as follows:    10.20(4)   If a party asserts disqualification on any appropriate ground, including those listed in subrule 10.20(1), the party shall file a motion supported by an affidavit pursuant to 1998 Iowa Acts, chapter 1202, section 19(7)Iowa Code section 17A.17(7). The motion must be filed as soon as practicable after the reason alleged in the motion becomes known to the party. If, during the course of the hearing, a party first becomes aware of evidence of bias or other grounds for disqualification, the party may move for disqualification but must establish the grounds by the introduction of evidence into the record.If the presiding officer determines that disqualification is appropriate, the presiding officer or other person shall withdraw. If the presiding officer determines that withdrawal is not required, the presiding officer shall enter an order to that effect. A party asserting disqualification may seek an interlocutory appeal under rule 10.34(17A).

    ITEM 54.    Amend subrule 10.35(1) as follows:    10.35(1) Appeal by party.  Any adversely affected party may appeal a final decision of the board to the district court within 30 days after issuance, in accordance with Iowa Code section 17A.19 as amended by 1998 Iowa Acts, chapter 1202.

    ITEM 55.    Amend subrules 10.38(1) through 10.38(4) as follows:    .(1) Necessary emergency action.  To the extent necessary to prevent or avoid immediate danger to the public health, safety, or welfare, the agencyboard may issue a written order in compliance with Iowa Code section 17A.18 to suspend a licensecredential in whole or in part, order the cessation of any continuing activity, order affirmative action, or take other action within the jurisdiction of the agencyboard by emergency adjudicative order. Before issuing an emergency adjudicative order, the agencyboard shall consider factors including, but not limited to, the following:    a.    Whether there has been a sufficient factual investigation to ensure that the agencyboard is proceeding on the basis of reliable information;    b.    Whether the specific circumstances which pose immediate danger to the public health, safety, or welfare have been identified and determined to be continuing;    c.    Whether the person required to comply with the emergency adjudicative order may continue to engage in other activities without posing immediate danger to the public health, safety, or welfare;     d.    Whether imposition of monitoring requirements or other interim safeguards would be sufficient to protect the public health, safety, or welfare; and    e.    Whether the specific action contemplated by the agencyboard is necessary to avoid the immediate danger.    .(2) Issuance.  The written emergency adjudicative order shall be immediately delivered to persons who are required to comply with the order by utilizing one or more of the following procedures:    a.    Personal delivery;    b.    Certified mail, return receipt requested, to the last address on file with the agencyboard;    c.    Certified mail to the last address on file with the agencyboard;    d.    First-class mail to the last address on file with the agencyboard; or    e.    Fax. Fax may be used as the sole method of delivery if the person required to comply with the order has filed a written request that agencyboardorders be sent by fax and has provided a fax number for that purpose.To the degree practicable, the agencyboard shall select the procedure for providing written notice that best ensures prompt, reliable delivery.    .(3) Oral notice.  Unless the written emergency adjudicative order is provided by personal delivery on the same day that the order issues, the agencyboard shall make reasonable immediate efforts to contact by telephone the persons who are required to comply with the order.    .(4) Completion of proceedings.  Issuance of a written emergency adjudicative order shall include notification of the date on which agencyboard proceedings are scheduled for completion. After issuance of an emergency adjudicative order, continuance of further agencyboard proceedings to a later date will be granted only in compelling circumstances upon application in writing.

    ITEM 56.    Adopt the following new rule 811—10.39:

811—10.39(272C) Disciplinary hearing — fees and costs.      10.39(1) Definitions.  As used in this rule in relation to a formal disciplinary action filed by the board against a credential holder:        "Deposition" means the testimony of a person taken pursuant to subpoena or at the request of the state of Iowa taken in a setting other than a hearing.        "Expenses" means costs incurred by persons appearing pursuant to subpoena or at the request of the state of Iowa for purposes of providing testimony on the part of the state of Iowa in a hearing or other official proceeding and shall include mileage reimbursement at the rate specified in Iowa Code section 70A.9 or, if commercial air or ground transportation is used, the actual cost of transportation to and from the proceeding. Also included are actual costs incurred for meals and necessary lodging.        "Medical examination fees" means actual costs incurred by the board in a physical, mental, chemical abuse, or other impairment–related examination or evaluation of a credential holder when the examination or evaluation is conducted pursuant to an order of the board.        "Record" means the proceedings of the hearing including, but not limited to, the transcript and any documentary evidence admitted or offered at the hearing.        "Transcript" means a printed verbatim reproduction of everything said on the record during a hearing or other official proceeding.        "Witness fees" means compensation paid by the board to persons appearing pursuant to subpoena or at the request of the state of Iowa for purposes of providing testimony on the part of the state of Iowa. For the purpose of this rule, compensation shall be the same as outlined in Iowa Code section 622.69 or 622.72, as applicable.    10.39(2) Disciplinary hearing fee.  The board may charge a fee not to exceed the amount authorized in Iowa Code section 272C.6 for conducting a disciplinary hearing which results in disciplinary action taken against the credential holder by the board. An order assessing a fee shall be included as part of the board’s final decision. The order shall direct the credential holder to deliver payment directly to the department of agriculture and land stewardship as provided in subrule 10.39(6).    10.39(3) Recovery of related hearing costs.  The board may also recover from the credential holder the costs for transcripts, witness fees and expenses, depositions, and medical examination fees, if disciplinary action is taken. The board may assess these costs in the manner it deems most equitable in accordance with the following:    a.    Transcript costs.The board may assess the transcript costs against the credential holder pursuant to Iowa Code section 272C.6(6) or against the requesting party pursuant to Iowa Code section 17A.12(7).    (1)   The cost of the transcript includes the transcript of the original contested case hearing before the board, as well as transcripts of any other formal proceedings before the board which occur after the notice of the contested case hearing is filed.    (2)   In the event of an appeal to the full board from a proposed decision, the appealing party shall timely request and pay for the transcript necessary for use in the board appeal process.    b.    Witness fees and expenses.The parties in a contested case shall be responsible for any witness fees and expenses incurred by witnesses appearing at the contested case hearing. In addition, the board may assess a credential holder the witness fees and expenses incurred by witnesses called to testify on behalf of the state of Iowa, provided that the costs are calculated as follows:    (1)   The costs for lay witnesses shall be determined in accordance with Iowa Code section 622.69. For purposes of calculating the mileage expenses allowed under that section, the provisions of Iowa Code section 625.2 do not apply.    (2)   The costs for expert witnesses shall be determined in accordance with Iowa Code section 622.72. For purposes of calculating the mileage expenses allowed under that section, the provisions of Iowa Code section 625.2 do not apply.    (3)   The provisions of Iowa Code section 622.74 regarding advance payment of witness fees and the consequences of failure to make such payment are applicable with regard to witnesses who are subpoenaed by either party to testify at the hearing.    (4)   The board may assess as costs the meal and lodging expenses necessarily incurred by witnesses testifying at the request of the state of Iowa. Meal and lodging costs shall not exceed the reimbursement employees of the state of Iowa receive for these expenses under the department of revenue guidelines currently in effect.    c.    Deposition costs.Deposition costs for purposes of allocating costs against a credential holder include only those deposition costs incurred by the state of Iowa. The credential holder is directly responsible for the payment of deposition costs incurred by the credential holder.    (1)   The costs for depositions include the cost of transcripts, the daily charge of the court reporter for attending and transcribing the deposition, and all mileage and travel time charges of the court reporter for traveling to and from the deposition which are charged in the ordinary course of business.    (2)   If the deposition is of an expert witness, the deposition costs include a reasonable fee for an expert witness. This fee shall not exceed the expert’s customary hourly or daily fee, and shall include the time reasonably and necessarily spent in connection with the deposition, including the time spent in travel to and from the deposition, but excluding time spent in preparation for the deposition.    d.    Medical examination fees.All costs of physical or mental examinations ordered by the board pursuant to Iowa Code section 272C.9(1) as part of an investigation of a pending complaint or as a sanction following a contested case shall be paid directly by the credential holder.    10.39(4) Certification of reimbursable costs.  Within ten days after conclusion of a contested case hearing and before issuance of any final decision assessing costs, the secretary shall certify any reimbursable costs to the board. The secretary shall calculate the specific costs, certify the costs calculated, and file the certification as part of the record in the contested case. A copy of the certification shall be served on each party of record at the time of the filing.    10.39(5) Assessment of fees and costs.  A final decision of the board imposing disciplinary action against a credential holder shall include the amount of any fee assessed. If the board also assesses costs against the credential holder, the final decision shall include a statement of costs delineating each category of costs and the amount assessed. The board shall specify the time period in which the fees and costs must be paid by the credential holder.    a.    A party shall file an objection to any fees or costs imposed in a final decision in order to exhaust administrative remedies. An objection shall be filed in the form of an application for rehearing pursuant to Iowa Code section 17A.16(2).    b.    The application shall be resolved by the board consistent with the procedures for ruling on an application for rehearing. Any dispute regarding the calculations of any fees or costs to be assessed may be resolved by the board upon receipt of the parties’ written objections.    10.39(6) Payment of fees and costs.  Payment for fees and costs assessed pursuant to this rule shall be made in the form of a check or money order made payable to the state of Iowa and delivered by the credential holder to the department of agriculture and land stewardship.    10.39(7) Failure to make payment.  Failure of a credential holder to pay any fees and costs within the time specified in the board’s decision shall constitute a violation of an order of the board and shall constitute grounds for disciplinary action.

    ITEM 57.    Amend 811—Chapter 10, implementation sentence, as follows:       These rules are intended to implement Iowa Code chapterchapters 17A,as amended by 1998 Iowa Acts, chapter 1202, and Iowa Code chapters 169, and 272C.

    ITEM 58.    Amend rule 811—11.1(169) as follows:

811—11.1(169) Continuing education required for a veterinary licensee.      11.1(1)   At least 60 hours of continuing education in courses approved by the board of veterinary medicine shall be completed trienniallywithin the last three licensing years by each licensee as a condition for license renewal. The licensee has financial responsibility for financingthe cost of continuing education. These credit hours may be obtained by attending board-approved scientific or practice management seminars and meetings on the basis of one credit hour for each hour of attendance. Attendance at any approved national, state or regional meeting or RACE-approved meeting will be acceptable. One hour of credit may be approved for local meetings where a scientific paper is presented. Credit for qualified graduate college courses may be approved on the basis of multiplying each college credit hour by 10, to a maximum of 30 hours during any one triennial license period. A maximum of 20 hours during any one triennial license period of continuing education may be achieved by completion of approved home studydistance education courses. A maximum of 20 hours of continuing education during any one triennial license period may be achieved by completion of approved practice management courses.    11.1(2)   Each licensee shall obtain the 60 credit hours between July 1 of the year the license was issued and June 30 of the following third year as a condition precedent to license renewal. Continuing education credits in excess of 60 hours for any three-year license period may be carried over to the next triennial license period, but the total number of creditscredit hours carried over shall not exceed 20 hours.    11.1(3)   A recent graduate is exempt from meeting continuing education requirements at the time of original licensure and for the first year of practice. For the purpose of this rule, a “recent graduate” means a person who has graduated from an accredited or approved school of veterinary medicine, or received a certificate from the Educational Commission for Foreign Veterinary Graduates (ECFVG)ECFVG or PAVE no more than three years prior to passing the state board examinationapplication for licensure. If a recent graduate is licensed during the first year of the triennial continuing education period, the licensee is required to complete 40 hours of continuing educationlicensefor the first license renewal. If a recent graduate is licensed during the second year of the triennial continuing educationlicenseperiod, the licensee is required to complete 20 hours of continuing educationtriennial license for the first license renewal. If a recent graduate is licensed during the third year of the continuing education period, the licensee is exempt from meeting continuing education requirements for the first license renewal.    11.1(4)   Completion of the continuing education requirement will be reported to the secretary of the board of veterinary medicine on formsa form provided by the board, at the time theof license is due for renewal. The reporting form must be signed by the license holderlicensee and accompanied by a renewal application and the proper renewal fee.       This rule is intended to implement Iowa Code sections 169.5, 169.12 and 272C.2.

    ITEM 59.    Amend rule 811—11.2(169) as follows:

811—11.2(169) Exemptions for an inactive practitionersveterinary licensee.  A licensee residing within or outside Iowa who is not engaged in practice in the state of Iowa residing within or without the state of Iowa may be granted a waiver of compliance and obtain a certificate of exemption upon paying the annual license renewal feesfee. The licensee shall makeprovide a written application to the board containingthat includes a statement that the applicant will not engage in the practice of veterinary medicine in Iowa without first complying with all the regulationsrules governing reinstatementreactivation after exemption. The application for a certificate of exemption shall be submitted upon theon a form provided by the board.

    ITEM 60.    Amend rule 811—11.3(169) as follows:

811—11.3(169) ReinstatementReactivation of license.  PractitionersA veterinarian whose license has lapsed or who have been placed on inactive status shall, prior to engaging in the practice of veterinary medicine in the state of Iowa, satisfy the following requirements for reinstatement:    11.3(1)   Successfully complete the examination procedures specified in rule 811—7.1(169) within one year of reinstatement or otherwise demonstrate their proficiency to the satisfaction of the board;    11.3(2)   Submit written application for reinstatement to the board upon forms provided by the board; andFurnishfurnish evidence of completion of a total number of hours of accredited continuing education computed by multiplying 20 by the number of years of inactive status, or 60 hours of accredited continuing education, whichever is lesssince the date of the last issuance of the license for which reactivation is sought.

    ITEM 61.    Amend 811—Chapter 11, implementation sentence, as follows:       These rules are intended to implement Iowa Code sections 169.5, 169.12, and 272C.2chapters 169 and 272C.

    ITEM 62.    Amend rule 811—12.2(169) as follows:

811—12.2(169) Extra label use of veterinary drugs and immunization products.  Any extra-label use of veterinary products shall be considered, prescribed or used by or under the order of a practicinglicensed veterinarian only; and shall be subject to the following criteria:    12.2(1)   There shall be a veterinarian-client-patient relationship as defined in subrule 12.1(3).    12.2(2)   For drugs used in animals not intended for food,Therethere are no marketed products specifically labeled for the conditions diagnosed; or ifin the veterinarian's clinical judgment the labeled dosage is inadequateinappropriate for the condition, in the opinion of the veterinarianor the extra-label use should result in a better outcome for the patient.    12.2(3)   The health of the treated animal(s) is immediately threatened and suffering or death would result from a failure to treat the affected animal(s).    12.2(4)   Appropriate withdrawal times shall be specified when the veterinary products are used in animals intended as food. Extra–label drug use in food–producing animals must follow Food and Drug Administration - Animal Medicinal Drug Use Clarification Act regulations (21 Code of Federal Regulations 530).

    ITEM 63.    Adopt the following new rule 811—12.3:

811—12.3(169) Prescription labeling and packaging.  A licensed veterinarian shall comply with all of the following requirements for the storage, handling, dispensing, and administering of medication:    12.3(1)   The veterinarian shall maintain all controlled substances in compliance with state and federal requirements.    12.3(2)   All medications that are dispensed from a container other than the original container shall be placed in a child–resistant container unless otherwise requested by the owner or unless the medication is in a form or size that cannot be easily dispensed in a child–resistant container.    12.3(3)   All medications dispensed shall be labeled with the following information:    a.    Name, telephone number, and address of the veterinary clinic, hospital, or service facility.    b.    Name of the prescribing licensed veterinarian.    c.    Date on which the prescription is dispensed.    d.    Directions for use, including any cautionary statements and withdrawal times when appropriate.    e.    Name and species of the patient.    f.    Name of the owner.    g.    Name, strength, and dosage form of the medication. If the medication is a compounded product, all active ingredients must be listed on the label, with corresponding strengths or concentrations of each ingredient.    h.    Number of units dispensed.    i.    Expiration date. If the medication is a compounded product with no assigned expiration date, the veterinarian shall determine a beyond–use date as supported by the literature or by the veterinarian’s professional judgment when no such supportive information exists.    j.    Appropriate withdrawal times, when the animal patient is intended as food.    12.3(4)   All medications dispensed in the original container shall retain the original label and, in addition, shall be labeled with the same information as required in subrule 12.3(3).    12.3(5)   Medications which have expired shall be removed from current inventory and shall not be dispensed or sold.    12.3(6)   Medications shall be dispensed only for specific animals and for specific veterinary medical therapies with the exception of groups of similar animals and other groups such as pet fish, kennels, and catteries for which dispensing shall be done judiciously within a valid veterinarian–client–patient relationship.

    ITEM 64.    Amend 811—Chapter 12, implementation sentence, as follows:       These rules are intended to implement Iowa Code section 169.13(7)chapter 169.

    ITEM 65.    Amend rule 811—13.1(169,252J) as follows:

811—13.1(169,252J) Licensing actions.  In addition to other reasons specified by statute or rule, the board may refuse to issue a license or permitcredential, or may revoke, suspend, or not renew any license or permitcredential for which it has jurisdiction if the board is in receipt of a certificate of noncompliance from the child support recovery unit, pursuant to the procedures set forth in Iowa Code Supplement chapter 252J.An applicant, licensee, or permitcredential holder whose application is denied or whose license or permit iscredential is denied, suspended, or revoked because of receipt by the board of a certificate of noncompliance issued by the child support recovery unit shall be subject to the provisions of rule 811—13.1(169,252J), and procedures specified in 811—Chapter 10 for contesting board actions shall not apply.

    ITEM 66.    Amend rule 811—13.2(169,252J) as follows:

811—13.2(169,252J) Child support collection procedures.  The following procedures shall apply to actions taken by the board on a certificate of noncompliance pursuant to Iowa Code Supplement chapter 252J:    13.2(1)   The notice required by Iowa Code Supplement section 252J.8 shall be served upon the applicant, licensee, or permitcredential holder by restricted certified mail, return receipt requested, or personal service in accordance with RulesIowa Rule of Civil Procedure 56.11.305. Alternatively, the applicant, licensee, or permitcredential holder may accept service personally or through authorized counsel.    13.2(2)   The effective date of revocation or suspension of a license or permitcredential or the denial of the issuance or renewal of a license or permitcredential, as specified in the notice required by Iowa Code Supplement section 252J.8, shall be 60 days following service of the notice upon the licensee, permitcredential holder, or applicant.    13.2(3)   Applicants, licensees, and permitcredential holders shall keep the board informed of all court actions and all child support recovery unit actions taken under or in connection with Iowa Code Supplement chapter 252J and shall provide the board copies, within seven days of filing or issuance, of all applications filed with the district court pursuant to Iowa Code Supplement section 252J.9, all court orders entered in such actions, and withdrawals of certificates of noncompliance by the child support recovery unit.    13.2(4)   All board fees for applications, licensecredential renewals or reinstatements must be paid by the applicant, licensee, or permitcredential holder before a licensecredential will be issued, renewed or reinstated after the board has denied the issuance or renewal of a licensecredential or has suspended or revoked a license or permitcredential pursuant to Iowa Code Supplement chapter 252J.    13.2(5)   If an applicant, licensee, or permitcredential holder timely files a district court action following service of a board notice pursuant to Iowa Code Supplement sections 252J.8 and 252J.9, the board shall continue with the intended action described in the notice upon receipt of a court order lifting the stay, dismissing the action, or otherwise directing the board to proceed. For the purpose of determining the effective date of revocation or suspension, or denial of the issuance or renewal of a license or permitcredential, the board shall count the number of days before the action was filed and the number of days after the action was disposed of by the court.

    ITEM 67.    Amend 811—Chapter 13, implementation sentence, as follows:       These rules are intended to implement Iowa Code chapterchapters169 and Iowa Code Supplement chapter 252J.

    ITEM 68.    Amend subrules 14.5(1)14.5(3) as follows:    14 14.5 5(1) LicenseCredential application.  If the petition relates to a licensecredential application, the petition shall be made in accordance with the filing requirements for the licensecredential in question.    14 14.5 5(3) Other.  If the petition does not relate to a licensecredential application or a pending contested case, the petition may be submitted to the board’s executive secretary.

    ITEM 69.    Amend rule 811—14.6(17A,169), numbered paragraph “5”, as follows:
  1. The name, address, and telephone number of the entity or person for whom a waiver is being requested and the case number of any related contested case.
  2. A description and citation of the specific rule from which a waiver is requested.
  3. The specific waiver requested, including the precise scope and duration.
  4. The relevant facts that the petitioner believes would justify a waiver under each of the four criteria described in rule 811—14.4(17A,169). This statement shall include 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.
  5. A history of any prior contacts between the board and the petitioner relating to the regulated activity or licensecredential affected by the proposed waiver, including a description of each affected licensecredential held by the requester, any notices of violation, contested case hearings, or investigative reports relating to the regulated activity or licensecredential within the last five years.
  6. Any information known to the requester regarding 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.
  8. The name, address, and telephone number of any person or entity that 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 regarding the request to furnish the board with information relevant to the waiver.
Editor's Note: Pursuant to recommendation of the Administrative Rules Review Committee published in the Iowa Administrative Bulletin, September 10, 1986, the text of these amendments [amendments to Chs 1 to 7, 9 to 14] is being omitted. With the exception of the changes noted above, these amendments are identical to those published under Amended Notice as ARC 6863B, IAB 6/18/08.[Filed 9/4/08, effective 10/29/08][Published 9/24/08][For replacement pages for IAC, see IAC Supplement 9/24/08.]
ARC 7174BWorkforce Development Department[871]Adopted and Filed

    Pursuant to the authority of Iowa Code section 96.11, the Director of the Workforce Development Department hereby amends Chapter 24, “Claims and Benefits,” Iowa Administrative Code.    New rule 871— 24.10(96) is adopted pursuant to 2008 Iowa Acts, Senate File 2160, and provides criteria for the implementation of the legislation. Senate File 2160 states that an unemployment insurance accounting firm which demonstrates a continuous pattern of failing to participate in the initial unemployment benefit hearings shall be denied permission to represent employers before the Department of Workforce Development. The new rule defines suspension criteria and allows the Department to reduce suspensions based upon all the facts of the situation.    Notice of Intended Action was published in the July 30, 2008, Iowa Administrative Bulletin as ARC 7044B. Comments regarding this rule were received during the comment period and at the public hearing held on August 19, 2008. The comments are contained in the responsiveness summary, which can be obtained by telephoning Joe Bervid at (515)281-8117. There are no changes from the Notice of Intended Action resulting from the public comments.    This rule is intended to implement Iowa Code section 96.3(7)“b” as amended by 2008 Iowa Acts, Senate File 2160.    This rule shall become effective October 29, 2008.

    ITEM 1.    Adopt the following new rule 871—24.10(96):

871—24.10(96) Employer and employer representative participation in fact-finding interviews.      24.10(1)   “Participate,” as the term is used for employers in the context of the initial determination to award benefits pursuant to Iowa Code section 96.6, subsection 2, means submitting detailed factual information of the quantity and quality that if unrebutted would be sufficient to result in a decision favorable to the employer. The most effective means to participate is to provide live testimony at the interview from a witness with firsthand knowledge of the events leading to the separation. If no live testimony is provided, the employer must provide the name and telephone number of an employee with firsthand information who may be contacted, if necessary, for rebuttal. A party may also participate by providing detailed written statements or documents that provide detailed factual information of the events leading to separation. At a minimum, the information provided by the employer or the employer’s representative must identify the dates and particular circumstances of the incident or incidents, including, in the case of discharge, the act or omissions of the claimant or, in the event of a voluntary separation, the stated reason for the quit. The specific rule or policy must be submitted if the claimant was discharged for violating such rule or policy. In the case of discharge for attendance violations, the information must include the circumstances of all incidents the employer or the employer’s representative contends meet the definition of unexcused absences as set forth in 871—subrule 24.32(7). On the other hand, written or oral statements or general conclusions without supporting detailed factual information and information submitted after the fact-finding decision has been issued are not considered participation within the meaning of the statute.    24.10(2)   “A continuous pattern of nonparticipation in the initial determination to award benefits,” pursuant to Iowa Code section 96.6, subsection 2, as the term is used for an entity representing employers, means on 25 or more occasions in a calendar quarter beginning with the first calendar quarter of 2009, the entity files appeals after failing to participate. Appeals filed but withdrawn before the day of the contested case hearing will not be considered in determining if a continuous pattern of nonparticipation exists. The division administrator shall notify the employer’s representative in writing after each such appeal.     24.10(3)   If the division administrator finds that an entity representing employers as defined in Iowa Code section 96.6, subsection 2, has engaged in a continuous pattern of nonparticipation, the division administrator shall suspend said representative for a period of up to six months on the first occasion, up to one year on the second occasion and up to ten years on the third or subsequent occasion. Suspension by the division administrator constitutes final agency action and may be appealed pursuant to Iowa Code section 17A.19.    24.10(4)   “Fraud or willful misrepresentation by the individual,” as the term is used for claimants in the context of the initial determination to award benefits pursuant to Iowa Code section 96.6, subsection 2, means providing knowingly false statements or knowingly false denials of material facts for the purpose of obtaining unemployment insurance benefits. Statements or denials may be either oral or written by the claimant. Inadvertent misstatements or mistakes made in good faith are not considered fraud or willful misrepresentation.       This rule is intended to implement Iowa Code section 96.3(7)“b” as amended by 2008 Iowa Acts, Senate File 2160.
Editor's Note: Pursuant to recommendation of the Administrative Rules Review Committee published in the Iowa Administrative Bulletin, September 10, 1986, the text of this rule [24.10] is being omitted. This rule is identical to that published under Notice as ARC 7044B, IAB 7/30/08.[Filed 9/4/08, effective 10/29/08][Published 9/24/08][For replacement pages for IAC, see IAC Supplement 9/24/08.]

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