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02-01-2017
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ARC 2923CDental Board[650]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 147.34 and 153.39, the Dental Board hereby gives Notice of Intended Action to amend Chapter 22, “Dental Assistant Radiography Qualification,” Iowa Administrative Code. The purpose of the proposed amendment is to increase the availability of examinations and testing locations for applicants seeking the dental assistant radiography qualification. The amendment sets 50 as the minimum number of questions for the examinations, specifies that the examinations must be administered in a proctored setting, and sets a minimum pass rate of 75 percent or better. This amendment would allow outside training entities to develop and submit their own dental assistant radiography qualification examinations for Board approval. Any interested person may make written comments on the proposed amendment on or before February 21, 2017. Such written materials should be directed to Phil McCollum, Associate Director, Iowa Dental Board, 400 S.W. Eighth Street, Suite D, Des Moines, Iowa 50309; or sent by e-mail to phil.mccollum@iowa.gov. There will be a public hearing on February 21, 2017, at 2 p.m. in the Board office, 400 S.W. Eighth Street, Suite D, Des Moines, Iowa, at which time persons may present their views orally or in writing. The proposed amendment is subject to waiver or variance pursuant to 650—Chapter 7. After analysis and review of this rule making, there is a positive impact on jobs, as opportunity is provided for outside training entities to both develop and administer a dental radiography examination. This amendment is intended to implement Iowa Code sections 147.34 and 153.39. The following amendment is proposed.
ITEM 1. Amend rule 650—22.5(136C,153) as follows:650—22.5(136C,153) Examination requirements. An applicant for dental assistant radiography qualification shall successfully pass a board-approved examination in dental radiography. 22.5(1) Examinations approved by the board are those administered by the board or board’s approved testing centers or, if taken after January 1, 1986, the Dental Assisting National Board Dental Radiation Health and Safety Examination.Examinations must be prior approved by the board and must be administered in a proctored setting. All board-approved examinations must have a minimum of 50 questions. The Dental Assisting National Board Radiation Health and Safety Examination is an approved examination. 22.5(2) A score of 75percent or better on the boarda board-approved examination shall be considered successful completion of the examination. The board accepts the passing standard established by the Dental Assisting National Board for applicants who take the Dental Assisting National Board Radiation Health and Safety Examination. 22.5(3) Information on taking thea board-approved examination may be obtained by contacting the board office at 400 SW 8th Street, Suite D, Des Moines, Iowa 50309-4687. 22.5(4) A dental assistant must meet such other requirements as may be imposed by the board’s approved dental assistant testing centers. 22.5(5) A dental assistant who fails to successfully complete thea board-approved examination after two attempts will be required to submit, prior to each subsequent examination attempt, proof of additional formal education in dental radiography in a program approved by the board or sponsored by a school accredited by the Commission on Dental Accreditation of the American Dental Association.ARC 2919CDental Board[650]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 153.32, 153.33(1)“e,” and 153.34, the Dental Board hereby gives Notice of Intended Action to amend Chapter 27, “Standards of Practice and Principles of Professional Ethics,” Iowa Administrative Code. The purposes of the proposed amendments are to update references to the code of ethics for each profession and to specify the criteria, specify the mode of communication and define a permanent practice location for retirement or discontinuation-of-practice notices. These amendments update language to reflect that practitioners should refer to the most updated version of their respective code of professional ethics. These amendments would require any dentist who retires or leaves a permanent practice location to notify any patient treated within the previous two-year period, in writing, informing the patient of the location of the patient’s record and options for future care. These amendments define a permanent practice location as any location at which a dentist has regularly practiced for a period of six consecutive months, on a full- or part-time basis. Any interested person may make written comments on the proposed amendments on or before February 21, 2017. Such written materials should be directed to Phil McCollum, Associate Director, Iowa Dental Board, 400 S.W. Eighth Street, Suite D, Des Moines, Iowa 50309; or sent by e-mail to phil.mccollum@iowa.gov. There will be a public hearing on February 21, 2017, at 2 p.m. in the Board office, 400 S.W. Eighth Street, Suite D, Des Moines, Iowa, at which time persons may present their views orally or in writing. These amendments are subject to waiver or variance pursuant to 650—Chapter 7. After analysis and review of this rule making, no impact on jobs has been found. These amendments are intended to implement Iowa Code sections 153.32, 153.33(1)“e,” and 153.34. The following amendments are proposed.
ITEM 1. Amend rule 650—27.1(153) as follows:650—27.1(153) General. 27.1(1) Dental ethics. The following principles relating to dental ethics are compatible withthe most recent version of the Code of Professional Ethics and advisory opinions published in August 1998 by the American Dental Association. These principles are not intended to provide a limitation on the ability of the board to address problems in the area of ethics but rather to provide a basis for board review of questions concerning professional ethics. The dentist’s primary professional obligation shall be service to the public with the most important aspect of that obligation being the competent delivery of appropriate care within the bounds of the clinical circumstances presented by the patient, with due consideration being given to the needs and desires of the patient. Unprofessional conduct includes, but is not limited, to, any violation of these rules. 27.1(2) Dental hygiene ethics. The following principles relating to dental hygiene ethics are compatible with themost recent version of the Code of Ethics of the American Dental Hygienists’ Association published in 1995. Standards of practice for dental hygienists are compatible with the Iowa dental hygienists’ association dental hygiene standards of practice adopted in May 1993. These principles and standards are not intended to provide a limitation on the ability of the dental hygiene committee to address problems in the area of ethics and professional standards for dental hygienists but rather to provide a basis for committee review of questions regarding the same. The dental hygienist’s primary responsibility is to provide quality care and service to the public according to the clinical circumstances presented by the patient, with due consideration of responsibilities to the patient and the supervising dentist according to the laws and rules governing the practice of dental hygiene. 27.1(3) Dental assistant ethics. Dental assistants shall utilizethe most recent version of the principles of professional dental and dental hygiene ethics for guidance, and the laws and rules governing the practice of dental assistingPrinciples of Professional Ethics as adopted by the American Dental Assistants Association.These principles and standards are not intended to provide a limitation on the ability of the board to address problems in the area of ethics and professional standards for dental assistants but rather to provide a basis for board review of questions regarding the same. The dental assistant’s primary responsibility is to provide quality care and service to the public according to the clinical circumstances presented by the patient, with due consideration being given to the needs and desires of the patient. ITEM 2. Amend rule 650—27.10(153) as follows:650—27.10(153) Retirement or discontinuance of practice. 27.10(1) A licenseedentist, upon retirement, or upon discontinuation of the practice of dentistry, or upon leaving or moving from a communityleaving a permanent practice location, shall notify all active patients in writingany patient whom the dentist has examined, treated, cared for, or otherwise consulted with during the previous two-year period. Such notification shall be in writing, mailed to the patient’s last-known mailing address, or by publication once a week for three consecutive weeks in a newspaper of general circulation in the community, that the licensee intends to discontinue the practice of dentistry in the community, and shall encourage patients to seek the services of another licensee. The notification must inform the patient of the retirement or discontinuation of practice at that practice location and shall inform the patient of the location of the patient’s record and options for continued care. The licenseeparting dentist shall make reasonable arrangements with activefor the care of such patientsand for the transfer of patient records, or copies thereof, to the succeeding licenseedentist. “Active patient” means a person whom the licensee has examined, treated, cared for, or otherwise consulted with during the two-year period prior to retirement, discontinuation of the practice of dentistry, or leaving or moving from a community.A permanent practice location is defined as any location at which a dentist regularly practices dentistry for a period of six consecutive months, on either a part-time or full-time basis. 27.10(2) Nothing herein provided shall prohibit a licenseedentist from conveying or transferring the licensee’s patient records to another licensed dentist who is assuming apractice or remaining at the practice, provided that written notice is furnished to all patients as hereinbefore specified.ARC 2920CHuman Services Department[441]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 249A.4, the Department of Human Services hereby gives Notice of Intended Action to amend Chapter 77, “Conditions of Participation for Providers of Medical and Remedial Care,” Chapter 78, “Amount, Duration and Scope of Medical and Remedial Services,” and Chapter 83, “Medicaid Waiver Services,” Iowa Administrative Code. Iowa’s Medicaid program is evolving to create a single system of care to address the health care needs of the whole person, including the physical health, behavioral health, and long-term care services and supports. The purposes of these proposed amendments are to deliver quality, patient-centered care and to create efficiencies. On April 1, 2016, the majority of Medicaid members began having their services coordinated through managed care organizations (MCOs). Members in the following programs are not included in this transition: the Health Insurance Premium Payment (HIPP) Program, programs for the medically needy, and programs for all-inclusive care for the elderly (PACE) enrollees, as well as members who are American Indian or Alaskan natives, or those who participate in the Medicare Savings Program. These proposed amendments are intended to implement changes related to managed care and provide technical clarification. Changes include:
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 234.6 and 237C.4, the Department of Human Services hereby gives Notice of Intended Action to rescind Chapter 106, “Safety Standards for Children’s Centers,” and to adopt a new Chapter 106, “Certification Standards for Children’s Residential Facilities,” Iowa Administrative Code. These proposed rules describe the certificate of approval process for a new children’s residential setting created in 2016 Iowa Acts, Senate File 2304, which also enacted Iowa Code chapter 237C, “Children’s Residential Facilities — Certification and Inspection,” and repealed Iowa Code chapter 237B. These rules will provide governmental oversight to entities that operate residential-based programs serving children not under the jurisdiction of the Department of Human Services, juvenile court, or any other governmental entity but that do not have governmental oversight today. These rules address the basic health and educational needs of children; protection of children from mistreatment, abuse, and neglect; background and records checks of persons providing care to children in facilities certified under this chapter; the use of seclusion, restraint, or other restrictive interventions; health; safety; emergency; and the physical premises. Any interested person may make written comments on the proposed rules on or before February 21, 2017. Comments should be directed to Harry Rossander, Bureau of Policy Coordination, Department of Human Services, Hoover State Office Building, Fifth Floor, 1305 East Walnut Street, Des Moines, Iowa 50319-0114. Comments may be sent by fax to (515)281-4980 or by e-mail to policyanalysis@dhs.state.ia.us. These rules do not provide for waivers in specified situations because requests for the waiver of any rule may be submitted under the Department’s general rule on exceptions at 441—1.8(17A,217). After analysis and review of this rule making, no impact on jobs has been found. These rules are intended to implement Iowa Code section 234.6 and chapter 237C. The following amendment is proposed.
ITEM 1. Rescind 441—Chapter 106 and adopt the following new chapter in lieu thereof: CHAPTER 106CERTIFICATION STANDARDS FOR CHILDREN’S RESIDENTIAL FACILITIESPreambleIt is the policy of this state to provide appropriate protection for children who are separated from the direct personal care of their parents, relatives, or guardians. Therefore, the intent of this chapter is to establish certification standards for facilities that meet the definition of “children’s residential facility” pursuant to Iowa Code chapter 237C. Iowa Code chapter 237C requires the department to establish standards that shall, at a minimum, address the basic health and educational needs of children; protection of children from mistreatment, abuse, and neglect; background and records checks of persons providing care to children in facilities certified under this chapter; the use of seclusion, restraint, or other restrictive interventions; health; safety; emergency; and the physical premises on which care is provided by a children’s residential facility.Iowa Code chapter 237C specifies that the standards established by the department shall not regulate religious education curricula at children’s residential facilities.These rules cover definitions, application of the standards, the certification process, and provisions to address basic needs; educational programs and services; protection of children from mistreatment, abuse, and neglect; discipline; background and records checks of persons providing care to children in facilities certified under this chapter; the use of seclusion, restraint, or other restrictive interventions; health; safety; emergencies; the physical premises where care is provided by a children’s residential facility; sanitation, water, and waste disposal; staffing; and reports and inspections.441—106.1(237C) Definitions. "Administrator" means the administrator of that division of the department designated by the director of human services to administer this chapter or the administrator’s designee. "Agency," unless otherwise provided by law, means an individual, corporation, limited liability company, business trust, estate, trust, partnership or association, or any other legal entity which provides care as a children’s residential facility. "Chemical restraint" means the use of chemical agents, including psychotropic drugs, as a form of restraint. "Child" "children" means an individual or individuals less than 18 years of age. "Children’s residential facility" means a private facility designed to serve children who have been voluntarily placed for reasons other than an exclusively recreational activity outside of their home by a parent or legal guardian and who are not under the custody or authority of the department of human services, juvenile court, or another governmental agency, that provides 24-hour care, including food, lodging, supervision, education, or other care on a full-time basis by a person other than a relative or guardian of the child, but does not include an entity providing any of the following:- Care furnished by an individual who receives the child of a personal friend as an occasional and personal guest in the individual’s home, free of charge and not as a business.
- Care furnished by an individual with whom a child has been placed for lawful adoption, unless that adoption is not completed within two years after placement.
- Child care furnished by a child care facility as defined in Iowa Code section 237A.1.
- Care furnished in a hospital licensed under Iowa Code chapter 135B or care furnished in a health care facility as defined in Iowa Code section 135C.1.
- Care furnished by a juvenile detention home or juvenile shelter care home approved under Iowa Code section 232.142.
- Care furnished by a child foster care facility licensed under Iowa Code chapter 237.
- Care furnished by an institution listed in Iowa Code section 218.1.
- Care furnished by a facility licensed under Iowa Code chapter 125.
- Care furnished by a psychiatric medical institution for children licensed under Iowa Code chapter 135H.
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 22.7(50), 307.12 and 307A.2, the Iowa Department of Transportation hereby gives Notice of Intended Action to amend Chapter 4, “Public Records and Fair Information Practices,” Iowa Administrative Code. The proposed amendments:
A meeting to hear requested oral presentations is scheduled for Thursday, February 23, 2017, at 1 p.m. in the Administration Building, First Floor, South Conference Room, Iowa Department of Transportation, 800 Lincoln Way, Ames, Iowa. The meeting will be canceled without further notice if no oral presentation is requested. After analysis and review of this rule making, no impact on jobs has been found. These amendments are intended to implement Iowa Code section 22.7(50)“b.” The following amendments are proposed.
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 307.12 and 307A.2, the Iowa Department of Transportation hereby gives Notice of Intended Action to amend Chapter 615, “Sanctions,” Iowa Administrative Code. The Department proposes to update the rule regarding service of notice to further streamline the process of documenting when the Department mailed a notice by allowing the Department to confirm and certify under penalty of perjury that the mailing was properly sent and to remove unnecessary language related to what must occur if the Department determines it failed to send a notice since these requirements are already clearly outlined in statute. These rules do not provide for waivers. Any person who believes that the person’s circumstances meet the statutory criteria for a waiver may petition the Department for a waiver under 761—Chapter 11. Any person or agency may submit written comments concerning this proposed amendment or may submit a written request to make an oral presentation. The comments or request shall:
A meeting to hear requested oral presentations is scheduled for Thursday, February 23, 2017, at 10 a.m. at the Iowa Department of Transportation’s Motor Vehicle Division offices located at 6310 SE Convenience Boulevard, Ankeny, Iowa. The meeting will be canceled without further notice if no oral presentation is requested. After analysis and review of this rule making, no impact on jobs has been found. This amendment is intended to implement Iowa Code section 321.16. The following amendment is proposed.
Pursuant to the authority of Iowa Code section 249A.4, the Department of Human Services amends Chapter 77, “Conditions of Participation for Providers of Medical and Remedial Care,” Chapter 78, “Amount, Duration and Scope of Medical and Remedial Services,” and Chapter 79, “Other Policies Relating to Providers of Medical and Remedial Care,” Iowa Administrative Code. The federal Indian Health Service (IHS) approves encounter rates for inpatient and outpatient medical care provided by IHS and tribal facilities to American Indians or Alaskan natives who are beneficiaries of Medicare, Medicaid, or other federal programs. The Indian Health Facilities in Iowa requested that Iowa Medicaid adopt the encounter rate for prescribed drugs, in lieu of payment for the particular drugs provided. The Centers for Medicare and Medicaid Services (CMS) released a final rule that implements provisions of the Patient Protection and Affordable Care Act of 2010 as amended by the Health Care and Education Reconciliation Act of 2010 (collectively referred to as the Affordable Care Act) pertaining to Medicaid reimbursement for covered outpatient drugs. Key aspects of the final rule require Medicaid agencies to comply by documenting the reimbursement methodology for specific entities in their state plan no later than April 1, 2017. Specific entities that must be addressed include: (1) a covered entity described in Section 1927(a)(5)(B) of the Social Security Act (“340B” entities), (2) a contract pharmacy under contract with a covered 340B entity, and (3) a facility authorized to purchase drugs through the federal supply schedule (FSS). Corresponding clarifications, which do not represent a change from current policy, are being made in the rules. Additionally, CMS has required that ingredient cost reimbursement for drugs acquired by providers at nominal prices and excluded from the calculation of the drug’s “best price” not exceed the provider’s actual acquisition cost. A terminology clarification is also being made by changing the term “maximum allowable cost” (MAC) to “federal upper limit” (FUL) to conform to the Code of Federal Regulations (CFR). Lastly, the final rule indicates states may, at their option, provide coverage of and receive federal financial participation for investigational drugs, under specific conditions. The amendment in Item 2 herein clarifies that Iowa Medicaid does not cover investigational drugs that are the subject of an investigational new drug (IND) application that has been allowed to proceed by the Food and Drug Administration (FDA) but that do not meet the definition of a covered outpatient drug as set forth in 42 U.S.C. 1396r-8(k)(2)-(4). These amendments change the outpatient prescribed drug reimbursement methodology for drugs provided to Medicaid recipients who are American Indians or Alaskan natives by health facilities that are operated by IHS or under the Indian Self-Determination and Education Assistance Act (P.L. 93-638) by an “Indian tribe,” “tribal organization,” or “urban Indian organization” as those terms are defined in 25 U.S.C. 1603 (referred to as Indian Health Facilities). Such drugs will be reimbursed through an outpatient encounter rate per day rather than through reimbursement for each individual prescription provided. The amendments also clarify the facilities that will receive this encounter rate for drugs. Because Medicaid reimbursement for services provided to Medicaid recipients who are American Indians or Alaskan natives by these facilities are 100 percent federally funded, there is no state expenditure involved in this change of reimbursement methodology. These amendments also change the outpatient prescribed drug reimbursement methodology for drugs acquired by providers at nominal prices and excluded from the calculation of the drug’s “best price” pursuant to 42 CFR 447.508. For such drugs, the ingredient cost may not exceed the provider’s actual acquisition cost (not to exceed the nominal price paid). Additionally, these amendments clarify the following:
- For services provided to American Indians and Alaskan natives, Indian health facilities may bill for multiple visits per patient per calendar day for medical services (at the “outpatient per visit rate (excluding Medicare)”) only if medical services are provided for different diagnoses or if distinctly different medical services from different categories of services are provided for the same diagnoses in different units of the facility. For this purpose, the categories of medical services are vision services; dental services; mental health and addiction services; early and periodic screening, diagnosis, and treatment services for children; other outpatient services; and other inpatient services. A visit is a face-to-face contact between a patient and a health professional at or through the facility.
- For services provided to American Indians or Alaskan natives, Indian health facilities may also bill for one visit per patient per calendar day for outpatient prescribed drugs provided by the facility (at the “outpatient per visit rate (excluding Medicare)”), which shall constitute payment in full for all outpatient prescribed drugs provided on that day.
- The average state actual acquisition cost (AAC), determined pursuant to paragraph 79.1(8)“b,” plus the professional dispensing fee determined pursuant to paragraph 79.1(8)“c.”
- The federal upper limit (FUL), defined as the upper limit for a multiple source drug established in accordance with the methodology of the Centers for Medicare and Medicaid Services as described in 42 CFR 447.514(a)-(c), plus the professional dispensing fee determined pursuant to paragraph 79.1(8)“c.”
- The total submitted charge.
- Providers’ usual and customary charge to the general public.
- The average state AAC, determined pursuant to paragraph 79.1(8)“b,” plus the professional dispensing fee determined pursuant to paragraph 79.1(8)“c.”
- The total submitted charge.
- Providers’ usual and customary charge to the general public.
- The submitted 340B covered entity actual acquisition cost (not to exceed the 340B ceiling price) plus the professional dispensing fee pursuant to paragraph 79.1(8)“c”;
- The average state AAC determined pursuant to paragraph 79.1(8)“b” plus the professional dispensing fee pursuant to paragraph 79.1(8)“c”;
- For generic prescription drugs and nonprescription drugs only, the FUL pursuant to 79.1(8)“a”(1)“2” plus the professional dispensing fee pursuant to paragraph 79.1(8)“c”;
- The total submitted charge; or
- Providers’ usual and customary charge to the general public.
Pursuant to the authority of Iowa Code section 249A.4 and 2016 Iowa Acts, chapter 1139, section 27, the Department of Human Services hereby amends Chapter 78, “Amount, Duration and Scope of Medical and Remedial Services,” Chapter 79, “Other Policies Relating to Providers of Medical and Remedial Care,” and Chapter 83, “Medicaid Waiver Services,” Iowa Administrative Code. These changes are being made to bring administrative rules into compliance with 2015 Iowa Acts, chapter 137, section 149, section (1)(q), as amended by 2016 Iowa Acts, chapter 1139 (House File 2460), section 27, which requires the Department of Human Services to increase the contractual managed care rate floors and the fee-for-service (FFS) rates and payment limits by 1 percent over the rates in effect April 1, 2016, for providers of home- and community-based service (HCBS) waiver services for which the managed care rate floor is based on the average aggregate reimbursement rate for the fiscal year beginning July 1, 2014. The outdated language regarding encumbering a portion of the cost of home and vehicle modification over 12 months is also being removed as these paragraphs were to be stricken in a prior rule making that removed the cost of home and vehicle modification from the monthly cap under the waiver program. These amendments increase FFS upper payment limits and reimbursement rates by 1 percent over the rates in effect June 30, 2016, for providers of HCBS waiver services for which the managed care rate floor is based on the average aggregate reimbursement rate for the fiscal year beginning July 1, 2014. These amendments also increase managed care, the contractual reimbursement rate floor based on the average aggregate reimbursement rate for the fiscal year beginning July 1, 2014, by 1 percent over the rate floor in effect on April 1, 2016. The caps on the total monthly cost of HCBS waiver services for members under each waiver and the annual respite limit for the intellectual disability (ID) waiver are also being increased by 1 percent. The increases in the caps are put in place so that members may receive the same services after the rate increases. Finally, these amendments correct the annual limit for specialized medical equipment in Chapter 78 to align with the limit listed in subrule 79.1(2). Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2849C on December 7, 2016. These amendments were also Adopted and Filed Emergency and published as ARC 2848C on the same date and became effective November 15, 2016. The Department received comments from three respondents during the public comment period. A summary of the respondent’s comments and the Department’s responses is as follows: Comment 1: Two respondents commented that ARC 2848C fails to direct the managed care organizations (MCOs) to pay for the higher of the increased rate floors or the provider contracted rates. The respondents stated that their concern is that, without specific language in Chapter 79 directing the MCOs to pay providers the new increased rate floor, the MCOs will not adjust providers’ rates and may pay providers less than the rate floor. Department response 1: ARC 2848C is promulgated to implement the legislated 1 percent increase to the HCBS rates for which the rate floor is based on the average aggregate reimbursement rate for the fiscal year beginning July 1, 2014, and for managed care claims, the reimbursement rate floors shall be increased by 1 percent over the rate floor in effect on April 1, 2016. Under IA Health Link, providers establish negotiated reimbursement rates with the MCOs. If the provider negotiated a rate with an MCO that is more than 1 percent over the initial average aggregate rate, the 1 percent increase will not automatically be applied. Proposed directives for the MCOs are outside the scope of this legislation, and therefore the rule will not be amended at this time. Comment 2: Two respondents commented that ARC 2848C fails to direct the MCOs to retroactively pay all claims since July 1, 2016, at the new increased rates. 2016 Iowa Acts, chapter 1139, states that the new increased floor rates apply starting July 1, 2016, if higher than the provider’s current rates. The respondents expressed concern that, without specific language in Chapter 79 directing the MCOs to pay providers above their contracted rate if the floor rate in place April 1, 2016, plus 1 percent exceeds their contracted rate, it will result in the MCOs’ paying providers less than the established rate floor. Department response 2: Department response 1 above applies to Comment 2 as well. Comment 3: In Item 9, the recoupment provisions for HCBS are amended in paragraph 79.1(15)“f.” A respondent requested that paragraph 79.1(15)“f” be stricken in its entirety because the respondent believes that the paragraph is punitive to HCBS providers. Department response 3: The amendment to the paragraph increases by 1 percent the amount of revenues able to be retained by providers when retrospective rate adjustments for FFS services are determined. The paragraph will not be amended at this time. Comment 4: A respondent requested that the calculation in paragraph 83.2(2)“b” for nursing level of care be corrected to $959.50 to accurately reflect the 1 percent increase. Department response 4: The Department agrees with the respondent, and as a result, the nursing-level-of-care amount in paragraph 83.2(2)“b” has been changed from $950.28 to $959.50. Two additional changes have been made since publication of the Notice of Intended Action: The amount listed in the “upper limit” column as the full-day rate for adult day care under the intellectual disability waiver has been changed from $70.06 to $62.42 in subrule 79.1(2) to accurately reflect the 1 percent increase, and a technical correction has been made to the reimbursement methodology language for nursing services under the HCBS AIDS/HIV, health and disability, elderly and intellectual disability waivers. The purpose of the change is to remove the outdated reimbursement methodology and replace it with the reimbursement methodology that reflects current practice. The Council on Human Services adopted these amendments on January 11, 2017. These amendments do not provide for waivers in specified situations because requests for the waiver of any rule may be submitted under the Department’s general rule on exceptions at 441—1.8(17A,217). These amendments may increase private-sector wages for employees providing home- and community-based services under HCBS waiver programs. These amendments are intended to implement Iowa Code section 249A.4 and 2016 Iowa Acts, chapter 1139, section 27. These amendments will become effective March 8, 2017, at which time the Adopted and Filed Emergency amendments are hereby rescinded. The following amendments are adopted.
ITEM 1. Amend subparagraph 78.27(10)"e" as follows: (2) In absence of a monthly cap on the cost of waiver services, the total monthly cost of all supported employment services may not exceed $3,029.00$3,059.29 per month. ITEM 2. Amend paragraph 78.34(9)"g" as follows: g. Service payment shall be made to the enrolled home or vehicle modification provider. If applicable, payment will be forwarded to the subcontracting agency by the enrolled home or vehicle modification provider following completion of the approved modifications.(1) Payment of up to $6,366.64 per year may be made to certified providers upon satisfactory completion of the service. (2) The case manager or service worker shall encumber a portion of the cost of a modification every month within the monthly dollar cap allowed for the member until the entire cost of the modification is encumbered within a consecutive 12-month period. ITEM 3. Amend paragraph 78.41(2)"i" as follows: i. Payment for respite services shall not exceed $7,262$7,334.62 per the member’s waiver year. ITEM 4. Amend paragraph 78.43(5)"g" as follows: g. Service payment shall be made to the enrolled home or vehicle modification provider. If applicable, payment will be forwarded to the subcontracting agency by the enrolled home or vehicle modification provider following completion of the approved modifications. Payment of up to $6,366.64 per year may be made to certified providers upon satisfactory completion of the service. The case manager or service worker may encumber a portion of the cost of a modification every month within the monthly dollar cap allowed for the member until the entire cost of the modification is encumbered within a consecutive 12-month period. ITEM 5. Amend paragraph 78.43(8)"c" as follows: c. Payment of up to $6,060$6,366.64 per year may be made to enrolled specialized medical equipment providers upon satisfactory receipt of the service. Each month within the 12-month period, the service worker shall encumber an amount within the monthly dollar cap allowed for the member until the amount of the equipment cost is reached. ITEM 6. Amend paragraph 78.46(2)"g" as follows: g. Service payment shall be made to the enrolled home or vehicle modification provider. If applicable, payment will be forwarded to the subcontracting agency by the enrolled home or vehicle modification provider following completion of the approved modifications. Payment of up to $6,366.64 per year may be made to certified providers upon satisfactory completion of the service. The case manager or service worker shall encumber a portion of the cost of a modification every month within the monthly dollar cap allowed for the member until the entire cost of the modification is encumbered within a consecutive 12-month period. ITEM 7. Amend paragraph 78.46(4)"c" as follows: c. Payment of up to $6,060$6,366.64 per year may be made to enrolled specialized medical equipment providers upon satisfactory receipt of the service. Each month within the 12-month period, the service worker shall encumber an amount within the monthly dollar cap allowed for the member until the amount of the equipment cost is reached. ITEM 8. Amend subrule 79.1(2), provider category “HCBS waiver service providers,” as follows: Provider category Basis of reimbursement Upper limit HCBS waiver service providers,including:Except as noted, limits apply to all waivers that cover the named provider.1. Adult day careFee schedule Effective 7/1/137/1/16, for AIDS/HIV, brain injury, elderly, and ill and handicapped waivers: Provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute, half-day, full-day, or extended-day rate. If no 6/30/136/30/16 rate: Veterans Administration contract rate or $1.45$1.47 per 15-minute unit, $23.24$23.47 per half day, $46.26$46.72 per full day, or $69.37$70.06 per extended day if no Veterans Administration contract.Effective 7/1/137/1/16, for intellectual disability waiver: County contract rate or, in the absence of a contract rate, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute, half-day, full-day, or extended-day rate. If no 6/30/136/30/16 rate, $1.94$1.96 per 15-minute unit, $30.96$31.27 per half day, $61.80$62.42 per full day, or $78.80$79.59 per extended day.2. No change.3. Home health aidesRetrospective cost-related For AIDS/HIV, elderly, and health and disability waivers effective 7/1/137/1/16: Lesser of maximum Medicare rate in effect 6/30/136/30/16 plus 3%1% or maximum Medicaid rate in effect 6/30/136/30/16 plus 3%1%.For intellectual disability waiver effective 7/1/137/1/16: Lesser of maximum Medicare rate in effect 6/30/136/30/16 plus 3%1% or maximum Medicaid rate in effect 6/30/136/30/16 plus 3%1%, converted to an hourly rate.4. No change.5. Nursing care For elderly and intellectual disability waivers: Fee schedule as determined by Medicare.For AIDS/HIV and health and disability waivers: Agency’s financial and statistical cost report and Medicare percentage rate per visit. ForAIDS/HIV, health and disability, elderlyand intellectual disability waiver effective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%. If no 6/30/136/30/16 rate: $87.12$87.99 per visit.For intellectual disability waiver effective 7/1/13: Lesser of maximum Medicare rate in effect 6/30/13 plus 3% or maximum Medicaid rate in effect 6/30/13 plus 3%, converted to an hourly rate.For AIDS/HIV and health and disability waivers effective 7/1/13, provider’s rate in effect 6/30/13 plus 3%. If no 6/30/13 rate: $87.12 per visit.6. Respite care when provided by: Home health agency: Specialized respite Cost-based rate for nursing services provided by a home health agencyEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: Lesser of maximum Medicare rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate, or maximum Medicaid rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate, not to exceed $311.97$315.09 per day. Basic individual respiteCost-based rate for home health aide services provided by a home health agencyEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: Lesser of maximum Medicare rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate, or maximum Medicaid rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate, not to exceed $311.97$315.09 per day. Group respiteFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $3.45$3.49 per 15-minute unit, not to exceed $311.97$315.09 per day. Home care agency: Specialized respiteFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $8.87$8.96 per 15-minute unit, not to exceed $311.97$315.09 per day. Basic individual respiteFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $4.73$4.78 per 15-minute unit, not to exceed $311.97$315.09 per day. Group respiteFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $3.45$3.49 per 15-minute unit, not to exceed $311.97$315.09 per day. Nonfacility care: Specialized respiteFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $8.87$8.96 per 15-minute unit, not to exceed $311.97$315.09 per day. Basic individual respiteFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $4.73$4.78 per 15-minute unit, not to exceed $311.97$315.09 per day. Group respiteFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $3.45$3.49 per 15-minute unit, not to exceed $311.97$315.09 per day. Facility care: Hospital or nursing facilityproviding skilled careFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $3.45$3.49 per 15-minute unit, not to exceed the facility’s daily Medicaid rate for skilled nursing level of care. Nursing facilityFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $3.45$3.49 per 15-minute unit, not to exceed the facility’s daily Medicaid rate. CampsFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $3.45$3.49 per 15-minute unit, not to exceed $311.97$315.09 per day. Adult day careFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $3.45$3.49 per 15-minute unit, not to exceed rate for regular adult day care services. Intermediate care facility for persons with an intellectual disabilityFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $3.45$3.49 per 15-minute unit, not to exceed the facility’s daily Medicaid rate. Residential care facilities for persons with an intellectualdisabilityFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $3.45$3.49 per 15-minute unit, not to exceed contractual daily rate. Foster group careFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $3.45$3.49 per 15-minute unit, not to exceed daily rate for child welfare services. Child care facilitiesFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $3.45$3.49 per 15-minute unit, not to exceed contractual daily rate.7. to 9. No change. 10. Mental health outreachprovidersFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%. If no 6/30/136/30/16 rate: On-site Medicaid reimbursement rate for center or provider. Maximum of 1,440 units per year.11. No change.12. Nutritional counselingFee scheduleEffective 7/1/137/1/16 for non-county contract: Provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $8.67$8.76 per 15-minute unit.13. No change.14. Senior companionFee scheduleEffective 7/1/137/1/16 for non-county contract: Provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $1.87$1.89 per 15-minute unit. 15. Consumer-directed attendant care provided by: Agency (other than an elderly waiver assisted living program) Fee agreed upon bymember and providerEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $5.30$5.35 per 15-minute unit, not to exceed $122.62$123.85 per day. Assisted living program (for elderly waiver only) Fee agreed upon bymember and providerEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $5.30$5.35 per 15-minute unit, not to exceed $122.62$123.85 per day. Individual Fee agreed upon bymember and provider Effective 7/1/137/1/16, $3.54$3.58 per 15-minute unit, not to exceed $82.53$83.36 per day. When an individual who serves as a member’s legal representative provides services to the member as allowed by 79.9(7)“b,” the payment rate must be based on the skill level of the legal representative and may not exceed the median statewide reimbursement rate for the service unless the higher rate receives prior approval from the department. 16. Counseling: Individual Fee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $11.34$11.45 per 15-minute unit. Group Fee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $11.33$11.44 per 15-minute unit. Rate is divided by six, or, if the number of persons who comprise the group exceeds six, the actual number of persons who comprise the group.17. Case managementFee for service with cost settlement. See 79.1(1)“d.”For brain injury and elderly waivers: Retrospective cost-settled rate.18. Supported community livingRetrospectively limited prospective rates. See 79.1(15)For intellectual disability and brain injury waiver effective 7/1/137/1/16: $9.19$9.28 per 15-minute unit, not to exceed the maximum daily ICF/ID rate per day plus 3%3.927%. 19. Supported employment: Individual supported employment Fee scheduleFee schedule in effect May 4, 20167/1/16. Total monthly cost for all supported employment services not to exceed $3,029.00$3,059.29 per month. Long-term job coaching Fee scheduleFee schedule in effect May 4, 20167/1/16. Total monthly cost for all supported employment services not to exceed $3,029.00$3,059.29 per month. Small-group supportedemployment (2 to 8 individuals) Fee scheduleFee schedule in effect May 4, 20167/1/16. Maximum 160 units per week. Total monthly cost for all supported employment services not to exceed $3,029.00$3,059.29 per month.20. No change.21. Behavioral programmingFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%. If no 6/30/136/30/16 rate: $11.34$11.45 per 15 minutes.22. Family counseling and trainingFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $11.33$11.44 per 15-minute unit. 23. Prevocational services, includingcareer explorationFee schedule Fee schedule in effect May 4, 20167/1/16. 24. Interim medical monitoringand treatment: Home health agency(provided by home health aide)Cost-based rate for home health aide services provided by a home health agencyEffective 7/1/137/1/16: Lesser of maximum Medicare rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate, or maximum Medicaid rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. Home health agency(provided by nurse)Cost-based rate for nursing services provided by a home health agencyEffective 7/1/137/1/16: Lesser of maximum Medicare rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate, or maximum Medicaid rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. Child development homeor centerFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $3.45$3.49 per 15-minute unit. Supported community livingproviderRetrospectively limited prospective rate. See 79.1(15)Effective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $9.19$9.28 per 15-minute unit, not to exceed the maximum ICF/ID rate per day plus 3%3.927%. 25. Residential-based supportedcommunity livingRetrospectively limited prospective rates. See 79.1(15)Effective 7/1/137/1/16: Not to exceed the maximum ICF/ID rate per day plus 3%3.927%.26. Day habilitationFee scheduleEffective 7/1/137/1/16: County contract rate converted to a 15-minute or daily rate or, in the absence of a contract rate, provider’sProvider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute or daily rate. If no 6/30/136/30/16 rate: $3.47$3.51 per 15-minute unit or $67.55$68.23 per day. 27. No change. 28. Family and community supportservicesRetrospectively limited prospective rates. See 79.1(15)Effective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $9.19$9.28 per 15-minute unit.29. In-home family therapyFee scheduleEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%, converted to a 15-minute rate. If no 6/30/136/30/16 rate: $24.60$24.85 per 15-minute unit.30. No change.31. Independent support brokerRate negotiated by memberEffective 7/1/137/1/16, provider’s rate in effect 6/30/136/30/16 plus 3%1%. If no 6/30/136/30/16 rate: $15.91$16.07 per hour.32. to 34. No change. 35. Assisted living on-callservice providers (elderlywaiver only)Fee agreed upon by memberand provider.$25.75$26.08 per day. ITEM 9. Amend paragraph 79.1(15)"f" as follows: f. Retrospective adjustments. (1) Retrospective adjustments shall be made based on reconciliation of provider’s reasonable and proper actual service costs with the revenues received for those services as reported on Form 470-3449, Supplemental Schedule, accompanying Form SS-1703-0, Financial and Statistical Report for Purchase of Service. (2) RevenuesFor services provided from July 1, 2015, through June 30, 2016, revenues exceeding adjusted actual costs by more than 4.5 percent shall be remitted to the department. Payment will be due upon notice of the new rates and retrospective rate adjustment. (3) ProvidersFor services provided from July 1, 2015, through June 30, 2016, providers who do not reimburse revenues exceeding 104.5 percent of actual costs 30 days after notice is given by the department will have the revenues over 104.5 percent of the actual costs deducted from future payments. (4) For services provided on or after July 1, 2016, revenues exceeding adjusted actual costs by more than 5.5 percent shall be remitted to the department. Payment will be due upon notice of the new rates and retrospective rate adjustment. (5) For services provided on or after July 1, 2016, providers who do not reimburse revenues exceeding 105.5 percent of actual costs 30 days after notice is given by the department will have the revenues over 105.5 percent of the actual costs deducted from future payments. ITEM 10. Amend paragraph 83.2(2)"b" as follows: b. Except as provided below, the total monthly cost of the health and disability waiver services, excluding the cost of home and vehicle modification services, shall not exceed the established aggregate monthly cost for level of care as follows:Skilled level of careNursing level of careICF/ID$2,765$2,792.65$950$959.50$3,365$3,742.93(1) For members eligible for SSI who remain eligible for health and disability waiver services until the age of 25 because they are receiving health and disability waiver services upon reaching the age of 21, these amounts shall be increased by the cost of services for which the member would be eligible under 441—subrule 78.9(10) if still under 21 years of age. (2) If more than $505 is paid for home and vehicle modification services, the service worker or targeted case manager shall encumber up to $505 per month within the monthly dollar cap allowed for the member until the total amount of the modification is reached within a 12-month period. ITEM 11. Amend subparagraph 83.22(2)"c" as follows: (2) Services must be the least costly available to meet the service needs of the member. The total monthly cost of the elderly waiver services exclusive of case management services shall not exceed the established monthly cost of the level of care. Aggregate monthly costs, excluding the cost of case management and home and vehicle modifications, are limited as follows:Skilled level of careNursing level of care$2,765$2,792.65$1,339$1,365.78 ITEM 12. Amend paragraph 83.42(2)"b" as follows: b. The total monthly cost of the AIDS/HIV waiver services shall not exceed the established aggregate monthly cost for level of care. The monthly cost of AIDS/HIV waiver services cannot exceed the established limit of $1,840$1,876.80. ITEM 13. Amend paragraph 83.82(2)"d" as follows: d. The total cost of brain injury waiver services, excluding the cost of case management and home and vehicle modifications, shall not exceed $2,954$3,013.08 per month. ITEM 14. Amend paragraph 83.102(2)"b" as follows: b. The total cost of physical disability waiver services, excluding the cost of home and vehicle modifications, shall not exceed $692$705.84 per month. ITEM 15. Amend paragraph 83.122(6)"b" as follows: b. The total cost of children’s mental health waiver services needed to meet the member’s needs, excluding the cost of environmental modifications, adaptive devices and therapeutic resources, may not exceed $1,967$2,006.34 per month. [Filed 1/11/17, effective 3/8/17][Published 2/1/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/1/17.ARC 2932CHuman Services Department[441]Adopted and FiledPursuant to the authority of Iowa Code section 249A.4 and 2015 Iowa Acts, chapter 137, section 149(1)(f)(1), as amended by 2016 Iowa Acts, House File 2460, section 27, the Department of Human Services hereby amends Chapter 79, “Other Policies Relating to Providers of Medical and Remedial Care,” Iowa Administrative Code. This amendment increases the home health low utilization payment adjustment (LUPA) rates by 2.93 percent. This is estimated to be the maximum possible increase within the $1 million of state funding appropriated for this purpose, as required by 2015 Iowa Acts, chapter 137, section 149(1)(f)(1), as amended by 2016 Iowa Acts, House File 2460, section 27. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2847C on December 7, 2016. This amendment was also Adopted and Filed Emergency and published as ARC 2846C on the same date and became effective November 15, 2016. The Department received no comments during the public comment period. This amendment is identical to that published under Notice of Intended Action and Adopted and Filed Emergency. The Council on Human Services adopted this amendment on January 11, 2017. This amendment does not provide for waivers in specified situations since the increases are required by state law. After analysis and review of this rule making, no impact on jobs has been found. This amendment is intended to implement Iowa Code section 249A.4 and 2015 Iowa Acts, chapter 137, section 149(1)(f)(1), as amended by 2016 Iowa Acts, House File 2460, section 27. This amendment will become effective March 8, 2017, at which time the Adopted and Filed Emergency amendment is hereby rescinded. The following amendment is adopted.
ITEM 1. Amend subrule 79.1(2), provider category “Home health agencies,” as follows: Provider category Basis of reimbursement Upper limit Home health agencies1. Skilled nursing, physical therapy, occupational therapy, speech therapy, home health aide, and medical social services; home health care for maternity patients and children Fee schedule. See 79.1(26). For members living in a nursing facility, see 441—paragraph 81.6(11)“r.” Effective 7/1/13: Medicare LUPA rates in effect on July 1, 2013, updated July 1 every two years.Effective 7/1/16: Medicare LUPA rates in effect on 6/30/16 plus a 2.93% increase. 2. Private-duty nursing andpersonal cares for members aged 20 or under Retrospective cost-related. See 79.1(27)Effective 7/1/13: Actual and allowable cost not to exceed a maximum of 133% of statewide average. 3. Administration of vaccinesPhysician fee schedulePhysician fee schedule rate. [Filed 1/11/17, effective 3/8/17][Published 2/1/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/1/17.ARC 2924CIowa Finance Authority[265]Adopted and FiledPursuant to the authority of Iowa Code sections 17A.3(1)“b” and 16.5(1)“r,” the Iowa Finance Authority hereby amends Chapter 4, “General Revenue Bond Procedures,” Iowa Administrative Code. This amendment strikes rule 265—4.5(16), Public hearing and approval, because the rule is redundant as it relates to federal law, specifically Internal Revenue Code section 147(f), and is potentially inconsistent with a recent amendment to the Iowa Code (2016 Iowa Acts, Senate File 2257). Notice of Intended Action was published in the Iowa Administrative Bulletin on November 23, 2016, as ARC 2828C. The Authority did not receive any public comment on the proposed amendment and did not make any changes to the amendment as published under Notice. The Iowa Finance Authority adopted this amendment on January 4, 2017. After analysis and review of this rule making, no impact on jobs is expected. This amendment is intended to implement Iowa Code sections 16.5(1)“r,” 16.26, 16.102, 16.105, 16.131 and 16.133. This amendment will become effective on March 8, 2017. The following amendment is adopted.
ITEM 1. Amend rule 265—4.5(16) as follows:265—4.5(16) Public hearing and approval. In all cases where a public hearing, and the approval of an elected state official is required under the United States Internal Revenue Code and the regulations promulgated pursuant thereto, before the issuance of a tax-exempt bond by the authority, the following procedures apply. 4.5(1) Public hearing. After January 1, 1983, the authority will not issue a bond for a specific project unless, prior to issuance, the authority has conducted a public hearing conforming to the applicable requirements of the United States Internal Revenue Code and the regulations promulgated thereunder. The hearing shall be preceded by a notice thereof published at least 14 days prior to the date of the hearing in a newspaper of general circulation in the county where the project is located. The notice shall include but not be limited to the date, time and place of the hearing, the name of the project sponsor, and a general description of the project.The hearing shall be held at the authority’s office in Des Moines, or other location stated in the notice, unless at or prior to the time scheduled for the hearing, the authority receives a written request that a local hearing be held. In the event a local hearing is requested, the previously scheduled hearing shall be canceled, and notice of a hearing in the local area shall be published in the time and manner stated above. The local hearing shall be held at the date, time and place specified in the new notice, which time and place shall be reasonably convenient to persons affected by the project.The public hearing may be held by a staff member or board member of the authority or a hearing officer of another state agency working under an agreement with the authority. 4.5(2) Approval of elected official. After January 1, 1983, the authority will not issue a bond for a specific project unless, prior to issuance, the governor or another elected official of the state designated by the governor, shall approve the issuance of a bond. Following the public hearing opportunity referred to in subrule 4.5(1), the authority shall prepare and send to the governor’s office, or the office of an elected official of the state designated by the governor, a statement describing each bond or series of bonds which it proposes to issue, along with a summary of the public comments received with respect thereto, if any. This rule is intended to implement Iowa Code chapter 16 and Section 103(k), United States Internal Revenue Code and regulations promulgated thereunder. [Filed 1/12/17, effective 3/8/17][Published 2/1/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/1/17.ARC 2935CPublic Health Department[641]Adopted and FiledPursuant to the authority of Iowa Code sections 135.11(12) and 139A.21, the Iowa Department of Public Health hereby amends Chapter 1, “Reportable Diseases, Poisonings and Conditions, and Quarantine and Isolation,” Iowa Administrative Code. The current administrative rules in Chapter 1 direct hospitals, health care providers and clinical laboratories outside the state of Iowa to report to the Iowa Department of Public Health (the Department). The Department has established secure electronic connections with public health authorities in surrounding states as well as in other states where specimen testing is frequently performed for Iowa hospitals, health care providers, clinical laboratories, or residents. These amendments implement a change to subrule 1.4(3) by adding a new paragraph “d” to allow the Department to authorize out-of-state reporting entities to leverage existing secure electronic messaging connections between the reporting entity and the public health jurisdiction in which it is located to more efficiently comply with requirements for reporting to the Department. Paragraph “d” is intended to facilitate more efficient and timely reporting to the Department when such circumstances exist, but is not intended to create an additional reporting burden if such circumstances do not exist. Additional amendments to paragraph “c” of subrule 1.4(3) and to Appendices A and B are included for the purpose of updating language to align with current secure electronic reporting methods as well as clarifying condition-specific reporting requirements related to the location of the patient’s residency, diagnosis, and treatment. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2814C on November 23, 2016. No public comment was received. These amendments are identical to those published under Notice of Intended Action. The State Board of Health adopted these amendments on January 11, 2017. After analysis and review of this rule making, no impact on jobs has been found. These amendments are intended to implement Iowa Code chapters 135 and 139A. These amendments will become effective March 8, 2017. The following amendments are adopted.
ITEM 1. Amend rule 641—1.1(139A), definition of “IDSS,” as follows: "IDSS" means the Iowa disease surveillance system, a secure Web-basedelectronic statewide disease reporting and surveillance system. ITEM 2. Amend subrule 1.4(3) as follows: 1.4(3) How to report. a. Immediate reporting by telephone of diseases identified in Appendix A as immediately reportable.A health care provider and a public, private, or hospital clinical laboratory shall immediately report any confirmed or suspected case of a disease identified in Appendix A as immediately reportable to the department’s disease notification hotline at 1-800-362-2736. The report shall include all information required by 1.4(2) and the following: (1) The stage of the disease process. (2) Clinical status. (3) Any treatment provided for the disease. (4) All household and other known contacts. (5) Whether household and other known contacts have been examined and the results of such examinations. b. Other diseases that carry serious consequences or spread rapidly.A health care facility, health care provider and a public, private, or hospital clinical laboratory shall immediately report any confirmed or suspected case of a common source epidemic or disease outbreak of unusual numbers by telephone to the department’s 24/7 disease reporting telephone hotline at 1-800-362-2736. c. Reporting of other reportable diseases.Cases of other reportable communicable or infectious diseases not included in 1.4(3)“a” shall be reported to the department in accordance with Appendix A by mail, telephone, facsimile, or other secure electronic means. The preferred method is secure Web-basedelectronic reporting when available. If the department determines that reporting by mail hinders the application of organized control measures to protect the public health, the department may require that the reportable disease be reported by telephone, facsimile or secure Web-basedelectronic reporting. d. Reporting to other public health authorities.The department may authorize hospitals, health care providers or clinical laboratories outside the state of Iowa to report any confirmed or suspect case of a reportable disease, poisoning, or condition to another public health authority for the purpose of facilitating a report to the department. ITEM 3. Amend 641—Chapter 1, Appendix A, as follows: APPENDIX AIowa Department of Public HealthTable of Reportable Communicable and Infectious DiseasesReport cases of the diseases listed in the following table to the department within the time frame specified in the When to Report column and by the reporting method in the How to Report column.To report diseases immediately, use the 24/7 disease reporting telephone hotline: 1-800-362-2736.IMMEDIATELY report diseases, syndromes, poisonings and conditions of any kind suspected or caused by a biological, chemical, or radiological agent or toxin when there is reasonable suspicion that the disease, syndrome, poisoning or condition may be the result of a deliberate act such as terrorism.IMMEDIATELY report to the department outbreaks of any kind, diseases that occur in unusual numbers or circumstances, unusual syndromes, or uncommon diseases. Outbreaks may be infectious, environmental or occupational in origin and include food-borne outbreaks or illness secondary to chemical exposure (e.g., pesticides, anhydrous ammonia).Report diseases by:Entering into the Iowa Disease Surveillance System (IDSS): For IDSS-related questions, call the Center for Acute Disease Epidemiology (CADE) at 1-800-362-2736.Fax: (515)281-5698Mail: Iowa Department of Public Health Center for Acute Disease Epidemiology Lucas State Office Building 321 E. 12th Street Des Moines, Iowa 50319Isolates or specimens shall be sent to: State Hygienic Laboratory at the University of Iowa (SHL) U of I Research Park 2490 Crosspark Road Coralville, Iowa 52241-4721For specimen submission questions, call (319)335-4500 or go to http://www.shl.uiowa.edu. Diseases When to Report How to ReportAcquired immune deficiency syndrome (AIDS) and AIDS-defining conditions7 daysReport for Iowa residents and for residents of other states diagnosed or treated in Iowa. Report by one of the following methods: Phone (515)242-5141 or (515)281-6918 Mail Pursuant to the authority of Iowa Code section 136A.8, the Iowa Department of Public Health hereby amends Chapter 4, “Center for Congenital and Inherited Disorders,” Iowa Administrative Code. These amendments rescind the requirement of the Department to establish policies and procedures, including obtaining an informed consent for the release of residual newborn screening specimens for research, that would allow a parent or guardian the ability to provide informed consent prior to the release of a newborn’s residual newborn screening specimen for research purposes. The Department director has accepted a recommendation from the Congenital and Inherited Disorders Advisory Committee (CIDAC) to discontinue releasing specimens for external research use without informed consent and makes it the responsibility of the investigator of the proposed research to obtain informed consent from the parent or guardian for the release of the newborn’s specimen. Amendments to related subparagraphs support this change in policy. These amendments will allow reporting requirements for newborn critical congenital heart disease (CCHD) screening to reflect the implementation of the Iowa Newborn Screening Information System (INSIS), thereby enabling newborn care providers to enter CCHD screening results. A portion of the fees from the Iowa Newborn Screening Program (INSP) and the Iowa Maternal Prenatal Screening Program (IMPSP) are currently distributed to the Department to support a percent of effort of the executive officer of the Center for Congenital and Inherited Disorders (CCID). These amendments will allow program fees distributed to the Department to be used for INSP and IMPSP activities. The amendment in Item 9 corrects a typographical error. These amendments have been reviewed by CIDAC and interested individuals within the field. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2819C on November 23, 2016. Public comments were received from the Midwest Region of the March of Dimes in support of the proposed amendments. The public comments from the Midwest Region of the March of Dimes are summarized as, “Of particular note in the proposed regulation is the research and parental consent provision, which comports with our position.” To clarify the intent of the amended rule, the Department removed the words “the practice of storing and” from the phrase “to discontinue the practice of storing and releasing specimens” in the second paragraph of the preamble. The original sentence read, “The Department director has accepted a recommendation from the Congenital and Inherited Disorders Advisory Committee (CIDAC) to discontinue the practice of storing and releasing specimens for external research use without informed consent, and makes it the responsibility of the investigator of the proposed research to obtain informed consent from the parent or guardian for the release of the newborn’s specimen.” Upon review of comments by the public and by legislators and after discussion with Department legal counsel, the Department made the following changes from the published Notice of Intended Action:
Pursuant to the authority of Iowa Code sections 135.11, 139A.19, 139A.35, 141A.3, 141A.4, 141A.6, 141A.7, 141A.10, and 915.40 to 915.43, the Iowa Department of Public Health hereby amends Chapter 11, “Human Immunodeficiency Virus (HIV) Infection and Acquired Immune Deficiency Syndrome (AIDS),” Iowa Administrative Code. The rules in Chapter 11 describe procedures and programs related to HIV/AIDS, including testing and reporting requirements, HIV-related training programs, notification and testing of exposed persons, and the AIDS drug assistance program (ADAP). These amendments respond to previous changes to the Iowa Code that removed the state requirement for two hours of HIV-related training for emergency and nonemergency personnel and that altered language relating to the release of HIV-related test results under a court order. In addition, these amendments add definitions of “meningococcal disease” and “tuberculosis” to clarify the terms as they are used in 2014 Iowa Acts, Senate File 2297, which amended Iowa Code chapter 709D. The amendments also change the term “transplant center” to “organ procurement organization” in the definition of “health facility” and clarify the HIV-reporting requirements for these organizations. Testing requirements for pregnant women are also clarified. Finally, eligibility requirements for the two component programs within ADAP are made identical at less than or equal to 400 percent of the federal poverty level, and the assessment of income for ADAP enrollees is simplified by removing the requirement to calculate modified adjusted gross income. Costs for the additional participants will be covered by 340B Drug-Pricing Program rebates that ADAP receives directly from pharmaceutical manufacturers for people enrolled in the Insurance Assistance Program component of ADAP. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2820C on November 23, 2016. The Department received comments from a law enforcement officer working in a county sheriff’s office. The commenter expressed concerns that training emergency personnel on blood-borne pathogens before initial assignment was overly burdensome. The commenter also expressed concerns that the proposed amendments seemed to place limits on how prosecutors could use HIV test results. The Department responded that the blood-borne pathogen training requirements now align with federal requirements from the Occupational Safety and Health Administration and that the change in language for HIV test results was a conforming change that did not place limits on how prosecutors could use the test results. For these reasons, the Department did not make changes based upon the comments. One change has been made from the Notice of Intended Action. In the second sentence of the definition of “meningococcal disease,” the word “it” has been changed to “meningococcal disease.” The State Board of Health adopted these amendments on January 11, 2017. After analysis and review of this rule making, no impact on jobs has been found. These amendments are intended to implement Iowa Code sections 135.11, 139A.19, 139A.35, 141A.3, 141A.4, 141A.6, 141A.7, 141A.10, and 915.40 to 915.43. These amendments will become effective March 8, 2017. The following amendments are adopted.
ITEM 1. Amend rule 641—11.1(139A,141A), definitions of “Director of a plasma center, blood bank, clinical laboratory, or public health laboratory” and “Health facility,” as follows: "Director of a plasma center, blood bank, clinical laboratory,organ procurement organization, or public health laboratory" means the person responsible for direction and operation of the facility, the medical director, or the person designated by the director or medical director to ensure compliance with applicable regulations and requirements. "Health facility" means a hospital, health care facility, clinic, blood bank, blood center, sperm bank, laboratory organ transplant center and procurement agencyorganization, or other health care institution. ITEM 2. Amend subrule 11.4(1) as follows: 11.4(1) All pregnant women, including minors, shall be tested for HIV infection as part of the routine panel of prenatal tests.Health care providers that offer prenatal care to women shall provide HIV testing to all pregnant women, including minors, as part of the routine panel of prenatal tests. The health care provider requesting theHIV testof a pregnant woman shall notify athe pregnant woman that HIV screening is recommended for all prenatal patients and that the pregnant woman will receive an HIV test as part of the routine panel of prenatal tests unless the pregnant woman objects to the test. No written or oral consent shall be required. ITEM 3. Amend subrule 11.6(2) as follows: 11.6(2) Within seven days of the receipt of a person’s confirmed positive test result indicating HIV infection, the director of a plasma center, blood bank,organ procurement organization, clinical laboratory or public health laboratory that performed the test or that requested the confirmatory test shall make a report to the department on a form provided by the department. ITEM 4. Amend subrule 11.7(1) as follows: 11.7(1) A director of a plasma center, blood bank,organ procurement organization, clinical laboratory or public health laboratory or a physician or other health care provider who repeatedly fails to file the report required pursuant to these rules is subject to a report being made to the licensing board governing the professional activities of the individual. The department shall notify the individual each time the department determines that the individual has failed to file a required report. The department shall inform the individual in the notification that the individual may provide information to the department to explain or dispute the failure to report. ITEM 5. Amend rule 641—11.11(135) as follows:641—11.11(135) Purpose. The purpose of this rule is to describe the required content ofHIV and AIDS training programs and to identify the groups of personnel involved. 11.11(1) Nonemergency personnel. Within six months of their initial employmentBefore an initial assignment of tasks where occupational exposure to blood or other potentially infectious materials may take place and at least annually thereafter, all supervisory and patient care personnel of any agency listed below shall complete a minimum of two hours of training concerning AIDS-related conditions and the prevention of HIV infectiontraining concerning blood-borne pathogens, including human immunodeficiency virus and viral hepatitis, consistent with standards from the Occupational Safety and Health Administration of the U.S. Department of Labor: a. A licensed hospice, b. A homemaker-home health aide provider agency which receives state homemaker-home health aide funds, or c. An agency which provides respite care services and receives state funds for respite care services. 11.11(2) ContentNonemergency personnel training content. Training programs must address the following topics: a. HIV disease processesSymptoms and modes of transmission of blood-borne diseases, b. Signs and symptomsLocation and handling of personal protective equipment, c. Transmission,Information on the hepatitis B vaccine, and d. High-risk activities,Follow-up procedures in the event of an exposure. e. Prevention recommendations, and f. Standard precautions as defined by the CDC and the Occupational Safety and Health Administration of the U.S. Department of Labor. 11.11(3) Emergency and law enforcement personnel. AllBefore an initial assignment of tasks where occupational exposure to blood or other potentially infectious materials may take place and at least annually thereafter, all emergency medical services personnel, firefighters, and law enforcement personnel shall complete a minimum of two hours of training concerning AIDS-related conditions and the prevention of HIV infectiontraining concerning blood-borne pathogens, including human immunodeficiency virus and viral hepatitis, consistent with standards from the Occupational Safety and Health Administration of the U.S. Department of Labor. 11.11(4) ContentEmergency and law enforcement personnel training content. Training programs must address the following topics: a. HIV disease processesSymptoms and modes of transmission of blood-borne diseases, b. Signs and symptomsLocation and handling of personal protective equipment, c. Transmission,Information on the hepatitis B vaccine, and d. High-risk activities,Follow-up procedures in the event of an exposure. e. Prevention recommendations, and f. Standard precautions as defined by the CDC and the Occupational Safety and Health Administration of the U.S. Department of Labor. This rule is intended to implement Iowa Code section 135.11. ITEM 6. Adopt the following new definitions of “Meningococcal disease” and “Tuberculosis” in rule 641—11.22(139A): "Meningococcal disease" means acute infectious bacterial meningococcal infection presenting as invasive disease characterized by one or more clinical syndromes including bacteremia, sepsis, or meningitis. “Meningococcal disease” does not include nasopharyngeal colonization by Neisseria meningitidis. "Tuberculosis" means infectious tuberculosis as defined in 641—1.1(139A). ITEM 7. Amend subrules 11.34(5) and 11.34(6) as follows: 11 11.34 34(5) Results of a test performed under 641—11.30(915) to 641—11.34(915), except as provided in subrule 11.34(6), shall be disclosed only to the physician or other practitioner who ordered the test of the convicted or alleged offender; the convicted or alleged offender; the victim,; the victim counselor or person requested by the victim who is authorized to provide the counseling regarding the HIV-related test and results; the physician of the victim if requested by the victim; the parent, guardian, or custodian of the victim, if the victim is a minor; and the county attorney who filed the petition for the HIV-related testing under 641—11.30(915) to 641—11.34(915), who may use the results to file charges of criminal transmission of HIV. Results of a test performed under these rules shall not be disclosed to any other person without the written informed consent of the convicted or alleged offender. A person to whom the results of a test have been disclosed under 641—11.30(915) to 641—11.34(915) is subject to the confidentiality provision of Iowa Code section 141A.9, and shall not disclose the results to another person except as authorized by Iowa Code section 141A.9. 11 11.34 34(6) If HIV-related testing is ordered under 641—11.30(915) to 641—11.34(915), the court shall also order periodic testing of the convicted offender during the period of incarceration, probation, or parole or of the alleged offender during a period of six months following the initial test if the physician or other practitioner who ordered the initial test of the convicted or alleged offender certifies that, based upon prevailing scientific opinion regarding the maximum period during which the results of an HIV-related test may be negative for a person after being HIV-infected, additional testing is necessary to determine whether the convicted or alleged offender was HIV-infected at the time the sexual assault or alleged sexual assault was perpetrated. The results of the subsequent periodic tests conducted pursuant to subrule 11.34(6) shall be released only to the physician or other practitioner who ordered the test of the convicted or alleged offender; the convicted or alleged offender; the victim counselor or person requested by the victim to provide the counseling regarding the HIV-related test and results, who shall disclose the results to the petitioner; the physician of the victim if requested by the victim; and the county attorney, who may use the results as evidence in the prosecution of the sexual assault or in the prosecution of the offense of criminal transmission of HIVwho filed the petition for the HIV-related testing under 641—11.30(915) to 641—11.34(915). ITEM 8. Rescind the definition of “Modified adjusted gross income” in rule 641—11.40(141A). ITEM 9. Amend rule 641—11.43(141A) as follows:641—11.43(141A) Eligibility requirements. 11.43(1) An applicant is eligible to participate in the ADAP medication assistance program if the applicant: a. Applies for enrollment in ADAP on a form provided by the department; b. Has no health insurance to cover the cost of the drugs that are or may become available from ADAP; c. Is currently being prescribed a drug on the ADAP formulary; d. Has an annual MAGIincome that is less than or equal to 200400 percent of the poverty level as determined by the most recent federal poverty guidelines published annually by the U.S. Department of Health and Human Services for the size of the household (this income shall be determined after a $500 work-related allowance is deducted from the monthly salary of an employed person with HIV/AIDS); e. Has a medical diagnosis of HIV infection or AIDS or is an unborn infant or an infant under 18 months of age who has an HIV-infected mother; and f. Is a resident of Iowa. 11.43(2) An applicant is eligible to participate in the ADAP health insurance assistance program if the applicant: a. Applies for enrollment in ADAP on a form provided by the department; b. Has creditable health insurance coverage; c. Is currently being prescribed a drug on the ADAP formulary; d. Has an annual MAGIincome that is less than or equal to 400 percent of the poverty level as determined by the most recent federal poverty guidelines published annually by the U.S. Department of Health and Human Services for the size of the household; e. Has a medical diagnosis of HIV infection or AIDS or is an unborn infant or an infant under 18 months of age who has an HIV-infected mother; and f. Is a resident of Iowa. ITEM 10. Amend paragraph 11.45(1)"c" as follows: c. The enrolled individual’s annual MAGIincome increases to an amount above the respective ADAP component’s income guidelines; [Filed 1/11/17, effective 3/8/17][Published 2/1/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/1/17.ARC 2933CPublic Health Department[641]Adopted and Filed Pursuant to the authority of Iowa Code section 144.3, the Iowa Department of Public Health hereby amends Chapter 95, “Vital Records: General Administration,” Iowa Administrative Code. These amendments clarify restrictions on creating an alternative system for the registration of vital statistics, remove restrictions regarding obtaining vital records from the county level and clarify that the intent of rule 641—95.2(144) is to prohibit the establishment of another official system of registration of vital statistics—not to prohibit, for example, the routine publication of vital records information such as births in the local newspaper. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2821C on November 23, 2016. A public hearing was held on December 14, 2016, in Room 518, Lucas State Office Building, 321 E. 12th Street, Des Moines, Iowa. Comments were received by e-mail. The Department received nine public comments supporting the amendments. The comments were received from genealogists from within the state of Iowa, the State Archivist and the Freedom of Information Council. The comments were supportive of the proposed changes as the changes align with the authority given under Iowa Code chapter 22, “Examination of Public Records (Open Records).” The Department received one public comment questioning additional changes. The Department received three public comments stating concerns regarding the proposed amendments. The comments were from the Iowa County Recorders Association, the Iowa State Association of Counties and a retired county recorder. The comments from the Iowa County Recorders Association and the former county recorder centered on integrity of the vital record at the county level and concerns regarding fraud and identity theft. The Iowa State Association of Counties supported the letter written by the Iowa County Recorders Association. After consideration of the comments and discussion with legal counsel, the following changes were made from the amendments published under Notice:
Pursuant to the authority of Iowa Code section 135A.9, the Iowa Department of Public Health hereby amends Chapter 186, “Governmental Public Health Advisory Bodies,” Iowa Administrative Code. The current rules in Chapter 186 implement Iowa Code chapter 135A, the Public Health Modernization Act. The Act became outdated, and 2016 Iowa Acts, Senate File 2159, updated Iowa Code chapter 135A to reflect the intent to have one Governmental Public Health Advisory Council to advise and make policy recommendations to the Department, the Director of the Department and the State Board of Health regarding the Governmental Public Health System. The Council recommendations support improved organization and delivery of critical public health services across the state. These amendments reflect the changes to the Act made in 2016 Iowa Acts, Senate File 2159, which removed, added or changed some definitions; removed outdated references to “Iowa Public Health Standards”; removed the requirement to establish a voluntary accreditation process; eliminated the evaluation committee; adjusted the membership of the Governmental Public Health Advisory Council; clarified the roles and responsibilities of the Governmental Public Health Advisory Council; and clarified the roles and responsibilities of the Department. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2822C on November 23, 2016. No public comments were received. References to 2016 Iowa Acts, Senate File 2159, have been removed because the amendments in Senate File 2159 have been codified in Iowa Code chapter 135A. These amendments are otherwise identical to those published under Notice of Intended Action. The State Board of Health adopted these amendments on January 11, 2017. After analysis and review of this rule making, no impact on jobs has been found. These amendments are intended to implement Iowa Code chapter 135A and 2016 Iowa Acts, Senate File 2159. These amendments will become effective March 8, 2017. The following amendments are adopted.
ITEM 1. Amend 641—Chapter 186, title, as follows:GOVERNMENTAL PUBLIC HEALTH ADVISORY BODIESCOUNCIL ITEM 2. Amend rule 641—186.1(135A) as follows:641—186.1(135A) Purpose. The governmental public health advisory council and the governmental public health evaluation committee shall advise the departmentand make policy recommendations to the department, the director of the department, and the state board of health regarding the coordination and implementation of the voluntary accreditation of designated local public health agencies and of the department and the evaluation of the accreditation program and governmental public health system.The council is intended to support the goal that Iowa’s governmentally sponsored public health systems be effective, efficient, well-organized, and well-coordinated to have the greatest impact on the improvement of health status for all Iowans. ITEM 3. Amend rule 641—186.2(135A) as follows:641—186.2(135A) Definitions. For the purposes of this chapter, the following definitions apply: "Academic institution" means an institution of higher education in the state which grants degrees in public health or another health-related field and is accredited by a nationally recognized accrediting agency as determined by the United States Secretary of Education. For purposes of this definition, “accredited” means a certification of the quality of the institution of higher education. "Committee" means the governmental public health evaluation committee as established in 2009 Iowa Code Supplement section 135A.5. "Council" means the governmental public health advisory council as established in 2009 Iowa Code SupplementIowa Code section 135A.4. "Department" means the Iowa department of public health. "Designated local public health agency" means an entity that is either governed by or contractually responsible to a local board of health and designated by the local board to comply with the Iowa public health standards for a jurisdiction. "Director" means the director of the Iowa department of public health. "Governmental public health system" means local boards of health, the state board of health, designated local public health agencies, the state hygienic laboratory, and the department. "Local board of health" means a county or district board of health. "Organizational capacity" means the governmental public health infrastructure that must be in place in order to deliver public health services. "Public health system" means all public, private, and voluntary entities that contribute to the delivery of public health services within a jurisdiction. ITEM 4. Amend rule 641—186.3(135A) as follows:641—186.3(135A) Roles and responsibilities of advisory bodiesthe council. Two advisory bodiesThe council shall provide guidance to the department regarding the governmental public health system. 186.3(1) A governmental public health advisory council is established to advisedo all of the following: a. Advise the department and make policy recommendations to thedirector of the departmentand the state board of health concerning administration, implementation, and coordination of 2009 Iowa Code Supplement chapter 135Aand to make recommendations to the department regarding the governmental public health system. b. Propose to the director public health standards that may be utilized by the governmental public health system. c. Develop and implement processes for longitudinal evaluation of the public health system including collection of information about organizational capacity and public health service delivery. d. Determine what process and outcome improvements in the governmental health system are attributable to voluntary accreditation. e. Assure that the evaluation process is capturing data to support key research in public health system effectiveness and health outcomes. f. Develop and make recommendations for improvements to the public health system. g. Make recommendations for resources to support the public health system. h. Review rules developed and adopted by the state board of health under Iowa Code chapter 135A and make recommendations to the department for revisions to further promote implementation of Iowa Code chapter 135A and modernization of the governmental public health system. i. Form and utilize subcommittees as necessary to carry out the duties of the council. j. Annually submit a report on the activities of the council to the state board of health by July 1. 186.3(2) The council shall annually provide a report to the department by July 1. 186.3(3) A governmental public health evaluation committee is established to develop and implement the evaluation of the governmental public health system and voluntary accreditation program as described in 2009 Iowa Code Supplement section 135A.5. 186.3(4) The committee shall annually provide a report to the department by July 1. 186.(5) 186.3(2) Recommendations from the council and committee shall be provided to the director in writing. The director may provide those recommendations to the state board of health. 186.3(6) Communication. The council and committee shall ensure communication between the two bodies by: a. Providing regular updates to the other body through written reports at each meeting. b. Stipulating that the chairperson and vice chairperson of the committee and council hold semiannual conference calls. c. Meeting together at least biennially. d. Responding to requests from one body to the other that shall be made in writing and appear in new business on the agenda of the next regularly scheduled meeting. ITEM 5. Amend rule 641—186.4(135A) as follows:641—186.4(135A) Officers. 186.4(1) The officers of the council and committee shall be a chairperson and vice chairperson for each body. a. The officers shall be elected at the first meeting each September. b. Vacancy in the office of chairperson shall be filled by the vice chairperson. c. Vacancy in the office of vice chairperson shall be filled by election at the next regularly scheduled meeting after the vacancy occurs. 186.4(2) Duties of officers. a. The chairperson of the council shall preside at all meetings of the council, and the chairperson of the committee shall preside at all meetings of the committee. b. Robert’s Rules of Order shall govern all meetings. c. If the chairperson is absent or unable to act, the vice chairperson shall perform the duties of the chairperson. When so acting, the vice chairperson shall have all the powers of and be subject to all the restrictions upon the chairperson. d. The vice chairperson shall also perform such other duties as may be assigned by the chairperson. ITEM 6. Amend rule 641—186.5(135A) as follows:641—186.5(135A) Members of advisory bodiesthe council. 186.5(1) The director, pursuant to 2009 Iowa Code Supplement sectionssection135A.4and 135A.5, shall appoint members of the council and committee. a. The membership of the council shall consist of all of the following members who satisfy all of the following requirements: (1) Twelve members who represent various subfields of public health. These members shall provide geographical representation from all areas of the state. Each of these members shall be an employee of a designated local board of public health. Such members shall include a minimum of one local public health administrator and one physician member of a local board of health. (2) Two members who are representatives of the department. (3) The director of the state hygienic laboratory at the University of Iowa, or the director’s designee. (4) At least two representatives from academic institutions. (5) Two members who serve on a county board of supervisors. (6) At least one economist who has demonstrated experience in public health, health care, or a health-related field. (7) At least one research analyst. (8) Four nonvoting members who shall consist of four members of the general assembly, two from the senate and two from the house of representatives, with not more than one member from each chamber being from the same political party. The two senators shall be designated, one member each, by the majority leader of the senate after consultation with the president and by the minority leader of the senate. The two representatives shall be designated, one member each, by the speaker of the house of representatives after consultation with the majority leader of the house of representatives and by the minority leader of the house of representatives. (9) One member of the state board of health who shall be a nonvoting member. a. b. Members shall serve for a term of two years and may be reappointed for a maximum of three consecutive terms. Initial appointments shall be in staggered terms. b. c. Vacancies shall be filled in the same manner in which the original appointments were made for the balance of the unexpired term. 186.5(2) A member’s designee shall meet the same criteria for which the member was appointed. The member shall notify the department when the designee will be in attendance. The designee shall have voting rights. 186.5(3) Two consecutive unexcused absences of a member or designee shall be grounds for the director to consider dismissal of the council member or committee member and to appoint another. The department staff person assigned to the council or committee is charged with providing notification of absences to the director. ITEM 7. Amend rule 641—186.6(135A) as follows:641—186.6(135A) Meetings. The council and committee shall each hold a meeting at least quarterly. Notice of routine meetings and agenda should be made available to the members a minimum of five working days prior to the meeting. 186.6(1) Persons wishing to submit materials for consideration by the council or committee should submit the materials electronically to the department at least 14 days in advance of the scheduled meeting to ensure that members have adequate time to review the materials. 186.6(2) Persons wishing to make a presentation to the council or committee shall submit the request to the department not less than 14 days prior to the meeting. Presentations upon matters appearing on the agenda may be made either at the discretion of the chairperson or the department. 186.6(3) All meetings are open to the public in accordance with the open meetings law, Iowa Code chapter 21. 186.6(4) The council or committee may conduct a meeting by electronic means pursuant to Iowa Code section 21.8. 186.6(5) A simple majority of appointed members shall be considered a quorum. 186.6(6) Any member or member’s designee who is unable to attend a meeting shall notify the department at least 24 hours prior to the start of a regularly scheduled meeting; a meeting may be canceled if a quorum will not be present. 186.6(7) When a quorum is present, a position is carried by affirmative vote of the majority of those present. 186.6(8) Minutes. Minutes of all meetings showing the date, time, place, members present, members absent, and the general topics discussed shall be kept. The minutes shall reflect the actions agreed upon by the members for topics requiring the members’ input or consensus. ITEM 8. Amend rule 641—186.7(135A) as follows:641—186.7(135A) Conflict of interest. A conflict of interest exists when membersa member of the council or committee participateparticipates in a way that directly affects the financial interests of the council or committee membersmember. 186.7(1) To avoid conflict of interest issues,a council or committee membersmember who havehas a financial interest in an action must abstain from participating in the entire process including discussion and voting. 186.7(2) The council or committeeCouncil members who have or think they may have a conflict of interest shall declare that there is or may be a conflict of interest and request a determination from the department. 186.7(3) If a conflict of interest is determined to exist,a council or committee membersmember shall abstain from voting and shall be recorded as abstaining when votes are taken. ITEM 9. Amend rule 641—186.8(135A) as follows:641—186.8(135A) Subcommittees. The council and committee may designate one or more subcommittees to perform such duties as may be deemed necessary. ITEM 10. Adopt the following new rule 641—186.9(135A):641—186.9(135A) Roles and responsibilities of the department. The department is the lead agency to administer Iowa Code chapter 135A. The department’s administration shall include evaluation of and quality improvement measures for the governmental health system. ITEM 11. Amend 641—Chapter 186, implementation sentence, as follows: These rules are intended to implement 2009 Iowa Code Supplement sections135A.2 to135A.4and 135A.5, 135A.8 and 135A.9. [Filed 1/11/17, effective 3/8/17][Published 2/1/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/1/17.ARC 2927CRacing and Gaming Commission[491]Adopted and FiledPursuant to the authority of Iowa Code sections 99D.7 and 99F.4, the Racing and Gaming Commission hereby amends Chapter 1, “Organization and Operation,” Chapter 4, “Contested Cases and Other Proceedings,” Chapter 5, “Track, Gambling Structure, and Excursion Gambling Boat Licensees’ Responsibilities,” Chapter 6, “Occupational and Vendor Licensing,” Chapter 10, “Thoroughbred and Quarter Horse Racing,” Chapter 11, “Gambling Games,” and Chapter 12, “Accounting and Cash Control,” Iowa Administrative Code. Item 1 provides the current Web site address for the Commission. Item 2 clarifies that the provisions in subrule 4.5(8) apply to all licensed facilities. Item 3 removes a requirement for dog tracks. Item 4 allows for the acceptance of all types of checks. Item 5 allows for mobile pari-mutuel wagering outside the designated wagering area. Item 6 provides the current Web site address for the Commission. Item 7 adds a specific circumstance that is grounds for license sanction. Item 8 excludes spouses from the partnership requirements. Item 9 removes the abuse of discretion standard to make consistent with previous rule change. Item 10 changes the required payments made by the horsemen’s bookkeeper. Item 11 adds a requirement to identify horses that are racing on that day. Item 12 clarifies which horses are eligible to compete for breeders awards. Item 13 changes number and types of claims allowed. Item 14 removes “unsound” as a condition. Items 15 and 16 add the definition of “independent financial institution” and amend the definition of “reserve.” Item 17 adds requirements relating to preverified cards. Item 18 makes changes to the wide area progressive system provider requirements. Item 19 requires changes to internal controls for preverified cards. Notice of Intended Action was published in the November 9, 2016, Iowa Administrative Bulletin as ARC 2801C. On November 29, 2016, at 9 a.m., a public hearing was held at the Iowa Racing and Gaming Commission, 1300 Des Moines Street, Suite 100, Des Moines, Iowa. The hearing was attended by one stakeholder, who had also made previous written comments and was present at the hearing to be of assistance. The concern shared related to the proposed change specified in Item 18. The concern was that entities do not provide irrevocable surety bonds. Commission staff reviewed the comment received and reviewed it with the stakeholder. A change has been made to paragraph 11.12(8)“j”(2)“2” as published under Notice of Intended Action to reflect this concern. After analysis and review of this rule making, no impact on jobs has been found. These amendments will become effective March 8, 2017. The following amendments are adopted.
ITEM 1. Amend paragraph 1.2(2)"a" as follows: a. The commission meets periodically throughout the year and shall meet in July of each year. Notice of a meeting is published on the commission’s Web site at www.iowa.gov/irgc/https://irgc.iowa.gov/ at least five days in advance of the meeting or will be mailedsent to interested persons upon request. The notice shall contain the specific date, time, and place of the meeting. Agendas are available to any interested persons not less than five days in advance of the meeting. ITEM 2. Amend subrule 4.5(8) as follows: 4.5(8) Persons who are not holders of a license or occupational license and who have allegedly violated commission rules or statute, or whose presence at a track or on a riverboatlicensed facility is allegedly undesirable, are subject to the authority of the board and to any penalties, as set forth in rule 491—4.7(99D,99F). ITEM 3. Amend paragraph 5.4(4)"a" as follows: a. During all hours of operation, each licensee shall equip and maintain adequate first-aid facilities and have, at a minimum, one employee trained in CPR, first aid, and the use of the automated external defibrillator (AED). During live racing athorse racetracks and while excursion gambling boats are cruising, the licensee shall have present either a physician, a physician assistant, a registered nurse, a licensed practical nurse, a paramedic, or an emergency medical technician. ITEM 4. Amend subrule 5.4(9) as follows: 5.4(9) Checks. The acceptance of personal checks shall be allowed; however, “counter” checks shall not be allowed. All checks accepted must be deposited in a bank by the close of the banking day following acceptance. ITEM 5. Adopt the following new subrule 5.5(12): 5.5(12) Mobile pari-mutuel wagering. Pari-mutuel wagering shall be allowed outside the designated wagering area using mobile pari-mutuel tellers with portable wagering devices and by any other method approved in writing by the commission. ITEM 6. Amend subrule 6.4(2) as follows: 6.4(2) Knowledge of rules. By acceptance of a license from the commission, the licensee agrees to follow and comply with the rules of the commission and Iowa statutes pertaining to racing and gaming, to report immediately to the commission representative any known irregularities or wrongdoing involving racing or gaming and to cooperate in subsequent investigations. Commission rules are available on the commission’s Web site at www.iowa.gov/irgc/https://irgc.iowa.gov/. ITEM 7. Adopt the following new paragraph 6.5(3)"x": x. Communicating with or contacting a person who is voluntarily excluded pursuant to Iowa Code chapter 99D or 99F for gaming-related activities. ITEM 8. Amend subrule 6.20(1) as follows: 6.20(1) A partnership is defined as a formal or informal arrangement between two or more persons to own a racing animal. All partnerships, excluding husband and wifespouses, must be licensed with the commission on forms furnished by the commission, and in accordance with the requirements of 491—6.17(99D). ITEM 9. Amend subparagraph 10.4(4)"d" as follows: (3) Fouls.- Extent of disqualification. Upon any claim of foul submitted to them, the stewards shall determine the extent of any disqualification and place any horse found to be disqualified behind others in the race with which it interfered or may place the offending horse last in the race. The stewards at their discretion may determine if there was sufficient interference or intimidation to affect the outcome of the race and take the appropriate actions thereafter. Abuse of discretion shall be the standard of review used in any appeal involving a steward’s disqualification decision.
- Coupled entry. When a horse is disqualified under 10.4(4)“d”(3)“1” and that horse was a part of a coupled entry and, in the opinion of the stewards, the act which led to the disqualification served to unduly benefit the other part of the coupled entry, the stewards may disqualify the other part of the entry.
- Jockey guilty of foul. The stewards may discipline any jockey whose horse has been disqualified as a result of a foul committed during the running of a race.
- An ownership entity (sole owner, partnership or limited liability partnership, racing stable, corporation or limited liability corporation, or owner/trainer acting as an owner) shall not claim more than one horse in a race, and an authorized agent or trainer acting on behalf of an ownership entity shall not submit more than two claims in a race with two separate ownership interests.
- If an authorized agent or trainer acting on behalf of an ownership entity submits two claims in a race, the claims shall not be for the same horse.
- A trainer shall not receive more than two horses from any claiming race.
- The claimed horse suffers a fatality during the running of the race, dies, or is euthanized before leaving the track.
- The commission veterinarian, during the veterinarian’s observation of the horse coming off the track or upon its arrival to the test barn, determines the horse will be placed on the veterinarian’s list as unsound or lame. The stewards shall not void the claim if, prior to the race in which the horse is claimed, the claimant elects to claim the horse regardless of whether the commission veterinarian determines the horse will be placed on the veterinarian’s list as unsound or lame. An election made under this rule shall be entered on the claim form.
- The race is called off, canceled, or declared no contest.
- The total number of decks contained within the package.
- The commission-authorized game with which the cards are intended for use.
- The color of the cards within the package.
- The total number of cards and decks contained within the package.
- The date and time the cards were shuffled, verified and packaged.
- Information sufficient to determine the specific details regarding any persons or devices involved in the production, verification or packaging of the cards.
- The present value of the amount currently reflected on the jackpot meters of the multilink.
- The present value of one additional reset (start amount) of the multilink.
- Purchase of a qualified investment. A copy of such qualified investment shall be provided to the administrator within 30 days of purchase. Any qualified investment shall have a surrender value at maturity, excluding any interest paid before the maturity date, equal to or greater than the value of the corresponding periodic jackpot payment and shall have a maturity date prior to the date the periodic jackpot payment is required to be made; or
- A surety bond or an irrevocable letter of credit with an independent financial institution which provides periodic payments to a winner should the establishment default for any reason. The written agreement establishing a surety bond or irrevocable letter of credit shall be submitted to the administrator within 30 days of purchase; or
- An irrevocable trust with an independent financial institution in accordance with a written trust agreement approved by the administrator which provides periodic payments from an unallocated pool of assets to a group of winners and which shall expressly prohibit the winner from encumbering, assigning or otherwise transferring in any way the winner’s right to receive the deferred portion of the winnings except to the winner’s estate. The assets of the trust shall consist of federal government securities including but not limited to treasury bills, treasury bonds, savings bonds or other federally guaranteed securities in an amount sufficient to meet the periodic payments as required; or
- Another irrevocable method of providing the periodic payments to a winning player consistent with the purpose of this subparagraph, and which is approved by the administrator prior to implementation.
Pursuant to the authority of Iowa Code section 422.68, the Department of Revenue hereby amends Chapter 42, “Adjustments to Computed Tax and Credits,” and Chapter 52, “Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits,” Iowa Administrative Code. These amendments update the Department of Revenue’s rules regarding the application of the solar energy system tax credit to both individual and corporation income taxes in order to comply with 2015 Iowa Acts, chapter 124; 2016 Iowa Acts, House File 2459; and 2016 Iowa Acts, House File 2468. These amendments also include nonsubstantive changes to clarify the rules. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2736C on September 28, 2016. One public comment was received in relation to this rule making. The comment was in support of the rules as published in the Notice. Several changes have been made to these amendments from the Notice of Intended Action in order to clarify the expiration dates for the credits available under this program and the relationship between the Iowa credit and the federal credit. The changes add specific expiration dates for the credits for systems installed on or after January 1, 2016; add citations to the federal provisions which determine the expiration dates of these credits for Iowa purposes; and eliminate misleading language that suggested that the Iowa credits would be automatically extended if the federal credits are extended. There is also a change to the catchwords in subrules 42.48(9) and 52.44(9). The phrase “or beneficiaries of an estate or trust” was added to the end of the existing catchwords. These changes to the catchwords were necessary to better describe the information contained within the subrules and to match similar catchwords in other rules related to tax credits. 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 January 12, 2017. After analysis and review of this rule making, no impact on jobs has been found. These amendments are intended to implement Iowa Code section 422.11L as amended by 2015 Iowa Acts, chapter 124; 2016 Iowa Acts, House File 2459; and 2016 Iowa Acts, House File 2468; and Iowa Code section 422.33 as amended by 2015 Iowa Acts, chapter 124. These amendments will become effective March 8, 2017. The following amendments are adopted.
ITEM 1. Amend rule 701—42.48(422) as follows:701—42.48(422) Solar energy system tax credit. For tax years beginning on or after January 1, 2012, a solar energy system tax credit is available for both residential property and business property located in Iowa.The solar energy system must be installed on or after January 1, 2012, to be eligible for the credit. 42.48(1) Property eligible for the tax credit. The following property located in Iowa is eligible for the tax credit: a. Qualified solar water heating property described in Section 25D(d)(1) of the Internal Revenue Code. b. Qualified solar energy electric property described in Section 25D(d)(2) of the Internal Revenue Code. c. Equipment which uses solar energy to generate electricity, to heat or cool (or to provide hot water for use in) a structure, or to provide solar process heat (excepting property used to generate energy for the purposes of heating a swimming pool) and which is eligible for the federal energy credit as described in Section 48(a)(3)(A)(i) of the Internal Revenue Code. d. Equipment which uses solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight and which is eligible for the federal energy credit as described in Section 48(a)(3)(A)(ii) of the Internal Revenue Code. 42.48(2) Relationship between the Iowa and federal credits. As stated in subrules 42.48(3) to 42.48(5) below, the Iowa credit is a percentage of the applicable federal credit. Taxpayers who apply for the Iowa credit must also claim the corresponding federal credit. Availability of the Iowa credit for a specific type of installation in a given year is dependent upon availability of the federal credit for that type of installation. The Iowa credit is coupled with the Internal Revenue Code as amended to and including January 1, 2016. See Iowa Code section 422.11L(6); see also Public Law No. 114-113, Div. P, Title III, §§ 302, 303, 304, and Div. Q, Title I, § 187. 42.(2) 42.48(3) Calculation of credit for systems installed during tax years beginning on or after January 1, 2012, but before January 1, 2014. The credit is equal to the sum of the following federal tax credits: a. Fifty percent of the federal residential energy property credit provided in Section 25D(a)(1) of the Internal Revenue Code. b. Fifty percent of the federal residential energy property credit provided in Section 25D(a)(2) of the Internal Revenue Code. c. Fifty percent of the federal energy credit provided in Section 48(a)(2)(A)(i)(II) of the Internal Revenue Code. d. Fifty percent of the federal energy credit provided in Section 48(a)(2)(A)(i)(III) of the Internal Revenue Code.The amount of tax credit claimed by a taxpayer related to paragraphs 42.48(2)“a”42.48(3)“a” and “b” cannot exceed $3,000 for a tax year. The amount of tax credit claimed by a taxpayer related to paragraphs 42.48(2)“c”42.48(3)“c” and “d” cannot exceed $15,000 for a tax year.The federal residential energy efficient tax credits are allowed for installations that are completed and the federal energy tax credits for solar energy systems are allowed for installations that are placed in service before January 1, 2014. The solar energy system must be installed on or after January 1, 2012, to qualify for the Iowa credit. If the taxpayer installed a solar energy system and initially reported the federal tax credit for a tax year beginning prior to January 1, 2012, no Iowa credit will be allowed. 42.(3) 42.48(4) Calculation of credit for systems installed during tax years beginning on or after January 1, 2014, butand installed before January 1, 20172016. The credit is equal to the sum of the following federal tax credits: a. Sixty percent of the federal residential energy property credit provided in Section 25D(a)(1) of the Internal Revenue Code. b. Sixty percent of the federal residential energy property credit provided in Section 25D(a)(2) of the Internal Revenue Code. c. Sixty percent of the federal energy credit provided in Section 48(a)(2)(A)(i)(II) of the Internal Revenue Code. d. Sixty percent of the federal energy credit provided in Section 48(a)(2)(A)(i)(III) of the Internal Revenue Code.The amount of tax credit claimed by a taxpayer related to paragraphs 42.48(3)“a”42.48(4)“a” and “b” cannot exceed $5,000 for a tax yearper separate and distinct installation. The amount of tax credit claimed by a taxpayer related to paragraphs 42.48(3)“c”42.48(4)“c” and “d” cannot exceed $20,000 for a tax yearper separate and distinct installation. “Separate and distinct installation” is described in subrule 42.48(7).The federal residential energy efficient tax credits are allowed for installations that are completed on or before December 31, 2016, and the federal energy tax credits for solar energy systems are allowed for installations that are placed in service on or before December 31, 2016. Therefore, the Iowa tax credit is available for installations that are either completed or placed in service before January 1, 2017. If the federal residential energy property tax credits or the federal energy credits are extended to installations completed or placed in service on or after January 1, 2017, the Iowa tax credit will also be extended. 42.48(5) Calculation of credit for systems installed on or after January 1, 2016. The credit is equal to the sum of the following federal tax credits: a. Fifty percent of the federal residential energy property credit provided in Section 25D(a)(1) of the Internal Revenue Code. This credit is set to expire December 31, 2021, in accordance with Public Law No. 114-113 Div. P, Title III, § 304. b. Fifty percent of the federal residential energy property credit provided in Section 25D(a)(2) of the Internal Revenue Code. This credit is set to expire December 31, 2021, in accordance with Public Law No. 114-113 Div. P, Title III, § 304. c. Fifty percent of the federal energy credit provided in Section 48(a)(2)(A)(i)(II) of the Internal Revenue Code. This credit applies to property the construction of which begins before January 1, 2022, in accordance with Public Law No. 114-113 Div. P, Title III, § 303. d. Fifty percent of the federal energy credit provided in Section 48(a)(2)(A)(i)(III) of the Internal Revenue Code. This credit is set to expire December 31, 2016, in accordance with Public Law No. 114-113 Div. Q, Title I, § 187.The amount of tax credit claimed by a taxpayer related to paragraphs 42.48(5)“a” and “b” cannot exceed $5,000 per separate and distinct installation. The amount of tax credit claimed by a taxpayer related to paragraphs 42.48(5)“c” and “d” cannot exceed $20,000 per separate and distinct installation. The term “separate and distinct installation” is described in subrule 42.48(7). 42.(4) 42.48(6) Application for the tax credit.Tax credit award limitations. No more than $1.5 million of tax credits for solar energy systems are allowed for tax years 2012 and 2013. The $1.5 million cap also includes the solar energy system tax credits provided in rule 701—52.44(422) for corporation income tax. No more than $4.5 million of tax credits for solar energy systems is allowed for each of the tax years 2014 to 2016. The $4.5 million cap does not include any dollars allocated to a previous tax year that roll over to the 2015 and 2016 tax years.The following limitations apply: a. Aggregate tax credit award limit.No more than $5 million of tax credits will be issued for calendar years beginning on or after January 1, 2015.The $4.5 millionannual tax credit allocation cap also includes the solar energy system tax credits provided in rule 701—52.44(422) for corporation income tax and in rule 701—58.22(422) for franchise tax. Awards of tax credits are made on a first-come, first-served basis. b. Allocation for residential installations.AtBeginning with tax year 2014, at least $1 million of the $4.5 millionannual tax credit allocation cap for the 2014 to 2016each tax yearsyear is reserved for residential installations. If the total amount of credits for residential installations for a tax year is less than $1 million, the remaining amount below $1 million will be allowed for nonresidential installations. c. Rollover of unallocated credits.IfBeginning with calendar year 2014, if the $4.5 millionannual tax credit allocation cap for the 2014 and 2015 tax years is not reached, the remaining amount below $4.5 millionthe cap will be allowed to be carried forward to the following tax year and shall not count toward the cap for that year. 42.48(7) How to apply for the credit. Timely and complete applications shall be reviewed and approved on a first-come, first-served basis. Applications for the tax credit may be submitted through the Tax Credit Award, Claim, and Transfer Administration System (CACTAS), which applicants may access through the department’s Web site. a. Separate and distinct installation requirement.A taxpayer may claimapply for one tax credit for each separate and distinct solar installation.Each separate and distinct installation requires a separate application. In order for an installation to be considered a separate and distinct solar installation, both of the following factors must be met: (1) Each installation must be eligible for the federal residential energy property credit or the federal energy credit as provided in subrule 42.48(3)42.48(1). (2) Each installation must have separate metering. b. Application deadline.In order to request the tax credit, a taxpayer must complete an application for the solar energy tax credit for each separate and distinct installation. For installations completed on or after January 1, 2014, the application must be filed by May 1 following the year of installation of the solar energy system.Notwithstanding the foregoing sentence, the following extensions are applicable to installations completed in 2014 and 2015: (1) Solar energy systems installed during the 2014 calendar year shall be eligible for approval under Iowa Code section 422.11L even if the application is filed after May 1, 2015. Valid and complete applications shall be accepted and approved on a first-come, first-served basis and shall first be eligible for approval for the tax year during which the application is received, but not before the tax year beginning January 1, 2016. (2) Solar energy systems installed during the 2015 calendar year shall be eligible for approval under Iowa Code section 422.11L even if the application is filed after May 1, 2016. Valid and complete applications shall be accepted and approved on a first-come, first-served basis and shall first be eligible for approval for the tax year during which the application is received, but not before the tax year beginning January 1, 2017. c. Contents of the application.The application must contain the following information: (1) Name, address and federal identification number of the taxpayer. (2) Date of installation of the solar energy system. (3) The kilowatt capacity of the solar energy system. (4) Copies of invoices or other documents showing the cost of the solar energy system. (5) Amount of federal income tax credit for the solar energy system. (6) Amount of Iowa tax credit requested. (7) For nonresidential installations,All applicants must provide a completion sheet from a local utility companyor similar documentation verifying thatinstallation of the system has been placed in servicecompleted. For nonresidential installations, the completion sheet must indicate the date the installation was placed in service. If a completion sheet is not available from the local utility companyor similar documentation is not available, a statement shall be provided that is similar to the one required to be attached to federal Form 3468 when claiming the federal energy credit and that specifies the date the system was placed in service. (8) For leased solar energy systems where the lessor is the applicant, the lessor should also provide a copy of the solar energy system lease that indicates the property that is the subject of the lease and the parties to the lease agreement. If the lessor is entitled to the Iowa solar energy system tax credit, the lessee will not be entitled to such a credit. d. Waitlist.If the department receives applications for tax credits in excess of the annual aggregate award limitation, the department shall establish a waitlist for the next year’s allocation of tax credits. The applications will be prioritized based on the date the department received the applications and shall first be funded in the order listed on the waitlist. With the exception of the extension described in subparagraphs 42.48(7)“b”(1) and (2) above, only valid applications filed by the taxpayer by May 1 of the year following the year of the installation of the solar energy property shall be eligible for the waitlist. If the annual aggregate cap is reached for the final year in which the federal credit is available, no applications will be carried over to the next year.Placement on a waitlist shall not constitute a promise binding the state that persons placed on the waitlist will actually receive the credit in a future year. The availability of a tax credit and approval of a tax credit application pursuant to subrule 42.48(7) in a future year is contingent upon the availability of tax credits in that particular year. c. e. Certificate issuance.If the application is approved, the department will send a letter to the taxpayer including the amount of the tax credit and providing a tax credit certificate number. f. Claiming the tax credit.The solar energy system tax credit will be claimed on Form IA 148, Tax Credits Schedule. Any tax credit in excess of the tax liability for the tax year may be credited to the tax liability for the following ten years or until used, whichever is the earlier. The taxpayer must include with any Iowa tax return claiming the solar energy system tax credit federal Form 5695, Residential Energy Credits, if claiming the residential energy credit or federal Form 3468, Investment Credit, if claiming the business energy credit.If the department receives applications for tax credits in excess of the $1.5 million available for 2012 and 2013 and the $4.5 million available for 2014 to 2016, the applications will be prioritized by the date the department received the applications. If the number of applications exceeds the $1.5 or $4.5 million of tax credits available, the department shall establish a wait list for the next year’s allocation of tax credits and the applications shall first be funded in the order listed on the wait list. However, if the $4.5 million cap of tax credit is reached for 2016, no applications in excess of the $4.5 million cap will be carried over to the next year, assuming there is no extension of the federal credit. g. Refundability.Any credit in excess of the taxpayer’s tax liability is nonrefundable. h. Carryforward.Any tax credit in excess of the taxpayer’s tax liability for the tax year may be credited to the taxpayer’s tax liability for the following ten years or until depleted, whichever is earlier. i. Transferability.The credit may not be transferred to any other person. 42.() 42.48(8) Unavailable to those eligible for renewable energy tax credit. d. A taxpayer who is eligible to receive a renewable energy tax credit provided in rule 701—42.28(422,476C) is not eligible for the solar energy system tax credit. 42.(5) 42.48(9) Allocation of tax credit to owners of a business entityor beneficiaries of an estate or trust. If the taxpayer claiming the tax credit based on a percentage of the federal energy credit under Section 48 of the Internal Revenue Code is a partnership, limited liability company, S corporation, estate or trust electing to have income taxed directly to the individual, the individual may claim the tax credit. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings of the partnership, limited liability company, S corporation, estate or trust. The maximum amount of credit available to a partnership, limited liability company, S corporation, estate or trust shall be limited to $15,000 for installations placed in service in tax years 2012 and 2013 and $20,000 for installations placed in service in tax yearsbeginning on or after January 1, 2014 to 2016. This rule is intended to implement Iowa Code section 422.11L as amended by 2014 Iowa Acts, Senate File 2340, and 2014 Iowa Acts, House File 2473, section 772015 Iowa Acts, chapter 124, and 2016 Iowa Acts, House File 2468. ITEM 2. Amend rule 701—52.44(422) as follows:701—52.44(422) Solar energy system tax credit. For tax years beginning on or after January 1, 2012, a solar energy system tax credit is available for business property located in Iowa.The solar energy system must be installed on or after January 1, 2012, to be eligible for the credit. 52.44(1) Property eligible for the tax credit. The following property located in Iowa is eligible for the tax credit: a. Equipment which uses solar energy to generate electricity, to heat or cool (or to provide hot water for use in) a structure, or to provide solar process heat (excepting property used to generate energy for the purposes of heating a swimming pool) and which is eligible for the federal energy credit as described in Section 48(a)(3)(A)(i) of the Internal Revenue Code. b. Equipment which uses solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight and which is eligible for the federal energy credit as described in Section 48(a)(3)(A)(ii) of the Internal Revenue Code. 52.44(2) Relationship between the Iowa and federal credits. As stated in subrules 52.44(3) to 52.44(5) below, the Iowa credit is a percentage of the applicable federal credit. Taxpayers who apply for the Iowa credit must also claim the corresponding federal credit. Availability of the Iowa credit for a specific type of installation in a given year is dependent upon availability of the federal credit for that type of installation. The Iowa credit is coupled with the Internal Revenue Code as amended to and including January 1, 2016. See Iowa Code section 422.11L(6); see also Public Law No. 114-113, Div. P, Title III, §§ 302, 303, and Div. Q, Title I, § 187. 52.(2) 52.44(3) Calculation of credit for systems installed during tax years beginning on or after January 1, 2012, but before January 1, 2014. The credit is equal to the sum of the following federal tax credits: a. Fifty percent of the federal energy credit provided in Section 48(a)(2)(A)(i)(II) of the Internal Revenue Code. b. Fifty percent of the federal energy credit provided in Section 48(a)(2)(A)(i)(III) of the Internal Revenue Code.The amount of tax credit claimed by a taxpayer related to paragraphs 52.44(2)“a”52.44(3)“a” and “b” cannot exceed $15,000 for a tax year.The federal energy tax credits for solar energy systems are allowed for installations that are placed in service before January 1, 2014. The solar energy system must be placed in service on or after January 1, 2012, to qualify for the Iowa credit. If the taxpayer installed a solar energy system and initially reported the federal tax credit for a tax year beginning prior to January 1, 2012, no Iowa credit will be allowed. 52.(3) 52.44(4) Calculation of credit for systems installed during tax years beginning on or after January 1, 2014, butand installed before January 1, 20172016. The credit is equal to the sum of the following federal tax credits: a. Sixty percent of the federal energy credit provided in Section 48(a)(2)(A)(i)(II) of the Internal Revenue Code. b. Sixty percent of the federal energy credit provided in Section 48(a)(2)(A)(i)(III) of the Internal Revenue Code.The amount of tax credit claimed by a taxpayer related to paragraphs 52.44(3)“a”52.44(4)“a” and “b” cannot exceed $20,000 for a tax yearper separate and distinct installation. The term “separate and distinct installation” is described in subrule 52.44(7).The federal energy tax credit for solar energy systems is allowed for installations that are placed in service on or before December 31, 2016. Therefore, the Iowa tax credit is available for installations placed in service before January 1, 2017. If the federal energy tax credit is extended to installations placed in service on or after January 1, 2017, the Iowa credit will also be extended. 52.44(5) Calculation of credit for systems installed on or after January 1, 2016. The credit is equal to the sum of the following federal tax credits: a. Fifty percent of the federal energy credit provided in Section 48(a)(2)(A)(i)(II) of the Internal Revenue Code. This credit applies to property the construction of which begins before January 1, 2022, in accordance with Public Law No. 114-113 Div. P, Title III, § 303. b. Fifty percent of the federal energy credit provided in Section 48(a)(2)(A)(i)(III) of the Internal Revenue Code. This credit is set to expire December 31, 2016, in accordance with Public Law No. 114-113, Div. Q, Title I, § 187.The amount of tax credit claimed by a taxpayer related to paragraphs 52.44(5)“a” and “b” cannot exceed $20,000 per separate and distinct installation. “Separate and distinct installation” is described in subrule 52.44(7). 52.(4) 52.44(6) Application for the tax credit.Tax credit award limitations. No more than $1.5 million of tax credits for solar energy systems are allowed for tax years 2012 and 2013. The $1.5 million cap also includes the solar energy system tax credits provided in rule 701—42.48(422) for individual income tax. No more than $4.5 million of tax credits for solar energy systems is allowed for each of the tax years 2014 to 2016. The $4.5 million cap does not include any dollars allocated to a previous tax year that roll over to the 2015 and 2016 tax years.The following limitations apply: a. Aggregate tax credit award limit.No more than $5 million of tax credits will be issued for calendar years beginning on or after January 1, 2015.The $4.5 millionannual tax credit allocation cap also includes the solar energy system tax credits provided in rule 701—42.48(422) for individual income tax and in rule 701—58.22(422) for franchise tax. Awards are made on a first-come, first-served basis. b. Allocation for residential installations.AtBeginning with tax year 2014, at least $1 million of the $4.5 millionannual tax credit allocation cap for the 2014 to 2016each tax yearsyear is reserved for residential installations. If the total amount of credits for residential installations for a tax year is less than $1 million, the remaining amount below $1 million will be allowed for nonresidential installations. c. Rollover of unallocated credits.IfBeginning with calendar year 2014, if the $4.5 millionannual tax credit allocation cap for the 2014 and 2015 tax years is not reached, the remaining amount below $4.5 millionthe cap will be allowed to be carried forward to the following tax year and shall not count toward the cap for that tax year. 52.44(7) How to apply for the credit. Timely and complete applications shall be reviewed and approved on a first-come, first-served basis. Applications for the tax credit may be submitted through the Tax Credit Award, Claim, and Transfer Administration System (CACTAS), which applicants may access through the department’s Web site. a. Separate and distinct installation requirement.A taxpayer may claimapply for one tax credit for each separate and distinct solar installation.Each separate and distinct installation requires a separate application. In order for an installation to be considered a separate and distinct solar installation, both of the following factors must be met: (1) Each installation must be eligible for the federal energy credit as provided in subrule 52.44(3)52.44(1). (2) Each installation must have separate metering. b. Application deadline.In order to request the tax credit, a taxpayer must complete an application for the solar energy tax credit for each separate and distinct installation. For installations completed on or after January 1, 2014, the application must be filed by May 1 following the year of installation of the solar energy system.Notwithstanding the foregoing sentence, the following extensions are applicable to installations completed in 2014 and 2015: (1) Solar energy systems installed during the 2014 calendar year shall be eligible for approval under Iowa Code section 422.11L even if the application is filed after May 1, 2015. Valid and complete applications shall be accepted and approved on a first-come, first-served basis and shall first be eligible for approval for the tax year during which the application is received, but not before the tax year beginning January 1, 2016. (2) Solar energy systems installed during the 2015 calendar year shall be eligible for approval under Iowa Code section 422.11L even if the application is filed after May 1, 2016. Valid and complete applications shall be accepted and approved on a first-come, first-served basis and shall first be eligible for approval for the tax year during which the application is received, but not before the tax year beginning January 1, 2017. c. Contents of the application.The application must contain the following information: (1) Name, address and federal identification number of the taxpayer. (2) Date of installation of the solar energy system. (3) The kilowatt capacity of the solar energy system. (4) Copies of invoices or other documents showing the cost of the solar energy system. (5) Amount of federal income tax credit for the solar energy system. (6) Amount of Iowa tax credit requested. (7) A completion sheet from a local utility companyor similar documentation verifying thatinstallation of the system has been placed in servicecompleted.The completion sheet must indicate the date the system was placed in service. If a completion sheet is not available from the local utility companyor similar documentation is not available, a statement shall be provided that is similar to the one required to be attached to federal Form 3468 when claiming the federal energy credit and that specifies the date the system was placed in service. (8) For leased solar energy systems where the lessor is the applicant, the lessor should also provide a copy of the solar energy system lease that indicates the property that is the subject of the lease and the parties to the lease agreement. If the lessor is entitled to the Iowa solar energy system tax credit, the lessee will not be entitled to such a credit. d. Waitlist.If the department receives applications for tax credits in excess of the annual aggregate award limitation, the department shall establish a waitlist for the next year’s allocation of tax credits. The applications will be prioritized based on the date the department received the applications and shall first be funded in the order listed on the waitlist. With the exception of the extension described in subparagraphs 52.44(7)“b”(1) and (2) above, only valid applications filed by the taxpayer by May 1 of the year following the year of the installation of the solar energy property shall be eligible for the waitlist. If the annual aggregate cap is reached for the final year in which the federal credit is available, no applications will be carried over to the next year.Placement on a waitlist shall not constitute a promise binding the state that persons placed on the waitlist will actually receive the credit in a future year. The availability of a tax credit and approval of a tax credit application pursuant to subrule 52.44(7) in a future year is contingent upon the availability of tax credits in that particular year. c. e. Certificate issuance.If the application is approved, the department will send a letter to the taxpayer including the amount of the tax credit and providing a tax credit certificate number. f. Claiming the tax credit.The solar energy system tax credit will be claimed on Form IA 148, Tax Credits Schedule. Any tax credit in excess of the tax liability for the tax year may be credited to the tax liability for the following ten years or until used, whichever is the earlier. The taxpayer must include federal Form 3468, Investment Credit, with any Iowa tax return claiming the solar energy system tax credit.If the department receives applications for tax credits in excess of the $1.5 million available for 2012 and 2013 and the $4.5 million available for 2014 to 2016, the applications will be prioritized by the date the department received the applications. If the number of applications exceeds the $1.5 or $4.5 million of tax credits available, the department shall establish a wait list for the next year’s allocation of tax credits and the applications shall first be funded in the order listed on the wait list. However, if the $4.5 million cap of tax credit is reached for 2016, no applications in excess of the $4.5 million cap will be carried over to the next year, assuming there is no extension of the federal credit. g. Refundability.Any credit in excess of the taxpayer’s tax liability is nonrefundable. h. Carryforward.Any tax credit in excess of the taxpayer’s tax liability for the tax year may be credited to the taxpayer’s tax liability for the following ten years or until depleted, whichever is earlier. i. Transferability.The credit may not be transferred to any other person. 52.() 52.44(8) Unavailable to those eligible for renewable energy credit. d. A taxpayer who is eligible to receive a renewable energy tax credit provided in rule 701—52.27(422,476C) is not eligible for the solar energy system tax credit. 52.(5) 52.44(9) Allocation of tax credit to owners of a business entityor beneficiaries of an estate or trust. If the taxpayer claiming the tax credit based on a percentage of the federal energy credit under Section 48 of the Internal Revenue Code is a partnership, limited liability company, S corporation, estate or trust electing to have income taxed directly to the individual, the individual may claim the tax credit. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings of the partnership, limited liability company, S corporation, estate or trust. The maximum amount of credit available to a partnership, limited liability company, S corporation, estate or trust shall be limited to $15,000 for installations placed in service in tax years 2012 and 2013 and $20,000 for installations placed in service in tax yearsbeginning on or after January 1, 2014 to 2016. This rule is intended to implement Iowa Code section 422.33 as amended by 2014 Iowa Acts, House File 2473, section 762015 Iowa Acts, chapter 124, and 2016 Iowa Acts, House File 2468. [Filed 1/13/17, effective 3/8/17][Published 2/1/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/1/17.ARC 2928CRevenue Department[701]Adopted and FiledPursuant to the authority of Iowa Code section 422.68 and Iowa Code section 404A.6 as amended by 2016 Iowa Acts, House File 2443, the Department of Revenue hereby amends Chapter 42, “Adjustments to Computed Tax and 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 are necessary to implement the changes to the Historic Preservation and Cultural and Entertainment District Tax Credit Program that resulted from 2016 Iowa Acts, House File 2443. House File 2443 transferred primary responsibility for administration of the program for all projects registered on or after August 15, 2016, from the Department of Cultural Affairs to the Economic Development Authority. House File 2443 also retroactively made the tax credit refundable in the hands of a transferee and provided a five-year carryforward period for nonrefundable tax credits. These amendments reflect those changes. These amendments also implement additional changes in response to program user feedback and questions. In response to feedback, these amendments provide more detail on the parameters for transferring tax credits and update the rules on when a taxpayer may claim the tax credit to provide more flexibility to program users. For proposed rules related to the historic preservation and cultural and entertainment district tax credits and other related information, see Economic Development Authority Notice of Intended Action ARC 2774C (IAB 10/12/16). Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2806C on November 9, 2016. A public hearing was held on December 1, 2016, at 9:30 a.m. in the Wallace State Office Building Auditorium at 502 East Ninth Street, Des Moines, Iowa. The Department received one public comment. The public comment was supportive of the proposed amendments. In subrules 42.55(4) and 52.48(4), the reference to Iowa Code section 404A.1(6) has been updated to Iowa Code section 404A.1(7) to reflect the codification of 2016 Iowa Acts, House File 2443. These amendments are otherwise identical to those published under Notice. 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 adopted these amendments on December 14, 2016. These amendments have no known impact on jobs. These amendments are intended to implement Iowa Code chapter 404A as amended by 2016 Iowa Acts, House File 2443. These amendments will become effective March 8, 2017. The following amendments are adopted.
ITEM 1. Amend rule 701—42.54(404A,422) as follows:701—42.54(404A,422) Historic preservation and cultural and entertainment district tax credit for projects with Part 2 applications approvedregistered on or after July 1, 2014, and agreements entered into on or after July 1, 2014and before August 15, 2016. TheFor projects registered before August 15, 2016, the department of cultural affairs is authorized by the general assembly to award tax credits for a percentage of the qualified rehabilitation expenditures on a qualified rehabilitation project as described in the historic preservation and cultural and entertainment district tax credit program, Iowa Code chapter 404A. The program is administered by the department of cultural affairs with the assistance of the department of revenue. The general assembly has mandated that the department of cultural affairs and the department of revenue adopt rules to jointly administer Iowa Code chapter 404A. In general, the department of cultural affairs is responsible for evaluating whether projects comply with the prescribed standards for rehabilitation while the department of revenue is responsible for evaluating whether projects comply with the tax aspects of the program.2014 Iowa Acts, House File 2453, amended the historic preservation and cultural and entertainment district tax credit program effective July 1, 2014. The department of revenue’s provisions for projects with Part 2 applications approved and tax credits reserved prior to July 1, 2014, are found in rule 701—42.19(404A,422). The department of revenue’s provisions for projects with Part 2 applications approvedregistered on or after July 1, 2014, and with agreements entered into on or after July 1, 2014and before August 15, 2016, are found in this rule. The department of cultural affairs’ rules related to this program may be found at 223—Chapter 48. Division I of 223—Chapter 48 applies to projects with tax credit reservations approved prior to July 1, 2014. Division II of 223—Chapter 48 applies to projects with Part 2 applications approved on or after July 1, 2014, and agreements entered into on or after July 1, 2014.2016 Iowa Acts, House File 2443, amended the program and transferred primary responsibility for its administration to the economic development authority effective August 15, 2016. Effective August 15, 2016, the program is administered by the economic development authority with the assistance of the department of cultural affairs and the department of revenue. The department of revenue’s provisions for projects registered on or after August 15, 2016, are found in rule 701—42.55(404A,422). The economic development authority’s rules related to the program may be found at 261—Chapter 49. When adopted, the department of cultural affairs’ rules related to the program will be found in 223—Chapter 48.Notwithstanding anything contained herein to the contrary, the department of cultural affairs shall not reserve tax credits under 2013 Iowa Code chapter 404A as amended by 2013 Iowa Acts, chapter 112, section 1, for applicants that do not have an approved Part 2 application and a tax credit reservation on or before June 30, 2014. Projects with approved Part 2 applications and provisional tax credit reservations on or before June 30, 2014, shall be governed by 2013 Iowa Code chapter 404A as amended by 2013 Iowa Acts, chapter 112, section 1; by 223—Chapter 48, Division I; and by rule 701—42.19(404A,422). Projects for which Part 2 applications were approved and agreements entered intoregistered on or after June 30July 1, 2014,but before August 15, 2016, shall be governed by 2014 IowaCode chapter 404A as amended by 2014 Iowa Acts, House File 2453; by 223—Chapter 48, Division II; and by this rule.Projects registered on or after August 15, 2016, shall be governed by 2016 Iowa Code chapter 404A as amended by 2016 Iowa Acts, House File 2443; by 261—Chapter 49; and by rule 701—42.55(404A,422). 42.54(1) Application, registration, and agreement for the historic preservation and cultural and entertainment district tax credit. Taxpayers that want to claim an income tax credit for completing a qualified rehabilitation project must submit an application for approval of the project. The application forms and instructions for the historic preservation and cultural and entertainment district tax credit are available on the department of cultural affairs’ Web site. Once a project is registered, the taxpayer must enter into an agreement with the department of cultural affairs to be eligible for the credit. 42.54(2) Computation of the amount of the historic preservation and cultural and entertainment district tax credit. The amount of the historic preservation and cultural and entertainment district tax credit is a maximum of 25 percent of the qualified rehabilitation expenditures verified by the department of cultural affairs and the department of revenue following project completion, up to the amount specified in the agreement between the taxpayer and the department of cultural affairs. 42.54(3) Qualified rehabilitation expenditures. “Qualified rehabilitation expenditures” means the same as defined in rule 223—48.22(404A) of the historical division of the department of cultural affairs. In general, the department of cultural affairs evaluates whether expenditures comply with the prescribed standards for rehabilitation while the department of revenue evaluates whether expenditures comply with the tax requirements to be considered qualified rehabilitation expenditures, including whether the expenditures are in accordance with the requirements of Internal Revenue Code Section 47 and its related regulations. a. Type of property and services eligible.In accordance with Iowa Code section 404A.1(6), the types of property and services claimed for the state tax credit must be “qualified rehabilitation expenditures” in accordance with Internal Revenue Code Section 47. Notwithstanding the foregoing sentence, expenditures incurred by an eligible taxpayer that is a nonprofit organization as defined in Iowa Code section 404A.1(4) shall be considered “qualified rehabilitation expenditures” if they are for “structural components,” as that term is defined in Treasury Regulation § 1.48-1(e)(2), and for amounts incurred for architectural and engineering fees, site survey fees, legal expenses, insurance premiums, development fees and other construction-related costs. b. Effect of financing sources on eligibility of expenditures.Qualified rehabilitation expenditures do not include expenditures financed by federal, state, or local government grants or forgivable loans unless otherwise allowed under Section 47 of the Internal Revenue Code. For an eligible taxpayer that is a nonprofit organization as defined in Iowa Code section 404A.1(4) that is not eligible for the federal rehabilitation credit, or another person that is not eligible for the federal rehabilitation credit, expenditures financed with federal, state, or local government grants or forgivable loans are not qualified rehabilitation expenditures. 42.54(4) Completion of the qualified rehabilitation project and claiming the tax credit on the Iowa return. After the taxpayer completes a qualified rehabilitation project, the taxpayer will be issued a certificate of completion of the project from the department of cultural affairs if the project complies with the federal standards, as defined in rule 223—48.22(404A). After the department of cultural affairs and the department of revenue verify the taxpayer’s eligibility for the tax credit, the department of cultural affairs shall issue a tax credit certificate. a. Claiming the credit.For the taxpayer to claim the credit, the certificate must be included with the taxpayer’s income tax return for the tax year in which the rehabilitation project is completed or the year in which the certificate is issued, whichever is laterthe income tax return for any tax year within the five years following the tax year of project completion. Taxpayers that elect to delay claiming the credit to a later tax year return as described in this paragraph are subject to the carryforward limitations described in paragraph 42.54(4)“d” below. The credit may be claimed on an amended return so long as the amended return is filed within the statute of limitations applicable to the tax year for which the amended tax return is being filed. a. b. Information required.The tax credit certificate shall include the taxpayer’s name, the taxpayer’s address, the taxpayer’s tax identification number, the address or location of the rehabilitation project, the date the project was completed,and the amount of the historic preservation and cultural and entertainment district tax credit, and, if applicable, an indication of whether the credit is nonrefundable (see paragraph 42.54(4)“c” below). In addition, the tax credit certificate shall include a place for the name and tax identification number of a transferee and the amount of the tax credit being transferred, as provided in subrule 42.54(5). In addition, if the taxpayer is a partnership, limited liability company, estate or trust, and the tax credit is allocated to the owners or beneficiaries of the entity, a list of the owners or beneficiaries and the amount of credit allocated to each owner or beneficiary shall be provided with the certificate. The tax credit certificate shall be included with the income tax return for the period in which the project was completed or in which the certificate is issued, whichever is later. b. c. Refund or carryforwardRefundability.AnyA historic preservation and cultural and entertainment district tax credit in excess of the taxpayer’s tax liability is fully refundable with interest computed under Iowa Code section 422.25. In lieu of claiming the refund, the taxpayer may elect to have the overpayment credited to the tax liability for the following tax year.To receive a refundable credit, the taxpayer must elect to receive the credit as refundable at the Part 3 stage of the application process administered by the department of cultural affairs. Once the taxpayer elects to receive a nonrefundable credit, the taxpayer cannot elect to change the credit to a refundable credit or vice versa. See department of cultural affairs’ 223—Chapter 48. If the taxpayer is a transferee, the taxpayer may elect to receive the credit as refundable or nonrefundable when the taxpayer applies to the department of revenue for transfer of the tax credit as described in subrule 42.54(5). d. Carryforward.If the taxpayer elects to receive a nonrefundable historic preservation and cultural and entertainment district tax credit as described in paragraph 42.54(4)“b,” the amount in excess of the taxpayer’s tax liability may be carried forward for five years following the tax year in which the project is completed, or until it is depleted, whichever is earlier. A tax credit shall not be carried back to a tax year prior to the tax year in which the taxpayer is first eligible to claim the credit. Regardless of whether the taxpayer elects to claim the tax credit on a tax return for a year that is later than the year of project completion as described in paragraph 42.54(4)“a,” the taxpayer must utilize the entire credit within five years following the tax year of the project completion as described in this paragraph; any credit amount that is not utilized within the five-year carryforward period is forfeited. The five-year carryforward limitation does not apply if the taxpayer elects to receive a refundable credit, the excess of which may be credited to future tax years as an overpayment. c. e. Allocation of historic preservation and cultural and entertainment district tax credits to the individual owners of the entityor beneficiaries of an estate or trust.A partnership, limited liability company or S corporation may designate the amount of the tax credit to be allocated to each partner, member or shareholder. The credit does not have to be allocated based on the pro rata share of earnings of the partnership, limited liability company or S corporation.For an individual claiming a tax credit of an estate or trust, the amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings from the estate or trust. 42.54(5) Transfer of the historic preservation and cultural and entertainment district tax credit. The historic preservation and cultural and entertainment district tax credit certificates may be transferred to any person or entity. The transferee may use the amount of the tax credit transferred against the taxes imposed in Iowa Code chapter 422, divisions II, III, and V, and in Iowa Code chapter 432, for any tax year the original transferor could have claimed the tax credit. Any credit in excess of the transferee’s tax liability is not refundable.Transferees must elect to receive either a refundable or nonrefundable tax credit. Once the transferee elects to receive a nonrefundable credit, the transferee cannot elect to change the credit to a refundable credit or vice versa. A tax credit certificate of less than $1,000 shall not be transferable. a. Transfer process—information required.Within 90 days of transfer of the tax credit certificate, the transferee must submit the transferred tax credit certificate to the department of revenue along with a statement that contains the transferee’s name, address and tax identification number, the amount of the tax credit being transferred,an election to receive either a refundable or nonrefundable tax credit, and the amount of all consideration provided in exchange for the tax credit and the names of recipients of any consideration provided in exchange for the tax credit. If a payment of money was any part of the consideration provided in exchange for the tax credit, the transferee shall list the amount of the payment of money in its statement to the department of revenue. If any part of the consideration provided in exchange for the tax credit included nonmonetary consideration, including but not limited to any promise, representation, performance, discharge of debt or nonmonetary rights or property, the tax credit transferee shall describe the nature of the nonmonetary consideration and disclose any value the transferor and transferee assigned to the nonmonetary consideration. The tax credit transferee must indicate on its statement to the department of revenue if no consideration was provided in exchange for the tax credit. Within 30 days of receiving the transferred tax credit certificate and the statement from the transferee, the department of revenue will issue the replacement tax credit certificate to the transferee. If the transferee is a partnership, limited liability company or S corporation, the transferee shall provide a list of the partners, members or shareholders and information on how the historic preservation and cultural and entertainment district tax credit should be divided among the partners, members or shareholders. The transferee shall also provide the tax identification numbers and addresses of the partners, members or shareholders. The certificate must have the same information required for the original tax certificate and must have the same expiration date as the original tax credit certificate. The transferee may not claim a tax credit until a replacement certificate identifying the transferee as the proper holder has been issued. b. Consideration.Any consideration received for the transfer of the tax credit shall not be included in Iowa taxable income for individual income, corporation income or franchise tax purposes. Any consideration paid for the transfer of the tax credit shall not be deducted from Iowa taxable income for individual income, corporation income or franchise tax purposes. c. Unlimited number of transferees and subsequent transfers.There is no limitation on the number of transferees to whom the credit may be transferred. There is no limitation on the number of times that the credit may be retransferred by a transferee. The transferor may divide the credit into multiple credits of alternate denominations so long as the resulting credits are for amounts of no less than $1,000. d. Carryforward limitations on transferees.The transferee may use the amount of the transferred tax credit for any tax year that the original transferor could have claimed the tax credit. The carryforward limitations described in paragraph 42.54(4)“d” shall apply. 42.54(6) Appeals. Challenges to an action by the department of revenue related to tax credit transfers, the claiming of tax credits, tax credit revocation, or repayment or recovery of tax credits must be brought pursuant to 701—Chapter 7. This rule is intended to implement Iowa Code chapter 404A as amended by 20142016 Iowa Acts, House File 24532443, and Iowa Code section 422.11D. ITEM 2. Adopt the following new rule 701—42.55(404A,422):701—42.55(404A,422) Historic preservation and cultural and entertainment district tax credit for projects registered on or after August 15, 2016. The economic development authority is authorized by the general assembly to award tax credits for a percentage of the qualified rehabilitation expenditures on a qualified rehabilitation project as described in the historic preservation and cultural and entertainment district tax credit program, Iowa Code chapter 404A. The program is administered by the economic development authority with the assistance of the department of cultural affairs and the department of revenue. The general assembly has mandated that the economic development authority, the department of cultural affairs and the department of revenue adopt rules as necessary to administer Iowa Code chapter 404A. In general, the department of revenue is responsible for administering tax credit transfers and processing and auditing tax credits claimed on returns. For the economic development authority’s rules on the credit program, see 261—Chapter 49. For the department of cultural affairs’ rules on the credit program, see 223—Chapter 48. 42.55(1) Program transition. 2016 Iowa Acts, House File 2443, made several changes to the credit program, including transferring primary responsibility for the program’s administration from the department of cultural affairs to the economic development authority. Projects registered prior to August 15, 2016, remain under the purview of the department of cultural affairs, with assistance from the department of revenue. For department of revenue rules related to projects registered prior to August 15, 2016, see rules 701—42.54(404A,422) and 701—42.19(404A,422). 42.55(2) Application, registration, and agreement for the historic preservation and cultural and entertainment district tax credit. For rules on the application, registration, and agreement process, see economic development authority rules, 261—Chapter 49. 42.55(3) Computation of the amount of the historic preservation and cultural and entertainment district tax credit. The amount of the historic preservation and cultural and entertainment district tax credit is a maximum of 25 percent of the qualified rehabilitation expenditures verified by the economic development authority following project completion, up to the amount specified in the agreement between the taxpayer and the economic development authority. For more information on the credit computation, see economic development authority rules, 261—Chapter 49. The amount remains subject to audit by the department of revenue when the credit is claimed on the taxpayer’s tax return. 42.55(4) Qualified rehabilitation expenditures. “Qualified rehabilitation expenditures” means the same as defined in Iowa Code section 404A.1(7) and rule 261—49.5(404A) of economic development authority rules. In the event of an audit, the department of revenue evaluates whether expenditures comply with the agreement between the economic development authority and the eligible taxpayer, as well as with applicable statutes and rules, including Internal Revenue Code Section 47 and its related regulations. 42.55(5) Completion of the qualified rehabilitation project and claiming the tax credit. After the economic development authority verifies the taxpayer’s eligibility for the tax credit, the economic development authority shall issue a tax credit certificate. For more information on credit certificate issuance, see economic development authority rules, 261—Chapter 49. a. Claiming the credit.For the taxpayer to claim the credit, the certificate must be included with the taxpayer’s income tax return for the tax year in which the rehabilitation project is completed or the income tax return for any year within the five years following the year of project completion. Taxpayers that elect to delay claiming the credit to a later year’s return as described in this paragraph are subject to the carryforward limitations described in paragraph 42.55(5)“d” below. The credit may be claimed on an amended return so long as the amended return is filed within the statute of limitations applicable to the tax year for which the amended tax return is being filed. b. Information required.The tax credit certificate shall include the taxpayer’s name, the taxpayer’s address, the taxpayer’s tax identification number, the address or location of the rehabilitation project, the date the project was completed, the amount of the historic preservation and cultural and entertainment district tax credit, and, if applicable, an indication of whether the credit is nonrefundable (see paragraph 42.55(5)“c” below). In addition, the tax credit certificate shall include a place for the name and tax identification number of a transferee and the amount of the tax credit being transferred, as provided in subrule 42.55(6). In addition, if the taxpayer is a partnership, limited liability company, estate or trust, and the tax credit is allocated to the owners or beneficiaries of the entity, a list of the owners or beneficiaries and the amount of credit allocated to each owner or beneficiary shall be provided with the certificate. c. Refundability.A historic preservation and cultural and entertainment district tax credit in excess of the taxpayer’s tax liability is fully refundable with interest computed under Iowa Code section 422.25. In lieu of claiming the refund, the taxpayer may elect to have the overpayment credited to the tax liability for the following tax year. To receive a refundable credit, the taxpayer must elect to receive the credit as refundable at the Part 3 stage of the application process administered by the economic development authority. See the economic development authority’s rule 261—49.15(404A). Once the taxpayer elects to receive a nonrefundable credit, the taxpayer cannot elect to change the credit to a refundable credit or vice versa. If the taxpayer is a transferee, the taxpayer may elect to receive the credit as refundable when the taxpayer applies to the department of revenue for transfer of the tax credit as described in subrule 42.55(6). d. Carryforward.If the taxpayer elects to receive a nonrefundable historic preservation and cultural and entertainment district tax credit as described in paragraph 42.55(5)“b,” the amount in excess of the taxpayer’s tax liability may be carried forward for five years following the tax year in which the project is completed, or until it is depleted, whichever is earlier. A tax credit shall not be carried back to a tax year prior to the tax year in which the taxpayer is first eligible to claim the credit. Regardless of whether the taxpayer elects to claim the tax credit on a tax return for a year that is later than the year of project completion as described in paragraph 42.55(5)“a,” the taxpayer must utilize the entire credit within five years following the tax year of the project completion as described in this paragraph; any credit amount that is not utilized within the five-year carryforward period is forfeited. The five-year carryforward limitation does not apply if the taxpayer elects to receive a refundable credit, the excess of which may be credited to future tax years as an overpayment. e. Allocation of historic preservation and cultural and entertainment district tax credits to the individual owners of the entity or beneficiaries of an estate or trust.A partnership, limited liability company or S corporation may designate the amount of the tax credit to be allocated to each partner, member or shareholder. The credit does not have to be allocated based on the pro rata share of earnings of the partnership, limited liability company or S corporation. For an individual claiming a tax credit of an estate or trust, the amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings from the estate or trust. 42.55(6) Transfer of the historic preservation and cultural and entertainment district tax credit. The historic preservation and cultural and entertainment district tax credit certificates may be transferred to any person or entity. The transferee may use the amount of the tax credit transferred against the taxes imposed in Iowa Code chapter 422, divisions II, III, and V, and in Iowa Code chapter 432, for any tax year that the original transferor could have claimed the tax credit. Transferees must elect to receive either a refundable or nonrefundable tax credit. Once the transferee elects to receive a nonrefundable credit, the transferee cannot elect to change the credit to a refundable credit or vice versa. A tax credit certificate of less than $1,000 shall not be transferable. a. Transfer process—information required.Within 90 days of transfer of the tax credit certificate, the transferee must submit the transferred tax credit certificate to the department of revenue along with a statement that contains the transferee’s name, address and tax identification number, the amount of the tax credit being transferred, an election to receive either a refundable or nonrefundable tax credit, and the amount of all consideration provided in exchange for the tax credit and the names of recipients of any consideration provided in exchange for the tax credit. If a payment of money was any part of the consideration provided in exchange for the tax credit, the transferee shall list the amount of the payment of money in its statement to the department of revenue. If any part of the consideration provided in exchange for the tax credit included nonmonetary consideration, including but not limited to any promise, representation, performance, discharge of debt or nonmonetary rights or property, the tax credit transferee shall describe the nature of the nonmonetary consideration and disclose any value the transferor and transferee assigned to the nonmonetary consideration. The tax credit transferee must indicate on its statement to the department of revenue if no consideration was provided in exchange for the tax credit. Within 30 days of receiving the transferred tax credit certificate and the statement from the transferee, the department of revenue will issue the replacement tax credit certificate to the transferee. If the transferee is a partnership, limited liability company or S corporation, the transferee shall provide a list of the partners, members or shareholders and information on how the historic preservation and cultural and entertainment district tax credit should be divided among the partners, members or shareholders. The transferee shall also provide the tax identification numbers and addresses of the partners, members or shareholders. The certificate must have the same information required for the original tax credit certificate and must have the same expiration date as the original tax credit certificate. The transferee may not claim a tax credit until a replacement certificate identifying the transferee as the proper holder has been issued. b. Consideration.Any consideration received for the transfer of the tax credit shall not be included in Iowa taxable income for individual income, corporation income or franchise tax purposes. Any consideration paid for the transfer of the tax credit shall not be deducted from Iowa taxable income for individual income, corporation income or franchise tax purposes. c. Unlimited number of transferees and subsequent transfers.There is no limitation on the number of transferees to whom the credit may be transferred. There is no limitation on the number of times that the credit may be retransferred by a transferee. The transferor may divide the credit into multiple credits of alternate denominations so long as the resulting credits are for amounts of no less than $1,000. d. Carryforward limitations on transferees.The transferee may use the amount of the transferred tax credit for any tax year that the original transferor could have claimed the tax credit. The carryforward limitations described in paragraph 42.55(4)“d” shall apply. 42.55(7) Appeals. Challenges to an action by the department of revenue related to tax credit transfers, the claiming of tax credits, tax credit revocation, or repayment or recovery of tax credits must be brought pursuant to 701—Chapter 7. This rule is intended to implement Iowa Code chapter 404A as amended by 2016 Iowa Acts, House File 2443, and Iowa Code section 422.11D. ITEM 3. Amend rule 701—52.47(404A,422) as follows:701—52.47(404A,422) Historic preservation and cultural and entertainment district tax credit for projects with Part 2 applications approvedregistered on or after July 1, 2014, and agreements entered into on or after July 1, 2014and before August 15, 2016. TheFor projects registered before August 15, 2016, the department of cultural affairs is authorized by the general assembly to award tax credits for a percentage of the qualified rehabilitation expenditures on a qualified rehabilitation project as described in the historic preservation and cultural and entertainment district tax credit program, Iowa Code chapter 404A. The program is administered by the department of cultural affairs with the assistance of the department of revenue. The general assembly has mandated that the department of cultural affairs and the department of revenue adopt rules to jointly administer Iowa Code chapter 404A. In general, the department of cultural affairs is responsible for evaluating whether projects comply with the prescribed standards for rehabilitation while the department of revenue is responsible for evaluating whether projects comply with the tax aspects of the program.2014 Iowa Acts, House File 2453, amended the historic preservation and cultural and entertainment district tax credit program effective July 1, 2014. The department of revenue’s provisions for projects with Part 2 applications approved and tax credits reserved prior to July 1, 2014, are found in rule 701—52.18(404A,422). The department of revenue’s provisions for projects with Part 2 applications approvedregistered on or after July 1, 2014, and with agreements entered into on or after July 1, 2014and before August 15, 2016, are found in this rule. The department of cultural affairs’ rules related to this program may be found at 223—Chapter 48. Division I of 223—Chapter 48 applies to projects with reservations approved prior to July 1, 2014. Division II of 223—Chapter 48 applies to projects with Part 2 applications approved on or after July 1, 2014, and agreements entered into on or after July 1, 2014.2016 Iowa Acts, House File 2443, amended the program and transferred primary responsibility for its administration to the economic development authority effective August 15, 2016. Effective August 15, 2016, the program is administered by the economic development authority with the assistance of the department of cultural affairs and the department of revenue. The department of revenue’s provisions for projects registered on or after August 15, 2016, are found in rule 701—52.48(404A,422). The economic development authority’s rules related to the program may be found at 261—Chapter 49. When adopted, the department of cultural affairs’ rules related to the program will be found in 223—Chapter 48.Notwithstanding anything contained herein to the contrary, the department of cultural affairs shall not reserve tax credits under 2013 Iowa Code chapter 404A as amended by 2013 Iowa Acts, chapter 112, section 1, for applicants that do not have an approved Part 2 application and a tax credit reservation on or before June 30, 2014. Projects with approved Part 2 applications and provisional tax credit reservations on or before June 30, 2014, shall be governed by 2013 Iowa Code chapter 404A as amended by 2013 Iowa Acts, chapter 112, section 1; by 223—Chapter 48, Division I; and by rule 701—52.18(404A,422). Projects for which Part 2 applications were approved and agreements entered intoregistered on or after June 30July 1, 2014,but before August 15, 2016, shall be governed by 2014 Iowa Acts, House File 2453; by 223—Chapter 48, Division II; and by this rule.Projects registered on or after August 15, 2016, shall be governed by 2016 Iowa Code chapter 404A as amended by 2016 Iowa Acts, House File 2443; by 261—Chapter 49; and by rule 701—52.48(404A,422). 52.47(1) Application, registration, and agreement for the historic preservation and cultural and entertainment district tax credit. Taxpayers that want to claim a corporation income tax credit for completing a qualified rehabilitation project must submit an application for approval of the project. The application forms and instructions for the historic preservation and cultural and entertainment district tax credit are available on the department of cultural affairs’ Web site. Once a project is registered, the taxpayer must enter into an agreement with the department of cultural affairs to be eligible for the credit. 52.47(2) Computation of the amount of the historic preservation and cultural and entertainment district tax credit. The amount of the historic preservation and cultural and entertainment district tax credit is a maximum of 25 percent of the qualified rehabilitation expenditures verified by the department of cultural affairs and the department of revenue following project completion, up to the amount specified in the agreement between the taxpayer and the department of cultural affairs. 52.47(3) Qualified rehabilitation expenditures. “Qualified rehabilitation expenditures” means the same as defined in rule 223—48.22(404A) of the historical division of the department of cultural affairs. In general, the department of cultural affairs evaluates whether expenditures comply with the prescribed standards for rehabilitation while the department of revenue evaluates whether expenditures comply with the tax requirements to be considered qualified rehabilitation expenditures, including whether the expenditures are in accordance with the requirements of Internal Revenue Code Section 47 and its related regulations. a. Type of property and services eligible.In accordance with Iowa Code section 404A.1(6), the types of property and services claimed for the state tax credit must be “qualified rehabilitation expenditures” in accordance with Internal Revenue Code Section 47. Notwithstanding the foregoing sentence, expenditures incurred by an eligible taxpayer that is a nonprofit organization as defined in Iowa Code section 404A.1(4) shall be considered “qualified rehabilitation expenditures” if they are for “structural components,” as that term is defined in Treasury Regulation § 1.48-1(e)(2), and for amounts incurred for architectural and engineering fees, site survey fees, legal expenses, insurance premiums, development fees and other construction-related costs. b. Effect of financing sources on eligibility of expenditures.Qualified rehabilitation expenditures do not include expenditures financed by federal, state, or local government grants or forgivable loans unless otherwise allowed under Section 47 of the Internal Revenue Code. For an eligible taxpayer that is a nonprofit organization as defined in Iowa Code section 404A.1(4) that is not eligible for the federal rehabilitation credit, or another person that is not eligible for the federal rehabilitation credit, expenditures financed with federal, state, or local government grants or forgivable loans are not qualified rehabilitation expenditures. 52.47(4) Completion of the qualified rehabilitation project and claiming the tax credit on the Iowa return. After the taxpayer completes a qualified rehabilitation project, the taxpayer will be issued a certificate of completion of the project from the department of cultural affairs if the project complies with the federal standards, as defined in rule 223—48.22(404A). After the department of cultural affairs and the department of revenue verify the taxpayer’s eligibility for the tax credit, the department of cultural affairs shall issue a tax credit certificate. a. Claiming the credit.For the taxpayer to claim the credit, the certificate must be included with the taxpayer’s corporation income tax return for the tax year in which the rehabilitation project is completed or the year in which the certificate is issued, whichever is laterthe corporation income tax return for any tax year within the five years following the tax year of project completion. Taxpayers that elect to delay claiming the credit to a later tax year return as described in this paragraph are subject to the carryforward limitations described in paragraph 52.47(4)“d” below. The credit may be claimed on an amended return so long as the amended return is filed within the statute of limitations applicable to the tax year for which the amended return is being filed. a. b. Information required.The tax credit certificate shall include the taxpayer’s name, the taxpayer’s address, the taxpayer’s tax identification number, the address or location of the rehabilitation project, the date the project was completed,and the amount of the historic preservation and cultural and entertainment district tax credit, and, if applicable, an indication of whether the credit is nonrefundable (see paragraph 52.47(4)“c” below). In addition, the tax credit certificate shall include a place for the name and tax identification number of a transferee and the amount of the tax credit being transferred, as provided in subrule 52.47(5). In addition, if the taxpayer is a partnership, limited liability company, estate or trust, and the tax credit is allocated to the owners or beneficiaries of the entity, a list of the owners or beneficiaries and the amount of credit allocated to each owner or beneficiary shall be provided with the certificate. The tax credit certificate shall be included with the income tax return for the period in which the project was completed or in which the certificate is issued, whichever is later. b. c. Refund or carryforwardRefundability.AnyA historic preservation and cultural and entertainment district tax credit in excess of the taxpayer’s tax liability is fully refundable with interest computed under Iowa Code section 422.25. In lieu of claiming the refund, the taxpayer may elect to have the overpayment credited to the tax liability for the following tax year.To receive a refundable credit, the taxpayer must elect to receive the credit as refundable at the Part 3 stage of the application process administered by the department of cultural affairs. See department of cultural affairs’ 223—Chapter 48. Once the taxpayer elects to receive a nonrefundable credit, the taxpayer cannot select to change the credit to a refundable credit or vice versa. If the taxpayer is a transferee, the taxpayer may elect to receive the credit as refundable or nonrefundable when the taxpayer applies to the department of revenue for transfer of the tax credit as described in subrule 52.47(5). d. Carryforward.If the taxpayer elects to receive a nonrefundable historic preservation and cultural and entertainment district tax credit as described in paragraph 52.47(4)“b,” the amount in excess of the taxpayer’s tax liability may be carried forward for five years following the tax year in which the project is completed, or until it is depleted, whichever is earlier. A tax credit shall not be carried back to a tax year prior to the tax year in which the taxpayer is first eligible to claim the credit. Regardless of whether the taxpayer elects to claim the tax credit on a tax return for a year that is later than the year of project completion as described in paragraph 52.47(4)“a,” the taxpayer must utilize the entire credit within five years of project completion as described in this paragraph; any credit amount that is not utilized within the five-year carryforward period is forfeited. The five-year carryforward limitation does not apply if the taxpayer elects to receive a refundable credit, the excess of which may be credited to future tax years as an overpayment. c. e. Allocation of historic preservation and cultural and entertainment district tax credits to the individual owners of the entityor beneficiaries of an estate or trust.A partnership, limited liability company or S corporation may designate the amount of the tax credit to be allocated to each partner, member or shareholder. The credit does not have to be allocated based on the pro rata share of earnings of the partnership, limited liability company or S corporation.For an individual claiming a tax credit of an estate or trust, the amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings from the estate or trust. 52.47(5) Transfer of the historic preservation and cultural and entertainment district tax credit. The historic preservation and cultural and entertainment district tax credit certificates may be transferred to any person or entity. The transferee may use the amount of the tax credit transferred against the taxes imposed in Iowa Code chapter 422, divisions II, III, and V, and in Iowa Code chapter 432, for any tax year the original transferor could have claimed the tax credit. Any credit in excess of the transferee’s tax liability is not refundable.Transferees must elect to receive either a refundable or nonrefundable tax credit. Once the transferee elects to receive a nonrefundable credit, the transferee cannot elect to change the credit to a refundable credit or vice versa. A tax credit certificate of less than $1,000 shall not be transferable. a. Transfer process—information required.Within 90 days of transfer of the tax credit certificate, the transferee must submit the transferred tax credit certificate to the department of revenue along with a statement that contains the transferee’s name, address and tax identification number, the amount of the tax credit being transferred,an election to receive either a refundable or nonrefundable tax credit, and the amount of all consideration provided in exchange for the tax credit and the names of recipients of any consideration provided in exchange for the tax credit. If a payment of money was any part of the consideration provided in exchange for the tax credit, the transferee shall list the amount of the payment of money in its statement to the department of revenue. If any part of the consideration provided in exchange for the tax credit included nonmonetary consideration, including but not limited to any promise, representation, performance, discharge of debt or nonmonetary rights or property, the tax credit transferee shall describe the nature of the nonmonetary consideration and disclose any value the transferor and transferee assigned to the nonmonetary consideration. The tax credit transferee must indicate on its statement to the department of revenue if no consideration was provided in exchange for the tax credit. Within 30 days of receiving the transferred tax credit certificate and the statement from the transferee, the department of revenue will issue the replacement tax credit certificate to the transferee. If the transferee is a partnership, limited liability company or S corporation, the transferee shall provide a list of the partners, members or shareholders and information on how the historic preservation and cultural and entertainment district tax credit should be divided among the partners, members or shareholders. The transferee shall also provide the tax identification numbers and addresses of the partners, members or shareholders. The certificate must have the same information required for the original tax certificate and must have the same expiration date as the original tax credit certificate. The transferee may not claim a tax credit until a replacement certificate identifying the transferee as the proper holder has been issued. b. Consideration.Any consideration received for the transfer of the tax credit shall not be included in Iowa taxable income for individual income, corporation income or franchise tax purposes. Any consideration paid for the transfer of the tax credit shall not be deducted from Iowa taxable income for individual income, corporation income or franchise tax purposes. c. Unlimited number of transferees and subsequent transfers.There is no limitation on the number of transferees to whom the credit may be transferred. There is no limitation on the number of times that the credit may be retransferred by a transferee. The transferor may divide the credit into multiple credits of alternate denominations so long as the resulting credits are for amounts of no less than $1,000. d. Carryforward limitations on transferees.The transferee may use the amount of the transferred tax credit for any tax year the original transferor could have claimed the tax credit. The carryforward limitations described in paragraph 52.47(4)“d” shall apply. 52.47(6) Appeals. Challenges to an action by the department of revenue related to tax credit transfers, claiming tax credits, tax credit revocation, or repayment or recovery of tax credits must be brought pursuant to 701—Chapter 7. This rule is intended to implement Iowa Code chapter 404A as amended by 20142016 Iowa Acts, House File 24532443, and Iowa Code section 422.11D422.33. ITEM 4. Adopt the following new rule 701—52.48(404A,422):701—52.48(404A,422) Historic preservation and cultural and entertainment district tax credit for projects registered on or after August 15, 2016. The economic development authority is authorized by the general assembly to award tax credits for a percentage of the qualified rehabilitation expenditures on a qualified rehabilitation project as described in the historic preservation and cultural and entertainment district tax credit program, Iowa Code chapter 404A. The program is administered by the economic development authority with the assistance of the department of cultural affairs and the department of revenue. The general assembly has mandated that the economic development authority, the department of cultural affairs and the department of revenue adopt rules as necessary to administer Iowa Code chapter 404A. In general, the department of revenue is responsible for administering tax credit transfers and processing and auditing tax returns that include tax credits claimed on returns. For the economic development authority’s rules on the credit program, see 261—Chapter 49. For the department of cultural affairs’ rules on the credit program, see 223—Chapter 48. 52.48(1) Program transition. 2016 Iowa Acts, House File 2443, made several changes to the credit program, including transferring primary responsibility for the program’s administration from the department of cultural affairs to the economic development authority. Projects registered prior to August 15, 2016, remain under the purview of the department of cultural affairs, with assistance from the department of revenue. For department of revenue rules related to projects registered prior to August 15, 2016, see rules 701—52.18(404A,422) and 701—52.47(404A,422). 52.48(2) Application, registration, and agreement for the historic preservation and cultural and entertainment district tax credit. For rules on the application, registration, and agreement process, see economic development authority rules, 261—Chapter 49. 52.48(3) Computation of the amount of the historic preservation and cultural and entertainment district tax credit. The amount of the historic preservation and cultural and entertainment district tax credit is a maximum of 25 percent of the qualified rehabilitation expenditures verified by the economic development authority following project completion, up to the amount specified in the agreement between the taxpayer and the economic development authority. For more information on the credit computation, see economic development authority rules, 261—Chapter 49. The amount remains subject to audit by the department of revenue when the credit is claimed on the taxpayer’s tax return. 52.48(4) Qualified rehabilitation expenditures. “Qualified rehabilitation expenditures” means the same as defined in Iowa Code section 404A.1(7) and rule 261—49.5(404A) of economic development authority rules. In the event of an audit, the department of revenue evaluates whether expenditures comply with the agreement between the economic development authority and the eligible taxpayer, as well as with applicable statutes and rules, including Internal Revenue Code Section 47 and its related regulations. 52.48(5) Completion of the qualified rehabilitation project and claiming the tax credit. After the economic development authority verifies the taxpayer’s eligibility for the tax credit, the economic development authority shall issue a tax credit certificate. For more information on credit certificate issuance, see economic development authority rules, 261—Chapter 49. a. Claiming the credit.For the taxpayer to claim the credit, the certificate must be included with the taxpayer’s corporation income tax return for the tax year in which the rehabilitation project is completed or the corporation income tax return for any year within the five years following the year of project completion. Taxpayers that elect to delay claiming the credit to a later year’s return as described in this paragraph are subject to the carryforward limitations described in paragraph 52.48(5)“d” below. The credit may be claimed on an amended return so long as the amended return is filed within the statute of limitations applicable to the tax year for which the amended tax return is being filed. b. Information required.The tax credit certificate shall include the taxpayer’s name, the taxpayer’s address, the taxpayer’s tax identification number, the address or location of the rehabilitation project, the date the project was completed, the amount of the historic preservation and cultural and entertainment district tax credit, and, if applicable, an indication of whether the credit is nonrefundable (see paragraph 52.48(5)“c” below). In addition, the tax credit certificate shall include a place for the name and tax identification number of a transferee and the amount of the tax credit being transferred, as provided in subrule 52.48(6). In addition, if the taxpayer is a partnership, limited liability company, estate or trust, and the tax credit is allocated to the owners or beneficiaries of the entity, a list of the owners or beneficiaries and the amount of credit allocated to each owner or beneficiary shall be provided with the certificate. c. Refundability.A historic preservation and cultural and entertainment district tax credit in excess of the taxpayer’s tax liability is fully refundable with interest computed under Iowa Code section 422.25. In lieu of claiming the refund, the taxpayer may elect to have the overpayment credited to the tax liability for the following tax year. To receive a refundable credit, the taxpayer must elect to receive the credit as refundable at the Part 3 stage of the application process administered by the economic development authority. See the economic development authority’s rule 261—49.15(404A). Once the taxpayer elects to receive a nonrefundable credit, the taxpayer cannot elect to change the credit to a refundable credit or vice versa. If the taxpayer is a transferee, the taxpayer may elect to receive the credit as refundable or nonrefundable when the taxpayer applies to the department of revenue for transfer of the tax credit as described in subrule 52.48(6). d. Carryforward.If the taxpayer elects to receive a nonrefundable historic preservation and cultural and entertainment district tax credit as described in paragraph 52.48(5)“b,” the amount in excess of the taxpayer’s tax liability may be carried forward for five years following the tax year in which the project is completed, or until it is depleted, whichever is earlier. A tax credit shall not be carried back to a tax year prior to the tax year in which the taxpayer is first eligible to claim the credit. Regardless of whether the taxpayer elects to claim the tax credit on a tax return for a year that is later than the year of project completion as described in paragraph 52.48(5)“a,” the taxpayer must utilize the entire credit within five years following the tax year of the project completion as described in this paragraph; any credit that is not utilized within the five-year carryforward period is forfeited. The five-year carryforward limitation does not apply if the taxpayer elects to receive a refundable credit, the excess of which may be credited to future tax years as an overpayment. e. Allocation of historic preservation and cultural and entertainment district tax credits to the individual owners of the entity or beneficiaries of an estate or trust.A partnership, limited liability company or S corporation may designate the amount of the tax credit to be allocated to each partner, member or shareholder. The credit does not have to be allocated based on the pro rata share of earnings of the partnership, limited liability company or S corporation. For an individual claiming a tax credit of an estate or trust, the amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings from the estate or trust. 52.48(6) Transfer of the historic preservation and cultural and entertainment district tax credit. The historic preservation and cultural and entertainment district tax credit certificates may be transferred to any person or entity. The transferee may use the amount of the tax credit transferred against the taxes imposed in Iowa Code chapter 422, divisions II, III, and V, and in Iowa Code chapter 432, for any tax year that the original transferor could have claimed the tax credit. Transferees must elect to receive either a refundable or nonrefundable tax credit. Once the transferee elects to receive a nonrefundable credit, the transferee cannot elect to change the credit to a refundable credit or vice versa. A tax credit certificate of less than $1,000 shall not be transferable. a. Transfer process—information required.Within 90 days of transfer of the tax credit certificate, the transferee must submit the transferred tax credit certificate to the department of revenue along with a statement that contains the transferee’s name, address and tax identification number, the amount of the tax credit being transferred, an election to receive either a refundable or nonrefundable tax credit, and the amount of all consideration provided in exchange for the tax credit and the names of recipients of any consideration provided in exchange for the tax credit. If a payment of money was any part of the consideration provided in exchange for the tax credit, the transferee shall list the amount of the payment of money in its statement to the department of revenue. If any part of the consideration provided in exchange for the tax credit included nonmonetary consideration, including but not limited to any promise, representation, performance, discharge of debt or nonmonetary rights or property, the tax credit transferee shall describe the nature of the nonmonetary consideration and disclose any value the transferor and transferee assigned to the nonmonetary consideration. The tax credit transferee must indicate on its statement to the department of revenue if no consideration was provided in exchange for the tax credit. Within 30 days of receiving the transferred tax credit certificate and the statement from the transferee, the department of revenue will issue the replacement tax credit certificate to the transferee. If the transferee is a partnership, limited liability company or S corporation, the transferee shall provide a list of the partners, members or shareholders and information on how the historic preservation and cultural and entertainment district tax credit should be divided among the partners, members or shareholders. The transferee shall also provide the tax identification numbers and addresses of the partners, members or shareholders. The certificate must have the same information required for the original tax certificate and must have the same expiration date as the original tax credit certificate. The transferee may not claim a tax credit until a replacement certificate identifying the transferee as the proper holder has been issued. b. Consideration.Any consideration received for the transfer of the tax credit shall not be included in Iowa taxable income for individual income, corporation income or franchise tax purposes. Any consideration paid for the transfer of the tax credit shall not be deducted from Iowa taxable income for individual income, corporation income or franchise tax purposes. c. Unlimited number of transferees and subsequent transfers.There is no limitation on the number of transferees to whom the tax credit may be transferred. There is no limitation on the number of times that the credit may be retransferred by a transferee. The transferor may divide the credit into multiple credits of alternate denominations so long as the resulting credits are for amounts of no less than $1,000. d. Carryforward limitations on transferees.The transferee may use the amount of the transferred tax credit for any tax year that the original transferor could have claimed the tax credit. The carryforward limitations described in paragraph 52.48(4)“d” shall apply. 52.48(7) Appeals. Challenges to an action by the department of revenue related to tax credit transfers, the claiming of tax credits, tax credit revocation, or repayment or recovery of tax credits must be brought pursuant to 701—Chapter 7. This rule is intended to implement Iowa Code chapter 404A as amended by 2016 Iowa Acts, House File 2443, and Iowa Code section 422.33. ITEM 5. Amend rule 701—58.10(404A,422) as follows:701—58.10(404A,422) Historic preservation and cultural and entertainment district tax credit. For tax years beginning on or after January 1, 2001, a historic preservation and cultural and entertainment district tax credit, subject to the availability of the credit, may be claimed against a taxpayer’s Iowa franchise tax liability for 25 percent of the qualified rehabilitation costs to the extent the costs were incurred for the rehabilitation of eligible property in Iowa. For information related to projects with Part 2 applications approved and tax credits reserved prior to July 1, 2014, see rule 701—52.18(404A,422). For information related to projects with Part 2 applications approvedregistered on or after July 1, 2014, and agreements entered into on or after July 1, 2014before August 15, 2016, see rule 701—52.47(404A,422). SeeFor information related to projects registered on or after August 15, 2016, see rule 701—52.48(404A,422). For projects registered before August 15, 2016, see also the administrative rules for the historic preservation and cultural and entertainment district tax credit for the historical division of the department of cultural affairs under 223—Chapter 48. Division I of 223—Chapter 48 applies to projects with Part 2 applications approved and tax credits reserved prior to July 1, 2014. Division II of 223—Chapter 48 applies to projects with Part 2 applications approved on or after July 1, 2014, and agreements entered into on or after July 1, 2014.For projects registered on or after August 15, 2016, see also the administrative rules for the historic preservation and cultural and entertainment district tax credit for the economic development authority under 261—Chapter 49. This rule is intended to implement Iowa Code chapter 404A as amended by 20142016 Iowa Acts, House File 24532443, and Iowa Code section 422.60. [Filed 1/11/17, effective 3/8/17][Published 2/1/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/1/17.ARC 2926CState Public Defender[493]Adopted and FiledPursuant to the authority of Iowa Code section 13B.4(8), the State Public Defender hereby amends Chapter 12, “Claims for Indigent Defense Services,” Iowa Administrative Code. This amendment will allow an attorney in an adult criminal case to submit a claim for attorney fees within 45 days after the date of the expiration of the time for appeal from the judgment of conviction. This amendment is intended to allow the attorney a fairer opportunity to timely submit a fee claim after all required services have been performed. Notice of Intended Action was published in the Iowa Administrative Bulletin on December 7, 2016, as ARC 2830C. A public hearing was held on January 3, 2017, at 10 a.m. in Conference Room 424, Fourth Floor, Lucas State Office Building, 321 E. 12th Street, Des Moines, Iowa. Interested persons also had the opportunity to make written suggestions or comments on the proposed amendment on or before January 3, 2017. No written suggestions or comments were received. This amendment is identical to that published under Notice of Intended Action. The agency does not believe that the amendment poses a financial hardship on any regulated entity or individual. After analysis and review of this rule making, no adverse impact on jobs has been found. This amendment is intended to implement Iowa Code chapters 13B and 815. This amendment shall become effective March 8, 2017. The following amendment is adopted.
ITEM 1. Amend paragraph 12.2(3)"a" as follows: a. Adult claims.For adult claims, “date of service” means the date of filing of an order indicating that the case was dismissed or the client was acquitted or sentenced,the date of the expiration of the time for appeal from a judgment of conviction, the date of a final order in a postconviction relief case, the date of mistrial, the date on which a warrant was issued for the client, or the date of a court order authorizing the attorney’s withdrawal from a case prior to the date of a dismissal, acquittal, sentencing, or mistrial. The filing of a notice of appeal is not a date of service. If a motion for reconsideration is filed, the date on which the court rules on that motion is the date of service. For interim adult claims authorized by subrule 12.3(3) or 12.3(4), the date of service is the last day on which the attorney claimed time on the itemization of services. [Filed 1/11/17, effective 3/8/17][Published 2/1/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/1/17.Back matter not included