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Bulletin
03-29-2017
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ARC 2994CBanking Division[187]Notice of Intended ActionTwenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)“b.”
Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.
Pursuant to the authority of Iowa Code sections 17A.3, 536.21 and 536A.28, the Iowa Division of Banking (IDOB) hereby gives Notice of Intended Action to rescind Chapter 15, “Regulated Loans,” and Chapter 16, “Industrial Loans,” Iowa Administrative Code, and to adopt new Chapters 15 and 16 with the same titles. This proposed rule making reflects partial compliance with Iowa Code section 17A.7(2), which states that, as of July 1, 2012, “over each five-year period of time, an agency shall conduct an ongoing and comprehensive review of all of the agency’s rules [and t]he goal of the review is the identification and elimination of all rules of the agency that are outdated, redundant, or inconsistent or incompatible with statute or its own rules or those of other agencies.” Proposed Chapters 15 and 16 are intended to eliminate outdated requirements and to modernize the format and structure of the rules in order to better conform to other rules relating to regulated nondepository entities. The reorganized chapters otherwise update the rules to reflect current administrative practices for licensees under Iowa Code chapters 536 and 536A, specifically practices related to applications, renewals, and record keeping. Reorganizing the chapters in this manner will make the rules easier to understand, thereby making it easier for licensees and applicants for licensure to comply with the requirements. The proposed chapters will also revise the interest rate brackets for lenders licensed under Iowa Code chapter 536. Currently, the maximum interest rates such lenders may charge is 36 percent APR on any part of an unpaid balance not exceeding $1,000, 24 percent APR on any part of an unpaid balance exceeding $1,000 but not exceeding $2,800, and 18 percent APR on any part of an unpaid balance exceeding $2,800 but not exceeding $10,000. The proposed chapters will permit lenders licensed under Iowa Code chapter 536 to charge an interest rate of 36 percent APR on any part of an unpaid balance not exceeding $3,000, 24 percent APR on any part of an unpaid balance exceeding $3,000 but not exceeding $8,400, and 18 percent APR on any part of an unpaid balance exceeding $8,400 but not exceeding $10,000. Any interested person may make written or oral suggestions or comments on the proposed chapters on or before April 19, 2017. Comments should be directed to Zachary Hingst, Legal Counsel, Iowa Division of Banking, 200 E. Grand Avenue, Suite 300, Des Moines, Iowa 50309; by telephone at (515)281-4014; or by e-mail to zak.hingst@idob.state.ia.us. A public hearing will be held at 9 a.m. on April 19, 2017, at the offices of the Iowa Division of Banking, 200 E. Grand Avenue, Suite 300, Des Moines, Iowa. At the hearing, persons who wish to speak will be asked to give their names and addresses for the record and to confine their remarks to the subject of the proposed chapters. Any person who plans to attend the public hearing and has special requirements, such as those related to hearing or mobility impairments, should contact the IDOB to discuss specific needs. No existing fees are being changed and no new fees are being added; therefore, the IDOB has concluded that the proposed rules will have no fiscal impact. The new rules will be subject to waiver or variance pursuant to 187—Chapter 12. Because no existing authorized activities are being restricted, no new activities are being authorized, no existing fees are being increased, and no new fees are being added, the IDOB has concluded that the proposed rules should not have a negative effect on jobs in Iowa. These rules are intended to implement Iowa Code chapters 17A, 536, and 536A. The following amendments are proposed.
ITEM 1. Rescind 187—Chapter 15 and adopt the following new chapter in lieu thereof: CHAPTER 15REGULATED LOANS187—15.1(17A,536) Definitions. For the purposes of this chapter, the definitions in Iowa Code chapter 536 shall apply. In addition, unless the context otherwise requires: "Business of making regulated loans" means making ten or more loans of money or other forms of credit in a calendar year for which a license is required under Iowa Code section 536.1, advertising the availability of such loans, or directly undertaking the collection of payments due on such loans or otherwise enforcing rights against borrowers who have entered into regulated loans. "Nationwide multistate licensing system" "NMLS" means a multistate licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of nondepository financial institutions. "Regulated loan" means a loan made by a licensee acting under the terms of the Iowa regulated loan Act. A regulated loan qualifies as a consumer loan subject to the Iowa Consumer Credit Code if the borrower is a person other than an organization; the debt is incurred for personal, family, or household use; and the amount financed is below the statutory threshold.187—15.2(17A,536) Utilization of NMLS. 15.2(1) All application and licensing information shall be submitted through the NMLS including but not limited to the following: original application information; changes in application information; license renewal information; changes in name, location, and control; and notices of significant events. 15.2(2) The applicant or licensee shall pay any fees required by NMLS including but not limited to the following: initial set-up fee and annual processing fees, background check fees, and credit background check fees.187—15.3(17A,536) Application for license. 15.3(1) An application for a license to operate a regulated, loan business in Iowa shall be submitted to the superintendent, on the form provided and with the information requested, through the NMLS. The superintendent may consider an application withdrawn if it does not contain all of the information required and the missing information is not submitted to the superintendent within 30 days after the superintendent requests the missing information. The applicant may also request that the application be withdrawn at any time before the superintendent has decided to grant or deny the application. 15.3(2) Each officer, director, and individual who has control of an applicant must provide fingerprints, authorize a fingerprint background check through NMLS, and pay the appropriate fees for the purpose of conducting a national criminal history background check through the Federal Bureau of Investigation. 15.3(3) The applicant must submit the application fee and the initial license fee specified in Iowa Code section 536.2. The superintendent shall refund the initial license fee if the application is denied, but the application fee is not subject to refund. The applicant shall also pay any additional fees required by the NMLS including but not limited to the following: system processing fees, background check fees, and credit background check fees. 15.3(4) If any information material to the application changes after the applicant files the initial application, the applicant shall provide updated information to the superintendent within 10 days of the change. When such a material change in information has occurred, the superintendent may deny an application if the applicant fails to provide updated information within the prescribed time frame. 15.3(5) An applicant for a regulated loan company license must file with the superintendent a bond complying with the provisions of Iowa Code section 536.3. For applicants or licensees who do not make, arrange, broker, process, or underwrite any residential mortgage loans, as defined in Iowa Code section 535D.3(13), the bond shall be in the amount of $25,000. For applicants or licensees who make, broker, process, or underwrite residential mortgage loans, as defined in Iowa Code section 535D.3(13), the bond amount required to be filed and maintained shall be set and adjusted annually by March 31 using the following scale, based on the volume of residential mortgage loans made, originated, arranged, brokered, processed, and underwritten, as the case may be, by the applicant or licensee during the preceding calendar year:LoansBond Amount$0 – $5,000,000$25,000$5,000,001 – $20,000,000$50,000$20,000,001 – $50,000,000$75,000$50,000,001 – $100,000,000$100,000Over $100,000,000$150,000 15.3(6) Licenses expire on the next December 31 after they are issued, but licenses granted on or after November 1 but before January 1 will not expire until December 31 of the following year. For example, a license granted on November 17, 2017, would not expire until December 31, 2018.187—15.4(17A,536) Grounds for approval or denial. 15.4(1) The superintendent shall approve or deny a license application in accordance with the provisions of Iowa Code section 536.4. 15.4(2) The following may be considered evidence that the business of the applicant may not be operated lawfully and honestly within the purposes of Iowa Code chapter 536 and may therefore be considered grounds for denial of an application: a. An applicant, or an officer, director, or individual who has control of an applicant, has had a mortgage loan originator license or any lending license revoked in any governmental jurisdiction. b. An applicant, or an officer, director, or individual who has control of an applicant, has been convicted of, or has pleaded guilty or no contest to, a felony in a domestic, foreign, or military court if such felony involved an act of fraud, dishonesty, or breach of trust, or money laundering.187—15.5(17A,536) Renewal of license. 15.5(1) A licensee must renew a license before the expiration date of the license. A licensee who fails to renew a license before the expiration date is not authorized to make regulated loans in Iowa after the expiration date. 15.5(2) An application to renew a license shall be submitted to the superintendent, on the form provided and with the information requested, through the NMLS by December 1 of the year of expiration. For example, for a license that will expire on December 31, 2017, an application for renewal shall be submitted by December 1, 2017. All requested information, including any material change to information contained in the original application, shall be provided to the superintendent. 15.5(3) The superintendent shall grant an application to renew a license if: a. The licensee submits the application and the appropriate renewal fee by December 1 or the licensee submits the application after December 1 but before January 1 and pays the appropriate renewal fee and the appropriate late fee; b. The application is fully completed and includes all necessary information; and c. The application does not reveal grounds to deny a license. 15.5(4) It is within the discretion of the superintendent to reject for processing a renewal application submitted after December 31 or to treat such an application as an application for a new license. A licensee who fails to renew a license before the expiration date is not authorized to make regulated loans in Iowa after the expiration date.187—15.6(17A,536) Changes in the licensee’s name, location, or control; fees. 15.6(1) A licensee wishing to change the name or location of a regulated loan business shall notify the superintendent through the NMLS at least 30 days prior to the effective date of the requested change. The notice shall include proof that the licensee has either obtained a new bond or amended the existing mandatory bond to reflect the new name or location. The licensee shall submit the appropriate fee in conjunction with the notice. 15.6(2) When a change of control of a licensee is proposed, the party that will assume control of the licensee shall give notice to the superintendent through the NMLS, at least 60 days before the proposed change will take effect. Change of control is defined in Iowa Code section 536.7A. The party that will assume control of the licensee shall furnish the superintendent through the NMLS with the same information required of initial applicants for a license, along with the appropriate fee. The party that will assume control may be required to provide fingerprints, authorize a fingerprint background check through NMLS, and pay the appropriate fees for the purpose of conducting a national criminal history background check through the Federal Bureau of Investigation. The superintendent shall approve or deny the request in accordance with the provisions of Iowa Code section 536.4 and rule 187—15.4(17A,536). 15.6(3) Failure to notify the administrator within the prescribed time as required by this rule may subject the licensee to disciplinary action.187—15.7(17A,536) Notice of significant events. A licensee shall notify the administrator immediately and in writing within 10 days of the occurrence of any of the following events. 15.7(1) The licensee or any of the licensee’s officers, directors, principal stockholders, or affiliates file for bankruptcy protection or commence reorganization proceedings. 15.7(2) A prosecuting authority files criminal charges against the licensee or any of a licensee’s officers, directors, principal stockholders, or affiliates. 15.7(3) Another state or jurisdiction institutes license denial, cease and desist, suspension or revocation procedures, or other formal or informal regulatory action against the licensee or any of the licensee’s officers, directors, principal stockholders, or affiliates. 15.7(4) The attorney general of Iowa, the Federal Trade Commission, or the enforcer of the consumer protection laws of any other jurisdiction initiates an action to enforce the consumer protection laws against the licensee or any of the licensee’s officers, directors, principal stockholders, or affiliates. 187—15.8(17A,536) Administrative fees. 15.8(1) Examination or investigation fees. A licensee shall pay an investigation or examination fee as determined by the superintendent based on the actual cost of the operation of the finance bureau of the banking division, as described in Iowa Code section 536.10(3). 15.8(2) Late fees for failing to respond. In the process of administering Iowa Code chapter 536, the superintendent may require a person to provide responses to formal orders, examinations, or complaint inquiries. If a person fails to respond within 30 days of the request, the superintendent may assess a penalty of $10 per day after the initial 30 days. 15.8(3) NMLS system processing fees. In addition to the fees set forth in this chapter, the applicant or licensee shall pay any fee assessed by the NMLS attributed to the licensee’s record in the NMLS including but not limited to the initial set-up fee, an annual processing fee, and a loan sponsorship transfer fee.187—15.9(17A,536) Licensee records. 15.9(1) General records requirements. A licensee must keep records that allow the superintendent to determine the licensee’s compliance with relevant statutes and regulations. a. The licensee may keep the records as a hard copy or in an electronic equivalent. b. The licensee shall keep all records for at least 24 months from the date of the final transaction with the borrower. c. The licensee shall maintain all books and records in good order and shall produce books and records for the superintendent upon request. Failure to produce such books and records within 30 days of the superintendent’s request may be grounds for disciplinary action against the licensee. d. The obligation to maintain records continues even after the licensee ceases business operations in Iowa and turns in or surrenders its license. The owners and directors of the licensee are responsible for ensuring that this requirement is met. 15.9(2) Required records. A licensee shall keep, at its principal place of business, a loan register, an account ledger, an account ledger control, a loan file, an index, and a disbursement voucher. 15.9(3) Loan register. The loan register shall include the following information for every loan that is made: the account number, the date of the transaction, the name of the borrower, and the amount financed. The register shall be kept chronologically in the order the loans closed. 15.9(4) Account ledger. a. An individual account ledger shall be kept for each account and shall show at least the loan number, name and address of the borrower, date of loan, date of first payment, date of final payment, terms of repayment including maturity date, amount financed, total of payments, face amount of note if different from amount financed or total payments, cash advanced to borrower, cash advanced to pay balance of previous regulated loan, interest or discount charge, service charge, attorney fee, fee paid or to be paid to a public official for recording or filing a mortgage or for satisfying a judgment or lien on any real or personal property securing the loan, nature of security, type and cost of each credit insurance policy and any other insurance policy with each premium stated separately, and name of each endorser, comaker or surety. b. All payments shall be posted on the account ledger as of the date received. No erasures whatsoever may be made in the payment section of any account ledger. In case of error, corrections to the transaction history in the account ledger shall be made by corrective entry and not by erasure. The entries on the account ledger shall correspond with the receipts given to the borrower. c. If payment is made in any way other than in the ordinary course of business, the method of payment shall be so designated on the account ledger; for example, payment by sale of security, insurance claim or endorser. When a death claim is filed, the exact date of death is to be recorded on the account ledger. d. The account ledger for an interest-bearing loan shall show the amount of the loan if different from the amount financed, the amount and date of each payment received, the allocation of the payment to principal and interest, and the remaining principal balance. If a portion of the interest earned is not paid at the time payment is made, the account ledger for an interest-bearing loan must show either the date to which interest is paid or the amount of interest then due but unpaid. e. The account ledger for a precomputed loan shall show the actual amount of the loan excluding the precomputed interest, the amount of the precomputed interest and the face amount of the note including interest, the amount and date of each payment applied to the note, the unpaid balance of the note after application of such payment and the type and amount of any additional charges collected or assessed. If a deferment charge is collected in whole or in part, the account ledger shall indicate any uncollected portion of the deferment charge, the particular installment deferred, the number of times deferred, plus the date of the final installment. f. When any loan is prepaid in full, either by cash or renewal, the account ledger must show the date of prepayment, the amount paid to discharge the loan, the amount of the interest rebate, and any deduction from the rebate for previously earned but uncollected charges, and refunds of the unearned premiums of each credit insurance policy or other insurance policy. Each insurance refund shall be separately recorded on the account ledger. g. Account ledgers relating to each type of business operation must be filed in separate groups. Paid-in-full and renewed account ledgers must also be filed in a similar manner and must be retained from one banking division examination to the next. After the examination, the account ledgers may be filed in a permanent file. 15.9(5) Account ledger control. A record showing the total number of accounts and total amount receivable for each type of business shall be maintained in the licensed office. This record shall be posted either daily or weekly. 15.9(6) Loan file. A separate file shall be maintained for each borrower in the office where the loan is outstanding. Such file shall contain the note, security agreement, wage assignment, and all other evidence of indebtedness or security pertaining to the loan except when the note is kept in a separate promissory note file or when said papers are in custody of a court or an agent for collection or are hypothecated. When a borrower is also a comaker, guarantor or endorser on another loan, the file of such borrower shall be cross-referenced to the other, unless such cross-referencing is included on the alphabetical record required by subrule 15.9(7) or on the individual account ledger required by subrule 15.9(4). All instruments taken in connection with a loan and signed by a borrower must bear the loan number. 15.9(7) Index. An alphabetical record shall be maintained and show the name of each borrower, endorser, comaker, or surety who is currently indebted to the licensee, together with sufficient information to locate the account ledger. 15.9(8) Disbursement voucher. Licensees shall use, in conjunction with each loan, a disbursement voucher or equivalent document showing a detailed itemization of the distribution of the loan proceeds. 15.9(9) Denial file. For each application the licensee denies, the licensee shall retain a copy of the application and a copy of the adverse action notice. The licensee may maintain this information in one file in either alphabetical or chronological order. 15.9(10) General business records. A licensee must keep the following general business records for at least 36 months: a. All checkbooks, check registers, bank statements, deposit slips, withdrawal slips, and canceled checks (or copies thereof) relating to the regulated loan business of the licensee. b. Complete records (including invoices and supporting documentation) for all expenses and fees paid on behalf of each loan applicant, including a record of the date and amount of all such payments actually made by each loan applicant. c. Copies of all federal tax withholding forms, reports of income for federal taxation, and evidence of payments to all employees, independent contractors, and others compensated by a licensee in connection with the conduct of the regulated loan business. d. All correspondence and other records relating to the maintenance of any surety bond required by Iowa Code chapter 536. e. Copies of all reports of audits, examinations, inspections, reviews, investigations, or other similar functions performed by any third party, including but not limited to the superintendent or any other regulatory or supervisory authority. f. Copies of all advertisements and solicitations concerning regulated loans directed at Iowa residents, including advertisements and solicitations on the Internet or by other electronic means, in the format (e.g., recorded sound, video, print) in which the advertisements and solicitations were published or distributed. An advertisement shall clearly show the licensee’s unique NMLS identification number. 15.9(11) Disposal of records. If a licensee or former licensee disposes of records at the end of the retention period, the licensee or former licensee shall dispose of the records in a reasonable manner that safeguards any identification information, as defined in Iowa Code section 715A.8(1)“a.” The owners and directors of licensees and former licensees are responsible for ensuring that this requirement is met. 187—15.10(17A,536) Complaints and investigations. 15.10(1) The superintendent may, at any time and as often as the superintendent deems necessary, investigate a licensee and examine the licensee’s books, accounts, records, and files. 15.10(2) The superintendent may investigate complaints about, or alleged violations by, any licensee. 15.10(3) The following shall constitute a complaint or alleged violation: a. A written complaint received from a consumer, member of the public, employee, business affiliate, or other governmental agency. b. Notice to the superintendent from any source that the licensee has been the subject of disciplinary proceedings in another jurisdiction. c. Notice to the superintendent from any source that an individual with control of the licensee has been convicted of forgery, embezzlement, obtaining money under false pretenses, extortion, conspiracy to defraud, or other similar offense, in a court of competent jurisdiction in this state or in any other state, territory, or district of the United States, or in any foreign jurisdiction.187—15.11(17A,536) Disciplinary action. 15.11(1) The superintendent has authority pursuant to Iowa Code chapters 536 and 17A to impose discipline for violations of Iowa Code chapter 536 and the rules promulgated thereunder. 15.11(2) Grounds for discipline. The superintendent may impose any of the disciplinary sanctions set out in Iowa Code section 536.9(2) when the superintendent makes any of the findings in Iowa Code section 536.9(1) or when the superintendent finds any of the following: a. The licensee has abandoned its place of business for 60 or more days. b. The licensee fails to fully cooperate with an examination or investigation, including failing to respond to an inquiry from the superintendent within 30 days of the date the superintendent mails a written communication directed to the licensee’s last-known address on file with the superintendent. c. The licensee has engaged in any conduct that subverts or attempts to subvert an examination or investigation by the superintendent. d. The licensee continues to operate a regulated loan business without an active and current license. e. The licensee fails to notify the superintendent within 10 days of the occurrence of one of the significant events set forth in rule 187—15.7(17A,536). f. The licensee fails to notify the superintendent of a change in control, name, or principal place of business. g. The licensee operates a regulated loan business in the same location as another business without the superintendent’s written approval. h. Another state or jurisdiction has denied, suspended, revoked, or refused to renew the licensee’s license, registration, or authorization to engage in the business of making loans under the other state’s or jurisdiction’s law. i. The licensee fails to create and maintain complete and accurate records as required by state or federal law, regulation, or rule. 15.11(3) The superintendent shall not refund the license fee, in whole or in part, of a license that has been suspended, revoked, or surrendered. 187—15.12(17A,536) Annual report. Licensees must file with the superintendent an annual report, on forms prescribed by the superintendent, on or before April 15. The information contained in the annual report shall be confidential, and the superintendent may publish the information only in composite form. The superintendent may assess a late fee of $10 for each day the annual report is delinquent. 187—15.13(17A,536) Restrictions on making regulated loans. A licensee shall adhere to the following restrictions related to making regulated loans. 15.13(1) Jurisdiction. A licensee shall have authority to make and complete loans by mail, or by comparable electronic means, from the lender’s licensed office. However, all loans made to Iowa residents pursuant to Iowa Code chapters 536 and 537 must comply with all applicable Iowa laws. 15.13(2) Default charge. Default charges are not to be collected if payment is made by a credit accident and health insurance claim. 15.13(3) Interest rate. Pursuant to the power granted to the superintendent under Iowa Code sections 536.13(1)“b” and 536.13(2), the maximum rate of interest that may be charged beginning July 1, 2017, and until such time as a different rate is fixed by the superintendent, is 36 percent per annum on any part of the unpaid balance not exceeding $3,000 and 24 percent per annum on any part of the unpaid balance in excess of $3,000, but not exceeding $8,400 and 18 percent per annum on any part of the unpaid balance in excess of $8,400, but not exceeding $10,000. 15.13(4) Branch locations. Licensees may not establish branch locations outside of the United States. These rules are intended to implement Iowa Code chapters 17A and 536. ITEM 2. Rescind 187—Chapter 16 and adopt the following new chapter in lieu thereof: CHAPTER 16INDUSTRIAL LOANS187—16.1(17A,536A) Definitions. For the purposes of this chapter, the definitions in Iowa Code chapter 536A shall apply. In addition, unless the context otherwise requires: "Business of making industrial loans" means making ten or more loans of money or other forms of credit in a calendar year for which a license is required under Iowa Code section 536A.3, advertising the availability of such loans, or directly undertaking the collection of payments due on such loans or otherwise enforcing rights against borrowers who have entered into industrial loans. "Industrial loan" means a loan made by a person who is a licensee acting under the terms of the Iowa industrial loan law. An industrial loan qualifies as a consumer loan subject to the Iowa Consumer Credit Code if the borrower is a person other than an organization; the debt is incurred for personal, family, or household use; and the amount financed is below the statutory threshold. "Industrial loan business" means the business of operating an industrial loan company as defined in Iowa Code section 536A.2(1). "Nationwide multistate licensing system" "NMLS" means a multistate licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of nondepository financial institutions.187—16.2(17A,536A) Utilization of NMLS. 16.2(1) All application and licensing information shall be submitted through the NMLS including but not limited to the following: original application information; changes in application information; license renewal information; changes in name, location, and control; and notices of significant events. 16.2(2) The applicant or licensee shall pay any fees required by NMLS including but not limited to the following: initial set-up fee and annual processing fees, background check fees, and credit background check fees.187—16.3(17A,536A) Application for license. 16.3(1) An application for a license to engage in the business of operating an industrial loan company in Iowa shall be submitted to the superintendent, on the form provided and with the information requested, through NMLS. The superintendent may consider an application withdrawn if it does not contain all of the information required and the missing information is not submitted to the superintendent within 30 days after the superintendent requests the missing information. The applicant may also request that the application be withdrawn at any time before the superintendent has decided to grant or deny the application. 16.3(2) Each officer, director, and individual who has control of an applicant must provide fingerprints, authorize a fingerprint background check through NMLS, and pay the appropriate fees for the purpose of conducting a national criminal history background check through the Federal Bureau of Investigation. 16.3(3) The applicant must submit the application fee and the initial license fee specified in Iowa Code section 536A.7(2). The superintendent shall refund the initial license fee if the application is denied, but the application fee is not subject to refund. 16.3(4) If any information material to the application changes after the applicant files the initial application, the applicant shall provide updated information to the superintendent in writing within 10 days of the change. When such a material change in information has occurred, the superintendent may deny an application if the applicant fails to provide updated information within the prescribed time frame. 16.3(5) An applicant for an industrial loan company license must file with the superintendent a bond complying with the provisions of Iowa Code section 536A.7A. For applicants or licensees who do not make, arrange, broker, process, or underwrite any residential mortgage loans, as defined in Iowa Code section 535D.3(13), the bond shall be in the amount of $25,000. For applicants or licensees who make, broker, process, or underwrite residential mortgage loans, as defined in Iowa Code section 535D.3(13), the bond amount required to be filed and maintained shall be set and adjusted annually by March 31 using the following scale, based on the volume of residential mortgage loans made, originated, arranged, brokered, processed, and underwritten, as the case may be, by the applicant or licensee during the preceding calendar year:LoansBond Amount$0 – $5,000,000$25,000$5,000,001 – $20,000,000$50,000$20,000,001 – $50,000,000$75,000$50,000,001 – $100,000,000$100,000Over $100,000,000$150,000 16.3(6) Licenses expire on the next December 31 after they are issued, but licenses granted on or after November 1 but before January 1 will not expire until December 31 of the following year. For example, a license granted on November 17, 2017, would not expire until December 31, 2018.187—16.4(17A,536A) Grounds for approval or denial. 16.4(1) The superintendent shall approve or deny a license application in accordance with the provisions of Iowa Code sections 536A.10 and 536A.11. 16.4(2) The following may be considered evidence that the business of the applicant may not be operated lawfully and honestly within the purposes of Iowa Code chapter 536A and may therefore be considered grounds for denial of an application: a. An applicant, or an officer, director, or individual who has control of an applicant, has had a mortgage loan originator license or any lending license revoked in any governmental jurisdiction. b. An applicant, or an officer, director, or individual who has control of an applicant, has been convicted of, or has pleaded guilty or no contest to, a felony in a domestic, foreign, or military court if such felony involved an act of fraud, dishonesty, or breach of trust, or money laundering. 187—16.5(17A,536A) Renewal of license. 16.5(1) To remain authorized to operate an industrial loan company, a licensee must renew a license before the expiration date of the license. A licensee who fails to renew a license before the expiration date is not authorized to make industrial loans in Iowa after the expiration date. 16.5(2) An application to renew a license shall be submitted to the superintendent, on the form provided and with the information requested, through the NMLS by December 1 of the year of expiration. For example, for a license that will expire on December 31, 2017, an application for renewal shall be submitted by December 1, 2017. All requested information, including any material change to information contained in the original application, shall be provided to the superintendent. 16.5(3) The superintendent shall grant an application to renew a license if: a. The licensee submits the application and the appropriate renewal fee by December 1 or the licensee submits the application after December 1 but before January 1 and pays the appropriate renewal fee and the appropriate late fee; b. The application is fully completed and includes all necessary information; and c. The application does not reveal grounds to deny a license. 16.5(4) It is within the discretion of the superintendent to reject for processing a renewal application submitted after December 31, or to treat such an application as an application for a new license. A licensee who fails to renew a license before the expiration date is not authorized to engage in the business of making industrial loans in Iowa after the expiration date. 187—16.6(17A,536A) Changes in the licensee’s name, location, or control. 16.6(1) A licensee wishing to change the name or location of an industrial loan business shall notify the superintendent through the NMLS at least 30 days prior to the effective date of the change. The notice shall include proof that the licensee has either obtained a new bond or amended the existing mandatory bond to reflect the new name or location. The licensee shall submit the appropriate fee in conjunction with the notice. 16.6(2) When a change of control of a licensee is proposed, the party that will assume control of the licensee shall submit an application for certificate of approval of the proposed change of control to the superintendent, on the form provided and with the information requested, through the NMLS at least 60 days before the proposed change will take effect. Change of control is defined in Iowa Code section 536A.12(4). The party that will assume control of the licensee shall furnish the superintendent with the same information required of initial applicants for a license, along with the appropriate fee. The party that will assume control may be required to provide fingerprints, authorize a fingerprint background check through the NMLS, and pay the appropriate fees for the purpose of conducting a national criminal history background check through the Federal Bureau of Investigation. The superintendent shall approve or deny the request in accordance with the provisions of Iowa Code sections 536A.10 and 536A.11 and rule 187—16.4(17A,536A). 16.6(3) Failure to notify the administrator within the prescribed time as required by this rule may subject the licensee to disciplinary action. 187—16.7(17A,536A) Notice of significant events. A licensee shall notify the administrator immediately and in writing within 10 days of the occurrence of any of the following events. 16.7(1) The licensee or any of the licensee’s officers, directors, principal stockholders, or affiliates file for bankruptcy protection. 16.7(2) A prosecuting authority files criminal charges against the licensee or any of a licensee’s officers, directors, principal stockholders, or affiliates. 16.7(3) Another state or jurisdiction institutes license denial, cease and desist, suspension or revocation procedures, or other formal or informal regulatory action against the licensee or any of the licensee’s officers, directors, principal stockholders, or affiliates. 16.7(4) The attorney general of Iowa, the Federal Trade Commission, or the enforcer of the consumer protection laws of any other jurisdiction initiates an action to enforce the consumer protection laws against the licensee or any of the licensee’s officers, directors, principal stockholders, or affiliates.187—16.8(17A,536A) Administrative fees. 16.8(1) Examination or investigation fees. A licensee shall pay an investigation or examination fee as determined by the superintendent based on the actual cost of the operation of the finance bureau of the banking division, as described in Iowa Code section 536A.15(4). 16.8(2) Late fees for failing to respond. In the process of administering this chapter, the superintendent may require a person to provide responses to formal orders, examinations, or complaint inquiries. If a person fails to respond within 30 days of the request, the superintendent may assess a penalty of $10 per day after the initial 30 days. 16.8(3) NMLS system processing fees. In addition to the fees set forth in this chapter, the applicant or licensee shall pay any fee assessed by the NMLS attributed to the licensee’s record in the NMLS including but not limited to the initial set-up fee, an annual processing fee, and a loan sponsorship transfer fee.187—16.9(17A,536A) Licensee records. 16.9(1) General records requirements. A licensee must keep records that allow the superintendent to determine the licensee’s compliance with relevant statutes and regulations. a. The licensee may keep the records as a hard copy or in an electronic equivalent. b. The licensee shall keep records for at least 24 months from the date of the final transaction with the borrower. c. The licensee shall maintain all books and records in good order and shall produce books and records for the superintendent upon request. The superintendent or the superintendent’s duly appointed representative shall have the right to examine and investigate the books, accounts, and records wherever situated of all businesses authorized or conducted by a licensee licensed pursuant to Iowa Code chapter 536A. All books, accounts and records pertaining to businesses conducted pursuant to such licenses shall be made readily available to the examiners who may investigate without prior notice. Failure to produce such books and records within 30 days of the superintendent’s request may be grounds for disciplinary action against the licensee. d. The obligation to maintain records continues even after the licensee ceases business operations in Iowa and turns in or surrenders its license. The owners and directors of the licensee are responsible for ensuring that this requirement is met. 16.9(2) Required records. A licensee shall keep, at its principal place of business, a loan register, account ledgers, an account ledger control, a loan file, an index, and a disbursement voucher. 16.9(3) Loan register. a. The loan register shall contain the original entry and shall show for every loan the loan number, date of loan, name of borrower, nature of security, and amount of note. b. The loan register shall be kept chronologically in the order the loans are made. 16.9(4) Account ledger. a. An individual account ledger shall be kept for each account and shall show at least the loan number, name and address of the borrower, date of loan, date of first payment, date of final payment, terms of repayment including maturity date, amount financed, total of payments, face amount of note if different from amount financed or total of payments, cash advanced to borrower, cash advanced to pay balance of previous industrial loan, interest or discount charge, service charge, attorney fee, fee paid or to be paid to a public official for recording or filing a mortgage or for satisfying a judgment or lien on any real or personal property securing the loan, nature of security, type and cost of each credit insurance policy, and type and cost of any other insurance policy. b. All payments shall be credited upon the account ledger as of the date they are received. No erasures whatsoever may be made in the payment section of any account ledger. In case of error, corrections to the transaction history in the account ledger shall be made by corrective entry and not by erasure. The entries on the account ledger shall correspond with the receipts given to the borrower. c. If payment is made in any way other than in the ordinary course of business, the method of payment shall be so designated on the account ledger; for example, if payment is made through the proceeds of an insurance claim or the sale of security, it shall be so designated. When a death claim is filed, the exact date of death is to be recorded on the account ledger. d. The account ledger for an interest-bearing loan shall show the amount of the loan if different from the amount financed, the amount and date of each payment received, the allocation of the payment to principal and interest, and the remaining principal balance. If a portion of the interest earned is not paid at the time payment is made, the account ledger for an interest-bearing loan must show either the date to which interest is paid or the amount of interest then due but unpaid. e. The account ledger for a precomputed loan shall show the actual amount of the loan excluding the precomputed interest, the amount of the precomputed interest and the face amount of the note including interest, the amount and date of each payment applied to the note, the unpaid balance of the note after application of such payment and the type and amount of any additional charges collected or assessed. If a deferment charge is collected in whole or in part, the account ledger shall indicate any uncollected portion of the deferment charge, the particular installment deferred, the number of times deferred, plus the date of the final installment. f. When any loan is prepaid in full, either by cash or renewal, the account ledger must show the date of prepayment, the amount paid to discharge the loan, the amount of the interest rebate, and any deduction from the rebate for previously earned but uncollected charges, and refunds of the unearned premiums of each credit insurance policy or other insurance policy. Each insurance refund shall be separately recorded on the account ledger. g. Account ledgers relating to each type of business operation must be filed in separate groups. Paid-in-full or renewed account ledgers must also be filed in a similar manner and must be retained as a separate group from one banking division examination to the next. After the examination, these account ledgers may be filed in a permanent file. 16.9(5) Account ledger control. A record showing the total number of accounts and amount receivable for each type of business conducted shall be maintained in the licensed office. This record shall be posted either daily or weekly. 16.9(6) Loan file. A separate file shall be maintained for each borrower or loan account. Such file shall contain the promissory note, security agreement, wage assignment, and all other evidence of indebtedness or security pertaining to the loan except when the promissory note is kept in a separate promissory note file. Copies of the note and security agreement shall be substituted for the original documents if the loan has been sold, pledged or assigned as collateral security or if the original papers are in the custody of a court or agent for collection. If the promissory notes are not kept in the file of original papers and have not been sold, pledged or assigned as collateral security or placed in the custody of a court or agent for collection, then they must be kept in a promissory note file. When a borrower is also a comaker, guarantor, or endorser on another loan, the file of such borrower shall be cross-referenced to the other, unless such cross-referencing is included on the alphabetical record required by subrule 16.9(7) or the individual account ledger required by subrule 16.9(4). All instruments taken in connection with a loan and signed by a borrower must bear the loan number. No instrument or part thereof shall be left blank for completion after the borrower(s) has signed the instrument. 16.9(7) Index. An alphabetical index shall be maintained for each borrower, endorser, comaker, surety or other party currently indebted to the licensee or to any other business operated within the same office, room, suite or place of business. The index shall show the following information: the name of the obligor, the account number assigned to the obligor’s indebtedness, the type of indebtedness (regulated loan, industrial loan, insurance, or any receivable), information showing whether the obligor is other than a borrower and sufficient information to locate all account ledgers. 16.9(8) Disbursement voucher. Licensees shall use, in conjunction with each loan, a disbursement voucher or equivalent document showing a detailed itemization of the distribution of the loan proceeds. 16.9(9) Denial file. For each application the licensee denies, the licensee shall retain a copy of the application and a copy of the adverse action notice. The licensee may maintain this information in one file in either alphabetical or chronological order. 16.9(10) General business records. A licensee must keep the following general business records for at least 36 months: a. All checkbooks, check registers, bank statements, deposit slips, withdrawal slips, and canceled checks (or copies thereof) relating to the industrial loan business of the licensee. b. Complete records (including invoices and supporting documentation) for all expenses and fees paid on behalf of each loan applicant, including a record of the date and amount of all such payments actually made by each loan applicant. c. Copies of all federal tax withholding forms, reports of income for federal taxation, and evidence of payments to all employees, independent contractors, and others compensated by a licensee in connection with the conduct of the industrial loan business. d. All correspondence and other records relating to the maintenance of any surety bond required by Iowa Code chapter 536A. e. Copies of all reports of audits, examinations, inspections, reviews, investigations, or other similar functions performed by any third party, including but not limited to the superintendent or any other regulatory or supervisory authority. f. Copies of all advertisements and solicitations concerning industrial loan services directed at Iowa residents, including advertisements and solicitations on the Internet or by other electronic means, in the format (e.g., recorded sound, video, print) in which the advertisements and solicitations were published or distributed. 16.9(11) Disposal of records. If a licensee or former licensee disposes of records at the end of the retention period, the licensee or former licensee shall dispose of the records in a reasonable manner that safeguards any identification information, as defined in Iowa Code section 715A.8(1)“a.” The owners and directors of licensees and former licensees are responsible for ensuring that this requirement is met. 187—16.10(17A,536A) Complaints and investigations. 16.10(1) The superintendent may, at any time and as often as the superintendent deems necessary, investigate a licensee and examine the licensee’s books, accounts, records, and files. 16.10(2) The superintendent may investigate complaints about, or alleged violations by, any licensee. 16.10(3) The following shall constitute a complaint or alleged violation: a. A written complaint received from a consumer, member of the public, employee business affiliate, or other governmental agency. b. Notice to the superintendent from any source that the licensee has been the subject of disciplinary proceedings in another jurisdiction. c. Notice to the superintendent from any source that an individual with control of the licensee has been convicted of forgery, embezzlement, obtaining money under false pretenses, extortion, conspiracy to defraud, or other similar offense, in a court of competent jurisdiction in this state or in any other state, territory, or district of the United States, or in any foreign jurisdiction.187—16.11(17A,536A) Disciplinary action. 16.11(1) The superintendent has authority pursuant to Iowa Code chapters 536A and 17A to impose discipline for violations of Iowa Code chapter 536A and the rules promulgated thereunder. 16.11(2) Grounds for discipline. The superintendent may impose any of the disciplinary sanctions set out in Iowa Code section 536A.18(2) when the superintendent finds any of the following: a. The licensee has abandoned its place of business for 60 or more days. b. The licensee fails to fully cooperate with an examination or investigation, including failing to respond to an inquiry from the superintendent within 30 days of the date the superintendent mails a written communication directed to the licensee’s last-known address on file with the superintendent. c. The licensee has engaged in any conduct that subverts or attempts to subvert an examination or investigation by the superintendent. d. The licensee continues to operate an industrial loan business without an active and current license. e. The licensee fails to notify the superintendent within 10 days of the occurrence of one of the significant events set forth in rule 187—16.7(17A,536A). f. The licensee fails to notify the superintendent of a change in control, name, or principal place of business. g. The licensee operates an industrial loan business in the same location as another business without the superintendent’s written approval. h. Another state or jurisdiction has denied, suspended, revoked, or refused to renew the licensee’s license, registration, or authorization to engage in the business of making loans under the other state’s or jurisdiction’s law. i. The licensee fails to create and maintain complete and accurate records as required by state or federal law, regulation, or rule. 16.11(3) The superintendent shall not refund the license fee, in whole or in part, of a license that has been suspended, revoked, or surrendered. 187—16.12(17A,536A) Other requirements. 16.12(1) Annual report. Licensees must file with the superintendent an annual report, on forms prescribed by the superintendent, on or before April 15. The information contained in the annual report shall be confidential, and the superintendent may publish the information only in composite form. The superintendent may assess a late fee of $10 for each day the annual report is delinquent. 16.12(2) Reserved.187—16.13(17A,536A) Restrictions on making industrial loans. A licensee shall adhere to the following restrictions related to making industrial loans. 16.13(1) Jurisdiction. A licensee shall have authority to make and complete loans by mail, or by comparable electronic means, from the lender’s licensed office. However, all loans made to Iowa residents pursuant to Iowa Code chapters 536A and 537 must comply with all applicable Iowa laws. 16.13(2) Default charge. Default charges are not to be collected from a borrower if payment is made by a credit accident and health insurance claim. 16.13(3) Branch locations. Licensees may not establish branch locations outside of the United States. These rules are intended to implement Iowa Code chapters 17A and 536A.ARC 2992CBanking Division[187]Notice of Intended ActionTwenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)“b.”
Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.
Pursuant to the authority of Iowa Code sections 17A.3 and 533D.3(7), the Iowa Division of Banking (IDOB) hereby gives Notice of Intended Action to adopt new Chapter 17, “Delayed Deposit Services,” Iowa Administrative Code. The proposed chapter establishes the procedures for an application for a delayed deposit services license; renewal of an existing delayed deposit services license; submission of required notices regarding changes in name, location, or control of a licensee; record-keeping requirements for licensees; and procedures for complaints, investigations, and disciplinary actions. The proposed chapter specifically instructs licensees and applicants regarding the requirements to use the nationwide multistate licensing system to apply for and maintain delayed deposit services licenses. The nationwide multistate licensing system makes the licensing process faster, easier, and more uniform for both licensees and the licensing staff who process applications and other submissions. In the interest of making state government more efficient and transparent, the structure of these rules is very similar to the structure of other rules applicable to nondepository financial institutions. Any interested person may make written or oral suggestions or comments on the proposed chapter on or before April 19, 2017. Comments should be directed to Zachary Hingst, Legal Counsel, Iowa Division of Banking, 200 E. Grand Avenue, Suite 300, Des Moines, Iowa 50309; by telephone at (515)281-4014; or by e-mail to zak.hingst@idob.state.ia.us. A public hearing will be held at 9 a.m. on April 19, 2017, at the offices of the Iowa Division of Banking, 200 E. Grand Avenue, Suite 300, Des Moines, Iowa. At the hearing, persons who wish to speak will be asked to give their names and addresses for the record and to confine their remarks to the subject of the proposed chapter. Any person who plans to attend the public hearing and has special requirements, such as those related to hearing or mobility impairments, should contact the IDOB to discuss specific needs. No existing fees are being altered and no new fees are being added; therefore, the IDOB has concluded that the proposed rules will have no fiscal impact. These rules are subject to waiver or variance pursuant to 187—Chapter 12. No existing authorized activities are being restricted, no new activities are being authorized, no existing fees are being increased, and no new fees are being added. The IDOB has therefore concluded that the proposed rules should not have an impact on jobs in Iowa. These rules are intended to implement Iowa Code chapters 17A and 533D. The following amendment is proposed.
ITEM 1. Adopt the following new 187—Chapter 17: CHAPTER 17DELAYED DEPOSIT SERVICES187—17.1(17A,533D) Definitions. For the purposes of this chapter, the definitions in Iowa Code chapter 533D shall apply. In addition, unless the context otherwise requires: "Delayed deposit transactions" means the activities of a “delayed deposit services business” as defined in Iowa Code section 533D.2(2). These transactions qualify as consumer loans subject to the Iowa Consumer Credit Code, Iowa Code chapter 537, if the borrower is a person other than an organization and the debt is incurred for personal, family, or household use. "License application" means an application submitted to the superintendent for a license to operate as a delayed deposit services business in accordance with the provisions of Iowa Code chapter 533D. "Maker" means a person who issues a check in order to enter into a delayed deposit transaction. "Nationwide multistate licensing system" "NMLS" means a multistate licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and regulation of nondepository financial institutions.187—17.2(17A,533D) Utilization of NMLS. All application and licensing information shall be submitted through the NMLS including but not limited to the following: original application information; changes in application information; license renewal information; changes in name, location, and control; and notices of significant events. The applicant or licensee shall pay any fees required by NMLS including but not limited to the following: system processing fees, background check fees, and credit background check fees.187—17.3(17A,533D) Application for license. 17.3(1) An application for a license to operate a delayed deposit services business in Iowa shall be submitted to the superintendent on the form provided and with the information requested through the NMLS. The superintendent may consider an application withdrawn if it does not contain all of the information required and the missing information is not submitted to the superintendent within 30 days after the superintendent requests the missing information. The applicant may also request that the application be withdrawn at any time before the superintendent has decided to grant or deny the application. 17.3(2) Each officer, director and individual who has control of an applicant must provide fingerprints, authorize a fingerprint background check through NMLS, and pay the appropriate fees for the purpose of conducting a national criminal history background check through the Federal Bureau of Investigation. 17.3(3) The applicant shall submit with the application an application fee of $100 and an initial license fee of $250. The superintendent shall refund the initial license fee if the application is denied, but the application fee is not subject to refund. 17.3(4) If any information material to the application changes after the applicant files the initial application, the applicant shall provide updated information to the superintendent within 10 days of the change. When such a material change in information has occurred, the superintendent may deny an application if the applicant fails to provide updated information within the prescribed time frame. 17.3(5) An applicant for a license to enter into delayed deposit transactions must file with the superintendent a $25,000 surety bond in compliance with the provisions of Iowa Code section 533D.3(3)“b.” 17.3(6) Licenses expire on the next December 31 after they are issued, but licenses granted on or after November 1 but before January 1 will not expire until December 31 of the following year. For example, a license granted on November 17, 2017, would not expire until December 31, 2018.187—17.4(17A,533D) Grounds for approval or denial. 17.4(1) The superintendent shall approve or deny a license application in accordance with the provisions of Iowa Code section 533D.3. 17.4(2) The following may be considered evidence that the business of the applicant may not be operated lawfully and honestly consistent with the purposes of Iowa Code chapter 533D and may therefore be considered grounds for denial of an application: a. An applicant, or an officer, director, or individual who has control of an applicant, has had a mortgage loan originator license or any lending license revoked in any governmental jurisdiction. b. An applicant, or an officer, director, or individual who has control of an applicant, has been convicted of, or pled guilty or no contest to, a felony in a domestic, foreign, or military court if such felony involved an act of fraud, dishonesty, or breach of trust, or money laundering.187—17.5(17A,533D) Renewal of license. 17.5(1) To remain authorized to enter into delayed deposit transactions in Iowa, a licensee must renew a license before the expiration date of the license. A licensee who fails to renew a license before the expiration date is not authorized to enter into delayed deposit transactions after the expiration date. 17.5(2) An application to renew a license shall be submitted to the superintendent on the form provided and with the information requested through the NMLS by December 1 of the year of expiration. For example, for a license that will expire on December 31, 2017, an application for renewal shall be submitted by December 1, 2017. All requested information, including any material change to information contained in the original application, shall be provided to the superintendent. 17.5(3) The superintendent shall grant an application to renew a license if: a. The licensee submits the application and the appropriate renewal fee by December 1, or the licensee submits the application after December 1 but before January 1 and pays the appropriate renewal fee and the appropriate late fee; b. The application is fully completed and includes all necessary information; and c. The application does not reveal grounds to deny a license. 17.5(4) It is within the discretion of the superintendent to reject for processing a renewal application submitted after December 31 or to treat such an application as an application for a new license. A licensee who fails to renew a license before the expiration date is not authorized to enter into delayed deposit transactions in Iowa after the expiration date.187—17.6(17A,533D) Changes in the licensee’s name, location, or control. 17.6(1) A licensee wishing to change the name or location of a delayed deposit services business shall notify the superintendent at least 30 days prior to the requested change. The request shall include proof that the licensee has either obtained a new bond or amended the existing bond to reflect the new name or location. The licensee shall submit a $25 fee per license in conjunction with the request. A licensee may not enter into delayed deposit transactions under a different name without providing such notice and submitting the required fee. 17.6(2) A licensee wishing to establish a branch office must submit the application to the superintendent on the form provided and with the information requested through the NMLS, along with a fee of $250. Licenses issued to branch offices are treated as independent licenses and are subject to the renewal requirements, fees, and procedures specified in rule 187—17.5(17A,533D). 17.6(3) When change of control of a licensee is proposed, the party that will assume control of the licensee shall give notice to the superintendent at least 60 days before the proposed change will take effect. Change of control is defined in Iowa Code section 533D.6. The party that will assume control of the licensee shall furnish the superintendent with the same information required of initial applicants for a license, along with a fee of $100. The party that will assume control may be required to provide fingerprints, authorize a fingerprint background check through NMLS, and pay the appropriate fees for the purpose of conducting a national criminal history background check through the Federal Bureau of Investigation. The superintendent shall approve or deny the request in accordance with the provisions of Iowa Code section 533D.3. 17.6(4) Failure to notify the administrator within the prescribed time as required by this rule may subject the licensee to disciplinary action.187—17.7() Reserved.187—17.8(17A,533D) Administrative fees. 17.8(1) Examination or investigation fees. A licensee shall pay an investigation or examination fee as determined by the superintendent based on the actual cost of the operation of the finance bureau of the banking division, as described in Iowa Code section 533D.11(3). 17.8(2) Late fees for failing to respond. In the process of administering this chapter, the superintendent may require a person to provide responses to formal orders, examinations, or complaint inquiries. If a person fails to respond within 30 days of the request, the superintendent may assess a penalty of $10 per day after the initial 30 days. 17.8(3) NMLS system processing fees. In addition to the fees set forth in this chapter, the applicant or licensee shall pay any fee assessed by the NMLS attributed to the licensee’s record in the NMLS including but not limited to the initial set-up fee and annual processing fee.187—17.9(17A,533D) Licensee records. 17.9(1) General record requirements. A licensee must keep records that allow the superintendent to determine the licensee’s compliance with relevant statutes and regulations. a. The licensee may keep the records as a hard copy or in an electronic equivalent. b. The licensee shall keep records for at least 24 months from the date of the final transaction with the borrower. c. The licensee shall maintain all books and records in good order and shall produce books and records for the superintendent upon request. Failure to produce such books and records within 30 days of the superintendent’s request may be grounds for disciplinary action against the licensee. d. The obligation to maintain records continues even after the licensee ceases business operations in Iowa and turns in or surrenders its license. The owners and directors of the licensee are responsible for ensuring that this requirement is met. 17.9(2) Required records. A licensee making or servicing delayed deposit transactions shall keep, at its principal place of business, a loan register, an account ledger, a loan file, an index, an application log, a denial file, and a disbursement voucher. 17.9(3) Loan register. The loan register shall include the following information for every loan that is made: the account number, the date of the transaction, the name of the borrower, the amount financed, and the amount of the borrower’s check. The register shall be kept chronologically in the order the loans closed. A licensee may combine the loan register with the application log. 17.9(4) Account ledger. A delayed deposit services licensee shall maintain an account ledger for each borrower, which shall show: a. The name and address of the borrower, the loan number, the loan date, the maturity date, the payment terms, the amount financed, and the total of payments. b. A transaction history that lists all transactions with the borrower. Payments shall be posted to the account ledger effective the date payments were received. Payment entries shall show the date payment was received, the total amount of the payment, and a description of how the payment was applied to the borrower’s account. Other transactions shall be fully described. Corrections to the transaction history shall be made by corrective entry and not by erasure. 17.9(5) Loan file. The loan file consists of the application, the loan agreement, notice pursuant to Iowa Code section 533D.9(2), and all required truth-in-lending disclosures for each loan. 17.9(6) Index. An alphabetical record shall be maintained and show the name of each borrower, endorser, comaker, or surety who is currently indebted to the licensee, together with sufficient information to locate the account ledger. 17.9(7) Application log. The application log is a chronological list of applications received. The application log shall include the name of the applicant, the date when the application was received, whether the loan was made or denied, and the date when the loan was made or denied if that date differs from the date when the licensee received the application. For approved applications, the application log shall show the date when the loan closed and the name of the borrower. For record-keeping purposes, an application is a prospective borrower’s oral or written request for a licensee to extend credit that is made in accordance with the procedures established by the licensee for the type of credit requested. 17.9(8) Denial file. For each application the licensee denies, the licensee shall retain a copy of the application and a copy of the adverse action notice. The licensee may maintain this information in one file in either alphabetical or chronological order. 17.9(9) Disbursement voucher. Licensees shall use a disbursement voucher or equivalent document in conjunction with each loan showing a detailed itemization of the distribution of the loan proceeds. 17.9(10) General business records. A licensee must keep the following general business records for at least 36 months: a. All checkbooks, check registers, bank statements, deposit slips, withdrawal slips, and canceled checks (or copies thereof) relating to the delayed deposit services business of the licensee. b. Complete records (including invoices and supporting documentation) for all expenses and fees paid on behalf of each loan applicant, including a record of the date and amount of all such payments actually made by each loan applicant. c. Copies of all federal tax withholding forms, reports of income for federal taxation, and evidence of payments to all employees, independent contractors, and others compensated by a licensee in connection with the conduct of the delayed deposit services business. d. All correspondence and other records relating to the maintenance of any surety bond required by Iowa Code chapter 533D. e. Copies of all reports of audits, examinations, inspections, reviews, investigations, or other similar functions performed by any third party, including but not limited to the superintendent or any other regulatory or supervisory authority. f. Copies of all advertisements and solicitations concerning delayed deposit services directed at Iowa residents, including advertisements and solicitations on the Internet or by other electronic means, in the format (e.g., recorded sound, video, print) in which the advertisements and solicitations were published or distributed. 17.9(11) Disposal of records. If a licensee or former licensee disposes of records at the end of the retention period, the licensee or former licensee shall dispose of the records in a reasonable manner that safeguards any identification information, as defined in Iowa Code section 715A.8(1)“a.” The owners and directors of licensees and former licensees are responsible for ensuring that this requirement is met.187—17.10(17A,533D) Complaints and investigations. 17.10(1) The superintendent may, at any time and as often as the superintendent deems necessary, investigate a licensee and examine the licensee’s books, accounts, records, and files. 17.10(2) The superintendent may investigate complaints about, or alleged violations by, any licensee. 17.10(3) The following shall constitute a complaint or alleged violation: a. A written complaint received from a consumer, member of the public, employee, business affiliate, or other governmental agency. b. Notice to the superintendent from any source that the licensee has been the subject of disciplinary proceedings in another jurisdiction. c. Notice to the superintendent from any source that an individual with control of the licensee has been convicted of forgery, embezzlement, obtaining money under false pretenses, extortion, conspiracy to defraud, or other similar offense, in a court of competent jurisdiction in this state or in any other state, territory, or district of the United States, or in any foreign jurisdiction.187—17.11(17A,533D) Disciplinary action. 17.11(1) The superintendent has authority pursuant to Iowa Code chapters 533D and 17A to impose discipline for violations of Iowa Code chapter 533D and the rules promulgated thereunder. 17.11(2) Grounds for discipline. The superintendent may impose any of the disciplinary sanctions set out in Iowa Code section 533D.12(2) when the superintendent finds any of the following: a. The licensee has violated a provision of Iowa Code chapter 533D or a rule adopted under Iowa Code chapter 533D or any other state or federal law applicable to the conduct of the licensee’s business. b. A fact or condition exists which, had it existed at the time of the licensee’s original application for a license, would have warranted the superintendent to refuse to issue the original license. c. The licensee is found upon investigation to be insolvent, in which case the license shall be revoked immediately. d. The licensee has violated an order of the superintendent. e. The licensee fails to fully cooperate with an examination or investigation, including failing to respond to an inquiry from the superintendent within 30 days of the date the superintendent mails a written communication directed to the licensee’s last-known address on file with the superintendent. f. The licensee has engaged in any conduct that subverts or attempts to subvert an examination or investigation by the superintendent. g. The licensee continues to operate a delayed deposit services business without an active and current license. h. The licensee operates a delayed deposit services business in the same location as another business without the superintendent’s written approval. i. The licensee has abandoned its place of business for 60 or more days. j. The licensee fails to notify the superintendent within 30 days of the occurrence of one of the significant events set forth in Iowa Code section 533D.5. k. Another state or jurisdiction has denied, suspended, revoked, or refused to renew the licensee’s license, registration, or authorization to operate a delayed deposit services business or enter into delayed deposit transactions under the other state’s or jurisdiction’s law. l. The licensee fails to create and maintain complete and accurate records as required by state or federal law, regulation, or rule. m. The licensee fails to notify the superintendent of a change in control, name, or principal place of business. n. The licensee fails to pay a license fee required by Iowa Code chapter 533D or to maintain a bond required by Iowa Code chapter 533D. 17.11(3) The superintendent shall not refund a license fee, in whole or in part, of a license that has been suspended, revoked, or surrendered.187—17.12(17A,533D) Annual report. Licensees must file with the superintendent an annual report, on forms prescribed by the superintendent, on or before April 15. The information contained in the annual report shall be confidential, and the superintendent may publish the information only in composite form. The superintendent may assess a late fee of $10 for each day the annual report is delinquent.187—17.13(17A,533D) Restrictions on making delayed deposit transactions. A licensee shall adhere to the following restrictions related to making delayed deposit transactions. 17.13(1) A licensee shall not engage in any of the acts prohibited by Iowa Code section 533D.10. 17.13(2) A licensee shall not enter into a new delayed deposit transaction with a maker on the same day the maker pays an existing delayed deposit transaction with the licensee unless: a. The aggregate amount of the check(s) the maker is paying and the new check the maker is writing does not exceed the statutory maximum of $500; and b. The licensee does not hold more than two outstanding checks in the maker’s name, including the check(s) being paid and the new check being issued. These rules are intended to implement Iowa Code chapters 17A and 533D.ARC 2993CBanking Division[187]Notice of Intended ActionTwenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)“b.”
Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.
Pursuant to the authority of Iowa Code sections 17A.3 and 535B.14, the Iowa Division of Banking (IDOB) hereby gives Notice of Intended Action to amend Chapter 18, “Mortgage Bankers, Mortgage Brokers, and Real Estate Closing Agents,” Iowa Administrative Code. The proposed amendments reflect partial compliance with Iowa Code section 17A.7(2), which states that, as of July 1, 2012, “over each five-year period of time, an agency shall conduct an ongoing and comprehensive review of all of the agency’s rules [and t]he goal of the review is the identification and elimination of all rules of the agency that are outdated, redundant, or inconsistent or incompatible with statute or its own rules or those of other agencies.” The amendments to Chapter 18 are proposed as a result of the IDOB’s review of the existing administrative rules. The proposed amendments are intended to replace antiquated terminology and statutory references, to eliminate outdated requirements, and to update certain ongoing requirements to accurately reflect current practice, specifically regarding the use of the nationwide multistate licensing system. Any interested person may make written or oral suggestions or comments on the proposed amendments on or before April 19, 2017. Comments should be directed to Zachary Hingst, Legal Counsel, Iowa Division of Banking, 200 E. Grand Avenue, Suite 300, Des Moines, Iowa 50309; by telephone at (515)281-4014; or by e-mail to zak.hingst@idob.state.ia.us. No existing fees are being altered and no new fees are being added; therefore, the IDOB has concluded that the proposed amendments will not have any fiscal impact. These rules are subject to waiver or variance pursuant to 187—Chapter 12. No existing authorized activities are being restricted, no new activities are being authorized, no existing fees are being increased, and no new fees are being added. The IDOB has therefore concluded that the proposed amendments should not have an impact on jobs in Iowa. These amendments are intended to implement Iowa Code chapters 17A and 535B. The following amendments are proposed.
ITEM 1. Amend rule 187—18.1(17A,535B), definitions of “License application,” “Licensee,” “Mortgage loan originator,” “Nationwide mortgage licensing system and registry” and “Services a loan,” as follows: "License application" means an electronic applicationor registration submitted to the administrator for a license to operate as a mortgage banker, mortgage broker, or closing agent in accordance with the provisions of 2009 Iowa Code Supplement section 535B.4 as amended by 2010 Iowa Acts, Senate File 2348, section 4. "Licensee" means a person who has a license to operate as a mortgage banker, mortgage broker, or closing agent in accordance with the provisions of 2009 Iowa Code Supplement section 535B.4 as amended by 2010 Iowa Acts, Senate File 2348, section 4. "Mortgage loan originator" means a natural person who is licensed under 2009 Iowa Acts, Senate File 355,Iowa Code chapter 535D and 187—Chapter 19. "Nationwide mortgagemultistate licensing system and registry" "NMLS&RNMLS" means a mortgagemultistate licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of mortgage loan originators, mortgage providers, mortgage lenders, mortgage brokers, and mortgage servicers. "Services a loan" "servicing a loan" means undertaking the direct collection of payments on a loan from the borrower orholding the right to undertake direct collection of payments on a loan from the borrower.Undertaking the direct collection of payments means receiving any scheduled periodic payments from a borrower pursuant to the terms of any federally related mortgage loan. Holding the right to undertake direct collection of payments means holding the right to service a loan, including where the holder of this right contracts with or otherwise arranges for another person to service the loan. ITEM 2. Amend rule 187—18.2(17A,535B) as follows:187—18.2(17A,535B) Application for license. 18.2(1) Application for a license to operate as a mortgage banker, mortgage broker, or closing agent shall be submitted to the administrator through the NMLS&RNMLS, and all requested information shall be provided on or with the application form. The administrator may consider an application or registration withdrawn if itthe application or registration does not contain all of the information required and the information is not submitted to the administrator within 30 days after the administrator requests the information. 18.2(2) Each officer, director, and individual who has control of an applicant must provide fingerprints, authorize a fingerprint background check through NMLS, and pay the appropriate fees for the purpose of conducting a national criminal history background check through the Federal Bureau of Investigation. 18.(2) 18.2(3) The license application shall be accompanied by a fee of $500 plus $40 per additional branch location. The $500 fee is not subject to refund. The applicant shall also pay any additional fees required by the NMLS&RNMLS including but not limited to the following: system processing fees, background check fees, and credit background check fees. 18.(3) 18.2(4) If any information changes after the filing of the initial application, the applicant shall provide updated information to the administrator in writing within 10 calendar days of the change. Failure to provide updated information when a change has occurred may result in denial of the application. 18.(4) 18.2(5) The administrator shall approve or deny a license application in accordance with the provisions of 2009 Iowa Code Supplement section 535B.5 as amended by 2010 Iowa Acts, Senate File 2348, section 5. A person shall not be eligible for licensing as a mortgage banker or mortgage broker unless all mortgage loan originators who are employed by, under contract with, or exclusive agents of the person have successfully completed the licensing requirements of Iowa Code chapter 535D. 18.(5) 18.2(6) An applicant for a mortgage banker or mortgage broker license must file with the administrator a bond complying with the provisions of 2009 Iowa Code Supplement section 535B.9 as amended by 2010 Iowa Acts, Senate File 2348, section 7. The bond amount required to be filed and maintained by the applicant shall be set and adjusted as necessary annually in accordance with the following scale, based on the volume of residential mortgage loans made, originated, arranged, brokered, processed, underwritten, and serviced, as the case may be, by the applicant or licensee during the preceding calendar year:LoansBond Amount$0 – $100,000,000$100,000Over $100,000,000$150,000 18.(6) 18.2(7) An applicant for a closing agent license must file with the administrator a bond in the amount of $25,000 which complies with the provisions of 2009 Iowa Code Supplement section 535B.9 as amended by 2010 Iowa Acts, Senate File 2348, section 7. 18.(7) 18.2(8) Licenses expire on the next December 31 after issuance. However, licenses granted on or after November 1 but before January 1 will not expire until December 31 of the following year. For example, a license granted on November 17, 2008, would not expire until December 31, 2009. ITEM 3. Amend subrule 18.3(2) as follows: 18.3(2) Application to renew a license shall be submitted to the administrator beforeby December 1 of the year of expiration through the NMLS&RNMLS. All requested information shall be provided to the administrator as directed by the NMLS&RNMLS. Applications for renewal of a license to transact business solely as a mortgage broker or closing agent must be accompanied by a fee of $200. Applications for renewal of a license to transact business as a mortgage banker must be accompanied by a fee of $400. In addition, the mortgage banker or mortgage broker licensee shall pay a branch office renewal fee of $40 per branch. The administrator may assess late fees of up to $10 per day for applications submitted after December 1. ITEM 4. Adopt the following new rule 187—18.4(17A,535B):187—18.4(17A,535B) Grounds for approval or denial. 18.4(1) The superintendent shall approve or deny a license application in accordance with the provisions of Iowa Code section 535B.5. 18.4(2) The following may be considered evidence that the business of the applicant may not be operated honestly in the public interest consistent with the purposes of Iowa Code chapter 535B and may therefore be considered grounds for denial of an application: a. An applicant, or an officer, director, or individual who has control of an applicant, has had a mortgage loan originator license or any lending license revoked in any governmental jurisdiction. b. An applicant, or an officer, director, or individual who has control of an applicant, has been convicted of, or has pleaded guilty or no contest to, a felony in a domestic, foreign, or military court if such felony involved an act of fraud, dishonesty, or breach of trust, or money laundering. A pardon of a conviction shall not constitute a conviction for purposes of this subrule. ITEM 5. Amend rule 187—18.7(17A,535B), introductory paragraph, as follows:187—18.7(17A,535B) Notice of significant events. A licensee shall notify the administrator immediately and in writing within five business10 days of the occurrence of any of the following events. ITEM 6. Amend rule 187—18.8(17A,535B) as follows:187—18.8(17A,535B) Changes in the licensee’s business; fees. 18.8(1) No mortgage banker or mortgage broker licensee shall conduct the residential mortgage lending activities authorized in Iowa Code chapter 535B under any name other than that stated on the license. 18.8(2) A licensee shall notify the administrator through the NMLS&RNMLS of a change in the location, the addition, or the closing of any office prior to the change, addition, or closure. 18.8(3) A mortgage banker or mortgage broker licensee shall maintain on file with the administrator, through the NMLS&RNMLS, a list of all mortgage loan originators who are employed by, under contract with, or exclusive agents of the licensee. The licensee shall pay any fees assessed by the NMLS&RNMLS to add a mortgage loan originator to the licensee’s list in the NMLS&RNMLS. 18.8(4) When a mortgage loan originator ceases to be employed by, under contract with, or an exclusive agent of a mortgage banker or mortgage broker licensee, the licensee shall notify the administrator, through the NMLS&RNMLS, within five business10 days. The notification shall include the reasons for the termination of the mortgage loan originator’s employment, contract, or agency. 18.8(5) A mortgage banker or mortgage broker licensee shall notify the administrator through the NMLS&RNMLS of the addition of any mortgage loan originator, owner, officer, partner, or director within five business10 days of addition. 18.8(6) Failure to notify the administrator within the prescribed time as required by this rule may subject the licensee to disciplinary action. 18.8(7) NMLS&RNMLS system processing fees. In addition to the fees set forth in this chapter, the applicant or licensee shall pay any fee assessed by the NMLS&RNMLS attributed to the licensee’s record in the NMLS&R systemNMLS including but not limited to the initial set-up fee, an annual processing fee, and a loan sponsorship transfer fee. 18.8(8) When a change of control of a licensee is proposed, the party that will assume control of the licensee shall give notice to the superintendent through the NMLS at least 60 days before the proposed change will take effect. Control is defined in Iowa Code section 535B.6A. The party that will assume control of the licensee shall furnish the superintendent through the NMLS with the same information required of initial applicants for a license, along with the appropriate fee. The party that will assume control may be required to provide fingerprints, authorize a fingerprint background check through NMLS, and pay the appropriate fees for the purpose of conducting a national criminal history background check through the Federal Bureau of Investigation. The superintendent shall approve or deny the request in accordance with the provisions of Iowa Code section 535B.5 and rule 187—18.4(17A,535B). ITEM 7. Amend subrule 18.16(4) as follows: 18.16(4) Application log. A mortgage banker or mortgage broker licensee shall maintain an application log. The application log is a chronological list of applications received. The application log shall include the name of the applicant,; date the application was completed, the; name of the broker, the lender, and the mortgage loan originator, as applicable, including the unique NMLS&RNMLS identification number assigned to each,; notes for action taken on applications (such as “approved,” “denied,” or “withdrawn”),; and date of action. For approved applications, the application log shall show the date the loan closed and the name of the lender. For purposes of these rules, information from an applicant becomes an application when the licensee obtains the name and social security number of the applicant. ITEM 8. Amend subrule 18.16(5) as follows: 18.16(5) Loan register. A mortgage banker or mortgage broker licensee shall maintain a loan register. The loan register shall include the following information for every loan that is made: the date of the transaction,; the name of the borrower,; the name of the broker, the lender, the mortgage loan originator, and the closing agent, as applicable, including the unique NMLS&RNMLS identification number assigned to each,; and the amount financed. The register shall be kept chronologically in the order the loans closed. The loan register may be combined with the application log. ITEM 9. Amend subrule 18.16(6) as follows: 18.16(6) Application file. A mortgage banker or mortgage broker licensee shall maintain an application file for each application received. The application file shall contain copies of the application and any required disclosures. A copy of any adverse action taken on the application, including any documentation supporting that action such as an appraisal report or credit report, shall also be placed in the application file. The application file shall also contain the name of the broker, the lender, and the mortgage loan originator, as applicable, including the unique NMLS&RNMLS identification number assigned to each. ITEM 10. Amend subrule 18.16(7) as follows: 18.16(7) Loan file. A mortgage banker or mortgage broker licensee shall maintain a loan file for each loan made. The loan file consists of the application file, the appraisal report, underwriting verifications, the closing file described in subrule 18.22(6) including other supporting documentation, and documents from the loan closing. These documents include: note, mortgage, all truth-in-lending disclosures, and all Real Estate Settlement Procedures Act disclosures. The loan file shall also contain the name of the broker, the lender, the mortgage loan originator, and the closing agent, as applicable, including the unique NMLS&RNMLS identification number assigned to each. ITEM 11. Amend subparagraph 18.16(11)"a" as follows: (3) Information included in the “good faith estimate” (GFE)initial disclosure required under the federal Real Estate Settlement Procedures Act, including the rate, the date of any interest rate lock, and an itemization of settlement charges and all broker compensation. ITEM 12. Amend subparagraph 18.16(11)"a" as follows: (4) Information included in the final HUD-1 Settlement Statementclosing disclosure. ITEM 13. Amend rule 187—18.17(17A,535B) as follows:187—18.17(17A,535B) Mortgage call reports. Each mortgage banker and mortgage broker licensee shall submit to the NMLS&RNMLS reports of condition, which shall be in such form and shall contain such information as the NMLS&RNMLS shall require. For each day after the NMLS&R-establishedNMLS-established due date that the report is nonot received, the administrator may assess late fees of $10 per day. ITEM 14. Amend paragraph 18.18(1)"d" as follows: d. An advertisement shall clearly show the licensee’s unique NMLS&RNMLS identification number. ITEM 15. Amend paragraph 18.20(2)"j" as follows: j. The licensee fails to notify the administrator within five10 days of the occurrence of one of the significant events set forth in rule 187—18.7(17A,535B). ITEM 16. Amend subrule 18.22(2) as follows: 18.22(2) A closing agent shall disburse or deliver funds only in accordance with closing instructions from the lender, the attorney’s title opinion or title commitment, and the real estate purchase agreement, when applicable. All disbursements shall agree towith the final signed settlement statementclosing disclosure. ITEM 17. Amend paragraph 18.22(6)"b" as follows: b. A signed settlement statementclosing disclosure that totals properly and is supported by written instructions for all amounts (such as closing instructions, invoices, or written payoffs). If the settlementclosing disclosure requires changes, a copy of the new settlement statementclosing disclosure with changes clearly documented shall be maintained in the file. ITEM 18. Amend paragraph 18.22(6)"e" as follows: e. Detailed records of the individuals present at each closing, including copies of photo identification, and specifying where and when each closing is held. ITEM 19. Amend 187—Chapter 18, implementation sentence, as follows: These rules are intended to implement Iowa Code chapterchapters 17A and 535B and 2010 Iowa Acts, Senate File 2348.ARC 2991CBanking Division[187]Notice of Intended ActionTwenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)“b.”
Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.
Pursuant to the authority of Iowa Code sections 17A.3 and 535D.21, the Iowa Division of Banking (IDOB) hereby gives Notice of Intended Action to amend Chapter 19, “Mortgage Loan Originators,” Iowa Administrative Code. The proposed amendments reflect partial compliance with Iowa Code section 17A.7(2), which states that, as of July 1, 2012, “over each five-year period of time, an agency shall conduct an ongoing and comprehensive review of all of the agency’s rules [and t]he goal of the review is the identification and elimination of all rules of the agency that are outdated, redundant, or inconsistent or incompatible with statute or its own rules or those of other agencies.” The proposed amendments to Chapter 19 are intended to clarify the meaning of Chapter 19, to eliminate outdated requirements, and to reflect current administrative practices, specifically those regarding the use of the nationwide multistate licensing system. Any interested person may make written or oral suggestions or comments on the proposed amendments on or before April 19, 2017. Comments should be directed to Zachary Hingst, Legal Counsel, Iowa Division of Banking, 200 E. Grand Avenue, Suite 300, Des Moines, Iowa 50309; by telephone at (515)281-4014; or by e-mail to zak.hingst@idob.state.ia.us. No current fees are being changed and no new fees are being added; therefore, the IDOB has concluded that the proposed amendments will not have a fiscal impact. These rules are subject to waiver or variance pursuant to 187—Chapter 12. Because no existing authorized activities are being restricted, no new activities are being authorized, no existing fees are being increased, and no new fees are being added, the IDOB has concluded that the proposed amendments will have no impact on jobs in Iowa. These amendments are intended to implement Iowa Code chapters 17A and 535D. The following amendments are proposed.
ITEM 1. Amend rule 187—19.1(17A,83GA,SF355) as follows:187—19.1(17A,83GA,SF355535D) Definitions. For the purposes of this chapter, the definitions in 2009 Iowa Acts, Senate File 355,Iowa Code section 535D.3 shall apply. In addition, unless the context otherwise requires, the following definitions shall apply to this chapter and to 2009 Iowa Acts, Senate File 355Iowa Code chapter 535D: "Licensee" means a person who has a license to operate as a mortgage loan originator in accordance with the provisions of 2009 Iowa Acts, Senate File 355, section 4Iowa Code section 535D.4. "Nationwide mortgagemultistate licensing system and registry" "NMLS&RNMLS" means a mortgagemultistate licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of mortgage loan originators, mortgage providers, mortgage lenders, mortgage brokers, and mortgage servicers. "SAFE mortgage loan originator test" means the licensing test approved by the NMLS&RNMLS in accordance with the provisions of 2009 Iowa Acts, Senate File 355, section 9Iowa Code section 535D.8. "Servicer" means a person that collects or receives payments, including principal, interest and trust items such as hazard insurance, property taxes and other amounts due, on behalf of a note holder or investor in accordance with the terms of a residential mortgage loan. "Superintendent" means the superintendent of banking appointed pursuant to Iowa Code section 524.201. "Takes a residential mortgage loan application," with respect to 2009 Iowa Acts, Senate File 355, section 3, subsection 8Iowa Code section 535D.3(8), means:- Any communication, regardless of form, from a mortgage loan originator to a borrower soliciting a loan application or requesting information typically required in an application for the purpose of deciding whether or not to extend the requested offer of a loan to a borrower; or
- Any communication, regardless of form, from a borrower to a mortgage loan originator for an offer or responding to a solicitation for an offer of residential mortgage loan terms or providing information typically required in an application for the purpose of deciding whether or not to extend the requested offer of a loan to a borrower.
Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)“b.”
Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.
Pursuant to the authority of Iowa Code section 181.18, the Iowa Beef Industry Council hereby gives Notice of Intended Action to amend Chapter 1, “Organization and Operation,” Chapter 2, “Rules of Practice,” Chapter 3, “Excise Tax on Beef Sales,” Chapter 4, “Election of Members,” and Chapter 5, “Public Records and Fair Information Practices,” Iowa Administrative Code. 2016 Iowa Acts, House File 2269, changed the name of the Iowa Beef Industry Council to the Executive Committee. The Iowa Beef Cattle Producers Association will continue to do business as the Iowa Beef Industry Council. The legislation reinstated the state beef assessment and required that refunds be requested within 90 days of collection. The proposed amendments reflect other changes to the membership of the Executive Committee and update the address. Any interested persons may make written suggestions or comments on the proposed amendments on or before April 18, 2017. Written comments should be addressed to Chris Freland, Iowa Beef Industry Council, P.O. Box 451, Ames, Iowa 50010. Comments may be sent by e-mail to chris@iabeef.org. The proposed amendments are not subject to waiver. After analysis and review of this rule making, no adverse impact on jobs has been found. These amendments are intended to implement Iowa Code chapter 181. The following amendments are proposed.
ITEM 1. Amend the Agency Name as follows:BEEF INDUSTRY COUNCILBEEF CATTLE PRODUCERS ASSOCIATION, IOWA[101] ITEM 2. Amend rule 101—1.1(181) as follows:101—1.1(181) Iowa beef industry council compositionComposition and purpose. The Iowa beef cattle producers association is doing business as the Iowa beef industry council.The Iowa beef industry council isprovides oversight to the “executive committee” referred to in Iowa Code section 181.6(3)181.3. ItThe executive committee consists of eightten members, two of whom serve ex officio and five of whom are elected and onethree who isare appointed by the respective parties listed in that section. The council engages in market development for beef cattle and veal calves and their products, advances public relations for the beef cattle and veal calf industry, and administers the excise taxstate assessment on beef cattle and veal calf sales imposed in Iowa Code chapter 181. This rule is intended to implement 1986 Iowa Acts, House File 2379, section 3Iowa Code chapter 181. ITEM 3. Amend rule 101—1.2(181), introductory paragraph, as follows:101—1.2(181) Officers. The officers of the Iowa beef industry council shall be as follows: Chair, vice chair, secretary, and treasurerand at large. Each officer shall be elected by a vote of the council. A term of office is one year. ITEM 4. Amend rule 101—1.5(181) as follows:101—1.5(181) Quorum. Two-thirdsA majority of the members eligible to vote shall constitute a quorum. Two-thirds of the council is six members. ITEM 5. Amend subrule 1.7(1) as follows: 1.7(1) TransmittalMonthly remittance form. This form is used to accompany the receipt of checkoff moneys to the council. ITEM 6. Amend rule 101—2.1(181) as follows:101—2.1(181) Public information. The public is invited to obtain information or make informal requests of the council by addressing these matters, either orally or in writing, to the Iowa Beef Industry Council, 123 Airport RoadP.O. Box 451, Ames, Iowa 50010; or at 2055 Ironwood Court, Ames, Iowa 50014. ITEM 7. Amend subrule 2.3(2) as follows: 2.3(2) The petition shall be filed at the office of the council at 123 Airport Road2055 Ironwood Court, Ames, Iowa 50014; or by mail to P.O. Box 451, Ames, Iowa 50010. ITEM 8. Amend rule 101—2.4(181), introductory paragraph, as follows:101—2.4(181) Petition for adoption of rules. An interested person may file with the council a written request that the council adopt, amend, or repeal a rule. The petition shall be addressed to the Iowa Beef Industry Council, 123 Airport RoadP.O. Box 451, Ames, Iowa 50010, and shall include: ITEM 9. Amend 101—Chapter 3, title, as follows:EXCISE TAXSTATE ASSESSMENT ON BEEF SALES ITEM 10. Amend rule 101—3.1(181) as follows:101—3.1(181) Collection of taxassessment. All persons required to pay the excise taxstate assessment under Iowa Code chapter 181 must remit to the council all excise taxesassessments collected during any calendar month, no later than the last day of the month following that calendar monthby the fifteenth of the month following the end of the prior reporting period in which the cattle were sold pursuant to Iowa Code section 181.11(1). ITEM 11. Amend rule 101—3.2(181) as follows:101—3.2(181) Refunds. Refunds shall be paid by the council to any person from whom the excise taxstate assessment is collected, upon timely application to the council as prescribed in Iowa Code section 181.12. ITEM 12. Amend rule 101—3.3(181), introductory paragraph, as follows:101—3.3(181) Applicable dates. A tax is considered “paid” or “remitted,” and a refund application is considered “filed”when made within 90 days after the assessment’s collection: ITEM 13. Amend rule 101—3.4(181) as follows:101—3.4(181) Suspension of excise taxReinstatement of state assessment. Thestate assessment, levy, and collection of the excise tax undercollected pursuant to Iowa Code chapter 181 is suspendedreinstated effective March 1, 2017.All state assessment remittances shall be paid by the fifteenth of the month following the end of the prior reporting period in which the cattle were sold pursuant to Iowa Code section 181.11(1). This rule is intended to implement Iowa Code section 181.7A. ITEM 14. Amend rule 101—4.3(181) as follows:101—4.3(181) Place of filing. Nomination petitions shall be filed with the Iowa Beef Industry Council, 123 Airport RoadP.O. Box 451, Ames, Iowa 50010. ITEM 15. Amend rule 101—4.4(181) as follows:101—4.4(181) Absentee ballot. Requests for absentee ballots may be made by producers by telephone, telegram, in person, or in writing to the Executive Director of the Iowa Beef Industry Council, 123 Airport RoadP.O. Box 451, Ames, Iowa 50010; or at 2055 Ironwood Court, Ames, Iowa 50014. 4.4(1) Absentee ballots shall be returned to the executive director of the Iowa beef industry council, and if returned by mail, shall be mailed with proper postage to the Executive Director of the Iowa Beef Industry Council, 123 Airport RoadP.O. Box 451, Ames, Iowa 50010. 4.4(2) Reserved. ITEM 16. Amend 101—Chapter 5, introductory paragraph, as follows:The Iowa beef industry council hereby adopts, with the following exceptions and amendments, rules of the Governor’s Task Force on Uniform Rules of Agency Procedure relating to public records and fair information practices which are printed in the first volume of the Iowa Administrative Codepublished at https://www.legis.iowa.gov/docs/Rules/Current/UniformRules.pdf on the General Assembly’s Web site. ITEM 17. Adopt the following new definitions in rule 101—5.1(17A,22): "Cattle" means any live domesticated bovine animal regardless of age. "Producer" means any person who owns or acquires ownership of cattle in this state. However, a person shall not be considered a producer if any of the following apply:- The person’s only share in the proceeds of a sale of cattle or beef is a sales commission, handling fee, or other service fee.
- The person acquired ownership of cattle to facilitate the transfer of ownership of such cattle from the seller to a third party; resold such cattle no later than ten days from the date on which the person acquired ownership; and certified as required by the rules adopted by the executive committee.
Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)“b.”
Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.
Pursuant to the authority of Iowa Code section 15.106A, the Iowa Economic Development Authority hereby gives Notice of Intended Action to amend Chapter 5, “Iowa Industrial New Jobs Training Program,” Chapter 7, “Iowa Jobs Training Program,” Chapter 8, “Workforce Development Fund,” Chapter 9, “Workforce Training and Economic Development Funds,” Chapter 20, “Accelerated Career Education (ACE) Program,” and Chapter 58, “New Jobs and Income Program,” Iowa Administrative Code. The proposed amendments make technical changes to the Authority’s administrative rules by replacing the term “vocational” with “career and technical” as required by 2016 Iowa Acts, House File 2392. The Economic Development Authority Board approved these amendments at its meeting held on February 17, 2017. Interested persons may submit comments on or before April 18, 2017. Comments may be submitted to Jennifer Klein, Economic Development Authority, 200 East Grand Avenue, Des Moines, Iowa 50309; telephone (515)725-3124; e-mail Jennifer.Klein@IowaEDA.com. These amendments do not have any fiscal impact to the state of Iowa. After analysis and review of this rule making, no impact on jobs has been found. These amendments are intended to implement 2016 Iowa Acts, House File 2392. The following amendments are proposed.
ITEM 1. Amend rule 261—5.3(15,260E), definition of “Program services,” as follows: "Program services" includes but is not limited to the following:- New jobs training.
- Adult basic education and job-related instruction.
- VocationalCareer andtechnical skill-assessment services and testing.
- Training facilities, equipment, materials, and supplies.
- On-the-job training.
- Administrative expenses for the new jobs training program.
- Subcontracted services with institutions governed by the board of regents, private colleges or universities, or other federal, state, or local agencies.
- Contracted or professional services.
- Issuance of certificates.
Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)“b.”
Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.
Pursuant to the authority of Iowa Code section 15.106A, the Iowa Economic Development Authority hereby gives Notice of Intended Action to amend Chapter 59, “Enterprise Zone (EZ) Program,” and Chapter 68, “High Quality Jobs Program (HQJP),” Iowa Administrative Code. The proposed amendments make technical changes to the Authority’s administrative rules, as required by 2016 Iowa Acts, House File 2443. The amendment to rule 261—59.15(15E) provides that the Authority may amend an enterprise zone agreement for compliance reasons if the total award amount is not increased. The amendments to rule 261—68.4(15) change the existing phrase “new investment directly related to jobs created or retained by the project” to “new investment.” The Economic Development Authority Board approved these amendments at its meeting held on February 17, 2017. Interested persons may submit comments on or before April 18, 2017. Comments may be submitted to Jennifer Klein, Economic Development Authority, 200 East Grand Avenue, Des Moines, Iowa 50309; telephone (515)725-3124; e-mail Jennifer.Klein@IowaEDA.com. These amendments do not have any fiscal impact to the state of Iowa. After analysis and review of this rule making, no impact on jobs has been found. These amendments are intended to implement 2016 Iowa Acts, House File 2443. The following amendments are proposed.
ITEM 1. Amend subrule 59.15(3) as follows: 59.15(3) On or after July 1, 2014, a city or county shall not create an enterprise zone under Iowa Code chapter 15E, division XVIII, or enter into a new agreement or amend an existing agreement under Iowa Code chapter 15E, division XVIII.A city or county and the authority, with the approval of the authority board, may amend an agreement for compliance reasons if the amendment does not increase the amount of incentives awarded under the agreement. ITEM 2. Amend subrule 68.4(4) as follows: 68.4(4) Investment tax credit. a. Claiming the investment tax credit.Pursuant to Iowa Code section 15.333, the approved business may claim an investment tax credit equal to a percentage of the new investment directly related to jobs created or retained by the project. The tax credit shall be earned when the qualifying asset is placed in service. (1) Five-year amortization period. The tax credit shall be amortized over a five-year period. The annual amounts that may be claimed by the business during that period are subject to negotiations. The final five-year amortization period and the negotiated annual amounts will be specified in a contract entered into with the authority. The tax credit shall be allowed against taxes imposed under Iowa Code chapter 422, division II, III, or V and against the moneys and credits tax imposed in Iowa Code section 533.24. (2) Flow-through of tax credits. If the business is a partnership, S corporation, limited liability company, cooperative organized under Iowa Code chapter 501 or 501A and filing as a partnership for federal tax purposes, or estate or trust electing to have the income taxed directly to the individual, an individual may claim the tax credit allowed. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings of the partnership, S corporation, limited liability company, cooperative organized under Iowa Code chapter 501 or 501A and filing as a partnership for federal tax purposes, or estate or trust. (3) Seven-year carryforward. A tax credit in excess of the tax liability for the tax year may be credited to the tax liability for the following seven years or until depleted, whichever occurs first. b. Investment qualifying for the tax credit.For purposes of this subrule, new investment directly related to jobs created or retained by the project means all of the following: (1) The cost of machinery and equipment, as defined in Iowa Code section 427A.1, subsection 1, paragraphs “e” and “j,” purchased for use in the operation of the approved business. (2) The purchase price of real property and any buildings and structures located on the real property. (3) The cost of improvements made to real property which is used in the operation of the approved business. (4) The annual base rent paid to a third-party developer by an approved business for a period equal to the term of the lease agreement but not to exceed the maximum term specified in a contract entered into with the authority, provided the cumulative cost of the base rent payments for that period does not exceed the cost of the land and the third-party developer’s costs to build or renovate the building for the approved business. Annual base rent shall be considered only when the project includes the construction of a new building or the major renovation of an existing building. The approved business shall enter into a lease agreement with the third-party developer for a minimum of five years.The approved business shall not claim a tax credit above the amount defined in the final award documentation or the amount specified in a contract entered into with the authority. ITEM 3. Amend subrule 68.4(5) as follows: 68.4(5) Insurance premium tax credit. Pursuant to Iowa Code section 15.333A, the approved business may claim an insurance premium tax credit equal to a percentage of the new investment directly related to jobs created or retained by the project. a. Claiming the tax credit.The tax credit shall be earned when the qualifying asset is placed in service. The tax credit shall be amortized equally over a five-year period which the authority will, in consultation with the eligible business, define. The five-year amortization period shall be specified in a contract entered into with the authority. The tax credit shall be allowed against taxes imposed under Iowa Code chapter 432. A tax credit in excess of the tax liability for the tax year may be credited to the tax liability for the following seven years or until depleted, whichever occurs first. b. Investment qualifying for the tax credit.For purposes of this subrule, new investment directly related to jobs created or retained by the project means all of the following: (1) The cost of machinery and equipment, as defined in Iowa Code section 427A.1, subsection 1, paragraphs “e” and “j,” purchased for use in the operation of the approved business. (2) The purchase price of real property and any buildings and structures located on the real property. (3) The cost of improvements made to real property which is used in the operation of the approved business. (4) The annual base rent paid to a third-party developer by an approved business for a period equal to the term of the lease agreement but not to exceed the maximum term specified in a contract entered into with the authority, provided the cumulative cost of the base rent payments for that period does not exceed the cost of the land and the third-party developer’s costs to build or renovate the building for the approved business. Annual base rent shall be considered only when the project includes the construction of a new building or the major renovation of an existing building. The approved business shall enter into a lease agreement with the third-party developer for a minimum of five years.The approved business shall not claim a tax credit above the amount defined in the final award documentation or the amount specified in a contract entered into with the authority.ARC 3001CHuman 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 75, “Conditions of Eligibility,” Iowa Administrative Code. This amendment increases premiums for applicants and recipients under the Medicaid for Employed People with Disabilities (MEPD) program with income over 150 percent of the federal poverty level (FPL). Iowa Code section 249A.3(2)“a”(1) requires that “the maximum premium payable by an individual whose income exceeds one hundred fifty percent of the official poverty guidelines shall be commensurate with the cost of state employees’ group health insurance in this state.” The average cost to the state for state employees’ health insurance for a single person is $852 effective January 1, 2017. Therefore, the maximum premium must be set at that amount. Any interested person may make written comments on the proposed amendment on or before April 18, 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. This amendment does 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. This amendment is intended to implement Iowa Code section 249A.4. The following amendment is proposed.
ITEM 1. Amend subparagraph 75.1(39)"b" as follows: (3) Premiums shall be assessed as follows: IF THE INCOME OF THE APPLICANT IS ABOVE: THE MONTHLYPREMIUM IS:150% of Federal Poverty Level$33$34165% of Federal Poverty Level$46$47180% of Federal Poverty Level$55$56200% of Federal Poverty Level$64$66225% of Federal Poverty Level$76$77250% of Federal Poverty Level$88$89300% of Federal Poverty Level$110$112350% of Federal Poverty Level$135$137400% of Federal Poverty Level$158$161450% of Federal Poverty Level$183$186550% of Federal Poverty Level$228$232650% of Federal Poverty Level$276$280750% of Federal Poverty Level$324$329850% of Federal Poverty Level$383$3891000% of Federal Poverty Level$460$4671150% of Federal Poverty Level$539$5471300% of Federal Poverty Level$622$6311480% of Federal Poverty Level$718$7291530% of Federal Poverty Level$735$7461590% of Federal Poverty Level$767$7781660% of Federal Poverty Level$8121740% of Federal Poverty Level$852ARC 2998CHuman 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 237A.12, the Department of Human Services hereby gives Notice of Intended Action to amend Chapter 109, “Child Care Centers,” Chapter 110, “Child Development Homes,” and Chapter 120, “Child Care Homes,” Iowa Administrative Code. The following amendments are federally mandated as a result of the Child Care and Development Block Grant (CCDBG) reauthorization. The proposed amendments:
Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)“b.”
Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.
Pursuant to the authority of Iowa Code section 237A.12, the Department of Human Services hereby gives Notice of Intended Action to amend Chapter 109, “Child Care Centers,” Chapter 110, “Child Development Homes,” and Chapter 120, “Child Care Homes,” Iowa Administrative Code. The proposed amendments revise the rules to require that child care providers report to the Department serious injuries that occur in child care settings. As a result, better data will be maintained allowing parents to make better-informed decisions regarding child care for their children. Any interested person may make written comments on the proposed amendments on or before April 18, 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 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). After analysis and review of this rule making, no impact on jobs has been found. These amendments are intended to implement Iowa Code section 237A.12. The following amendments are proposed.
ITEM 1. Rescind subrule 109.10(10) and adopt the following new subrule in lieu thereof: 109.10(10) Recording incidents. a. Incidents involving a child, including minor injuries, minor changes in health status, or other minor behavioral concerns, shall be reported to the parents, guardians, and legal custodians on the day of the incident. Incidents resulting in an injury to a child shall be reported to the parent on the day of the incident. b. Incidents resulting in a serious injury, as defined in Iowa Code section 702.18, to a child in the child care facility or in the care of child care facility staff or incidents resulting in a significant change in the health status of a child shall be verbally reported to the parents, guardians, and legal custodians immediately. (1) Serious injuries shall be reported to the department within 24 hours of the incident. (2) Serious injuries shall be documented and information maintained in the child’s file as required by subrule 109.9(2). c. The parents, guardians, and legal custodians of any child included in incidents involving inappropriate, sexually acting-out behavior shall be notified immediately after the incident. A written report fully documenting every incident shall be provided to the parent or person authorized to remove the child from the center. The written report shall be prepared by the staff member who observed the incident, and a copy shall be retained in the child’s file. ITEM 2. Adopt the following new paragraph 110.8(1)"s": s. Serious injuries. (1) Serious injuries, as defined in Iowa Code section 702.18, that occur in a child care facility or when a child is in the care of child care facility staff shall be reported to the department within 24 hours of the incident. (2) Serious injuries shall be documented and information maintained in the child’s file as required by subrule 110.9(4). ITEM 3. Adopt the following new paragraph 120.8(1)"p": p. Serious injuries. (1) Serious injuries, as defined in Iowa Code section 702.18, that occur in a child care home or when a child is in the care of child care home staff shall be reported to the department within 24 hours of the incident. (2) Serious injuries shall be documented and information maintained in the child’s file as required by subrule 120.9(2).ARC 3000CProfessional Licensure Division[645]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 147.76, the Board of Mortuary Science hereby gives Notice of Intended Action to amend Chapter 100, “Practice of Funeral Directors, Funeral Establishments, and Cremation Establishments,” Chapter 101, “Licensure of Funeral Directors, Funeral Establishments, and Cremation Establishments,” Chapter 102, “Continuing Education for Funeral Directors,” Chapter 103, “Disciplinary Proceedings,” and Chapter 104, “Enforcement Proceedings Against Nonlicensees,” Iowa Administrative Code. These proposed amendments provide clarification in the licensing process; update legal citations and references to the Board’s Web site; rescind language duplicated in the Division’s chapters of rules common to all of the licensing boards; and make other changes that are technical in nature. Interested parties were provided an opportunity to comment on the proposed amendments prior to publication of this Notice. The proposed amendments were distributed to the Iowa Funeral Directors Association (IFDA) members, the Bureau of Vital Statistics of the Iowa Department of Public Health, and the Des Moines Area Community College Mortuary Science Program. Any interested person may make written comments on the proposed amendments no later than April 18, 2017, addressed to Susan Reynolds, Professional Licensure Division, Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319-0075; e-mail susan.reynolds@idph.iowa.gov. A public hearing will be held on April 18, 2017, from 8 to 8:30 a.m. in Conference Room 526, Lucas State Office Building, Des Moines, Iowa, at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the proposed amendments. After analysis and review of this rule making, no impact on jobs has been found. These amendments are intended to implement Iowa Code chapters 21, 147, 142D, 144C, 156 and 272C. The following amendments are proposed.
ITEM 1. Amend rule 645—100.1(156) as follows:645—100.1(156) Definitions. "Alternative container" means an unfinished wood box or other nonmetal receptacle or enclosure, without ornamentation or a fixed interior lining, which is designed for the encasement of human remains and which is made of fiberboard, pressed wood, composition materials (with or without an outside covering) or like materials which prevents the leakage of body fluid. "Authorized person" means that person or persons upon whom a funeral director may reasonably rely when making funeral arrangements including, but not limited to, embalming, cremation, funeral services, and the disposition of human remains pursuant to 2008 Iowa Acts, Senate File 473, section 10Iowa Code section 144C.5. "Autopsy" means the postmortem examination of a human remains. "Board" means the board of mortuary science. "Body parts" means appendages or other portions of the anatomy that are from a human body. "Burial." See “Interment.” "Burial transit permit" means a legal document authorizing the removal and transportation of a human remains. "Casket" means a rigid container which is designed for the encasement of human remains and which is usually constructed of wood, metal, fiberglass, plastic or like material and ornamented and lined with fabric. "Cemetery" means an area designated for the final disposition of human remains. "Change of ownership" means a change of controlling interest in a funeral establishment or crematory establishment. "Columbarium" means a structure, room or space in a mausoleum or other building containing niches or recesses for disposition of cremated remains. "Common carrier" means any carrier engaged in the business of transportation of persons or property from place to place for compensation, and who offers services to the public generally. "Cremated remains" means all the remains of the cremated human body recovered after the completion of the cremation process, including pulverization which leaves only bone fragments reduced to unidentifiable dimensions and may possibly include the residue of any foreign matter including casket material, bridgework or eye glasses that were cremated with the human remains. "Cremation" means the technical process, using heat and flame, that reduces human remains to bone fragments. The reduction takes place through heat and evaporation. Cremation shall include the processing, and may include the pulverization, of the bone fragments. "Cremation authorization form" means a form, completed and signedby a funeral director and authorized person, to accompany all human remains accepted for cremation. "Cremation chamber" means the enclosed space within which thea cremation takes place. "Cremation establishment" means a place of business whichany person, partnership or corporation that is licensed by the board and provides any aspect of cremation services. "Cremation permit" means a permit issued by a medical examiner allowing cremation offor human remains. "Cremation room" means the room in which the cremation chamber is located. "Crematory" means any person, partnership or corporation that performs cremation. "Crypt" means a chamber in a mausoleum of sufficient size to contain casketed human remains. "Custody" means immediate charge and control exercised by a person or an authority. "Dead body." See “Human remains.” "Death certificate" means a legal document containing vital statistics pertaining to the life and death of the decedent. "Decedent." See “Human remains.” "Disinterment" means to removea human remains from theirits place of final disposition. "Disinterment application" means a legal document requesting authorization from the department of public health to disinter a casketed human remains or an urn containing cremated remains from its place of final disposition. "Disinterment permit" means a permit from the department of public health which allows the removal of a human remains from its original place of burial, entombment or interment for the purpose of autopsy or reburial. "Disinterment applicationpermit number" means the number assigned to a disinterment applicationpermit by the department of public health, giving the funeral director the authority to disinter a casketed human remains or an urn containing cremated remainsremove a human remains from its place of final disposition. "Embalming" means the disinfectingdisinfection or preservingtemporary preservation of dead human remains, entire or in part, by the use of chemical substances, fluids or gases in the body, or by the introduction of same into the body by vascular or hypodermic injections, or by surface application into or on the organs or cavities for the purpose oftemporary preservation or disinfection. "Embalming record" means a record completed by the licensed funeral director or registered intern for each body embalmed in Iowa, or otherwise prepared for disposition by the licensee. “Embalming record” includes, at a minimum, a case analysis and a detailed listing of the procedures or treatments or both performed on the deceased. "Entombment" means to place a casketed body or an urn containing cremated remains in a structure such as a mausoleum, crypt, tomb or columbarium. "Final disposition" means the burial, interment, cremation, removal from the state, or other disposition of a dead body or fetus. "First call" means the original notification to the funeral director indicating the place of death from which the human remains are to be removed. "Funeral ceremony" means a service commemorating the decedent. "Funeral director" means a person licensed by the board to practice mortuary science. "Funeral establishment" means a place of business as definedand licensed by the board devoted to providing any aspect of mortuary science. "Funeral rule" means the Federal Trade Commission ruleFuneral Rule. "Funeral services" means any services which may be used to (1) care for and prepare deceased human remains for burial, cremation or other final disposition; and (2) arrange, supervise or conduct the funeral ceremony or final disposition of deceased human remains. "Holding facility" means an area isolated from the general public that is designated for the temporary retention of human remains. "Human remains" means a deceased human being for which a death certificate or fetal death certificate is required. "Interment" means to place a casketed human remains or an urn containing cremated remains in the ground. "Intern" means a person registered by the board to practice mortuary science under the direct supervision of a preceptor certified by the board pursuant to 645—subrule 101.5(2). "Mausoleum" means an aboveground structure designed for entombment of human remains. "Medical examiner" means a public official whose primary function is to investigate and determinethe cause of death when death may be thought to be from other than natural causes. "Memorial ceremony" means a service commemorating the decedent. "Niche" means a recess or space in a columbarium or mausoleum used for placement of cremated human remains. "Outer burial container" means any container which is designed for placement in the ground around a casket or an urn including, but not limited to, containers commonly known as burial vaults, urn vaults, grave boxes, grave liners, and lawn crypts. "Preparation room" means a room in a funeral establishment where human remains are prepared, sanitized, embalmed or held for ceremonies and final disposition. "Pulverization" means a process following cremation which reduces identifiable bone fragments into granulated particles. "Removal" means the act of taking a human remains from the place of death or place where a human remains is being held, to a funeral establishment or other designated place. "Scattering area" means a designated area where cremated remains may be commingled with other cremated remains. "Temporary cremated remainscremation container" means a durable receptacle designed for short-term retention of cremated remains. "Their own dead" refers to the legal authority the authorized person has regarding a human remains. "Topical disinfection" means the direct application of chemical substances on the surface of a human remains for the purpose oftemporary preservation or disinfection. "Transfer." See “Removal.” "Universal precautions" means a concept of care based upon the assumption that all blood and body fluids, and materials that have come into contact with blood or body fluids, are potentially infectiousas prescribed by the Centers for Disease Control (CDC). "Urn" means a receptacle designed for permanent retention of cremated remains. ITEM 2. Amend subrule 100.2(1) as follows: 100.2(1) Practices requiring a funeral director’s license include but are not limited to: a. Removal as specified in rule 645—100.4(142,156). b. Embalming deceased human beingsremains as specified in rule 645—100.6(156) and completing embalming records as specified in paragraph 100.11(2)“d.” c. Conducting funeral arrangements as specified in subrule 100.7(2). d. Conducting funeral services when contracted to do so, including: (1) Direct supervision of visitation and viewing. (2) Funeral and memorial ceremonies. (3) Committal and final disposition services. e. CremationConducting cremation services as specified in rule 645—100.10(156). f. Signing death certificates and performing associated duties under Iowa Code chapter 144. ITEM 3. Amend rule 645—100.3(156) as follows:645—100.3(156) Permanent identification tag. 100.3(1) The funeral director who assumes possession of thea human remains shall attach a permanent identification tag. 100.3(2) The identification tag shall initially contain, at a minimum, the name of the deceased. 100.3(3) Before final disposition, the identification tag shall contain the name of the deceased,and the date of birth, date of death and social security number of the deceased and the name and license number of the funeral homeestablishment in charge of disposition. 100.3(4) The identification tag shall be attached to thehuman remains throughout the entire time the body ishuman remains are in the possession of the funeral homeestablishment and shall remain with the human remains. ITEM 4. Amend rule 645—100.4(142,156) as follows:645—100.4(142,156) Removal and transfer of dead human remains and fetuses. 100.4(1) Removal and transfer of dead human remains. The funeral director shall perform the following duties upon notification of a death. a. Comply with jurisdictional authority, with respect to medico-legalmedicolegal responsibilities, regarding the removal of the human remains. b. Provide signature and license number when removing a dead human remains from a hospital, nursing establishment or any other institution involved with the care of the public. 100.4(2) After the funeral director has assumed custody of the human remains, the funeral director may delegate the task of transferring the dead human remains to an unlicensed employee or agent. Prior to transfer, the funeral director shall topically disinfect the body, secure all body orifices to retain all secretions, place the human remains in a leakproof container for transfer that will control odor and prevent the leakage of body fluids, and issue a burial transit permit. 100.4(3) A funeral director may delegate the transportation of unembalmed human remains to an unlicensed employee or agent of the funeral homeestablishment without first assuming custody and without topically disinfecting or securing body orifices if all of the following are true: a. The transportation is to or from the medical examiner’s office, or otherwise at the direction of the medical examiner; b. The remains are placed in a leakproof container by medical examiner personnel; and c. The employee or agent is issued a burial transit permit or other evidence of authorization. 100.4(4) An unlicensed employee or agent referred to in subrules 100.4(2) and 100.4(3) shall have completed the annual OSHA training related to blood-borne pathogens. ITEM 5. Amend rule 645—100.5(135,144) as follows:645—100.5(135,144) Burial transit permits. A licensed funeral director may issue a burial transit permit for the removal and transfer of dead human remains and such burial transit permit shall be issued in accordance with state law and the administrative rules promulgated by the department of public health regarding burial transit permits. ITEM 6. Amend rule 645—100.6(156) as follows:645—100.6(156) PrepreparationPreparation and embalming activities. 100.6(1) The funeral director shall perform the following duties prior to and during embalming according to commonly accepted industry standards. a. Permission for embalming. The funeral director shall obtainObtain authorization for embalming from an authorized person. If permission to embalm cannot be obtained from the authorized person, the funeral director may proceed with the embalming if necessary to comply with subrule 100.6(3). b. Embalming shall be doneEmbalm entirely in private. No one except the funeral director, intern, immediate family, or student shall be allowed in the preparation room without the written permission of the authorized person. A student must be under the direct physical supervision of the funeral director and currently enrolled and attending a program of mortuary science which is recognized by the board to be allowed in the preparation roomwithout written permission during the embalming without written permission. c. The human remains shall be properly coveredKeep the human remains properly covered at all times. d. Conduct a preembalming case analysis of the human remains. Recognize the potential chemical effects on the body and select the proper embalming chemicals based upon the analysis. e. Position the human remains on the preparation table and pose the facial features. f. Select points of drainage and injection, and raise the necessary vessels. g. Embalming shall includeEmbalm by arterial and cavity injection of embalming chemicals. If the condition of the human remains does not allow arterial and cavity injection of embalming chemicals, topical embalming, using appropriate chemicals and procedures, shall be performed. h. Once the arterial and cavity injection of the embalming chemicals is complete, evaluateEvaluate the distribution of the embalming chemicals and perform treatment for discoloration, vascular difficulties, decomposition, dehydration, purge and close any incisionsonce the arterial and cavity injection of the embalming chemicals is complete. 100.6(2) Postembalming activities. The funeral director shall perform the following duties at the conclusion of the embalming activities if necessary. a. Pack or otherwise secure all body orifices with material which will absorb and retain all secretions. b. Apply chemicals topically and perform hypodermic treatments. c. Bathe, disinfect and reposition the human remains. d. Clean and disinfect the embalming instruments, equipment and preparation room. e. Perform any restorative treatments. f. Select and apply the appropriate cosmetic treatments. g. Prepare the human remains for viewing. 100.6(3) Care of the unembalmed human remains. a. Embalming may be omitted provided that interment or cremation is performed within 72 hours after death or within 24 hours of taking custody if thea human remains werewas previously in the custody of others, whichever is longer. b. If refrigeration is utilized, embalming or final disposition may be extended up to 72 hours longer than the maximum period provided in paragraph 100.6(3)“a.” The body must be kept between 38 and 42 degrees Fahrenheit. c. If viewing of the unembalmed human remains is requested, the human remains shall be topically disinfected and all body orifices shall be packed or otherwise secured with material which will absorb and retain all secretions. ITEM 7. Amend paragraph 100.7(2)"b", introductory paragraph, as follows: b. Present, discuss and explain the mandated Federal Trade CommissionFTC price lists and assist or provide the consumer with: ITEM 8. Amend rule 645—100.8(142,156) as follows:645—100.8(142,156) Unclaimed dead human remains for scientific use. 100.8(1) A human remains is unclaimed when: a. The decedent did not express a desire to be interred, entombed or cremated. b. Relatives or friends of the decedent did not request that thedecedent’s human remains be interred, entombed or cremated. 100.8(2) Friend distinguished from casual acquaintance. A friend shall be distinguished from a casual acquaintance by the friend’s having been closely associated with the decedent during the decedent’s lifetime. 100.8(3) Delivery of human remains for scientific purposes. The funeral director, the medical examiner or managing officer of a public health institution, hospital, county home, penitentiary or reformatory shall notify the stateIowa department of public health as soon as anyunclaimed human remains, which are unclaimed and may be suitable for scientific purposes, shall come into theirthe person’s custody. 100.8(4) Department instructions. When the department of public health receives notice, the funeral director shall be instructed as to the proper disposition of thea human remains. 100.8(5) Expenses incurred by funeral director. The expenses incurred by the funeral director for the transportation of thea human remains to a medical college shall be paid by the medical college receiving the human remains. ITEM 9. Amend rule 645—100.9(144) as follows:645—100.9(144) Disinterments. A funeral director in charge of a disinterment shall ensure that the disinterment is performed in accordance with rules promulgated by the Iowa department of public health and shall first secure a disinterment applicationpermit issued by the Iowa department of public health. 100.() 100.9(1) 1No person shall disinter a human remains or cremated remains unless the funeral director, in charge of the disinterment, has a numbered disinterment applicationpermit which has been issued by the department of public health or by an order of the district court of the county in which the human remains or cremated remains are interred or entombed. 100.() 100.9(2) 2All disinterment applicationspermits shall be requested and provided by the department of public health. 100.() 100.9(3) 3All disinterment applicationspermits shall be signed by the authorizing person. 100.() 100.9(4) 4Disinterment applicationspermits shall be furnished upon request from the department of public health and will remain valid for 30 days after issuance. 100.() 100.9(5) 5Disinterment numberspermits will only be issued to the funeral director, and the disinterment must be done under the direct supervision of the funeral director. 100.() 100.9(6) 6Disinterment applications and numberspermits shall be required for any relocation of a human remains or cremated remains from the original site of interment or entombment. 100.() 100.9(7) 7No disinterment application or numberpermit is necessary to remove a human remains or cremated remains from a holding facility for interment or entombment in the same cemetery where being temporarily held. 100.9(8) A funeral director may await a court order before proceeding with disinterment if the funeral director is aware of a dispute among: a. Persons who are members of the same class of persons described in 641—subrule 97.14(4) as having authority to control the human remains; or b. Persons who are authorized pursuant to 641—subrule 97.14(4) and the executor named in the decedent’s will or personal representative appointed by the court. ITEM 10. Amend rule 645—100.10(156) as follows:645—100.10(156) Cremation of human remains and fetuses. 100.10(1) Record keeping. a. Delivery receipt. (1) When a human remains is delivered to a crematorycremation establishment, the crematorycremation establishment shall furnish to the delivery person a delivery receipt containing:- (1) The name, address, age, gender, and cause of death of thedecedent whose human remains that are delivered to the crematorycremation establishment.
- (2) The date and time of delivery and the type of container that contains the human remains.
- (3) If applicable, the name of the funeral director who sent the human remains and the name and license number of the funeral director’s associated funeral establishment.
- (4) The signature of the person who delivered the human remains.
- (5) The signature of the person receiving the human remains on behalf of the crematorycremation establishment.
- (6) The name and business address of the crematorycremation establishment.
- (1) The name of the decedent whose cremated remains are released from the crematorycremation establishment.
- (2) The date and time when the cremated remains were released from the crematorycremation establishment.
- (3) The name of the person to whom the cremated remains are released and the name and license number of the funeral establishment, cemetery, family or other person or entity with which they arethat person is affiliated.
- (4) The signature of the person who receives the cremated remains.
- (5) The signature of the person who released the cremated remains on behalf of the crematorycremation establishment.
- (6) The name of the crematorycremation establishment operator and the date and time of the cremation.
- The name, address, age and gender of the decedent whose human remains are to be cremated.
- The date, time of death and cause of death of the decedent.
- The name and license number of the funeral establishment and of the funeral director who obtained the cremation authorization form signed by the authorizing person.
- The signature of the funeral director.
- The name and address of the crematorycremation establishment authorized to cremate thea human remains.
- The name and signature of the authorizing person granting permission to cremate the human remains and the authorizing person’s relationship to the decedent.
- A representation that the authorizing person has the right to authorize the cremation of the decedent in accordance with this rule.
- A representation that in the event there is another person who has superior priority right to that of the authorizing person, the authorizing person has made all reasonable efforts to contact that person and has no reason to believe that the person would object to the cremation of the decedent.
- A representation that thea human remains dodoes not contain any material or implants that may be potentially hazardous to equipment or persons performing the cremation.
- A representation that the authorizing person has made a positive identification of the decedent or, if the authorizing person is unavailable or declines, there are alternative means of positive identification.
- The name of the person, funeral establishment or funeral establishment’s designee to which the cremated remains are to be released.
- The manner of the final disposition of the cremated remains.
- A listing of all items of value and instructions for their disposition.
- Obtaining permission to embalm.
- Placement of human remains on preparation table.
- Pre-embalming analysis.
- Primary disinfection.
- Setting features.
- Selection of injection/drainage sites and raising those vessels.
- Selection and mixing of embalming chemicals and operation of the embalming machine.
- Injection and drainage methods.
- Cavity treatment.
- Suturing techniques.
- Dressing.
- Cosmetizing.
- Casketing.
- Contactingthe medical examiner.
- Completing required cremation forms.
- Preparinghuman remains for cremation.
- Presentation of funeral goods, products and services.
- Presentation of payment options for families.
- Contacting third-party suppliers of goods and services, such as clergy, cemetery personnel, outer burial container provider, crematorycremation establishment, florist, and musicians.
- Completing the obituary.
- Presentation of general price list and associated price lists.
- Preparation and presentation of statement of funeral goods and services.
- Preparing the chapel, visitation room or other facility.
- Setting up floral arrangements.
- Setting up register book and memorial folders or prayer cards.
- Greeting funeral attendees.
- Assisting casket bearers.
- Preparing for funeral procession.
- Driving a vehicle in procession.
- Assisting at graveside committal.
- Transporting flowers.
- Coordinating with officiant and family.
Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)“b.”
Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.
Pursuant to the authority of Iowa Code section 421.14, the Department of Revenue hereby gives Notice of Intended Action to amend Chapter 71, “Assessment Practices and Equalization,” Iowa Administrative Code. This proposed amendment clarifies that for owner-occupied commercial property, the assessor may not consider data relating to the business operations of the owner. Any interested person may make written suggestions or comments on the proposed amendment on or before April 18, 2017. Such written comments should be directed to Legal Services, Department of Revenue, Hoover State Office Building, P.O. Box 10457, Des Moines, Iowa 50306. Persons who want to convey their views orally should contact Legal Services, Department of Revenue at (515)281-8450 or at the Department of Revenue offices on the fourth floor of the Hoover State Office Building. Requests for a public hearing must be received by April 18, 2017. After analysis and review of this rule making, the Department finds no fiscal impact. Any person who believes that the application of the discretionary provisions of this rule would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A). After analysis and review of this rule making, no negative impact on jobs has been found. This amendment is intended to implement Iowa Code section 441.21. The following amendment is proposed.
ITEM 1. Amend rule 701—71.5(421,428,441), introductory paragraph, as follows:701—71.5(421,428,441) Valuation of commercial real estate. Commercial real estate shall be assessed at its actual value as defined in Iowa Code section 441.21. In determining the actual value of commercial real estate, city and county assessors shall use the appraisal manual issued by the department of revenue pursuant to Iowa Code section 421.17(18) as well as a locally conducted assessment/sales ratio study, an analysis of sales of comparable properties, and any other relevant data available.In cases involving the valuation of owner-occupied commercial property, the data relating to the financial performance of the owner or the owner’s business, including but not limited to its sales, revenue, expenses, or profits, shall not be considered relevant in determining the property’s actual value.ARC 2989CTransportation Department[761]Notice of Intended ActionNotice 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, 307A.2 and 321.383, the Iowa Department of Transportation hereby gives Notice of Intended Action to amend Chapter 405, “Salvage,” and Chapter 450, “Motor Vehicle Equipment,” Iowa Administrative Code. The proposed amendments to subrule 405.8(3) and paragraph 405.15(1)“e” comply with 2016 Iowa Acts, chapter 1098, sections 31 and 32, which amended Iowa Code sections 321.24(5) and 321.52(4)“c.” The proposed amendment to subrule 405.8(3) adds a second exception to stipulate that an owner who surrenders a foreign salvage title and obtains a salvage theft examination pursuant to Iowa Code section 321.52(4)“b” within 30 days of the date the owner was assigned the foreign salvage title is not required to first obtain an Iowa salvage title. The proposed amendment to paragraph 405.15(1)“e” strikes the language concerning the fee amount and distribution of the fee and adds a new sentence stating that the owner or owner’s representative shall electronically make payment for the salvage theft examination at the time the examination is scheduled and that the fees collected shall be distributed in accordance with Iowa Code section 321.52(4)“c.” The proposed amendment to rule 761—450.6(321) complies with 2016 Iowa Acts, chapter 1023, section 1, which amended Iowa Code section 321.383(1) to allow implements of husbandry that are not self-propelled to be towed in tandem when capable of being towed. Also, language related to equipment standards concerning lighting and turn signals was updated to reflect the changes made in Iowa Code section 321.383(1). 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 these proposed amendments or may submit a written request to make an oral presentation. The comments or request shall:
- Include the name, address, and telephone number of the person or agency authoring the comments or request.
- Reference the number and title of the proposed rule, as given in this Notice, that is the subject of the comments or request.
- Indicate the general content of a requested oral presentation.
- Be addressed to Tracy George, Rules Administrator, Iowa Department of Transportation, Operations and Finance Division, 800 Lincoln Way, Ames, Iowa 50010; e-mail: tracy.george@iowadot.us.
- Be received by the Department’s rules administrator no later than April 18, 2017.
Pursuant to the authority of Iowa Code section 8A.104(5), the Department of Administrative Services hereby amends Chapter 41, “Auditing Claims,” Iowa Administrative Code. The Department of Administrative Services/State Accounting Enterprise (DAS/SAE) seeks a wording and procedure update in rule 11—41.1(8A) concerning wording on the Authorized Signature Form and the Pre-auditor’s Authorized Signature Form. The amendment to subrule 41.1(1) includes replacing the word “signatures” with “signators” and removing provisions regarding a rubber-stamped signature and the need to sign or initial the rubber stamp by the employee authorized to use the rubber stamp. The amendment also replaces the words “social security number” with “vendor/customer code” to reflect best practices in protecting employees’, vendors’ and customers’ confidential information. In February 2016, a DAS/SAE Form Transition Lean Event was held to identify efficiencies for two forms, the Authorized Signature Form and the Pre-auditor’s Authorized Signature Form. As a result, a new transmission process for all three branches of Iowa state government was developed for the two forms, beginning with the approval process, through the transmission stage, to the final stage of Department approval (or disapproval). Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2790C on October 26, 2016. No public comment was received. No changes were made to the amendment published under Notice. While the amendment will result in operational efficiency, the fiscal impact is both indeterminable and believed minimal. The Department does not intend to grant waivers under the provisions of these rules, other than as may be allowed under the Department’s general rules concerning waivers. After analysis and review of this rule making, no impact on jobs has been found. This amendment is intended to implement Iowa Code sections 8A.514 and 17A.4. This amendment will become effective May 3, 2017. The following amendment is adopted.
ITEM 1. Amend subrule 41.1(1) as follows: 41.1(1) Submission of claims and approval. All claims shall be typewritten, or written in ink, and be itemized and certified by the claimant.Exception: The claimant’s certification is not needed when the original invoice is attached to the claim. The original invoice shall indicate in detail the items of service, expense, thing furnished, or contract upon which payment is sought.Approval of the claim shall be certified thereon by the head of the state agency, or the deputy, or the chair of the board or commission or its executive officer, or by a person delegated by the head of the state agency to fulfill this responsibility. A list of authorized signaturessignators shall be provided to the department of administrative services, state accounting enterprise. If a rubber stamp signature is used, the claim shall be signed or initialed by the employee authorized to use the rubber stamp.All travel claims submitted shall be the actual expense incurred (not exceeding maximum limitations) by the claimant, and shall not include expenses paid for other individuals, or for the purchase of miscellaneous items which are not needed in the performance of official duties while traveling. All travel vouchers shall contain the social security numbervendor/customer code of the employee or other individual identification (with prior written approval by the department of administrative services, state accounting enterprise).All claims shall show in the space provided the Iowa Code reference for the appropriation or fund from which the claim is payable.When an original invoice is submitted by a vendor, rather than the claimant signing the voucher, the vendor shall provide the state agency with an original invoice that the vendor would use in the normal conduct of its business. A state agency shall not impose additional or different requirements on submission of invoices than those contained in these rules unless the department of administrative services, state accounting enterprise, exempts the agency from these invoice requirements upon a finding that compliance would result in poor accounting or management practices. [Filed 3/9/17, effective 5/3/17][Published 3/29/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/29/17.ARC 3003CAdministrative Services Department[11]Adopted and FiledPursuant to the authority of Iowa Code section 8A.104(5), the Administrative Services Department hereby amends Chapter 57, “Appointments,” Iowa Administrative Code. Rule 11—57.6(8A) outlines procedures for internship appointments. The amendment to the rule involves allowing for successful completion of an internship appointment to be done in at least 480 hours, instead of 90 calendar days. The amendment aligns subrule 57.6(3) with subparagraph 54.2(4)“a”(3). Subparagraph 54.2(4)“a”(3) was amended to specify an hourly measure rather than a daily measure because of confusion as to how many hours made up one calendar day’s worth of work. Rule 11—57.6(8A) was not changed at the same time. This amendment converts 90 calendar days to 480 hours and reduces the number of days for successful completion of an internship with the State of Iowa by 30 days. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2794C on November 9, 2016. No public comment was received. No changes were made to the amendment published under Notice. There is no fiscal impact to the State. Many internships are unpaid positions. The Department does not have reliable data by which to gauge the impact on paid internships. The Department does not intend to grant waivers under the provisions of these rules, other than as may be allowed under the Department’s general rules concerning waivers. After analysis and review of this rule making, no impact on jobs has been found. This amendment is intended to implement Iowa Code section 8A.402(1)“e.” This amendment will become effective May 3, 2017. The following amendment is adopted.
ITEM 1. Amend subrule 57.6(3) as follows: 57.6(3) Successful completion of an internship appointment of at least 90 calendar days480 hours shall authorize the appointee to be on promotional or all-applicant lists. Only persons formally enrolled in the department’s intern development program are eligible to be on promotional lists. Successful completion shall be as determined by the director at the time of enrollment. [Filed 3/9/17, effective 5/3/17][Published 3/29/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/29/17.ARC 3004CEconomic Development Authority[261]Adopted and FiledPursuant to the authority of Iowa Code section 15.106A and Iowa Code section 15.321 as created by 2016 Iowa Acts, chapter 1065, division II, the Iowa Economic Development Authority (IEDA) hereby adopts new Chapter 81, “Renewable Chemical Production Tax Credit Program,” Iowa Administrative Code. This amendment creates a new chapter of rules governing the administration of the Renewable Chemical Production Tax Credit Program. The program was created by 2016 Iowa Acts, chapter 1065. The new chapter provides for the administration of the program by IEDA and governs eligibility requirements, the application process and application review, the agreement, calculation of the tax credit, administration of the tax credit wait list, the process for claiming the credit, and the process to add additional building block chemicals by administrative rule. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2867C on December 21, 2016. The Authority did not receive any written or oral comments on the rules. However, after further review and discussion with stakeholders regarding the tax credit claim process, the Authority has decided to make clarifying edits to subrule 81.3(2) and to subrule 81.6(1) by adding a new paragraph 81.6(1)“c.” These edits clarify that an eligible business may only claim up to the maximum amount of tax credit set forth in rule 261—81.6(15), even if the business has ownership interests in multiple facilities or businesses that are eligible for the credit. The Economic Development Authority Board adopted these rules at its meeting held on February 17, 2017. This rule making does not have any fiscal impact to the state of Iowa. While the tax credit program itself will have a fiscal impact, 2016 Iowa Acts, chapter 1065, division I, reduced the award cap for the High Quality Jobs Program by $25 million each year for the next five fiscal years, bringing the net fiscal impact of the bill to zero. After analysis and review of this rule making, no impact on jobs has been found. This amendment is intended to implement Iowa Code sections 15.315 through 15.322. This amendment will become effective on May 3, 2017. The following amendment is adopted.
ITEM 1. Adopt the following new 261—Chapter 81: CHAPTER 81RENEWABLE CHEMICAL PRODUCTION TAX CREDIT PROGRAM261—81.1(15) Purpose. The purpose of this chapter is to encourage development of the renewable chemicals industry and stimulate job growth using the renewable chemical production tax credit program to incentivize new and existing businesses to produce high-value renewable chemicals in Iowa from biomass feedstock. 261—81.2(15) Definitions. As used in this chapter, the following definitions shall apply: "Authority" means the economic development authority created in Iowa Code section 15.105. "Authority’s Web site" means the information and related content found at www.iowaeconomicdevelopment.com/ and may include integrated content at affiliate sites. "Biobased content percentage" means, with respect to any renewable chemical, the amount, expressed as a percentage, of renewable organic material present as determined by testing representative samples using the American Society for Testing and Materials standard D6866. "Biomass feedstock" means sugar, polysaccharide, crude glycerin, lignin, fat, grease, or oil derived from a plant or animal, or a protein capable of being converted to a building block chemical by means of a biological or chemical conversion process. "Board" means the members of the economic development authority board appointed by the governor and in whom the powers of the authority are vested pursuant to Iowa Code section 15.105. "Building block chemical" means a molecule converted from biomass feedstock as a first product or a secondarily derived product that can be further refined into a higher-value chemical, material, or consumer product. “Building block chemical” includes but is not limited to high-purity glycerol, oleic acid, lauric acid, methanoic or formic acid, arabonic acid, erythonic acid, glyceric acid, glycolic acid, lactic acid, 3-hydroxypropionate, propionic acid, malonic acid, serine, succinic acid, fumaric acid, malic acid, aspartic acid, 3-hydroxybutyrolactone, acetoin, threonine, itaconic acid, furfural, levulinic acid, glutamic acid, xylonic acid, xylaric acid, xylitol, arabitol, citric acid, aconitic acid, 5-hydroxymethylfurfural, lysine, gluconic acid, glucaric acid, sorbitol, gallic acid, ferulic acid, nonfuel butanol, nonfuel ethanol, or such additional molecules as may be included by the authority following the procedure in rule 261—81.8(15). "Crude glycerin" means glycerin with a purity level below 95 percent. "Director" means the director of the economic development authority or the director’s designee. "Eligible business" means a business meeting the requirements of rule 261—81.3(15). "Food additive" means a building block chemical that is not primarily consumed as food but which, when combined with other components, improves the taste, appearance, odor, texture, or nutritional content of food. The authority, in its discretion, shall determine whether or not a building block chemical is primarily consumed as food. "High-purity glycerol" means glycerol with a purity level of 95 percent or higher. "Pre-eligibility production threshold" means, with respect to each eligible business, the number of pounds of renewable chemicals produced, if any, by an eligible business during the calendar year prior to the calendar year in which the business first qualified as an eligible business pursuant to rule 261—81.3(15). "Production year" means any calendar year after the year in which the eligible business’s pre-eligibility production threshold was established and in which the eligible business produces renewable chemicals. "Program" means the renewable chemical production tax credit program administered pursuant to this chapter. "Renewable chemical" means a building block chemical with a biobased content percentage of at least 50 percent. “Renewable chemical” does not include a chemical sold or used for the production of food, feed, or fuel. “Renewable chemical” includes cellulosic ethanol, starch ethanol, or other ethanol derived from biomass feedstock, fatty acid methyl esters, or butanol, but only to the extent that such molecules are produced and sold for uses other than food, feed, or fuel. “Renewable chemical” also includes a building block chemical that can be a food additive as long as the building block chemical is not primarily consumed as food and is also sold for uses other than food. “Renewable chemical” also includes supplements, vitamins, nutraceuticals, and pharmaceuticals, but only to the extent that such molecules do not provide caloric value so as to be considered sustenance as food or feed. "Sugar" means the organic compound glucose, fructose, xylose, arabinose, lactose, sucrose, starch, cellulose, or hemicellulose.261—81.3(15) Eligibility requirements. To be eligible to receive the renewable chemical production tax credit pursuant to the program, a business shall meet all of the following requirements: 81.3(1) Physical location. The business must have a facility that produces renewable chemicals and is physically located in the state of Iowa. If a business has facilities located in more than one state, only those renewable chemicals produced at facilities physically located in the state of Iowa may be counted for the purpose of calculating the tax credit under subrule 81.6(1). 81.3(2) Operated for profit and under single management. The business must be operated for profit and under single management. For purposes of this rule, “single management” means that if the same eligible business has an ownership or equity interest in multiple facilities at which renewable chemicals are produced, the facilities under common ownership will be considered a single eligible business for purposes of calculating the maximum tax credit amount under rule 261—81.6(15). In calculating the maximum tax credit amount under rule 261—81.6(15), only the pro rata share of each eligible business’s ownership in a facility will be attributed to that eligible business. 81.3(3) Type of business. The business may not be an entity providing professional services, health care services, or medical treatments or an entity engaged primarily in retail operations. 81.3(4) Organization. The business must have organized, expanded, or located in the state on or after April 6, 2016. 81.3(5) Not reducing operations. The business shall not be relocating or reducing operations as described in Iowa Code section 15.329(1)“b” and as determined under the discretion of the authority. 81.3(6) Compliance. The business must be in compliance with all agreements entered into under this program or other programs administered by the authority.261—81.4(15) Application process and review. 81.4(1) An eligible business that produces a renewable chemical in this state from biomass feedstock during a calendar year may apply to the authority for the renewable chemical production tax credit. 81.4(2) The application shall be made to the authority in the manner prescribed by the authority. Information about the program and a link to the online application and instructions may be obtained by contacting the authority or by visiting the authority’s Web site: Iowa Economic Development Authority Business Development Division 200 East Grand Avenue Des Moines, Iowa 50309 (515)725-3000 www.iowaeconomicdevelopment.com/ 81.4(3) The application shall be made to the authority during the calendar year following the calendar year in which the renewable chemicals were produced. For example, an eligible business may submit an application in calendar year 2018 to receive a tax credit based on renewable chemicals produced in calendar year 2017. 81.4(4) The application may be submitted to the authority electronically during the annual filing window. This filing window shall be from February 15 to March 15 of each calendar year. The authority may adjust the annual filing window dates under extenuating circumstances and will notify affected parties of such circumstances. 81.4(5) The application shall include all of the following information: a. The name of the qualifying building block chemical produced by the eligible business for which the business is claiming a tax credit. b. The amount of renewable chemicals produced in the state from biomass feedstock by the eligible business during the calendar year, measured in pounds. c. The amount of renewable chemicals produced in the state from biomass feedstock by the eligible business during the calendar year prior to the year in which the business first qualified as an eligible business under the program. d. The city or county where the plant producing renewable chemicals is located. e. The type of feedstock used to produce the renewable chemicals. f. The date on which the eligible business organized, expanded or located in the state. g. Any other information reasonably required by the authority in order to establish and verify eligibility under the program. 81.4(6) Applications will be reviewed by the authority on a first-come, first-served basis as described in subrule 81.6(5). Applications shall be date- and time-stamped by the authority in the order in which such applications are received. If the authority deems that additional information is needed before a determination of eligibility can be made, and the authority makes a written request for additional information from the applicant, the applicant must provide the requested information within 30 days of the date that the written request from the authority was made. If an applicant does not provide the requested information within 30 days, the applicant will be placed at the end of the queue of applications received. The authority shall review the queue of applications for eligibility and maintain a list of successful applicants as required by subrule 81.6(5). 81.4(7) The authority shall notify an applicant when the applicant has been placed on the list of successful applicants. a. For applicants on the list for whom there are sufficient tax credits available in the aggregate cap for the fiscal year, the applicant must sign the agreement within 60 days of being notified of eligibility for the tax credit. Upon request by the applicant, the authority may extend the time period for signing the agreement by an additional 30 days. b. For applicants on the wait list established in subrule 81.6(5), the authority shall notify the applicant of the applicant’s status and position on the wait list. 261—81.5(15) Agreement. 81.5(1) Agreement. Before being issued a tax credit pursuant to this chapter, an eligible business shall enter into an agreement with the authority for the successful completion of all requirements of the program. As part of the agreement, and as a condition of receiving the tax credit, the eligible business shall agree to collect and provide any information reasonably required by the authority in order to allow the board to fulfill the board’s reporting obligation under Iowa Code section 15.320. 81.5(2) Fees. The compliance cost fees authorized in rule 261—187.6(15) shall apply to all agreements entered into under this program and shall be collected by the authority in the same manner and to the same extent as described in that rule. 81.5(3) Requirements. An eligible business shall fulfill all the requirements of the program and the agreement before receiving a tax credit or entering into a subsequent agreement under this rule. The authority may decline to enter into a subsequent agreement under this rule or to issue a tax credit if an agreement is not successfully fulfilled. 81.5(4) Issuance of credit. Upon establishing that all requirements of the program and the agreement have been fulfilled, the authority shall issue a tax credit and related tax credit certificate to the eligible business stating the amount of renewable chemical production tax credit the eligible business may claim. The amount of the tax credit shall not exceed the amount allowable under rule 261—81.6(15). 261—81.6(15) Renewable chemical production tax credit. 81.6(1) Calculation of tax credit amount. An eligible business that has entered into an agreement pursuant to rule 261—81.5(15) may be issued a tax credit in an amount equal to the product of five cents multiplied by the number of pounds of renewable chemicals produced in this state from biomass feedstock by the eligible business during a given production year. a. The maximum amount of tax credit that may be issued under the program to an eligible business for the production of renewable chemicals in a calendar year shall not exceed the following: (1) In the case of an eligible business that has been in operation in the state for five years or less at the time of application, $1 million. (2) In the case of an eligible business that has been in operation in the state for more than five years at the time of application, $500,000. b. For purposes of this subrule, “operation” begins on the date the eligible business first began commercial production. c. If an eligible business has been in operation in the state for five years or less at the time of application but is more than fifty percent owned by an eligible business that has been in operation in the state for more than five years, then that eligible business will be considered in operation in the state for more than five years pursuant to subparagraph 81.6(1)“a”(2). 81.6(2) Eligible business only. An eligible business shall not receive a tax credit for renewable chemicals produced before the date the business first qualified as an eligible business pursuant to rule 261—81.3(15). 81.6(3) Production above pre-eligibility production threshold. An eligible business shall only receive a tax credit for renewable chemicals produced in a calendar year to the extent such production exceeds the eligible business’s pre-eligibility production threshold as defined in rule 261—81.2(15). For example, if an eligible business produces 3 million pounds of renewable chemicals during calendar year 2016 and first becomes an eligible business under this chapter in calendar year 2017, the pre-eligibility production threshold for the business is 3 million pounds. If the same eligible business produces 10 million pounds of renewable chemicals during calendar year 2017, the eligible business may only receive a tax credit for the amount produced over the pre-eligibility production threshold, which in this example equals 7 million pounds. 81.6(4) Maximum number of credits. An eligible business shall not receive more than five tax credits under the program. Each tax credit must be applied for separately, and each application will be reviewed independently of past tax credits. Receipt of a tax credit in one year does not guarantee receipt of a tax credit in a subsequent year. 81.6(5) Tax credit wait list. a. The authority shall issue tax credits under the program on a first-come, first-served basis until the maximum amount of tax credits allocated pursuant to Iowa Code section 15.119(2)“h” is reached for any given fiscal year. The authority shall maintain a list of successful applicants under the program, so that if the maximum aggregate amount of tax credits is reached in a given fiscal year, eligible businesses that successfully applied but for which tax credits were not issued shall be placed on a wait list in the order the eligible businesses applied and shall be given priority for receiving tax credits in succeeding fiscal years. b. Placement on a wait list pursuant to this subrule shall not constitute a promise binding the state. The availability of a tax credit and issuance of a tax credit certificate pursuant to this rule in a future fiscal year is contingent upon the availability of tax credits in that particular fiscal year. 81.6(6) Termination and repayment. The failure by an eligible business in fulfilling any requirement of the program or any of the terms and obligations of an agreement entered into pursuant to this chapter may result in the reduction, termination, or rescission of the tax credits under Iowa Code section 15.319 and may subject the eligible business to the repayment or recapture of tax credits claimed. The repayment or recapture of tax credits pursuant to Iowa Code section 15.319(4) shall be accomplished in the same manner as provided in Iowa Code section 15.330(2). 81.6(7) Issuance of credit. The authority shall not issue a tax credit certificate prior to July 1, 2018.261—81.7(15) Claiming the tax credit. 81.7(1) Maximum tax credit claimed. An eligible business that has entered into an agreement pursuant to rule 261—81.5(15) may claim a tax credit in an amount equal to the product of five cents multiplied by the number of pounds of renewable chemicals produced in this state from biomass feedstock by the eligible business during a given production year within the limits set forth in rule 261—81.6(15). An eligible business may claim a tax credit for the production of more than one qualifying renewable chemical under this chapter, provided that the total tax credit claimed by the eligible business does not exceed the limits set forth in subrule 81.6(1). However, an eligible business shall not receive a tax credit for the production of a secondarily derived building block chemical if that chemical is also the subject of a credit at the time of production as a first product. The renewable chemical production tax credit shall not be available for any renewable chemical produced before the 2017 calendar year or after the 2026 calendar year. 81.7(2) Who may claim the credit. The tax credit shall be allowed against taxes imposed under Iowa Code chapter 422, division II or III. The tax credit shall be claimed for the tax year during which the eligible business was issued the tax credit. An individual may claim a tax credit under this chapter of a partnership, limited liability company, S corporation, cooperative organized under Iowa Code chapter 501 and filing as a partnership for federal tax purposes, estate, or trust electing to have income taxed directly to the individual. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings from the partnership, limited liability company, S corporation, cooperative, estate, or trust. a. To claim a tax credit under this rule, a taxpayer shall include one or more tax credit certificates with the taxpayer’s tax return. b. The tax credit certificate shall contain the taxpayer’s name, address, and tax identification number, the amount of the credit, the name of the eligible business, and any other information required by the department of revenue. c. The tax credit certificate, unless rescinded by the authority, shall be accepted by the department of revenue as payment for taxes imposed pursuant to Iowa Code chapter 422, divisions II and III, subject to any conditions or restrictions placed by the authority upon the face of the tax credit certificate and subject to the limitations of the program. 81.7(3) Refundability. Any tax credit in excess of the tax liability is refundable. In lieu of claiming a refund, the taxpayer may elect to have the overpayment shown on the taxpayer’s final, completed return credited to the tax liability for the following tax year. 81.7(4) Transferability. Tax credit certificates issued pursuant to this chapter shall not be transferred to any other person.261—81.8(15) Process to add building block chemicals. 81.8(1) General process. The authority may add additional molecules to the definition of “building block chemical” in rule 261—81.2(15) pursuant to Iowa Code section 15.316. The authority may initiate the administrative rule-making process for the addition of such molecules to this chapter. 81.8(2) Request to include additional molecules. Any individual or business may request that an additional molecule be added to the definition of “building block chemical” by submitting a written request to the authority. Such requests shall be made in the form prescribed by the authority and shall be submitted to the authority during the filing windows prescribed by the authority. At a minimum, the authority shall accept requests between April 1 and May 1 of each calendar year and October 1 and November 1 of each calendar year. The authority may adjust these dates under extenuating circumstances and will notify affected parties of such circumstances. 81.8(3) Consultation with experts. Prior to initiating a rule making to add molecules to the definition of “building block chemical” in rule 261—81.2(15), the authority shall consult with appropriate experts from Iowa state university, including but not limited to the Iowa state university center for biorenewable chemicals. The authority shall conduct an initial staff review of any requests received by the authority pursuant to subrule 81.8(2). Following the initial staff review, the authority shall consult with the experts at Iowa state university regarding the molecules that the authority believes are consistent with the definitions under this chapter. The experts at Iowa state university shall provide a written recommendation to the authority indicating which chemicals, in the experts’ opinion, meet the definition of “building block chemical” consistent with this chapter. 81.8(4) Initiation of rule-making proceedings. Following the consultation and review process set forth in subrule 81.8(3), the authority may initiate the administrative rule-making process to amend the definition of “building block chemical” to add molecules which the authority, in the authority’s sole discretion, finds to be consistent with the definitions in this chapter. 261—81.9(15) Additional information—confidentiality—annual report. 81.9(1) Additional information. The authority may at any time request additional information and documentation from an eligible business regarding the operations, job creation, and economic impact of the eligible business, and the authority may use the information in preparing and publishing any reports to be provided to the governor and the general assembly. 81.9(2) Confidential information. Except as provided in subrule 81.9(3), any information or record in the possession of the authority with respect to the program shall be presumed by the authority to be a trade secret protected under Iowa Code chapter 550 or common law and shall be kept confidential by the authority unless otherwise ordered by a court. 81.9(3) Public information. The identity of a tax credit recipient and the amount of the tax credit shall be considered public information under Iowa Code chapter 22. These rules are intended to implement Iowa Code sections 15.315 to 15.322. [Filed 3/10/17, effective 5/3/17][Published 3/29/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/29/17.ARC 3005CHuman Services Department[441]Adopted and FiledPursuant to the authority of Iowa Code section 249A.4, the Department of Human Services hereby amends Chapter 78, “Amount, Duration and Scope of Medical and Remedial Services,” Iowa Administrative Code. These amendments change the requirement for a review of the treatment plan for home health services to be conducted every 60 days instead of every 62 days to conform to federal regulations, 42 CFR 440. These amendments also define the time frame in which a face-to-face encounter between a physician or certain nonphysician practitioners and a member must occur for home health services to be received. These amendments rescind the subrule on medical social services. Medical social services are not included in the Medicaid state plan amendment and are no longer needed due to the managed care organizations. The care coordination, case management and targeted case management services are already provided to those members who are eligible for mental health supports available through fee for service. Finally, these amendments change the term “mental retardation” to “intellectual disability.” Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2897C on January 18, 2017. The Department did not receive any comments during the public comment period. These amendments are identical to those published under Notice of Intended Action. The Council on Human Services adopted these amendments on March 8, 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). After analysis and review of this rule making, no impact on jobs has been found. These amendments are intended to implement Iowa Code section 249A.4. These amendments will become effective May 3, 2017. The following amendments are adopted.
ITEM 1. Amend subrule 78.9(1) as follows: 78.9(1) Treatment plan. A plan of treatment shall be completed prior to the start of care and at a minimum reviewed every 6260 days thereafter.There must be a face-to-face encounter between a physician, a nurse practitioner, a clinical nurse specialist, a certified nurse-midwife, or a physician assistant and the Medicaid member no more than 90 days before or 30 days after the start of service. The plan of care shall support the medical necessity and intensity of services to be provided by reflecting the following information: a. Place of service. b. Type of service to be rendered and the treatment modalities being used. c. Frequency of the services. d. Assistance devices to be used. e. Date home health services were initiated. f. Progress of member in response to treatment. g. Medical supplies to be furnished. h. Member’s medical condition as reflected by the following information, if applicable: (1) Dates of prior hospitalization. (2) Dates of prior surgery. (3) Date last seen by a physician. (4) Diagnoses and dates of onset of diagnoses for which treatment is being rendered. (5) Prognosis. (6) Functional limitations. (7) Vital signs reading. (8) Date of last episode of instability. (9) Date of last episode of acute recurrence of illness or symptoms. (10) Medications. i. Discipline of the person providing the service. j. Certification period (no more than 6260 days). k. Estimated date of discharge from the hospital or home health agency services, if applicable. l. Physician’s signature and date. The plan of care must be signed and dated by the physician before the claim for service is submitted for reimbursement. ITEM 2. Rescind and reserve subrule 78.9(8). ITEM 3. Amend subparagraph 78.9(9)"c" as follows: (4) Preexisting mental or physical disabilities such as deaf, blind, hemaplegichemiplegic, activity-limiting disease, sickle cell anemia, uncontrolled hypertension, uncontrolled diabetes, mental illness, or mental retardationintellectual disability. ITEM 4. Amend subparagraph 78.9(9)"d" as follows: (6) Genetic disorders, such as Down’s syndrome, and phenylketonuria or other metabolic conditions that may lead to mental retardationintellectual disability. ITEM 5. Amend subparagraph 78.9(9)"e" as follows: (2) Mental retardationIntellectual disability or other physical disabilities necessitating long-term follow-up or major readjustments in family lifestyle. [Filed 3/8/17, effective 5/3/17][Published 3/29/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/29/17.ARC 3006CHuman Services Department[441]Adopted and Filed Pursuant to the authority of Iowa Code sections 249A.4 and 249A.4B, the Department of Human Services hereby amends Chapter 79, “Other Policies Relating to Providers of Medical and Remedial Care,” Iowa Administrative Code. This amendment to Chapter 79 clarifies the roles, responsibilities and membership of the Medical Assistance Advisory Council (MAAC) in accordance with Iowa Code section 249A.4B, which was amended by 2016 Iowa Acts, chapter 1139, section 99, by rescinding the existing rule pertaining to the MAAC and adopting a new rule that:
- Workplans. Items will be added to the council’s agenda as various tasks for the council are due to be discussed based on calendar requirements. Council deliberations are to be conducted within a time frame to allow the executive committee to receive the council’s feedback and make recommendations to the director and for the director to consider those recommendations as budgets and policy for the medical assistance program are developed for the review of the council on human services and the governor, as well as for the upcoming legislative session.
- Requests from the director of human services.
- Discussion and action items from council members. The co-chairpersons will review any additional suggestions from council members at any time, including after the draft agenda has been distributed. The agenda will be distributed in draft form five business days prior to the council meeting, and the final agenda will be distributed no later than 24 hours prior to the council meeting.
- If an entity’s representative does not attend more than three consecutive meetings, the department of human services will notify the entity and representative and verify whether an alternate contact is needed.
- Professional and business entities shall determine the length of appointment of their representatives. The department of human services will confirm each representative’s participation every two years, regardless of the representative’s meeting attendance.
- All professional and business entities will be voting members of the council.
- Partner agency and medical school representatives will be nonvoting members of the council.
- If an agency’s or school’s representative does not attend more than three consecutive meetings, the department of human services will notify the agency or school.
- Partner agencies and medical schools shall determine the length of appointment of their representatives. The department of human services will confirm each representative’s participation every two years, regardless of the representative’s meeting attendance.
- Two members of the house of representatives, one appointed by the speaker of the house of representatives and one appointed by the minority leader of the house of representatives from their respective parties.
- Two members of the senate, one appointed by the president of the senate after consultation with the majority leader of the senate and one appointed by the minority leader of the senate.
- One of the five public member positions on the executive committee will be held by the co-chairperson identified in subrule 79.7(1).
- At least one public member shall be a recipient of medical assistance.
- Public members of the council vote to select the public members of the executive committee.
- All voting members of the council will be eligible for election to the executive committee, based on the criteria outlined in this paragraph.
- Ballots will be distributed at the quarterly meeting closest to the beginning of the next state fiscal year and will be collected in paper and electronic format and administered by department of human services staff.
- Should any vacancy occur on the executive committee, a special election will be held following the standards outlined in this paragraph.
- Ballots should include the professional and business entity name but omit the name of the representative of the entity.
- The council will meet no more than quarterly.
- Meetings may be called by the co-chairpersons; upon written request of at least 50 percent of members; or by the director of the department of human services.
- Meetings shall be held in the Des Moines, Iowa, area unless other notification is given. Meetings will also be made available via teleconference, when available.
- Written notice of council meetings shall be electronically mailed at least five business days in advance of the meeting. Each notice shall include an agenda for the meeting. The final agenda will be distributed no later than 24 hours prior to the meeting.
- The executive committee shall meet on a monthly basis.
- Meetings may be called by the co-chairpersons; upon written request of at least 50 percent of executive committee members; or by the director of the department of human services.
- Meetings shall be held in the Des Moines, Iowa, area unless other notification is given. Meetings will also be made available via teleconference, when available.
- In a month when a council meeting is held, the executive committee shall meet after the council meeting, allowing committee members to discuss and make recommendations based on the topics discussed by council members.
- Recommendations on the reimbursement for medical services rendered by providers of services.
- Identification of unmet medical needs and maintenance needs which affect health.
- Recommendations for objectives of the program and for methods of program analysis and evaluation, including utilization review.
- Recommendations for ways in which needed medical supplies and services can be made available most effectively and economically to program recipients.
- Advice on such administrative and fiscal matters as the director of human services may request.
Pursuant to the authority of Iowa Code sections 234.6 and 237C.4, the Department of Human Services hereby rescinds Chapter 106, “Safety Standards for Children’s Centers,” and adopts a new Chapter 106, “Certification Standards for Children’s Residential Facilities,” Iowa Administrative Code. These 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 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. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2918C on February 1, 2017. The Department received comments from one respondent during the public comment period. A summary of the comments and the Department’s response are as follows: Comment: Amend the proposed administrative rule that currently says “No child over the age of five years shall occupy a bedroom with a member of the opposite sex” in order to avoid an interpretation of the rule that may place children in a manner that is discriminatory to transgender, gender nonconforming, and intersex children. The commenter provided substitute language that would give children a choice to be housed based on their gender identity and provided definitions of the related terms. Department response: The proposed rule will not be changed at this time because the Department is not yet certain about what the most comprehensive and appropriate ways to serve these populations are. Related national and state discussions, policies, and court actions continue to cloud the issue. However, the Department values this comment. The accompanying information will be used to inform Department policy development around this emerging subject. The Department strives to ensure that rules not only ensure nondiscrimination, but also promote best practice. The Department is watching and learning how approaches to best serve transgender, gender nonconforming, and intersex children are evolving nationwide. Assessing the results of these actions is critical to Iowa policy development. These rules are identical to those published under Notice of Intended Action. The Council on Human Services adopted these rules on March 8, 2017. 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. These rules will become effective May 3, 2017. The following amendment is adopted.
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.
Pursuant to the authority of Iowa Code sections 422.68 and 15.321, the Department of Revenue hereby amends Chapter 42, “Adjustments to Computed Tax and Tax Credits,” and Chapter 52, “Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits,” Iowa Administrative Code. These amendments are necessary to implement the Renewable Chemical Production Tax Credit Program that resulted from 2016 Iowa Acts, chapter 1065, division II. The rules describe the Department of Revenue’s role in the program. Items 1 and 2 are largely the same; the distinction is that Item 1 sets forth the rule for individual income tax while Item 2 sets forth the rule for corporation income tax. The program is administered in coordination with the Economic Development Authority. The Economic Development Authority’s Adopted and Filed rule making on the program is published herein as ARC 3004C. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2865C on December 21, 2016. No public comments were received. Changes have been made to add the word “and” to paragraph 52.49(3)“c” and to update two citations to the Iowa Code to reflect the codification of 2016 Iowa Acts, chapter 1065, division II. Also, references to the Economic Development Authority’s proposed 261—Chapter 81 have been updated to reflect the adoption of that chapter in ARC 3004C, as noted above. 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 March 1, 2017. These amendments have no known impact on jobs. These amendments are intended to implement Iowa Code sections 15.319, 422.10B, and 422.33(22). These amendments will become effective May 3, 2017. The following amendments are adopted.
ITEM 1. Adopt the following new rule 701—42.56(15,422):701—42.56(15,422) Renewable chemical production tax credit program. An eligible business that has received a renewable chemical production tax credit certificate from the economic development authority may claim a tax credit against individual income tax. The credit is equal to the product of five cents multiplied by the number of pounds of renewable chemicals produced in Iowa from biomass feedstock by the eligible business during a given production year, subject to the limitations described in Iowa Code sections 15.315 through 15.322, 261—Chapter 81, and this rule. The economic development authority’s rules on eligibility for the credit may be found in 261—Chapter 81. 42.56(1) Application and agreement for the credit. To be eligible for the tax credit, the eligible business must apply to and enter into an agreement with the economic development authority. The economic development authority’s rules on the application and agreement process may be found in 261—Chapter 81. 42.56(2) Computation of the amount of credit and certificate issuance. Upon establishing that all requirements of the program and the agreement have been fulfilled and verifying the taxpayer’s eligibility for the tax credit, the economic development authority calculates the credit. Then the economic development authority issues the related tax credit certificate to the eligible business stating the amount of the renewable chemical production tax credit that the eligible business may claim. A tax credit certificate shall not be issued by the economic development authority prior to July 1, 2018. The economic development authority’s rules on credit certificate issuance may be found in 261—Chapter 81. 42.56(3) Claiming the tax credit. a. Claiming the credit, generally. To claim the credit, a taxpayer must include one or more tax credit certificates with the taxpayer’s tax return for the tax year during which the eligible business was issued the tax credit certificate or certificates. If the taxpayer claiming the credit has already filed a return for the tax year for which the credit certificate was issued, the taxpayer may claim the credit on an amended return. The taxpayer must file the amended return within the statute of limitations applicable to such amended return. No tax credit may be claimed under this program by a taxpayer prior to September 1, 2018. b. Claiming the credit of a pass-through entity. To claim the credit of an eligible business that is a pass-through entity, an individual taxpayer must claim the credit on the tax return for the tax year during which the eligible business received the tax credit certificate. Such tax year may be either the tax year of the eligible business or of the individual. Example: A partnership has a fiscal year of September 2017 through August 2018. The partnership receives a renewable chemical production tax credit certificate under this program in July 2018, which is during the partnership’s 2017 tax year. A partner in the partnership files individual returns on a calendar year basis, which means that the credit was issued in the partner’s 2018 tax year. That partner may file an amended 2017 tax return to claim the credit based on the partnership’s tax year, or that partner may claim the credit on the partner’s 2018 tax return based on the partner’s own tax year. c. Information required. The tax credit certificate shall include the taxpayer’s name, address, tax identification number, the amount of the credit, the name of the eligible business, and any other information required by the department of revenue. d. Allocation to the individual owners of the entity or beneficiaries of an estate or trust. An individual may claim the credit of a partnership, limited liability company, S corporation, cooperative organized under Iowa Code chapter 501 and filing as a partnership for tax purposes, estate, or trust electing to have income taxed directly to the individual. The amount claimed by the individual shall be based on the pro rata share of the individual’s earnings from the partnership, limited liability company, S corporation, cooperative, estate, or trust. e. Refundability. Any credit in excess of the tax liability is refundable. In lieu of claiming a refund, the taxpayer may elect to have the overpayment shown on the taxpayer’s final, completed return credited to the tax liability for the following tax year. f. Transferability. Tax credit certificates shall not be transferred to any other person. g. Rescission and recapture. The tax credit certificate, unless rescinded by the economic development authority, shall be accepted by the department of revenue, subject to any conditions or restrictions placed upon the face of the tax credit certificate by the economic development authority and subject to the limitations of the program. Should the economic development authority reduce, terminate, or rescind any tax credits issued under the program, the eligible business may be subject to the repayment or recapture of any credits already claimed. The economic development authority’s rules related to the program may be found in 261—Chapter 81. The repayment of tax credits or recapture by the department of revenue shall be accomplished in the same manner as provided in Iowa Code section 15.330(2). This rule is intended to implement Iowa Code section 422.10B. ITEM 2. Adopt the following new rule 701—52.49(15,422):701—52.49(15,422) Renewable chemical production tax credit program. An eligible business that has received a renewable chemical production tax credit certificate from the economic development authority may claim a tax credit against corporation income tax. The credit is equal to the product of five cents multiplied by the number of pounds of renewable chemicals produced in Iowa from biomass feedstock by the eligible business during a given production year, subject to the limitations described in Iowa Code sections 15.315 through 15.322, 261—Chapter 81, and this rule. The economic development authority’s rules on eligibility for the credit may be found in 261—Chapter 81. 52.49(1) Application and agreement for the credit. To be eligible for the tax credit, the eligible business must apply to and enter into an agreement with the economic development authority. The economic development authority’s rules on the application and agreement process may be found in 261—Chapter 81. 52.49(2) Computation of the amount of credit and certificate issuance. Upon establishing that all requirements of the program and the agreement have been fulfilled and verifying the taxpayer’s eligibility for the tax credit, the economic development authority calculates the credit. Then the economic development authority issues the related tax credit certificate to the eligible business stating the amount of the renewable chemical production tax credit that the eligible business may claim. A tax credit certificate shall not be issued by the economic development authority prior to July 1, 2018. The economic development authority’s rules on credit certificate issuance may be found in 261—Chapter 81. 52.49(3) Claiming the tax credit. a. Claiming the credit, generally. To claim the credit, a taxpayer must include one or more tax credit certificates with the taxpayer’s tax return for the tax year during which the eligible business was issued the tax credit certificate or certificates. If the taxpayer claiming the credit has already filed a return for the tax year for which the credit certificate was issued, the taxpayer may claim the credit on an amended return. The taxpayer must file the amended return within the statute of limitations applicable to such amended return. No tax credit may be claimed under this program by a taxpayer prior to September 1, 2018. b. Claiming the credit of a pass-through entity. To claim the credit of an eligible business that is a pass-through entity, an individual taxpayer must claim the credit on the tax return for the tax year during which the eligible business received the tax credit certificate. Such tax year may be either the tax year of the eligible business or of the individual. Example: A partnership has a fiscal year of September 2017 through August 2018. The partnership receives a renewable chemical production tax credit certificate under this program in July 2018, which is during the partnership’s 2017 tax year. A partner in the partnership files individual returns on a calendar year basis, which means that the credit was issued in the partner’s 2018 tax year. That partner may file an amended 2017 tax return to claim the credit based on the partnership’s tax year, or that partner may claim the credit on the partner’s 2018 tax return based on the partner’s own tax year. c. Information required. The tax credit certificate shall include the taxpayer’s name, address, and tax identification number, the amount of the credit, the name of the eligible business, and any other information required by the department of revenue. d. Allocation to the individual owners of the entity or beneficiaries of an estate or trust. An individual may claim the credit of a partnership, limited liability company, S corporation, cooperative organized under Iowa Code chapter 501 and filing as a partnership for tax purposes, estate, or trust electing to have income taxed directly to the individual. The amount claimed by the individual shall be based on the pro rata share of the individual’s earnings from the partnership, limited liability company, S corporation, cooperative, estate, or trust. e. Refundability. Any credit in excess of the tax liability is refundable. In lieu of claiming a refund, the taxpayer may elect to have the overpayment shown on the taxpayer’s final, completed return credited to the tax liability for the following tax year. f. Transferability. Tax credit certificates shall not be transferred to any other person. g. Rescission and recapture. The tax credit certificate, unless rescinded by the economic development authority, shall be accepted by the department of revenue, subject to any conditions or restrictions placed upon the face of the tax credit certificate by the economic development authority and subject to the limitations of the program. Should the economic development authority reduce, terminate, or rescind any tax credits issued under the program, the eligible business may be subject to the repayment or recapture of any credits already claimed. The economic development authority’s rules related to the program may be found in 261—Chapter 81. The repayment of tax credits or recapture by the department of revenue shall be accomplished in the same manner as provided in Iowa Code section 15.330(2). This rule is intended to implement Iowa Code section 422.33(22). [Filed 3/8/17, effective 5/3/17][Published 3/29/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/29/17.ARC 3010CUtilities Division[199]Adopted and FiledPursuant to Iowa Code sections 17A.4, 476.1, 476.1B, 476.2, 476A.12, 478.19, and 478.20, the Utilities Board (Board) gives notice that on March 9, 2017, the Board issued an order in Docket No. RMU-2016-0009, In re: Review of Iowa Electrical Safety Code Rules [199 IAC Chapter 25], “Order Adopting Amendments,” amending the Board’s rules that comprise the Iowa Electrical Safety Code. The order adopted amendments with additional nonsubstantive editorial revisions to add a new Item 3 and make changes to Item 5, herein renumbered as Item 6, to replace references to the 2012 version of the National Electrical Safety Code (NESC) with references to the 2017 version of that code. These amendments were published under Notice of Intended Action in the Iowa Administrative Bulletin in Vol. XXXIX, No. 11 (11/23/16) p. 1031, as ARC 2815C. These amendments update references to the NESC to specify that the Board is adopting the 2017 version of that code. These amendments also clarify rules regarding utility inspection plans, record-keeping requirements, incident-reporting requirements, and public information campaigns regarding hazards of constructing grain bins near power lines. The Board received written comments in response to the Notice of Intended Action from MidAmerican Energy Company (MidAmerican); ITC Midwest, LLC (ITC); and the Office of Consumer Advocate (OCA), a division of the Iowa Department of Justice. Written comments were also received in response to a preliminary “Order Requesting Stakeholder Comment on Potential Rule Changes” issued on August 5, 2016, from MidAmerican, ITC, OCA, and Interstate Power and Light Company. MidAmerican, ITC, OCA, and the Iowa Association of Electric Cooperatives appeared at the oral presentation held on January 24, 2017. Oral and written comments have been generally supportive of the amendments. The order adopting amendments and approving this Adopted and Filed rule making can be found on the Board’s Electronic Filing System (EFS) Web site, http://efs.iowa.gov, in Docket No. RMU-2016-0009. After analysis and review, the Board tentatively concludes that the adopted amendments will not have a detrimental effect on jobs in Iowa. These amendments are intended to implement Iowa Code sections 17A.4, 476.1, 476.1B, 476.2, 476A.12, 478.19, and 478.20. These amendments will become effective on May 3, 2017. The following amendments are adopted.
ITEM 1. Amend subrule 25.2(1) as follows: 25.2(1) National Electrical Safety Code. The American National Standards Institute (ANSI) C2-2012C2-2017, “National Electrical Safety Code” (NESC), including issued Correction Sheets, is adopted as part of the Iowa electrical safety code, except Part 4, “Rules for Operation of Electric Supply and Communications Lines and Equipment,” which is not adopted by the board. ITEM 2. Amend subrule 25.2(2), introductory paragraph, as follows: 25.2(2) Modifications and qualifications to ANSI C2the NESC. The standards set forth in ANSI C2the NESC are modified or qualified as follows: ITEM 3. Amend subparagraph 25.2(2)"b" as follows: (4) Except for clearances near grain bins, for measurements made under field conditions, the board will consider compliance with the overhead vertical line clearance requirements of Subsection 232 and Table 232-1 of the 1987 NESC indicative of compliance with the 1990 through 20122017 editions of the NESC. (For an explanation of the differences between 1987 and subsequent code edition clearances, see Appendix A of the 1990 through 20122017 editions of the NESC.) ITEM 4. Amend paragraph 25.2(2)"d" as follows: d. Rule 217C.1217C1 is changed to read:“The ground end of anchor guys exposed to pedestrian or vehicle traffic shall be provided with a substantial marker not less than eight feet long. The guy marker shall be of a conspicuous color such as yellow, orange, or red. Green, white, gray or galvanized steel colors are not reliably conspicuous against plant growth, snow, or other surroundings. Noncomplying guy markers shall be replaced as part of the utility’s inspection and maintenance plan.” ITEM 5. Amend paragraph 25.2(2)"f" as follows: f. There is added to the first paragraph of Rule 110.A.1110A1, after the sentence stating, “Entrances not under observation of an authorized attendant shall be kept locked,” the following sentences:Entrances may be unlocked while authorized personnel are inside. However, if unlocked, the entrance gate must be fully closed, and must also be latched or fastened if there is a gate-latching mechanism. ITEM 6. Amend subrule 25.2(3) as follows: 25.2(3) Grain bins. a. Electric utilities shall conductor participate in annual public information campaigns to inform farmers, farm lenders, grain bin merchants, and city and county zoning officials of the hazards of and standards for construction of grain bins near power lines. Where drawings and formulas from the NESC are used as part of public information campaigns, they are to be based on the “Errata to 2012 Edition National Electrical Safety Code” Correction Sheet issued February 6, 2012. b. An electric utility may refuse to provide electric service to any grain bin built near an existing electric line which does not provide the clearances required by the American National Standards Institute (ANSI) C2-2012C2-2017 “National Electrical Safety Code,” Rule 234F. This paragraph “b” shall apply only to grain bins loaded by portable augers, conveyors or elevators and built after September 9, 1992, or to grain bins loaded by permanently installed augers, conveyors, or elevator systems installed after December 24, 1997. ITEM 7. Amend subrule 25.3(2) as follows: 25.3(2) Annual report. Each utility shall include as part of its annual report to the board, as required by 199—Chapter 23, certification of compliance with each area of the inspectionand maintenance planrequired by subrule 25.3(1) or a detailed statement on areas of noncompliance. ITEM 8. Amend subrule 25.3(4) as follows: 25.3(4) Records. Each utility shall keep sufficient records to demonstrate compliance with its inspection and vegetation management plans. For each inspection unit, the records of line and substation inspections and pole inspections shall include the inspection date(s), the findings of the inspection, and the disposition or scheduling of repairs or maintenance found necessary during the inspection. For each inspection unit, the records of vegetation management shall include the date(s) during which the work was conducted. The records shall be kept until two years after the next periodic inspection or vegetation management actionin the inspection and maintenance plan cycle is completed or until all necessary repairs and maintenance are completed, whichever is longer. ITEM 9. Amend subrule 25.5(3) as follows: 25.5(3) The board shall be notified immediately, or as soon as practical thereafter, by e-mail to the board duty officer at dutyofficer@iub.iowa.gov or, in appropriate circumstancesif e-mail service is not available, by calling (515)745-2332. The person contacting the board shall leave a telephone number of a person who can provide the following information: a. The name of the company, the name and telephone number of the person making the report, and the name and telephone number of a contact person knowledgeable about the incident. b. The location of the incident. c. The time of the incident. d. The number of deaths or personal injuries requiring in-patient hospitalization and the extent of those injuries. e. Initial estimate of damages. f. A summary of the significant information available regarding the probable cause of the incident and extent of damages. g. Any oral or written report made to a federal agency, the agency receiving the report, and the name and telephone number of the person who made or prepared the report. ITEM 10. Amend subrule 25.5(4) as follows: 25.5(4) Written incident reports. Within 30 days of the date of the incident, the owner or operator shall file a written report with the board. The report shall include the information required for telephone notice in subrule 25.5(3), the probable cause as determined by the company, the number and cause of any deaths or personal injuries requiring in-patient hospitalization, and a detailed description of property damage and the amount of monetary damages. If significant additional information becomes available at a later date, a supplemental report shall be filed. Duplicate copies of any written reports filed with or submitted to a federal agency concerning the incident shall also be provided to the board. [Filed 3/9/17, effective 5/3/17][Published 3/29/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/29/17.ARC 3009CWorkforce Development Department[871]Adopted and FiledPursuant to the authority of Iowa Code section 96.11, the Director of Workforce Development hereby amends Chapter 26, “Contested Case Proceedings,” Iowa Administrative Code. These amendments update, clarify and simplify the procedures in preparing for and participating in unemployment appeal hearings. Notice of Intended Action was published on November 23, 2016, as ARC 2823C. No comments were received. The rules were on the agenda for the Administrative Rules Review Committee meeting on December 13, 2016, and no questions or comments were received during this meeting. These amendments are identical to those published under Notice. This rule making does not have a fiscal impact on the state of Iowa. Waiver provisions pursuant to Iowa Code section 17A.4(2) are not applicable. After analysis and review of this rule making, no impact on jobs has been found. These amendments are intended to implement Iowa Code chapter 96. These amendments will become effective May 3, 2017. The following amendments are adopted.
ITEM 1. Amend subrule 26.3(1) as follows: 26.3(1) Time shall be computed as provided in Iowa Code section 4.1(22)4.1(34). ITEM 2. Amend rule 871—26.6(17A,96) as follows:871—26.6(17A,96) Notice of hearing. 26.6(1) A telephone or in-person hearing shall not be scheduled before the seventh calendar day after the parties receive notice of the hearing. NoticeA notice of hearing shall be sent by first-class mailor via e-mail to all parties at their last-known addressat least ten calendar days in advance of the hearing date and shall include: a. The date, time and place of an in-person hearing, or the date and time of a telephone hearing, including instructions for calling the appeals bureau in advance of the hearing to provide the names and telephone numbers of allparticipants and witnesses; and b. The nature of the hearing, including the legal authority and jurisdiction under which the hearing is held; and c. A statement of the issues and the applicable sections of the Iowa Code or Iowa Administrative Code; and d. A description ofthe administrative law judge who will serve as presiding officer. 26.6(2) The seven-dayten-day notice of hearing may be waived upon the agreement of the parties. 26.6(3) An in-person hearing shall be scheduled in the following workforce development centers: Burlington, Carroll, Cedar Rapids, Creston, Council Bluffs, Davenport, Decorah, Des Moines, Dubuque, Fort Dodge, Mason City, Ottumwa, Sioux City, Spencer, Storm Lake, and Waterloo. 26.6(4) A hearing shall be scheduled promptly and shall be conducted by telephone unless a party requests that it be held in person. A request for an in-person hearing may be denied if factors such as the distance between the parties, the number of parties or the health of any party makesmake it impractical or impossible to conduct a fair hearing in person. An in-person hearing may be scheduled at the discretion of the presiding officer to whom the contested case is assigned or, in that presiding officer’s absence, theby the manager or chief administrative law judge of the appeals bureau. The party requesting an in-person hearing will ordinarily be required to travel the greater distance if all parties are not located near the same hearing site. As a matter of discretion, the appeals bureau may schedule an in-person hearing at a regular hearing site approximately equidistant from the parties. In the discretion of the presiding officer to whom the contested case is assigned,or the manager or chief administrative law judge of the appeals bureau, witnesses or representatives may be allowed to participate via telephone in an in-person hearing, provided that each party has at least one witness present at the hearing site. When two or more parties are involved, the evidence shall be presented during the same hearing. 26.6(5) Whenever it appears that other parties should be joined to dispose of all issues in a contested case, the presiding officer shall so order and shall grant such continuance and hold such additional proceedings, upon notice to all parties, as may be necessary. 26.6(6) Any number of appeals involving similar issues of law or fact may be consolidated for hearing so long as no substantial rights of any party would be prejudiced by so doing. 26.6(7) Any party may appear in any proceeding. Any partnership, corporation, or association may be represented by any of its members, officers, or a duly authorized representative. Any party may appear by, or be represented by, an attorney-at-law or a duly authorized representative of an interested party. 26.6(8) Where a party not attending the hearing will be represented by another person, such person shall submit written proof of such representation, signed by the party such person purports to represent, at least three days before the hearing to the presiding officer. ITEM 3. Amend rule 871—26.8(17A,96) as follows:871—26.8(17A,96) Withdrawals, dismissals, and postponements. 26.8(1) An appeal may be withdrawn at any time prior to the issuance of a decision upon the request of the appellant and with the approval of the presiding officer to whom the case is assignedan administrative law judge or the manager or chief administrative law judge of the appeals bureau. Requests for withdrawal may be made in writing or orally, provided the oral request is tape-recorded by the presiding officer.An appeal may be dismissed upon the request of a party or in the agency’s discretion when the issue or issues on appeal have been resolved in the appellant’s favor. 26.8(2) A hearing may be postponed by the presiding officer for good cause, either upon the presiding officer’s own motion or upon the request of any party in interest. A party’s request for postponement may be in writing or oral, provided the oral request is tape-recorded by the presiding officer, and is made not less than three days prior to the scheduled hearing. A party shall not be granted more than one postponement except in the case of extreme emergency. 26.8(3) If, due to emergency or otherfor good cause, a party, having received due notice, is unable to attend a hearing or request postponement within the prescribed time, the presiding officer may, if no decision has been issued, reopen the record and, with notice to all parties, schedule another hearing. If a decision has been issued, the decision may be vacated upon the presiding officer’s own motion or at the request of a party within 15 days after the mailing date of the decision and in the absence of an appeal to the employment appeal board of the department of inspections and appeals. If a decision is vacated, notice shall be given to all parties of a new hearing to be held and decided by another presiding officer. Once a decision has become final as provided by statute, the presiding officer has no jurisdiction to reopen the record or vacate the decision.“Good cause” for purposes of this rule is defined as an emergency circumstance that is beyond the control of the party and that prevents the party from being able to participate in the hearing. Examples of good cause include, but are not limited to, death, sudden illness, or accident involving the party or the party’s immediate family (spouse, partner, children, parents, sibling) or other circumstances evidencing an emergency situation which was beyond the party’s control and was not reasonably foreseeable. Examples of circumstances that do not constitute good cause include, but are not limited to, a lost or misplaced notice of hearing, confusion as to the date and time for the hearing, failure to follow the directions on the notice of hearing, oversleeping, or other acts demonstrating a lack of due care by the party. 26.8(4) A request to reopen a record or vacate a decision may be heard ex parte by the presiding officermust be made in writing.If necessary, the presiding officer may hear, ex parte, additional information regarding the request for reopening. The granting or denial of such a request may be used as a grounds for appeal to the employment appeal board of the department of inspections and appeals upon the issuance of the presiding officer’s final decision in the case. 26.8(5) If good cause for postponement or reopening has not been shown, the presiding officer shall make a decision based upon whatever evidence is properly in the record. ITEM 4. Amend rule 871—26.10(17A,96) as follows:871—26.10(17A,96) Ex parte communications. 26.10(1) An ex parte communication is an oral or written communication relating directly to the facts or legal questions at issue in a contested case proceeding which is made by a party to the presiding officer to whom the case has been assigned without the knowledge or outside the presence of the other parties and with the object of affecting the outcome of the case. 26.10(2) Ex parte communication does not include: a. Statements given by the parties to representatives of the department for use in making the initial determination; b. Statements contained in a party’s appeal from the initial determination; c. Statements relating only to procedural or scheduling matters, such as requests for discovery, subpoenas, postponements or withdrawals of appeals; d. Requests for clarification of a legal issue involved in a contested case, but only to the extent of requesting information on the applicable law sections and not as to matters of fact. 26.10(3) Unless required for the disposition of ex parte matters specifically authorized by statute, no party or its representative shall communicate directly or indirectly with the presiding officer to whom a contested case is assigned, nor shall the presiding officer communicate directly or indirectly with a party or its representative concerning any issue of fact or law in a contested case unless: a. Each party or its representative is given written notification of the communication. Such notification shall contain a summary of the communication, if oral, or a copy of the communication, if written, as well as the time, place and means of the communication. b. After notification, all parties have the right, upon written demand, to respond to the ex parte communication, including the right to be present and heard if an oral communication has not been completed. If the communication is written, or if oral and completed, all other parties have the right, upon written demand, to a special hearing to respond to the ex parte communication. c. Whether or not any party requests the opportunity to respond to an ex parte communication made in violation of Iowa Code section 17A.17(2) as amended by 1998 Iowa Acts, chapter 1202, section 19, the presiding officer shall include such communication in the official record of the contested case. 26.10(4) Prohibitions on ex parte communications commence with the issuance of the notice of hearing in a contested case and continue for as long as the case is pending. 26.10(5) Communications with the presiding officer involving uncontested scheduling or procedural matters do not require notice or opportunity for parties to participate. Parties should notify other parties prior to initiating such contact with the presiding officer when feasible. 26.10(6) A presiding officer who receives a prohibited ex parte communication during the pendency of a contested case must initially determine if the effect of the communication is so prejudicial as to require the presiding officer’s recusal. If the presiding officer determines that recusal is warranted, a copy of any prohibited written communication, all written responses to the communication, a written summary stating the substance of any prohibited oral or other communication not available in written form for disclosure, all responses made, and the identity of each person from whom the presiding officer received a prohibited ex parte communication shall be submitted for inclusion in the record under seal by protective order or disclosed. If the presiding officer determines that recusal is not warranted, such documents shall be submitted for inclusion in the record and served on all parties. Any party desiring to rebut the prohibited communication must be allowed the opportunity to do so upon written request filed within ten days after notice of the communication. 26.10(7) Promptly after being assigned to serve as presiding officer at any stage in a contested case proceeding, a presiding officer shall disclose to all parties material factual information received through ex parte communication prior to such assignment unless the factual material has already been or shortly will be disclosed. Factual information contained in an investigative report or similar document need not be separately disclosed by the presiding officer as long as such documents have been or shortly will be provided to the parties. 26.10(8) The presiding officer may impose appropriate sanctions for violations of this rule, including dismissal of an appellant’s contested case, a decision against the offending party, censure, or suspension or revocation of the privilege to practice before the agency. Violation of ex parte communication prohibitions by agency personnel shall be reported to themanager or chief administrative law judgeof the appeals bureau for possible sanctions. ITEM 5. Amend rule 871—26.13(17A,96) as follows:871—26.13(17A,96) Subpoenas and witnesses. 26.13(1) It is the responsibility of the parties to request the attendance of such witnesses they believe have knowledge of the facts in issue in the contested case. 26.13(2) Upon the written request of a party in interest received at least three days prior to the date of a hearing, the presiding officer shall issue a subpoena compelling the attendance of a person at the contested case hearing. 26.13(3) The written request shall include: a. The name and address of the person to be served;and b. A statement of the relevance of the witness’s testimony and that it will not repeat or duplicate the testimony of other witnesses; and. c. A statement that the witness refuses to testify voluntarily despite the party’s request that the person do so. 26.13(4) A subpoena duces tecum shall be issued in the manner provided in subrule 26.13(2), except that the request must also state specifically the books, papers, correspondence, memoranda or other records desired. 26.13(5) Documents subpoenaed for telephone hearings shall be mailed,or faxed, or e-mailed to the appeals sectionbureau and to the other parties to the proceeding prior to the hearing to facilitate the exchange of documents among the parties. Documents subpoenaed for in-person hearings shall be brought to the hearing site at the time of the contested case hearing, unless otherwise ordered by the presiding officer. 26.13(6) If the presiding officer deems it appropriate, the person to whom a subpoena is directed shall be notified and given the opportunity to object to the issuance of the subpoena. a. If an objection to the issuance of the subpoena is raised, the presiding officer may, as a matter of discretion, hear and rule on the objection prior to commencing the evidentiary hearing or postpone the evidentiary hearing and schedule a special hearing to receive arguments from all parties concerning the issuance of the subpoena. b. The presiding officer shall issue the subpoena if it is established to the presiding officer’s satisfaction that the testimony or document sought is material and relevant, is not unduly repetitious of other evidence already of record or expected to be submitted by any party, and, in the case of the subpoena duces tecum, the records requested do not disclose business secrets or cause undue burden on the party to whom the subpoena is directed. 26.13(7) If the subpoena is granted over objection, the aggrieved party may, in accordance with Iowa Code section 17A.19(1), petition the district court for review of the action before proceeding further. The aggrieved party must in that event promptly notify the presiding officer that a petition for judicial review of such order will be filed immediately so that the contested case may be postponed until the court has issued its ruling. Nothing herein shall preclude an aggrieved party from including the granting or denial of a subpoena as grounds for appeal of the presiding officer’s decision in the contested case to the employment appeal board of the department of inspections and appeals. 26.13(8) Any subpoenaed witness attending a hearing shall be paid $10 for each day’s attendance, and $5 for each attendance of less than a full day, plus mileage expenses at the rate specified in Iowa Code section 79.9 for each mile actually traveled. 26.13(9) If any person to whom a subpoena is directed refuses to honor the subpoena, the appeals section of the department may apply to the appropriate district court for an order to compel the party to obey the subpoena. 26.13(10) A party may request the issuance of a subpoena or a subpoena duces tecum to be served in another state. If the presiding officer finds the witness or evidence sought is material, relevant and not available in this state, the presiding officer shall explore the possibility of obtaining it voluntarily. When necessary and upon proper application, the presiding officer shall have a subpoena or a subpoena duces tecum issued to be served by a sister agency in the state in which the witness or evidence is located, compelling the witness to testify or the evidence to be produced. ITEM 6. Amend rule 871—26.14(17A,96) as follows:871—26.14(17A,96) Conduct of hearings. 26.14(1) Each contested case hearing shall be heard and decided by a presiding officer who is an administrative law judge. a. All contested case hearings except as provided in paragraphs “b” and “c” below shall be heard and decided by an administrative law judge employed by the department of workforce development. The qualifications for administrative law judges employed by the department of workforce development shall be the same as the qualifications for administrative law judges employed by the division of administrative hearings of the department of inspections and appeals. b. All contested case hearings in which the department of workforce development is a party shall be heard and decided by a presiding officer who is an administrative law judge employed by the division of administrative hearings of the department of inspections and appeals. c. The department of workforce development is a party to all contested case hearings in which it is the employer. it is a party to those contested case hearings involving issues of employer liability, employee/independent contractor status, fraudulent overpayment and administrative penalty in which it or any of its employees request the right to participate in the hearing by offering testimony and cross-examining witnesses for other parties. 26.14(2) The presiding officer shall inquire fully into the factual matters at issue and shall receive in evidence the sworn testimony of witnesses and physical evidence which are material and relevant to such matters. Upon the presiding officer’s own motion or upon the written application of any party, and for good cause shown, the presiding officer may reopen the record for additional material, relevant and nonrepetitious evidence not submitted at the original contested case hearing. 26.14(3) The presiding officer shall begin each hearing with a brief statement identifying the parties and issues, outlining the history of the case, advising the parties of their appeal rights and announcing what matters, if any, will be officially noticed. Any party may inspect and use any portion of the administrative file necessary for the presentation of its case. The administrative file may include information from the claimant’s files maintained in the agency’s computer system. 26.14(4) The hearing shall be confined to evidence relevant to the issue or issues stated on the notice of hearing. If, during the course of a hearing, it appears to the presiding officer that a section of the Iowa Code not set forth in the notice of hearing may affect the presiding officer’s decision, the presiding officer shall so notify the parties and announce willingness to continue taking testimony on the underlying factual matters if the parties agree to waive on record further notice and make no objection to continuing. If any party objects, the presiding officer shall postpone the hearing and cause new notices of hearing, containing all relevant issues and law sections, to be sent to the parties. Notwithstanding, voluntary quits and discharges generally shall be construed to constitute the single issue of separation from employment so that evidence of either or both types of separation may be received in a single hearing. 26.14(5) If factual issues generally relevant to a party’s eligibility or liability for benefits but unrelated to the underlying facts in controversy in the present contested case are exposed, the presiding officer shall not take testimony or evidence on such issue but shall remand the issue to the appropriate section of the department for investigation and preliminary determination. 26.14(6) In the event thatIf one or more parties which have received notice for a contested case hearing fail to appear at the time and place of an in-person hearing, the presiding officer may proceed with the hearing. If the appealing party fails to appear, the presiding officer may decide the party is in default and dismiss the appeal. The hearing may be reopened if the absent party makes a requestin writing to reopen the hearing under subrule 26.8(3) and shows good cause for reopening the hearing. a. If an absent party arrives for an in-person hearing while the hearing is in session, the presiding officer shall pause to admit the party, summarize the hearing to that point, administer the oath, and resume the hearing. b. If an absent party arrives for an in-person hearing after the record has been closed and after any party which had participated in the hearing has departed, the presiding officer shall not take the evidence of the late party. Instead, the presiding officer shall inquire ex parte as to the reason the party was late. For good cause shown, the presiding officer shall cause notice of hearing to be issued to all parties of record and reopen the record. The record shall not be reopened if the presiding officer does not find a good cause for the party’s late arrival. 26.14(7) If a party has not responded to a notice of telephone hearing by providing the appeals bureau with the names and telephone numbers of the persons who are participating in the hearing by the scheduled starting time of the hearing or is not available at the telephone number provided, the presiding officer may proceed with the hearing. If the appealing party fails to provide a telephone number or is unavailable for the hearing, the presiding officer may decide the appealing party is in default and dismiss the appeal as provided in Iowa Code section 17A.12(3). The record may be reopened if the absent party makes a requestin writing to reopen the hearing under subrule 26.8(3) and shows good cause for reopening the hearing. a. If an absent party responds to the hearing notice while the hearing is in progress, the presiding officer shall pause to admit the party, summarize the hearing to that point, administer the oath, and resume the hearing. b. If a party responds to the notice of hearing after the record has been closed and any party which has participated is no longer on the telephone line, the presiding officer shall not take the evidence of the late party. Instead, the presiding officer shall inquire ex parte as to why the party was late in responding to the notice of hearing. For good cause shown, the presiding officer shall reopen the record and cause further notice of hearing to be issued to all parties of record. The record shall not be reopened if the presiding officer does not find good cause for the party’s late response to the notice of hearing. c. Failure to read or follow the instructions on the notice of hearing shall not constitute good cause for reopening the record. 26.14(8) The presiding officer shall record all communications with late parties. If the presiding officer does not reopen the record, the decision in the contested case shall state the presiding officer’s reason for so doing. 26.14(9) Rescinded IAB 1/8/14, effective 2/12/14. 26.14(10) Whenever necessary, the presiding officer may require the attendance at a hearing of department employees having knowledge of the facts in controversy or having technical knowledge concerning the issues raised in appeal. a. If the primary issue is the claimant’s ability to work, availability for work or work search, the department shall be named as respondent. The presiding officer may call department personnel having knowledge of the facts in controversy as witnesses. b. If the issue on appeal is an offer of or recall to work or a job referral by a local workforce development center, both the employer making the offer or recall and the workforce development center representative making the referral may be witnesses at the hearing. c. If the issue on appeal is the claimant’s refusal of employment because of wages, the presiding officer may take the testimony of the workforce development representative having knowledge of prevailing wages in the vicinity. The presiding officer may also obtain testimony and evidence of the hours and other conditions of work for similar jobs in the area. 26.14(11) In the discretion of the presiding officer, witnesses may be excluded from the hearing roomor telephone hearing until called to testify. The presiding officer shall admonish such witnesses not to discuss the case among themselves until after the record has been closed. All witnesses shall be subject to examination by the presiding officer and by all parties. 26.14(12) The presiding officer may expel or refuse admittance to any party, witness or other person whose conduct at the hearing is disorderly. 26.14(13) If the parties agree that no dispute of material facts exists as to a matter that would be a contested case if such a dispute of fact existed, the parties may present all relevant material evidence either by stipulation or otherwise as agreed by the parties, without the necessity of a formal evidentiary hearing. ITEM 7. Adopt the following new subrule 26.15(5): 26.15(5) Proposed exhibits should be sent to the appeals bureau and to the party or parties to the proceeding prior to the hearing by mail, fax, or e-mail. ITEM 8. Amend subrule 26.17(1) as follows: 26.17(1) The presiding officer shall issue a written, signed decision as soon as practicable after the closing of the record in a contested case. Each decision shall: a. Set forth the issues, appeal rights, a concise history of the case, findings of essential facts, the reasons for the decision and the actual disposition of the case; b. Be based on the kind and quality of evidence upon which reasonably prudent persons customarily rely for the conduct of their serious affairs, even if none of such evidence would be admissible in a jury trial in the Iowa district court; and c. Be sent by first-class mailor e-mail to each of the parties in interest and their representatives. [Filed 3/9/17, effective 5/3/17][Published 3/29/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/29/17.Back matter not included