Bulletin 11-22-2017

Front matter not included
ARC 3459CHuman Services Department[441]Notice of Intended Action

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

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

    Pursuant to the authority of Iowa Code section 249A.4, the Department of Human Services hereby gives Notice of Intended Action to amend Chapter 81, “Nursing Facilities,” and Chapter 82, “Intermediate Care Facilities for Persons with an Intellectual Disability,” Iowa Administrative Code.     Currently, Iowa does not have an appropriate system of care for young adults with complex medical conditions. The lack of an appropriate definition for a system of care for young adults with complex medical conditions has resulted in inappropriate nursing home placements and could force those Medicaid members to seek services outside the state of Iowa. Current rules are limited to residents who are 21 years of age and under. These amendments expand the special population nursing facility criteria to include persons up to the age of 30 and also add members residing in an intermediate care facility for persons with medical complexity. These amendments also increase the number of qualified providers available to meet the needs of young adults with complex medical conditions.     As the result of these amendments, persons up to the age of 30 with complex medical needs will have more service options available to meet their needs.     Any interested person may make written comments on the proposed amendments on or before December 12, 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 email 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 249A.4.     The following amendments are proposed.

    ITEM 1.    Amend rule 441—81.1(249A), definition of “Special population nursing facility,” as follows:        "Special population nursing facility" refers to a nursing facility that serves the following populations:
  1. One hundred percent of the residents served are aged 2130 and under and require the skilled level of care.
  2. Seventy percent of the residents served require the skilled level of care for neurological disorders.
  3. One hundred percent of the residents require care from a facility licensed by the department of inspections and appeals as an intermediate care facility for persons with mental illness.
  4. One hundred percent of the residents require care from a facility licensed by the department of inspections and appeals as an intermediate care facility for persons with medical complexity.

    ITEM 2.    Adopt the following new definition of “Intermediate care facility for persons with medical complexity” in rule 441—81.1(249A):        "Intermediate care facility for persons with medical complexity" has the same meaning as provided in rule 441—82.1(249A).

    ITEM 3.    Adopt the following new definition of “Intermediate care facility for persons with medical complexity” in rule 441—82.1(249A):        "Intermediate care facility for persons with medical complexity" means an intermediate care facility for persons with an intellectual disability which provides health and rehabilitation services to individuals who require a skilled nursing level of care, have either a multiple organ dysfunction or severe single organ dysfunction, and require daily use of medical resources or technology.
ARC 3462CInsurance Division[191]Notice of Termination

    Pursuant to the authority of Iowa Code chapters 505, 513C, and 514E, the Insurance Division hereby terminates the rule making initiated by its Notice of Intended Action published in the Iowa Administrative Bulletin as ARC 3348C on October 11, 2017, proposing to amend Chapter 82, “Iowa Stopgap Measure,” Iowa Administrative Code.     The Notice proposed to amend Chapter 82 by adding new rules further detailing the implementation of the Iowa Stopgap Measure developed by the Insurance Division to provide an innovative solution to temporarily stabilize Iowa’s individual health insurance market.     The Division is terminating the rule making commenced in ARC 3348C.     The public hearing that was to have been held on November 2, 2017, at 10 a.m., at the offices of the Iowa Insurance Division, was canceled.     The amendment included in ARC 3348C was also Adopted and Filed Emergency and published in the Iowa Administrative Bulletin on October 11, 2017, as ARC 3349C. The Division adopted that amendment on September 14, 2017. The Division plans to rescind the rules adopted in ARC 3349C. Notice of Intended Action proposing the rescission is published herein as ARC 3461C.     After analysis and review of this rule making, no impact on jobs has been found.

ARC 3461CInsurance Division[191]Notice of Intended Action

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

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

    Pursuant to the authority of Iowa Code chapters 505, 513C, and 514E, the Insurance Division hereby gives Notice of Intended Action to rescind Chapter 82, “Iowa Stopgap Measure,” Iowa Administrative Code.    Chapter 82 primarily allows for implementation of the Iowa Stopgap Measure that was developed by the Insurance Division upon request by the Governor. The Iowa Stopgap Measure was intended to provide an innovative solution to temporarily stabilize Iowa’s individual health insurance market. The Iowa Stopgap Measure was first submitted by the Insurance Division on June 7, 2017, to the Centers for Medicare and Medicaid Services (CMS) as a waiver application under Section 1332 of the Patient Protection and Affordable Care Act (ACA) (42 U.S.C. Section 18052). The Insurance Division worked with CMS to develop the waiver application and submitted the application on August 21, 2017.     The Division withdrew its waiver application on October 23, 2017. Therefore, the need for Chapter 82 has been eliminated.    The Division intends that this rule making will become effective on February 21, 2018.    Any interested person may make written suggestions or comments on the proposed amendment on or before December 12, 2017. Such written materials should be directed to Ann Outka, Iowa Insurance Division, Two Ruan Center, 601 Locust Street, Fourth Floor, Des Moines, Iowa 50319; fax (515)281-8813; email ann.outka@iid.iowa.gov.     These rules do not include a provision for the waiver of the rules because the rules are eliminated.     In addition to this Notice, a Notice of Termination of the rule making commenced in ARC 3348C, which proposed to further amend to Chapter 82 and which now serves no purpose, is published herein as ARC 3462C.     After analysis and review of this rule making, no impact on jobs has been found.     The Insurance Commissioner has proposed this Notice to rescind Chapter 82 under his rule-making authority of Iowa Code chapters 505, 513C, and 514E.    This amendment is intended to implement Iowa Code chapters 505, 513C, and 514E.    The following amendment is proposed.

    ITEM 1.    Rescind and reserve 191—Chapter 82.
ARC 3458CNatural Resources Department[561]Notice of Intended Action

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

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

    Pursuant to the authority of Iowa Code sections 17A.3(1)“a” and 455A.4(1)“i,” the Department of Natural Resources (Department) hereby gives Notice of Intended Action to rescind Chapter 1, “Description of Organization,” Iowa Administrative Code, and to adopt a new Chapter 1 with the same title.    Iowa Code section 17A.3(1)“a” requires that each agency shall, in addition to other requirements imposed by Constitution or statute, “[a]dopt as a rule a description of the organization of the agency which states the general course and method of its operations, the administrative subdivisions of the agency and the programs implemented by each of them, a statement of the mission of the agency, and the methods by which and location where the public may obtain information or make submissions or requests.”     The proposed amendment will revise and make current the Department’s organization description, as required by Iowa Code section 17A.3(1)“a,” as the agency’s management structure has changed since Chapter 1 was last updated.     The proposed amendment will rescind the current Chapter 1 and replace it in its entirety.     Anyone may make written suggestions or comments on the proposed amendment on or before December 12, 2017. Written comments should be directed to Anne Preziosi, Department of Natural Resources, Wallace State Office Building, 502 East Ninth Street, Des Moines, Iowa 50319-0034; fax (515)725-8202; or by email to anne.preziosi@dnr.iowa.gov.     A public hearing will be held on December 12, 2017, from 11 a.m. to 12 noon in the fourth floor conference rooms at the Department of Natural Resources, Wallace State Office Building, 502 East Ninth Street, Des Moines, Iowa. All comments must be received no later than 4:30 p.m. on December 12, 2017.     Any person who intends to attend the public hearing and has special requirements, such as those related to hearing or mobility impairments, should contact Anne Preziosi at (515)725-9551, or by email at anne.preziosi@dnr.iowa.gov to advise of any specific needs.     Jobs Impact Statement    After analysis and review of this rule making, the Director has determined the proposed amendment will have no impact on private sector jobs.     This amendment is intended to implement Iowa Code sections 17A.3(1)“a” and 455A.4(1)“i.”     The following amendment is proposed.

    ITEM 1.    Rescind 561—Chapter 1 and adopt the following new chapter in lieu thereof: CHAPTER 1DESCRIPTION OF ORGANIZATION

561—1.1(17A,455A) Authority and purpose.  The department was created by Iowa Code section 455A.2. The department has the primary responsibility for state parks and forests, protecting the environment, and managing fish, wildlife, and land and water resources in this state.       

561—1.2(17A,455A) Mission.  The mission of the department is to conserve and enhance Iowa’s natural resources in cooperation with individuals and organizations to improve the quality of life in Iowa and ensure a legacy for future generations.

561—1.3(17A,455A) Organization.      1.3(1) Director and deputy director.  The director is the chief administrative officer of the department. The director shall appoint a deputy director, who shall be in charge of the department in the absence of the director. The deputy director also may carry out other duties as assigned by the director. The director has rule-making authority for the general operation of the department, and the rules relating to this subject are found under agency number 561 of the Iowa Administrative Code.    1.3(2) Natural resource commission.  The natural resource commission, created by Iowa Code section 455A.5, consists of seven members appointed by the governor. The natural resource commission is responsible to establish policy and adopt rules for the programs specified in Iowa Code section 455A.5(6)“a”; hear appeals in contested cases for the programs specified in Iowa Code section 455A.5(6)“b”; approve or disapprove proposals submitted by the director for the acquisition or disposal of state lands and waters relating to state parks, recreational facilities, and wildlife programs; approve the budget request prepared by the director for the programs specified in Iowa Code section 455A.5(6)“d”; adopt, by rule, a schedule of fees for permits and for the administration of permits; and approve or disapprove proposals involving lake dredging or renovation, and the acquisition, development, and maintenance of boating facilities and recreational facilities associated with recreational boating. The substantive rules of the natural resource commission are found under agency number 571 of the Iowa Administrative Code.    1.3(3) Environmental protection commission.  The environmental protection commission, created by Iowa Code section 455A.6, consists of nine members appointed by the governor. The environmental protection commission is responsible to establish policy and adopt rules for the programs specified in Iowa Code section 455A.6(6)“a”; hear appeals in contested cases for the programs specified in Iowa Code section 455A.6(6)“b”; approve or disapprove the issuance of hazardous waste disposal site licenses under Iowa Code chapter 455B; and approve the budget request prepared by the director for the programs specified in Iowa Code section 455A.6(6)“d.” The substantive rules of the environmental protection commission are found under agency number 567 of the Iowa Administrative Code.    1.3(4) State advisory board for preserves.  The state advisory board for preserves, created by Iowa Code section 465C.2, consists of seven members, six of whom are appointed by the governor. The director shall serve as a member of the board. The state advisory board for preserves approves land or water areas for dedication as preserves, makes rules, and performs advisory functions related to the establishment and maintenance of preserves. The substantive rules of the state advisory board for preserves are found under agency number 575 of the Iowa Administrative Code.    1.3(5) Divisions and bureaus.  Pursuant to Iowa Code section 455A.7, the director may establish administrative divisions, bureaus, or other administrative entities to most effectively and efficiently carry out the department’s responsibilities.    a.    Conservation and recreation division.The director has established the conservation and recreation division, which includes the state forester, implements the resource enhancement and protection program and consists of the following bureaus:    (1)   Fisheries bureau. The fisheries bureau is responsible for managing fish, turtle, and aquatic organism populations in public waters; providing technical advice and assistance regarding diseases and aquatic invasive species avoidance and mitigation in both public and private waters; collecting creel statistics; fish hatching and stocking; conducting research studies for the purpose of setting fishing seasons and for scientific knowledge; providing fishing information to the general public and conducting other outreach education programs; and developing fishing areas and angler accesses.    (2)   Land and waters bureau. The land and waters bureau is responsible for engineering and realty services for the department’s facility and public lands and waters projects. Services include professional engineering and architectural design, surveying, construction contract administration, consultant contract management, property appraisal, land acquisition negotiation and closing, conservation easement administration, land management leases and agreements, environmental review, sovereign land construction permits, and threatened and endangered species oversight. The bureau also oversees the department’s river programs, which include water trail development and low-head dam mitigation projects.    (3)   Law enforcement bureau. The law enforcement bureau is responsible for enforcing Iowa’s natural resource conservation and outdoor recreation laws. Other activities include assisting in wildlife and fisheries scientific surveys; providing hunter, boating, and all-terrain vehicle/snowmobile safety training and other outreach education programs; and supervising Iowa’s private shooting preserves.    (4)   Parks bureau. The parks bureau manages Iowa’s state parks, recreation areas, and state forests. The bureau operates and maintains park, recreation area, and state forest infrastructure and facilities, such as multiuse trails, beaches, campgrounds, picnic areas, lodges, shelters, and cabins; protects and manages the natural resources inside such areas, including wildlife, wildlife habitat, and woodlands and timber stands; monitors concession operators; provides naturalist activities and other outreach education programs; and enforces Iowa’s natural resource conservation and outdoor recreation laws.    (5)   Wildlife bureau. The wildlife bureau is responsible for managing Iowa’s wildlife held in trust for the public; maintaining and enhancing wildlife habitat on public lands and waters; advising the public on wildlife habitat development and improvement on private lands, including the development and protection of woodlands and timber stands on private lands; and conducting research for the purpose of setting hunting and trapping seasons and to ensure biological balance of all of Iowa’s wildlife.    b.    Environmental services division.The director has established the environmental services division, which includes the state geologist and which consists of the following bureaus:     (1)   Air quality bureau. The air quality bureau is responsible for air pollution control, including air quality new source review permitting, operating permitting, emissions inventory, air quality monitoring and assessment, and air quality improvement.    (2)   Land quality bureau. The land quality bureau is responsible for providing technical assistance and oversight for management of solid waste, remediation of contaminated sites, cleanup of underground storage tanks, flood plain management, dam safety, coordination of geographic information systems, and development of sustainable environmental practices through financial and professional assistance.     (3)   Water quality bureau. The water quality bureau is responsible for national pollutant discharge elimination system permitting, wastewater engineering, water supply engineering and operations, water quality monitoring and assessment, and watershed improvement.    (4)   Field services bureau. The field services bureau conducts investigations of facilities or activities regulated by the environmental services division, including air quality, land quality, water quality, and animal feeding operations, on its own initiative or in response to citizen complaints; monitors compliance with the statutes and rules administered by the division; and provides technical and compliance assistance.

561—1.4(17A,455A) Location of offices.      1.4(1) Director’s office and central offices.  The director’s office and the central offices are located in the Wallace State Office Building, 502 East Ninth Street, Des Moines, Iowa 50319-0034. The reception area is located on the fourth floor of the Wallace State Office Building. The main customer service telephone number is (515)725-8200.    1.4(2) Conservation and recreation division offices.      a.    Fisheries bureau offices.The fisheries bureau offices are located in the central offices and in district offices located throughout the state. The locations of the district offices may be found on the department’s website.    b.    Land and waters bureau offices.The land and waters bureau offices are located in the central offices.     c.    Law enforcement bureau offices.The law enforcement bureau offices are located in the central offices and in district offices located throughout the state. The locations of the district offices may be found on the department’s website.    d.    Parks bureau offices.The parks bureau offices are located in the central offices and in parks and state forests throughout the state. The locations of the state parks, state recreation areas, and state forests may be found on the department’s website.    e.    Wildlife bureau offices.The wildlife bureau offices are located in the central offices and in district offices located throughout the state. The locations of the district offices may be found on the department’s website.    1.4(3) Environmental services division offices.  The air quality, land quality and water quality bureaus are located in the central offices. The addresses and telephone numbers of the field services bureau may be found on the department’s website.

561—1.5(17A,455A) Business hours.  The normal business hours of the department are 8 a.m. to 4:30 p.m., Monday to Friday, except holidays.

561—1.6(17A,455A) Department Internet website.  The department’s Internet home page is located at www.iowadnr.gov.       These rules are intended to implement Iowa Code section 17A.3(1)“a” and chapter 455A.
ARC 3455CProfessional Licensure Division[645]Notice of Intended Action

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

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

    Pursuant to the authority of Iowa Code section 148C.3, the Board of Physician Assistants hereby gives Notice of Intended Action to amend Chapter 327, “Practice of Physician Assistants,” Iowa Administrative Code.     The 87th General Assembly enacted 2017 Iowa Acts, chapter 60, section 1 (House File 591), that instructs the Board of Physician Assistants to establish specific procedures in rules for consulting with and sharing information with the Board of Medicine about complaints that may involve inadequate supervision by a physician.     Consideration will be given to all written comments on the proposed amendment received no later than Tuesday, December 12, 2017, addressed to Susan Reynolds, Professional Licensure Division, Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319-0075; email susan.reynolds@idph.iowa.gov.     A public hearing will be held on Tuesday, December 12, 2017, from 7:30 to 8 a.m. in the Fifth Floor Board Conference Room 526, Lucas State Office Building, 321 East 12th Street, Des Moines, Iowa, at which time persons may present their views 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 amendment.     A waiver provision is not included in this rule making because all administrative rules of the professional licensure boards in the Division of Professional Licensure are subject to the waiver provisions accorded under 645—Chapter 18.     After analysis and review of this rule making, no impact on jobs has been found.     This amendment is intended to implement Iowa Code chapters 147 and 148; chapter 148C as amended by 2017 Iowa Acts, House File 591; and chapter 272C.     The following amendment is proposed.

    ITEM 1.    Adopt the following new rule 645—327.8(148C):

645—327.8(148C) Sharing information.  When the board receives a complaint alleging that inadequate supervision by a physician assistant’s supervising physician may have occurred, the board shall forward a copy of that complaint to the board of medicine. Any response to the complaint, filed with the board by the physician assistant, will also be shared with the board of medicine.
ARC 3460CPublic Health Department[641]Notice of Intended Action

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

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

    Pursuant to the authority of Iowa Code section 135.11 and 2017 Iowa Acts, House File 393, section 24, the Department of Public Health hereby gives Notice of Intended Action to rescind Chapter 85, “Local Substitute Medical Decision-Making Boards,” Iowa Administrative Code.     2017 Iowa Acts, House File 393, section 24, repealed Iowa Code section 135.29, which established the statutory authority for local substitute medical decision-making boards. This proposed amendment will rescind Chapter 85, which established the requirements and procedures for local substitute medical decision-making boards.     Any interested person may make written comments or suggestions on the proposed amendment on or before December 12, 2017. Such written comments or suggestions should be directed to Kathy Stone, Division Director, Division of Behavioral Health, Department of Public Health, 321 East 12th Street, Des Moines, Iowa 50319. Comments may be sent by email to kathy.stone@idph.iowa.gov.     After analysis and review of this rule making, no impact on jobs has been found.     This amendment is intended to implement Iowa Code chapter 135 and 2017 Iowa Acts, House File 393, section 24.      The following amendment is proposed.

    ITEM 1.    Rescind and reserve 641—Chapter 85.
ARC 3456CUtilities Division[199]Notice of Intended Action

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

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

     Pursuant to Iowa Code sections 17A.4, 474.5, and 476.2, the Utilities Board (Board) gives notice that on November 2, 2017, the Board issued an order in Docket No. RMU-2016-0038, In re: Review of Nonutility Activities – Record Keeping and Cost Allocations Rules [199 IAC Chapter 33], “Order Commencing Rule Making,” proposing to update and streamline Chapter 33 of the Board’s rules. The order approving this Notice of Intended Action can be found on the Board’s Electronic Filing System (EFS) website, efs.iowa.gov, in Docket No. RMU-2016-0038.     To develop the proposed amendments, the Board sought early input from stakeholders. Stakeholder comments were filed by the Office of Consumer Advocate (OCA), a division of the Iowa Department of Justice, and MidAmerican Energy Company.     The amendments proposed herein are generally intended to update or eliminate rules that are outdated, redundant, or inconsistent or incompatible with statutes and other administrative rules and to clarify provisions that are unclear, vague, or ambiguous. The proposed amendments also include several substantive changes.     The proposed amendment to rule 199—33.2(476) will clarify the definition of “incidental activities” by adding a scale criterion and by replacing an unclear cost-benefit analysis for cost allocation with a practicability standard. The amendment will redefine “net book value” and introduce an objective standard in the definition of “nonproductive work time.”     The proposed amendment to rule 199—33.4(476) will clarify provisions on the allocation of costs, among other things, by replacing the terms “utilized” with “involved” and “proportional utilization” with “applicability” (as applied to assets and expenses).     The proposed amendment to rule 199—33.5(476) will clarify the description of changes for which a utility may file specific pages of a cost allocation manual instead of the entire manual. The amendment will clarify provisions requiring a utility to file a description of cost allocation methodology; requiring a utility to explain the basis for allocation of accounts and subaccounts between utility and nonutility operations; requiring a utility to explain the calculation of allocation factors used; and requiring identification of time reporting methods used by each reporting unit.     The proposed amendment to rule 199—33.6(476) will replace ambiguous language with a requirement that a utility or regulated subsidiary pay an affiliate for nonutility services at the same prices the affiliate charges to unrelated entities and will also clarify a provision on the pricing of services provided by a regulated entity to a nonutility affiliate.     The proposed amendment to rule 199—33.7(476) will clarify provisions concerning the allocation of asset costs upon transfer.     Pursuant to Iowa Code section 17A.4(1)“a” and “b,” any interested person may file a written statement of position pertaining to the proposed amendments. The statement must be filed on or before December 12, 2017. The statement should be filed electronically through the Board’s EFS. Instructions for making an electronic filing can be found on the EFS website at efs.iowa.gov. Filings shall comply with the format requirements in 199 IAC 2.2(2) and shall clearly state the author’s name and address and make specific reference to Docket No. RMU-2016-0038. Paper comments may be filed only with the approval of the Board.     No oral presentation is scheduled at this time. Pursuant to Iowa Code section 17A.4(1)“b,” an oral presentation may be requested or the Board on its own motion after reviewing the comments may determine that an oral presentation should be scheduled. Requests for oral presentation should be filed in EFS by December 12, 2017, in Docket No. RMU-2016-0038.     After analysis and review of this rule making, the Board tentatively concludes that the proposed amendments, if adopted, will not have a detrimental effect on employment in Iowa.     These amendments are intended to implement Iowa Code sections 476.2, 476.73, and 546.7.     The following amendments are proposed.

    ITEM 1.    Amend rule 199—33.2(476) as follows:

199—33.2(476) Definitions.  All terms used in this chapter shall be defined as the terms are defined in Iowa Code section 476.72 unless further defined in this chapter.        "Exception time reporting" is when an employee works predominantly in either utility or nonutility operations and only reports time worked in the less predominant area.        "Filing threshold" means that the summation of a utility’s revenues recorded in FERC accounts 415 and 417 equals 3 percent of a utility’s operating revenues recorded in FERC account 400. The revenues in these accounts will be as recorded in the annual FERC Form 1 for electric and combination utilities and FERC Form 2 for gas utilities.        "Fully distributed cost" is a costing approach that fully allocates all current and embedded costs to determine the revenue contribution of utility and nonutility services.        "Incidental activities" are activities that are so closely related to the provision of utility servicesand limited in scale that to separateit is impracticable to identify separately the costs of such services would exceed the benefitactivities.        "Net book value" means the lower of the original purchase price net of depreciation or any transfer price between affiliates.        "Nonproductive work time" is time for which an employee is paid butwhich is not productively workingspecifically attributable either to utility or to nonutility operations.        "Positive time reporting" is when productive work time is accounted for and assignedallocated to utility operations or nonutility operations.        "Study time reporting" is when periodic studies are done to determine the amount of productive work time being spent on utility versus nonutility operations.        "Utility operating revenues" are the dollar amounts recorded in FERC account 400.

    ITEM 2.    Amend subrule 33.3(2) as follows:    33.3(2) Records to be maintained.  The records maintained for each nonutility service and made available for inspection shall include, but not be limited tothe following: documents depicting accounts payable and vouchers; purchase orders; time sheets; journal entries; source and supporting documents for all transactions; a description of methods used to allocate revenues, expenses, and investments between utility and nonutility operations, including supporting detail; and copies of all filings required by other state and federal agencies.

    ITEM 3.    Amend rule 199—33.4(476) as follows:

199—33.4(476) Costing methodology.  Costs shall be allocated between utility and nonutility operations using fully distributed cost.    33.4(1) Cost causation for utility assets.  Each utility shall identify for each asset involvedutilized directly or indirectly, in whole or in part, toin the provision of nonutility services: (a) the type of asset; (b) the use of the asset; (c) the applicabilityproportional utilization of the asset tobetween utility operations,and nonutility operations, or both; and (d) the usage characteristics of the assetthat allow proper allocation.    33.4(2) Cost causation for utility expenses.  Each utility shall identify for each expense account wherein any expense related, directly or indirectly, to the provision of nonutility services is recorded: (a) the function causing the expense to be incurred; (b) the procedure used in performing the function; (c) the applicabilityproportional utilization of the function tobetween utility operations,and nonutility operations, or both; and (d) the characteristics of the cost that will allow proper assignmentallocation.    33.4(3) Time reporting.  Positive time reporting shall be used whenever possible. In situations where positive time reporting cannot be used, exception time reporting or study time reporting may be used. Nonproductive work time shall be allocated between utility and nonutility operations in proportion to the allocation of productive work time.

    ITEM 4.    Amend rule 199—33.5(476) as follows:

199—33.5(476) Cost allocation manuals.  Every rate-regulated gas or electric public utility equaling or exceeding the filing threshold in any calendar year shall file with the board a cost allocation manual on or before September 1 of the following year. If the utility has not changed its cost allocation manual since the last filing on September 1, the utility shall file a letter with the board to that effect. Refer to subrule 33.5(3) for information on updating cost allocation manuals. In the event the utility has made only minor changes to its manual regardingto reflect new accounts or new affiliates, or has modified language, the utility may file only the pages affected. The filing shall includetogether with a cover letter explaining the pages being filed.A utility excused from filing a cost allocation manual for any of the foregoing reasons shall comply with the other requirements of this rule.    33.5(1) Contents of manuals.  Each cost allocation manual must contain the following information:    a.    Nonutility activities.A list, the location, and description of all nonutility activities as defined in Iowa Code section 476.72(3).    b.    Incidental activities.A summary of incidentalactivities that are incidental to the provision of utility services and minor in sizeconducted by the utility.    c.    Resource identification.An identification of the assets and expenses involved directly or indirectly, in whole or in part, toin the provision of nonutility services as identified in subrules 33.4(1) and 33.4(2).    d.    AssignmentAllocation methodology.A description of the cost assignmentallocation methodology. This paragraph provides, including an overview, explanation, and justification of the details provided inresponse to paragraphs “e” through “h.below.    e.    AssignmentAllocation rationale.A list showing the cost assignment method for each account. The list shall show for eachA statement identifying, for each asset and expense account and subaccount identified incompliance withsubrules 33.4(1) and 33.4(2), the basis for assigningallocating costs in the accountor subaccount to utility and nonutility operations, including any allocation factor used by the utility for this purpose.    f.    Accounts and records.A description of each account and record used by the utility for financial record keeping offor nonutility services, including all subaccounts.    g.    Assignment basisAllocation factors.An explanation of each assignment basis. ThisA paragraph shall containcontaining, for each assignment basis containedallocation factor identified incompliance with paragraph “e,”a definition of the basis, an explanation of how the allocation factor is calculated, a description of each study and analysis used in developing the allocation factor, and the frequency with which each allocation factor is recalculated.    h.    Time reporting methods.An explanation of the time reporting methods used. ThisA paragraph shall indicateindicating the type of time reporting (positive, exception, or study) used for each reporting organization (e.g., executive, residential sales, and external affairs), andproviding a description of how theidentified type of time reporting is doneperformed in that reporting organization.    i.    Training.A description of the training programs used by the utility to implement and maintain its cost allocation process.    j.    Update process.A description of the procedures used by the utility to:(1) determine when an update is needed; (2) develop the update; and (3) provide the update to the board.    33.5(2) FilingAnnual filing and approval of manuals.  The following procedure shall be used for theannual filing and approval of manuals.    a.    Filing.UtilitiesA utility meeting the filing threshold requirements shall fileamanualsmanual on or before September 1 of theeach year following thea yearduring which theutility met the threshold requirement was first met.    b.    Notice.At the time of the initial filing and whenever a manual is updated, each utility shall mail or deliver a written notice to consumer advocate, local trade associations, and customers who have notified the utility in writing of their interest in the filingcost allocation manual. The notice shall state that an objection may be filed with the board within 60 days of the filing of the manual with the board. The utility shall promptly provide copies of the manual upon request.    c.    Objections.Any interested person may filewith the board an objectionwith the boardto a cost allocation manual within 60 days of the filing date.    d.    Docketing.If the board finds that reasonable grounds exist to investigate the manual, the board will docket the filing as an investigation within 90 days of the date of filing. At the time of docketing, the board will set a procedural schedule which includes a date for an oral presentation and an opportunity to file comments. If the board finds that there is no reason to investigate, the board shall issue an order stating the reasons for the board’s decision within 90 days of the date of filing.    e.    Acceptance of manuals.The board may accept, reject, or modify a utility’s manual. However, any board decision is for accounting purposes only and is not binding in any other proceeding.    33.5(3) Updating of manuals.  All affected sections and pages of a utility’s manual shall be updated and filed with the board annually or within 60 days of any of the following conditions:    a.    A new nonutility business is addedcommenced or acquired, or an existing nonutility business is droppedeliminated or divested;    b.    An affiliate relationship changes;    c.    Operations affecting nonutility businesses change sufficiently to warrant a new allocation method; or    d.    Accounting practices change.    33.5(4) Reporting requirements—accounting tables.  The reporting requirements in this subrule must be accompanied by a signed statement from an officer of the utility and an independent auditor certifying that, for the year completed, the utility has followed its manual and that the results fairly reflect the actual operations of the utility. Companies required to file costallocation manuals shall fileinclude in their annual reports and in electronic form tables showing for each account identified incompliance withsubrules 33.4(1) and 33.4(2)the following:(a) the account total; (b) the amount assignedallocated to nonutility services; (c) the amount assignedallocated to utility services; and (d) the value of the allocation factors used to assignallocate costs to utility and nonutility services.Such tables shall be accompanied by a signed statement by an officer of the utility and an independent auditor certifying that, for the year covered by the report, the utility has complied with its cost allocation manual and that the data reported fairly reflect the actual operations of the utility.

    ITEM 5.    Amend rule 199—33.6(476) as follows:

199—33.6(476) Standards for costing service transfers within a regulated subsidiary or utility.      33.6(1) Nonutility service provided to regulated subsidiary or utility.  Service shall be priced to the utility’s operationsThe utility or its regulated subsidiary shall pay for a nonutility service provided to it by an affiliate at the price actually chargedto nonaffiliates. If no such price is available, the service shall be priced at the lower of fully distributed cost, the price actually charged to affiliates, or athe market price offor comparable services.    33.6(2) Service provided by the utility to nonutility operations.  Service shall be provided atA utility that provides utility service to a nonutility affiliate shall charge such affiliate the tariffed price. If it is not a tariffed service, the service shall be priced ator, if a tariffed price is not available, shall charge the fully distributed costof the service.

    ITEM 6.    Amend rule 199—33.7(476) as follows:

199—33.7(476) Standards for costing asset transfers within a regulated subsidiary or utility.      33.7(1)   AssetIf an asset that is a direct cost of nonutility operations becomes a cost of utility operations. The, the asset shall be transferred or assignedallocated to utility operations at the lesser of net book value, the price actually charged to affiliates or nonaffiliates, or the market price of comparable assets.    33.7(2)   AssetIf an asset that is a direct cost of utility operations becomes a cost of nonutility operations. The, the asset shall be transferred or assignedallocated to the nonutility operations at the greater of net book value, the price actually charged to affiliates or nonaffiliates, or the market price of comparable assets.
ARC 3457CUtilities Division[199]Notice of Intended Action

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

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

     Pursuant to Iowa Code sections 17A.4, 474.5, and 476.2, the Utilities Board (Board) gives notice that on November 2, 2017, the Board issued an order in Docket No. RMU-2016-0039, In re: Review of Nonutility Service Rules [199 IAC Chapter 34], “Order Commencing Rule Making,” proposing to update Chapter 34 of the Board’s rules. The order approving this Notice of Intended Action can be found on the Board’s Electronic Filing System (EFS) website, efs.iowa.gov, in Docket No. RMU-2016-0039.    To determine whether to propose amendments, the Board sought early input from stakeholders. Stakeholder comments were filed by the Office of Consumer Advocate (OCA), a division of the Iowa Department of Justice, and reply comments were filed by MidAmerican Energy Company and Interstate Power and Light Company.    The amendment proposed herein would make one substantive change. The proposed amendment of rule 199—34.4(476) would amend the definition of persons eligible for use of certain sales-related utility functions, priced at the cost charged for such functions by the utility to its own affiliate or business unit engaged in defined nonutility business functions within the utility’s service territory, so as to fix the eligibility criterion at a threshold of 60 percent of gross business revenues derived from the provision of similar nonutility services and products.    Pursuant to Iowa Code section 17A.4(1)“a” and “b,” any interested person may file a written statement of position pertaining to the proposed amendment. The statement must be filed on or before December 12, 2017. The statement should be filed electronically through the Board’s EFS. Instructions for making an electronic filing can be found on the EFS website at efs.iowa.gov. Filings shall comply with the format requirements in 199 IAC 2.2(2) and shall clearly state the author’s name and address and make specific reference to Docket No. RMU-2016-0039. Paper comments may be filed only with the approval of the Board.    No oral presentation is scheduled at this time. Pursuant to Iowa Code section 17A.4(1)“b,” an oral presentation may be requested or the Board on its own motion after reviewing the comments may determine that an oral presentation should be scheduled. Requests for oral presentation should be filed in EFS by December 12, 2017, in Docket No. RMU-2016-0039.    After analysis and review of this rule making, the Board tentatively concludes that the proposed amendment, if adopted, will not have a detrimental effect on employment in Iowa.    This amendment is intended to implement Iowa Code sections 476.2, 476.73, and 546.7.    The following amendment is proposed.

    ITEM 1.    Amend rule 199—34.4(476) as follows:

199—34.4(476) Engaged primarily in providing the same competitive nonutility services in the area—defined.  “A person is engaged primarily in providing the same competitive nonutility services in the area” when the person on a full-time,an ongoing basis sells or leases equipment or products or offers services, accounting for at least 60 percent of the person’s gross business revenue, which are functionally interchangeable and considered similar by the public with the nonutility service provided by a public utility in the same identifiable geographic area where the public utility provides utility service.
ARC 3463CEconomic Development Authority[261]Adopted and Filed

    Pursuant to the authority of Iowa Code sections 15.106A and 15.108(6), the Iowa Economic Development Authority hereby amends Chapter 7, “Iowa Jobs Training Program,” Iowa Administrative Code.     The amendments to Chapter 7 incorporate changes made in statute over several legislative sessions and changes desired by community college stakeholders and the Economic Development Authority. These amendments are made to ensure consistent use of language and terms and that the allocation of funds conforms to Iowa Code chapter 260C; update program definitions, maximum award amounts, application scoring criteria where applicable, references to 261—Chapter 195, “Public Records and Fair Information Practices,” and forms used by community colleges; incorporate references to the 260F data system; and strike references to entrepreneurial training projects, job retention projects, and projects funded through the Grow Iowa Values Fund.     Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 3268C on August 30, 2017. The Authority did not receive any public comments on the noticed rule making.    The Authority has made two changes since the publication of the Notice. The first change is in Item 1. Item 1 adopts a number of new definitions, including a definition for “program services.” In this rule making, “training-related travel and meals” has been added to the definition of “program services.” “Training-related travel and meals” is included in subrule 7.9(2), which identifies eligible costs for program funding, but that list of eligible costs for program funding is now stricken and replaced by the defined term “program services” to avoid duplication of the defined program services and to simplify the classification of eligible costs. The second change is in Item 13. The change in subrule 7.20(7) strikes language that allowed the Authority to refer an application to another training program. The Authority is making this change because the Authority no longer refers applications to another training program.     The Economic Development Authority Board adopted these amendments on October 20, 2017.     After analysis and review of this rule making, the Authority finds that providing financial assistance for projects under the Iowa Jobs Training Program will have a positive effect on job creation and growth.    These amendments are intended to implement Iowa Code chapter 260F.     These amendments will become effective December 27, 2017.     The following amendments are adopted.     

    ITEM 1.    Adopt the following new definitions of “Agreement,” “Authority,” “Certification,” “Date of commencement of the project,” “Eligible business,” “Employee,” “Jobs training program,” “Participating business,” “Program services,” and “Project”, in rule 261—7.3(260F):        "Agreement" means the agreement between a business and a community college concerning a project.        "Authority" means the economic development authority created in Iowa Code section 15.105.        "Certification" means the community college and business agree that the information contained in the application is accurate. The certification also gives the authority permission to research the history of the business and perform other related activities necessary for the evaluation of the application.        "Date of commencement of the project" means the date of the preliminary agreement or the date an application for assistance is received by the authority.        "Eligible business" "business" means a business training employees which is engaged in interstate or intrastate commerce for the purpose of manufacturing, processing, or assembling products, warehousing or wholesaling products, conducting research and development, or providing services in interstate commerce, but excludes retail, health, or professional services and which meets the other criteria established by the authority. A business engaged in the provision of services must have customers outside of Iowa to be eligible. The business site to receive training must be located in Iowa. “Eligible business” does not include a business whose training costs can be economically funded under Iowa Code chapter 260E, a business which closes or substantially reduces its workforce by more than 20 percent at existing operations in order to relocate substantially the same operation to another area of the state, or a business which is involved in a strike, lockout, or other labor dispute in Iowa. If a business closes or substantially reduces its workforce by more than 20 percent at existing operations in order to relocate substantially the same operation to another area of the state, then the business is ineligible for 36 consecutive months at any of its Iowa sites from the date the new establishment opens.        "Employee" means a person currently employed by a business who is to be trained. An employee for whom training is planned must hold a current position intended by the employer to exist on an ongoing basis with no planned termination date. Training is available only to an employee who is hired by the business, is currently employed by the business, and for whom the business pays withholding tax. However, “employee” does not include a person with executive responsibilities, a replacement worker who is hired as a result of a strike, lockout, or other labor dispute in Iowa, or an employee hired as a temporary worker.         "Jobs training program" "program" means the project or projects established by a community college for the training of employees.        "Participating business" means a business training employees which enters into an agreement with the community college.        "Program services" includes but is not limited to the following:
  1. Training of employees;
  2. Adult basic education and job-related instruction;
  3. Career and technical skill-assessment services and testing;
  4. Training facilities, equipment, materials, and supplies;
  5. Administrative expenses for the jobs training program;
  6. Subcontracted services with institutions governed by the state board of regents, private colleges or universities, or other federal, state, or local agencies;
  7. Contracted or professional services;
  8. Training-related travel and meals.
        "Project" means a training arrangement which is the subject of an agreement entered into between a community college and an eligible business to provide program services. “Project” also means an authority-sponsored training arrangement which is sponsored by the authority and administered under Iowa Code sections 260F.6A and 260F.6B.

    ITEM 2.    Rescind the definitions of “Department,” “Lead business,” “Prospective employee,” and “Supplier network training” in rule 261—7.3(260F).

    ITEM 3.    Amend rule 261—7.4(260F) as follows:

261—7.4(260F) Program funding.      7.4(1)   Program funds consist of any moneys allocated by the departmentauthority and the board for the purpose of this program, all repayments of loans or other awards or recaptures of awards, and earned interest, including interest earned on program funds held by the community colleges.    7.4(2)   A community college 260F account is established in the departmentauthority. The distributionallocation of funds in this account, to the community colleges, shall be based upon the percentages prescribed in this rule, unless the general assembly stipulates otherwise in the appropriation processdetermined using the distribution formula established in Iowa Code section 260C.18C.    7.4(3)   Sixty-seven point five percent of the funds from the community college 260F account shall be distributed to each community college using the distribution formula established in Iowa Code section 260C.18.    7.4(4)   Twenty-five percent of the funds from the community college 260F account shall be distributed to community colleges for high technology apprenticeship programs based upon related eligible contact hours under the programs administered during the prior fiscal year as determined by the department of education. Contact hours generated in on-the-job training experiences are not eligible for consideration for apprenticeship funding.    7.4(5)   Seven point five percent of the funds from the community college 260F account shall be held by the department to fund community college-sponsored business network training projects and shall be available on a first-come, first-served basis, based on the date an application is received by the department.    7.(6) 7.4(3)   Any unexpended or uncommitted funds remaining in the community college 260F account on May 1 of the fiscal year shall revert to a general account to be available on a first-come, first-served basis, based on the date an application is received by the departmentauthority.    7.4(7)   Contingent on the availability of program funds, a department-sponsored business network training project account consisting of funds allocated by the department and the board is established in the department to fund department-sponsored business network training projects.    7.4(8)   Contingent on the availability of program funds, a department-sponsored high technology apprenticeship project account consisting of funds allocated by the department board is established in the department to fund department-sponsored high technology apprenticeship training projects.

    ITEM 4.    Amend subrules 7.5(1) and 7.5(2) as follows:    7 7.5 5(1)   The maximum award which may be approved for each project at a business site is $25,000$50,000 in a fiscal year.    7 7.5 5(2)   A business site may be approved for multiple projects, but the total of the awards for two or more projects shall not exceed $50,000$100,000 within a three-year period. The three-year period shall begin with the departmentauthority approval date of the first project approved within the three-year period.

    ITEM 5.    Strike “department” wherever it appears in subrules 7.6(3), 7.7(2) and 7.10(3), rule 261—7.19(260F), subrules 7.21(2), 7.21(3), 7.24(2), 7.24(4) to 7.24(6) and 7.24(8), rule 261—7.25(260F), subrules 7.26(2), 7.26(4) to 7.26(6) and 7.26(8), rule 261—7.27(260F), subrules 7.30(6) and 7.32(4) to 7.32(6), and rule 261—7.33(260F) and insert “authority” in lieu thereof as the context requires.

    ITEM 6.    Amend rule 261—7.9(260F) as follows:

261—7.9(260F) Use of program funds.      7.9(1)   The following costs associated with the administration of any project are eligible for program funding:    a.    Community college administrative costs associated with the development and operation of a project, not to exceed the rate charged for a 260E project15 percent of the project cost.    b.    Legal fees.    7.9(2)   The following costs associated with the provision ofprogram services for any project are eligible for program funding:.    a.    Career and technical skill assessment testing.    b.    Adult basic education.    c.    Job-related training.    d.    Cost of company, college, or contracted trainer or training services.    e.    Training-related materials, equipment, software, and supplies.    f.    Lease or rental of training facilities.    g.    Training-related travel and meals.    h.    Subcontracted services.    i.    Contracted or professional services.    j.    Pre-employment training for prospective employees.    7.9(3)   Reimbursement of employee wages whilethe employee is in training is not allowed.    7.9(4)   Production equipment, when used for training, may be an allowable cost. The cost of equipment used in training but subsequently used in production shall be prorated, as identified in 261—8.12(15,76GA,ch1180), with the percentage of “used in production” cost paid by the business.    7.9(5)   A community college may use funds awarded to a project to cover reasonable administrative costs and legal fees for that project when such costs are not covered by application fees or interest earnings. This includes administrative and legal costs incurred for a project that is canceled after funds are released to the community college but before being released to the business.    7.9(6)   A community college may not use funds from one project’s program award to cover any costs incurred by another project.

    ITEM 7.    Rescind subrule 7.10(2).

    ITEM 8.    Renumber subrule 7.10(3) as 7.10(2).

    ITEM 9.    Rescind and reserve rule 261—7.11(260F).

    ITEM 10.    Amend rule 261—7.12(260F) as follows:

261—7.12(260F) Separate account.  The community college shall establish a separate program account in order to document all program transactions and from which repayments for loans shall be made to the departmentauthority.

    ITEM 11.    Rescind and reserve rules 261—7.13(260F) to 261—7.17(260F).

    ITEM 12.    Amend rule 261—7.18(260F) as follows:

261—7.18(260F) AgreementLetter of intent.      7.18(1)   A letter of intent allows training to start on a specific date.    7.(1) 7.18(2)   Acommunity college and a business,or apprenticeship sponsor or entrepreneurial training provider may, but are not required to, enter into an agreementa letter of intent.    7.(2) 7.18(3)   Acommunity college and a business or entrepreneurial training provider which enter into an agreementa letter of intent shall use AgreementLetter of Intent, Form 260F-2. A college and an apprenticeship sponsor which enter into an agreementa letter of intent shall use Apprenticeship AgreementLetter of Intent, Form 260F-2A.    7.(3) 7.18(4)   An agreementA letter of intent shall remain in effect for a maximum of one calendar year from the date of the agreementletter. An agreementA letter of intent for one project does not establish the commencement date for subsequent projects.

    ITEM 13.    Amend rule 261—7.20(260F) as follows:

261—7.20(260F) Application process.      7.20(1)   An application for training assistance must be submitted to the departmentauthority by a community college on behalf of a business or apprenticeship sponsor. An application shall not be accepted by the departmentauthority if submitted directly by a business or apprenticeship sponsor.    7.20(2)   Community colleges shall use Application for Assistance, Form 260F-1,available in the 260F data system, to apply for 260F business assistance. Apprenticeship Application for Assistance, Form 260F-1D, shall be used for apprenticeship assistance.    7.20(3)   Required contents of the application will be described in the application package.    7.20(4)   Applications must be submittedvia the 260F data system to Iowa Department of Economic Development, Division of Administration, Workforce Development Programs, 200 East Grand Avenue, Des Moines, Iowa 50309. Required forms and instructions are available at this addressthe authority.    7.20(5)   The departmentauthority will score applications according to the criteria specified in 261—7.21(260F).    7.20(6)   To be funded, an application must receive a minimum score of 65 out of a possible 100 points and meet all other eligibility criteria specified elsewhere in these rules.    7.20(7)   The departmentauthority may approve, reject,or defer, or refer an application to another training program.    7.20(8)   The departmentauthority reserves the right to require additional information from the business or apprenticeship sponsor.    7.20(9)   Application approval shall be contingent on the availability of funds. The departmentauthority shall reject or defer an application if funds are not available.

    ITEM 14.    Amend subrule 7.21(1) as follows:    7.21(1)   The criteria used for scoring 260F businessor consortium applications and the points for each criteria are as follows:    a.    More than 50 percent of the business’s sales are out of state, 5 points.    b.    More than 50 percent of the business’s operating expenditures are spent within the state of Iowa, 5 points.    c.    The number of the business’s in-state competitors is low, 5 points.    d.    The business’s products have increased or will increase the business’s customer base in Iowa, 5 points.    e.    The business’s products have resulted in or will result in a decrease in the importation of foreign-made goods into the USA, 5 points.    f.    The majority of the business’s suppliers are located in Iowa, 5 points.    g.    The business’s current products help diversify Iowa’s economy, 5 points.    h.    The business indicates the potential for future growth and product diversification, 5 points.    i.    The business’s average wage rate for all employees is above the average wage rate in the county or region where the business is located, 5 points. “Region” is the service delivery area as defined in Iowa Code section 84B.2.    j.    The business provides employee health insurance and other benefits, 5 points.    k.    The majority of the business’s employees are employed full-time, 5 points.    l.    New skills which employees acquire from the training program will increase the marketability of their skills, 10 points.    m.    The application has established the business’s need for training, 10 points.    n.    The 260F cost of training per employee does not exceed comparable costs for training at a state of Iowa community college or university, 5 points.    o.    The business’s contribution to the training project is above the minimum program match requirement, 5 points.    p.    The application documents that all considerations, including funding required to begin the training project, have been addressed, 5 points.q.    The application establishes a positive training impact on the business’s ability to survive, 10 points.    a.    The business has a plan for future potential growth and product diversification. 10 points.    b.    The majority of the business’s employees are permanent full-time. 10 points.    c.    Average wages for employees are at or above the laborshed wages for the business’s location. 10 points.     d.    The business provides a cash match greater than 25 percent (minimum). 10 points.    e.    The application explains why the business needs the training identified in the training plan. 10 points.    f.    The application explains how the training will contribute to the continued existence of the business. 10 points.    g.    The application identifies which skills the employees will acquire from the training and how the skills will increase the employees’ marketability. 5 points.     h.    The average cost of training per employee is comparable to the cost of training at Iowa community colleges or universities. 5 points.    i.    The application documents that all considerations, including funding required to begin the training project, have been addressed. 5 points.    j.    The employer provides health insurance and at least one other employee benefit. 5 points.    k.    Employee skills, knowledge, and abilities will be improved as a result of this training. 10 points.     l.    The business’s competitive stance will be improved as a result of this training. 10 points. To be funded, applications must receive a minimum score of 65 out of 100 points and meet all other applicable eligibility criteria.

    ITEM 15.    Rescind and reserve subrule 7.21(4).

    ITEM 16.    Amend rule 261—7.22(260F) as follows:

261—7.22(260F) Training contractagreement.      7.22(1)   A community college shall enter into a training contractagreement with the business(es), lead business, lead organization, apprenticeship sponsor(s), or lead apprenticeship sponsor within 90 days of written notice of application approval from the departmentauthority, using Training ContractAgreement, Form 260F-4, for 260F business-driven projects and using Form 260F-4D for apprenticeship projects.    7.22(2)   A business or apprenticeship sponsor shall not modify any provision of the contractagreement without the written approval of the community college.    7.22(3)   The community college, with the written consent of the business or apprenticeship sponsor, has the authority to modify all provisions of the contractagreement except for 260F business, business network and consortium project modifications which result in a reduction of the number of employees to be trained or which significantly change the training program.    7.22(4)   The community college and the business or apprenticeship sponsor are authorized to change the ending date of training, training provider, or other minor modifications to the training program. A signed copy of the modification must be sent to the department.All modifications must be uploaded to the 260F data system prior to the ending date of training. If the modification authorizes a change of the ending date of training, the modification must be uploaded to the 260F data system prior to the original ending date of training. For example, if a training agreement specifies an ending date of training of December 31, 2018, and a community college and business agree to extend the ending date of training to December 31, 2019, then the modification must be uploaded prior to December 31, 2018.    7.22(5)   Modifications of 260F business, business network and consortium projects which result in a reduction of the number of employees to be trained or change the training program content must be approved by the departmentauthority, community college, and business.    7.22(6)   The contractagreement shall not be modified in any way that would result in a violation of the ActIowa Code chapter 260F.    7.22(7)   Lead businesses, lead apprenticeship sponsors and lead organizations that choose to be the only signatory on the training contract for a department-sponsoredan authority-sponsored business network, community college-sponsored business network, department-sponsoredauthority-sponsored apprenticeship or community college-sponsored apprenticeship project shall be responsible for all default and reporting requirements on behalf of the other businesses or apprenticeship sponsors participating in the project.

    ITEM 17.    Amend rule 261—7.23(260F) as follows:

261—7.23(260F) Special requirements for community college consortium projects.      7.23(1)   The community college shall submit Consortium Application for Assistance, Form 260F-1A available on the 260F data system, to the departmentauthority for project approval.    7.23(2)   The community college shall enter into a training contractagreement with the consortium within 90 days of written notice of application approval from the departmentauthority, using Consortium Training ContractAgreement, Form 260F-4A.    7.23(3)   All default provisions specified in 261—7.30(260F) shall apply to consortium projects.    7.23(4)   In the event of a default, a financial penalty will be assigned by the departmentauthority to the consortium business or businesses identified by the community college as being responsible for the default.    7.23(5)   Each business that participates in the consortium shall complete a Final Performance Report, Form 260F-5, at the completion of training as a condition of the loan’s being forgiven.

    ITEM 18.    Amend rule 261—7.24(260F), introductory paragraph, as follows:

261—7.24(260F) Special requirements for community college-sponsored business network projects.  The community colleges and the authority are authorized to fund business network training projects which include five or more businesses and are located in two or more community college districts. A business network training project must have a designated organization or lead business to serve as the administrative entity that will coordinate the training program. The businesses must have common training needs and develop a plan to meet those needs.

    ITEM 19.    Amend subrule 7.24(10) as follows:    7.24(10)   In the case of business network training assistance, which takes the form of supplier network training as defined in 261—7.3(260F), the departmentauthority shall make a good faith effort to determine the probability that the proposed project will cause the displacement of employees of existing Iowa businesses. Any business network training project which takes the form of supplier network training and would have the effect of displacing employees of existing Iowa end-product manufacturers shall not be approved.

    ITEM 20.    Amend rule 261—7.26(260F), introductory paragraph, as follows:

261—7.26(260F) Special requirements for community college-sponsored high technology apprenticeship projects.  The community colleges and the authority are authorized to fund high technology apprenticeship programs which comply with the requirements specified in Iowa Code section 260C.44 and which may include both new and statewide apprenticeship programs. Notwithstanding the provisions of Iowa Code section 260F.6(2), relating to maximum award amounts, moneys allocated to the community colleges with high technology apprenticeship programs shall be distributed to the community colleges based upon contact hours under the programs administered during the prior fiscal year as determined by the department of education.

    ITEM 21.    Rescind and reserve rules 261—7.28(260F) and 261—7.29(260F).

    ITEM 22.    Amend subrules 7.30(1) and 7.30(2) as follows:    7 7.30 30(1)   A business or apprenticeship sponsor fails to complete the training project within the agreed period of time as specified in the training contractagreement. Such business or apprenticeship sponsor shall be required to repay 20 percent of total project funds expended by the community college and the business.    7 7.30 30(2)   A business or apprenticeship sponsor fails to train the agreed number of employees as specified in the training contractagreement. Such business or apprenticeship sponsor shall be required to repay a proportionate amount of total project funds expended by the community college and the business or apprenticeship sponsor. The proportion shall be based on the number of employees not trained compared to the number of employees to have been trained.

    ITEM 23.    Amend rule 261—7.31(260F) as follows:

261—7.31(260F) Options and procedures on default.      7.31(1)   The community college shall notify the department within five working days, using Notice of Possible Default, Form 260F-6,authority whenever the community college determines that an event of default has occurred or is likely to occur.    7.31(2)   The community college shall document its efforts to reconcile the condition(s) responsible for the default and shall provide the departmentauthority with copies of all related correspondence and documents of the community college and the business or apprenticeship sponsor.    7.31(3)   The community college shall notify the department, using Declaration of Default, Form 260F-7,authority when it has determined that an event of default cannot be cured.    7.31(4)   When notice of failure to cure the default is received from the community college, the departmentauthority shall communicate with the business or apprenticeship sponsor, in writing, in an attempt to resolve the default.    7.31(5)   When the department’sauthority’s efforts to reconcile are successful, the departmentauthority shall notify the community college, in writing, to continue project operations. Continuation of project operations may be subject to new conditions imposed by the departmentauthority as part of the reconciliation.    7.31(6)   When the department’sauthority’s efforts to reconcile are unsuccessful and upon the department’sauthority’s request, the community college shall assign the agreement to the departmentauthority for appropriate proceedings at which time the departmentauthority shall institute collection procedures or notify the attorney general to initiate appropriate legal actions.    7.31(7)   When a community college assigns an agreement to the departmentauthority for a project declared to be in default, the community college shall return all remaining 260F funds to the departmentauthority within 45 days of assignment.

    ITEM 24.    Amend subrules 7.32(1) and 7.32(2) as follows:    7 7.32 32(1)   When a community college determines that a business or apprenticeship sponsor is in default, and the default has not been cured within the time period stated in the contract, the schoolcommunity college is authorized to withhold training funds and payments to the business or apprenticeship sponsor, without notice to the business or apprenticeship sponsor.    7 7.32 32(2)   The attorney general may take whatever action at law or in equity as necessary and desirable to satisfy the default, including pursuit of a tax sale of the employer’s business property as provided for under Iowa Code section 260F.3(6).

    ITEM 25.    Amend rule 261—7.34(260F) as follows:

261—7.34(260F) Open records.  Information submitted to the departmentauthority is subject to Iowa Code chapter 22, the public records law. Applications for training funds submitted to the departmentauthority are available for public examination. InformationIf a business provides information which the business believes contains trade secrets recognized and protected by such asas such by law, or the release of which would give an advantage to competitors and serves no public purpose or which meets other provisions for confidential treatment as authorized in Iowa Code section 22.7,and establishes that such information is subject to confidential treatment under Iowa Code section 22.7 or as otherwise provided for by law, then such information shall be kept confidential. The department has adopted, with certain exceptions described in 261—Chapter 100, Uniform Rules on Agency Procedure, relating to public records and fair information practices. The uniform rules are printed in the first Volume of the Iowa Administrative Code. Uniform rule X.5Rule 261—195.5(17A,22) describes how a person may request a record to be treated as confidential and withheld from public examination. Businesses requesting confidential treatment of certain information submitted to the departmentauthority shall follow the procedures described in the uniform rule261—195.5(17A,22). The departmentauthority will process such requests as outlined in uniform rule X.5 and 261—Chapter 100rule 261—195.5(17A,22).

    ITEM 26.    Amend rule 261—7.35(260F) as follows:

261—7.35(260F) Required forms.  Use of the following forms by theThe community college is requiredto complete and upload the following forms, as applicable, within the 260F data system:
  1. GeneralApplication for Assistance, Form 260F-1;
  2. Consortium Application for Assistance, Form 260F-1A;
  3. Business Network Application for Assistance (Community College), Form 260F-1B;
  4. Business Network Application for Assistance (DepartmentAuthority), Form 260F-1C;
  5. Apprenticeship Application for Assistance (Community College), Form 260F-1D;
  6. Apprenticeship Application for Assistance (DepartmentAuthority), Form 260F-1E;
  7. AgreementLetter of Intent, Form 260F-2;
  8. Apprenticeship AgreementLetter of Intent, Form 260F-2A;
  9. Request for Release of Funds, Form 260F-3;
  10. Training ContractAgreement, Form 260F-4;
  11. Consortium Training ContractAgreement, Form 260F-4A;
  12. Business Network Training ContractAgreement (Community College), Form 260F-4B;
  13. Apprenticeship Training ContractAgreement (Community College), Form 260F-4D;
  14. Business Network Training ContractAgreement (DepartmentAuthority), Form 260F-4C;
  15. Apprenticeship Training ContractAgreement (DepartmentAuthority), Form 260F-4E;
  16. Performance Report, Form 260F-5;
  17. Apprenticeship Performance Report, Form 260F-5A;
  18. 18Notice of Possible Default, Form 260F-6;
  19. 19Declaration of Default, Form 260F-7.;
  20. College and Business Certification, 260F-8;
  21. Environmental Quality Form, to include a Solid Waste Plan and Hazardous Waste Plan (if applicable), Form 260F-9.

    ITEM 27.    Amend 261—Chapter 7, implementation sentence, as follows:       These rules are intended to implement 2003 Iowa Acts, First Extraordinary Session, House File 692, and Iowa Code chapter 260F as amended by 2003 Iowa Acts, First Extraordinary Session, House File 683Iowa Code chapter 260F.    [Filed 10/30/17, effective 12/27/17][Published 11/22/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 11/22/17.
ARC 3464CMedicine Board[653]Adopted and Filed

    Pursuant to the authority of Iowa Code section 147.76, the Board of Medicine hereby amends Chapter 8, “Fees,” Iowa Administrative Code.    The purpose of Chapter 8 is to establish fees for application and licensure of professions regulated under Iowa Code chapters 148 and 148E, for public records and for services performed by the Board. The amendments recognize the fees associated with licensure through the new Interstate Medical Licensure Compact, add the fee for reinstatement of an acupuncture license, and update language throughout Chapter 8.    The Board approved a Notice of Intended Action on July 21, 2017, and that Notice was published in the Iowa Administrative Bulletin on August 16, 2017, as ARC 3258C. A public hearing was held on September 5, 2017. The Board received no public comment on the amendments published under Notice, and the Board made no changes to the amendments as published under Notice.     The Board adopted these amendments on October 27, 2017.    After analysis and review of this rule making, no impact on jobs has been found.    These amendments are intended to implement Iowa Code chapters 147, 148, 148E and 272C.    These amendments will become effective December 27, 2017.    The following amendments are adopted.

    ITEM 1.    Amend rule 653—8.1(147,148,272C) as follows:

653—8.1(147,148,272C) Definitions.          "Board" means the Iowa board of medicine.        "Online transaction fee" means a fee of $7 assessed by the board for completing an online purchase. The online transaction fee is in addition to the actual service provided.        "Service charge" means the amount charged for making a service available on line and is in addition to the actual fee for a service itself. For example, one who renews a license on line will pay the license renewal fee and a service charge.

    ITEM 2.    Adopt the following new paragraph 8.2(2)"f":    f.    Fee for reinstatement of an acupuncture license, $400.

    ITEM 3.    Rescind rule 653—8.3(147,148,272C) and adopt the following new rule in lieu thereof:

653—8.3(147,148,272C) Interstate medical licensure compact (IMLC).   Provisions for the interstate medical licensure compact are located in 653—Chapter 9, “Permanent and Administrative Medicine Physician Licensure.” The following fees shall apply to the compact.    8.3(1) Service fee for an application for an IMLC letter of qualification.  The service fee, described in Chapter 3 of the rules of the interstate medical licensure compact commission, is paid directly to the interstate medical licensure compact commission. The interstate commission retains a portion of this service fee and remits a portion of this service fee to the board. The service fee paid to the interstate commission includes the $45 fee for the evaluation of the fingerprint packet and the criminal history background checks by the Iowa division of criminal investigation (DCI) and the Federal Bureau of Investigation (FBI).    8.3(2) Licensure fee for an Iowa license issued through the IMLC.  The licensure fee is paid directly to the interstate medical licensure compact commission. An applicant shall pay a licensure fee of $450 plus a service fee retained by the interstate commission.     8.3(3) Licensure fee for renewal of active Iowa license issued through the IMLC.  The licensure fee is paid directly to the interstate medical licensure compact commission. The licensee shall pay the licensure fee described in 8.4(1)“c”(1) plus a service fee retained by the interstate commission. If the license is not renewed prior to expiration, the licensee will incur a penalty as described in 8.4(1)“d.”

    ITEM 4.    Amend rule 653—8.4(147,148,272C), catchwords, as follows:

653—8.4(147,148,272C) Application and licensure fees to practice medicine and surgery or osteopathic medicine and surgeryor administrative medicine.  

    ITEM 5.    Amend paragraph 8.5(1)"d" as follows:    d.    The board shall provide an automated telephone or electronic verification service whereby users can input the licensee’s license number or social security number to learn the licensee’s current licensure status. There is no fee for this service.The board shall provide a license number for an individual caller to use in the automated telephone or electronic verification service. Businesses that utilize verifications will be required to utilize the automated telephone or electronic verification service or the alternative outlined in 8.5(1)“c.”

    ITEM 6.    Amend rule 653—8.7(147,148,272C) as follows:

653—8.7(147,148,272C) Licensee data list.  A data list of all physicians and acupuncturists includes the following information about each licensee: full name, year of birth, mailingwork address, businessand telephone number(or other contact information on file if licensee’s work address and telephone number are not available), Iowa county (if applicable), medical school (if applicable), year of graduation from medical school (if applicable), two medical specialties (if available), license issue date, license expiration date, license number, license type, license status, and an indicator of whether the board has taken any public action on the license. There is no fee for an electronic file of this list. A printed copy of the data list is available at the board’s office at fees described in rule 653—8.6(147,148,272C). Payment made to the Iowa Board of Medicine shall be received in the board office prior to the release of a printed copy of the list.

    ITEM 7.    Amend rule 653—8.9(147,148,272C) as follows:

653—8.9(147,148,272C) Copies of the laws and rules.  Electronic copies of laws and rules pertaining to the practice of medicine or acupuncture are available on the board’s Web site, www.medicalboard.iowa.gov,at www.legis.iowa.gov at no cost. Printed copies of these laws and rules are available at the board’s office at fees described in rule 653—8.6(147,148,272C).
    [Filed 10/30/17, effective 12/27/17][Published 11/22/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 11/22/17.
ARC 3465CNursing Board[655]Adopted and Filed

    Pursuant to the authority of Iowa Code sections 17A.3 and 147.76, the Board of Nursing hereby amends Chapter 3, “Licensure to Practice—Registered Nurse/Licensed Practical Nurse,” Iowa Administrative Code.    The amendment to Chapter 3 changes the requirement for reactivating an inactive license by requiring that proof of 36 contact hours instead of 12 contact hours of continuing education (CE) be provided.    Notice of Intended Action proposing to amend Chapter 3 and adopt a new Chapter 5 was published in the Iowa Administrative Bulletin as ARC 3046C on May 10, 2017, and a public hearing was held on May 30, 2017, at the Board office. Comments were received that included positive support for the rule making as well as a request for further clarification and explanation relating to the amendments. As a result, on July 19, 2017, the Board of Nursing adopted new Chapter 5, which was identical to that published in Item 3 in ARC 3046C, and the Adopted and Filed rule making was published on September 13, 2017, as ARC 3311C. The proposed amendments to Chapter 3 required additional research, and the amendment to Chapter 3 described above was adopted by the Board on October 4, 2017. The proposed amendment to rule 655—3.5(17A,147,152,272C), which would have required licensees (endorsements, reactivations, foreign-educated, and requests for temporary) to provide proof of active licensure in any jurisdiction within the previous five years of the date of application and would have added the requirement of a nurse refresher course for licensees who have not been actively licensed in any jurisdiction within the previous five years, was not adopted. In addition, the implementation sentence in rule 655—3.7(17A,147,152,272C) is now amended.    After analysis and review of this rule making, no fiscal impact has been found.    After analysis and review of this rule making, no impact on jobs has been found.    This amendment is intended to implement Iowa Code chapters 147, 152, and 272C.    This amendment will become effective on January 1, 2018.    The following amendment is adopted.

    ITEM 1.    Amend rule 655—3.7(17A,147,152,272C) as follows:

655—3.7(17A,147,152,272C) License cycle.      3.7(1) Name and address changes.  Written notification to the board of name and address changes is required within 30 days of the event. Licensure documents are mailed to the licensee at the address on file in the board office. There is no fee for a change of name or address in board records.    3.7(2) New licenses.  The board shall issue licenses by endorsement and examination for a 24- to 36-month period. When the license is renewed, it will be placed on a three-year renewal cycle. Expiration shall be on the fifteenth day of the birth month.    3.7(3) Renewal.  The licensee may renew the license beginning 60 days prior to license expiration. Renewal is available online at the board’s Web site or by mail upon request. When the licensee has satisfactorily completed the requirements for renewal, a wallet card shall be mailed to the licensee.    a.    The licensee shall:    (1)   Attest that Iowa is the primary state of residence as outlined in rule 655—16.2(152E) or that the primary state of residence is a noncompact state. The board may request evidence of residency.    (2)   Submit the renewal application and the renewal fee as specified in rule 655—3.1(17A,147,152, 272C).    (3)   Meet the continuing education requirement as set forth in 655—Chapter 5, prior to license renewal.    (4)   Complete the required mandatory reporter training set forth in paragraph 3.7(3)“b.”    b.    Mandatory reporter training.    (1)   The course shall be a curriculum approved by the Iowa department of public health.    (2)   A licensee who regularly examines, attends, counsels or treats children in Iowa shall indicate on the renewal application completion of two hours of training in child abuse identification and reporting in the previous five years or condition(s) for rule suspension as identified in subparagraph 3.7(3)“b”(6).    (3)   A licensee who regularly examines, attends, counsels or treats adults in Iowa shall indicate on the renewal application completion of two hours of training in dependent adult abuse identification and reporting in the previous five years or condition(s) for rule suspension as identified in subparagraph 3.7(3)“b”(6).    (4)   A licensee who regularly examines, attends, counsels or treats both adults and children in Iowa shall indicate on the renewal application completion of training on abuse identification and reporting in dependent adults and children or condition(s) for rule suspension as identified in subparagraph 3.7(3)“b”(6). Training may be completed through separate courses as identified in subparagraphs 3.7(3)“b”(2) and (3) or in one combined two-hour course that includes curricula for identifying and reporting child abuse and dependent adult abuse.    (5)   The licensee shall maintain written documentation for five years after mandatory training as identified in subparagraphs 3.7(3)“b”(2) to (4), including program date(s), content, duration, and proof of participation.    (6)   The requirement for mandatory training for identifying and reporting child and dependent adult abuse shall be suspended if the board determines that suspension is in the public interest or that a person at the time of license renewal:
  1. Is engaged in active duty in the military service of this state or the United States.
  2. Holds a current waiver by the board based on evidence of significant hardship in complying with training requirements, including waiver of continuing education requirements or extension of time in which to fulfill requirements due to a physical or mental disability or illness as identified in 655—Chapter 5 .
    (7)   The board may select licensees for audit of compliance with the requirements in subparagraphs 3.7(3)“b”(1) to (6).
    3.7(4) Late renewal.  The license shall become late when the license has not been renewed by the expiration date on the wallet card. The licensee shall be assessed a late fee as specified in rule 655—3.1(17A,147,152,272C).To renew a late license, the licensee shall complete the renewal requirements and submit the late fee before the fifteenth day of the month following the expiration date on the wallet card.    3.7(5) Inactive status.  The license shall become inactive when the license has not been renewed by the fifteenth day of the month following the expiration date on the wallet card or the board office has been notified by another compact state that a licensee has declared a new primary state. Pursuant to 655—subrule 16.2(8), the former home state license shall no longer be valid upon the issuance of a new home state license.    a.    If the inactive license is not reactivated, it shall remain inactive.    b.    If the licensee resides in Iowa or a noncompact state, the licensee shall not practice nursing in Iowa until the license is reactivated to active status. If the licensee is identified as practicing nursing with an inactive license, disciplinary proceedings shall be initiated.    c.    The licensee is not required to obtain continuing education credit or pay fees while the license is inactive.    d.    To reactivate the license, the licensee shall complete the reactivation requirements.    (1)   The licensee shall be provided an application, a continuing education report form, two fingerprint cards, a waiver form, and statement of the fees. The reactivation fee and criminal history background check fee are specified in the definition of “fees” in rule 655—3.1(17A,147,152,272C).    (2)   The licensee shall have obtained 1236 contact hours of continuing education, as specified in 655—Chapter 5, within the 1236 months prior to reactivation.    (3)   Upon receipt of the completed reactivation application, required continuing education materials, two completed fingerprint cards and a signed waiver form to facilitate a national criminal history background check, fees for both the reactivation and the criminal history background check and verification that the primary state of residence is Iowa or a noncompact state, the licensee shall be issued a license for a 24- to 36-month period. At the time of the next renewal, the license will be placed on a three-year renewal cycle. Expiration shall be on the fifteenth day of the licensee’s birth month. The board staff may issue a certificate of license prior to receipt of a report on the applicant from the DCI/FBI.    (4)   An applicant who fails to complete the reactivation of licensure process within 12 months from the date ofinitial application must reapply. All fees are nonrefundable.    3.7(6) Duplicate wallet card or certificate.  A duplicate wallet card or certificate shall be required if the current card or certificate is lost, stolen, destroyed or not received by the licensee within 60 days from the date the license is issued. The licensee shall be issued a duplicate wallet card or certificate upon receipt of an application for a duplicate wallet card or certificate and receipt of the fee as specified in rule 655—3.1(17A,147,152,272C). If the licensee notifies the board that the wallet card or certificate has not been received within 60 days after being issued, no fee shall be required. A fee is applicable when the licensee fails to notify the board of a name or address change.    3.7(7) Reissue of a certificate or wallet card.  The board shall reissue a certificate or current wallet card upon receipt of a written request from the licensee, return of the original document and payment of the fee as specified in rule 655—3.1(17A,147,152,272C). No fee shall be required if an error was made by the board on the original document.       This rule is intended to implement Iowa Code sections 147.2 and 147.9 to, 147.10, 147.11, 272C.2, and 272C.3 and chapter 152.
    [Filed 10/23/17, effective 1/1/18][Published 11/22/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 11/22/17.
ARC 3466CPublic Safety Department[661]Adopted and Filed

    Pursuant to the authority of Iowa Code section 103.6, the Electrical Examining Board hereby amends Chapter 504, “Standards for Electrical Work,” Iowa Administrative Code.     The Electrical Examining Board is authorized to adopt administrative rules for the licensing of electricians and electrical contractors and for the state electrical inspection program. This amendment adopts the 2017 edition of the National Electrical Code (NEC), with specified exceptions. The 2017 edition of the NEC reflects current industry standards, and adoption of the current NEC helps to promote consistency in the regulations affecting electricians and electrical contractors.     Revisions in the 2017 edition of the NEC reflect changes in communication and energy demands in industrial, business and consumer contexts. Business and industry and consumers increasingly rely on Internet services and communications devices, which has increased energy demands and driven technological innovation. The revisions in the 2017 edition of the NEC reflect modifications in the industry related to energy efficiency, energy production, residential uses, and special needs for health care facilities, and offer better protection for people and their property as the demands on electrical service increase.     These types of changes are particularly relevant in Iowa. The economic recovery in Iowa has outpaced other states and remains strong. Iowa will benefit from having the most recent version of the NEC. Demands for electrical work are likely to continue to rise, and Iowa can maintain a competitive edge with other states by updating its standards to meet the current industry expectations and to provide better protection and safety for individuals and property. Most of the states which border Iowa have adopted or are in the process of adopting the 2017 edition of the NEC. Minnesota and South Dakota have adopted the 2017 NEC with an effective date of July 1, 2017; Nebraska adopted the 2017 NEC with an effective date of August 1, 2017; and Wisconsin is in the process of adopting the 2017 NEC, and the effective date of the adoption has not been established.     Prior to the filing of the Notice of Intended Action, the Electrical Examining Board sought input and comments from stakeholders. Comments were received from many stakeholders, including the Iowa Association of Building Officials, the National Electrical Contractors Association, the Associated Builders and Contractors of Iowa, the Home Builders Association, Joint Apprenticeship Training Centers, and a local union, as well as from members of the public and members of the Board. The comments received were considered in drafting this amendment to the rule.     Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 3153C on July 5, 2017. A public hearing was held on August 17, 2017.     Comments were received from members of the public at the hearing. Tim McClintock, Regional Electrical Code Specialist for the National Fire Protective Association (NFPA) spoke in support of the adoption of the 2017 NEC. He said that the 2017 NEC provides up-to-date standards for on-site generation and distribution. McClintock also submitted written comments in support of the adoption of the 2017 NEC. His comments supported the adoption of the 2017 NEC because of the importance of electrical safety. He noted that recent editions of the NEC have included installation requirements to meet the needs of a dramatically changing electrical generation and distribution network. According to McClintock, solar, wind, fuel cell and other localized generation sources are being interconnected with or without an electrical utility source to provide reliable supply from renewable sources. Requirements in the 2017 NEC cover expanded use of direct current power derived from on-site generation. With the advancement of technology, it is important that standards be kept up to date in order to have safe implementation for the new technology and to ensure that end users can take advantage of this new technology without endangering themselves or their property. Adopting current standards also promotes the use of new technology, which will have immeasurable societal benefits at both a micro- and macroeconomic perspective.     Don Iverson, Midwest Field Representative for the National Electrical Manufacturers Association (NEMA) spoke in support of the adoption of the 2017 NEC. He said that the adoption of the 2017 NEC allows for the proper installation of new technologies, including large-scale photovoltaic (PV) systems and direct current microgrids. Iverson also submitted written comments on behalf of NEMA. Iverson’s written comments added that NEMA is the trade association of choice for the electrical equipment and medical imaging manufacturing industry, with approximately 400 member companies. These companies manufacture products used in the generation, transmission, distribution, control, and end use of electricity. NEMA supports the adoption of the 2017 NEC because that is the best way to ensure a uniform and up-to-date standard of safety for all occupants in the built environment, and means safer and more economically prosperous communities. The written comments stated that the 2017 NEC focuses on the proper installation of electrical systems and equipment to protect people and property from the use of electricity in the built environment and that through the adoption of the 2017 NEC, businesses will be able to take advantage of lower infrastructure and start-up and operational costs through new and improved technology, such as large-scale PV systems and direct-current microgrids, which are becoming popular and are a means to increase energy efficiency, reduce costs, and maintain critical business continuity.     Jonathan Lam, Business Development Manager for Square D by Schneider Electric of Cedar Rapids, Iowa, submitted written comments in support of the 2017 NEC. Specifically, Square D by Schneider Electric supports the adoption of the 2017 NEC and would encourage the Electrical Examining Board to also adopt the 2017 NEC requirements for arc fault circuit interrupters (AFCI), which the Electrical Examining Board has not included in the adoption of the 2017 NEC. The comments submitted on behalf of Square D by Schneider Electric stated that, according to the latest NFPA research on home fires, electrical failures or malfunctions were factors in one of every eight reported home fires and one in every five home fire deaths and that almost half (47 percent) of the fires started by electrical failures or malfunctions in 2007-2011 involved some type of electrical distribution or lighting equipment as a source of ignition. The comments stated that the Square D facility in Cedar Rapids has designed, tested, and made circuit breakers since 1955 and that AFCIs have proven to be reliable and effective in preventing electrical fires. Square D supports the adoption of the 2017 NEC and keeping the AFCI requirements in place to ensure that homes in Iowa will be built with the best electrical protection.     The Electrical Examining Board considered the comments received and determined that no changes would be made from the amendments published under Notice.     Pursuant to the provisions of rule 661—10.222(17A), the Board does not have authority to waive requirements established by statute. Pursuant to the provisions of rule 661—501.5(103), the Board has the authority to grant waivers from the rules.     The Electrical Examining Board adopted these amendments on October 19, 2017.     It is expected that there will be a positive impact on jobs. The adoption of the 2017 edition of the NEC will lessen the burden for electricians entering into Iowa’s job market, simplify the examination process and enable Iowa electricians to compete for business in other states.     This amendment is intended to implement Iowa Code section 103.6.     This amendment will become effective on December 27, 2017.     The following amendment is adopted.

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

661—504.1(103) Installation requirements.  The provisions of the National Electrical Code, 20142017 edition, published by the National Fire Protection Association, 1 Batterymarch Park, Quincy, MA 02169-7471, are adopted as the requirements for electrical installations performed by persons licensed pursuant to 661—Chapters 500 through 503 and to installations subject to inspection pursuant to Iowa Code chapter 103 with the following amendments:    504.1(1)   Add the following exceptions to section 210.8, paragraph (A), subparagraph (2):    a.    Exception No. 1 to (2): Receptacles that are not readily accessible.    b.    Exception No. 2 to (2): A single receptacle or a duplex receptacle for two appliances located within dedicated space for each appliance that, in normal use, is not easily moved from one place to another and that is cord-and-plug connected in accordance with 400.7(A)(6), (A)(7), or (A)(8).    c.    Receptacles installed under the exceptions to 210.8(A)(2) shall not be considered as meeting the requirements of 210.52(G).Delete section 210.12(D).    504.1(2)   Add the following exceptions to section 210.8, paragraph (A), subparagraph (5):    a.    Exception No. 2 to (5): Receptacles that are not readily accessible.    b.    Exception No. 3 to (5): A single receptacle or a duplex receptacle for two appliances located within dedicated space for each appliance that, in normal use, is not easily moved from one place to another and that is cord-and-plug connected in accordance with 400.7(A)(6), (A)(7), or (A)(8).    c.    Receptacles installed under the exceptions to 210.8(A)(5) shall not be considered as meeting the requirements of 210.52(G). Delete section 406.4(D)(4).    504.1(3)   Delete section 210.12(B).    504.1(4)   Delete the exception to section 220.12 and insert in lieu thereof the following exception:Exception: Where the building is designed and constructed to comply with an energy code adopted by the local authority, the lighting load shall be permitted to be calculated at the values specified in the energy code.    504.1(5)   Delete section 406.4(D)(4).       This rule is intended to implement Iowa Code chapter 103.
    [Filed 10/23/17, effective 12/27/17][Published 11/22/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 11/22/17.
ARC 3467CSecretary of State[721]Adopted and Filed

    Pursuant to the authority of Iowa Code sections 17A.3 and 17A.4 and 2017 Iowa Acts, Senate File 516, section 23, the Secretary of State hereby amends Chapter 2, “Rules of Practice,” Chapter 30, “Uniform Commercial Code,” and Chapter 40, “Corporations,” Iowa Administrative Code.    These amendments are necessary because the General Assembly has enacted 2017 Iowa Acts, Senate File 516. The Secretary of State has determined that as a result of this newly enacted law, the following amendments are necessary to fund the Technology Modernization Fund within the Secretary of State’s office.    Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 3320C on September 27, 2017. The Secretary received a number of public comments on the amendments. The comments were primarily focused on the reasoning, expenditure, and accounting of the fees. The Secretary sent an email to everyone who submitted a comment to address these concerns, and the amendments were adopted at the urging of members of the Administrative Rules Review Committee and business groups that help to ensure the accountability of the funds.    As a result of those public comments from business owners and others, the Secretary added language to the applicable subrules to clarify that upon the expiration of the Technology Modernization Fund in Iowa Code section 9.4A, as created by 2017 Iowa Acts, Senate File 516, section 23, the fees will revert back to the amounts authorized prior to July 1, 2017. Funds generated by the fees shall be exclusively used for improving business services technology.    After analysis and review of this rule making, no impact on jobs has been found.    These amendments are intended to implement 2017 Iowa Acts, Senate File 516, section 23.     These amendments will become effective December 31, 2017.    The following amendments are adopted.

    ITEM 1.    Amend rule 721—2.3(631) as follows:

721—2.3(631) Payment for services.  The secretary of state may approve accounts to be used for the payment of services provided by the secretary of state. A user of a service provided by the secretary of state may make payment for the service by authorizing a charge to be made upon an account held by the user.    2.3(1)   The secretary of state may prescribe and furnish forms for the purpose of authorizing a charge to be made upon an account. The secretary of state may refuse to charge an account for service requested without the appropriate form.    2.3(2)   Application for account. Application for an account shall be made upon a form prescribed and furnished by the secretary of state. The account holder is subject to the terms and conditions contained in the application. The secretary of state reserves the right to adopt changes to the terms and conditions of the account. The secretary of state reserves the right to close a delinquent account.    2.3(3)   Account holders will receive a monthly statement of account. The statement will include, for each transaction, the date and amount of the transaction. A transaction may include more than one filing fee.    2.3(4)   Payment in full is due within 15 days of the date of the statement of account. An account is considered delinquent after the expiration of 30 days from the date of the statement of account. Interest and finance charges may be assessed on delinquent accounts in accordance with Iowa Code chapter 535.    2.3(5)   An annual fee of $25$100 shall be paid by an account holder for the privilege of maintaining an account. The annual fee shall cover a 12-month period measured from the first day of the month in which the account is approved by the secretary of state. An account that is not delinquent one month prior to the expiration of the annual period shall be renewed upon the payment of the annual fee. The secretary of state shall charge the annual fee to the account on the statement of the account for the monthly period prior to the expiration date. The annual fee shall be used for the purpose of offsetting the expenses incurred by the secretary of state in maintaining the account.    2.3(6)   Accounts maintained by the secretary of state prior to July 1, 1989, shall be terminated at the close of business on June 30, 1989, unless the holder of the account complies with subrule 2.3(5) and authorizes the secretary of state to continue the account by filing a renewal application on a form prescribed and furnished by the secretary of state.    2.3(7)   The secretary of state shall assess a fee of $10 for the receipt of a document filed under Iowa Code section 631.4(1)“d.”

    ITEM 2.    Amend 721—Chapter 2, implementation sentence, as follows:       These rules are intended to implement Iowa Code chapters 17A,490, 491, 496A, 497, 498, 499, 504, 504A, and 554 (Article 9)and 2017 Iowa Acts, Senate File 516, section 23.

    ITEM 3.    Amend subrule 30.1(10) as follows:    30.1(10) Filing fees.      a.    Filing fee.The fee for filing and indexing a UCC document of one or two pages communicated on paper or in a paper-based format (including faxes) is $10$20. If there are additional pages, the fee is $20$40. But the fee for filing and indexing a UCC document communicated by a medium authorized by these rules which is other than on paper or in a paper-based format shall be $5$10.Upon the expiration of the technology modernization fund in Iowa Code section 9.4A, as created by 2017 Iowa Acts, Senate File 516, section 23, the fees will revert back to the amounts authorized prior to July 1, 2017. Funds generated by these fees shall be exclusively used for improving business services technology.    b.    UCC search fee.The fee for a UCC search request communicated verbally, on paper or in a paper-based format is $5.    c.    UCC search—copies.The fee for paper copies of UCC documents is $1 per page.

    ITEM 4.    Amend 721—Chapter 30, implementation sentence, as follows:       These rules are intended to implement 2000 Iowa Acts, chapter 1149, and Iowa Code chapters 17A and 554and 2017 Iowa Acts, Senate File 516, section 23.

    ITEM 5.    Amend rule 721—40.8(488,489,490) as follows:

721—40.8(488,489,490) Biennial reports.  The secretary of state shall collect the following fees at the time the documents described in this rule are delivered to the secretary for filing.    40.8(1)   A limited partnership or foreign limited partnership authorized to transact business in this state shall deliver to the secretary of state for filing a biennial report that meets the requirements of Iowa Code section 488.210.    a.    The fee for filing and indexing a biennial report filed on paper or in a paper-based format is $45$60. This fee may be provided in the form of cash, personal check, cashier’s check, or money order or by secretary of state charge account.Upon the expiration of the technology modernization fund in Iowa Code section 9.4A, as created by 2017 Iowa Acts, Senate File 516, section 23, the fee will revert back to the amount authorized prior to July 1, 2017. Funds generated by this fee shall be exclusively used for improving business services technology.    b.    The fee for an electronic filing through the secretary of state Internet Web site is $30$45. This fee must be paid by check, credit card, or secretary of state charge account.Upon the expiration of the technology modernization fund in Iowa Code section 9.4A, as created by 2017 Iowa Acts, Senate File 516, section 23, the fee will revert back to the amount authorized prior to July 1, 2017. Funds generated by this fee shall be exclusively used for improving business services technology.    40.8(2)   A limited liability company or a foreign limited liability company authorized to transact business in this state shall deliver to the secretary of state for filing a biennial report that meets the requirements of Iowa Code section 489.209.    a.    The fee for filing and indexing a biennial report filed on paper or in a paper-based format is $45$60. This fee may be provided in the form of cash, personal check, cashier’s check, or money order or by secretary of state charge account.Upon the expiration of the technology modernization fund in Iowa Code section 9.4A, as created by 2017 Iowa Acts, Senate File 516, section 23, the fee will revert back to the amount authorized prior to July 1, 2017. Funds generated by this fee shall be exclusively used for improving business services technology.    b.    The fee for an electronic filing through the secretary of state Internet Web site is $30$45. This fee must be paid by check, credit card, or secretary of state charge account.Upon the expiration of the technology modernization fund in Iowa Code section 9.4A, as created by 2017 Iowa Acts, Senate File 516, section 23, the fee will revert back to the amount authorized prior to July 1, 2017. Funds generated by this fee shall be exclusively used for improving business services technology.    40.8(3)   Each domestic corporation, and each foreign corporation authorized to transact business in this state, shall deliver to the secretary of state for filing a biennial report that meets the requirements of Iowa Code section 490.1622.    a.    The fee for filing and indexing a biennial report filed on paper or in a paper-based format is $45$60. This fee may be provided in the form of cash, personal check, cashier’s check, or money order or by a secretary of state charge account.Upon the expiration of the technology modernization fund in Iowa Code section 9.4A, as created by 2017 Iowa Acts, Senate File 516, section 23, the fee will revert back to the amount authorized prior to July 1, 2017. Funds generated by this fee shall be exclusively used for improving business services technology.    b.    The fee for an electronic filing through the secretary of state Internet Web site is $30$45. This fee must be paid by check, credit card, or secretary of state charge account.Upon the expiration of the technology modernization fund in Iowa Code section 9.4A, as created by 2017 Iowa Acts, Senate File 516, section 23, the fee will revert back to the amount authorized prior to July 1, 2017. Funds generated by this fee shall be exclusively used for improving business services technology.

    ITEM 6.    Amend 721—Chapter 40, implementation sentence, as follows:       These rules are intended to implement Iowa Code chapters 490, 491, 496A, 499, 504A504, and 548and 2017 Iowa Acts, Senate File 516, section 23.    [Filed 11/1/17, effective 12/31/17][Published 11/22/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 11/22/17.
ARC 3468CSecretary of State[721]Adopted and Filed

    Pursuant to the authority of Iowa Code sections 17A.3 and 17A.4 and 2017 Iowa Acts, House File 516, section 37, the Secretary of State hereby amends Chapter 22, “Voting Systems,” Iowa Administrative Code.     These amendments are necessary because the General Assembly has enacted 2017 Iowa Acts, House File 516. The Secretary of State has determined that as a result of this newly enacted law, the amendments are necessary to keep the administrative rules in compliance with the Iowa Code. 2017 Iowa Acts, House File 516, section 37, creates a revolving loan fund to help counties with the purchase of electronic poll books, creating the need to update Chapter 22. Additionally, the amendments provide new rules governing e-poll book technological and operational requirements.     Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 3319C on September 27, 2017. The Secretary received written comments from the Iowa Precinct Atlas Consortium, as well as a letter cosigned by Auditors Miller (Linn County), Weipert (Johnson County), and Fitzgerald (Polk County). Based on the feedback in these comments, the Secretary made the following changes:    In Item 7, the language in subrule 22.602(7) was changed to clarify that a vendor needs to report to the state commissioner the cybersecurity standards utilized when the vendor signs the first contract with a county in the state and upon any changes to those security features. The subrule now reads as follows:     “22.602(7) Notification. A vendor upon offering a new e-poll book platform, or upon making a change to the security features of an existing e-poll book, shall notify the state commissioner of the encryption and authentication standards utilized.”    Additionally, as a result of comments by Representative Nielsen at the Administrative Rules Review Committee meeting, the Secretary revised subrule 22.600(2) in Item 5 to add a sentence relating to gender and party balance. The subrule now reads as follows:     “22.600(2) In order to ensure that the public funds in this rule are used responsibly and efficiently, this rule creates a panel consisting of designees of the state commissioner of elections, the state auditor, and the director of the department of management. Attendance by two of the three members constitutes a quorum. The panel shall conform to the party and gender balance requirements of Iowa Code sections 69.16 and 69.16A.”     Last, in Item 3, the definition of “electronic ballot marking device” as proposed in the Notice was not adopted because the definition as written is already contained in rule 721—22.1(52).    After analysis and review of this rule making, no impact on jobs has been found.     These amendments are intended to implement 2017 Iowa Acts, House File 516.     These amendments will become effective on December 31, 2017.     The following amendments are adopted.

    ITEM 1.    Amend 721—Chapter 22, title, as follows:VOTING SYSTEMSAND ELECTRONIC POLL BOOKS

    ITEM 2.    Amend rule 721—22.1(52), definition of “De minimis change,” as follows:        "De minimis change" means a change to a certified voting system’s hardware,software, technical data package (TDP), or data, the nature of which will not materially alter the system’s reliability, functionality, capability, security andor operation. In order for a change to qualify as a de minimis change, it must not alter the reliability, functionality, capability, security and operability of the system. A de minimis change shall also ensure that when the hardware is replaced, the original hardware and the replacement hardware are electronically and mechanically interchangeable and have identical functionality and tolerances. AUnder no circumstances shall a change shall not be considered de minimis if it has reasonable and identifiable potential to affectimpact the system’s operationperformance and compliance withthe applicable voting system standardsstandard.

    ITEM 3.    Adopt the following new definition of “Electronic poll book” in rule 721—22.1(52):        "Electronic poll book," “epollbook,”“e-poll book,” or “electronic register” means hardware and software components used to verify and process voting activity and changes in voter registration and to check in voters. This definition includes e-poll books in use in the commissioner’s office. However, this definition does not apply to the I-Voters statewide voter registration database.

    ITEM 4.    Reserve rules 721—22.501 to 721—22.599.

    ITEM 5.    Adopt the following new rule 721—22.600(47) and heading: e-poll books

721—22.600(47) Revolving loan fund.  The purpose of this rule is to establish an e-poll book and polling place modernization panel to review applications submitted to the state commissioner for distribution of moneys from the revolving loan fund created by 2017 Iowa Acts, House File 516, section 37, to be codified at Iowa Code section 47.11.    22.600(1)   Definitions.        "E-poll book" is as defined in rule 721—22.1(52).        "Vendor," for purposes of this rule, means a person or representative of a person developing, offering, or supporting an e-poll book.    22.600(2)   In order to ensure that the public funds in this rule are used responsibly and efficiently, this rule creates a panel consisting of designees of the state commissioner of elections, the state auditor, and the director of the department of management. Attendance by two of the three members constitutes a quorum. The panel shall conform to the party and gender balance requirements of Iowa Code sections 69.16 and 69.16A.    22.600(3)   The state commissioner shall convene the panel whenever necessary to review loan applications received from county commissioners requesting moneys from the fund.    22.600(4)   The state commissioner may convene the panel to review proposed expenditures for updating technology standards for elections. If the state commissioner determines that there is an urgent need that an expenditure of moneys from the fund be used to update technology standards, the state commissioner may spend the moneys without convening the panel. In such instance, the state commissioner shall report that expenditure at the next meeting of the panel.    22.600(5)   The panel shall create guidelines for loaning moneys from the fund to county commissioners for the updating of polling place technology. The guidelines shall be published on the state commissioner’s website.    22.600(6)   Before distributing or loaning funds, the panel shall consider the published guidelines, but may take additional factors into consideration. The panel shall not waive any information technology security standards, but may waive other requirements. A majority vote of the panel members present is sufficient to approve funding.    22.600(7)   Before any funds from the revolving loan fund are provided for the acquisition of e-poll books, the e-poll book system shall conform to the security requirements within this chapter.        This rule is intended to implement 2017 Iowa Acts, House File 516, section 37.

    ITEM 6.    Adopt the following new rule 721—22.601(47):

721—22.601(47) Operational features of e-poll books.      22.601(1) Definitions.          "E-poll book" is as defined in rule 721—22.1(52).        "Vendor," for purposes of this rule, means a person or representative of a person developing, offering, or supporting an e-poll book.    22.601(2) Operational features.  When assessing applications for funding from the revolving loan fund established by 2017 Iowa Acts, House File 516, section 37, as implemented in rule 721—22.600(47), the e-poll book and polling place modernization panel shall consider whether the e-poll book sought includes the operational features described in this subrule. Commissioners using only county funds for the purchase of e-poll book systems are not subject to the operational features described below, but are subject to all of the security requirements set forth in rule 721—22.602(47). The panel shall consider:    a.    Whether the e-poll book is able to accept a secure data file that imports voter registration data into the e-poll book application from the statewide voter registration system. This requirement may not be waived by the panel.    b.    Whether the e-poll book is able to securely export data files that can be imported into the statewide voter registration system, including a file to update the voter activity portion of the statewide voter registration system.     c.    Whether the e-poll book is able to scan the barcodes of driver’s licenses, DOT-issued nonoperator identification cards, and the voter identification card issued pursuant to 2017 Iowa Acts, House File 516, section 18, to be codified at Iowa Code section 48A.10A.     d.    Whether the e-poll book is able to verify the voter against the felon database.     e.    Whether the e-poll book is able to process, record, and export the complete range of possible voter registration updates available to voters under Iowa law. The state commissioner shall maintain a form that lists the possible updates that are required by this subrule.    f.    Whether the e-poll book is able to complete and print the following forms:    (1)   State of Iowa Official Voter Registration Form.    (2)   Election Day Voter Registration Form, including Voter’s Oath and Attester’s Oath, if applicable.    (3)   Provisional Ballot Form, including the State of Iowa Official Voter Registration Form and Statement to Person Casting a Provisional Ballot.    (4)   Challenger’s Statement.    (5)   Affidavit of Voter Requesting Assistance.    22.601(3) Certification.  A vendor providing an e-poll book platform in this state shall certify in writing to the state commissioner that the requirements of subrule 22.601(2) are met. If any of the requirements are not met, the vendor shall note the exceptions conspicuously.       This rule is intended to implement 2017 Iowa Acts, House File 516, section 37.

    ITEM 7.    Adopt the following new rule 721—22.602(47):

721—22.602(47) Security features of e-poll books.  All e-poll book systems in use in this state, including those funded by county moneys, shall conform to the following security standards.    22.602(1) Definitions.          "E-poll book" is as defined in rule 721—22.1(47).        "Secure," for purposes of this rule, means “encryption” as defined by Iowa Code section 715C.1(5).        "Vendor," for purposes of this rule, means a person or representative of a person developing, offering, or supporting an e-poll book.    22.602(2) Encryption of data at rest.   The e-poll book system shall ensure that all voter data is encrypted at rest. “Encrypted at rest” includes encryption of the whole hard drive, database, application data deemed confidential, and removable media. The data encryption keys shall be stored separately from the e-poll book hardware and software.    22.602(3) Encryption of data in transit.  The e-poll book system shall ensure that all voter data is encrypted in transit via secure transfer protocols.    22.602(4) Security updates.  The commissioner shall ensure that the computer maintains the most recent security updates available for the computer’s operating system. The vendor shall ensure that the e-poll book software remains compatible with all security updates issued for the computer’s operating system. An e-poll book system in use in Iowa shall not be installed on an operating system that is no longer supported by the developer.    22.602(5) Authentication.  Every e-poll book system shall require authentication to the operating system and to the e-poll book application separately through a minimum of a username-password combination. A commissioner shall use a unique username-password combination for each precinct.     22.602(6) Decommissioning.  At the time of decommissioning, the hard drive from the computer shall be destroyed by the owner of the hardware. This shall occur before the commissioner or vendor resells, gifts, repurposes, or otherwise disposes of the equipment. A record of the destruction shall be kept by the owner.    22.602(7) Notification.  A vendor upon offering a new e-poll book platform, or upon making a change to the security features of an existing e-poll book, shall notify the state commissioner of the encryption and authentication standards utilized.       This rule is intended to implement 2017 Iowa Acts, House File 516, section 37.
    [Filed 11/1/17, effective 12/31/17][Published 11/22/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 11/22/17.
ARC 3469CUtilities Division[199]Adopted and Filed

    Pursuant to Iowa Code sections 17A.4 and 476.2, the Utilities Board (Board) gives notice that on November 3, the Board issued an “Order Adopting Rules” in Docket No. RMU-2017-0002, In re: Rule Making for Renewable Energy Percentage Verification [199 IAC 30], to establish rules for renewable energy percentage verification as Chapter 30 of the Board’s rules.     Notice of Intended Action was published in the June 21, 2017, Iowa Administrative Bulletin as ARC 3118C.     From May 22 to July 10, 2017, appearances were filed by the Iowa Business Energy Coalition (IBEC); Interstate Power and Light Company (IPL); MidAmerican Energy Company (MidAmerican); and the Office of Consumer Advocate (OCA), a division of the Iowa Department of Justice. Joint appearances were filed by the Environmental Law & Policy Center and the Iowa Environmental Council (collectively, the “Environmental Intervenors”) and Facebook, Inc. (Facebook), Google Inc. (Google), and Microsoft Corporation (Microsoft) (collectively, the “Tech Customers”).     On or before July 11, 2017, the Board received statements of position from OCA, IPL, MidAmerican, the Environmental Intervenors (joined by Wind on the Wires), and the Tech Customers. An oral presentation was held on July 26, 2017, in the Utilities Board hearing room at 1375 E. Court Avenue, Des Moines, Iowa. The following parties participated at the oral presentation: OCA, MidAmerican, IPL, the Environmental Intervenors, the Tech Customers and Board staff. On August 7, 2017, the Board received reply comments from OCA, IPL, MidAmerican, Center for Resource Solutions (CRS), the Environmental Intervenors and the Tech Customers. Included in the Tech Customers’ comments were proposed revisions to the rules supported by MidAmerican, the Tech Customers, and the Environmental Intervenors. On August 16, 2017, the Board received sur-reply comments from the Tech Customers. The Board held a workshop on September 6, 2017, and requested additional comments from the parties. From September 14 to September 19, 2017, OCA, IPL, MidAmerican, the Tech Customers, CRS, and the Environmental Intervenors all filed post-workshop comments.     The Board has modified the chapter proposed in the Notice of Intended Action based on comments received in writing and during the July 26, 2017, oral presentation and the September 9, 2017, workshop. The adopted rules are identical to those published under the Notice of Intended Action, except as follows:     The structure of the chapter has been changed in order to enhance readability. A definition section has been added to the rules. The rules include a deadline for interested parties to file a response to a petition filed under Chapter 30. The rules provide that a renewable energy credit (REC) purchased separate from renewable energy may count toward the renewable energy percentage as long as the REC replaces a sold REC which would otherwise be considered eligible. The rules require entities that request verification under Chapter 30 to provide the Board access to the tracking systems that were used for the associated RECs. The rules do not include a provision for the evaluation of the reasonableness and prudence of REC retirement as part of the verification process and require the utility to file the estimated market value of prior period retired RECs. The rules also include sample claim language for the renewable energy claims that may be used by the utility and its customers.    The order approving this Adopted and Filed rule making can be found on the Board’s Electronic Filing System website, efs.iowa.gov, in Docket No. RMU-2017-0002.     After analysis and review of this rule making, the Board concludes that Chapter 30 may have the beneficial effect of encouraging renewable energy development in Iowa and will not have a detrimental effect on jobs in Iowa.     This amendment is intended to implement Iowa Code chapter 476.     This amendment will become effective December 27, 2017.    The following amendment is adopted.

    ITEM 1.    Adopt the following new 199—Chapter 30: CHAPTER 30RENEWABLE ENERGY PERCENTAGE VERIFICATION

199—30.1(476) General information.      30.1(1) Scope and limitation.  This chapter establishes the process by which, upon a petition from a utility, the board will verify that a specified percentage of a utility’s energy generation is renewable energy.    30.1(2) Definitions.  Except where otherwise specifically defined by law:        "M-RETS" means the Midwest Renewable Energy Tracking System.        "PJM-GATS" means the PJM Generation Attribute Tracking System.        "Prior period" means the calendar year immediately preceding the utility’s request for verification of the REP.        "RECs" means the renewable energy certificates for renewable generation in a tracking system.         "Renewable energy claim" means a claim made by a utility or a customer of a utility concerning the percentage of renewable energy used by the customer in a calendar year.        "Renewable energy percentage" "REP" means the amount of renewable energy purchased and produced by a utility and used to serve its retail sales in a calendar year as a percentage of its overall retail sales.         "Renewable generation" means energy produced at any facility described in Iowa Code section 476.42(1)“a”(1).        "Retired RECs" means the quantity of RECs that (1) represent renewable generation in the prior period registered in accordance with tracking system rules and requirements, and (2) are retired by the utility in the tracking system in accordance with the tracking system rules and requirements, for the benefit of all of the utility’s customers prior to the calculation of the REP for such prior period. “Retired RECs” cannot include RECs that are obligated to specific entities or for purposes outside of this program. However, “retired RECs” does include RECs associated with any renewable energy mandates set forth in the Iowa Code.        "Total retail sales" means the amount of retail sales recorded by the utility in its IE-1 annual report to the board.        "Tracking system" means M-RETS, PJM-GATS or such other tracking systems as may be approved for use by the board, provided that renewable generation may be registered and retired in only one tracking system.

199—30.2(476) Process for verification.      30.2(1) Procedure for verification of renewable energy percentage.       a.    A utility may file a petition requesting that the board verify the percentage of the utility’s retail sales that were served using renewable generation during the prior period.    b.    Interested person(s) may file a response to the petition within 20 days from the date of the filing.    30.2(2) Renewable energy percentage formula.  The formula to be used for calculating the percentage of renewable energy used by a utility to serve retail sales in a given calendar year is: REP = Retired RECs divided by total retail sales    30.2(3) Required evidence.  A utility requesting verification of its REP shall file the following information to support its request:    a.    Evidence that the utility records all of its RECs in a tracking system or has transferred RECs recorded in other tracking systems to a tracking system.    b.    Evidence that the MWh of qualifying renewable generation claimed to have been generated during the prior period were in fact generated by the utility’s own renewable generation facilities or purchased by the utility from a renewable facility along with the associated RECs during the prior period. Purchased RECs that are not bundled with the associated energy will not be counted as part of the REP unless the purchased RECs were used to replace otherwise eligible RECs. The purchased RECs must be purchased during the prior period, and their purchase price must be lower than the price of the sold RECs.    c.    Evidence that the number of RECs claimed to have been retired were in fact retired on behalf of the utility’s retail customers in the tracking system. Such evidence shall consist of a screenshot of the tracking system’s web page that shows the certificate numbers of the retired RECs, the retirement account to which the RECs were transferred and the date of retirement. The utility shall authorize the board to access the tracking system for purposes of verifying the information. Verification of the information shall not constitute personal investigation in connection with any future contested case, the specific controversy underlying that contested case, or a pending factually related contested case or controversy involving the same parties.     d.    An affidavit signed by a corporate officer verifying the accuracy of the REP calculation, the underlying data used in the calculation, compliance with this rule, and the evidence filed in support of it.

199—30.3(476) Reasonableness and prudence of REC retirement.      30.3(1)   Board verification of a utility’s renewable energy percentage shall not constitute a determination that the retirement of RECs by the utility in the prior period was reasonable and prudent, nor shall it create any presumption of reasonableness and prudence.     30.3(2)   A utility seeking verification of its renewable energy percentage under this rule shall file the estimated market value of prior period retired RECs as part of its petition.

199—30.4(476) Renewable energy claims.  After the board has verified the percentage of the utility’s retail sales that were served using renewable energy generation, the board’s findings will provide sample renewable energy claims that may be used by the utility and its customers. The language will be in substantially the following form, where “x” is the verified REP:    30.4(1)   Utility: x percent of the electricity that the utility sold to retail customers during the prior period was from renewable energy generation. The utility provided its retail customers with x percent renewable energy during the prior period.    30.4(2)   Utility retail customer: x percent of the electricity used by the customer during the prior period and purchased from the utility was from renewable energy generation.These rules are intended to implement Iowa Code chapter 476.
    [Filed 10/27/17, effective 12/27/17][Published 11/22/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 11/22/17.

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