Print Bulletin 07-20-2016
Front matter not included
ARC 2627CEducation Department[281]Notice of Intended ActionTwenty-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 256.7(5) and 2016 Iowa Acts, House File 2392, section 8, the State Board of Education hereby proposes to adopt new Chapter 49, “Individual Career and Academic Plan,” Iowa Administrative Code. These rules establish that each student enrolled in grade eight shall have developed by the school district an individualized career and academic plan and that such a plan shall be reviewed and revised each succeeding year until the graduation of that student. An agencywide waiver provision is provided in 281—Chapter 4. Interested individuals may make written comments on the proposed rules until 4:30 p.m. on August 9, 2016. Comments on the proposed rules should be directed to Phil Wise, Iowa Department of Education, Grimes State Office Building, Second Floor, Des Moines, Iowa 50319-0146; telephone (515)281-4835; e-mail phil.wise@iowa.gov; or fax (515)242-5988. A public hearing will be held on August 9, 2016, from 10 to 11 a.m. in the State Board Room, Grimes State Office Building, Second Floor, East 14th Street and Grand Avenue, Des Moines, Iowa, 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 advise the Department of Education of their specific needs by calling (515)281-5295. These rules were also Adopted and Filed Emergency and are published herein as ARC 2620C. The purpose of this Notice is to solicit public comment on that submission. The content of that submission is incorporated herein by reference. After analysis and review of this rule making, no impact on jobs has been found. This amendment is intended to implement Iowa Code section 279.61 as amended by 2016 Iowa Acts, House File 2392, section 8.
ARC 2629CEnvironmental Protection Commission[567]Notice of Intended ActionTwenty-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 455B.263, the Environmental Protection Commission (Commission) hereby gives Notice of Intended Action to amend Chapter 70, “Scope of Title—Definitions—Forms—Rules of Practice,” Chapter 71, “Flood Plain or Floodway Development—When Approval Is Required,” and Chapter 72, “Criteria for Approval,” Iowa Administrative Code. The proposed amendments will change the criteria for the construction of bridges, road embankments, and culverts in a flood plain. Oftentimes, to construct bridges and other structures in a flood plain, the Iowa Department of Transportation (IDOT) and other contractors have had to apply for waivers or variances from the Commission’s rules, a process which could be time-consuming and costly. In response to this concern, the Commission has reviewed its rules and determined that certain portions of existing rules are redundant or unnecessary, and changes could be made that would allow for a higher percentage of compliance with rules. The proposed amendments will reduce the need for these contractors to seek waivers and variances. Equally important, the amendments will not sacrifice public safety. The proposed amendments also add exemptions to the Commission’s flood plain development permit requirements for certain activities, such as excavations installed for conservation practices, and for the installation of signs, utility poles and other similar structures. The Commission developed these exemptions in cooperation with stakeholders such as electric utilities and the Natural Resources Conservation Service (NRCS). The proposed amendments also modify the waiver and variance provision in the flood plain rules so that the provision is consistent with the Iowa Code. The amendments also make minor changes to Chapters 70, 71 and 72 to update definitions, references to Iowa Code sections, forms, and agency contact information. Any interested person may submit written comments on the proposed amendments on or before Wednesday, August 10, 2016. Written comments or questions regarding the proposed amendments should be directed to Ken Bouma, Iowa Department of Natural Resources, 502 East Ninth Street, Des Moines, Iowa 50319-0034; via fax at (515)725-8202; or via e-mail at ken.bouma@dnr.iowa.gov. A public hearing will be held on August 10, 2016, at 1 p.m. in Conference Room 2 North of the Wallace State Office Building, 502 East Ninth Street, Des Moines, Iowa. Persons attending the public hearing 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. Any persons who intend to attend the public hearing and have special requirements, such as those related to mobility or hearing impairments, should contact the Department to advise of specific needs. After analysis and review of this rule making, no impact on jobs has been found. On balance, the above-discussed amendments reduce the regulatory burden for the regulated community. This is done by rescinding or changing certain flood plain development criteria, providing more exemptions from flood plain development permit requirements, and clarifying how to properly obtain a waiver or variance from applicable rules. These amendments are intended to implement Iowa Code section 455B.264. The following amendments are proposed.
ITEM 1. Amend the following definitions in rule 567—70.2(455B,481A): "Animal feeding operation" means the same as defined in 567—65.1(455B459,459B). "Animal feeding operation structure," means the sameas defined in 567—65.1(455B459,459B), means a confinement building, manure storage structure, or egg washwater storage structure. "Confinement feeding operation," means the sameas defined in 567—65.1(455B459,459B), means an animal feeding operation in which animals are confined to areas which are totally roofed. "Confinement feeding operation building" "confinement building," means the sameas defined in 567—65.1(455B459,459B), means a building used in conjunction with a confinement feeding operation to house animals. "Confinement feeding operation structure," means the sameas defined in 567—65.1(455B459,459B), means an animal feeding operation structure that is part of a confinement feeding operation. "High damage potential" means the flood damage potential associated with habitable residential buildings or industrial, commercial, or public buildings or building complexes of which flooding would result in high public damages as determined by the department.the following:- Habitable residential buildings and building complexes which include seasonal residential buildings; or
- Industrial, commercial, agricultural, recreational and other similar buildings or building complexes constructed of materials or containing high-value equipment or contents that are not easily removed and would be damaged if inundated by flooding; or
- Public buildings or building complexes, which, if inundated by flooding, would result in high public damages as determined by the department.
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 455B.304(1) and 455D.7, the Environmental Protection Commission (Commission) hereby gives Notice of Intended Action to amend Chapter 100, “Scope of Title—Definitions—Forms—Rules of Practice,” Chapter 101, “Solid Waste Comprehensive Planning Requirements,” and Chapter 111, “Annual Reports of Solid Waste Environmental Management Systems,” Iowa Administrative Code. This rule making reflects legislative changes to the Iowa Code and encompasses the comprehensive five-year review of rules that the Department of Natural Resources (Department) is currently conducting pursuant to Iowa Code section 17A.7(2). This proposed rule making will eliminate inconsistencies with the Iowa Code, remove redundant reporting requirements, eliminate unnecessary and obsolete language and make corrections to Iowa Code references, thus simplifying the rules of the Commission and making them easier to use and understand. The proposed amendments will:
- Date(s) of duration of the exceptional event.
- Type of event (i.e., flood, tornado, combination thereof).
- Description of affected area(s), including approximate number of buildings and addresses, if available.
- Type(s) of waste to be exempted.
- Actual tonnage of debris disposed of during the quarter.
- Preliminary estimate of the total tonnage to be exempted (i.e., tons already disposed of and potential tons to be disposed of in future quarters).
- Protocol used by the municipal solid waste sanitary disposal project staff for determining which waste(s) coming into the facility was attributed to the exceptional event.
- Summary of existing policies to divert storm debris from disposal, as well as the amount of waste(s) diverted.
- Copies of scale tickets and summary report of scale tickets.
- Federal Emergency Management Agency (FEMA) reports, if any.
- Newspaper articles or pictures of affected areas.
- Supporting documentation indicating estimated remaining tonnage expected as a result of the exceptional event (i.e., supporting documentation from local insurance companies or municipal building inspectors).
- Contact information for the person(s) responsible for compiling the exceptional event report(s).
- Program description.
- Responsibility for program oversight.
- Funding source(s).
- Public education strategies employed.
- Targeted audiences (business and industry, urban residents, rural residents, local governments, and public institutions).
- The anticipated impact on the waste stream and diversion over at least two planning cyclesduring the next planning cycle.
- Program description.
- Responsibility for program oversight.
- Public education strategies employed.
- Targeted audiences (business and industry, urban residents, rural residents, local governments, and public institutions).
- The anticipated impact on the waste stream and diversion over at least two planning cyclesduring the next planning cycle.
Pursuant to the authority of Iowa Code section 135.181 as amended by 2016 Iowa Acts, House File 2460, sections 57 and 58, the Department of Public Health hereby gives Notice of Intended Action to adopt Chapter 107, “Board-Certified Behavior Analyst and Board-Certified Assistant Behavior Analyst (BCBA/BCaBA) Grants Program,” Iowa Administrative Code. The proposed new chapter establishes rules to implement the board-certified behavior analyst and board-certified assistant behavior analyst grants program. The grants program provides grants to Iowa resident and nonresident applicants who are enrolled in a program to be eligible for board certification as a behavior analyst or assistant behavior analyst. The purpose of the program is to increase access to certified behavior analyst and certified behavior assistant analyst professionals. These rules were written in cooperation with the Department of Education and the Department of Human Services’ Autism Support Program. Notice of Intended Action for the proposed chapter was published in the Iowa Administrative Bulletin as ARC 2460C on March 16, 2016. The Department received eight written comments as well as comments from eleven participants at a public hearing held on April 5, 2016. Additionally, Iowa Code section 135.181 was amended by 2016 Iowa Acts, House File 2460, sections 57 and 58. This Amended Notice of Intended Action reflects revisions made to the rules, including the addition of a new rule relating to reporting, in response to public comments received and to comply with 2016 Iowa Acts, House File 2460, sections 57 and 58. Any interested person may make written comments or suggestions on these rules on or before August 9, 2016. Such written comments should be directed to Doreen Chamberlin, Department of Public Health, Lucas State Office Building, 321 East 12th Street, Des Moines, Iowa 50319; fax (515)242-6384. E-mail may be sent to doreen.chamberlin@idph.iowa.gov. A public hearing is scheduled for August 17, 2016, from 1 to 3 p.m. in the Fourth Floor Conference Room 415, Lucas State Office Building, 321 East 12th Street, Des Moines, Iowa. Interested persons unable to attend in person may attend via conference call. The toll-free call-in number is 1-866-685-1580, and the conference code to enter when prompted is 0008881777. Persons may present their views either orally during the conference 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 rules. Any persons who intend to attend the public hearing and have special requirements, such as those relating to hearing impairments, should contact the Department and advise of specific needs by Wednesday, August 10, 2016. After analysis and review of this rule making, it is projected that these rules will positively impact employment opportunities for board-certified behavior analysts and board-certified assistant behavior analysts in Iowa and increase access for Iowans to these health care services. The Department of Education and the Department of Human Services’ Autism Support Program have determined that there are insufficient numbers of board-certified behavior analysts and board-certified assistant behavior analysts to provide services to clients of the Autism Support Program and to the public. It is assumed that the establishment of this new program will provide health care agencies that are recruiting these practitioners opportunities to recruit behavior analysts after the analysts have completed their training and are certified. No formal estimates on the number of jobs are available. These rules are intended to implement Iowa Code section 135.181 as amended by 2016 Iowa Acts, House File 2460, sections 57 and 58. The following rules are proposed.
ITEM 1. Adopt the following new 641—Chapter 107: CHAPTER 107BOARD-CERTIFIED BEHAVIOR ANALYST AND BOARD-CERTIFIED ASSISTANT BEHAVIOR ANALYST (BCBA/BCaBA) GRANTS PROGRAM —.1(135) Scope and purpose. The board-certified behavior analyst and board-certified assistant behavior analyst (BCBA/BCaBA) grants program is established to increase access for Iowans to applied behavior analysis services by providing grants to Iowa resident and nonresident applicants who have been accepted for admission or are attending a university, a community college, or an accredited private institution, within or outside the state of Iowa; are enrolled in a program, offered at a physical location or online, that is accredited and meets coursework requirements to prepare the applicant to be eligible for board certification as a behavior analyst or assistant behavior analyst; and demonstrate financial need. —.2(135) Definitions. For the purposes of these rules, the following definitions shall apply: "Board-certified assistant behavior analyst" "BCaBA" means a person who has a bachelor’s degree from an accredited university, has completed approved coursework as defined by the national Behavior Analyst Certification Board, has completed a defined period of supervised practical experience, and has passed the BCaBA examination. "Board-certified behavior analyst" "BCBA" means a person who has an acceptable graduate degree from an accredited university as defined by the national Behavior Analyst Certification Board, has completed acceptable graduate coursework in behavior analysis, has completed a defined period of supervised practical experience, and has passed the BCBA examination. "Department" means the Iowa department of public health. "Director" means the director of the Iowa department of public health. "Full-time enrollment" means the applicant is enrolled in a program to be eligible for board certification as a behavior analyst or assistant behavior analyst with the appropriate number of semester credit hours as defined by the educational institution. "Nonresident" means a person who is not a resident. "Part-time enrollment" means the applicant is enrolled in a program to be eligible for board certification as a behavior analyst or assistant behavior analyst with the appropriate number of semester credit hours as defined by the educational institution. "Resident" means a natural person who physically resides in Iowa as the person’s principal and primary residence and who establishes evidence of such residency by providing the department with one of the following:- A valid Iowa driver’s license,
- A valid Iowa nonoperator’s identification card,
- A valid Iowa voter registration card,
- A current Iowa vehicle registration certificate,
- A utility bill,
- A statement from a financial institution,
- A residential lease agreement,
- A check or pay stub from an employer,
- A child’s school or child care enrollment documents,
- Valid documentation establishing a filing for homestead or military tax exemption on property located in Iowa, or
- Other valid documentation as deemed acceptable by the department to establish residency.
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 142C.15 and 17A.3, the Department of Public Health hereby gives Notice of Intended Action to adopt Chapter 122, “Anatomical Gift Public Awareness and Transplantation Fund,” Iowa Administrative Code. The Department does not currently have rules established for the anatomical gift public awareness and transplantation fund. The proposed rules outline the funding requirements for state agencies or nonprofit legal entities conducting anatomical gift public awareness projects. The rules outline the funding requirements for hospitals conducting anatomical gift public awareness projects and improving referral protocols. The rules outline funding requirements for transplant recipients, donors, and caretakers for the reimbursement of out-of-pocket expenses not covered by insurance. Any interested person may make written suggestions or comments on the proposed rules on or before August 9, 2016. Such written comments should be directed to Sherry Frizell, Division of Behavioral Health, Department of Public Health, Lucas State Office Building, 321 East 12th Street, Des Moines, Iowa 50319. E-mail may be sent to sherry.frizell@idph.iowa.gov. After analysis and review of this rule making, no impact on jobs has been found. These rules are intended to implement Iowa Code section 142C.15. The following rules are proposed.
ITEM 1. Adopt the following new 641—Chapter 122: CHAPTER 122ANATOMICAL GIFT PUBLIC AWARENESS AND TRANSPLANTATION FUND641—122.1(142C) Scope and purpose. The anatomical gift public awareness and transplantation fund was established by the legislature as a separate fund consisting of monetary contributions collected by county treasurers during the vehicle registration process and other contributions to the fund. Not more than 20 percent of the moneys in the fund annually may be expended in the form of grants to state agencies or to nonprofit legal entities. Not more than 30 percent of the moneys in the fund annually may be expended in the form of grants to hospitals for reimbursement for costs directly related to the development of in-hospital anatomical gift public awareness projects, anatomical gift referral protocols, and associated administrative expenses. Any unobligated moneys in the fund annually may be expended in the form of grants to transplant recipients, transplant candidates, living organ donors, or to legal representatives on behalf of transplant recipients, transplant candidates, or living organ donors for the reimbursement of out-of-pocket expenses not covered by insurance. These rules shall be implemented only to the extent that funding is available.641—122.2(142C) Definitions. For purposes of this chapter, the following definitions apply: "Anatomical gift" means a human organ donated by a living or deceased person for the purpose of transplantation. "Caretaker" means a person who provides care, protection, or services to a transplant recipient or living organ donor. "Department" means the Iowa department of public health. "Donor" means an individual whose body or body part is the subject of an anatomical gift. "Human organ" means an eye, heart, lung, liver, pancreas, or kidney. "Recipient" means the person receiving a human organ via transplant surgery. "Resident" means a natural person who physically resides in Iowa as the person’s principal and primary residence and who establishes evidence of such residency by providing the department with one of the following:- A valid Iowa driver’s license,
- A valid Iowa nonoperator’s identification card,
- A valid Iowa voter registration card,
- A current Iowa vehicle registration certificate,
- A utility bill,
- A statement from a financial institution,
- A residential lease agreement,
- A check or pay stub from an employer,
- A child’s school or child care enrollment documents,
- Valid documentation establishing a filing for homestead or military tax exemption on property located in Iowa, or
- Other valid documentation as deemed acceptable by the department to establish residency.
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,” and Chapter 132, “Emergency Medical Services—Service Program Authorization,” Iowa Administrative Code. The rules in Chapter 131 describe the standards for the education, training, and certification of emergency medical providers. The rules in Chapter 132 describe the standards for the authorization of EMS services. These proposed amendments update the reference to the Iowa Emergency Medical Care Provider Scope of Practice and to the Critical Care Paramedic (CCP) Curriculum to the most recent editions, June 2016 and January 2016, respectively. The updated editions reflect current medical practice and core knowledge necessary for paramedics performing enhanced procedures for critical patients. The scope of practice document also removes the EMT-Intermediate and EMT-Ambulance provider levels, which are no longer certification levels in the State of Iowa. Provisions for administration of intranasal naloxone for all provider levels are incorporated in the updated scope of practice document to comply with 2016 Iowa Acts, Senate File 2218. Any interested person may make written comments or suggestions on the proposed amendments on or before August 9, 2016. Such written comments should be directed to Rebecca Curtiss, Bureau of Emergency and Trauma Services, Department of Public Health, 321 East 12th Street, Des Moines, Iowa 50319. E-mail may be sent to rebecca.curtiss@idph.iowa.gov. After analysis and review of this rule making, no impact on jobs has been found. These amendments are intended to implement Iowa Code section 147A.4. The following amendments are proposed.
ITEM 1. Amend paragraph 131.3(3)"b" as follows: b. Scope of Practice for Iowa EMS Providers (April 2015June 2016) is hereby incorporated and adopted by reference for emergency medical care providers. For any differences that may occur between the Scope of Practice adopted by reference and these administrative rules, the administrative rules shall prevail. ITEM 2. Amend paragraph 131.5(1)"c" as follows: c. A training program shall use the Iowa CCP curriculum (November 2001January 2016) for courses leading to the CCP endorsement. ITEM 3. Amend paragraph 132.2(4)"b" as follows: b. Scope of Practice for Iowa EMS Providers (April 2015June 2016) is hereby incorporated and adopted by reference for emergency medical care providers. For any differences that may occur between the Scope of Practice adopted by reference and these administrative rules, the administrative rules shall prevail.ARC 2636CRevenue Department[701]Notice of Intended ActionTwenty-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 423.42, the Department of Revenue hereby gives Notice of Intended Action to amend Chapter 15, “Determination of a Sale and Sale Price,” Chapter 18, “Taxable and Exempt Sales Determined by Method of Transaction or Usage,” and Chapter 230, “Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing,” Iowa Administrative Code. The proposed amendments are necessary to reflect the enactment of 2016 Iowa Acts, House File 2433. House File 2433 modifies the exemptions contained in Iowa Code section 423.3(47) by exempting supplies and by defining replacement parts and supplies. The proposed amendments incorporate these changes into new rules that implement Iowa Code section 423.3(47). The new rules are intended to modernize and simplify the administration of the exemptions under Iowa Code section 423.3(47). The proposed amendments also update terminology and cross references used in existing rules. Items 1 through 4 amend existing rules on exemptions by adding cross references to new rules 701—230.14(423) to 230.22(423). The items also update terminology in the existing rules and make nonsubstantive stylistic changes. Item 5 creates new rule 701—230.14(423), which provides a directory of and definitions for all exemptions under Iowa Code section 423.3(47) and which includes new and updated definitions to correspond to Iowa Code section 423.3(47) as amended by 2016 Iowa Acts, House File 2433. Item 6 creates new rule 701—230.15(423), which explains the exemption for property directly and primarily used in processing by a manufacturer. Item 7 creates new rule 701—230.16(423), which applies to the exemption for property directly and primarily used by a manufacturer to maintain integrity or unique environmental conditions. Item 8 creates new rule 701—230.17(423), which addresses the exemption for property directly and primarily used in research and development of new products or processes of processing. Item 9 creates new rule 701—230.18(423), which pertains to the exemption for computers used in processing or storage of data or information by an insurance company, financial institution, or commercial enterprise. Item 10 creates new rule 701—230.19(423), which discusses the exemption for property directly and primarily used in recycling or reprocessing of waste products. Item 11 creates new rule 701—230.20(423), which describes the exemption for pollution-control equipment used by a manufacturer. Item 12 creates new rule 701—230.21(423), which relates to the exemption for fuel used in exempt property. Item 13 creates new rule 701—230.22(423), which provides guidance for the exemption for the design and installation of new industrial machinery and equipment. 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 August 22, 2016, to Victoria Daniels, Policy and Communications Division, Department of Revenue, Hoover State Office Building, P.O. Box 10457, Des Moines, Iowa 50306. Alternatively, requests may be e-mailed to victoria.daniels@iowa.gov. 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 August 9, 2016. Such written comments should be e-mailed to Victoria Daniels at victoria.daniels@iowa.gov or mailed to Victoria Daniels, Policy and Communications 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 Victoria Daniels, Policy and Communications Division, Department of Revenue, at (515)281-8450 or at the Department of Revenue offices on the fourth floor of the Hoover State Office Building. Requests for public hearing must be received by August 9, 2016. After analysis and review of this rule making, the Department finds that the changes in the proposed amendments are likely to have a positive impact on jobs by exempting supplies. The Department estimates that, between fiscal years 2017 and 2021, manufacturers will reduce their total state and local sales and use tax burden by $29.2 million to $34.8 million annually under the proposed amendments. Reducing the tax burden on business inputs for manufacturers is likely to have a positive impact on jobs. These amendments are intended to implement Iowa Code section 423.3(47) as amended by 2016 House File 2433, and section 423.3(48). The following amendments are proposed.
ITEM 1. Amend paragraph 15.3(3)"a", definition of “Fuel consumed in processing,” as follows: "Fuel consumed in processing" includes fuel used in grain drying,or providing heat or cooling for livestock buildings, fuel used for generating electric current, fuel consumed in implements of husbandry engaged in agricultural production, as well as fuel used in “processing” as defined in rules 701—18.29(422,423),and 701—18.58(422,423), and 701—230.15(423). See rule 701—17.2(422) for a detailed description of “fuel used in processing.” See rule 701—17.3(422,423) for extensive discussion regarding electricity and steam used in processing. ITEM 2. Amend subrule 18.29(7) as follows: 18.29(7) Other department rules concerned with processing. Various sections of the Iowa Code set out activities whichthat are defined by statute to be “processing”. The rules interpreting these statutes for the purposes of sales and use tax law are the following: a. 701—15.3(422,423) Certificates of resale, processing, and fuel used in processingExemption certificates, direct pay permits, fuel used in processing, and beer and wine wholesalers. b. 701—17.2(422) Fuel used in processing—when exempt. c. 701—17.3(422,423) Electricity, steam, or other taxable services to be used in the processing of tangible personal property intended to be sold ultimately at retail are exempt from sales taxProcessing exemptions. d. 701—17.9(422,423) Sales of breeding livestock, fowl, and certain other property used in agricultural production. See 701—subrules 17.9(4), 17.9(5), 17.9(6), and 17.9(7) for processing exemptions. e. 701—17.14(422,423) Chemicals, solvents, sorbents, or reagents used in processing. f. 701—18.3(422,423) Chemical compounds used to treat water. g. 701—18.45(422,423) Sale or rental of computers, industrial machinery and equipment; refund of and exemption from tax paid for periods prior to July 1, 1997. h. 701—18.58(422,423) Sales or rentals of machinery, equipment, and computers and sales of fuel and electricity to manufacturers and sales or rentals of computers to commercial enterprises for periods on and after July 1, 1997, but before July 1, 2016. i. 701—26.2(422) Enumerated services exempt. See 701—subrule 26.2(2) for the processing exemption. j. 701—28.2(423) Processing of property defined. k. 701—33.3(423) Fuel consumed in creating power, heat, or steam for processing or generating electric current. l. 701—33.7(423) Property used to manufacture certain vehicles to be leased. m. For property sold on or after July 1, 2016, computers, machinery, equipment, replacement parts, and supplies used for an exempt purpose under Iowa Code section 423.3(47). See rules 701—230.14(423) to 701—230.22(423). ITEM 3. Amend rule 701—18.58(422,423), introductory paragraph, as follows:701—18.58(422,423) Exempt sales or rentals of computers, industrial machinery and equipment, and exempt sales of fuel and electricity on and after July 1, 1997, but before July 1, 2016. The sale or rental of machinery, equipment, or computers used by a manufacturer in processing; the sale or rental of a computer used in the processing or storage of data or information by an insurance company, financial institution, or commercial enterprise; and the sale or rental of various other types of tangible personal property are, under certain circumstances, exempt from tax as of July 1, 1997, but before July 1, 2016.For sales that occur on or after July 1, 2016, see rules 701—230.14(423) to 701—230.22(423). ITEM 4. Amend rule 701—230.5(423) as follows:701—230.5(423) Exempt sales of gases used in the manufacturing process. Sales of argon and other similar gases to be used in the manufacturing process are exempt from tax. For the purposes of this rule, only inert gases are gases whichthat are similar to argon. An “inert gas” is any gas whichthat is normally chemically inactive. It will not support combustion and cannot be used as either a fuel or as an oxidizer. Argon, helium, neon, krypton, radon, and xenon are inert gases. Oxygen, hydrogen, and methane are nonexclusive examples of gases whichthat are not inert. These sales are exempt only if the gas is purchased by a “manufacturer,” for use in “processing,” as those terms are defined in referenced 701—subrule 18.58(1)subrules 230.15(3) and 230.15(4). This rule is intended to implement Iowa Code section 423.3(51). ITEM 5. Adopt the following new rule 701—230.14(423):701—230.14(423) Exemption for the sale of computers, machinery, equipment, replacement parts, supplies, and materials used to construct or self-construct computers, machinery, equipment, replacement parts, and supplies used for certain manufacturing purposes if the sale occurs on or after July 1, 2016. Rules 701—230.14(423) to 701—230.20(423) exempt the sales price of computers, machinery, equipment, replacement parts, supplies, and materials used to construct or self-construct computers, machinery, equipment, replacement parts, and supplies when used in an exempt manufacturing purpose. Rule 701—230.21(423) exempts the purchase of fuel used in such computers, machinery, and equipment. Rule 701—230.22(423) exempts the service of designing or installing such machinery and equipment. Rules 701—230.14(423) to 701—230.22(423) apply to sales of such products occurring on or after July 1, 2016. For sales occurring prior to July 1, 2016, see rule 701—18.58(422,423). 230.14(1) Generally. The sales price of computers, machinery, equipment, replacement parts, supplies, and materials used to construct or self-construct computers, machinery, equipment, replacement parts, and supplies is exempt from sales and use tax if the property is any of the following: a. Directly and primarily used in processing by a manufacturer (see rule 701—230.15(423)). b. Directly and primarily used to maintain the integrity of the product or to maintain unique environmental conditions required for either the product or the computers, machinery, and equipment used in processing by a manufacturer, including test equipment used to control quality and specifications of the product (see rule 701—230.16(423)). c. Directly and primarily used in research and development of new products or processes of processing (see rule 701—230.17(423)). d. Computers used in processing or storage of data or information by an insurance company, financial institution, or commercial enterprise (see rule 701—230.18(423)). e. Directly and primarily used in recycling or reprocessing of waste products (see rule 701—230.19(423)). f. Pollution-control equipment used by a manufacturer, including but not limited to that required or certified by an agency of this state or of the United States government (see rule 701—230.20(423)). g. Fuel used in creating heat, power, steam, or for generating electrical current, or from the sale of electricity, consumed by computers, machinery, or equipment used in an exempt manner described in paragraph “a,”“b,”“c,”“e,” or “f” (see rule 701—230.21(423)). 230.14(2) Computers, machinery, equipment, replacement parts, supplies, and materials used to construct or self-construct computers, machinery, equipment, replacement parts, and supplies. a. Computers.“Computer” means stored program processing equipment and all devices fastened to it by means of signal cables or any communication medium that serves the function of a signal cable. Nonexclusive examples of devices fastened by a signal cable or other communication medium are terminals, printers, display units, card readers, tape readers, document sorters, optical readers, and card or tape punchers. Excluded from the definition of “computer” is point-of-sale equipment. For a characterization of “point-of-sale equipment,” see subparagraph 230.14(2)“g”(4). Also included within the meaning of the word “computer” is any software consisting of an operating system or executive program. Such software coordinates, supervises, or monitors the basic operating procedure of a computer. An operating system or executive program is exempt from sales tax under rules 701—230.14(423) to 701—230.20(423) only if purchased as part of the sale of the computer for which it operates. An operating system or executive program priced separately or sold at a later time is subject to the provisions of rule 701—18.34(422,423). Excluded from the meaning of the word “computer” is any software consisting of an application program. For purposes of this paragraph, “operating system or executive program” means a computer program that is fundamental and necessary to the functioning of a computer. The operating system or executive program software controls the operation of a computer by managing the allocation of all system resources, including the central processing unit, main and secondary storage, input/output devices, and the processing of programs. This is in contrast to application software, which is a collection of one or more programs used to develop and implement the specific applications that the computer is to perform and which calls upon the services of the operating system or executive program. b. Machinery.“Machinery” is any mechanical, electrical, or electronic device designed and used to perform some function and to produce a certain effect or result. The term includes not only the basic unit of the machinery, but also any adjunct or attachment necessary for the basic unit to accomplish its intended function. Machinery also includes all devices used or required to control, regulate, or operate a piece of machinery, provided such devices are directly connected with or are an integral part of the machinery and are used primarily for control, regulation, or operation of machinery. Other devices necessary to the operation of or used in conjunction with the operation of what would be ordinarily thought of as machinery are also considered to be machinery. c. Equipment.In general usage, “equipment” refers to devices or tools used to produce a final product or achieve a given result. d. Replacement parts.“Replacement part” means tangible personal property other than computers, machinery, equipment, or supplies, regardless of the cost or useful life of the tangible personal property, that meets all of the following conditions: (1) The tangible personal property replaces a component of a computer, machinery, or equipment, which component is capable of being separated from the computer, machinery, or equipment; (2) The tangible personal property performs the same or similar function as the component it replaced; and (3) The tangible personal property restores the computer, machinery, or equipment to an operational condition, or upgrades or improves the efficiency of the computer, machinery, or equipment. e. Supplies.“Supply” means tangible personal property, other than computers, machinery, equipment, or replacement parts, that meets one of the following conditions: (1) The tangible personal property is to be connected to a computer, machinery, or equipment and requires regular replacement because the item is consumed or deteriorates during use. Such supplies include, but are not limited to, saw blades, drill bits, filters, and other similar items with a short useful life. (2) The tangible personal property is used in conjunction with a computer, machinery, or equipment and is specially designed for use in manufacturing specific products and may be used interchangeably and intermittently on a particular computer, machine, or piece of equipment. Such supplies include, but are not limited to, jigs, dies, tools, and other similar items. (3) The tangible personal property comes into physical contact with other tangible personal property used in processing and is used to assist with or maintain conditions necessary for processing. Such supplies include, but are not limited to, cutting fluids, oils, coolants, lubricants, and other similar items with a short useful life. (4) The tangible personal property is directly and primarily used in an activity described in rules 701—230.14(423) to 701—230.20(423). Such supplies include, but are not limited to, prototype materials and testing materials. f. Materials used to construct or self-construct computers, machinery, equipment, replacement parts, and supplies.“Materials used to construct or self-construct computers, machinery, equipment, replacement parts, and supplies” means tangible personal property that is incorporated into a computer, machinery, equipment, replacement part, or supply when the computer, machinery, equipment, replacement part, or supply is constructed or assembled. g. Exclusions.Sales of the following property, or materials used to construct or self-construct the following property, are not exempt under rules 701—230.14(423) to 701—230.20(423) regardless of how the property is used. (1) Land. (2) Intangible property. (3) Hand tools. “Hand tool” means a tool that can be held in the hand or hands and is powered by human effort. (4) Point-of-sale equipment and computers. “Point-of-sale equipment and computers” means input, output, and processing equipment and computers used to consummate a sale and to record or process information pertaining to a sale transaction at the time the sale takes place and is located at the counter, desk, or other specific point where the transaction occurs. Point-of-sale equipment and computers do not include equipment and computers used primarily for depositing or withdrawing funds from financial institution accounts. (5) Certain centrally assessed industrial machinery, equipment, and computers. Property that is centrally assessed by the department of revenue under Iowa Code sections 428.24 to 428.29 or chapters 433, 434, 437, 437A, 437B, and 438 does not qualify for exemption under rules 701—230.14(423) to 701—230.20(423). Property used but not owned by persons whose property is defined by such provisions of the Iowa Code, which would be assessed by the department of revenue if the persons owned the property, also does not qualify for exemption under rules 701—230.14(423) to 701—230.20(423). (6) Vehicles subject to registration. The general sales and use tax does not apply to vehicles subject to registration under Iowa Code chapter 321. Instead, such vehicles are subject to the fee for new registration under Iowa Code section 321.105A. Vehicles subject to registration are not exempt from the fee for new registration under rules 701—230.14(423) to 701—230.20(423), unless the vehicle is directly and primarily used in recycling or reprocessing of waste products (see rule 701—230.19(423)). h. Examples.When used for an exempt purpose under rules 701—230.14(423) to 701—230.20(423), the following items may be exempt computers, machinery, equipment, replacement parts, or supplies. This list is not all-inclusive. (1) Coolers, including coolers that do not change the nature of materials stored in them. (2) Equipment that eliminates bacteria. (3) Palletizers. (4) Storage bins. (5) Property used to transport raw, semifinished, or finished goods. (6) Vehicle-mounted cement mixers. (7) Self-constructed machinery and equipment. (8) Packaging and bagging equipment, including conveyer systems. (9) Equipment that maintains an environment necessary to preserve a product’s integrity. (10) Equipment that maintains a product’s integrity directly. (11) Quality control equipment. 230.14(3) Leased and rented property. The exemptions under rules 701—230.14(423) to 701—230.22(423) apply to property regardless of how it is sold, including leased or rented property. The lease of computers, machinery, equipment, replacement parts, or supplies may be exempt from sales and use tax if the lessee uses the property in an exempt manner under rules 701—230.14(423) to 701—230.20(423). Additionally, a lessor’s purchase of computers, machinery, equipment, replacement parts, or supplies for lease or resale may be an exempt sale for resale under Iowa Code section 423.3(2). 230.14(4) Record-keeping. To qualify for the exemption, purchasers must be able to prove that computers, machinery, equipment, replacement parts, supplies, and materials used to construct or self-construct the same are used for an exempt purpose under rules 701—230.14(423) to 701—230.20(423). Detailed records should be maintained at or near the time of use to verify that qualifying property is used for an exempt purpose. Computers, machinery, equipment, replacement parts, supplies, and materials used to construct or self-construct the same are not exempt under rules 701—230.14(423) to 701—230.20(423) if the purchaser cannot prove the property is used for an exempt purpose. This rule is intended to implement Iowa Code section 423.3(47) as amended by 2016 Iowa Acts, House File 2433. ITEM 6. Adopt the following new rule 701—230.15(423):701—230.15(423) Exemption for the sale of property directly and primarily used in processing by a manufacturer if the sale occurs on or after July 1, 2016. The sales price of computers, machinery, equipment, replacement parts, supplies, and materials used to construct or self-construct computers, machinery, equipment, replacement parts, and supplies is exempt from sales and use tax when the property is directly and primarily used in processing by a manufacturer. For sales occurring prior to July 1, 2016, see rule 701—18.58(422,423). 230.15(1) Required elements. To qualify for exemption under this rule, the purchaser must prove the property is: a. Computers, machinery, equipment, replacement parts, supplies, or materials used to construct or self-construct computers, machinery, equipment, replacement parts, or supplies (see subrule 230.14(2)); b. Directly used (see subrule 230.15(2)); c. Primarily used (see subrule 230.15(2)); d. Used in processing (see subrule 230.15(3)); and e. Used by a manufacturer (see subrule 230.15(4)). 230.15(2) Directly and primarily used. a. Directly used. (1) Generally. Property is “directly used” only if it is used to initiate, sustain, or terminate an exempt activity. In determining whether any property is “directly used,” consideration should be given to the following factors:- The physical proximity of the property to the exempt activity;
- The temporal proximity of the use of the property to the use of other property that is directly used in the exempt activity; and
- The active causal relationship between the use of the property and the exempt activity. The fact that a particular piece of property may be essential to the conduct of the activity because its use is required either by law or practical necessity does not, of itself, mean that the property is directly used.
- Property used exclusively for the comfort of workers, such as air cooling, air conditioning, or ventilation systems.
- Property used in support operations, such as a machine shop, where production machinery is assembled, maintained, or repaired.
- Property used by administrative, accounting, or personnel departments.
- Property used by security, fire prevention, first aid, or hospital stations.
- Property used in communications or safety.
Pursuant to the authority of Iowa Code sections 256.7(5), 17A.4(3), and 17A.5(2) and 2016 Iowa Acts, House File 2392, section 8, the State Board of Education hereby adopts new Chapter 49, “Individual Career and Academic Plan,” Iowa Administrative Code. These rules establish that each student enrolled in grade eight shall have developed by the school district an individualized career and academic plan and that such a plan shall be reviewed and revised each succeeding year until the graduation of that student. An agencywide waiver provision is provided in 281—Chapter 4. Pursuant to Iowa Code section 17A.4(3), the State Board of Education finds that notice and public participation are unnecessary because this new chapter implements immediately the requirements of 2016 Iowa Acts, House File 2392, division I, which was effective upon enactment and which the school districts need to have implemented by the school year beginning July 1, 2016. In addition, House File 2392, section 8, permits the State Board of Education to adopt emergency rules for this purpose. Pursuant to Iowa Code sections 17A.5(2)“b”(1)(a) and (b) and 2016 Iowa Acts, House File 2392, section 8, the State Board of Education further finds that the normal effective date of the amendment creating this new chapter, 35 days after publication, should be waived and that Chapter 49 should be made effective June 21, 2016. These rules are also published herein under Notice of Intended Action as ARC 2627C to allow for public comment. After analysis and review of this rule making, no impact on jobs has been found. These rules are intended to implement Iowa Code section 279.61 as amended by 2016 Iowa Acts, House File 2392. These rules became effective June 21, 2016. The following amendment is adopted.
ITEM 1. Adopt the following new 281—Chapter 49: CHAPTER 49INDIVIDUAL CAREER AND ACADEMIC PLAN281—49.1(279) Purpose. For the school year beginning July 1, 2016, and each succeeding school year, the board of directors of each school district shall ensure each student in grade 8 develops and, in each succeeding year until graduation, reviews and revises an individualized career and academic plan.281—49.2(279) Definitions. For purposes of this chapter, the following definitions shall apply: "Approved system" means a vendor-provided career information and decision-making system which meets the requirements of rule 281—49.6(279). "Board" means the board of directors of a public school district. "Career cluster" means a nationally recognized framework for organizing and classifying career and technical education programs. "Comprehensive school improvement plan" means the plan required of a school or school district pursuant to Iowa Code section 256.7(21)“a.” "Department" means the Iowa department of education. "Director" means the director of the Iowa department of education. "District plan" means the career guidance plan developed by each school district detailing the delivery of career guidance in compliance with this chapter. "Educational program" means the educational program as defined in rule 281—12.2(256). "Plan" means the individualized career and academic plan established under this chapter which is created by each student of the school district in eighth grade and which, at a minimum, meets the requirements of rule 281—49.3(279). "Postsecondary education and training options" means postsecondary programs and pathways related to career interests, including apprenticeships and on-the-job training; military training; and industry-based certification, licensure, and diploma and degree programs offered by accredited professional colleges, technical and community colleges, and public and private baccalaureate colleges and universities. "School counseling program" means the school counseling program established by Iowa Code section 256.11(9A). "Student" means an enrolled student as defined in rule 281—12.2(256).281—49.3(279) Individualized career and academic plan. 49.3(1) Requirements. The plan shall, at a minimum, achieve all of the following: a. Prepare the student for successful completion of the core curriculum developed by the state board of education pursuant to 281—Chapter 12 by the time the student graduates from high school. b. Identify the student’s postsecondary education and career options and goals. c. Identify the coursework needed in grades 9 through 12 to support the student’s postsecondary education and career options and goals. d. Prepare the student to successfully complete, prior to graduation and following a timeline included in the plan, the essential components prescribed in rule 281—49.4(279). 49.3(2) Progress report. The school district shall report annually to each student enrolled in grades 9 through 12, and, if the student is under the age of 18, to each student’s parent or guardian, the student’s progress toward meeting the goal of successfully completing the core curriculum and high school graduation requirements adopted by the state board of education pursuant to 281—Chapter 12 and toward achieving the goals of the student’s career and academic plan.281—49.4(279) Essential components. The district shall engage each student in activities which support the following essential components of the plan: 49.4(1) Self-understanding. Students shall engage in developmentally appropriate inventories and assessments that promote self-understanding, the connection to work, and engage in meaningful reflective activities about the results. Inventories and assessments may include, but are not limited to, interest inventories; work values assessments; personal values inventories; abilities, strengths, and skills assessments; career cluster assessments; learning styles inventories; and noncognitive skills assessments. 49.4(2) Career information. Students shall research careers based on self-understanding results and engage in meaningful reflection about the findings. Career information shall include, but is not limited to, state and national wage, earning, and employment outlook data for a given occupation; job descriptions, including such information as essential duties, aptitudes, work conditions, and physical demands; and training and education requirements. 49.4(3) Career exploration. Students shall engage in activities that reveal connections among school-based instruction, career clusters, and the world of work and engage in meaningful reflection. Career exploration experiences may be face-to-face or virtual and may include, but are not limited to, job tours, career days or career fairs, and other work-based learning activities. 49.4(4) Postsecondary exploration. Students shall engage in activities to explore relevant postsecondary education and training options related to career interests and engage in meaningful reflection on the exploration experience. Postsecondary exploration activities may be face-to-face or virtual and may include, but are not limited to, site or campus visits; career, employment, or college fairs; and visits with recruiters and representatives of postsecondary education and training options. 49.4(5) Career and postsecondary decision. Students shall complete relevant activities to meet their postsecondary goals consistent with the plan and stated postsecondary intention. Relevant career and postsecondary decision activities may include, but are not limited to, completion of required college or university admission or placement examinations; completion of relevant entrance applications and documents or job applications, résumés, and cover letters; completion of financial aid and scholarship applications; and review and comparison of award letters and completion requirements for different postsecondary options, such as annual financial aid requirements, the role of remedial courses, course-of-study requirements, and the role of the academic advisory.281—49.5(279) District plan. 49.5(1) Components of district plan. The school district shall develop a written career guidance plan. The district plan shall include the following components: a. The district shall, at a minimum, describe the following aspects of the district plan. (1) The activities to be undertaken in each grade level to achieve the requirements of rule 281—49.3(279). (2) Integration of the career guidance plan with the district’s comprehensive school improvement plan and school guidance counseling program. (3) At the district’s discretion, any additional outcomes to be integrated into the career guidance system. b. Designation of team. The superintendent of each school district shall designate a team of education practitioners to carry out the duties assigned to the school district under this rule. The district plan shall include a list, by job position, of the designated district team. (1) Team composition. The team shall include, but not be limited to, a school administrator, a school counselor, teachers, including career and technical education teachers, and individuals responsible for coordinating work-based learning activities. (2) Duties. The team shall be responsible for the following:- Implementation of the district plan.
- Annually reviewing and, as necessary, proposing to the board of directors of the school district revisions to the district plan.
- Coordination of activities which integrate essential components into classroom instruction and other facets of the school district’s educational program.
- Regularly consulting with representatives of employers, state and local workforce systems and centers, higher education institutions, and postsecondary training programs to ensure activities are relevant and align with the labor and workforce needs of the region and state.
Pursuant to the authority of Iowa Code section 272.2(1)“a,” the Board of Educational Examiners hereby amends Chapter 18, “Issuance of Administrator Licenses and Endorsements,” Iowa Administrative Code. These amendments clarify language regarding temporary permits for administrators, adjust the experience requirement for an initial administrator license to mirror the experience requirement for superintendent licensure, correct conflicting language regarding the administrative experience required for superintendents, and strike language setting forth different endorsements and requirements for out-of-state candidates. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2454C on March 16, 2016. A public hearing was held on April 6, 2016, and written comments were accepted until April 8, 2016. No one attended the hearing. The Board received one written comment that opposed the adjustment in the experience requirement for the initial administrator license. As a result, the language regarding the years of teaching and administrative experience required for principals has been adjusted to reflect the Board’s desire to directly mirror the experience requirement for superintendents and to address concerns received through public comment regarding the need for additional experience before a person may become a principal. There is an agencywide waiver provision available in 282—Chapter 6. The Board of Educational Examiners adopted this amendment on June 17, 2016. After analysis and review of this rule making, there is no anticipated impact on jobs. These amendments are intended to implement Iowa Code section 272.2(1)“a.” These amendments will become effective August 24, 2016. The following amendments are adopted.
ITEM 1. Amend rule 282—18.1(272) as follows:282—18.1(272) All applicants desiring an Iowa administrator license. 18.1(1) Administrator licenses. Administrator licenses are issued upon application filed on a form provided by the board of educational examiners and upon completion of the background check requirements set forth in rule 282—13.1(272). 18.1(2) Temporary permits. The executive director may issue a temporary permit to an applicant for any type of license, certification, or authorization issued by the board, after receipt of a fully completed application; determination that the applicant meets all applicable prerequisites for issuance of the license, certification, or authorization; and satisfactory evaluation of the Iowa criminal history background check. The temporary permit shall serve as evidence of the applicant’s authorization to hold a position in Iowa schools, pending the satisfactory completion of the national criminal history background check. The temporary permit shall expire upon issuance of the requested license, certification, or authorization or 90 days from the date of issuance of the permit, whichever occurs first, unless the temporary permit is extended upon a finding of good cause by the executive director.The executive director may issue a temporary permit to an applicant for any type of license, certification, or authorization issued by the board, after receipt of a fully completed application; determination that the applicant meets all applicable prerequisites for issuance of the license, certification, or authorization; and satisfactory evaluation of the Iowa criminal history background check. The temporary permit shall serve as evidence of the applicant’s authorization to hold a position in Iowa schools, pending the satisfactory completion of the national criminal history background check. The temporary permit shall expire upon issuance of the requested license, certification, or authorization or 90 days from the date of issuance of the permit, whichever occurs first, unless the temporary permit is extended upon a finding of good cause by the executive director. ITEM 2. Amend subrule 18.4(4) as follows: 18.4(4) Specific requirements for an initial administrator license for applicants who have completed a professional service endorsement. An initial administrator license valid for one year may be issued to an applicant who: a. Is the holder of an Iowa professional service license; and b. Has three years of experience in an educational setting in the professional service endorsement area or has six years of professional service and administrative experience provided that at least two years are professional service experience; and c. Has completed a state-approved PK-12 principal and PK-12 supervisor of special education program (see subrule 18.9(1)); and d. Is assuming a position as a PK-12 principal and PK-12 supervisor of special education (see subrule 18.9(1)) for the first time or has one year of out-of-state or nonpublic administrative experience; and e. Has completed the required coursework in human relations, cultural competency, diverse learners and reading instruction set forth in 281—subrules 79.15(2) and 79.15(3); and f. Has completed the professional education core in 281—paragraphs 79.15(5)“b” to “k”; and g. Has completed an evaluator approval program. ITEM 3. Amend rule 282—18.8(272) as follows:282—18.8(272) Specific requirements for a Class B license. A nonrenewable Class B license valid for two years may be issued to an individual under the following conditions: 18.8(1) Endorsement in progress. The individual has a valid Iowa teaching license but is seeking to obtain an administrator endorsement. A Class B license may be issued if requested by an employer and the individual seeking this endorsement has completed at least 75 percent of the requirements leading to completion of all requirements for this endorsement. 18.8(2) Experience requirement. a. Principal endorsement.For the principal endorsement, three years of teaching experience must have been met before application for the Class B licensethe applicant must meet the experience requirement set forth in subparagraph 18.9(1)“c”(1). b. Superintendent endorsement.For the superintendent endorsement, three years of teaching experience and three years as a building principal or other PK-12 districtwide or intermediate agency experience are acceptable for becoming a superintendent, and must have been met before application for the Class B licensethe applicant must meet the experience requirement set forth in subrule 18.10(3). 18.8(3) Request for exception. Rescinded IAB 2/23/11, effective 3/30/11. ITEM 4. Amend rule 282—18.9(272) as follows:282—18.9(272) Area and grade levels of administrator endorsements. 18.9(1) PK-12 principal and PK-12 supervisor of special education. a. Authorization.The holder of this endorsement is authorized to serve as a principal of programs serving children from birth through grade twelve, a supervisor of instructional special education programs for children from birth to the age of 21, and a supervisor of support for special education programs for children from birth to the age of 21 (and to a maximum allowable age in accordance with Iowa Code section 256B.8). b. Program requirements. (1) Degree—master’s. (2) Content: Completion of a sequence of courses and experiences which may have been a part of, or in addition to, the degree requirements.- Knowledge of early childhood, elementary, early adolescent and secondary level administration, supervision, and evaluation.
- Knowledge and skill related to early childhood, elementary, early adolescent and secondary level curriculum development.
- Knowledge of child growth and development from birth through adolescence and developmentally appropriate strategies and practices of early childhood, elementary, and adolescence, to include an observation practicum.
- Knowledge of family support systems, factors which place families at risk, child care issues, and home-school community relationships and interactions designed to promote parent education, family involvement, and interagency collaboration.
- Knowledge of school law and legislative and public policy issues affecting children and families.
- Completion of evaluator training component.
- Knowledge of current issues in special education administration.
- Planned field experiences in elementary and secondary school administration, including special education administration.
- Competencies: Completion of a sequence of courses and experiences which may have been a part of, or in addition to, the degree requirements. A school administrator is an educational leader who promotes the success of all students by accomplishing the following competencies. • Facilitates the development, articulation, implementation, and stewardship of a vision of learning that is shared and supported by the school community. • Advocates, nurtures, and sustains a school culture and instructional program conducive to student learning and staff professional growth. • Ensures management of the organization, operations, and resources for a safe, efficient, and effective learning environment. • Collaborates with families and community members, responds to diverse community interests and needs, and mobilizes community resources. • Acts with integrity, fairness, and in an ethical manner. • Understands, responds to, and influences the larger political, social, economic, legal, and cultural context.
- Knowledge of early childhood, elementary, and early adolescent level administration, supervision, and evaluation.
- Knowledge and skill related to early childhood, elementary, and early adolescent level curriculum development.
- Knowledge of child growth and development from birth through early adolescence and developmentally appropriate strategies and practices of early childhood, elementary, and early adolescence, to include an observation practicum.
- Knowledge of family support systems, factors which place families at risk, child care issues, and home-school community relationships and interactions designed to promote parent education, family involvement, and interagency collaboration.
- Knowledge of school law and legislative and public policy issues affecting children and families.
- Planned field experiences in early childhood and elementary or early adolescent school administration.
- Completion of evaluator training component.
- Competencies: Completion of a sequence of courses and experiences which may have been a part of, or in addition to, the degree requirements. A school administrator is an educational leader who promotes the success of all students by accomplishing the following competencies. • Facilitates the development, articulation, implementation, and stewardship of a vision of learning that is shared and supported by the school community. • Advocates, nurtures, and sustains a school culture and instructional program conducive to student learning and staff professional growth. • Ensures management of the organization, operations, and resources for a safe, efficient, and effective learning environment. • Collaborates with families and community members, responds to diverse community interests and needs, and mobilizes community resources. • Acts with integrity, fairness, and in an ethical manner. • Understands, responds to, and influences the larger political, social, economic, legal, and cultural context.
- Knowledge of early adolescent and secondary level administration, supervision, and evaluation.
- Knowledge and skill related to early adolescent and secondary level curriculum development.
- Knowledge of human growth and development from early adolescence through early adulthood, to include an observation practicum.
- Knowledge of family support systems, factors which place families at risk, and home-school community relationships and interactions designed to promote parent education, family involvement, and interagency collaboration.
- Knowledge of school law and legislative and public policy issues affecting children and families.
- Planned field experiences in early adolescence or secondary school administration.
- Completion of evaluator training component.
- Competencies: Completion of a sequence of courses and experiences which may have been a part of, or in addition to, the degree requirements. A school administrator is an educational leader who promotes the success of all students by accomplishing the following competencies. • Facilitates the development, articulation, implementation, and stewardship of a vision of learning that is shared and supported by the school community. • Advocates, nurtures, and sustains a school culture and instructional program conducive to student learning and staff professional growth. • Ensures management of the organization, operations, and resources for a safe, efficient, and effective learning environment. • Collaborates with families and community members, responds to diverse community interests and needs, and mobilizes community resources. • Acts with integrity, fairness, and in an ethical manner. • Understands, responds to, and influences the larger political, social, economic, legal, and cultural context.
Pursuant to the authority of Iowa Code section 256.52, the Commission of Libraries hereby amends Chapter 1, “Organization and Operation,” Iowa Administrative Code. These amendments are intended to provide updates to the Division’s administrative rules. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2510C on April 27, 2016. No public comments were received on this rule making. These amendments are identical to those published under Notice of Intended Action. These amendments are subject to waiver pursuant to 286—Chapter 10. After analysis and review of this rule making, there is no anticipated impact on jobs. These amendments are intended to implement Iowa Code section 256.51. These amendments will become effective August 24, 2016. The following amendments are adopted.
ITEM 1. Amend rule 286—1.3(256) as follows:286—1.3(256) Organization and operation. 1.3(1) Location. The state library is located at East 12th Street and1112 East Grand Avenue, Des Moines, Iowa 50319; telephone (515)281-4105; fax (515)281-6191. Business hours are 8 a.m. to 4:30 p.m., Monday through Friday, excepting legal holidays. 1.3(2) Units. The state library consists of sevenfour units: library development (includes the LSTA Grant Program, public library accreditation, library staff certification, Open Access, Access Plus,Enrich Iowa, continuing education and consulting); information services (includes public policy, the state medical, federal documents, state documents, and patents depositorythe state documents depository program, special collections, the state law library, and technical services); the state law library; technical services (includes the state documents depository program); the state data center; audiovisual services; and administration. 1.3(3) Commission of libraries. The commission of libraries consists of eightnine members as defined in Iowa Code section 256.52. The commission shall meet at a time and place specified by the chair. Notice of a meeting and the agenda will be posted at the state library at least 24 hours prior to the meeting and shall be mailed to any interested individual or organization upon request. The operation of commission meetings shall be governed by the following procedures: a. A quorum shall consist of five members. b. Any action taken by the commission requires an affirmative vote by at least five members. c. Persons wishing to appear before the commission shall submit a written request to the state librarian not less than 14 days prior to a meeting. Presentations shall be allowed at the discretion of the chair. Persons wishing to submit written material shall do so at least 14 days prior to a meeting so that commission members have adequate time to receive and evaluate the material. d. Near the conclusion of each meeting, the chair shall set the date, time and location of the next meeting. 1.3(4) Minutes. Minutes of commission meetings are available for inspection at the state librarian’s office during regular business hours. Copies of minutes are available upon request at no charge, allowing for reasonable transcription time.Current and archived minutes of commission meetings can be viewed and copied free of charge at the state library. The current and archived minutes are also accessible on the state library’s Web site. ITEM 2. Adopt the following new subrule 1.3(5): 1.3(5) Library services advisory panel. The library services advisory panel consists of no fewer than 11 members as defined in Iowa Code section 256.62. The advisory panel shall meet at a time and place specified by the chair. Notice of a meeting and the agenda will be posted at the state library at least 24 hours prior to the meeting and shall be made available to any interested individual or organization upon request. ITEM 3. Amend rule 286—1.4(256) as follows:286—1.4(256) Information delivery. 1.4(1) Photocopies of library materials for Iowa residents. The state library will provide library service to any resident of Iowa. To ensure the availability of high-demand library materials for in-house use, the state library may choose not to lend specific library items. In lieu of lending the original item, the library may choose to provide a photocopy of the requested material at a nominal charge of 20 cents per page. Materials may be faxed at a cost of $2 for the first page and $1 for each additional page including the cover sheet. Priority delivery services may also be requested by the borrower at additional expense. 1.4(2) Photocopies of library materials for nonresidents of Iowa. To encourage interstate resource sharing, the state library may enter into reciprocal free interlibrary loan photocopy agreements with out-of-state libraries. For other out-of-state businesses and residents, the state library will charge the following fees:a $15 handling fee plus 20 cents per page.First 10 pages $7 minimum11-20 921-30 1031-50 12Over 50 12 plus 20¢ per pageMaterials may be faxed (no more than 20 pages) at a cost of $2 for the first page and $1 for each additional page including the cover sheet.Priority delivery services may also be requested by the borrower at additional cost to the borrower.This rule shall not preclude the state library from participating in interstate library compacts to support reciprocal resource sharing. ITEM 4. Amend rule 286—1.5(256) as follows:286—1.5(256) Access to library’s collections. 1.5(1) The state library’s materials collections are housed in the HistoricalOla Babcock Miller State Office Building, East 12th Street and1112 East Grand Avenue, Des Moines, and in the State Capitol Building. Both buildings are listed on the National Register of Historic Places under the National Historic Preservation Act and are accessible to the disabled. 1.5(2) Primary research and study areas of the library’s two locations are accessible to the disabled; however, upper tiers are generally closed to all public access. Staff may authorize access on a case-by-case basis or will retrieve materials requested by library users. ITEM 5. Amend rule 286—1.6(256) as follows:286—1.6(256) Collection policy of the library. PurposeThe purpose of this policy is to define the intended coverage and clientele; establish collection management and selection policies; provide staff with the means to ensure consistency, responsiveness, and wise use of funds in collection building; assist in development of performance measures; establish priorities to guide budget allocations and cataloging and preservation decisions; and document the library’s commitment to intellectual freedom.See: Collection Policy. State Library of Iowa, May 28, 1993April 2016. ITEM 6. Amend subrule 1.7(5) as follows: 1.7(5) Procedure. a. The appropriate unit supervisor shall recommend and justify in writing to the state librarian those materials to be deaccessioned. b. The state librarian shall approve or disapprove those recommendations from the unit supervisor. c. The method for disposition of the deaccessioned materials, including sales, donation or destruction, shall be decided by the state librarian. [Filed 6/23/16, effective 8/24/16][Published 7/20/16]Editor’s Note: For replacement pages for IAC, see IAC Supplement 7/20/16.ARC 2623CLibraries and Information Services Division[286]Adopted and FiledPursuant to the authority of Iowa Code section 256.52, the Commission of Libraries hereby amends Chapter 2, “Public Records and Fair Information Practices,” Iowa Administrative Code. The purpose of this amendment is to update the address of the State Library. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2511C on April 27, 2016. No public comments were received on this rule making. This amendment is identical to that published under Notice of Intended Action. This amendment is subject to waiver pursuant to 286—Chapter 10. After analysis and review of this rule making, there is no anticipated impact on jobs. This amendment is intended to implement Iowa Code section 256.51. This amendment will become effective August 24, 2016. The following amendment is adopted.
ITEM 1. Amend subrule 2.3(1) as follows: 2.3(1) Location of record. In lieu of the words “(insert agency head)”, insert “state librarian”. Also in lieu of the words “(insert agency name and address)”, insert “State Librarian, State Library of Iowa,1112 East 12th Street and Grand Avenue, Des Moines, Iowa 50319”. [Filed 6/23/16, effective 8/24/16][Published 7/20/16]Editor’s Note: For replacement pages for IAC, see IAC Supplement 7/20/16.ARC 2626CLibraries and Information Services Division[286]Adopted and FiledPursuant to the authority of Iowa Code section 256.52, the Commission of Libraries hereby rescinds Chapter 4, “ICN Classroom Policy,” Iowa Administrative Code. Chapter 4 is rescinded because the State Library no longer has an ICN classroom available for use. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2515C on April 27, 2016. No public comments were received on this rule making. This amendment is identical to that published under Notice of Intended Action. After analysis and review of this rule making, there is no anticipated impact on jobs. This amendment is intended to implement Iowa Code section 256.51. This amendment will become effective August 24, 2016. The following amendment is adopted.
ITEM 1. Rescind and reserve 286—Chapter 4. [Filed 6/23/16, effective 8/24/16][Published 7/20/16]Editor’s Note: For replacement pages for IAC, see IAC Supplement 7/20/16.ARC 2625CLibraries and Information Services Division[286]Adopted and FiledPursuant to the authority of Iowa Code section 256.52, the Commission of Libraries hereby amends Chapter 7, “Internet Use Policy,” Iowa Administrative Code. These amendments are intended to bring the Libraries and Information Services Division into compliance with the Children’s Internet Protection Act (Pub. L. No. 106-554 and 47 USC 254(h)) and provide updates to the Division’s administrative rules. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2514C on April 27, 2016. No public comments were received on this rule making. These amendments are identical to those published under Notice of Intended Action. These amendments are subject to waiver pursuant to 286—Chapter 10. After analysis and review of this rule making, there is no anticipated impact on jobs. These amendments are intended to implement Iowa Code section 256.51. These amendments will become effective August 24, 2016. The following amendments are adopted.
ITEM 1. Amend rule 286—7.1(256) as follows:286—7.1(256) Rights and responsibilities. 7.1(1) The state library expects the use of all its electronic sources such as the Internet to be responsible, ethical, and legal, and consistent with the purpose for which those resources are provided.The state library complies with the Children’s Internet Protection Act (Pub. L. No. 106-554 and 47 USC 254(h)). To this end: a. The state library affirms the right of every individual to have access to constitutionally protected material as stated in the library’s collection development policy. b. Parents or guardians, not the library or its staff, are responsible for the Internet use by their children. c. Internet access is provided in a public area shared by users of all ages, backgrounds, and sensibilities. Users should consider this when accessing potentially controversial information and images. d. The state library reserves the right to ask users to discontinue the display of information and images which cause a disruption. e. Users should respect the privacy of other Internet users by not observing what sites others are accessing. f. Users will not misrepresent themselves as any other user; will not attempt to modify or gain access to files, passwords, or data belonging to others; will not seek unauthorized access to any computer system, or; and will not damage or alter software components of any network or database. g. Illegal activities subject to prosecution include: (1) Destruction of or damage to equipment, software, or data belonging to the library; (2) Violation of computer system security or system configuration; (3) Violation of the copyright laws of the United States; (4) Downloading or provision of child pornography or display of pornography where it may be seen by children. h. To the extent practical, steps shall be taken to promote the safety and security of users of the Internet when they are using electronic mail, chat rooms, instant messaging and other forms of direct electronic communications. i. Safety and security of minors. (1) Prevention of inappropriate network usage.- Technology measures shall be used to prevent unauthorized access and other unlawful activities.
- Technology measures shall be used to prevent unauthorized disclosure, use, and dissemination of personal identification information.
- Technology protection measures, i.e., Internet filters, shall be used to block or filter access to inappropriate material on the Internet.
- Blocking shall be applied to visual depictions of material deemed obscene, to child pornography, or to any material deemed harmful to minors.
- Technology protection measures may be disabled by library staff for adults or, in the case of minors, minimized for bona fide research or other lawful purposes.
- Users are expected to have a basic knowledge of computer use and the Internet. Staff cannot provide in-depth training for users, but will provide information on training classes in the area. An online tutorial will be available for users not familiar with the Internet.
Pursuant to the authority of Iowa Code section 256.52, the Commission of Libraries hereby rescinds Chapter 8, “Iowa Regional Library System,” and Chapter 9, “Appointment Process for Library Service Area Boards of Trustees,” Iowa Administrative Code. Chapters 8 and 9 are being rescinded because Iowa Code sections 256.60 and 256.61, which the chapters implement, have been repealed. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2513C on April 27, 2016. No public comments were received on this rule making. This amendment is identical to that published under Notice of Intended Action. After analysis and review of this rule making, there is no anticipated impact on jobs. This amendment is intended to implement 2011 Iowa Acts, chapter 132, section 66. This amendment will become effective August 24, 2016. The following amendment is adopted.
ITEM 1. Rescind and reserve 286—Chapter 8 and 286—Chapter 9. [Filed 6/23/16, effective 8/24/16][Published 7/20/16]Editor’s Note: For replacement pages for IAC, see IAC Supplement 7/20/16.ARC 2632CRevenue Department[701]Adopted and FiledPursuant to the authority of Iowa Code section 422.68, the Department of Revenue hereby amends Chapter 42, “Adjustments to Computed Tax and Tax Credits,” Chapter 52, “Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits,” and Chapter 58, “Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits,” Iowa Administrative Code. These amendments update the rules on tax credits for investments in qualifying businesses and community-based seed capital funds, also known as the “Angel Investor Tax Credit Program.” These amendments are necessary to implement 2015 Iowa Acts, chapter 138, and to restructure existing language to provide clarity. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2547C on May 25, 2016. No public comments were received on this rule making. These amendments are identical to those published under Notice of Intended Action. 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 of Revenue adopted these amendments on June 29, 2016. After analysis and review of this rule making, no impact on jobs has been found. These amendments are intended to implement Iowa Code sections 15E.41 to 15E.46, 422.11F, 422.33, and 422.60. These amendments will become effective August 24, 2016. The following amendments are adopted.
ITEM 1. Amend subrule 42.22(1) as follows: 42.22(1) Investment tax credit for an equity investment in a qualifying business or community-based seed capital fund. a. Equity investments in a qualifying business or community-based seed capital fund before January 1, 2011.See rule 123—2.1(15E) for the discussion of the investment tax credit for an equity investment in a qualifying business or community-based seed capital fund, along with the issuance of tax credit certificates by the Iowa capital investment board, for equity investments made before January 1, 2011.For equity investments made in a qualifying business prior to January 1, 2004, only direct investments made by an individual are eligible for the investment tax credit. Individuals receiving income from a revocable trust’s investment in a qualifying business are eligible for the investment tax credit for the portion of the revocable trust’s equity investment in a qualifying business. b. Equity investments in a qualifying business or community-based seed capital fund on or after January 1, 2011, and before July 2, 2015.For equity investments made on or after January 1, 2011, see 261—Chapter 115 for information regarding eligibility for qualifying businesses and community-based seed capital funds, applications for the investment tax credit for equity investments in a qualifying business or community-based seed capital fund, and the issuance of tax credit certificates by the economic development authority. (1) Certificate issuance.The department of revenue will be notified by the Iowa capital investment board or the economic development authority when the tax credit certificates are issued. (2) Amount of the tax credit.The credit is equal to 20 percent of the taxpayer’s equity investment in a qualifying business or community-based seed capital fund. (3) Year in which the tax credit may be claimed.An investment shall be deemed to have been made on the same date as the date of acquisition of the equity interest as determined by the Internal Revenue Code. For investments made prior to January 1, 2014, a taxpayer shall not claim the tax credit prior to the third tax year following the tax year in which the investment is made. For investments made in qualifying businesses on or after January 1, 2014, the credit can be claimed in the year of the investment. However, for investments made in qualifying businesses during the 2014 calendar year, the credit cannot be redeemed prior to January 1, 2016. For example, if an individual taxpayer whose tax year ends on December 31, 2012, makes an equity investment during the 2012 calendar year, the individual taxpayer cannot claim the tax credit until the tax year ending December 31, 2015. However, if the taxpayer dies prior to redeeming the tax credit, the remaining tax credit may be redeemed on the decedent’s final income tax return. For fiscal years beginning July 1, 2011, the amount of tax credits authorized cannot exceed $2 million. The tax credit certificate must be included with the taxpayer’s return for the tax year in which the credit may be redeemed as stated on the tax credit certificate. (4) Carried over tax credits.If a tax credit is carried over and issued for the tax year immediately following the year in which the investment was made because the $2 million cap has been reached, the tax credit may be claimed by the taxpayer for the third tax year following the tax year for which the credit is issued. For example, if an individual taxpayer makes an equity investment in December 2012 and the $2 million cap for the fiscal year ending June 30, 2013, had already been reached, the tax credit will be issued for the tax year ending December 31, 2013, and cannot be redeemed until the tax year ending December 31, 2016. (5) Limitations.Any credit in excess of the tax liability for the tax year may be credited to the tax liability for the following five years or until used, whichever is the earlier. The tax credit cannot be carried back to a tax year prior to the tax year in which the taxpayer claims the tax credit. The tax credit is not transferable to any other taxpayer. (6) Pro rata tax credit claims for certain business entities.For equity investments made in a community-based seed capital fund or equity investments made in a qualifying business on or after January 1, 2004, an individual may claim the credit if the investment was made by a partnership, S corporation, limited liability company, or an estate or trust electing to have the income directly taxed to the individual. The amount claimed by an individual must be based on the individual’s pro rata share of the individual’s earnings of the partnership, S corporation, limited liability company, or estate or trust.For equity investments made in a qualifying business prior to January 1, 2004, only direct investments made by an individual are eligible for the investment tax credit. Individuals receiving income from a revocable trust’s investment in a qualifying business are eligible for the investment tax credit for the portion of the revocable trust’s equity investment in a qualifying business. c. Equity investments in a qualifying business on or after July 2, 2015.For equity investments made on or after July 2, 2015, see 261—Chapter 115 for information regarding eligibility for qualifying businesses, applications for the investment tax credit for equity investments in a qualifying business, and the issuance of tax credit certificates by the economic development authority. (1) Certificate issuance. The department of revenue will be notified by the economic development authority when the tax credit certificates are issued. (2) Amount of the tax credit. For fiscal years beginning July 1, 2011, the amount of the tax credits authorized cannot exceed $2 million. The credit is equal to 25 percent of the taxpayer’s equity investment in a qualifying business. In any one calendar year, the amount of tax credits issued for any one qualifying business shall not exceed $500,000. The maximum amount of tax credit that may be issued per calendar year to a natural person and the person’s spouse or dependent shall not exceed $100,000 combined. For purposes of this paragraph, “dependent” has the same meaning as provided by the Internal Revenue Code. (3) Year in which the tax credit may be claimed. A taxpayer shall not claim a tax credit prior to September 1, 2016. The tax credit certificate must be included with the taxpayer’s return for the tax year in which the credit may be redeemed as stated on the tax credit certificate. For purposes of this paragraph, an investment shall be deemed to have been made on the same date as the date of acquisition of the equity interest as determined by the Internal Revenue Code. (4) Pro rata tax credit claims for certain business entities. An individual may claim the credit if the investment was made by a partnership, S corporation, limited liability company, or an estate or trust electing to have the income directly taxed to the individual. The amount claimed by an individual must be based on the individual’s pro rata share of the individual’s earnings of the partnership, S corporation, limited liability company, or estate or trust. Any credits claimed by an individual are subject to the limitations provided in 42.22(1)“c”(2) above. (5) Refundability. For a tax credit claimed against the taxes imposed in Iowa Code chapter 422, division II, any tax credit in excess of the tax liability is refundable. In lieu of claiming a refund, the taxpayer may elect to have the overpayment shown on the taxpayer’s final completed return credited to the tax liability for the following tax year. (6) Transfers and carryback of tax credits prohibited. The tax credit cannot be carried back to a tax year prior to the tax year in which the taxpayer claims the tax credit. The tax credit is not transferable to any other taxpayer. ITEM 2. Amend rule 701—42.22(15E,422), implementation sentence, as follows: This rule is intended to implement Iowa Code sections 15E.51, 15E.52, 15E.66, 422.11F, and 422.11G and section 15E.43 as amended by 20142015 Iowa Acts, Senate File 2359chapter 138. ITEM 3. Amend subrule 52.21(1) as follows: 52.21(1) Investment tax credit for an equity investment in a community-based seed capital fund or qualifying business. a. Equity investments in a qualifying business or community-based seed capital fund before January 1, 2011.See rule 123—2.1(15E) for the discussion of the investment tax credit for an equity investment in a community-based seed capital fund or an equity investment made on or after January 1, 2004, in a qualifying business, along with the issuance of tax credit certificates by the Iowa capital investment board, for equity investments made before January 1, 2011. b. Equity investments in a qualifying business or community-based seed capital fund on or after January 1, 2011, and before July 2, 2015.For equity investments made on or after January 1, 2011, see 261—Chapter 115 for information regarding eligibility for qualifying businesses and community-based seed capital funds, applications for the investment tax credit for equity investments in a qualifying business or community-based seed capital fund, and the issuance of tax credit certificates by the economic development authority. (1) Certificate issuance.The department of revenue will be notified by the Iowa capital investment board or the economic development authority when the tax credit certificates are issued. (2) Amount of the tax credit.The credit is equal to 20 percent of the taxpayer’s equity investment in a qualifying business or community-based seed capital fund. (3) Year in which the tax credit may be claimed.An investment shall be deemed to have been made on the same date as the date of acquisition of the equity interest as determined by the Internal Revenue Code. For investments made prior to January 1, 2014, a taxpayer shall not claim the tax credit prior to the third tax year following the tax year in which the investment is made. For investments made in qualifying businesses on or after January 1, 2014, the credit can be claimed in the year of the investment, but these investments cannot be redeemed prior to January 1, 2016. For example, if a corporation taxpayer whose tax year ends on December 31, 2012, makes an equity investment during the 2012 calendar year, the corporation taxpayer cannot claim the tax credit until the tax year ending December 31, 2015. For fiscal years beginning July 1, 2011, the amount of tax credits authorized cannot exceed $2 million. The tax credit certificate must be included with the taxpayer’s return for the tax year in which the credit may be redeemed as stated on the tax credit certificate. (4) Carried over tax credits.If a tax credit is carried over and issued for the tax year immediately following the year in which the investment was made because the $2 million cap has been reached, the tax credit may be claimed by the taxpayer for the third tax year following the tax year for which the credit is issued. For example, if a corporation taxpayer whose tax year ends on December 31, 2012, makes an equity investment in December 2012 and the $2 million cap for the fiscal year ending June 30, 2013, had already been reached, the tax credit will be issued for the tax year ending December 31, 2013, and cannot be redeemed until the tax year ending December 31, 2016. (5) Limitations.Any credit in excess of the tax liability for the tax year may be credited to the tax liability for the following five years or until used, whichever is the earlier. The tax credit cannot be carried back to a tax year prior to the tax year in which the taxpayer claims the tax credit. The tax credit is not transferable to any other taxpayer. (6) Pro rata tax credit claims for certain business entities.For equity investments made in a community-based seed capital fund and equity investments made on or after January 1, 2004, in a qualifying business, an individual may claim the credit if the investment was made by a partnership, S corporation, limited liability company, or an estate or trust electing to have the income directly taxed to the individual. The amount claimed by an individual must be based on the individual’s pro rata share of the individual’s earnings of the partnership, S corporation, limited liability company, or estate or trust. c. Equity investments in a qualifying business on or after July 2, 2015. For equity investments made on or after July 2, 2015, see 261—Chapter 115 for information regarding eligibility for qualifying businesses, applications for the investment tax credit for equity investments in a qualifying business, and the issuance of tax credit certificates by the economic development authority. (1) Certificate issuance. The department of revenue will be notified by the economic development authority when the tax credit certificates are issued. (2) Amount of the tax credit. For fiscal years beginning July 1, 2011, the amount of the tax credits authorized cannot exceed $2 million. The credit is equal to 25 percent of the taxpayer’s equity investment in a qualifying business. In any one calendar year, the amount of tax credits issued for any one qualifying business shall not exceed $500,000. For purposes of this paragraph, a tax credit issued to a partnership, limited liability company, S corporation, estate or trust electing to have income taxed directly to the individual shall be deemed to be issued to the individual owners based upon a pro rata share of the individual’s earnings from the entity. (3) Year in which the credit may be claimed. A taxpayer shall not claim a tax credit prior to September 1, 2016. The tax credit certificate must be included with the taxpayer’s return for the tax year in which the credit may be redeemed as stated on the tax credit certificate. For the purposes of this paragraph, an investment shall be deemed to have been made on the same date as the date of acquisition of the equity interest as determined by the Internal Revenue Code. (4) Pro rata tax credit claims for certain business entities. An individual may claim the credit if the investment was made by a partnership, S corporation, limited liability company, or an estate or trust electing to have the income directly taxed to the individual. The amount claimed by an individual must be based on the individual’s pro rata share of the individual’s earnings of the partnership, S corporation, limited liability company, or estate or trust. Any credits claimed by an individual are subject to the limitations provided in 701—paragraph 42.22(1)“c.” (5) Carryforward period. For a tax credit claimed against the taxes imposed in Iowa Code chapter 422, division III, any tax credit in excess of the taxpayer’s liability for the tax year may be credited to the tax liability for the following three years or until depleted, whichever is earlier. (6) Refunds, transfers, and carryback prohibited. The tax credit cannot be carried back to a tax year prior to the tax year in which the taxpayer claims the tax credit. The tax credit is not refundable and is not transferable to any other taxpayer. ITEM 4. Amend rule 701—52.21(15E,422), implementation sentence, as follows: This rule is intended to implement Iowa Code sections 15E.42, 15E.52, 15E.66 and 422.33 and section 15E.43 as amended by 20142015 Iowa Acts, Senate File 2359chapter 138. ITEM 5. Amend subrule 58.11(1) as follows: 58.11(1) Investment tax credit for an equity investment in a community-based seed capital fund or qualifying business. a. Equity investments in a qualifying business or community-based seed capital fund before January 1, 2011.See rule 123—2.1(15E) for the discussion of the investment tax credit for an equity investment in a community-based seed capital fund or an equity investment made on or after January 1, 2004, in a qualifying business, along with the issuance of tax credit certificates by the Iowa capital investment board, for equity investments made before January 1, 2011. b. Equity investments in a qualifying business or community-based seed capital fund on or after January 1, 2011, and before July 2, 2015.For equity investments made on or after January 1, 2011, see 261—Chapter 115 for information regarding eligibility for qualifying businesses and community-based seed capital funds, applications for the investment tax credit for equity investments in a qualifying business or community-based seed capital fund, and the issuance of tax credit certificates by the economic development authority. (1) Certificate issuance.The department of revenue will be notified by the Iowa capital investment board or the economic development authority when the tax credit certificates are issued. (2) Amount of the tax credit.The credit is equal to 20 percent of the taxpayer’s equity investment in a qualifying business or community-based seed capital fund. (3) Year in which the tax credit may be claimed.An investment shall be deemed to have been made on the same date as the date of acquisition of the equity interest as determined by the Internal Revenue Code. For investments made prior to January 1, 2014, a taxpayer shall not claim the tax credit prior to the third tax year following the tax year in which the investment is made. For investments made in qualifying businesses on or after January 1, 2014, the credit can be claimed in the year of the investment, but these investments cannot be redeemed prior to January 1, 2016. For example, if a franchise taxpayer whose tax year ends on December 31, 2012, makes an equity investment during the 2012 calendar year, the franchise taxpayer cannot claim the tax credit until the tax year ending December 31, 2015. For fiscal years beginning July 1, 2011, the amount of tax credits authorized cannot exceed $2 million. The tax credit certificate must be included with the taxpayer’s return for the tax year in which the credit may be redeemed as stated on the tax credit certificate. (4) Carried over tax credits.If a tax credit is carried over and issued for the tax year immediately following the year in which the investment was made because the $2 million cap has been reached, the tax credit may be claimed by the taxpayer for the third tax year following the tax year for which the credit is issued. For example, if a franchise taxpayer whose tax year ends on December 31, 2012, makes an equity investment in December 2012 and the $2 million cap for the fiscal year ending June 30, 2013, had already been reached, the tax credit will be issued for the tax year ending December 31, 2013, and cannot be redeemed until the tax year ending December 31, 2016. (5) Limitations.Any credit in excess of the tax liability for the tax year may be credited to the tax liability for the following five years or until used, whichever is the earlier. The tax credit cannot be carried back to a tax year prior to the tax year in which the taxpayer claims the tax credit. The tax credit is not transferable to any other taxpayer. (6) Pro rata tax credit claims for certain business entities.For equity investments made in a community-based seed capital fund and equity investments made on or after January 1, 2004, in a qualifying business, an individual may claim the credit if the investment was made by a partnership, S corporation, limited liability company, or an estate or trust electing to have the income directly taxed to the individual. The amount claimed by an individual must be based on the individual’s pro rata share of the individual’s earnings of the partnership, S corporation, limited liability company, or estate or trust. c. Equity investments in a qualifying business on or after July 2, 2015.For equity investments made on or after July 2, 2015, see 261—Chapter 115 for information regarding eligibility for qualifying businesses, applications for the investment tax credit for equity investments in a qualifying business, and the issuance of tax credit certificates by the economic development authority. (1) Certificate issuance. The department of revenue will be notified by the economic development authority when the tax credit certificates are issued. (2) Amount of the tax credit. For fiscal years beginning July 1, 2011, the amount of the tax credits authorized cannot exceed $2 million. The credit is equal to 25 percent of the taxpayer’s equity investment in a qualifying business. In any one calendar year, the amount of tax credits issued for any one qualifying business shall not exceed $500,000. (3) Year in which the credit may be claimed. A taxpayer shall not claim a tax credit prior to September 1, 2016. The tax credit certificate must be included with the taxpayer’s return for the tax year in which the credit may be redeemed as stated on the tax credit certificate. For the purposes of this paragraph, an investment shall be deemed to have been made on the same date as the date of acquisition of the equity interest as determined by the Internal Revenue Code. (4) Pro rata tax credit claims for certain business entities. An individual may claim the credit if the investment was made by a partnership, S corporation, limited liability company, or an estate or trust electing to have the income directly taxed to the individual. The amount claimed by an individual must be based on the individual’s pro rata share of the individual’s earnings of the partnership, S corporation, limited liability company, or estate or trust. Any credits claimed by an individual are subject to the limitations provided in 701—paragraph 42.22(1)“c.” (5) Carryforward period. For a tax credit claimed against the taxes imposed in Iowa Code chapter 422, division V, any tax credit in excess of the taxpayer’s liability for the tax year may be credited to the tax liability for the following three years or until depleted, whichever is earlier. (6) Refunds, transfers, and carryback prohibited. The tax credit cannot be carried back to a tax year prior to the tax year in which the taxpayer claims the tax credit. The tax credit is not refundable and is not transferable to any other taxpayer. ITEM 6. Amend rule 701—58.11(15E,422), implementation sentence, as follows: This rule is intended to implement Iowa Code sections 15E.42, 15E.66 and 422.60 and section 15E.43 as amended by 20142015 Iowa Acts, Senate File 2359chapter 138. [Filed 6/29/16, effective 8/24/16][Published 7/20/16]Editor’s Note: For replacement pages for IAC, see IAC Supplement 7/20/16.ARC 2633CRevenue Department[701]Adopted and FiledPursuant to the authority of Iowa Code section 421.14, the Department of Revenue hereby amends Chapter 86, “Inheritance Tax,” Iowa Administrative Code. These amendments are necessary to implement 2015 Iowa Acts, chapter 125, which simplified the language of Iowa Code section 450.9, specified that descendants by adoption are included in the meaning of “lineal descendants” for the purposes of that section, and added lineal descendants of stepchildren to the list of people entitled to the exemption from inheritance tax. The Department hereby amends its rules relating to inheritance taxes in order to reflect those changes. Where references in the rules mirror the prior language of Iowa Code section 450.9, the amendments reflect the new language of that section instead. References that exclude lineal descendants of stepchildren from the exemption are amended, and, where appropriate, explanations are added as to which ascendants and descendants do, and which do not, qualify for the exemption under the new language of the Iowa Code. Some examples in the rules are amended to maintain consistency with the new language of the Iowa Code. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2546C on May 25, 2016. No public comments were received in relation to this rule making. After the Notice was published, a Department of Revenue employee noticed an error unrelated to the legislation that these amendments were intended to implement in Schedule E in paragraph 86.2(2)“d.” Schedule E states that the tax described in that schedule is imposed on amounts over $500. Iowa Code section 450.10(3) clearly imposes the tax described in Schedule E on the “entire amount so passing.” There is no exemption or other provision in the current Iowa Code that would explain this $500 exemption described in Schedule E. Thus, the phrase “the rate of tax imposed in excess of $500” is stricken from Schedule E in paragraph 86.2(2)“d” to correct this error and conform the rules to the Iowa Code. These amendments are otherwise identical to those published under Notice of Intended Action. Any person who believes that the application of the discretionary provisions of these rules would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A). The Department of Revenue adopted these amendments on June 29, 2016. After analysis and review of this rule making, the Department finds that the amendments to these rules are not likely to have a significant impact on jobs. These amendments are intended to implement Iowa Code section 450.9 as amended by 2015 Iowa Acts, chapter 125. These amendments will become effective August 24, 2016. The following amendments are adopted.
ITEM 1. Amend paragraph 86.2(1)"c" as follows: c. Who is not required to file a return for estateestates of decedents dying on or after July 1, 2004. (1) Effective for estates with decedents dying on or after July 1, 2004, if an estate has no Iowa inheritance tax due and there is no obligation for the estate to file a federal estate tax return, even though real estate is involved, an Iowa inheritance tax return need not be filed ifat least one of the following situations is applicable:- (1) All estate assets are held solely in joint tenancy with right of survivorship between husband and wife alone; or
- (2) All estate assets are held solely in joint tenancy with right of survivorship, and not as tenants in common, solely between the decedent and individuals listed in Iowa Code section 450.9as individuals thatwho are entirelystatutorily exempt from Iowa inheritance taxon shares received from a decedent based on the individuals’ relationship to the decedent. This numbered paragraph does not apply to a jointly held interest in an asset that passes to both an individual listed in Iowa Code section 450.9 and any other individual not listed in Iowa Code section 450.9, including that individual’s spouse. See subparagraph 86.2(1)“c”(2) for a list of individuals who are statutorily exempt from Iowa inheritance tax pursuant to Iowa Code section 450.9; or
- (3) All assets are passing by beneficiary designation pursuant to a trust and are intended to pass the decedent’s property at death or through a nonprobate transfer solely to individuals listed in Iowa Code section 450.9 who are statutorily exempt from Iowa inheritance tax on shares received from a decedent based on their relationship to the decedent. The entire amount of property, interest in property, and income passing solely to the surviving spouse and to parents, grandparents, great-grandparents, and other lineal ascendants, to children including legally adopted children and biological children entitled to inherit under the laws of this state, stepchildren, and grandchildren, great-grandchildren, and other lineal descendants is exempt from taxThis numbered paragraph does not apply to a jointly held interest in an asset that passes to both an individual listed in Iowa Code section 450.9 and any other individual not listed in Iowa Code section 450.9, including that individual’s spouse. See subparagraph 86.2(1)“c”(2) for a list of individuals who are statutorily exempt from Iowa inheritance tax pursuant to Iowa Code section 450.9; or
- (4) All estate assets are passed by will or intestate succession as set forth in Iowa Code chapter 633, division IV, and beginning with section 633.210, solely to individuals who are statutorily exempt from Iowa inheritance tax as set forth abovebelow in subparagraph (3)86.2(1)“c”(2); or
- (5) For estates of decedents dying on or after July 1, 2007, if the total aggregate value of all the tangible personal property in the estate is $5,000 or less and in-kind distributions are made. Any in-kind distribution of personal property is exempt from inheritance tax when the total aggregate value of the tangible personal property in the estate is $5,000 or less. If the total aggregate amount of tangible personal property is greater than $5,000, then the exemption for in-kind distributions of tangible personal property does not apply. See Iowa Code section 450.4(7); see also Iowa Code section 633.276 for a description of tangible personal property that qualifies.Example 1: The total aggregate value of the tangible personal property in the estate is $3,000. The executor makes an in-kind distribution of a diamond ring worth $1,000 to a neighbor. The diamond ring is not subject to inheritance tax.Example 2: The total aggregate value of the tangible personal property in the estate is $15,000. The executor makes an in-kind distribution of a diamond ring worth $1,000 to a neighbor. The diamond ring is subject to inheritance tax because the total aggregate value of tangible personal property is greater than $5,000.Paragraph 86.2(1)“c” does not apply to interests in an asset or assets that pass to both an individual listed in Iowa Code section 450.9 and that individual’s spouse.
- For estates of decedents dying prior to July 1, 2016, the entire amount of property, interest in property, and income passing solely to the surviving spouse, and parents, grandparents, great-grandparents, and other lineal ascendants, children including legally adopted children and biological children entitled to inherit under the laws of this state, stepchildren, and grandchildren, great-grandchildren, and other lineal descendants are exempt from Iowa inheritance tax.
- For estates of decedents dying on or after July 1, 2016, the entire amount of property, interest in property, and income passing solely to the surviving spouse, lineal ascendants, lineal descendants, and stepchildren and their lineal descendants are exempt from Iowa inheritance tax. “Lineal descendants” includes descendants by adoption.
- For estates of decedents dying prior to July 1, 2016, the entire amount of property, interest in property, and income passing solely to the surviving spouse, and parents, grandparents, great-grandparents, and other lineal ascendants, children including legally adopted children and biological children entitled to inherit under the laws of this state, stepchildren, and grandchildren, great-grandchildren, and other lineal descendants are exempt from Iowa inheritance tax pursuant to Iowa Code section 450.9.
- For estates of decedents dying on or after July 1, 2016, the entire amount of property, interest in property, and income passing solely to the surviving spouse, lineal ascendants, lineal descendants, and stepchildren and their lineal descendants are exempt from Iowa inheritance tax pursuant to Iowa Code section 450.9. “Lineal descendants” includes descendants by adoption.
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